diff --git "a/reports/Annual Consolidated OAG audit reports 2020/Annual Consolidated OAG audit reports 2020.txt" "b/reports/Annual Consolidated OAG audit reports 2020/Annual Consolidated OAG audit reports 2020.txt" new file mode 100644--- /dev/null +++ "b/reports/Annual Consolidated OAG audit reports 2020/Annual Consolidated OAG audit reports 2020.txt" @@ -0,0 +1,15056 @@ +THE REPUBLIC OF UGANDA + +REPORT OF THE AUDITOR GENERAL TO PARLIAMENT FOR THE FINANCIAL YEAR ENDED 30 TH JUNE 2020 + +OFFICE OF THE AUDITOR GENERAL UGANDA + +FEBRUARY, 2021 + + + + + + + + + + + +TABLE OF CONTENTS + +LIST OF ACRONYMS - vii +GLOSSARY OF TERMS - ix +FOREWORD BY THE AUDITOR GENERAL - x +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 - 5 + 2.0 REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED FINANCIAL STATEMENTS - 5 +2.1 REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA +CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 TH JUNE 2020 - 5 +Qualified Opinion - 5 +Basis of Qualified Opinion - 5 + 2.1.1 Mischarge of Expenditure - 5 + 2.1.2 Funds not Accounted for - 5 + 2.1.3 Expenditure on undisclosed Domestic Arrears - 5 + 2.1.4 Unsupported domestic arrears - 6 +Key Audit Matter - 6 + 2.1.5 Implementation of the approved budget - 6 + 2.1.6 Management of Covid-19 Interventions - 13 +Emphasis of Matter - 18 + 2.1.7 The effects of change in Accounting Policy - 18 + 2.1.8 Government Loans (Borrowings) - 18 + 2.1.9 Payables - 18 + 2.1.10 Contingent Liabilities - 18 + 2.1.11 Classified Expenditure - 19 +Other Matters - 19 + 2.1.12 Tax Policy - 19 + 2.1.12.1 Absence of clear policies to guide the tax exemptions and other investor incentives - 19 +2.1.12.2 Continued loss of revenue due to Failure by Government to meet contractual obligations with a +Palm Oil Refineries company - 19 +2.1.12.3 Review of the Performance of the agreement between a private company and Ministry of Finance +for the development of an Industrial Park - 20 + 2.1.12.4 Unclear selection criteria of Government MDAs for the Statutory Tax write off - 22 + 2.1.13 Public Debt - 23 + 2.1.13.1 Public Debt Portfolio Analysis - 23 + 2.1.13.2 Movement of Domestic Debt Stock - 24 + 2.1.13.3 Assessment of debt sustainability - 25 + 2.1.13.4 Increased Commercial Bank Borrowing with non-fixed interest rates - 27 + 2.1.13.5 Under absorption of loans - 28 + 2.1.13.6 Increasing loan contracts with stringent terms and conditions - 28 + 2.1.13.7 Failure to Manage Risks associated with Cross currency Borrowing - 29 + 2.1.14 Operations of Boards in Government Entities - 29 + 2.1.15 Financing of Deemed Energy - 30 + +ii + + + + + + + + + + + +Other Information - 31 +Responsibilities of Management for the Consolidated Financial Statements - 32 +Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements - 32 +Other Reporting Responsibilities - 33 +Report on the Audit of Compliance with Legislation - 34 + 2.1.16 Management of the Government of Uganda’s fleet - 34 + 2.1.17 Continued Expenditure off the Integrated Financial Management System (IFMS) - 35 +2.2 REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA +CONSOLIDATED FINANCIAL STATEMENTS OF THE LOCAL GOVERNMENTS FOR THE YEAR ENDED 30 TH JUNE +2020 … - 37 +Opinion - 37 +Basis for Opinion - 37 +Key Audit Matters - 37 + 2.2.1 Implementation of the approved budget - 37 + 2.2.2 Management of Covid -19 Interventions - 40 +Emphasis of Matter - 43 + 2.2.3 Receivables - 44 +Other Matter - 44 + 2.2.4 Link between GoU Chart of accounts and the PBS - 44 + 2.2.5 Recognition of non-produced assets (land) - 45 + 2.2.6 Disclosures of donations in kind - 45 + 2.2.7 Consolidation of all Local Governments - 46 +Other Reporting Responsibilities - 47 +Report on the Audit of Compliance with Legislation - 47 + 2.2.8 Management of Government Fleet - 47 + 2.2.9 Garbage Management - 48 + 2.2.9.1 By-laws on Garbage Management - 49 + 2.2.9.2 Garbage Management Strategy and Plan - 49 + 2.2.9.3 Funding of Garbage management in Urban Councils - 50 + 2.2.9.4 Data and records on the Garbage generated - 50 + 2.2.9.5 Public Awareness and Sensitization - 51 + 2.2.9.6 Protective wear during garbage collection and disposal - 51 + 2.2.9.7 Equipment for Garbage collection and disposal - 51 + 2.2.10 Payroll (Pension & Salary) Management in Local Governments - 52 + 2.2.10.1 Wage performance - 52 + 2.2.10.2 Salary Payments to staff above retirement age - 53 + 2.2.10.3 Over Payment of Salary - 53 + 2.2.10.4 Salary Arrears - 54 + 2.2.10.5 Pension arrears - 54 + 2.2.10.6 Under remittance of deductions - 54 + 2.2.10.7 Irregular Transfers - 55 + 2.2.11 Existence and Implementation of Physical Development Plans (PDPs)in Urban Councils - 55 + 2.2.11.1 Lack of Approved PDP and detailed plans - 55 + 2.2.11.2 Lack of Urban Planning Committees - 56 + 2.2.11.3 Funding of detailed physical development plans and activities - 56 + 2.2.11.4 Lack of Clearly Defined Physical Planning Activities - 57 + 2.2.11.5 Lack of development permits for ongoing physical developments - 57 +2.2.12 Status of Basic Medical Equipment for Maternal Health in (Regional Referral Hospitals/ District Hospitals +& Health Centre IVs) - 57 + 2.2.12.1 Lack of adequate medical equipment at the Health Facility - 57 +iii + + + + + + + + + + + + 2.2.12.2 Failure to properly maintain the medical equipment - 58 + 2.2.12.3 Idle Medical Equipment - 59 + 2.2.12.4 Non-functioning equipment - 59 +2.2.12.5 UgIFT Projects implemented in 2019/2020: Absorption of funds and status of Upgrade of Health +Centres IIs to III Projects - 59 + 2.2.12.6 Follow up audit on UgIFT Projects for 2018/2019 - 60 +2.3 REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED SUMMARY STATEMENT OF FINANCIAL +PERFORMANCE OF PUBLIC CORPORATIONS AND STATE ENTERPRISES FOR THE YEAR ENDED 30 TH JUNE +2020… ……62 +2.3.1 Review of the Consolidated Summary Statement of Financial Performance of Public Corporations and +State Enterprises - 62 + 2.3.2 Financial Performance of Public Corporations and State Enterprises - 64 +PART 3: SECTORAL AND LOCAL GOVERNMENTS CROSS CUTTING FINDINGS - 70 + 3.1 Accountability Sector - 70 + 3.1.1 Unplanned expenditure through Garnishee orders - 70 + 3.1.2 Underfunding of the Contingencies Fund - 70 + 3.1.3 Public debt - 70 + 3.1.4 Low level Tax/GDP ratio - 71 + 3.1.5 Increased Commercial Bank Borrowing with non-fixed interest rates - 71 + 3.1.6 Under absorption of loans - 72 + 3.1.7 Absence of clear policies to guide the tax exemptions and other investor incentives - 72 + 3.2 Agriculture Sector - 73 + 3.2.1 Slow progress of Agriculture Cluster Development Project (ACDP) - 73 + 3.2.2 Preparedness for management of locust invasion in Uganda - 74 +Justice Law and Order Sector 74 3.3 + 3.3.1 Unpaid court awards and compensations - 74 + 3.3.2 Case backlogs - 75 + 3.3.3 Failure to operationalise established Magistrate Courts - 75 + 3.3.4 Progress on the registration of citizens - 76 +Public Sector Management 76 3.4 + 3.4.1 Performance of the NDP II - 76 + 3.4.2 Alignment of the 2019/2020 budget to NDP II - 77 + 3.4.4 Delayed implementation of NDP III - 77 + 3.4.5 Service delivery standards in Government - 78 + 3.5 Energy Sector - 79 + 3.5.1 Unsustainable Deemed Energy Payments - 79 + 3.5.2 Delayed commissioning of Karuma HPP - 79 + 3.5.3 Undeclared Mineral imports and exports - 80 + 3.6 Water Sector - 81 + 3.6.1 Encroachment on the Central Forest Reserves (CFRs) - 81 + 3.6.2 Administration of the National Environment Fund (NEF) - 81 + 3.7 Education Sector - 82 + 3.8 Works Sector - 83 + 3.8.1 Nugatory Expenditure in Interest on delayed payments to contractors - UGX.7.3bn - 83 + 3.8.2 Engineering audit of selected road projects - 83 +3.8.3 Slow progress of works on Kampala flyover construction and road upgrading project and the Northern +Bypass …………………………………………………………………………………………………………………………………………………84 + 3.8.4 Delays in completion of design reviews - 84 + 3.8.5 Delays in progress of works - 85 + 3.8.6 Lack of Disputes Boards - 85 +iv + + + + + + + + + + + +Information Communication Technology Sector 86 3.9 + 3.9.1 Outstanding 2% UCC levy - 86 + 3.10 Trade Sector - 86 + 3.10.1 Government investments through Uganda Development Corporation (UDC) - 86 + 3.10.2 Inadequate Surveillance and testing by UNBS at Border Posts - 86 +Gender and Social Development Sector 87 3.11 + 3.11.1 Youth Livelihood Programme - 87 + 3.11.2 The Uganda Women Entrepreneurship Fund (UWEP) - 88 + 3.12 Cross cutting findings in Local Governments - 89 + 3.12.1 Delays in implementation of UGIFT projects - 89 + 3.12.2 Management of Schools and Tertiary Institutions - 89 +Highlights from the audit of Lower Local Governments for the period 2018/2019 91 3.13 + 3.13.1 Budget implementation in sample LLGs for FY 2018/2019 - 91 + 3.13.2 Quality of Financial Statements - 91 + 3.13.3 Asset Management - 92 + 3.13.4 Implementation of staff performance management initiatives - 92 +ANNEXURES - 94 +ANNEXURE I: OTHER INFORMATION, ACCOUNTING OFFICER’S AND MY RESPONSIBILITIES ON THE +CONSOLIDATED FINANCIAL STATEMENTS OF THE LOCAL GOVERNMENTS - 94 +ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS FOR MDAs, COMMISSIONS, STATUTORY +CORPORATIONS AND STATE ENTERPRISES AND PROJECTS - 96 +ANNEXURE III: SUMMARY ENTITY FINDINGS AND OPINIONS FOR LOCAL GOVERNMENTS - 211 +ANNEXURE IV - LLGs, CLASSIFIED AUDITS, ENGINEERING AUDITS, FORENSIC INVESTIGATIONS AND SPECIAL +AUDITS, IT AUDITS AND THE THEMES THAT WERE AUDITED DURING THE FY2019/2020 - 341 +ANNEXURE V – DEFERRED AUDITS 2018-2019 - 347 +ANNEXURE VI – DEFERRED AUDITS 2019/20 - 349 +ANNEXURE VII: REPORTS AND CONSOLIDATED GOVERNMENT OF UGANDA FINANCIAL STATEMENTS - 363 + +v + + + + + + + + + + + +LIST OF TABLES + +Table 1: Status of audit performance for audit year 2020 - 2 +Table 2: Summary of Opinions - 3 +Table 3: Trend of Opinions for the last three years - 3 +Table 4: Sowing the funds received from external sources - 13 +Table 5: Showing external support to MoH - 14 +Table 6: Showing trend of public debt over the years - 23 +Table 7: Showing trend of domestic debt stock over the years - 24 +Table 8: Showing interest to revenue benchmark over the years - 26 +Table 9: Showing receivables trend for Local Governments - 44 +Table 10: Showing un-consolidated Local Governments - 46 +Table 11: Availability of garbage equipment - 52 +Table 12: Showing salary payments to staff above retirement age - 53 +Table 13: Showing salary arrears - 54 +Table 14: Showing unremitted PAYE deductions - 54 +Table 15: Showing Irregular transactions - 55 +Table 16: Showing lack of adeqauate medical equipment in Health Facilities - 58 +Table 17: Showing progress of completion of works - 60 +Table 18: Showing entities not consolidated but disclosed in the consolidated summary statement - 62 +Table 19: Showing entities not reported or disclosed in the consolidated summary statement - 63 +Table 20: Showing profitability of enterprises - 65 +Table 21: Showing returns on assets - 66 +Table 22: Showing enterprise liquidity - 67 +Table 23: Showing Enterprise gearing - 67 +Table 24: Showing enterprises' ability to service loan obligations - 69 +Table 25: Showing achievements of project targets - 73 +Table 26: Showing the trend analysis of court awards and compensations - 74 +Table 27: Showing programme performance since inception - 87 +Table 28: Showing programme performance over the years - 88 +Table 29: Summarising audit observations on financial statements - 92 + +vi + + + + + + + + + + + +LIST OF ACRONYMS + +ACRONYM DESCRIPTION +AG Auditor General +AO Accounting Officer +Bn Billion +BoU Bank of Uganda +CAs Contracting Authorities +CFR Central Forest Reserve +DGAL Directorate of Government Analytical Laboratory +DLB District Land Board +FY Financial Year +GDP Gross Domestic Product +GoU Government of Uganda +ICT Information Communication Technology +IDA International Development Association +IESBA International Ethics Standards Board for Accountants +IFMS Integrated Financial Management System +IMF International Monetary Fund +KIS Kalangala Infrastructure Services +MAAIF Ministry of Agriculture Animal Industry and Fisheries +MDAs Ministries ,Departments and Agencies +MEMD Ministry of Energy and Mineral Development +MOFPED Ministry of Finance, Planning, and Economic Development +MoGLSD Ministry of Gender Labour and Social Development +MoU Memoranda of Understanding +MTEF Medium Term Expenditure Framework +NAA National Audit Act +NBI National Backbone Infrastructure +NDP National Development Plan +NDPII Second National Development Plan +NEF National Environment Fund +NEMA National Environment Management Authority +NFA National Forestry Authority +NGO Non-Governmental Organisation +NIN National Identification Number +NIRA National Identification Registration Authority +NPA National Planning Authority +NWSC National Water and Sewerage Corporation +OAG Office of the Auditor General +PAPs Project Affected Persons +PDMF Public Debt Management Framework +PFMA Public Finance Management Act, 2015 +PS/ST Permanent Secretary/Secretary to the Treasury +PSST Permanent Secretary and Secretary to Treasury +TAI Treasury Accounting Instructions, 2016 +TIN Tax Identification Number +Tn Trillion +TWGs Technical Working Groups + + + + +vii + + + + + + + + + + + +UCC Uganda Communications Commission +UCF Uganda Consolidated Fund +UDC Uganda Development Corporation +UETCL Uganda Electricity Transmission Company Limited +UGX Uganda Shillings +URA Uganda Revenue Authority +USD United States Dollars +USMID Uganda Support for Municipal Infrastructure Development +WMD Wetlands Management Department +YIGs Youth Interest Groups +YLP Youth Livelihood Programme + + + + +viii + + + + + + + + + + + +GLOSSARY OF TERMS + +Term Definition +Classified Expenditure The expenses and commitments incurred by an authorised agency for the collection and dissemination of information related to national security interests +Contingent Liability A potential liability that may occur depending on the outcome of an uncertain future event. +Domestic Arrears Domestic arrears refer to short-term debts incurred by Governments against unpaid procurement invoices for supply of goods and services during the financial year +External Debt Portion of a country's debt that was borrowed from foreign lenders including commercial banks, Governments or international financial institutions. +Garnishee order A form of enforcing a judgment debt against a creditor to recover money. +Nugatory Expenditure Expenditure that does not achieve any result +Off-budget financing Off-buget refers to expenditure that is not funded through the budget +Recruitment Refers to the process of attracting, screening, selecting, and on boarding a qualified person for a job, provided by an employer in another territory and the preparation for their departure. +Revolving Fund A fund that is continually replenished as withdrawals are made. + + + + +ix + + + + + + + + + + + +FOREWORD BY THE AUDITOR GENERAL + +In accordance with my audit mandate set out under Article 163 of the Constitution of the Republic of Uganda, 1995 (as amended) and the National Audit Act, 2008, I hereby present to you the Annual Audit Report on the Consolidated Public Accounts of Uganda; Local Government; and Summary Statement of Financial Performance of Public Corporations, and State Enterprises + +and Companies in which Government has a controlling interest. + +In delivering my mandate, I audited financial statements and cross cutting thematic areas on: 1) Management of Covid-19 pandemic intervention, 2) Implementation of the approved budget, 3) Fleet + +management in government. + +It is my hope that follow-up and implementation of recommendations in my reports will facilitate + +improvement in public accountability and service delivery. + +The year 2020 was a difficult period for my staff and the management of entities audited due to + +Covid-19 pandemic. Owing to the Ministry of Health Standard Operating Procedures for Covid-19 and Ministry of Public Service guidance on compliance with Covid-19 SOPs, there were challenges in accessing auditees and records. In some cases, auditees’ staff were absent either because of + +compliance with SOPs or being sick. In addition, 24 of my staff tested positive for Covid-19 and these included 3 Directors who would have been crucial in finalising the annual audits. There was also an overall funding deficit of 6.072Bn which further impacted on the auditing activities. + +In light of the above, I was not able to deliver all audits as planned. It is also worth noting that my office developed a new Strategic Plan 2020-2025 focusing on ‘Enhanced organizational performance for impactful audits’ as we strive to add value to society. + +I extend my gratitude to Parliament of Uganda, and all other stakeholders for the support rendered during the audit year. I also thank my staff for their endurance and commitment during this period. + +John F.S. Muwanga + +AUDITOR GENERAL + +26 th February 2021 + +x + + + + + + + + + + + +PART 1: INTRODUCTION AND PURPOSE OF THE REPORT 1.0 INTRODUCTION AND PURPOSE 1.1 General Introduction + +I am required by Article 163(3) of the Constitution of the Republic of Uganda and Section 13 and 19 of the National Audit Act 2008 to audit and report on the public accounts of Uganda + +and of all public offices including the Courts, the Central and Local Government Administrations, Universities and Public Institutions of like nature and any Public + +Corporations or other bodies established by an Act of Parliament. + +Section 13 (b) of the National Audit Act 2008 further requires me to conduct the following audits: + +- Financial audits +- Value for money +- Gender and Environment and any other audits in respect of any project or activity involving public funds +- Classified expenditure +- Government investments +- Procurement audits, and +- Treasury Memoranda + + + +Under Article 163 (4) of the Constitution, I am also required to submit to Parliament + +annually a report of the accounts audited by me for the year immediately preceding. I am therefore, issuing this report in accordance with the above provisions. + +1.2 Purpose + +The purpose of this report is to provide: + +(i) + +A summary of audit results and opinions for audits done in the year + +(ii) Report and Opinion of the Auditor General on the + +- Consolidated Financial Statements of the Government of the Republic of Uganda for the year ended 30 th June 2020 +- Consolidated Financial Statements of Local Governments for the year ended 30 th June 2020 +- The Consolidated Summary Statement of Financial Performance of Public Corporations and State Enterprises for the year ended 30 th June 2020 + +(iii) + +Summary of audit results from audit of thematic and focus areas + +(iv) Sectoral and cross cutting findings, implications and recommendations from the audit of Ministries, Departments, Agencies, Commissions, Statutory Corporations and Local Governments. + +(v) Summary of findings of completed audits which include opinions from the audit of + +Ministries, Departments, Agencies, Commissions, Statutory Corporations (Annexure II) and Local Governments (Annexure III). + +1 + + + + + + + + + + + +1.3 + +Summary of Audit Results + +1.3.1 General Performance + +During the current year, I planned to undertake 2,834 audits. These audits were revised to + +2,724. I was able to undertake 1,204 audits comprising of 82 MDAs, 13 classified entities, 96 Commissions, Statutory Authorities and State Enterprises, 100 projects, 1 engineering + +audits, 29 Forensic Investigations and Special audits, 5 IT audits, 134 District Local + +Governments, 41 Municipal Councils, 700 Lower Local Governments and 3 Compliance + +audits/themes. Details are in Annexure II, III, and IV. + +A balance of 1,520 audits could not be undertaken due to the effects of Covid-19 pandemic + +and the restrictions/ measures instituted by Government to curb the spread of the pandemic and resource constraints. This significantly affected the flow of work from the entities and + +within the offices. Details of deferred audits are provided in Annexure VI. + +Further, in my annual report to Parliament for the financial year 2018/2019, I did not audit 905 entities on the premise that they would be audited during the financial year 2019/2020. + +During the current year, 749 backlogs were undertaken leaving a balance of 156 audits. The backlogs that have remained outstanding include; 4 MDAs, 1 Commissions, Statutory Authorities and State Enterprises, 42 projects, 1 engineering audit, 17 Schools and Tertiary + +Institutions, and 91 Lower Local Governments. Details of the deferred audits are in + +Annexure V. + +The forensic investigations and special audit reports have been issued to the respective stakeholders who requested for them. Details of the general performance are provided in + +table below. + +Table 1: Status of audit performance for audit year 2020 + +Type of Entity Planned Audits for the audit year 2020 Revised Planned Audits for the year 2020 Actual Performance as at December 31, 2020 Audits deferred during the year +MDAs 124 124 82 42 +Classified entities 13 13 13 0 +International Audits 1 2 0 2 +Commissions, Statutory Authorities and State Enterprises 107 116 96 20 +Projects 115 163 100 63 +PSAs 4 4 0 4 +Districts 134 134 134 0 +Municipal Councils 41 41 41 0 +Lower Local Governments 2018/2019 1,812 1,640 700 940 +Schools/Tertiary institutions 360 372 0 372 +Forensics/Special 76 66 29 37 + + + + +2 + + + + + + + + + + + +Audit +VFM Studies 20 20 0 20 +Public Private Partnerships 1 1 0 1 +Engineering Audits* 16 16 1 15 +IT Audits 6 9 5 4 +Compliance Audit (Themes) 4 3 3 0 +TOTAL 2,834 2,724 1,204 1,520 + + + + +* The one (1) engineering audit includes 15 projects under UNRA. + +1.3.2 Summary of Opinions + +Of the 453 financial audits concluded (MDA, Commissions, Statutory Authorities and State Enterprises, Projects, Districts and Municipalities), 420 (93%) entities had unqualified + +opinions while 33 (7%) entities had qualified opinions. The table 2 and figure 1 below + +provides the summary of the Opinions: + +Table 2: Summary of Opinions + +Category of Audited entities Type of Opinions Total + Unqualified Qualified Adverse Disclaimer +Ministries, Departments and Agencies 71 11 0 0 82 +Commissions, Statutory Authorities and State Enterprises 88 8 0 0 96 +Projects 100 0 0 0 100 +Districts LocalGovernments 122 12 0 0 134 +Municipal Councils 39 2 0 0 41 +TOTAL 420 33 0 0 453 + + + + +Table 3: Trend of Opinions for the last three years + +Type of Opinion 2019/20 2018/19 2017/18 +Unqualified 420 433 428 +Qualified 33 54 37 +Adverse 0 0 1 +Disclaimer 0 0 0 +Total 453 487 466 + + + + +3 + + + + + + + + + + + +Figure 1: showing summary of opinions for the last 3 years + +Trend of opinions + +500 400 300 200 100 0 2017/2018 2018/19 2019/20 + +Unqualified Qualified Adverse + +4 + + + + + + + + + + + +PART 2: CONSOLIDATED FINANCIAL STATEMENTS + +2.0 REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED FINANCIAL STATEMENTS + +2.1 + +REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 TH JUNE 2020 + +THE RT. HON. SPEAKER OF PARLIAMENT Qualified Opinion + +I have audited the accompanying Consolidated Financial Statements of the Government of the + +Republic of Uganda for the year ended 30 th June 2020. These financial statements comprise of the Consolidated Statement of Financial Position as at 30 th June 2020, the Consolidated Statement of + +Financial Performance, and Consolidated Cash Flow Statement together with other accompanying + +statements, notes, and accounting policies. + +In my opinion, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph, the financial statements of the government of Uganda for the year ended 30 th June 2020 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. + +Basis of Qualified Opinion 2.1.1 Mischarge of Expenditure – UGX.314,810,330,324 + +A review of the expenditures revealed that various entities charged wrong expenditure codes to the tune of UGX.314,810,330,324 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. + +2.1.2 Funds not Accounted for – UGX.6,301,194,734 + +Expenditure by various entities amounting to UGX.6,301,194,734 was not accounted for by the time of the audit and yet it had been expensed. In the absence of proper accountability, + +I could not provide assurance as to whether the funds were utilised for the intended purposes. Such delays in accounting for funds encourage misuse. + +2.1.3 Expenditure on undisclosed Domestic Arrears – UGX.641,306,907 + +Included in the expenditure for the year is UGX.641,306,907 that relates to domestic arrears payments which had not been disclosed by several votes. The expenditure was irregularly reported as current year’s expenditure, whereas it relates to previous financial years. This + +overstated the current year’s expenditure. + +5 + + + + + + + + + + + +2.1.4 Unsupported domestic arrears – UGX.9,436,110,584 + +Included in the payables figure are domestic arrears worth UGX.9,436,110,584 which are not well supported with invoices, goods received notes, completion certificates etc. to + +confirm delivery of goods or services. Under the circumstances, I could not provide + +assurance regarding their existence. + +I conducted my audit in accordance with International Standards of Supreme Audit Institutions + +(ISSAIs). My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statement’s section of my report. I am independent of the Treasury in accordance with the Constitution of the Republic of Uganda (1995) as amended, the + +National Audit Act, 2008, the International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants (Parts A and B), the International Organization of Supreme + +Audit Institutions (INTOSAI) Code of Ethics and other independence requirements applicable to + +performing audits of Financial Statements in Uganda. I have fulfilled my other ethical responsibilities in accordance with the IESBA Code, and in accordance with other ethical requirements applicable to performing audits in Uganda. I believe that the audit evidence I have + +obtained is sufficient and appropriate to provide a basis for my qualified opinion. + +Key Audit Matter + +Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the financial statements of the current period. These matters were addressed in the context of my audit of the financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters. I have determined the matters described below to be key audit matters communicated in my report. + +2.1.5 Implementation of the approved budget + +Every year, government plans and allocates funds to Ministry, Department, and other + +Agencies (MDAs) for implementation of activities that would enable the country to attain sustainable development. I observed that MDAs have challenges with regard to + +implementation of planned activities, which negatively affects service delivery and + +improvement of the people’s wellbeing. As a result, the implementation of the approved budget was considered a key audit matter and during the office-wide planning, I identified + +risks common with MDAs which include; non-implementation of strategic plans, underperformance of revenue, implementation of off-budget activities, under absorption of funds, insufficient quantification of outputs, partial and non-implementation of outputs, diversion of funds and challenges in budget monitoring and reporting of performance. + +The outbreak of the Covid-19 Pandemic affected the implementation of the 2019/20 budget + +especially activities in the last half of the financial year. As a result, a number of activities were not implemented due to budget cuts and lock down measures instituted to control the spread of the pandemic. + +6 + + + + + + + + + + + +From the procedures undertaken, I noted the following; + +SN Finding Recommendation +i. Revenue performanceReview of the approved budget estimates of Government of Uganda for the financial year ended 30 th June 2020 revealed that the initial approved budget (resource envelope) for the financial year 2019/20 was UGX.40,487.9bn as summarised below;.Funding source Approved Budget (billions) - UGXActual (billions) - UGXVariance (billions) - UGX Domestic Resources Taxes 18,877.30 16,043.52 2,834 Non Tax revenue 1 1,772.53 1,262.02 510.51 Petroleum fund 445.82 255 191 Domestic financing2,830.88 2,831.26 0.38External Resources Budget support Grants 100.58 65.2 35 Loans 574.59 3,049.80 (2,475) Project support Grants 1,799.37 635.5 1,164 Loans 7,634. 22 5,294.30 2,340 Domestic refinancing6,452.60 4,863.90 1,589 Grand Total 40,487.90 34,300.50Actual funding for the budget during the financial year was UGX.34,300.5bn against a budget of UGX.40,487.9bn, indicating a shortfall of UGX.6,187.4bn equivalent to 15% of the budget. The details of each funding source are provided below;a) TaxesThe total tax revenue collected during the year was UGX.16,043.52bn, representing 85% of the approved estimates.b) Non-tax revenue (NTR)A total of UGX.1,262.02bn was realised from this source against a target of UGX.1,571.43bn. Budgeting for NTR remains a challenge at the Treasury, as the figures included in the revenue estimates are not agreed with individual votes, and a number of entities do not reflect NTR in their budgets.c) Petroleum fundUGX.445.8bn was approved for transfer from the petroleum I advised the Secretary to the Treasury to devise means of ensuring that all budgeted revenue is always collected to fund the budget as approved. + + + + + + + + + + + + + + + + + + + + +1 Includes appropriation in Aid of UGX 201.1 billion + +7 + + + + + + + + + + + +Fund to the consolidated fund. It was noted that only + +UGX.255bn was realised from this source, representing 57% of + +the budgeted amount. It was observed that during the year only UGX.35bn was realised from Petroleum related activities which cash flow could not support the budgeted transfer to the + +consolidated fund. + +d) Budget support + +Government planned to raise a total of UGX.675.1bn for budget support of which 15% was grants while 85% was from loans. Grants underperformed by UGX.35bn while Government acquired loans of UGX.2,475bn in excess of what was planned. The increase in loans for budget support related to additional borrowing that was secured in light of COVID -19 disruptions. + +e) Project support + +A total of UGX.9,433.59bn (23.2%) of the approved budget + +was planned for project support of which grants and loans were UGX.1,799.37bn and UGX7.634.22bn respectively. Grants underperformed by 64.6% while a total of UGX.5,294.3bn (69.3%) was realised from the loans. + +f) Domestic refinancing + +Government planned to pay back maturing Treasury Instruments by borrowing afresh from the market (domestic refinance) to a tune of UGX.6,452.6bn. However, this was not + +realised as UGX.1,413bn was borrowed from Bank of Uganda + +instead of the market. + +The Permanent Secretary/Secretary to Treasury (PS/ST) in response explained that; + +i) Taxes + +The shortfall in taxes was mainly due to; the slowdown in economic activity as a result of the COVID-19 pandemic (70.4 percent of the shortfall in tax revenue was in the last four months of FY 2019/2020); delayed and/or non-implementation of some measures such as widening the scope of withholding tax agents, non-implementation of the rental solution as well as late implementation of digital tax stamps; and lastly + +Government decision to allow companies that were affected by + +COVID-19 to defer until September 2020 the payment of PAYE and corporate income tax that became owing on or after 1st April 2020 and 30 th June 2020 in order to support business operation and continuity. + +ii) Non-tax revenue + +The shortfall in non-tax revenue mainly arose from the + +lockdown measures that affected the revenue sources for this category, for example; closure of offices for driving permits, + +8 + + + + + + + + + + + + universities, among others. One of the key reforms in NTR is the requirement to remit Appropriation In Aid (AIA) for all Central Government Votes to the consolidated fund.iii) Petroleum FundThe expected revenues in form of capital gains tax worth UGX.198bn never materialised and thus affected the amount which could be transferred from the Petroleum Fund.iv) Budget SupportA combination of lower domestic revenue and the additional expenditures to curtail the spread of the COVID-19 pandemic translated into an increase in the budget deficit. This increase in the deficit was financed largely by increase in external borrowing, mainly Budget Support loansv) Domestic RefinancingThe borrowing from BoU in the face of economic slowdown was to finance statutory obligations which could not be postponed further and was within the PFMA 2015 requirements.vi) Project SupportProject performance was affected by the global supply chain disruption caused by the COVID-19 pandemic. In addition, project execution slowed down as movements and works were curtailed by the domestic lockdown measures put in place to contain the spread of Coronavirus.However, to increase success in revenue collections, Government has put in place the Domestic Revenue Mobilization Strategy (DRMS) and is currently working on the implementation plan of the DRMS. This plan will help in reducing the shortfalls going forward. +ii. Approval of warrants by Treasury not in line with budgetDuring the year under review, Government budgeted to spend a total of UGX.40,487bn, which was later revised to UGX.42,724bn. An analysis of warrants approved revealed that a total of UGX.37,038bn was approved against the budgeted amounts, thus representing 91% performance. A sum of UGX.5,685.8bn was not availed for expenditure.Failure 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 National Development Plan (NDP) II and Vision 2040. The detailed impact of this shortfall on the entity activities has been reported in the individual entity reports.I observed that whereas the performance contracts with Accounting I advised The Accounting Officer to provide guidance to MDAs in regard to prioritisation of activities to the levels of availed resources in cases of shortfalls. + + + + +9 + + + + + + + + + + + + Officers are premised on availing the appropriated budgets during the year, such contracts are not revised in situations of shortfalls in budgets.The PS/ST explained that the economic slowdown from March 2020 affected Quarter 4 revenue and expenditure projections. Releases in Q4 were therefore made only for the Security, Health and Coordinating agencies. In addition, the flow of funding from Donors was equally affected by the pandemic which led to a general revenue shortfall for the overall budget financing. +iii. Unspent warrants/under absorption of fundsI observed that warrants worth UGX.37,038bn were approved in respect of various entities for which only UGX.35,058bn was paid out leaving UGX.1,980bn unspent. 82% of the unspent funds related to non-wage expenditure while wage and development expenditure posted underperformance of 6.5% and 11% respectively.86% of the unspent funds under non-wage related to Vote 130 (Treasury Operations) and were meant to settle interest costs and treasury bills and Bonds redemptions. Most of the unspent funds under wage related to pension payments, casting doubt on the existence of the said pensioners.Under absorption negatively affects service delivery since some of the planned projects and activities are not undertaken.The PS/ST explained that cash limits are warranted by entities in advance in anticipation that the cash resource will be sufficient to fund them. However, by close of the FY2019/2020 the cash available was not adequate to fund all the warranted amounts leading to under absorption. The most affected were invoices of treasury operations of UGX.1.4tn that went unfunded. I advised the Secretary to the Treasury to liaise with the Accounting Officers of the various MDAs and local governments to devise means of improving budget implementation so as to enhance funds absorption. +iv. Approval of supplementary funding without matching revenueI noted that during the financial year ended 30 th June 2020, supplementary funding totalling UGX.2,236,651,780,554 was granted by the Minister of Finance, Planning and Economic Development. It was however noted that, the source of the funding for the supplementary expenditure is not clearly shown before approval is granted. As a result the supplementary expenditure is instead financed by internal budget cuts from various votes, thus affecting the implementation of plans/ activities by the affected votes.I further noted that, although the budget was increased to UGX.42.74tn, it was only funded by UGX.37tn, which was even lower than the earlier budget of UGX.40.5tn. This casts doubt as to the necessity of the supplementary.As a result, the supplementary expenditure is instead financed by internal budget cuts from various votes without following particular criteria, thus affecting the implementation of plans/ activities by the I advised the Accounting Officer to ensure that all supplementary expenditure approvals are supported with detailed sources of financing.A policy to guide on selection of the entities whose budgets are affected and the items should be developed to avoid the risk of + + + + +10 + + + + + + + + + + + + affected votes.Continued approval of supplementary budgets without a corresponding source of revenue/financing hampers transparency and may lead to budget cuts for priority areas.In response, the PS/ST explained that the supplementary expenditure is issued in line with Section 25(1) of the Public Finance and Accountability Act (PFMA) and was based on the reprioritised activities in the face of the pandemic. This was mainly to be financed from savings on account of activities that had been suspended during Q4 budget execution. abuse of the authority to approve supplementary budgets. +v. Continued non-inclusion of some revenue sources in the budgetI noted that a number of MDAs continue to access revenues and donor funds that are not reflected in the approved budget. These funds were either received directly from development partners or collected as NTR and payments are being effected to the suppliers directly for undertaking activities not included in the main budget. For example a total of UGX.448,004,814,400 was received and utilized by 33 MDAs without appropriation by Parliament.Disjointed budget financing distorts planning, and may result in duplication of activities, wastage and abuse.The Accounting Officer explained that some Development Partners still prefer to send their funds directly to the interventions they support. However, Ministry of Finance Planning and Economic Development (MoFPED) has included a section of Off-Budget in the Estimates and will continue to engage development partners to include their funds in the Budget. In line with the PFMA, 2015 (amended), the PS/ST should insist on having all funds included in the budget regardless of the source.In case funds are remitted midway the year, supplementary budgets should be drawn. The idea of off-budget financing should not arise. +vi. Budgeting for Non-Tax Revenue (NTR)Section 6 Budget Execution Circular for the FY 2019/2020 provides that all work plans and Budgets for FY2019/2020 are prepared and approved using the Program Budgeting System (PBS). All Budgets, irrespective of the source of financing (GoU, NTR/AIA, Donor or LG Revenue), will be migrated and loaded into the Integrated Financial Management System (IFMS) to facilitate Budget Implementation and reporting.According to the approved Budget estimates for the FY2019/2020, it was projected that a total of UGX.1,571.43bn would be collected as Non Tax Revenue (NTR).Review of Program Based Budgeting (PBB) tool used by the Government and IFMS records revealed that NTR Budgets for the respective MDAs were neither uploaded on PBS nor IFMS. The budgeting tool only had details regarding expenditure, and no revenue was included.As a result, I was unable to compare respective budget entity figures I advised the PS/ST to ensure that all Ministries, Departments and Agencies budget for the Non-Tax Revenue and have the details provided in the IFMS and the PBS. + + + + +11 + + + + + + + + + + + + with the Uganda Revenue Authority (URA) NTR collections that totalled to UGX.1,262.02bn. Absence of revenue estimates for each entity is a manifestation that these entities do not actually plan for this revenue. Performance assessment is also hampered.The PS/ST indicated that the budget for NTR is manually prepared and approved through appropriation. However, the PBS is being upgraded together with IFMS to capture the NTR submissions as appropriated to Votes effective FY 2021/2022. +vii. Failure to Budget for Domestic ArrearsSection 13(10) (a) (iv) of the Public Finance Management Act, 2015 defines an annual budget as the financing estimates for the financial year to which the budget relates, including a plan for Government debt and any other financial liabilities for the financial year to which the annual budget relates.Review of the approved budget estimates for the government for the past two financial years indicated that the Ministry of Finance Planning and Economic Development did not make sufficient budget provisions towards the settlement of domestic arrears despite the accumulation of a total of UGX.3,334,699,967,995 in un-paid obligations. The amount provided in the budget for the FY 2019/2020 was only UGX.449,533,000,000 which is 13.4% of the reported arrears for the previous financial year. I advised the Secretary to Treasury to devise means of obtaining funding to settle all the arrears and also instil measures to stop the accumulation of arrears by the respective MDALGs. +viii. Quantification of activities and Implementation of planned outputsParagraph 55 of the Budget Execution Circular for the financial year 2019/2020 states that the Accounting Officer is required to submit quarterly performance reports by the 30th day of the first month of the next quarter. These reports should indicate the actual performance against the planned outputs and performance for each quarter, showing the quantity/quality and physical location of the reported outputs against expenditure.For a sample 124 entities for purposes assessing the implementation of planned outputs I noted that out of the 2,261 outputs worth UGX.9.6tn sampled for review, 1,436 outputs (63.5%) worth UGX.4.8tn were fully quantified, 409 outputs (18.1%) worth UGX.2.7tn were partially quantified while 416 out puts (18.4%) worth UGX.2.0tn were not quantified at all.Out of a total of 1,436 quantified out-puts worth UGX.4.8tn assessed, 560 (38.9%) output worth UGX.1.6tn were fully implemented, 659 outputs (45.9%) worth UGX.3.0tn were partially implemented, while 217 (15.1%) out-puts worth UGX.131bn were not implemented at all. The graph below shows the extent of implementation; The PS/ST should ensure that the Accounting Officers of the various Ministries, Departments and Agencies fully comply with the Budget call circular and also always fully implement the planned outputs. + + + + +12 + + + + + + + + + + + +15% 39% + +46% + +Fully Implemented Partially implemented Not Implemented + +Failure to fully quantify the planned activities makes the assessment of implementation difficult. + +The PS/ST indicated that the outbreak of the Covid-19 Pandemic affected the implementation of the 2019/2020 budget, especially activities in the last half of the financial year. + +2.1.6 Management of Covid-19 Interventions + +In the wake of the Covid-19 pandemic coupled with Government’s imposed restrictions to + +combat the spread of the disease, this greatly reduced the economic activity in the country + +which impacted on the cash flow collections by URA. + +The above challenge therefore necessitated alternative sources of financing the Government + +budget. Accordingly, during the year under review, government obtained Parliamentary approval for funding from the following sources; + +Table 4: Sowing the funds received from external sources + +SN Funding source Modality Curren cy Amount Amount - UGX Bn Amount Disbursed in 2019/20 Amount Disbursed in 2020/21 + UGX Bn UGX Bn +1 IMF Budget Support Loan (BoU, UDB &MOFPED) BOU SDR 249,725,331 1,311.058 1,311.058 0 + UDB SDR 88,138,352 462.726 462.726 0 + Budget Support SDR 23,136,317 121.466 121.466 0 +2 World Bank (Treasury) Budget Support SDR 218,700,000 1,148.175 0 1,148.175 +3 EU Grant (Treasury) Budget Support EUR 4,000,000 17.200 0 17.200 +4 Stanbic Bank Ltd Loan (Treasury) Budget Support EUR 300,000,000 1,290.000 1,075.000 215.000 +5 TDB (PTA Bank) (Treasury) Budget Support EUR 300,000,000 1,290.000 1,290.000 0 +6 World Bank (MOH-URMCHIP) Project Support USD 15,000,000 55.725 37.150 18.575 +7 Islamic Development Bank (NMS) Project Support USD 13,790,000 51.230 0 51.230 + 5,748 4,297 1,450 + + + + +13 + + + + + + + + + + + +Of the amounts approved by Parliament amounting to UGX.5.75tn, by 30 th June 2020 only + +UGX.4.3tn had been disbursed while the balance of UGX.1.5tn was disbursed in the + +subsequent financial year. + +In addition to the above, Government through the Ministry of Health received grants worth UGX.29.5bn from three external sources as summarized below; + +Table 5: Showing external support to MoH + +Source Amount disbursed by 30 th June 2020 - UGX +Global Fund 17,192,172,100 +GAVI 11,545,994,300 +Uganda Sanitation Fund (USF) 788,188,100 +TOTAL 29,526,354,500 + + + + +I further established that, cash donations amounting to UGX.11.6bn and donations-in-kind 2 + +worth UGX.23bn were received from private citizens and other agencies to support the + +effort. Government further availed an additional UGX.27.23bn from the Contingency funds to + +support the Ministry of Health (UGX.25bn), Office of the Prime Minister (UGX.2bn) and Embassy of Beijing to support Ugandan students (UGX.233m). + +I noted that, out of the UGX.4.3tn budget support funds obtained during the year under + +review, Parliament of Uganda approved a supplementary budget of UGX.284bn for multi sectoral interventions, to enable the Government respond to and manage the Covid-19 pandemic. The funds were disbursed by the Treasury to 134 districts and 11 MDAs for the purpose during the financial year 2019/2020. + +Accordingly, as part of my audit for the year under review, I examined: the UGX.284bn that + +was disbursed to the MDAs and districts, the UGX.27bn released from the Contingency Fund + +as well as the utilisation of the in-kind donations, the findings from which, are summarised + +in this report. I also separately examined UGX.7.46bn that was spent under classified expenditure for which a separate report will be issued. This report also excludes UGX.10bn disbursed to Parliamentary Commission, which was audited and a separate report issued, as well as expenditure of UGX.233 Million disbursed to the Embassy of Beijing for which a + +separate report is to be issued. + +Below is a summary of the key findings I noted, the details of which are included in individual reports issued separately; + +SN Observation Recommendation +i Failure to fully absorb the released fundsSection 17(2) of the PFMA 2015 which states that a vote that does not expend money that was appropriated to the vote for the financial year shall at the close of the financial year, repay the money to the consolidated fund. I advised the accounting officer to ensure that activities are properly executed in order to avoid partial or non-execution of key interventions resulting + + + + +2 This amount excludes donations in kind received by the Ministry of health and the local governments which had not been valued by the time of reporting. 14 + + + + + + + + + + + + UGX.6.68bn out of UGX.259.6bn was not utilised by 4 entities at the close of the financial year and was subsequently returned to the Consolidated Fund.This affected the implementation of the planned activities and the delivery of required services to the intended beneficiaries.Failure to implement all activities and thus utilise all funds was attributed to disruptions of the Covid-19 pandemic including the limitation on activities due to the national lockdown. in failure to deliver required services and the return of funds.I also advised that the accounting officer to always return any unexpended funds to the consolidated fund as required by law or seek proper authorisation before retaining such funds. +ii Quantification and Implementation of planned activitiesParagraph 55 of the budget execution circular for the financial year 2019/2020 states that the Accounting Officer is required to submit quarterly performance reports by the 30 th day of the first month of the following quarter. These reports should clearly indicate the actual performance against the planned outputs and performance for each quarter, showing the quantity/quality and physical location of the reported outputs against expenditureOut of 7 entities analysed, 7 (100%) entities had work plans with a total of 123 activities. Out of these, 89 activities were fully quantified while 34 (27.6%) activities were not sufficiently quantified, which hindered me from assessing the extent of achievement of the activities.Failure to quantify activities creates ambiguities in allocation of funds and budget slack which can be exploited to divert funds.Out of the 89 quantified activities, 62 (69.7%) activities were fully implemented while 16 (18%) were partially implemented and 11 (12.3%) were not implemented at all.The failure to implement planned activities implies that the expected services were not received by the beneficiaries.The Accounting Officers attributed this to the nature of some of the activities that were difficult to quantify, as well as poor planning and budgeting practises within the votes. I advised the Accounting Officers to always ensure that activities in the work- plans are comprehensively quantified to justify funding, support implementation of the work-plans by having clear and verifiable targets and to enable assessment of management’s performance. +iii Compliance with Procurement regulationsParagraph 5 of the guidelines issued by the PS/ST on the receipt and accountability for donations for Covid-19 requires accounting officers to follow PPDA regulations which guide on how procurements should be undertaken under emergency conditions.A total of 5 entities undertook procurements worth UGX.166bn without fully adhering to the procurement rules and regulations. Some of the anomalies observed included: irregular use of direct procurements, procurements without I advised the Accounting Officers to always adhere to the procurement guidelines even in cases of emergencies. + + + + +15 + + + + + + + + + + + + signed contracts, late delivery of goods, payments before receiving goods and failure to involve the contracts committee.Non-compliance with the procurement regulations exposes public funds to misuse and impairs the achievement of value for money.The Accounting Officers attributed this to the emergency nature of the procurements given the prevailing circumstances. +iv Unaccounted for fundsParagraph 10.10.1 of the Treasury Instructions 2017 provides that all payments must be adequately supported with sufficient details to enable them to be checked without reference to other documents.UGX.758,768,000 remained unaccounted for at the time of audit. I could not establish whether the funds were put to proper use.The failure to account for the funds was attributed to the peculiar circumstances of the pandemic and lockdown measures which affected the operations of the entities and thus the ability to prepare and present the accountabilities. I advised the Accounting Officers to follow up on all pending accountabilities failure of which the funds should be recovered. +v Valuation of donations in KindParagraph 15.5.1 of the Treasury Instructions 2017 states that inventories are accounted for by value as well as by quantity, and it is necessary for an Accounting Officer to keep records so as to determine the unit cost of each inventory item and the reconciliation of the total value of the stocks of inventories with the financial records. The PS/ST also guided that all items received in kind should be taken on charge, distributed with the approval of the Covid-19 task force and appropriately accounted for.3 (60%) out of 5 entities that received donations in kind did not undertake valuations contrary to paragraph 15.5.1 of the Treasury Instructions, 2017 while 1 (20%) entity did not record the donated items in the stores. This resulted into misstatement of financial statement balances.The failure to adhere to the guidelines on donations was attributed capacity gaps within entities such as inadequate staff, the emergency nature of the activities during the lockdown, and the need to adhere to ministry of health SOPs in regard to the spread of the virus. I advised the Accounting Officers to always adhere to the guidelines regarding the management and distribution of government inventories and in future develop alternative accountability mechanisms in unique situations. +vi Management of Quarantine CentresAll entities that were funded to manage quarantine centres faced challenges in their management and operation. The challenges faced included: insufficient PPEs, lack of necessary I advised that accounting officers to put in place contingency plans should such emergencies re-occur. + + + + +16 + + + + + + + + + + + + staff at the quarantine centres, failure to provide basic utilities such as water and power and non-utilisation of the quarantine centres.This may have hampered Government efforts towards the containment of the spread of the pandemic.The Accounting Officers explained that the failure to properly manage the quarantine centres was due to inadequate funding for the acquisition of supplies including PPEs, lack of trained staff to manage the centres, and space constraints. +vii Distribution of donations in Kind under OPMItems valued at UGX.55.8bn that were distributed under the Office of the Prime Minister (OPM) lacked sufficient evidence of acknowledgement to enable me verify the recipients. I advised the Accounting Officer to ensure that in future OPM uses alternative forms of evidence such as use of photographs at the point of receiving items to complement the lists where evidence of confirmation of receipt cannot be obtained through signatures and thumbprints. +viii Quality testingQuality checks by UNBS on a sample of 14,069 metric tonnes of maize flour and 8,547 metric tonnes of dry-beans established that 2,615 metric tonnes of maize flour and 2,017 metric tonnes of dry-beans intended for distribution by Office of the Prime Minister did not pass quality checks.Furthermore, quality checks were not done for items procured by the Ministry of health including Intensive care equipment (UGX.26bn), Face masks (UGX.26bn), and Lab testing kits for Covid-19. I advised the Accounting Officer to ensure that the quality of the relief items procured conform to the acceptable quality parameters by certified testing bodies. +ix Diversion of fundsRegulation 18 (2) of the Public Finance Management Regulations, 2016 provides that an Accounting Officer who intends to spend monies for any purpose in excess of the amount appropriated for that purpose or for a purpose for which no amount was appropriated by the Appropriation Act shall, in writing, request the Minister for approval.I noted that funds amounting to UGX.10.5bn, released for the implementation of Covid-19 activities in three (3) entities was diverted and spent on items other than those for which the funds were disbursed.Diversions affect the achievement of the goals and objectives for which the funds had been released. I advised the Accounting Officers to adhere to the implementation of activities as stipulated in the work plans. + + + + +17 + + + + + + + + + + + +Emphasis of Matter + +Without qualifying my opinion further, I draw attention to the following matters in the consolidated + +financial statements that in my judgment are of such importance and fundamental to users’ understanding of the financial statements; + +2.1.7 The effects of change in Accounting Policy + +According to the guidance issued by the Accountant General for the preparation of Financial + +Statements for Ministries Departments and Agencies (MDAs) and Local Authorities (LA) for the year ended 30 th June 2020, there has been a change in the basis of preparation of financial statements from modified cash to modified accrual basis of accounting. + +The modified accrual basis of accounting recognises revenue from exchange transactions + +when earned resulting into recognition of receivables in the statement of financial position, revenue from non-exchange transactions when cash is received and expenses when incurred but within the approved budget resulting into recognition of payables in the statement of financial position. + +To aid comparability, the adoption of a new accounting policy would require a restatement of comparative figures and the opening balances. However, as stated in note 1.1 of the + +financial statements, neither the comparative figures nor the opening balances were restated. This makes comparison difficult and may mislead users of financial statements. + +2.1.8 Government Loans (Borrowings) - UGX.56,883,757,332,999 + +As disclosed in the statement of financial performance, the government Loans have + +increased from UGX.46,407,788,326,917, in 2019 to UGX.56,883,757,332,999 in 2020 + +constituting an increase of UGX.10,475,969,006,082 (23%) increase. This position reflects the country’s increased appetite for borrowing and may make debt payment unsustainable. + +2.1.9 Payables – UGX.3,838,564,580,857 + +As disclosed in the statement of financial performance, the domestic arrears have increased from UGX.3,334,699,967,995 in 2019 to UGX.3,838,564,580,857 in 2020 constituting a 15% increase. The amount represents 9% of the revised budget of government of Uganda for the financial year 2019/2020. This is an indication of the failed commitment control system. The + +growth trend appears unsustainable and on the rise. This could also be as a result of approving supplementary budgets with no matching funding. + +The PS/ST explained that government is currently implementing a Domestic Arrears Strategy to clear significant amounts of the verified arrears. + +2.1.10Contingent Liabilities – UGX.11,493,690,016,028 + +As disclosed in the statement of contingent liabilities, Government contingent liabilities have + +increased to UGX.11,493,690,016,028 up from UGX.10,782,352,998,158 reported in the previous year, representing a 7% increase. The trend appears unsustainable in the event + +that a significant percentage crystallises into liabilities. + +18 + + + + + + + + + + + +2.1.11Classified Expenditure – UGX.608,200,000,000 + +As disclosed under note 8, a total of UGX.608,200,000,000 relates to classified expenditure. In compliance with Section 24 of the Public Finance Management Act, 2015 (Classified Expenditure), this expenditure is to be audited separately and a separate audit report + +issued. + +Other Matters + +I consider it necessary to communicate the following matters other than those presented or + +disclosed in the financial statements. + +2.1.12 Tax Policy + +2.1.12.1 Absence of clear policies to guide the tax exemptions and other investor incentives + +Audit observed that there is no clear policy guideline for the issuance, management and monitoring of the different tax benefits and incentives issued by the Government to + +different beneficiaries. The absence of a clear mechanism and framework exposes the scheme to mismanagement and abuse. + +For example, there were inconsistencies in the grant of tax benefits to the various + +beneficiaries, and some were in conflict of earlier policy decisions that were made by Government. + +Whereas on one hand Government offered a 10-year tax holiday to some companies in + +the steel sector to promote growth of the sector, on the other hand the same Government offered waivers for import duty on steel products to other companies. + +In light of the above, there is conflict in policy as presented in the above offers. It was also noted that there is no mechanism in place for evaluating and/or assessing the impact of the benefits granted with some of the offers expiring without follow up. In the absence of a monitoring framework, Government is not in a position to assess the impact of the tax benefits granted to the various beneficiaries. + +In response, management explained that the Ministry was working to develop a + +framework for determining tax expenditure and exemptions. The first phase was completed with a report on catalogue of tax expenditure and exemptions. The next phase + +will develop a framework for determining tax expenditure and exemptions. + +I advised the PS/ST to expedite the process of developing a comprehensive framework to + +guide the identification of beneficiaries/criteria, the nature of benefits to be granted, monitoring and assessment. + +2.1.12.2 Continued loss of revenue due to Failure by Government to meet contractual obligations with a Palm Oil Refineries company + +The Government of Uganda through the MoFPED, entered an agreement on 4 th April, + +2003 with a Palm Oil Refineries company for the development of oil palm industry in Uganda. Under Article 5(7) of the Agreement, GOU was required to pay Value Added Tax + +19 + + + + + + + + + + + +(VAT) on the products purchased under the project for a period of 11 years provided Government hands over 26,500 hectares of land. It was agreed that the company would + +then refund (subject to clause 3 of article 4) the VAT paid by the Government with interest over a period of eight (8) years in eight equal instalments, including accrued interest starting in the twelfth (12 th ) year. + +However, Government has breached the contract by failing to provide all the 26,500 hectares, currently, there is a balance of the 10,000 hectares not handed over. There is no documentation to show that the Ministry has made any follow-up on this matter. + +Due to Government’s failure to provide the balance of the required land, the MoFPED has + +continued to settle all tax obligations on behalf of the company. In the year under review, + +the Minister wrote off a total of UGX.194,321,358,561 in line with the Tax Procedures + +Code Act (2019), being arrears as at 30 th June 2019 and also a total of + +UGX.34,172,465,908 has been accumulated in the year under audit. + +Under the circumstances, it is apparent that instead of paying for 11 years, Government + +has so far paid for 17 years and is still continuing while the chances of recovery appear to + +be slim given the default. The continued failure to provide land continues to affect the + +Uganda Revenue Authority in its revenue collection efforts and also affects Government of Uganda revenue performance. + +The Accounting Officer indicated that the Ministry was currently engaged in discussions + +with the Ministries of Agriculture, and Lands to identify land to meet Government + +obligations under the agreement. + +I advised the Accounting Officer to follow up with the responsible ministries to expeditiously address the land issue. In the meantime, the PS/ST should also consider seeking legal advice from the Attorney General on the possibility of reviewing the terms + +of the agreement. + +2.1.12.3 Review of the Performance of the agreement between a private company and Ministry of Finance for the development of an Industrial Park + +On 7 th July 2017, Government of Uganda, through Ministry of Finance Planning and Economic Development, entered into an agreement with a private company for the development of an industrial park and a free zone in Mbale. The project was planned to occupy total land acreage of 619 situated in FVR 307 Folio 6 Mutoto. The agreement was signed with the purpose of providing roles and obligations of the parties to ensure that the project was carried out in accordance with the agreement, approved implementation plan, approved investment plan, and approved financing plan and a local content strategy and best practices. + +Review of the agreement revealed that Government committed to provide benefits and + +incentives relating to income tax, value added tax and international trade. Included in the + +income tax incentives was, exemption of income generated from agro-processing, a 10- year tax holiday for a person deriving income from exportation of at least 80% of the finished goods and capital goods produced in the year, indefinite carry forward losses and exemption from 6% withholding tax on imports. + +20 + + + + + + + + + + + +Further review of the agreement and performance of the obligations of either party + +revealed the following; + +a) Absence of the opinion of the Attorney General + +Article 119(5) of the 1995 Constitution provides that the no agreement, contract, + +treaty, or document by whatever name called to which the Government is a party or in respect of which the Government has an interest, shall be concluded without + +the legal advice from the Attorney General. + +I noted that there was no evidence that the opinion of the Attorney General was sought prior to the execution of the agreement in question. In the case of Nsimbe Holdings VS Attorney General constitutional petition No.2 of 2006, it was ruled that + +the failure to secure such an opinion renders such a contract null and void and unenforceable in Uganda. + +b) Absence of provisions for monitoring performance of Obligations of the developer + +The following obligations were provided to the private company; + +i) + +Develop the industrial park covering 419 acres in three phases within a span + +of 5 years from the date of handover of the whole land free of any encumbrances; ii) + +Employ 12,000 local Ugandans during the 5 year period; iii) Attract 30 investors with a total investment of USD.600,000,000 in + +accordance with the business plan; iv) Provide performance security in the form of a bank guarantee or insurance bond equivalent to 10% of the value of the land as determined by the chief government valuer; + +v) Attract investment especially in agro-processing, food production, building + +materials, light industry, new energy among others; vi) + +Ensure that the investors in the park adhere to local content strategy so that + +by the end of 3 years, more than 30% of the raw materials should be locally + +sourced. They should demonstrate how by the end of the third year, 30% of + +the raw materials will be locally sourced; and vii) Establish a free zone on 200 acres out of the 619 acres allocated to the industrial park. + +It was established that there is no clear mechanism for monitoring and evaluating the terms and conditions of the contract. The status of the development of the park was not established. Audit observed that the Ministry had taken on tax obligations + +of different companies purportedly operating within the said industrial park with no evidence or mechanism to substantiate the validity of the implementation of the conditions of the contract. + +The absence of clear schedule of all the factories in the said park and a detailed follow up of the investments on the said land makes it difficult to confirm whether the parties are following the conditions of the agreement. + +21 + + + + + + + + + + + +c) Inconsistent provisions of the contract against the tax laws + +A review of the incentives provided by the Minister revealed discrepancies with the different laws under which the tax heads fall. The agreement allows for an indefinite carryforward of tax losses. The Minister, in offering indefinite benefit, obliges the Government to a commitment even if the tax regime changes. Section 38 of the Income Tax Act (as amended) gives several conditions for this benefit to + +be applicable but the same seem to have been ignored in the agreement. + +This makes the agreement inconsistent with the law and amounts to an excessive + +application of discretion by the Minister. + +d) Absence of performance security by the Second Party + +The private company was tasked with providing performance security in the form of + +a bank guarantee or insurance bond equivalent to 10% of the value of the land as determined by the chief government Valuer from a reputable bank or insurance + +company in Uganda. However, the following was noted; + + + +- It was noted that no performance bond was availed prior to the execution of + +the contract. This in effect left the Government exposed to losses as there was + +no protection availed to Government as per the contract; and + +- Audit also observed that the requirement in the agreement for a performance bond for a period of only 18 months was irregular since the implementation + +period for the agreement is 5 years. The bond will expire before the actual + +completion of the performance period. This exposes Government to non enjoyment of the benefits in the event of non-performance by the company. + +e) Absence of reporting obligations + +Review of the agreement revealed that there was no provision for the developer to + +prepare and furnish reports on the progress of developments in the park. + +The Accounting Officer indicated that MoFPED, together with the Ministry of Justice + +and Constitutional Affairs, will work on a framework to review the agreement to + +address the gaps identified. + +I await the outcome of government’s actions to ensure that the above anomalies + +are adequately addressed to mitigate the associated risks. + +2.1.12.4 Unclear selection criteria of Government MDAs for the Statutory Tax write off + +A review of the tax liability report from URA revealed that several government entities + +were still heavily indebted to the URA in spite of the provisions of the Act writing off the said liability. + +The Minister of Finance, however, directed the write off of UGX.129,251,695,838 to + +different government ministries. I was not availed with the criteria applied in selecting the + +MDAs to benefit from the said write-off. The action of selection of specific MDAs was also + +contrary to the law as it presupposes extra powers to the Minister to determine the + +22 + + + + + + + + + + + +beneficiaries, despite the fact that the law clearly issued a write-off to the entire government arrears to URA. + +I have advised government to either consider implementing the law in its entirety or + +initiate steps for amendment of the same, in the event it has encountered challenges in its execution. + +2.1.13 Public Debt 2.1.13.1 Public Debt Portfolio Analysis + +The reported total public debt as at 30 th June, 2020 stood at UGX.56,883bn of which + +Domestic Debt Stock was UGX.17,975bn and the External Debt Stock was valued at + +UGX.38,196bn. This is an increase of UGX.10,826bn equivalent to 23.5% when compared to the debt stock of UGX.46,057bn reported as at 30 th June 2019. The table below shows the details; + +Table 6: Showing trend of public debt over the years + +Financial year ended Domestic debt (UGX Bn) Foreign debt (UGX Bn) Total (UGX Bn) % change +June 2020 17,975 38,907 56,883 23.5% +June 2019 15,221 30,905 46,057 11.1% +June 2018 13,059 28,386 41,445 23.6% +June 2017 11,407 22,102 33,509 16% +June 2016 10,753 17,983 28,736 - + + + + +Source: Audited financial statements of Vote 130 + +From the above, I noted that there has been a consistent increase in the total debt as + +evidenced by an increase of 98% in the four years from 2015/2016 (UGX.28,736bn) to + +the financial year ended 30 th June 2020. Overall the domestic debt accounted for 32% while foreign debt accounted for 68% of the reported debt. + +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. + +I noted that, although external debt still under Grace Period (i.e. no payment of Principal amount) totalled UGX.23,197,023,493,608, representing 60% of disbursed External Debt, an amount of UGX.11,268,665,555,039, representing 49% of the debt under grace period, will require servicing for the first time in the FY2020/2021. + +In response, Management explained that the Public Debt had been growing in recent years due to the need to fund major infrastructure projects like Karuma, Isimba + +hydropower dams, and Entebbe Express highway among others. The need for extra borrowing to cover for both the revenue shortfalls and the arising expenditure needs was + +the main driver of the significant increase in debt in FY2019/2020. As Government + +continues to support economic recovery through the provision of the economic stimulus package to various sectors, debt is projected to increase further over the near term, but + +23 + + + + + + + + + + + +to reduce after three financial years, as the impact of the Covid-19 shock wanes, and the commercial production of oil starts. + +I advised the PS/ST to devise a comprehensive strategy to align revenue mobilisation and + +fiscal policy management, as well as reducing/rationalising government expenditures. + +2.1.13.2 Movement of Domestic Debt Stock + +Domestic debt portfolio is composed of long term borrowings (Treasury Bonds and Government Bonds) and short term borrowings (Treasury Bills and Government overdraft/temporary advances). + +The country’s domestic debt stock, which is mainly on Treasury Bonds and Treasury Bills, + +and un-securitised debt amounted to UGX.17,975bn as of 30 th June 2020 [2019: UGX.15,502bn]. + +Further analysis has revealed a corresponding increase in the net domestic financing with + +no redemption at all over the years. The table below shows the trends over the same period; + +Table 7: Showing trend of domestic debt stock over the years + +Details FY 2017/18 FY 2018/19 FY 2019/20 + UGX UGX UGX +Issuances (Bills & Bonds) 6,383,783,938,597 7,400,459,267,713 8,479,999,990,258 +Redemptions (Bills & Bonds) 4,588,264,322,892 5,236,650,535,490 5,908,742,271,615 +NET Domestic Financing 1,795,519,615,705 2,163,808,732,223 2,571,257,718,643 + + + + +From the above it can be deduced as follows; + +a) 75% of the Government borrowing is to service redemptions (rollover of debt) and + +this creates a high dependence on the market and thus increases interest rates and refinancing risk; and + +b) An increasing Net Domestic Financing (NDF) signals an increased government + +borrowing appetite, whereby, the market players are inclined to demand increased rates well aware of the fact that Government is in dire need to finance the budget. + +c) In addition, the commercial banks will prefer lending to government instead of the + +private sector thus affecting growth in the private sector. + +Management explained that to mitigate refinancing risk, there are deliberate efforts to + +issue more Treasury Bonds than Treasury Bills. This is evidenced by Treasury Bonds + +accounting for more than 70% of total domestic debt stock as Treasury Bonds allow for a + +more sustainable repayment profile. Furthermore, the increasing NDF levels and growth + +of the fiscal deficit are occasioned by Government’s deliberate effort to frontload infrastructure investment in the short and medium term. However, measures have been instituted to manage the cost of debt including; reduction of withholding tax on securities and Primary dealer reforms. + +Government should consider initiating steps to reverse this trend and ensure fiscal budget + +discipline and servicing a portion of maturing debt rather than rolling it over. + +24 + + + + + + + + + + + +2.1.13.3 Assessment of debt sustainability a) Debt to Gross Domestic Product (GDP) Ratio + +Debt to GDP ratios is a measure that compares what a country owes (total debt) and + +what it produces (manufactures or a service). The ratio reliably indicates a country’s + +ability to pay back its debt. A high debt-to-GDP ratio may make it more difficult for a country to pay both internal and external debts and may lead creditors to seek higher interest rates when lending due to the low credit rating of the country that pushes its lending risk high. + +Though the IMF has recommended 50% as the point of safety, many developed countries have gone up to 200%. However, according to the IMF, the developing + +countries are more prone to economic shocks and exchange rate risk, thus advising on a 50% threshold. + +A review of Uganda’s Debt to nominal GDP revealed a 7% increase from 35% last + +year to 41% in the year under review. + +From the above, it can be seen that though Uganda’s GDP has been increasing over the years since 2013/14, its debt position has also increased. The rate of increase of + +debt is higher than the rate of increment in the GDP levels, which creates a risk of reaching the unsustainable levels sooner than later. + +This has begun to translate into higher cost of borrowing which may deny future + +generations the opportunity to sustainably borrow. + +In response, Management indicated that the following measures will be pursued to slow down debt accumulation and promote its sustainability; + +i) Operationalisation of the medium-term Domestic Revenue Mobilisation Strategy + +aimed at increasing domestic revenue which would then reduce the country’s + +gross financing needs. This targets to increase the ration of domestic revenue to + +GDP by 0.5 percentage points per annum; + +ii) Enhance efforts towards Export promotion and import substitution so as to increase foreign currency inflows and reduce the outflows. External debt accounts for more than half of our debt stock and we require foreign currency to meet this obligation when due; + +iii) Sequencing projects, with priority given to those generating a bigger growth dividend. In addition, Government will also continue to enhance project execution by fully implementing the reforms under the Public Investment Management Strategy (PIMS), for timely realisation of their benefits and subsequently their impact on the economy; + +iv) Limiting domestic borrowing to not more than 1 percent of GDP in the medium + +term; and + +v) + +Additionally, there are measures to reduce the cost of domestic debt which leads to a reduction in interest expenditure. These include; reduction of withholding + +tax on Government securities, Primary dealer reforms, sensitisation drives to + +25 + + + + + + + + + + + +widen the investor base and introduction of a mobile platform for investment in Government securities. + +I await the outcomes of the timely implementation of the above measures. + +b) Interest to Total revenue ratio + +This benchmark shows the proportion of Government revenue that goes into + +servicing interest costs. The table below shows the assessment of the benchmark over the years. + +Table 8: Showing interest to revenue benchmark over the years + +Financial year Total domestic Revenue - UGX Total Interest - UGX % of Interest to revenue Benchmark +2019/20 17,305,555,968,747 2,369,065,345,575 13.69 < 12.5 +2018/19 17,128,743,726,614 2,005,380,900,988 11.71 < 12.5 +2017/18 15,219,588,786,381 1,937,424,879,060 12.73 < 12.5 + + + + +The interest to revenue benchmark has been breached as evidenced above. Almost + +14% of the revenue being collected is going into servicing interest payments. This is + +gradually reducing the funds available for funding other critical government expenditures. + +In response, management explained that Government was working on enhancing revenues through the Domestic Revenue Mobilization Strategy. + +I advised the PS/ST to devise strategies of reducing the growth of interest + +expenditures while expanding revenue mobilisation. + +c) Uganda’s outlook on Long-Term Foreign-Currency Issuer Default Rating (IDR) revised from stable to negative + +The public debt and other financial liabilities management framework FY2018/2019- + +FY2022/2023 provides that the Government of Uganda will be cognizant of the Fitch Sovereign Credit rating under the Debt Sustainability Analysis framework. Fitch credit + +rating is used by sovereign wealth funds, pension funds and other investors to gauge the creditworthiness of a country and thus having a big impact on the country's borrowing costs. + +I reviewed the Fitch credit rating issued on 24 th June 2020 and noted that Uganda’s Long-Term Foreign-Currency Issuer Default Rating (IDR) outlook was revised from stable to negative on account of the decrease in revenue sources and the coronavirus shock amid a continued build-up of government public debt. Refer to + +the table below; + +SN Fitch factors for the negative score +1 Failure by the Government to slow the build-up of government debt and narrow fiscal deficits after the coronavirus shock +2 Weakening of Uganda’s ability to attract long term financing to cover her budget. +3 Widening of the fiscal deficit and increase in the government debt/GDP, i.e. a fall in + + + + +26 + + + + + + + + + + + + domestic revenue mobilisation while increasing government expenditure. +4 A widening in the current account deficit, i.e a fall in export performance. + + + + +A fall in the credit rating outlook is likely to make borrowing more expensive both for current and future loans. + +Management explained that to mitigate this, Government was prioritising projects whose financing is from the Multilateral and Bilateral partners and whose interest rates are not tagged to the market ratings of sovereigns but on a concessional term + +with grant elements on their financing. Furthermore, on the current Commercial borrowing, government has engaged Development Financial Institutions (DFI’s) to + +get acceptable rates which are not much affected by the market ratings. + +I advised management to exercise prudence in its expenditure by reducing on borrowings to finance budget support and further widening the tax base. + +2.1.13.4 Increased Commercial Bank Borrowing with non-fixed interest rates- UGX.2,806,000,504,924 + +The Medium Term Debt Management Strategy (MTDs) for the FY 2019/2020 provides that in the medium term, Government shall continue to prioritise concessional financing + +as the preferred means of meeting its financial and development requirements. The MTDs + +defines concessional loans as loans extended on terms substantially more generous than + +market loans. Concessionality is achieved either through interest rates below those + +available on the market or by longer grace periods, or a combination of these. + +I reviewed the government debt composition for the past three financial years from FY + +2017/2018 to 2019/2020 and I observed that Government’s debt appetite was heavily + +moving to non-concessional loans such as loans from Commercial Banks. I observed that + +loans from Commercial banks that are non-concessional grew from UGX.192,626,916,387 + +to UGX.2,806,000,504,924, representing a 1357% spike over the past three financial years. It was noted that the contracted loans had very short repayment periods as compared to concessional loans that attract a minimum of 30 years. I further noted that the interest rates from the commercial banks were floating, pegged to the Euribor rate + +plus a premium. + +Contracting debt at non-concessional terms has exposed the Government to high-interest rates and refinancing risk. It should be noted that 82% (UGX.2.8tn) of this amount was + +used for budget support and not infrastructure development as laid down in the strategy. + +I informed management that there is a risk that in the near future, revenue collections from URA may not be sufficient to fund government priorities but only settle interest and + +principal debt. + +In response, management explained that the implementation of MTDS of FY2019/2020 + +was affected by the revenue shortfall during the financial year and the response to social- + +economic impact of the Covid-19 pandemic. This led to changes in the underlying macro- economic assumptions used in the MTDS for FY 2019/2020. With the stabilisation of the economy when the pandemic wanes, the continuous implementation of the DRM, and the + +expected oil revenues, the future MTDS instruments will have less of commercial + +27 + + + + + + + + + + + +borrowing plus exploring new financing options that will be enshrined in the GoU + +Financing strategy. + +I advised Government to focus on reducing fiscal expenditure during periods of revenue + +under collection. + +2.1.13.5 Under absorption of loans + +A review of the loan disbursements revealed that several loans worth UGX.1.3 trillion + +appeared to be performing poorly, with some nearing expiry, while others reached the closing date without fully disbursing. Such low levels of performance undermine the attainment of planned development targets and render commitment charges paid in respect of undisbursed funds nugatory. + +I noted that a total of EURO.2,211,284.7 (approx. UGX.9,241,334,679) has so far been + +paid in respect of three loans as commitment fees for the undisbursed funds. Management explained that there have been considerable efforts by this Ministry to ensure that absorption is improved. + +I advised the Accounting Officer to identify and resolve any bottlenecks hindering the + +smooth implementation of Government projects. + +2.1.13.6 Increasing loan contracts with stringent terms and conditions + +The doctrine of foreign sovereign immunity provides that a foreign state generally is immune from the jurisdiction of the courts of another sovereign state. State immunity + +developed as an “undisputed principle of customary international law” and the law of nations based upon core aspects of sovereignty applicable in common law, civil law and + +other judicial systems. Under international Law, the waiver of immunity is acceptable but must be exercised with extreme caution. It is also important that every state comes up + +with clear guidelines and policies regarding the waiver of the state immunity and the extent of such waiver. + +A review of the new loan agreements being signed by the GOU and different lenders indicates an increased waiver of immunity by the Minister of Finance with regards to the + +assets and property of Uganda within and outside Uganda. GOU irrevocably and + +unconditionally agreed to waive immunity over Uganda or its properties to which it or + +may become entitled to at any time whether under sovereign immunity or otherwise from any suit, jurisdiction of any arbitral institution or arbitral tribunal, judgment, arbitral award, service of process upon it or any agent, execution on judgment, enforcement of arbitral award, set-off, attachment prior to judgment, attachment in aid of execution to which it or its assets may be entitled in any legal action or proceedings or arbitral proceedings with respect to this agreement or any of the transactions contemplated. + +Whereas the waivers of immunity form a major part of international business to protect + +lenders, there is need to exercise this function judiciously taking into considerations the general objective to protect and preserve public property of Uganda contained in + +Objective XXV of the national objectives and directive principles of state policy under the 1995 Constitution of the Republic of Uganda. This matter was also raised in my previous + +audit report but has not been actioned by government. + +28 + + + + + + + + + + + +Management in response indicated that there are ongoing discussions with the respective financiers and consensus was reached on certain conditions such as advance of the 15% + +counterpart funding, insurance premium payment modality. However, the financiers + +insisted on retaining some conditions in the agreements and assured Government that although the condition are in the agreement, they have never been applied in any Country and that they do not think that it will ever be applied to any Country as the agreement allows for mutual agreements before any dispute is tabled before court. + +I advised the Accounting Officer to continue engaging the financiers and the Attorney + +General to have these terms further reviewed. + +2.1.13.7 Failure to Manage Risks associated with Cross currency Borrowing + +It is good practice that the Treasury puts in place systems and controls that should + +ensure that financial losses resulting from foreign currency borrowing are avoided or + +minimised as much as possible. For example, if Government secures a loan in a foreign + +currency and the lender dictates the contractor to implement project works - as is the case with several new loans, it is only prudent that the turnkey agreements signed by + +Government with the contractor should be denominated in the loan currency to avoid + +financial loss. + +A case in point was an exchange loss UGX.516,266,428 incurred under the Turnkey contractor for National Backbone Infrastructure Project (NBI/EGI) Phase 3). My reviews revealed that the cause of the additional payment resulted from the Turnkey agreement signed with the Contractor being denominated in USD currency while the loan agreement between GOU and Exim Bank was in the Chinese Yuan (RMB). This resulted into an exchange rate loss of USD.261,760 that the contractor did not want to incur. + +I advised management to put in place robust risk management policies to curb financial + +losses resulting from cross-currency transaction risks. + +2.1.14 Operations of Boards in Government Entities + +The appointment of different boards in the different sectors is made by different ministers in the various sectors, in line with the laws establishing them. Although the various laws + +define the specifications and qualifications for one to be appointed on the board, they do not provide clear guidelines on the criteria to be adopted by the Ministers to identify the competent persons to be put on these boards. + +There was also no harmonised position for the performance evaluation and rates of + +emoluments to be paid to the different boards, and as such, many boards have gone unassessed while the rates and types of emoluments paid keep varying across sectors. In addition, some boards have lasted for more than 15 years while others are involved in the day to day management of the entities. + +The risk associated with this discretionary power is that it can be abused for selfish reasons.The absence of clear accountability frameworks has resulted in the different + +boards being mismanaged and in many of the commercial companies, losses are + +constantly reported. It was also noted that several board decisions over human resources + +29 + + + + + + + + + + + +are in conflict with the Public service Standing Orders and yet the constitution defines + +public service to mean service in a civil capacity of Government or of a local government. + +In response, management indicated that independent evaluations are being done by the Institutions and through the annual audits. However, the Ministry is preparing Guidelines + +for all Ministries to follow in the Board processes for appointment, appraisal to inform renewal/non-renewal and the conduct of the Board in daily operations of the Institution. + +These Guidelines are expected to be issued effective FY 2020/2021. + +I await the outcome of the implementation of the new guidelines and I advise them to explore creating an independent body for recruitments of board members as is best practice. + +2.1.15 Financing of Deemed Energy + +a) Treasury-financed deemed energy payments to Achwa River Energy Project (ARPE) (41 MW) – UGX.64.69bn + +I noted that the deemed energy claims by Achwa River Energy Project (ARPE) during the financial year had accumulated to UGX.64.69bn for which, only + +UGX.10.33bn was released by MoFPED through the MEMD leaving unpaid claims of UGX.54.36bn. + +These claims are as a result of the inadequate transmission infrastructure to + +evacuate the power from the dam. The evacuation lines, though financed under the + +project, have not been completed due to delayed payments of Project Affected persons due to either inadequate funding or unsettled compensation disputes in + +court. This costs government in terms of delayed energising of the power lines, and + +the failure by the project to deliver on its objectives. + +In addition, the levels of loan disbursement and utilisation is very low leading to + +substantial outstanding loan amounts not disbursed leading extra charge to government in terms of commitment fees. + +Furthermore, government loses more monies in keeping the Owners Engineer on + +site for the extended project period due to non-availability of the project land by government. As a result, government has implemented short-term measures, such as construction of emergency double circuit power evacuation line at an additional + +cost to the project of about UGX.34bn, which cannot effectively handle the dam’s + +production capacity. + +In response, management explained that the construction of the permanent + +solution 132kV line, is slated to start before the close of FY 2020/2021. UETCL held Negotiations with the best evaluated bidder for substations and transmission line + +lots. A draft contract has submitted to KfW for a No objection. Upon receipt of no + +objection from KfW, award and Contract signature for the various lots will happen. This is expected to happen in January 2021. The level of loan disbursement is expected to improve once the Contractor starts works start and invoicing. + +30 + + + + + + + + + + + +b) Tariff-financed deemed energy payments to mini-hydro plants – UGX.46.1 bn + +UETCL incurred deemed energy payments amounting to USD.5,964,592.18 (UGX.22.2bn) and USD.6,425,017.89 (UGX.23.9bn) in the FYs 2018/2019 and + +2019/2020, respectively. These amounts were approved through the tariff structure + +by the Electricity Regulatory Authority (ERA). These payments were attributed to + +inadequate transmission infrastructure, line outages and insufficient demand in some instances. + +As at 30 th June, 2020, the cumulative outstanding amount of deemed energy was + +UGX.110.79bn, which is unsustainable and may cause a significant strain on + +government resources if not passed through the tariff system. In addition, deemed energy charged through the tariff negatively impacts consumer prices, which may be a hindrance to electricity demand. + +Government through the Regulator has not allowed these payments to pass + +through the tariff system nor has it pronounced itself on their settlement. + +Management in response, attributed the cause of deemed energy is mainly due to + +lack of demand in the local areas and weak distribution infrastructure to evacuate the excess energy from the embedded power generators to load centers. + +Further, management indicated that; + +- Government through UETCL is extending the national grid to some of the areas + + + +like Mbale, Kabale, Northern Uganda and Western Uganda to stimulate demand + +and also evacuate excess energy from the existing and upcoming mini-hydro power plants; + +- There is a policy direction to stop the inclusion of deemed energy clauses in the new Power Purchase Agreements; and that +- The ERA is also putting in place measures through wheeling agreements between UETCL and the power distributors to ensure grid availability on the part of the distributors so as to minimise deemed energy costs., on account of grid non-availability. + +I await the outcome of these interventions. In the meantime I advised Management at MEMD and UETCL to liaise with the relevant stakeholders such as MoFPED and Development Partners to ensure that adequate funds are provided for construction + +of appropriate transmission infrastructure to evacuate any amount of power + +generated. In addition, the deemed energy liability incurred should be settled + +without further delay. + +Other Information + +The Accounting Officer is responsible for the other information. The other information comprises the statement of responsibilities, a statement from the Hon. Minister of Finance, Planning and Economic Development, a statement from the Secretary to the Treasury, a statement from the + +Accountant General, and other supplementary information. The other information does not include the financial statements and my auditors’ report thereon. + +31 + + + + + + + + + + + +My opinion on the financial statements does not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon. + +In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially consistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information; I am required to report that fact. I have nothing to report in this regard. + +Responsibilities of Management for the Consolidated Financial Statements + +Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 + +of the Public Finance Management Act, 2015 (as amended), the Accounting Officers are accountable to Parliament for the funds and resources of the Government of Uganda. + +The Accountant General is appointed as the Accounting Officer and Receiver of Revenue for the Consolidated Fund. The Accountant General is therefore responsible for the preparation of financial statements in accordance with the requirements of the Public Finance Management Act 2015, and the Financial Reporting Guide, 2018, and for such internal control as management determines is + +necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. + +In preparing the financial statements, the Accountant General is responsible for assessing the Government’s ability to continue delivering its mandate, disclosing, as applicable, matters related to affecting the delivery of the mandate of the Government of Uganda, and using the Financial Reporting Guide 2018 unless the Accountant General has a realistic alternative to the contrary. + +The Accountant General is responsible for overseeing the Government’s financial reporting process. + +Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements + +My objectives are to obtain reasonable assurance about whether the consolidated financial statements of government as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAIs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. + +As part of an audit in accordance with ISSAIs, I exercise professional judgment and maintain + +professional scepticism throughout the audit. I also; + + + +- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. + +32 + + + + + + + + + + + +- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the government’s internal control. + + + + + +- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. + +- Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the government’s ability to deliver its mandate. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such + + + +disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions + +may cause the government to fail to deliver its mandate. + +- Evaluate the overall presentation, structure, and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves a fair presentation. + + + +I communicate with the Accounting Officer regarding, among other matters, the planned scope and + +timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. + +I also provide the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with him/her all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. + +From the matters communicated with the Accounting Officer, I determine those matters that were + +of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation + +precludes public disclosure about the matter or when, in extremely rare circumstances, I determine + +that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. + +Other Reporting Responsibilities + +In accordance with Section 19(1) of the National Audit Act (NAA), 2008, I report to you, based on my work described on the audit of the GoU Consolidated Financial Statements that; except for the matters raised in the compliance with legislation section below, and whose effect has been + +considered in forming my opinion on the GoU consolidated financial statements, the activities, + +financial transactions and information reflected in the consolidated financial statements that have come to my notice during the audit, are in all material respects, in compliance with the authorities which govern them. + +33 + + + + + + + + + + + +Report on the Audit of Compliance with Legislation + +The material findings in respect of the compliance criteria for the applicable subject matters are as follows; + +2.1.16 Management of the Government of Uganda’s fleet + +Over the years, there has been increasing demand for accountability and better + +management of public resources by various stakeholders in Uganda. Management of government vehicles (Fleet management) is faced with a number of challenges, such as: inability to respond to national emergencies, like COVID 19; inability to support the delivery + +of public service by government entities; high government expenditure on purchase of vehicles; misuse of government vehicles; inaccurate vehicle management records; and a general lack of a comprehensive and standard government fleet management policy. + +Subsequently, I developed procedures in order to assess the adequacy of government fleet + +management system in the delivery of public service, and to identify any impediments and + +make recommendations for improvement. Specifically, the audit was intended to ascertain + +whether government Vehicles were/are; + +- Acquired in compliance with Government vehicle acquisition guidelines; +- Comprehensively recorded in the assets register to ensure their proper management; +- Adequately allocated, operated and utilised to enable delivery of public service; +- Properly and regularly maintained to achieve optimal performance, increased useful lives and reduced running costs; and +- Disposed in compliance with Public Procurement and Disposal of Public Assets (PPDA) guidelines, and disposal proceeds are properly accounted for. + + + +I sampled fifty (50) Central government entities including 14 ministries, 11 regional referral + +hospitals and 25 authorities/agencies, and developed procedures in order to assess the adequacy of government fleet management system in the delivery of public service, and to + +identify any impediments and make recommendations for improvement. The study covered + +three (3) financial years: 2017/18-2019/20. + +36 of the 50 selected entities planned to spend UGX.187.1Bn on acquisition of vehicles from government funding over the three years. A sum of UGX.177.1Bn (95%) was + +received for the purpose, and the entities spent a total of UGX.176Bn (99%) to acquire 677 vehicles. + +In the same period, the entities received UGX.52.0Bn from donors and spent a total of UGX.38.9Bn (75%) to acquire an additional 202 vehicles. + +Below is a summary of the key findings I noted, the details of which are included in individual reports issued separately; + +a) A review of 554 vehicles procured by the sampled entities revealed that (424) + +vehicles (77%) procured at a total cost of UGX.82.1bn were in line with the approved + +engine capacities, while 130 (23%) vehicles (including 10 cleared by MoPS) procured + +at a cost of UGX.33.9bn had engine capacities higher than the recommended limits. + +34 + + + + + + + + + + + +This may result into unnecessary increases in fuel and maintenance costs due to the + +operation of a fleet with excessive engine capacities. + +b) + +Furthermore, I observed that 38 entities (76.0%) out of the 50 entities did not have a specific policy or guidelines on Motor vehicle management to guide the usage and eliminate theft, losses, wastage and misuse of motor vehicles. This was in addition to + +the absence of a comprehensive standardized fleet management policy of Government. Different aspects of government vehicles management are found in different policies and guidelines cited in various government documents, such as; the Uganda Public Service Standing Orders 2010, the Public Procurement and Disposal Act, 2014, and Treasury Instructions, 2017. This affects the entities’ ability to address the unique motor vehicle management challenges which may not be + +envisaged in the standing Orders and Treasury Instructions. + +c) + +A review of the vehicle allocation to key service units or departments in the selected + +entities revealed that 27 (54%) out of 50 entities were not adequately allocated + +vehicles. This affects the supervision and monitoring efforts of the entity + +departments/units, thus affecting the level of service delivery in regard to execution of entity mandates. + +Furthermore, a review of a sample of 512 out of 709 vehicles allocated to entitled categories of officers under the Public Service Standing Orders in 17 entities revealed + +that 70 (14%) of the vehicles were beyond the recommended/prescribed engine + +capacities to those categories of staff. I further noted that vehicles which were allocated to officials in Government Agencies, such as; Rural Electrification Agency + +and NAADs, did not follow the entitled officers criteria, and as a result, I could not confirm whether the vehicles were within the recommended type of vehicle and + +engine capacities since the categories of the officials in those Agencies were not covered under the Public Service Circular Standing Instructions on standardization of vehicles for Ministers, other entitled officers and Projects. + +d) I noted that 33 of the selected entities holding a total of 4,979 vehicles spent UGX.123.4bn on vehicle maintenance, and had an increment of 35.3% of the + +average total maintenance costs per vehicle over the 3 year period. The increasing + +maintenance costs were attributed to the ageing fleet. For example, 1,794 vehicles (55%) out of 3,234 vehicles held by 27 entities had exceeded the recommended 5 years useful life or had their mileage above the recommended 250,000km. + +I have advised that there is need for Government, to undertake a comprehensive review + +of the current public service vehicle standardization guidelines with a view of enhancing efficiency. + +2.1.17 Continued Expenditure off the Integrated Financial Management System (IFMS) – UGX.285,320,310,509 + +The government of Uganda introduced the IFMS with a core objective of ensuring accurate, reliable and complete financial information for Government Ministries, Departments, Agencies and Local Authorities as well as an increase in the transparency of + +public spending. + +35 + + + + + + + + + + + +From a sample of ministries, I observed that several entities still send huge block figures + +outside the system after charging expenditure codes on the system yet the ultimate + +expenditure cannot be restricted to what was charged. It was also noted that a number + +of entities post these funds to commercial bank accounts a practice that was stopped many years back. + +In response, Management explained that IFMS is now fully operational in 111 Central Governments (CG) (99%) except for UNOC and URA and 156 Local Governments (LG) + +(89%) except for 19 Districts still operating a Hybrid form of IFMS. Whereas all votes on + +IFMS spend on the system, there are scenarios where use of a commercial bank is necessary. However, even in these cases, the transfer of funds to the commercial bank is on IFMS, requiring a description of what these funds are for. + +I advised the Accountant General to review the scenarios under which expenditure off the IFMS is accepted with a view of mitigating against potential misuse. + +John F.S. Muwanga + +AUDITOR GENERAL + +23 rd February, 2021 + +36 + + + + + + + + + + + +2.2 + +REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA CONSOLIDATED FINANCIAL STATEMENTS OF THE LOCAL GOVERNMENTS FOR THE YEAR ENDED 30 TH JUNE 2020 + +THE RT. HON. SPEAKER OF PARLIAMENT Opinion + +I have audited the accompanying consolidated financial statements of Local Governments, which comprise the Consolidated Statement of Financial Position as at 30 th June 2020, the Consolidated Statement of Financial Performance, the Consolidated Statement of Changes in Equity, the + +Consolidated Statement of Cash Flows, together with other accompanying Consolidated statements for the year then ended, and notes to the Consolidated financial statements, including a summary + +of significant accounting policies. + +In my opinion, the consolidated financial statements of Local Governments for the year ended 30 th June, 2020 are prepared in all material respects, in accordance with section 51 of the Public Finance Management Act (PFMA) 2015 (as amended) and the Financial Reporting Guide, 2018. + +Basis for Opinion + +I conducted my audit in accordance with International Standards of Supreme Audit Institutions + +(ISSAIs). My responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the Financial Statements section of my report. I am independent of + +the Local Governments in accordance with the Constitution of the Republic of Uganda (1995) as amended, the National Audit Act, 2008, the International Organisation of Supreme Audit Institutions (INTOSAI) Code of Ethics, the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) and other independence requirements applicable to performing audits of Financial Statements in Uganda. I have fulfilled my ethical responsibilities in + +accordance with the other requirements and the IESBA Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. + +Key Audit Matters + +Key audit matters are those matters that, in my professional judgment, were of most significance in + +my audit of the consolidated financial statements of the current period. These matters were + +addressed in the context of my audit of the consolidated financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters. The detailed findings for each of these matters are reported in the individual reports. + +I have determined the matter described below as the key audit matter to be communicated in my report. + +2.2.1 Implementation of the approved budget + +Every year, Government plans and allocates funds to Local Governments for implementation + +of activities that would enable the country to attain sustainable development. I observed + +that Local Governments have challenges with regard to implementation of planned activities, + +which negatively affects service delivery and improvement of the people’s wellbeing. As a + +37 + + + + + + + + + + + +result, the implementation of the approved budget was considered a key audit matter and during the office-wide planning, I identified risks common with Local Governments which include; underperformance of revenue, under absorption of funds, partial and non- implementation of outputs. + +I consequently developed procedures to address the above risks and also assess the + +performance of the entities in the implementation of the approved budget of 2019/20. + +A review of the consolidated financial statements and accompanying schedules revealed that the consolidated Local Governments had an approved budget of UGX.4,859,426,310,851, + +out of which UGX.4,175,066,886,410 was warranted/ availed by the end of the financial + +year. The total expenditure for the year was UGX.3,964,053,230,270 out of which UGX.2,830,892,426,465 3 (71%) was spent on employee costs and transfers to other units while UGX.1,133,160,803,805 was available for direct implementation of service delivery outputs. + +The outbreak of the Covid-19 Pandemic affected the implementation of the 2019/2020 budget for a number of entities especially implementation of activities in the last half of the financial year. A number of activities were not implemented as a result of budget cuts and the lock down measures instituted to control the spread of the pandemic. + +From my review I noted the following; + +No Observation Recommendation +i. Performance of receipts/revenue for local GovernmentsThe local Governments budgeted to receive UGX.4,859,426,310,851 (revised) as total revenue. I noted that, UGX.4,175,066,886,410 was warranted/ received representing 86% performance. Under release of funds results in non-implementation of planned activities.The MoFPED noted the shortcoming and explained that Government of Uganda (GoU) operates a Cash budget based on actual revenue collections as a basis for release of funds to Votes and that the under release of funds was due to inadequate revenue inflows given the economic conditions and effects of Covid-19 during the last half of financial year 2019/20. He further pledged to roll over to the affected activities to following financial year as it is usually the case. The MoFPED was advised to ensure that they make good the funding shortage. +ii. Absorption of fundsOut of the total receipts for the financial year of UGX.4,175,066,886,410, UGX.3,964,053,230,270 (95%) was spent by the entities resulting in an unspent balance of UGX.211,013,656,140 (05%). The unspent balance at the end of the financial year was subsequently swept back to the I advised the Accounting Officers to ensure that funds for these activities are rolled over and subsequently ensure the + + + + +38 + + + + + + + + + + + + consolidated fund account.Under absorption of released funds results in non- implementation of planned activities and negates the purpose for which funds were disbursed. For example, implementation of USMID projects in benefiting Municipal Councils were not undertaken during the year. speedy implementation of the affected activities. +iii. Off-budget financing56 of the 175 audited entities received off budget financing amounting to UGX.48.8bn representing 3% of the total approved budgets of these (56) entities.These funds were never transferred to the UCF contrary to the PFMA. Similarly, the funds were never included in the budgets of the Local Governments for appropriation by respective councils.Off-budget financing was attributed to challenges in in-putting all these sources of financing into the PBS system, and capacity gaps within the planning units of the entities. Non remittance of off budget funds is contrary to the law and may also result in duplication of activities. I advised Government to ensure that all funds included in the PBS and appropriated by Parliament and expenditure of such funds follows the government financial system. +iv. Quantification of outputsOut of a total of 2,645 out puts worth UGX.683bn sampled for assessment in the 189 entities, I assessed the extent of quantification of these out-puts. I noted that 1,933 outputs (73%) worth UGX.439bn were fully quantified, 216 outputs (8%) worth UGX.90bn were partially quantified while 496 out puts (19%) worth UGX.154bn were not quantified at all as detailed in the table below;Extent of quantification of outputsCategory No. % per Amount UGX.(Bn) Fully Quantified 1933 73 439 Partially Quantified216 8 90Not quantified 496 19 154 Total Sampled 2645 100 683Failure to fully quantify out-puts was attributed to absence of Monitoring and Evaluation (M&E) functions to review work plans and the information entered in the PBS by the planners. In some cases, planners were not conversant with the PBS system and needed training while some entities lacked planners. Non quantification of outputs/activities makes it difficult to assess the extent to which the entities have undertaken the implementation of the planned activities. Government is advised to address the challenges such as limitations of the PBS tool, lack of M & E officers so that planned out-puts are sufficiently quantified. + + + + + + +v. Implementation of Quantified outputs I advised Government to ensure that activities + + + + +39 + + + + + + + + + + + + Out of a total of 1,933 quantified out-puts worth UGX.439bn assessed, 1,206 (62%) outputs worth UGX.211bn were fully implemented, 581 out puts (30%) worth UGX.220bn were partially implemented, while 146 outputs (8%) worth UGX.8bn were not implemented at all as summarised in the table below.Extent of implementation of quantified outputsCategory No. % per Amount UGX.(Bn) 1,206 62 211 Fully Implemented 581 30 220 Partially Implemented 146 8 8 Not Implemented 1,933 100 439 Total SampledFigure 2: Extent of implementation of planned activitiesPartial and non-implementation of activities/outputs was attributed to unrealistic targets that are not based on past experience, inadequate funding, poor contract management practices, burden of settling domestic arrears and change of priorities without corresponding availability of resources. Partial and non-implementation of activities denies the beneficiaries services.The outbreak of the Covid-19 pandemic affected the implementation of the 2019/2020 budget, especially activities in the last half of the financial year. As a result, a number of activities were not implemented due to budget cuts and lockdown measures instituted to control the spread of the pandemic.62%30%8%Fully ImplementedPartially implementedNot Implemented that were not fully implemented are rolled over to the subsequent financial years for implementation. +Category +Fully Implemented +Partially Implemented +Not Implemented +Total Sampled +Figure 2: Extent of implementation of planned activitiesPartial and non-implementation of activities/outputs was attributed to unrealistic targets that are not based on past experience, inadequate funding, poor contract management practices, burden of settling domestic arrears and change of priorities without corresponding availability of resources. Partial and non-implementation of activities denies the beneficiaries services.The outbreak of the Covid-19 pandemic affected the implementation of the 2019/2020 budget, especially activities in the last half of the financial year. As a result, a number of activities were not implemented due to budget cuts and lockdown measures instituted to control the spread of the pandemic.62%30%8%Fully ImplementedPartially implementedNot Implemented + + + + +2.2.2 Management of Covid -19 Interventions + +In the wake of the Covid-19 pandemic coupled with Government’s imposed restrictions to + +combat the spread of the disease, this greatly reduced the economic activity in the country + +which impacted on the cash flow collections by URA. + +Parliament of Uganda approved a supplementary budget of UGX.284bn for multi sectoral interventions, to enable the Government respond to and manage the Covid-19 pandemic. Out of these funds as sum of UGX.22bn was disbursed by Treasury to 134 districts for the purpose during the financial year 2019/2020. + +40 + + + + + + + + + + + +I undertook an audit of these funds in 134 districts and below is a summary of the key findings, the details of which are included in individual reports issued separately; + +SN Observation Recommendation +i Cash donations utilised at sourceParagraph 1(a) of the Guidelines for management of Covid-19 response fund donations issued by the PSST to all accounting officers (on the 28th April, 2020) states that all cash contributions shall be banked directly by the donors on the national collection account.Contrary to the PS/ST’s guidance, UGX.0.85bn (15%) out of UGX.5.61bn total cash donations was utilised at source in 56 entities. The balance of UGX.4.758bn was banked on designated accounts of the entities as guided by the PS/ST.The failure to bank the cash exposes the funds to the risk of loss and misuse.The Accounting Officers explained that the use of cash received at source was due to the need to respond expeditiously to the emergencies occasioned by the pandemic and the lockdown measures instituted by government. I advised Accounting Officers to adhere to the PS/ST’s guidelines on banking of cash even during times of emergency. +ii Quantification and Implementation of planned activitiesParagraph 55 of the budget execution circular for the financial year 2019/2020 states that the Accounting Officer is required to submit quarterly performance reports by the 30 th day of the first month of the following quarter. These reports should clearly indicate the actual performance against the planned outputs and performance for each quarter, showing the quantity/quality and physical location of the reported outputs against expenditureOut of 134 entities analysed, 133 (99%) entities had work plans with a total of 3,113 activities. Out of these, 2,936 activities were fully quantified while 177 (5.7%) activities were not sufficiently quantified, which hindered me from assessing the extent of achievement of the activities.Failure to quantify activities creates ambiguities in allocation of funds and budget slack which can be exploited to divert funds.Out of the 2,936 quantified activities, 2,819 (96%) activities were fully implemented while 93 (3%) were partially implemented and 33 (1%) were not implemented at all.The failure to implement planned activities implies that the expected services were not received by the beneficiaries. I advised the Accounting Officers to ensure that activities in the work-plans are comprehensively quantified to justify funding, support implementation of the work-plans by having clear and verifiable targets and to enable assessment of management’s performance. + + + + +41 + + + + + + + + + + + + The Accounting Officers attributed this to the nature of some of the activities that were difficult to quantify, as well as poor planning and budgeting practises within the votes. +iii Compliance with Procurement regulationsParagraph 5 of the guidelines issued by the PS/ST on the receipt and accountability for donations for Covid-19 requires accounting officers to follow PPDA regulations which guide on how procurements should be undertaken under emergency conditions.A total of 20 entities undertook procurements worth UGX.2.95bn without fully adhering to the procurement rules and regulations. Some of the anomalies observed included: irregular use of direct procurements, procurements without signed contracts, late delivery of goods, payments before receiving goods and failure to involve the contracts committee.Non-compliance with the procurement regulations exposes public funds to misuse and impairs the achievement of value for money.The Accounting Officers attributed this to the emergency nature of the procurements given the prevailing circumstances. I advised the Accounting Officers to adhere to the procurement guidelines even in cases of emergencies. +iv Unaccounted for fundsParagraph 10.10.1 of the Treasury Instructions 2017 provides that all payments must be adequately supported with sufficient details to enable them to be checked without reference to other documents. 559,150,599UGX.559,150,500 disbursed to 15 entities remained unaccounted for at the time of audit. I could not establish whether the funds were put to proper use.The failure to account for the funds was attributed to the peculiar circumstances of the pandemic and lockdown measures which affected the operations of the entities and thus the ability to prepare and present the accountabilities. I advised the Accounting Officers to follow up on all pending accountabilities failure of which the funds should be recovered. +v Valuation of donations in KindParagraph 15.5.1 of the Treasury Instructions 2017 states that inventories are accounted for by value as well as by quantity, and it is necessary for an Accounting Officer to keep records so as to determine the unit cost of each inventory item and the reconciliation of the total value of the stocks of inventories with the financial records. The PS/ST also guided that all items received in kind should be taken on charge, distributed with the approval of the Covid-19 task force and appropriately accounted for. I advised the Accounting Officers to adhere to the guidelines regarding the management and distribution of government inventories and in future develop alternative accountability mechanisms in unique situations. + + + + +42 + + + + + + + + + + + + 90 (69%) out of 130 entities that received donations in kind did not undertake valuations contrary to paragraph 15.5.1 of the Treasury Instructions, 2017 while 69 (51%) entities did not record the donated items in the stores. This resulted into misstatement of financial statement balances.The failure to adhere to the guidelines on donations was attributed capacity gaps within entities such as inadequate staff, the emergency nature of the activities during the lockdown, and the need to adhere to ministry of health SOPs in regard to the spread of the virus. +vi Management of Quarantine CentresA total of 43 entities faced challenges in the management and operation of quarantine centres under their charge. The challenges faced included: insufficient PPEs, lack of necessary staff at the quarantine centres, failure to provide basic utilities such as water and power and non-utilisation of the quarantine centres.This may have hampered Government efforts towards the containment of the spread of the pandemic.The Accounting Officers explained that the failure to properly manage the quarantine centres was due to inadequate funding for the acquisition of supplies including PPEs, lack of trained staff to manage the centres, and space constraints. I advised that accounting officers to put in place contingency plans should such emergencies re-occur. +vii Diversion of fundsRegulation 18 (2) of the Public Finance Management Regulations, 2016 provides that an Accounting Officer who intends to spend monies for any purpose in excess of the amount appropriated for that purpose or for a purpose for which no amount was appropriated by the Appropriation Act shall, in writing, request the Minister for approval.I noted that funds amounting to UGX.0.0491bn, released for the implementation of Covid-19 activities in five (5) entities was diverted and spent on items other than those for which the funds were disbursed.Diversions affect the achievement of the goals and objectives for which the funds had been released. I advised the Accounting Officers to adhere to the implementation of activities as stipulated + + + + +Emphasis of Matter + +Without qualifying my opinion, I draw attention to the following matter presented and disclosed in + +the financial statements. + +43 + + + + + + + + + + + +2.2.3 Receivables + +Paragraph 15.12.5 of the Treasury Instructions, 2017 indicates that, the Accounting Officer of a vote is responsible for management of debtors and other amounts accruing to an entity including maintaining proper records, follow up and recovery of outstanding amounts, accounting and reporting. + +I noted that the Local Governments had receivables of UGX.179,515,803,262 as presented + +in the consolidated Statement of Financial Position and disclosed in note 19 to the consolidated financial statements. I further noted an increase in receivables by + +UGX.19,445,607,793 (12%) from UGX.160,070,195,469 in the previous year as shown in the table below. + +Table 9: Showing receivables trend for Local Governments + +Details 30 June 2020 (UGX) 30 June 2019 (UGX) Decrease/increase (UGX) +Loans (Short Term) 4,086,076,440 5,605,754,394 -1,519,677,954 +Advances 91,085,968,101 40,085,174,999 51,000,793,102 +Outstanding Letters of Credit 3,110,053,408 7,127,240 3,102,926,168 +Prepayments 1,503,641,580 1,503,641,580 +Other accounts receivable 71,193,097,944 114,372,138,836 -43,179,040,892 +Total Receivables 179,515,803,262 160,070,195,469 19,445,607,793 + + + + +Source: Consolidated financial statements + +Receivables represent an idle asset that would otherwise be used for service delivery. + +The Accounting Officers acknowledged the matter and attributed the increase to the change in the basis of accounting from modified cash to modified accrual effective FY 2019/2020 that required Local Governments to accrue some revenue. In an interaction with the + +Accountant General, he explained that he had issued a Domestic Revenue Mobilization Strategy which included revenue recovery measures that would help votes and Uganda Revenue Authority recover these revenues. + +I noted the explanations and I await the outcome of the actions. In the meantime, the + +Accountant General should ensure that responsible Accounting Officers of Local Government + +votes follow up and recover the outstanding funds. + +Other Matter + +In addition to the matter raised above, I consider it necessary to communicate the following + +matters other than those presented or disclosed in the financial statements. + +2.2.4 Link between GoU Chart of accounts and the PBS + +Paragraph 7.10.2 of the Treasury Instructions, 2017 requires that the classification of + +revenues, expenditures, and other financial transactions under the National Budget or Appropriation Act and the estimates of revenues and expenditures of the entities listed + +above shall be the same as that under the Chart of Accounts. + +44 + + + + + + + + + + + +Program Based Budgeting (PBB) was rolled out to Local Governments effective FY + +2018/2019 and was implemented on the PBS to strengthen the link between financial + +budgets of Local Governments with results. + +I, however, observed that it was difficult for Local Governments to budget against particular + +codes and therefore charge and report on the same codes. For instance; + +- Uganda Road Fund (URF) which is other Government transfers can only be budgeted and spent as non-wage recurrent expenditure yet the funds are also spent on infrastructure development. +- Donor funds can only be budgeted for under development expenditure yet not all donor funds are development in nature. + + + +These distortions in budgeting have led to numerous mischarge of expenditure in Local Governments, an indication that budgets and results reported are not linked which has + +affected greatly the individual and the consolidated financial statements. + +The Accountant General explained that the Chart of Accounts is the basis for design of all + +GoU financial management and budgeting systems including IFMS and PBS and he further + +stated that where codes are found inactive or not usable, the affected votes should submit a + +list of the codes to the Treasury and Director Budget for appropriate action. However, he indicated that the inactive codes would be reviewed in the PBS during the ongoing budget + +process for FY 2021/2022. I await the outcome of the revision process. + +2.2.5 Recognition of non-produced assets (land) + +Paragraph 5.2.2 (h) of the Treasury Instructions, 2017 defines non produced assets as + +natural resource assets such as land and forests that may be owned by a Government entity and that non-produced assets shall not be fully charged to revenue in the period of acquisition but shall be carried in the books of accounts over their useful economic lives. + +With the enactment of the PFMA, 2015 UGX.147,568,651,851 was reported as non-produced + +assets for the year under review. However, there was no schedule to provide information + +relating to the above mentioned land leading to inadequate disclosure and posing a risk of loss of land. + +The Accountant General explained that the non-recognition of land in the financial statements was due to lack of value of the land and that going forward, GoU had issued an + +Asset Management Policy which would spearhead the asset valuation activities and + +recognition in the financial statements. He also stated that the respective Accounting Officers should provide schedules for the land under their control. + +I await the outcome arising from the issuance of the asset management policy + +2.2.6 Disclosures of donations in kind + +Paragraph 10.19.2 of the Treasury Instruction, 2017 requires that an Accounting Officer + +shall ensure that all (such) donations are properly recorded and accounted for. Accordingly, the Accounting Officer shall take reasonable steps to obtain the fair value of the donations + +45 + + + + + + + + + + + +received by requesting the DP to provide in writing the estimated cost of the donated items or by comparing the price of the items with similar items in the market. + +Furthermore, Paragraph 10.19.3 of the Treasury Instruction, 2017 requires that all donations in kind are budgeted for. An Accounting Officer of a Local Government vote, shall report to the council so that the donations received are included in the supplementary estimates. + +I, however, observed that most Local Governments did not obtain the fair value of donations in kind. This led to understatement of revenues and expenditures of the affected Local Governments and the consolidated accounts. It was further noted that the local donations + +were not reported to the council to be included in the supplementary estimates. + +The Accountant General stated that the relevant Accounting Officers should be tasked to explain the non-disclosure of donations in kind. I advised him to ensure that Local Governments produce lists of donations and obtain values for all donated items to be + +subsequently included in the financial statements. + +2.2.7 Consolidation of all Local Governments + +Section 52(1)(b) of the Public finance management Act (PFMA), 2015, as amended requires that the Accountant General shall within three months after the end of each financial year prepare and submit to the Minister and the Auditor General the consolidated annual + +accounts of the Local Governments. + +A review of the consolidated financial statements of local Governments revealed that three (03) District Local Governments and two (02) Municipal Councils with a total budget and actual expenditure of over UGX 70 billion were not consolidated as shown below. + +Table 10: Showing un-consolidated Local Governments + +Sn Entity Approved/revised Budget Actual Expenditure +1 Isingiro DLG 40,198,339,051 31,726,422,089 +2 Zombo DLG 21,679,835,582 20,413,835,651 +3 Pakwach DLG 14,900,110,324 13,758,644,044 +4 Ntungamo MC 7,905,931,021 4,003,108,341 +5 Njeru MC 8,536,343,623 8,470,258,437 +Total 93,220,559,601 78,372,268,562 + + + + +Source: consolidated financial statements and schedules + +This was attributed to challenges in preparing quality financial statements in time by the + +affected local Governments. + +The Accountant General acknowledged the shortcoming and explained that despite several + +attempts and reminders, the affected Local Government votes failed to submit financial + +statements for consolidation. He further stated that the respective Accounting Officers + +should be tasked to explain. + +I urged the Accountant General to put in place measures to ensure that all Local Government votes submit their financial statements timely for consolidation and also + +46 + + + + + + + + + + + +understand the challenges experienced to inform the required support needed by these Local Governments. + +Details of other information, accounting officers and my responsibilities are included in + +Annexure 1. + +Other Reporting Responsibilities + +In accordance with Section 19 (1) of the National Audit Act, 2008, I report to you, based on my + +work described on the audit of Financial Statements, that; except for the matters raised in + +compliance with legislation section below, and whose effect has been considered in forming my opinion on financial statements, the activities, financial transactions and information reflected in the financial statements that have come to my notice during the audit, are in all material respects, in compliance with the authorities which govern them. + +Report on the Audit of Compliance with Legislation + +In accordance with section 13 of the NAA 2008, I have a responsibility to report material findings + +on the compliance of Local Governments, with specific matters in key legislation. I performed + +procedures primarily to identify findings but not to gather evidence to express assurance. + +The material findings in respect of the compliance criteria for the applicable subject matters are as follows; + +2.2.8 Management of Government Fleet + +Over the years, there has been increasing demand for accountability and better + +management of public resources by various stakeholders in Uganda. Management of government vehicles (Fleet management) is faced with a number of challenges, such as: inability to respond to national emergencies, like Covid-19; inability to support the delivery + +of public service by government entities; high government expenditure on purchase of vehicles; misuse of government vehicles; inaccurate vehicle management records; and a general lack of a comprehensive and standard government fleet management policy. + +I sampled eleven (11) District local government entities, and developed procedures in order to assess the adequacy of government fleet management system in the delivery of public service, and to identify any impediments and make recommendations for + +improvement. The study covered three (3) financial years: 2017/2018-2019/2020. I noted + +the following; + +Four (4) of the 11 selected entities planned to spend UGX.1.288bn on acquisition of vehicles from government funding over the three years. A sum of UGX.1.228bn (95%) was + +received for the purpose, and the entities spent a total of UGX.1.072bn (87%) to acquire 6 + +vehicles. I noted that the government budget for the purchase of vehicles was not fully + +released in the sampled entities, which indicated a budget shortfall of UGX.60.3m. + +Below is a summary of the key findings I noted, the details of which are included in individual reports issued separately; + +47 + + + + + + + + + + + +a) Six (6) vehicles procured by the 4 entities at a total cost of UGX.1.072bn revealed that the entities fully complied with the approved vehicle standardization guidelines of government as the procured vehicles were in line with the approved engine capacities. + +I commended the Accounting Officers for the good practice. + +b) I further observed that all the 11 selected entities (100%) did not have a specific policy or guidelines on motor vehicle management to guide the usage of motor + +vehicles and eliminate theft, losses, wastage and misuse. Guidelines for management of government vehicles were found scattered in the Standing Orders, Treasury Instructions and the various Circulars issued by various authorities. I also noted the + +absence of a comprehensive standardized fleet management policy of Government. This affects the entities’ ability to address the unique motor vehicle management challenges which may not be envisaged in the Standing Orders and Treasury Instructions. + +c) A review of log books for a sample of 95 vehicles held by 4 districts revealed that none of the log books for 95 vehicles (100%) had been updated on a weekly basis and duly + +certified by an authorizing Officer. I further noted that fuel registers for all the + +sampled vehicles were not maintained. The failure to maintain vehicle log books makes it difficult for management to track vehicle movements, fuel usage and vehicle + +maintenance expenditure. This in turn may lead to misuse of vehicles for unauthorized + +journeys or purposes. + +I however observed that the entities still had manual log books which make + +compliance to this requirement difficult and not effective, especially with entities with a large fleet. + +d) A review of the vehicle allocation to key service units or departments in the selected entities revealed that 8 (73%) out of 11 entities were not adequately allocated + +vehicles. This affects the supervision and monitoring efforts of the entity + +departments/units, thus affecting the level of service delivery in regard to execution of entity mandates. + +e) I noted that 8 of the selected entities holding a total of 301 vehicles spent a total of + +UGX.2.3bn on vehicle maintenance, and had an increment of 44.7% of the annual + +average maintenance costs per vehicle over the 3 year period. The increasing + +maintenance costs were attributed to the ageing fleet. For example, 23 vehicles (88%) out of 26 vehicles held by Kabalore DLG had exceeded the recommended 5 years + +useful life or had their mileage above the recommended 250,000km. + +I have advised that there is need for Government, to undertake a comprehensive review of + +the current public service vehicle standardization guidelines with a view of enhancing efficiency. + +2.2.9 Garbage Management + +The increased urban, economic and industrial activities and the resultant surge in + +population have led to an increase in the quantity of solid waste generated in Urban Councils (MCs). Garbage management is under the mandate of MC’s. MC’s have an + +48 + + + + + + + + + + + +enabling legal frame work in place which include section 26 (part three of the second + +schedule) of the Local Government Act, 1997 and Chapter 1.3 (Under Roles & + +Responsibilities) of the Garbage Management Guideline for a Clean, Safe Attractive Urban + +Environment in Uganda July, 2010. The guide stipulates that MCs should put in place + +approved Garbage management Strategies and Plans. + +Despite the above, the media and the public over the years have voiced instances of failure + +by MC’s to collect, transport and treat/disposal garbage leading to littering of streets and + +overflowing garbage skips emitting pungent smell. It is against this background that I sampled 21 MC’s out of 41 to ascertain the extent of garbage management, ascertain bottlenecks and give recommendations for improvement. Below are my findings; + +2.2.9.1 By-laws on Garbage Management + +A review of the sampled 21 MCs out of a total of 41 revealed that 06 (29%) had approved + +by-laws in line with Section 39(1) of Local Government Act, 1997 (as amended) that empowers MCs to make by-laws in relation to their powers and functions. The other 15 + +(71%) were found lacking. + +Of the 71% that lacked the bylaws, 05 (33%) had draft by-laws that were awaiting the + +approval of either the respective Council and/or the Attorney General. The existence of by- + +laws, streamlines the implementation of garbage management activities in MCs. In such + +MCs, I noted good practices like garbage sorting and medical waste being disposed off in + +incinerators or pits located in gazetted places. + +I noted that MCs that lacked by-laws were synonymous with dumping waste in un-gazetted areas, among other. In addition, they lacked enforcement mechanisms and punitive measures for offenders. The lack of by-laws was mainly attributed to funding limitations, reluctance by management of the MCs and delays by the Attorney General to approve draft + +by-laws. + +I advised MC’s to prioritise funding of the development and enactment of by-laws to ensure better garbage management, leading to cleaner environs. I also advised them to liaise with + +The Attorney General’s office to expedite the processes for approval of by-laws. + +2.2.9.2 Garbage Management Strategy and Plan + +I noted that while 08 (38%) out of the 21 MCs had Garbage Management Strategies and + +Plans, to guide the implementation of solid waste management, 13 (62%) lacked the + +strategies and plans. + +MCs, which had Garbage Management Strategies and Plans were relatively better in managing the garbage collection function, despite the ever-increasing volumes of waste. + +On the other hand, the MCs that lacked Garbage Management Strategy and Plan attributed + +it to lack of funding, leading to haphazard management of the garbage activities. + +I advised MC’s to prioritise funding MCs to develop Solid waste Management Strategies + +and Plans to help streamline garbage management activities. + +49 + + + + + + + + + + + +2.2.9.3 Funding of Garbage management in Urban Councils + +I obtained and analysed funding data/information of the 21 MCs relating to garbage + +management for the three financial years, 2017/18 to 2019/20. + +I noted that the funding of garbage activities in MCs had virtually stayed constant in the + +three years. The MCs received on average 79% of the budgeted funding for garbage + +management in the year under review (FY 2019/20), which was more or less the same in + +the FYs 2018/19 and 2017/18, where the outturn was 80% and 79% respectively, as + +shown in Graph below. + +2,000,000,000 + +1,500,000,000 + +Budget 1,000,000,000 Expenditure + +500,000,000 + +- + +2017/18 2018/19 2019/20 + +A further analysis revealed that in the year under review (FY 2019/20), the MCs of Njeru, + +Mubende, Lira and Nebbi were well funded, with all getting 100% of the budgeted funds. The worst funded MCs were Busia, Moroto and Mbale, with funding performance of 5%, + +8% and 9% respectively. + +I also noted that garbage collection mostly depended on local revenue, whose performance had negatively been affected by the COVID 19 lockdown measures like closure of markets. The inadequate funding is a challenge to the MCs, given that the volumes of garbage generated in urban areas keeps increasing as the population increases. This leads to + +failure to timely collect and dispose garbage. It also poses a health hazard to the urban communities. + +I advise for Government to increase the funding to Urban Councils for better management of garbage collection. I also advised the Accounting Officers to consider coming up with + +policies of charging the inhabitants monthly fees to fund garbage management activities. + +2.2.9.4 Data and records on the Garbage generated + +Through document review and interviews, I noted that 10 (48%) of the MCs did not + +maintain data and records on the garbage volumes generated annually, while 11 (52%) + +did. For the MCs that maintained records, the data entry clerks stationed at the compost + +and disposal sites carried out the work. A number of the records were however noted to be haphazard and not up-to-date. + +Lack of records on garbage may result in unrealistic budgeting for garbage management, + +and uninformed decision-making. The affected MCs mainly attributed this to lack of appreciation of the need for records. + +50 + + + + + + + + + + + +I advised the MCs to ensure that data and records on garbage collection is maintained and that the data entry clerks are trained and supervised. + +2.2.9.5 Public Awareness and Sensitization + +I noted that while 14 (67%) of the 21 MCs undertook public awareness and sensitization + +on safe disposal and sustainable waste management in the year under review, the other 07 (33%) did not. I further noted that even for the MCs that undertook it, the awareness and sensitization campaigns were partial because not all planned outputs were achieved. + +Lack of or inadequate public awareness in garbage management leads to lack of + +community participation in areas of garbage sorting, re-use, recycling, which leads to + +blockage of water drainage systems, among others. The reason given for the above was + +inadequate funding. + +I advise Government and MC’s to prioritise funding of awareness and sensitization campaigns of the urban populace so that they become responsible and participate in maintaining the environment. + +2.2.9.6 Protective wear during garbage collection and disposal + +The National Environment (Waste Management) Regulations, S.I. No 52/1999 (d), require + +that the personnel involved in the collection, transportation or storage of waste are + +provided with adequate protective and safety clothing. I noted that while 12 (57%) of MCs + +did not enforce the wearing of protective gear during waste management handling, 9 (43%) were compliant. + +The failure to provide adequate protective wear to staff can lead to exposure to health hazards like diseases and cuts while picking, collecting and disposing the garbage. In addition, in cases of accidents and any related health hazards, the MCs risk incurring + +litigation costs and reputational damage. This above was attributed to insufficient funding + +to procure the required protective wear and failure by MCs to enforce adherence. + +I advised Government through Ministry of Gender, Labour and Social Development to + +enforce the adherence to Occupational Safety and Health Act, No 9, 2006, through + +inspection and monitoring. + +2.2.9.7 Equipment for Garbage collection and disposal + +I observed that critical equipment like garbage trucks, garbage skips and skip loaders, among others, were inadequate in the MCs. Equipment is critical in the collection and + +disposal of garbage. + +Out of the 21 MCs, I analysed availability of critical equipment for 14 MCs (that availed data/information). My analysis revealed that 14 MCs possessed only 14 (35%) garbage trucks out of the required 40, to transport garbage to the dumpsites, as shown table below; + +51 + + + + + + + + + + + +Table 11: Availability of garbage equipment + +S/ N Urban Council Garbage trucks Garbage skips Skip (wheel) loader + Required Available Required Available Required Available +1 Njeru MC 3 1 0 2 +2 Mubende MC 3 0 40 0 2 0 +3 Masaka MC 3 1 2 0 +4 Lugazi MC 3 0 40 0 +5 Lira MC 4 1 1 1 +6 Kamuli MC 3 3 40 0 +7 Kabale MC 24 14 1 1 +8 Jinja MC 1 0 3 3 +9 Iganga MC 5 3 5 5 +10 Hoima MC 4 2 +11 Fort Portal 12 6 1 2 +12 Busia MC 3 1 40 30 2 1 +13 Masindi MC 24 17 2 1 +14 Mbale MC 3 1 40 14 2 1 +15 Nebbi MC 2 0 40 3 1 0 +16 Moroto MC 2 1 30 0 1 0 +17 Kumi MC 2 1 15 0 1 0 +18 Soroti MC 3 1 45 10 3 1 +Total 40 14 251 67 22 11 + + + + +From the table above, I noted that the 14 MCs possessed only 67 (27%) and 11 (50%) of the required number of 251 and 22 garbage skips and skip loaders respectively. + +In addition, I noted that the available equipment was either too old or grounded (non- functional), thus worsening the situation. This was noted in the MCs of Njeru, Masaka, Lugazi, Jinja and Masindi. The lack of adequate equipment to enable proper garbage + +management was mainly caused by insufficient funding to procure the required equipment. + +I advised Government to take deliberate steps to support MCs with additional equipment to + +enable proper garbage collection and disposal. + +2.2.10 Payroll (Pension & Salary) Management in Local Governments + +The payroll expenditure constitutes 54% of the total budget of Local Governments. I took + +a sample of 80 LG’s out of 174 and carried out an analysis of the payroll and noted the following: + +2.2.10.1 Wage performance + +During the year under review, a total of UGX.996,174,051,683 was budgeted for payroll + +expenses in the 80 Local Governments and UGX.983,408,325,695 (99%) of the approved + +budgets was warranted. Out of the received amount, UGX.954,645,353,278 (97%) was spent, leaving an unspent balance of UGX.28,762,972,417 (3%). Consequently, 641 staff in 20 Districts delayed to access the payroll hence accumulating salary arrears and + +affecting the morale of the affected staff. + +52 + + + + + + + + + + + +Management explained that the under-absorption of general staff salaries was attributed + +to the delays in release of funds and failure to recruit or deploy newly recruited staff due + +to the COVID-19 pandemic which halted the recruitment process. + +I advised the Accounting Officers to engage the relevant authorities to ensure that the + +funds are re-voted and activities implemented. + +2.2.10.2 Salary Payments to staff above retirement age + +A review of the payroll and staff list of 174 Local Governments revealed that employees + +above the retirement age in 7 Local Government were paid salaries totaling UGX.197,316,418 during the year under review as per details in the table below; + +Table 12: Showing salary payments to staff above retirement age + +S/N Name of HLG Salary Payment to Staff above retirement age +1 Kween DLG 13,859,089 +2 Yumbe DLG 94,236,500 +3 Pakwach DLG 59,075,304 +4 Mbale MC 6,344,140 +5 Sironko DLG 10,817,470 +6 Kakumiro DLG 10,210,798 +7 Kiboga DLG 2,773,117 + Total 197,316,418 + + + + +Source: Personal files and [payrolls + +Wrong salary payments overstate the general salaries expenditure in the financial statements and are recoverable. Management attributed this mainly to IPPS and + +validation challenges. The Accounting Officers further explained that management had + +instituted recovery of excess salaries paid. I await the satisfactory conclusion of the + +actions of management. + +2.2.10.3 Over Payment of Salary + +A review of the payroll data and IFMS payments for 174 Local Governments, revealed + +variances between amounts on the payroll and payments later made to personal accounts, leading to overpayments amounting to UGX.89,823,255. + +This could have been due to failure to reconcile salary amounts to salary scales before + +effecting payment, or an intended fraud in payroll processing. Under the circumstances, the amount was irregularly expended and is therefore recoverable. + +I advised the Accounting Officers concerned to ensure that all excess funds paid are + +recovered and in future, necessary reconciliations are made before payments are effected. + +53 + + + + + + + + + + + +2.2.10.4 Salary Arrears + +I noted that out of 174 Local Government, 2 Local Government had not paid salary arrears totaling to UGX.335,509,752 dating as far back as 2015/2016 Financial year as + +shown below; + +Table 13: Showing salary arrears + +S/N Name of HLG Salary Arrears (UGX) +1 Luweero DLG 301,626,333 +2 Budibugyo 33,883,419 +Total 335,509,752 + + + + +Source: financial Statements + +Failure to pay salaries promptly demotivates staff and may lead to low output affecting + +service delivery. The Accounting Officer majorly attributed this to delays in receiving verified arreas and funding from the Ministry of Finance, Planning and Economic Development. + +I advised the Accounting Officers to follow up the matter with the Ministries of Finanrce and Public Service to expedite the payment process. + +2.2.10.5 Pension arrears + +I noted that out of 174 Local Government, 11 Local Government had not paid pension + +and gratuity to pensioners accumulating pension and gratuity arrears to the tune of + +UGX.5,840,720,665. Accumulation of pension and gratuity arrears poses challenges to the + +claimants and beats the purpose for which gratuity and pension is paid after retirement. + +The Accounting Officers explained that the arrears were submitted to Ministry of Finance, Planning and Economic Development for further verfication and funding. + +I advised the Accounting Officers to follow up the matter with the Ministries of Finance and Public Service to expedite the payment process. + +2.2.10.6 Under remittance of deductions + +A review of 174 Local Governments revealed that a total of UGX.3,878,196,656 was not + +remitted to Government from 7 districts and 2 MCs. Table below refers; + +Table 14: Showing unremitted PAYE deductions + +S/N Name of HLG Unremitted Deduction in UGX +1 Luweero DLG 90,719,147 +2 Butamabala DLG 306,420,461 +3 Manafwa DLG 400,936,291 +4 Mbale MC 2,716,736,398 +5 Butebo DLG 13,824,867 +6 Bukwo DLG(HI) 166,636,580 +7 Bududa DLG 12,872,669 +8 Katakwi DLG 146,754,414 +9 Soroti MC 23,295,829 + Total 3,878,196,656 + + + + +Source: OAG analysis + +54 + + + + + + + + + + + +2.2.10.7 Irregular Transfers + +A review of the payroll data and IFMS payments for 174 Local Governments, revealed 5 votes that had made irregular transfers worth UGX 2,857,975,819 as shown in table + +below. + +Table 15: Showing Irregular transactions + +S/N Entity Details Amount +1 Apac MC Irregular payments to two private companies that did not provide services to the Municipal council 492,211,000 +2 Apac DLG Fictitious payroll deductions 113,109,995 +3 Butebo DLG Unsupported transfer of wage funds to Butebo DLG General fund (Disguised as LST) 180,872,558 + Irregular transfer of wage funds to Kabwangasi S.S.S 64,746,000 + Irregular transfer of wage funds to Pallisa Teacher’s SACCO 281,055,672 +4 Manafwa DLG Irregular transfer of funds to private companies 834,910,012 + Diversion of wage funds to other institutions 101,950,471 + Irregular transfer of wage funds to the general collection account disguised as LST 376,185,808 +5 Namisindwa DLG Irregular transfer of wage funds amounting to UGX. to Zedkol Financial Services Ltd 210,450,890 + Uganda Limited as deductions from the payroll, 202,483,413 + Total 2,857,975,819 + + + + +Source: Payrolls, IFMS payment files + +Some of the The Accounting Officers promised to work with other Government agencies + +to ensure that the funds are recovered while others did not offer response on the matters. + +The matter requires urgent attention. + +2.2.11 Existence and Implementation of Physical Development Plans (PDPs)in Urban Councils + +I reviewed 41 Municipal Councils (MCs) to ascertain the existence of physical + +development plans and the extent of adherence by the MCs in ensuring that orderly, coordinated and efficient physical developments are achieved. My review revealed the + +following; + +2.2.11.1 Lack of Approved PDP and detailed plans + +I noted that 12 (29%) MCs had approved PDPs and detailed plans which guide Physical + +development in their respective municipalities within their planning areas while 29 (71%) + +MCs lacked approved UPDPs implying that such councils face risks of unregulated physical + +developments which is undesirable and may become expensive to the municipalities in + +future when physical Development Plans are put in place for implementation. + +55 + + + + + + + + + + + +The Accounting Officers explained that the PDPs had expired and the updating process was ongoing while others explained that the drafts had been submitted to the National + +Physical Planning Board for approval. + +I advised the Accounting Officers to expedite the process and ensure UPDPs and detailed + +plans are put in place for implementation. + +2.2.11.2 Lack of Urban Planning Committees + +I noted that 28 (68%) MCs had no Physical Planning Committees in place or the Committees were not fully constituted to undertake the functions of the committee which + +include; + + + +- To cause preparation and details of physical development plans +- To approve development applications +- To supervise development activities +- To recommend to the National Physical Planning Board (NPPB) changes in land use for approval. + +Consequently, physical developments undertaken within the Municipal Council’s physical planning areas may not have been well determined and managed by the respective MCs. + +The Accounting Officers attributed the matter mainly to lack of Physical Planners from private practice and Architects. I advised the Accounting Officers to engage the relevant + +stakeholders to nominate members and ensure that the committees are fully instituted and are functional. + +2.2.11.3 Funding of detailed physical development plans and activities + +I reviewed the extent of funding of the activities of the physical planning units and noted + +that 21 (51%) MCs had clearly identified activities and were funded. A further review of the 21 MCs’ approved budgets for the funded activities revealed that out of UGX. 1,205,151,560 provided for these activities, UGX. 1.097,190,806 (91%) was released and spent. The balance of UGX.107,960,754 (9%) was not released to the Units to facilitate + +physical planning activities. + +I noted that Physical Planning Units of 6 (29%) MCs out of the 21 MCs got a funding of + +less than 50% of the respective MCs’ approved budgets for physical planning activities + +which was inadequate. Inadequate funding for PDP activities adversely impact on the functionality of the committees leading to poor monitoring and supervision of physical developments within the Municipalities’ physical planning areas. + +The Accounting Officers explained that allocations in the budget depended on the resource envelope and funding for this sector was dependent on local revenue which sometimes was not realized as budgeted. + +I advised the Accounting Officers to prioritize physical planning units and always ensure + +urban physical planning activities are clearly defined and adequately funded for effective and efficient implementation. + +56 + + + + + + + + + + + +2.2.11.4 Lack of Clearly Defined Physical Planning Activities. + +I noted that physical development planning activities of 20 MCs (50%) were not clearly + +identified under the department of Natural Resources��� work plan. Consequently, I was unable to establish whether the activities were funded or not funded at all. + +The Accounting Officers promised to ensure that the activities for physical development planning are clearly defined in the subsequent approved budgets. + +I await the outcome of the Accounting Officers’ actions. + +2.2.11.5 Lack of development permits for ongoing physical developments + +Audit inspections on a sample of ongoing physical developments in MCs revealed that, + +there were developers undertaking physical developments within the physical planning + +areas of 17 (41%) MCs without development permits issued by the respective urban physical planning committees contrary to section 33 of the Physical Planning Act, 2010. I + +noted that out of 17 MCs where physical developments were being undertaken without + +permits, only 1 (6%) MC had filed cases against developers in courts of law. + +I advised the Accounting Officers of other MCs to also file cases against illegal developers + +in courts of law to address the matter. + +2.2.12 Status of Basic Medical Equipment for Maternal Health in (Regional Referral Hospitals/ District Hospitals & Health Centre IVs) + +Medical Equipment represents a substantial asset in the health care delivery system; + +including maternal care and it needs to be managed efficiently. Moreover, the way in + +which it is purchased, managed and used can influence the quality of health care + +delivered to patients. Medical equipment can also pose a risk to patients and staff, particularly if improperly used. In addition, routine/periodic and corrective maintenance of + +medical equipment is key in achieving safe and cost-effective management of medical equipment. + +It is against this background that the status of basic medical equipment for maternal + +health was selected as an area of focus in the audit of financial year ending 30 th June + +2020. Based on my audit, I made the following observations; + +2.2.12.1 Lack of adequate medical equipment at the Health Facility + +Section 7.26 to 7.28 of Health Sector Service standards & Service delivery standards, + +2016 defines the appropriate functional equipment and tools required for handling normal delivery, resuscitation of new born, and emergency care and resuscitation of mothers. + +However, I observed that a sample of 67 (45%) out of 148 Health Facilities lacked + +adequate medical equipment of various categories as indicated in the table below. + +57 + + + + + + + + + + + +Table 16: Showing lack of adeqauate medical equipment in Health Facilities + +SN. Type of facility No. of facilities sampled (A) Required No. of equipment (B) Total required No. of equipment. (AXB)=C Available No. of equipment (D) Variance(C- D)=E +1 Regional referral Hospital (RHH) 5 78 390 74 316 +2 District Hospital (DH) 23 67 1,541 326 1,215 +3 Health Centre IV (HC IV) 39 42 1,638 509 1,129 + Total 67 187 3569 909 2660 + + + + +Source: OAG analysis + +I noted that overall, only 909 out of the 3,569 required number of medical equipment + +was available leading to an overall shortage of 2,660 as detailed below; + +- A review of five (5) out of fourteen (14) Regional Referral Hospital revealed that 74 out of the 390 required number of medical was available leading to a shortfall of 316 equipment. +- A similar review of Twenty – three (23) out of Thirty - nine (39) district hospital revealed that 326 out of 1,541 required medical equipments were available leading to a shortage of 1,215. +- Additionally, I reviewed Thirty – nine (39) out of Ninety – five (95) Health Centre IVs and noted that 509 out of the 1,628 required number of medical equipment were available leading to a shortage of 1,129. + + + +Consequently, the Health Facilities were not able to provide adequate screening and diagnostic services to the patients. The Accounting Officers attributed this to inadequate financial resources at the Health Units, centralized procurement of medical equipment by + +Ministry of Health and lack of budget line for purchase of medical equipment by National + +Medical Stores. + +I advised the Accounting Officers to engage Ministry of Finance, planning and Economic + +development, Ministry of Health and National Medical Stores to identify resources and equip the health Units. + +2.2.12.2 Failure to properly maintain the medical equipment + +I observed that in 14 Health Facilities comprising of 4 District Hospitals and 10 Health + +Centre IVs did not carry out regular maintenance of the medical equipment. + +Consequently, this may lead to increased breakdown of medical equipment, increased + +repair costs and failure to meet the medical requirements of the patients. + +The Accounting Officers attributed the failure to carry out regular medical equipment maintenance to; reliance on one regional maintenance workshop, under funding to the regional maintenance workshop, lack of bio medical equipment technicians at the Health + +Centre, and Lack of spare parts and accessories. + +58 + + + + + + + + + + + +I advised the Accounting Officers to engage the Ministry of Health to allocate resources to + +the regional maintenance workshops to support maintenance of medical equipment in the Health Centers. + +2.2.12.3 Idle Medical Equipment + +I observed that in 20 Health Facilities comprising of 2 Regional Referral Hospital, 6 District Hospitals and 12 Health Centre IVs had 121 medical equipments that were in working condition but were not being put to use. Failure to make use of available equipment’s + +denied the community of proper health service delivery and may render them obsolete over time. + +The Accounting Officers attributed idle equipment to; Lack of qualified personnel to + +operate the machine, Failure to install machine and train staff, Lack of adequate space to install the medical equipment, Lack of three phase electricity to power the equipment, + +Non-provision of technical staff like Sonographer and Bio technicians in the approved staffing structure of the District Local Governments, Lack of supply of reagents/medical + +supplies, Non-calibration of equipment leading to false results, missing components and + +lack of cases that need the equipment, Un-updated software and expired service provider’s contract. + +I advised The Accounting Officers to engage the Ministry of Health to address the issue of idle medical equipment at the Health facilities. + +2.2.12.4 Non-functioning equipment + +I observed that 37 Health facilities had 324 equipments that were non-functional. As a + +result, patients were being reffered to other Health Facilities for further medical management. + +The Accounting Officers attributed the matter to; delays to repairs the equipment by the + +regional workshop, lack of resources for maintenance services, and obsolence. + +I advised the Accounting Officers to engage the Ministry of Health to ensure that the + +medical equipment’s are repaired and put to the intended purposes. + +2.2.12.5 UgIFT Projects implemented in 2019/2020: Absorption of funds and status of Upgrade of Health Centres IIs to III Projects + +I noted that Government budgeted for UGX 20,405,392,882 in respect of upgrading 31 + +Health centers II to III in a sample of thirty (26) Local Governments during the year + +under review. The entities received UGX. 19,700,876,110 (%) during the year out of which UGX 14,803,854,809 ( 75%) was paid to several contractors and unspent balances of UGX 4,897,021,301 (25%) was swept back to the consolidated fund and re-voted back + +in the subsequent financial year. + +Consequently, the upgrading of Health Centre IIs under UGIFT programme was largely + +not completed within the financial year hence denying the beneficiaries the services. The Accounting Officers attributed the under absorption of funds for the upgrading of Health + +Centre to; + + + +- The Covid-19 pandemic which lead to a lockdown of the economy. + +59 + + + + + + + + + + + +- Delayed procurement processes +- Lack of capacity of the contractor to handle multiple projects in several districts. +- Floods caused by heavy rains +- Failure by Ministry of Finance, Planning and Economic Development to release the un spent funds. + + + +I advised the Accounting Officers to engage MOFPED and have the unimplemented activities rolled over and works expedited in the subsequent periods. The Accounting Officers were also advised to enhance project monitoring and supervision. + +2.2.12.6 Follow up audit on UgIFT Projects for 2018/2019 + +During the previous year’s audit process, I noted that many District/ Municipalities had + +commenced construction works on 117 seed secondary schools under the Education and + +124 Health Centers under Health Sector out of which 27 and 28 projects were sampled + +from each sector respectively. The objectives of my audit were; + + + +- Establish the level of implementation of the works against the approved contracts, work plans and outputs; +- Ascertain the usage, functionality and quality of the infrastructure works in the schools and health centres. + +Based on my audit, I made the following observations; + +(a) Status of physical progress of the works on Construction of seed secondary schools and Upgrade of Health Centre II to III + +Audit inspection and review of project implementation documentation for a sample of 27 seed secondary schools and 28 Upgrade of Health Centres II to III projects + +revealed the status of the projects. + +Table 17: Showing progress of completion of works + +SN. Status Schools Health Centres Total Remarks +1 Complete 1 1 2 Nyakatonzi seed School in Kasese District and Upgrade Busota H/C II to III in Kamuli District. +Works in progress and on schedule 20 13 34 In progress with completion dates ranging from 2 to 23 months +3 Delayed projects 5 14 17 Had completion dates exceeded by 4 to 5 months + Total 27 28 55 + + + + +2 + +This implies that the project works may be extended beyond the planned timelines + +resulting into additional administrative costs and delays in project hand over and utilisation. + +60 + + + + + + + + + + + +The Accounting Officers attributed the delays in the construction works to; the + +lockdown due to Covid-19 pandemic, heavy rains which rendered roads impassable, Inadequate of capacity by the contractors to handle the work, long distance of + +transportation of materials, difficulty in excavation due to the topography of the site and delay in approving variations of extra works. + +I advised the Accounting Officers to strengthen supervision and monitoring of the project and ensure quality works are achieved. + +John F.S. Muwanga + +AUDITOR GENERAL + +23 rd February, 2021 + +61 + + + + + + + + + + + +2.3 REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED SUMMARY STATEMENT OF FINANCIAL PERFORMANCE OF PUBLIC CORPORATIONS AND STATE ENTERPRISES FOR THE YEAR ENDED 30 TH JUNE 2020 + +2.3.1 Review of the Consolidated Summary Statement of Financial Performance of Public Corporations and State Enterprises + +According to Section 3 of the Public Finance Management Act (PFMA), 2015 (as amended), Public Corporation and State Enterprises are defined as follows; + +“A Public Corporation means an authority established by an Act of Parliament other than a local Government which receives a contribution from public funds, and any public body + +which in a financial year receives any income from public funds”. + +“A State Enterprise means a body established under any Act other than the Company’s Act or a local Government council, and a company registered under the company’s Act in which the Government or a state enterprise has controlling interest”. + +Section 52 (1c) of the Public Finance Management Act (PFMA), 2015 (as amended) requires the Accountant General, within three months after the end of each financial year, to prepare and submit to the Minister responsible for finance and the Auditor General the consolidated summary statement of the financial performance of Public Corporations, State Enterprises + +and Companies where Government has controlling interest. + +From the above definitions, I noted that 46 public corporations and state enterprises were supposed to be consolidated. Some entities which fall under the above definitions were + +excluded and reported on in the consolidated accounts of Government. + +In line with the PFMA 2015, I reviewed the Consolidated Summary Statement of the + +Financial Performance of Public Corporations and State Enterprises for the year ended 30 th June 2020, and noted the following; + +a) Missing Entities in the Consolidation that were however disclosed + +A review of the consolidated summary statement of performance of Public + +Corporations and State Enterprises revealed that 14 entities were disclosed as not consolidated due to failure to submit the summary statement of financial performance for consolidation, the entities are listed below; + +Table 18: Showing entities not consolidated but disclosed in the consolidated summary statement + +S/N Enterprise Remarks +1 Post Bank Uganda Limited +2 Uganda Crane Industries Limited +3 Uganda Air Cargo Corporation +6 Bank of Uganda Capitalization +5 Amber House Evidence of Government controlling interest not obtained +6 Uganda Railways Corporation + + + + +62 + + + + + + + + + + + +7 Uganda Energy Credit Capitalization Co. Limited +8 Uganda Refinery Holding Company +9 Munyonyo Common Wealth Resort Evidence of Government controlling interest not obtained +10 Phoenix Logistics Evidence of Government controlling interest not obtained +11 Uganda Telecom Limited Evidence of Government controlling interest not obtained +12 LAP Textile Limited Evidence of Government controlling interest not obtained +13 J & M Airport Road Hotel Evidence of Government controlling interest not obtained +14 Uganda Wildlife Authority + + + + +b) Missing Entities in the Consolidation which were however not Disclosed + +I further noted that 11 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; + +Table 19: Showing entities not reported or disclosed in the consolidated summary statement + +S/N Enterprise Remarks +1 Nakivubo War Memorial Stadium Reported last year +2 Uganda Wildlife Conservation education Centre Reported last year +3 Uganda National Oil Company Limited Also not disclosed in prior year +4 The Microfinance Support Centre Ltd (Dec 2019) Disclosed in prior year +5 Uganda Broadcasting Corporation Reported last year +6 Soroti Fruits Limited Also not disclosed in prior year +7 Uganda National Cultural Centre Reported last year +8 Electricity Regulatory Authority Reported last year +9 Atomic Energy Council Reported last year +9 Management Training and Advisory Centre (MTAC) Reported last year +11 Hotel and Tourism Training Institute Disclosed in prior year + + + + +c) Consolidation of Un-qualifying Entities + +I also noted that included in the consolidated summary statement under the Financial Sector section is Tropical Bank with a recorded net worth of UGX.31.158bn and + +Housing Finance Bank with a net worth of UGX.238.225bn. However, the reported Government shareholding is only 0.17% and 49.2%, respectively which disqualifies + +these Banks from inclusion on the summary statement of financial performance. + +This implies that the consolidated summary statement of financial performance of + +public corporations and state enterprises is incomplete and does not reflect the + +63 + + + + + + + + + + + +accurate status of Government ownership and interest in Public Corporations, State + +Enterprises and Companies. + +Management explained that the Accountant General each year issues an end of year + +circular which clearly spells out the timelines for submission in accordance with the + +PFMA 2015 requirements. However, some Public Corporations did not submit Financial Statements for consolidation. However, the affected entities were notified to ensure + +submission in the right format for financial reporting for consolidation. + +I advised Government to issue comprehensive guidelines in respect of entities to be + +consolidated in the summary statement of performance, and timelines for the entire + +consolidation process to ensure compliance with the requirements of PFMA, 2015. + +2.3.2 Financial Performance of Public Corporations and State Enterprises + +The Government of Uganda (GoU) owns shares in a number of State Enterprises. These + +enterprises, which are independently managed, are supposed to operate efficiently, make + +profits and pay dividends to Government. Their financial performance is therefore of interest + +to Government. + +As noted in my previous report, the Government Consolidated Summary Statement of + +financial performance of public corporations and State enterprises only reports on; Government shareholding, total income, total expenditure, dividends declared, retained earnings, and net worth of entities. However, key performance assessment parameters, + +such as; profitability, return on assets, liquidity assessment, long-term debt, and interest cover were not reported on. As a result, I computed these ratios for further analysis of performance of entities using audited financial statements. + +Out of the 46 State Enterprises, 4 financial institutions, including; Pride Micro Finance, Post + +Bank Uganda Limited, Uganda Development Bank and The Microfinance Support Centre Ltd, were assessed for the period ending 31 st December 2019 due to the fact that their financial years do not follow the Government financial year end of 30 th June. In addition, 20 entities such as; Nakivubo War Memorial Stadium, National Enterprise Corporation, Uganda Air Cargo Corporation, Uganda Broadcasting Corporation, Uganda Property Holding, Uganda Seeds Limited, Uganda Crane Industries Ltd, Uganda Livestock Industries, National Housing + +and Construction Company Limited, and Uganda Communications Commission among + +others, were not sampled for assessment because they had not submitted audited accounts at the time of concluding this review. + +I noted the following; + +a) Profitability of Enterprises + +I noted that eight (8) out of the 13 State Enterprises analysed made profits/surplus in + +the year under review, as shown in the table below; + +64 + + + + + + + + + + + +Table 20: Showing profitability of enterprises + +No Entity Profit After Tax / Surplus for the year + 2019/20 2018/19 +1 National Water and Sewerage Corporation (NWSC) 27,443,368,000 85,700,275,000 +2 Pride Micro Finance (Dec 2019) 12,788,216,000 15,111,855,000 +3 Uganda Development Bank Limited 10,140,259,000 9,486,394,000 +4 Post Bank Uganda Limited (Dec 2019) 8,384,996,117 3,498,702,610 +5 Uganda Printing and Publishing Corporation 4,220,043,755 1,031,271,337 +6 New Vision Printing and Publishing Company Limited 2,661,368,000 2,128,773,000 +7 Nile Hotel International Limited 1,241,750,274 1,225,769,111 +8 Uganda Post Limited 197,193,000 188,856,000 +9 Mandela National Stadium (295,328,725) (137,505,004) +10 Kilembe Mines Limited (2,807,114,772) (2,321,001,684) +11 Soroti Fruits Limited (6,682,649,000) (2,321,001,684) +12 Uganda Railways Corporation (61,385,059,000) (40,622,248,000) +13 Uganda National Airlines Company Limited (102,442,029,000) (15,339,425,000) + + + + +Seven (7) entities had their performance reduce compared to the previous year due to + +the impact of Covid-19 in the last half of the financial year. The worst performing State Enterprises were Uganda National Airlines Company Limited, Uganda Railways + +Corporation (URC) and Soroti Fuits Limited with losses of UGX.102.4bn, UGX.61.4bn + +and UGX.6.68bn respectively. + +I further noted that Enterprises including Mandela National Stadium, Kilembe Mines, + +Soroti Fruits Limited, Uganda Railways Corporation and Uganda National Airlines Company Limited had negative retained earnings/accumulated deficits as at the end of + +the financial year. This may affect the entities’ ability to meet future obligations or + +investments. + +I advised the entities to develop clear strategies to improve operations and adopt + +efficient financial management practices to lower deductions on income. Government should also consider recapitalizing the most affected entities to revamp their viability. + +b) Return on Assets + +The Return on Assets (ROA) shows the percentage of how profitable a company’s assets are generating revenue. It measures management’s efficiency in using the enterprise’s assets to generate earnings. Although companies that require large initial investments will generally have lower return on assets, ROAs below 5% are generally + +considered inadequate. + +Apart from New Vision Printing and Publishing Company Limited and Pride Micro + +Finance the rest registered a poor performance on ROA. + +65 + + + + + + + + + + + +Table 21: Showing returns on assets + +No. Entity Return On Asset % + 2019/20 2018/19 +1. Pride Micro Finance (Dec 2019) 5.94 5.67 +2. New Vision Printing and Publishing Company Limited 5.28 4.42 +3. Uganda Development Bank Limited 3.59 2.84 +4. Post Bank Uganda Limited (Dec 2019) 2.84 0.92 +5. Uganda Printing and Publishing Corporation 2.16 5.87 +6. National Water and Sewerage Corporation 1.45 3.53 +7. Nile Hotel International Limited 0.67 0.58 +8. Uganda Post Limited 0.29 0.2 +9. Mandela National Stadium -0.16 0.08 +Uganda Railways Corporation -1.66 (1.09) +11. Kilembe Mines Limited -6.72 (5.81) +12. Soroti Fruits Limited -14.97 (4.96) +Uganda National Airlines Company Limited -16.59 (5.57) + + + + +10. + +13. + +c) Dividends + +I observed that, out of the 26 enterprises assessed, only New Vision Printing and Publishing Company Limited and Nile Hotel International Limited proposed a dividend + +pay-out of UGX.1,377,000,000 and UGX.124,175,027, respectively. In the year under + +review, New Vision Printing and Publishing Company Limited paid out dividends + +declared for the previous year totalling UGX.879,827,000. + +The Enterprises attributed the non-payment of dividends to the loss making positions and retention of funds to fund planned investments/projects. + +I advised Government to ensure that profit making enterprises pay dividends to + +Government. In the event of retention, it should properly authorised through + +Parliament. + +d) Liquidity Assessment + +I analysed the ability of State enterprises to meet their short-term financial obligations by comparing the current assets and current liabilities using the Current Ratio. The ratio of Current Assets to Current Liabilities between 1.5 and 2 is desirable, although + +acceptable current ratios vary between industrial sectors. + +I noted that 6 entities were above the ideal threshold, implying that they are able to + +meet their liabilities as they fall due. Although five (5) of these enterprises had very + +high ratios exceeding 2, with Soroti Fruits Limited posting a very high ratio of 122, this may imply that there are not adequately managing their current assets to generate profits. Four (4) entities had ratios below 1.5 and may have a challenge of paying their obligations as they fall due. + +66 + + + + + + + + + + + +Table 22: Showing enterprise liquidity + +No Entity Current Ratio + 2019/20 2018/19 +1. Soroti Fruits Limited 122.38 12.26 +2. Nile Hotel International Limited 9.79 10.66 +3. Uganda National Airlines Company Limited 6.10 29.23 +4. Uganda Railways Corporation 3.09 4.29 +5. New Vision Printing and Publishing Company Limited 2.68 4.21 +6. Uganda Printing and Publishing Corporation 1.77 0.82 +7. Kilembe Mines Limited 1.30 1.66 +8. Uganda Post Limited 1.19 1.13 +9. National Water and Sewerage Corporation 1.18 1.80 +Mandela National Stadium 0.49 0.54 + + + + +10. + +I advised Government to follow up and ensure management of these entities + +strengthen their Treasury/working capital management strategies to ensure speedy + +collection of debts and reduction of liabilities. + +e) Long-term Debt + +Public Corporations and State Enterprises should be able to meet their long-term debt obligations. Gearing (debt) ratios measure the proportion of the enterprises’ 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 10 State + +enterprises had debt ratios of more than 50% implying that their total assets were + +insufficient to cover their total debt. These included; Insurance Training college, + +UEGCL, UEDCL, Bank of Uganda, Post Bank Uganda, UETCL, Uganda National Oil Company, NWSC, Pride Micro Finance and Uganda Civil Aviation Authority. + +Seventeen 17 enterprises had debt ratios of less than 50% implying that owners’ equity was sufficient to cover total debt. Further analysis noted that 6 enterprises had + +very low gearing levels below 10% indicating availability of untapped source of financing for growth. + +Table 23: Showing Enterprise gearing + +No. Entity Debt Ratio (%) + 2019/20 2018/19 +1. Insurance Training college 97.67 96.16 +2. Uganda Electricity Generation Company 89.57 89.02 +3. Uganda Electricity Distribution Company Limited 89.33 91.01 +4. Bank of Uganda 83.06 80.97 +5. Post Bank Uganda Limited (Dec 2019) 82.31 81.33 +6. Uganda Electricity Transmission Company Limited 67.52 64.95 +7. Uganda National Oil Company Limited 64.76 67.08 +8. National Water and Sewerage Corporation 62.83 58.30 + + + + +67 + + + + + + + + + + + +9. Pride Micro Finance (Dec 2019) 60.05 58.55 +10. Civil Aviation Authority 51.17 48.88 +11. Uganda Wildlife authority 47.66 43.44 +12. Uganda Development Bank Limited 28.56 31.48 +13. New Vision Printing and Publishing Company Limited 28.20 19.89 +14. National Drug Authority 24.88 26.64 +15. Uganda Post Limited 20.62 21.12 +16. Uganda Development Corporation (Group) 18.55 21.55 +17. Uganda Energy Credit Capitalization Co. Ltd 17.64 26.46 +18. Uganda Printing and Publishing Corporation 17.02 44.22 +19. Kilembe Mines Limited 16.17 14.89 +20. The Microfinance Support Centre Ltd (Dec 2019) 12.99 11.70 +21. Uganda Wildlife Conservation education Centre 3.65 2.81 +22. Mandela National Stadium 2.94 2.53 +23. Uganda National Airlines Company Limited 2.37 0.48 +24. Uganda Railways Corporation 2.25 1.95 +25. Nile Hotel International Limited 0.33 0.25 +26. Soroti Fruits Limited 0.07 0.48 + + + + +In comparison to the previous year, New Vision Printing and Publishing Company Limited increased its gearing from 19.89% to 28.20%, NWSC also increased from + +58.30% to 62.83%, UWA from 43.44% to 47.66 while Uganda Printing and Publishing Corporation had reduced gearing by over 27% from the previous year. The rest of the + +entities had no notable change in the gearing levels. + +I advised the enterprises to adopt strategies to increase net operating income, better + +control of operating expenses and consider easing of the debt burden. + +f) Interest cover + +I 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 times a Company’s operating profits exceed its interest payable. A cover of two + +(2) times and above is usually considered to be safe, depending on the nature of + +industry. The implication is that a company is most likely to meet its interest + +payments. + +I noted that 6 State enterprises were better placed to meet their interest obligations, while 4 were not. The three worst performing State enterprises in this aspect were + +Uganda National Airlines Company Limited, Uganda Post Limited and Insurance Training College, which may have challenges meeting their interest obligations. + +68 + + + + + + + + + + + +Table 24: Showing enterprises' ability to service loan obligations + +No. Entity Profit Before Interest Interest (Financing cost) Interest Cover (No. of times) +1. Uganda RailwaysCorporation -61,348,777,000 36,283,000 -1690.8 +2. National Water and Sewerage Corporation 47,667,307,000 1,685,698,000 28.3 +3. New Vision Printing and Publishing Company Limited 5,075,064,000 180,280,000 28.2 +4. Civil Aviation Authority 6,300,470,000 234,004,000 26.9 +5. Uganda Printing and Publishing Corporation 433,743,141 41,958,229 10.3 +6. Uganda ElectricityGeneration Company 49,457,618,000 30,989,032,000 1.6 +7. Insurance Trainingcollege 1,560,075 1,111,595,193 0.001 +8. Uganda Post Limited 283,831,000 117,774,000 2.4 +9. Uganda National Airlines Company Limited -102,274,002,000 168,027,000 -608.7 + + + + +Through its oversight role, Government should guide and encourage the management + +of these enterprises to limit the amounts of debt to manageable levels, and the acquisition of debts should be guaranteed by improved profitability. + +Overall Conclusion/Recommendation + +Whereas Government policy to invest in critical sectors of the economy is commendable, it is important to ensure that such investments are operating efficiently + +and effectively to be able to meet sector objectives. There is need for Government to strengthen the supervision and monitoring of these entities. The Covid-19 pandemic has affected operations of a number of entities, and Government needs to assess its + +impact on the critical enterprises and corporations and provide the necessary guidance and assistance. + +69 + + + + + + + + + + + +PART 3: SECTORAL AND LOCAL GOVERNMENTS CROSS CUTTING FINDINGS + +This part contains cross cutting key findings noted in the respective sectors and cross cutting + +service delivery issues in Local Governments. + +3.1 Accountability Sector 3.1.1 Unplanned expenditure through Garnishee orders + +In my previous year’s report to Parliament (2018/2019), I noted that a sum of UGX.66.6bn and USD.528,000 was attached by way of garnishee orders against Government and I accordingly advised Government to devise a strategy of managing payment of debts arising out of court awards as a means of limiting recourse to garnishee of Government accounts. + +However, during the year under review, the strategy had not been developed. I noted that garnishee orders against Government have still continued. I observed that three (3) entities + +have spent UGX.3,820,666,592 to honour Garnishee orders issued by court. Since this + +activity was not provided for in the initial approved budget, the MDAs used funds + +appropriated for other activities to honour these obligations. + +Garnishee orders have affected the implementation of Governments programs as resources budgeted for planned activities are used to honour court orders. As advised last year, + +Government should come up with strategies of managing debts to eliminate garnishee orders on Government accounts. + +3.1.2 Underfunding of the Contingencies Fund - UGX.101.4bn + +Section 26(i) of the PFMA 2015 (as amended) provides for replenishment of the Contingencies’ fund with an amount equivalent to 0.5% of the appropriated annual budget of Government of the previous financial year. I observed that the approved budget for the + +previous financial year (FY2018/2019) was UGX.32,702.8bn, which would translate into + +funding of UGX.163.51bn in the year under review. I however noted that Parliament only appropriated UGX.62.07bn to the Contingencies fund, causing a deficit of UGX.101.4bn. + +Underfunding of the Contingencies Fund distorts implementation of the approved budget for the current year as evidenced by requests and approvals of supplementary funding relating to natural disasters and emergencies. + +Government should secure and explore ways of ring-fencing the funds meant for the + +Contingencies Fund. + +3.1.3 Public debt + +Over the last three (3) years, the amount of public debt has increased from UGX.33.5tn to + +UGX.56.83tn from June 2017 to June 2020, an increase of almost 70%. The graph below + +shows the growth trend; + +70 + + + + + + + + + + + +60 + +GRAPH SHOWING PUBLIC DEBT TREND + +Domestic debt + +50 Foreign debt + +Total + +40 + +30 20 + +PUBLICDEBTINTRILLIONS 10 2016 2017 … 2018 2019 2020 + +Source: Treasury Consolidated Financial statements + +The following matters are particularly highlighted; + +- The International Monetary Fund (IMF) has recommended 50% debt to GDP ratio as the + + + +point of safety for developing countries and currently, Uganda has reached 41% despite + +rebasing its GDP last year. + +- Additionally, the percentage of interest to domestic revenue has reached 13.69%, which is above the recommended cap of 12.5%. +- Uganda’s credit rating outlook was revised from stable to negative. (Fitch credit rating). + +The above have had a resultant effect of higher cost of borrowing which may deny future generations the opportunity to sustainably borrow. + +Although Government has attributed the debt increment to the need to cover for both the revenue shortfalls and the rising expenditure needs, I have advised Government to devise a + +comprehensive strategy to align revenue mobilisation and fiscal policy management. + +3.1.4 Low level Tax/GDP ratio + +According to the International Monetary Fund, developing countries should have a Tax-to- GDP ratio of at least 15%, to ensure that they have the money necessary to invest in the future and achieve sustainable economic growth. + +I noted, however, that contrary to the above recommendation, Uganda’s Tax/GDP ratio is + +approximately 12% and had averaged approximately 11% for the last three (3) years compared to an average of 19% for the Sub-Saharan region. + +I advised Government to critically review the efficiency and effectiveness of the taxation + +measures and also to widen the tax base with a view of improving revenue collections. + +3.1.5 Increased Commercial Bank Borrowing with non-fixed interest rates- UGX.2.806tn + +The Medium Term Debt Management Strategy (MTDs) for the FY 2019/2020 provides that in + +the medium term, Government shall continue to prioritise concessional financing as the + +71 + + + + + + + + + + + +preferred means of meeting its financial and development requirements. Concessional loans + +have lower interest rates than the market rates and also provide longer grace periods. + +I observed that loans from Commercial banks that are non-concessional grew from + +UGX.192bn to UGX.2.806tn representing a 1357% spike over the past three financial years. I noted that the contracted loans had very short repayment periods with high-interest rates + +as compared to concessional loans. + +Contracting debt at non-concessional terms has exposed the Government to high-interest + +rates and refinancing risk. + +I have advised Government to not only explore new financing options including instruments + +with less commercial borrowing, but to also consider reducing fiscal expenditure during periods of revenue under collection. + +3.1.6 Under absorption of loans + +A review of the loan disbursements revealed that twelve (12) loans worth UGX.1.373tn reached expiry before disbursing. The energy sector was most affected due to the recurring + +unresolved land compensation issues affecting project implementation. + +Such low levels of performance undermine the attainment of planned development targets and render commitment charges paid amounting to EUR.2.2 Million (UGX.9.5bn) in respect of undisbursed funds nugatory. + +I advised Government to identify and resolve any bottlenecks hindering the absorption of + +loans in the energy sector. + +3.1.7 Absence of clear policies to guide the tax exemptions and other investor incentives + +I observed that there is no clear policy guideline for the issuance, management and monitoring of the different tax benefits and incentives issued by the Government to different individuals. The absence of a clear mechanism and framework exposes the scheme to mismanagement and abuse. For example, there were inconsistencies in the grant of tax + +benefits to the various beneficiaries as some were in conflict with earlier policy decisions that were made by Government. A case in point is granting a waiver of import duty for steel goods while offering a 10 year tax holiday to the steel sector with the aim of promoting growth of the sector as well as boosting employment. + +I advised Government to develop a comprehensive framework to guide the identification of + +beneficiaries/criteria, the nature of benefits to be granted, the duration of the grant and monitoring and evaluation mechanisms. + +72 + + + + + + + + + + + +3.2 Agriculture Sector 3.2.1 Slow progress of Agriculture Cluster Development Project (ACDP) + +Agriculture Cluster Development Project is a 6-year project implemented by MAAIF with + +technical and financial assistance from the World Bank funded through a USD.150 million + +IDA Credit. The objective is to raise on-farm productivity, production, and marketable volumes of selected agricultural commodities in 57 districts. The Project was declared effective in January, 2017 and will end in March 2022. At the time of the report, a sum of UGX.288.8bn had been received. + +I noted that the project is in its 4 th year of implementation but the project expected targets had not been achieved as indicated below; + +Table 25: Showing achievements of project targets + +Intended benefits Targets Year 4 Status of Implementation as at 30th June 2020 +Project beneficiaries (farmers) 370,000 farmers Only 89,894 farmers have been provided with the subsidies. +Area Based Commodity Cooperative Enterprises (ACCEs) and Apex Producer Organizations with operating capacities constructed 30% of 300 ACCEs and 3000 RPOs constructed 0 ACCEs and 0 RPOs constructed +Number of road bottlenecks fixed 50 road bottlenecks fixed At the time of audit, road chokes/bottlenecks had been identified in the 5 pilot districts. Only designs and Bills of Quantities were drawn up. +Number of regulations on the crop sub sector developed and disseminated Pesticide registration, fertilizer registration and application, equipment regulations and seed regulations to be developed The seed and plant regulations have not been developed. + + + + +Slow performance of this component was due to unreliable system functionality leading to + +undertaking manual redemptions, low progression of farmers from cycle 1 across to cycle 3, inadequate distribution networks which affect timely access to inputs by farmers, over + +stretched District local Government staff to undertake farmer’s mobilization, inability by + +farmers to match the subsidy, inadequate project monitoring and evaluation and delayed approval of budgets and work plans. + +I advised Government to review the strategy of implementation of this project with a view of expediting the activities and ensuring proper monitoring of implementation. + +73 + + + + + + + + + + + +3.2.2 Preparedness for management of locust invasion in Uganda + +On 9 th February 2020 a desert locust invasion was reported in Uganda. In order to respond + +to this emergency MAAIF was advanced a sum UGX.24bn. These funds were meant for + +surveillance, sensitization and awareness creation, capacity building of key stakeholders, enhancing national coordination for preparedness, ground and aerial spraying and payment of arrears to the Desert Locust Control Organisation for East Africa (DLCOEA). + +A review of utilisation of the funds revealed the following; + + + +- Included in UGX.24bn is UGX.11.1bn (USD.3 Million) paid to Desert Locust Control Organisation for East Africa (DLCOEA) as part payment for arrears for the period 1 st July 1982 to 1 st July 2019. This demonstrated lack of preparedness in planning for emergencies of such nature on the part of the Ministry. +- I further observed that during the intervention, MAAIF had developed a national strategy, action plan and budget for the control of the desert locusts based on the + +available information from other earlier affected countries. Along the way, Cabinet + +directed a change in strategy to conduct ground spraying which eventually affected + +Ministry’s implementation of the planned outputs involving a sum of UGX.5.1bn. + + + +- Further, the activities highlighted above were to be implemented in the months of + +February, March and April 2020. By the end of April 2020, the pesticide supplier had delivered pesticides worth UGX.2.75bn which is 14% of the order. The balance was + +delivered in the month of June (16%) and August (70%). + +In view of the above, the Ministry is inadequately prepared to for these emergencies. In the + +previous years, I observed that the Ministry has faced challenges in handling water hyacinth, + +floating islands on major water bodies, army warms that caused loss of over 450,000 tonnes of maize, foot and mouth outbreaks among others. + +I advised Government to initiate comprehensive and efficient disaster preparedness plans in the core Agriculture sectors of fisheries, crop resources, animal industry and extension services so as to timely combat these recurrent emergency outbreaks. + +3.3 + +Justice Law and Order Sector + +3.3.1 Unpaid court awards and compensations + +The outstanding amount in Court awards and compensations has been accumulating over the last nine (9) years except for a slight decrease in the year under review of 12.6%. The trend is shown in table 9 below: + +Table 26: Showing the trend analysis of court awards and compensations + +No Financial Year Outstanding Amount UGX. %Percentage increase from the previous year +1 30 th June 2012 54,009,997,832 +2 30 th June 2013 164,163,101,576 100% +3 30 th June 2014 253,000,000,000 57% +4 30 th June 2015 442,161,234,933 75% + + + + +74 + + + + + + + + + + + +5 30 th June 2016 680,830,522,791 54% +6 30 th June 2017 676,818,974,843 -0.6% +7 30 th June 2018 655,134,362,209 -3% +8 30 th June 2019 550,280,125,664 -16% +9 30 th June 2020 392,428,099,424 -28.6% + + + + +Delayed settlement of the court awards and compensation obligations have resulted in + +Government accumulating interest of UGX.185.3bn on the principal amounts, penalties and + +damages. + +The Accounting Officer explained that the unpaid court awards, compensations and other domestic arrears are attributed to the insufficient budget provision made by MoFPED. + +Management has persistently engaged MoFPED to retire the entire domestic arrears to no + +avail. + +The Accounting Officer’s response was noted and was advised to continue engaging MoFPED + +to ensure sufficient budget provisions are made to cater for settlement of outstanding + +domestic arrears and to strictly adhere to the Government commitment control system to + +avoid the risk of overcommitting Government + +3.3.2 Case backlogs + +A four (4) year trend analysis of the schedule of cases under the office of the Directorate of + +Public Prosecution shows that the number of cases increased from 1,993,572 to 2,373,433 with 379,861 (19%) cases registered during the year under review. I noted that only + +168,286 cases (representing 7%) were concluded through conviction, acquittal, withdrawal, dismissal and closed files, and the number of outstanding unresolved cases stood at 2,205,147 at the close of the financial year. + +Similarly, I noted that at the DGAL the Directorate analysed 1,784 cases out of 2828 applications received, which is 63.2% of the targeted 90%. The backlog cases (those yet to + +be investigated) has reduced by 2,067 (39.89%) from 3,492 in the previous year to 2,099. + +As a consequence of slow progress of the case settlement, the current occupancy rate for + +most of the prisons is more than the holding capacity of these facilities. Some stations had + +occupancy percentages of over 2,000%, with Amuria being the highest with over 2,971% + +occupancy rate against the set target of 100%. In some cases, the number of prisoners was over ten (10) times the holding capacity. + +There is need for the Judiciary and Land Sector to develop strategies to expedite settlement + +of the overwhelming numbers of unresolved cases. + +3.3.3 Failure to operationalise established Magistrate Courts + +I noted that 09 Magistrate G1 Courts established in the year 2016 were not operational. Inmates in these areas walk for long distances to operational Courts in search of justice, sometimes distances of up to seven (7) kilometres. Further, in areas where Courts were + +operational, the Courts sit once a week. This delays justice to the affected and also causes crowding in prisons. + +75 + + + + + + + + + + + +The Accounting Officer of the Judiciary explained that non-operationalization of gazette Courts is a result of inadequate staffing and funding to the Judiciary. This non-funded priority has been raised to both the Executive and Parliament. However, the process of re- + +organization of magisterial areas is underway. + +I advised the Accounting Officer to liaise with the relevant stakeholders to ensure that all + +established Courts are operationalized for purposes of effective and efficient justice delivery. + +3.3.4 Progress on the registration of citizens + +A review of the NIRA annual reports indicated that over five years NIRA had received 29,438,914 applications for registration which accounts for 71.3% of Uganda’s total + +estimated population of about 41,222,200 people as per Uganda National Bureau of Statistics (UBoS). Out of the 29,438,914 citizens who applied for registration, 25,107,861 + +(85%) of the applicants have been registered and assigned NINs and of these 15,266,895 (60.8%) have been issued with National Identity cards. + +This was attributed to the long-time taken of an average of six to eight weeks for an identity card to be produced as opposed to 7 working days as the standard time. Further, I noted that currently two of the four production machines are not functional, and the remaining two machines have a low production capacity of about 28%, which slows their efficiency and affects the production of cards. + +I advised Government to prioritise resources for replacing existing machines and staff of the + +entity to adequately enhance performance. + +3.4 Public Sector Management 3.4.1 Performance of the NDP II + +This being the final year of the NDP II the National Planning Authority (NPA) undertook a review of the extent to which the NDP II had achieved its objectives. From the assessment, the overall goal of NDP II was not achieved by the end of the plan period. The targets for 10 of the 15 (66.7%) performance indicators reviewed were not achieved by the end of the plan period. + +The failure to achieve a number of the planned targets was attributed to; slow + +implementation of core projects, limited prioritization and inadequate sequencing of interventions, land related constraints, limited access to and high cost of capital and low + +levels of revenue to GDP to finance infrastructure and social services among others. Failure to achieve NDP targets resulted into Uganda not achieving the lower middle income status + +by 2020. + +I advised Government to develop strategies of ensuring that programs and interventions are + +implemented in a harmonized manner, all core Government projects are prioritized and better supervised, and enhance revenue collections for financing future Government projects. + +76 + + + + + + + + + + + +3.4.2 Alignment of the 2019/2020 budget to NDP II + +From my review of the Certificate of Compliance (CoC) issued by the National Planning + +Authority (NPA), I noted that the 2019/20 budget was rated 59.7% (Unsatisfactory) compliant to the NDP II. This was a decline in performance from the level of compliance of + +the 2018/19 budget which was rated 60%. (Moderately Satisfactory) + +The non-compliance was attributed to insufficient funding to LGs, duplication of projects, and programmes are implementation of programmes and projects outside the NDP II + +The continued noncompliance of the approved budgets to the NDPs implies that it will be + +very difficult to attain the desired growth and incomes as envisioned in the strategic + +planning documents such as the National Development Plans and Vision 2040. + +I advised Government to ensure that going forward, all entities have strategic plans that are aligned to NDP III, avoid delays in implementation of activities and absorption of funds and + +develop strategies to minimize duplication of programmes and projects within MDAs and LGs. + +3.4.3 Implementation of strategic plans + +This being the last year of implementation of NDP II I assessed the extent to which the sampled entities had achieved their strategic plan objectives/targets. + +Out of a total of 5,163 quantified strategic targets reviewed in the 313 sampled entities, + +2,059 targets (39.8%) were fully achieved, 2,051 targets (39.7%) were partially achieved, + +and 1,053 targets (20.1%) were not achieved at all. The failure to fully achieve strategic + +plan objectives was attributed to underfunding, unrealistic/ambitious plans, and lack of clear guidance from NPA during the preparation of the strategic plans. + +Failure to implement the activities that support the strategic plans negates the purpose of + +planning as well as negatively impacting the national development goals. + +I advised Government to ensure that going forward entities are supported by NPA in + +preparation of strategic plans that are realistic and that resources are provided to implement these plans. + +3.4.4 Delayed implementation of NDP III + +I noted that five (5) months into the NDP III implementation period, critical activities that should have been planned and undertaken before the NDP III became effective were still on going. For instance, the National Planning Authority was still developing action + +plans/strategies, no Government sector had an approved Sector Development Plan, and all the MDALGs were still developing their strategic plans for the period 2020-2025. + +In the absence of approved sector plans, I was unable to confirm the basis of the activities + +and outputs on which Government entities are implementing NDP III. There is a risk that + +77 + + + + + + + + + + + +the delays are going to subsequently affect the timelines of implementation of the NDP III + +and the overall achievement of the plan. + +I advised Government to develop comprehensive strategies of mitigating the effects of these delays and ensure that all Sectors and MDALGs expedite the preparation, alignment and + +approval of their strategic plans. + +3.4.5 Service delivery standards in Government + +I observed that that with the exception of Ministry of Health, all MDAs and Local Governments (LGs) lack documented Service Delivery Standards despite Ministry of Public Service issuing establishment notices guiding entities on the process of developing, documenting, dissemination and implementing Service Delivery Standards (SDS). The + +service delivery standards are meant to provide the minimum level of service in terms of + +quality and quantity expected from Government by citizens. + +Government through Ministry of Public Service had not enforcement action to ensure that + +MDAs and LGs comply. Absence of service delivery standards negatively affects public service performance and accountability. + +The Accounting Officer of MoLG explained that development of service delivery standards + +requires funding to complete the process yet MDALGS do not have the required funding and + +budget line. + +I advised Government to consider prioritizing the need to fund the development and approval of service delivery standards across Government as a way of improving service + +delivery. The Ministry should subsequently ensure that these standards once approved are adhered to. + +3.4.6 Unfunded Town Councils + +Government has over the last years created a Local Governments particularly Town Councils which should be financially independent from the Districts from which they were created in + +line with Section 79 of the Local Governments Act. + +Records reviewed indicated that Government had created a total of 584 town councils by + +June 2019/2020 out of which only 228 have been approved by MoFPED for direct access of + +resources from the national budget. As explained last year, it requires on average + +UGX.1.8bn to run a Town Council. This implies that the balance of 356 town councils would + +require approximately UGX.640.8bn for both development and operational costs. Failure to fund Town Councils significantly affects the ability of these Town Councils to Operate and + +deliver services. + +It appears that Government is increasingly finding challenges to provide the required funding for the newly created Town Councils. + +I have advised Government to ensure that for any additional administrative institutions, created, this should be matched with the available resources. + +78 + + + + + + + + + + + +3.5 Energy Sector 3.5.1 Unsustainable Deemed Energy Payments + +According to several Power Purchase Agreements (PPAs) and other implementation + +agreements signed between the Independent Power Producers (IPPs), GOU, and UETCL, + +Government committed to construct power evacuation infrastructure from the IPPs generation facilities to the distribution network upon commencement of generation of power + +by IPPs. The failure to dispatch power constitutes deemed Energy and UETCL shall make payments to IPPs for such Energy in accordance with the provisions in the agreements. + +I noted that the deemed energy claims by Achwa River Energy Project (ARPE) during the + +financial year had accumulated to UGX.64.69bn of which, only UGX.10.33bn was released + +through the MEMD leaving unpaid claims of UGX.54.36bn. As a result, GOU through UEDCL constructed an emergency double circuit power evacuation line at a cost of about UGX.34bn, + +which however has been found ineffective to evacuate all the power generated by the dam. + +Furthermore, a review of the deemed energy payment reconciliation schedules from UETCL + +established that UETCL incurred deemed energy payments for Mini Hydropower Plants + +amounting to USD.5.96 Million (approx. UGX.22.2bn) and USD.6.42 Million (approx. + +UGX.23.9bn) in the FYs 2018/2019 and 2019/2020, respectively. These payments were + +attributed to inadequate transmission infrastructure, line outages and insufficient demand in some instances. + +The deemed energy liabilities/payments amounting to UGX.46.1bn at UETCL as at 30 th June, + +2020 are unsustainable and cause a significant strain on Government resources. In addition, + +deemed energy charged through the tariff negatively impacts on consumer electricity prices, which may be a hindrance to electricity demand, thus slowing economic growth. + +Management at both the MEMD and UETCL explained that the deemed energy clause in power purchase agreements was initiated when Government had no sufficient power generation capacity to meet the demand. This was an initiative to attract investors in the + +electricity sub sector. However, Government has since transitioned from generation deficit to generation surplus, and therefore, the deemed energy clause has been removed from new power purchase agreements signed between UETCL and Power generation developers. + +I advised Management at MEMD and UETCL to liaise with the relevant stakeholders such as + +MoFPED and Development Partners to ensure that adequate funds are provided for construction of appropriate transmission infrastructure to evacuate any amount of power generated. In addition, the deemed energy liability incurred should be settled without + +further delay. Effort needs to also be made to renegotiate the earlier agreements entered + +into. + +3.5.2 Delayed commissioning of Karuma HPP + +General Condition of Contract (GCC) 17.1 of the Engineering Procurement Contract (EPC) + +provides that the time for completion of the Project, including time required for creation of + +construction facilities and Infrastructure Works, shall not exceed 60 months reckoned from + +79 + + + + + + + + + + + +the start date. The Effective Date was August 16, 2013 implying that the initial completion + +date of the dam was December 16, 2018. + +However, a review of the fourth quarter progress report revealed that the completion date + +for the Karuma HPP was extended to 30th November 2020, resulting into a delay of two (2) + +years from the initial planned commissioning date. This was majorly attributed to delays in + +land acquisition and the impact of Covid-19. + +The delays in project completion may result into increased supervision costs, additional costs arising from claims by the EPCC, and increased commitment fees payable on undrawn + +balances of the loan. As at 30 th June 2020 GoU had as a result paid commitment fees amounting to USD.11.9 Million. + +I advised management to expedite the construction of the Hydro Power Plant. In addition, management should continue engaging MEMD and relevant stakeholders in order to + +expedite the process of land acquisition/compensations. + +3.5.3 Undeclared Mineral imports and exports + +Section 38 (1) of the Mining Licensing Regulations 2019 states that Minerals obtained under + +a mineral right or under a mineral dealer’s license may only be exported under an export + +permit granted by the Commissioner. Similarly, Section 117 (1) states that the Commissioner may grant to any person an import permit to import minerals into Uganda on conditions + +prescribed by or under this section and specified in such permit. Sub Section (2) states that a person who imports any minerals under this section shall make a declaration before a customs officer regarding the type and quantity of minerals imported, after which the + +customs officer shall certify the import permit. Sub Section (3) further states that an import + +permit shall be issued only on payment of the prescribed fee. + +I noted from a review of URA customs data that 10,273 tonnes of exported Vermiculite worth UGX.8.3bn, were not declared to the Department of Geological Survey and Mining (DGSM) an as a result, royalties worth UGX.102.7 Million were not collected from vermiculite + +exports. + +Similarly, between FY 2017/2018 and FY 2019/2020, minerals, such as; Tantalum and + +Tungsten worth UGX.26.3bn were exported out of the country without export permits as required by the law. Without notification of the DGSM by URA customs as required, there + +could be significant potential revenue losses in terms of uncollected royalties. + +Management explained that in terms of mineral exports, the Ministry will continue engaging the URA to ensure that mineral exports are accompanied with permits. In addition, the Ministry has also provided procedures and requirements for Export of minerals out of the country to all customs border point including Entebbe International Airport. The Ministry will + +harmonise the exports from the URA with the one of the ministry and assess and collect the royalty due. + +I advised management at MEMD to liaise with URA to ensure that there is timely notification of the DGSM before minerals are imported or exported so as to ensure royalties have been computed, mineral origins are ascertained and import and export permits issued as required by the law. + +80 + + + + + + + + + + + +3.6 Water Sector 3.6.1 Encroachment on the Central Forest Reserves (CFRs) + +According to the 1990 biomass study, the national forest cover dropped from 24% (4,933,271ha) to 9.6% (1,938,990ha) in 2015. Similarly, the CFR under NFA dropped from + +16.04% (791,240ha) of the national forest cover to 10.2% (504,391ha) in the same period. + +This was largely caused by encroachment/deforestation due to population pressures; unclear CFR boundaries; inadequate coordination amongst stakeholders; inadequate supervision and + +enforcement; split of mandate from different forest players; inefficiencies in the planning + +process; inadequate stakeholder awareness, among others. Table below shows NFA’s forest + +cover from 1990 to the most current published biomass study; + +Central Forest Reserve Cover (Ha) + +1000000 800000 600000 + +400000 + +NFA Forest Cover (Ha) 200000 + +0 + +1990 2000 2005 2010 2015 + +I noted that Government interventions of afforestation, restoration, establishment of new + +plantations, and supervision and monitoring were not yielding the much required results due to the lack of coordination and the split mandate that puts forestry management under various Government institutions. + +Management at NFA attributed the slow progress of Government interventions to inadequate + +funding, encroachment on Government forest land due to population pressures and + +urbanization, competing needs such as agriculture and resettlement of landless people, inadequate community sensitization and support, among others. + +I advised Management at NFA to liaise with other sector institutions and improve on + +coordination efforts to ensure protection of all central forest reserves is prioritized. + +3.6.2 Administration of the National Environment Fund (NEF) + +The National Environment Fund (NEF) supports various activities of the National + +Environment Management Authority. The NEF consists of funds including; Disbursements + +from Government, Environmental levies, Fees charged for use of environmental resources + +and other fees charged under the National Environment Act, Administrative fines collected as a result of breach of the provisions of the Act; and Gifts, donations and other voluntary + +contributions to the Fund, with the approval of the Minister responsible for Finance. The NEMA Board is responsible for administration of the National Environment Fund. + +81 + + + + + + + + + + + +I noted due to the Government shift in the collection policy of the Non-Tax Revenue (NTR), the Fund remained un-operational during the year under review since subsequent collections in line with the Act are assessed by NEMA and paid into the Consolidated Fund through Uganda Revenue Authority. I further noted that not all the collections by URA are availed to + +the National Environment Management Authority through Government releases. + +Furthermore, as a result of the freeze on the operations of the NEF, UGX.2.4bn remains idle at Bank of Uganda, and the fate of outstanding receivables to the tune of UGX.12.2bn is in balance as there is no clear guidance of how URA or NEMA are going to enforce recoverability. + +The Government new NTR collection policy contravenes the law that established the Fund, and as a result NEMA’s ability to effectively implement activities such as management of + +sensitive and fragile ecosystems, critical environmental restoration activities, environmental resources management, and research intended to further the requirements of environmental management, capacity building, environmental publications and scholarships among others may be significantly affected. + +I advised NEMA management to engage the MoFPED and consult the Attorney General to ensure there is harmony between the new Government NTR collection policy and the Act + +establishing the Fund. + +3.7 Education Sector 3.7.1 Management of Research and Innovation Funds (RIF) in Universities + +High impact research and innovations in universities have the potential to accelerate economic growth in developing countries. Accordingly, during the year under review the Government of Uganda disbursed UGX.30.2bn to Makerere University for the purpose of + +research and innovations. I noted that a sum of UGX.22.1bn was spent on research and other research related activities leaving a balance of UGX.8.1bn unspent at the closure of + +the financial year. + +An analysis of the implementation status of the research projects revealed that 94 (26.8%) + +projects were fully implemented, 256 (72.9%) were partially implemented, while 1 (0.3%) + +project was not implemented. From the analysis, it is indicative that research projects + +cannot be completed within a year, thus the need for the research funds to be availed to + +universities over a long period of time, and not within the Government financial year. + +Furthermore, a review of the university IFMS expenditures revealed that funds amounting to UGX.5.10bn were transferred to the University Subvention Account after seeking approval from MoFPED and the Accountant General other than being transferred to the consolidated + +fund to cater for research projects that had not been finalized at the closure of the financial year. + +Management explained that research and innovation processes usually span a period beyond + +a single year. They further explained that the Covid-19 outbreak interrupted at least one + +third of the RIF’s implementation period (4 months) as it was essential to ensure safety of researchers and study participants while also observing research ethics. + +82 + + + + + + + + + + + +I advised the Accounting Officer to engage the Accountant General to consider creating Government Research Funds Accounts in Public universities, which should be separately governed and reported in accordance with the guidance that govern Fund Accounting. This + +would enable uninterrupted research activities while at the same time ensuring appropriate accountability. + +3.8 Works Sector + +3.8.1 Nugatory Expenditure in Interest on delayed payments to contractors - UGX.7.3bn + +UNRA made payments amounting to UGX.7.3bn that arose out of penalties for the court cases and interest on delayed payments of advances and Interim Payment certificates from + +various contractors. The expenses of interest on delayed payment are considered nugatory and should have been avoided had payments been effected within the contractual period. + +The issue was attributed to inadequate funding leading to the Authority’s inability to settle + +certificates of approved works within the contractual period, which makes contractors invoke the clause in the contract and claim interest on unpaid certificates. + +There is need for Government to prioritise timely payment of contractors to avoid the + +penalties imposed as a consequence of delayed payments. + +3.8.2 Engineering audit of selected road projects + +For the financial year 2019/2020, a total of 64 projects (Development, rehabilitation and + +bridge projects) with a total contract sum/value of UGX.12.5tn were under implementation by UNRA. A sample of thirteen (13) projects (development, rehabilitation and bridge + +projects) with a contract value of UGX.2.99tn were selected for audit. This sample + +represents 23.86% of the value of the 64 projects. + +Thirteen (13) UNRA projects were sampled for audit. Five (5) (38%) of the projects were + +observed to have been initiated without adequate planning, which translated into major design changes during implementation, multiple extensions of time for some projects, delays in design reviews, delays in issuing revised design reports for implementation, variations in + +quantities during implementation, cost and time extensions. For instance; + + + +- Relocation of facilities was underestimated for Kyenjojo-Kabwoya road project by over 127%. + + + +- The concept design for Masindi-Park junction-Tangi road project through Murchison falls National Park resulted in reduction of road width in the park section which may result in a potential nugatory expenditure of USD.4.88m. + +- Underestimation of quantities by UGX.16bn (11.95% of the original contract) for Kigumba Bulima-Kabwoya road project. In addition, there was an omission of about + + + +0.8Km of swamp sections of 4m average depth for the same road project resulting in + +four times the requirement for swamp treatment. + +83 + + + + + + + + + + + +- Underestimation of quantities for Masaka-Bukakata road project due to inadequacies in geotechnical investigations. + + + +- Absence of detailed design at contract commencement for Hima-Katunguru rehabilitation road project. + + + +The Accounting Officer explained that consultations are being made with utility companies to estimate relocations prior to issuance of bid documents. Consultations are also made with relevant MDAs where assessment of impact on biodiversity of the roads is required prior to issuance of the NEMA ESIA certificate. In addition the development of bills of quantities at design stage is being supervised by the Manager Quantity surveying before procurement of + +works contracts to minimize estimation errors. + +I advised the Accounting Officer to consult the key stakeholders during concept design. + +3.8.3 Slow progress of works on Kampala flyover construction and road upgrading project and the Northern Bypass + +Two major road projects, Kampala Flyover Project (KFOP) and the Kampala Northern Bypass + +Phase II (KNBP) have dragged on since 4 th May 2019 and 14 th July 2014 respectively. By end of September 2020 the progress of physical works on KFOP was estimated to be at 4.94% and the total contract time that had elapsed was 53.2%. For KNBP the progress of physical works was estimated to be 77.4% and the construction had been planned to take 36 month (3 years) has so far taken 78 months (6 and half years), which was a time lapse of 217% and still on-going. + +Slow progress of the works were attributed to; delayed access to site at various locations, + +delayed relocation of utilities obstructing the planned works, the addition and increased scope of works and quantities and limited equipment deployment in the early period of the projects. Delayed completion of works inconveniences surrounding business community and denies the intended beneficiaries timely use of the infrastructure and may result in escalation of project costs in terms of contractors’ claims. + +I advised the Accounting Officer to: + +- Ensure that the contractors are offered full access to the sites through timely + + + +compensation of the Project affected persons to avoid claims and notices to claim. + +- Ensure that the contractors fully mobilize the required equipment at the start of the + + + +Projects to enable timely execution of Project works. + + + +- Ensure more detailed feasibility studies and design review before commencement of the Projects to enable a more comprehensive estimation of the scope of works. + +3.8.4 Delays in completion of design reviews + +Design review is a key component of construction supervision for which any delay affects + +implementation of the projects leading to cost escalations. For 7 out of 13 road and bridge projects assessed, the following were observed in respect of delays: + + + +- For the Kyenjojo-Kabwoya project, the first design review of the road design report was delayed by 1 month while the final review was delayed by 9 months. + +84 + + + + + + + + + + + +- For the Akisim-Moroto road section, the first review of the road design report was delayed by 3 months while the final review delayed by 9 months. +- For Bulima-Kabwoya project, while the review was scheduled for 6 months, it was delayed by over 24 months. +- For Masaka-Bukakata road project, the design review delayed by over 60 months (5 + + + +years) with multiple reviews leading to a net increase in project cost of UGX.16.3bn. + +- For Fort Portal Hima road project, outstanding revised road designs were issued more than one year from date of submission of first drawings. +- For Hima-Katunguru project, there was delay in issuance of final design drawings by over 12 months. +- For the design and build of lot 3 bridges projects reviewed; the draft and final design that was to be submitted in 12 and 20 weeks respectively, was submitted in 16 and 32 weeks respectively. + + + +I advised the Accounting Officer to consider charging damages on consultants that fail to + +deliver design reviews on time. + +3.8.5 Delays in progress of works + +Three UNRA road projects assessed had significant delays in progress of works as shown + +below: + +- For Bulima-Kabwoya road project that was initially scheduled for 30 months, after 52 months the project has achieved 97% completion. +- Masaka-Bukakata road project had a 13.9% physical progress lag. +- A delay of over 44 days on Hima Katunguru road project (UGX.660m delay damages) was noted. + + + +I advised the Accounting Officer to put in place measures to ensure that the works are expedited and completed within the scheduled timelines. + +3.8.6 Lack of Disputes Boards + +Two road projects namely Akisim-Moroto project (under Defects Liability Period) and Fort + +Portal-Hima road project under construction did not have fully constituted dispute boards as required, that is; 90 days after commencement. The boards are necessary to resolve timely any disagreements between UNRA and the contractors that arise during contract + +implementation. + +The Accounting Officer explained that the delays were due to the contractor’s objection and + +preferred particular Dispute Boards. + +I advised the Accounting Officer to complete the process for constituting Dispute Boards for + +ongoing projects and always ensure timely appointments. + +85 + + + + + + + + + + + +3.9 + +Information Communication Technology Sector + +3.9.1 Outstanding 2% UCC levy + +In line with Section 5 sub-section (i)-(c) of the Uganda Communications Commission Act + +2013, UCC imposed a levy of 2% of the gross revenue of all broadcasting media houses to cater the completion of the digital migration process. + +I observed that no media house has so far paid this levy to UCC. However, UCC has neither followed up on the unpaid levy nor has it captured the outstanding amounts in its financial + +statements. Under the circumstances, the process of digital migration may not be completed + +as planned. + +The Accounting Officer attributed the delays to a petition made by the broadcasters to the Ministry of ICT & National Guidance against this obligation. + +I advised that there should be a follow up of this matter until it is resolved. + +3.10 Trade Sector + +3.10.1Government investments through Uganda Development Corporation (UDC) + +The Government of Uganda has made investments worth UGX.191.6bn in fourteen (14) + +projects since 2010 through UDC. However, the investments have been met with several + +challenges and progress is very slow. I noted eight (8) of the fourteen (14) projects are still at feasibility study phase after eight years of implementation. + +I further observed that the rate of funds absorption is low, with UGX.24bn unabsorbed at + +the close of the year. Also noted was that Management reallocated a total of UGX.9.4bn of investment funds to cater for recurrent headquarter operations, during the FY 2019/2020. + +The continued failure to utilize appropriated funds for the purposes intended hampers fulfilment of the UDC mission. + +3.10.2Inadequate Surveillance and testing by UNBS at Border Posts + +Uganda National Bureau of Standards had staff presence at only 27 out of the 170 border + +entry points. This was attributed to under staffing at the Bureau. Additionally, contrary to + +section 3(1) of the UNBS Act, I noted that various commodities were released by the Bureau + +due to absence of standards to test these commodities for conformity. Under the circumstances, there is a risk that sub-standard goods could have entered the Ugandan + +market since imports from 143 border entry points were not inspected and other goods are released due to absence of standards. + +I advised the Accounting Officer to ensure that all the border entry points are adequately + +deployed with staff to provide surveillance services and that more standards are developed for commodities that are regularly imported. + +86 + + + + + + + + + + + +3.11 Gender and Social Development Sector 3.11.1Youth Livelihood Programme + +The youth livelihood programme (YLP) is a rolling Government of Uganda Programme, + +targeting the poor and unemployed youth in all the districts in the country. To-date the + +programme has accumulatively enrolled 138,094 (48.3%) youth of the targeted 286,200. + +Similarly, of the targeted 23,850 youth projects, 12,118 (50.8%) have been funded as at + +30 th June 2020. + +Since inception of the Program, a total of UGX.102.74bn was disbursed, inclusive of + +UGX.9.45bn that was revolved, resulting into actual disbursement over the period of UGX.93.3bn. Out of the amount disbursed, only UGX.37.04bn (40%) was recovered leaving a balance of UGX.56.26bn outstanding. Of the recovered amount, only UGX.9.4bn (25.4%) + +was revolved to other youth groups, and UGX.2.12bn was not remitted to the National Recovery Account with BoU. The table below summarizes the program performance since its + +inception; + +Table 27: Showing programme performance since inception + +SN Category /year Total as of 2016/17 (a) During 2017/18 (b) During 2018/19 (c ) During 2019/2 0 (d Cumulative Totals as of 2019/20 +1 Number of Beneficiary Groups 3,289 4,599 4,218 12 12,118 +2 Number of beneficiary Individuals 38,552 52,836 46,569 137 138,094 +3 Number of benefiting districts 125 152 158 2 - +4 Amount Due for recovery (cumulative) 56.26bn +5 Amount recovered(cumulative) 37.04bn +6 Amount remitted to Bank of Uganda 8.15bn 15.60bn 4.06bn 7.11bn 34.92bn +7 Amount revolved 0 7.96bn 1.37bn 0.126bn 9.45bn +8 Amount disbursed but not from recovery 26.14bn 30.5bn 36.7bn - 93.3bn + Total amountdisbursed (6+7) 26.14bn 38.5bn 38.0bn 0.126bn 102.74bn + + + + +The Accounting Officer explained that recovery amounts declined due to the inadequate provision of operational funds to local Governments which was occasioned by inadequate + +releases from MoFPED as well as the Covid-19 pandemic affecting the financial year 2019/2020. The Ministry of Finance has engaged stakeholders to provide adequate funds to support LG monitoring and sensitization of the groups, and advised LGs to institute standing orders with the commercial banks to directly remit all recoveries to the BoU national + +recovery account. Furthermore, the ministry has developed the YLP Management Information System that is to be rolled out in the entire country to improve on information sharing. + +87 + + + + + + + + + + + +I advised the Accounting Officer to continue engaging stakeholders to roll out the system + +that would enhance processing of applications and disbursement of fund to the youth groups, and consider instituting memoranda of understanding with the commercial banks to ease transfer of revolving funds. + +3.11.2The Uganda Women Entrepreneurship Fund (UWEP) + +Uganda Women Entrepreneurship Program (UWEP) commenced in the Financial Year 2015/16, and it was designed to address the challenges women face in undertaking economically viable enterprises. Women are faced with challenges of; limited access to affordable credit, limited technical knowledge and skills for business development, limited access to markets, and limited information regarding business opportunities. + +As of 30 th June 2020, the total cumulative programme budget was UGX.149.3bn of which + +UGX.107.0bn (71.7%) had been released. Of the released amount, UGX.66.7bn (62.3%) was disbursed. Over the years, the Program performance can be summarized in the table + +below; + +Table 28: Showing programme performance over the years + +SN Category / year Total as of 2015/16 (a) Total as of 2016/17 (b) During 2017/18 (c) During 2018/1 9 (d) During 2019/20 (e) Cumulative Totals as of 2019/20 +1 Number ofbeneficiary groups 94 2,334 3,644 3,588 1,596 11,256 +2 Number of beneficiary Individuals 1,148 29,522 45,846 44,363 18,973 139,852 +3 Number ofbenefiting districts 7 104 140 145 71 +4 Cumulative amount due for recovery 22.4bn +5 Cumulative amount recovered 16.9bn +6 Amount revolved - - - - 0.941bn 0.941bn +7 Amount disbursed but not from recovery 0.456bn 12.11bn 20.88bn 23.25bn 9.99bn 66.7bn + Total amountdisbursed (6+7) 0.456bn 12.11bn 20.88bn 23.25bn 10.9bn 67.6bn + + + + +During the year under review, out of the budgeted UGX.30.3bn for UWEP activities, a sum of UGX.16.5bn (54.5%) was released indicating a budget shortfall of UGX.13.8bn (45.5%). Out + +of the released amount, only UGX.10.0bn (60.6%) was disbursed. + +Like in the Youth development programme, the Women Programme faced similar + +implementation challenges. There are still inadequacies in the rate of revolving and + +recovering the funds. Out of UGX.16.95bn recovered by June, 2020, only UGX.0.92bn had been revolved to other groups leaving a sum of UGX.16.0bn remaining un-revolved. In + +addition, UGX.5.4bn, constituting fully recoverable funds as at 30 th June, 2020, remained + +outstanding. Furthermore, recoveries by districts amounting to UGX.1.8bn were not remitted to the National Recovery Account with BOU, and recoveries amounting to UGX.0.61bn could + +88 + + + + + + + + + + + +not be tagged to any District Local Governments or individual women groups due to lack of reconciliations. + +The Accounting Officer explained that Management had undertaken steps to address the identified inadequacies including; writing to all LGs to institute standing orders to automatically transfer all funds recovered to the Central Recovery Account, and increased targeted support supervision visits to defaulting Local Governments together with Ministry of + +Local Government inspectors, and set up communication platforms for Regional Programme + +officers to ease constant reminders to Local Governments to transfer recovered funds. + +I advised the Accounting Officer to liaise with MoFPED and other stakeholders to have adequate funding for the program. In addition, procedures for improving the revolving fund mechanism should be enhanced. The reconciliation of district returns with the bank of Uganda statements should also be undertaken in a timely manner in addition to promptly + +updating the recovery ledgers. + +3.12 Cross cutting findings in Local Governments 3.12.1Delays in implementation of UGIFT projects + +A review of the project progress report was undertaken to establish the status of project + +completion. I noted that out of a sample of 31 Health Centres the following was observed; + + + +- One (1) project (Upgrade of Railway Health Centre II to Health Centre III in Kasese Municipal Council) has been completed. +- Ten (10) Health Centres were in progress. +- Construction of Twenty (20) Health centres had completion dates exceeded by 1 to 7 months. + +This implies that the project works may be extended beyond the planned timelines resulting + +into additional administrative costs and delays in project functionality. + +The Accounting Officers attributed the delays in the construction works to; the lockdown due to Covid-19 pandemic, heavy rains which rendered roads impassable and lack of + +capacity by the contractors to handle the work. + +I advised the Accounting Officers to strengthen supervision and monitoring of the projects + +and ensure quality works are achieved. + +3.12.2Management of Schools and Tertiary Institutions a) Staffing Gaps + +Audit of School/Institutions revealed staffing gaps, which varied across board. Analysis of 100 Schools and Tertiary Institutions, revealed that out of staffing establishment of 6,350, only 3,008 (47%) positions were filled. I noted the worst staffing Gaps in Gulu School of Clinical Officers and Ophthalmic Clinical Officer Training School - Jinja, where + +the percentage gaps were 93% and 85% respectively. + +89 + + + + + + + + + + + +The consequence of the above is poor quality of delivery of service, and work overload to the existing staff, which negatively affected effectiveness. Some schools cannot offer all subjects to the learners thereby affecting the quality of graduates. The + +challenge of staffing is worse in the rural schools as compared to the urban schools, due to preference by teachers to offer their services in the urban areas. + +I advised the Accounting Officers to continue engaging the district authorities and the + +line Ministry to address the staffing gaps. In addition, Government should consider incentives to attract teachers to rural areas. + +b) Untitled Land + +I noted during my audit that 88 Schools/Tertiary Institutions lacked title to their land, although some had initiated processes of titling. In the circumstances, there is risk of persons trespassing, encroaching on and/or grabbing School/ Institutions land. + +I advised the Accounting Officers of the School/ Institutions that had initiated + +processes of titling to expedite so that certificates of title are acquired. For those that had not started, I advised Accounting Officers to follow-up with the Ministry of Lands Housing & Urban Development and the District Land Boards to initiate the Processes. + +c) Status of physical progress of construction works in Seed Secondary Schools + +A review of the project progress report revealed that out of a population of 48 seed schools, a sample of 25 seed secondary schools’ construction works were still in progress and the status is as shown below; + +- One seed school (Nyakatonzi seed School in Kasese District) had been completed and handed over +- Eight seed schools were in progress with completion dates ranging from 2 to 23 months. +- Construction of Sixteen (16) seed schools had completion dates exceeded by 4 to + + + +5 months. The seed schools include; Kabushaho Seed Secondary School in + +Bushenyi District, Buyende Seed Secondary School at Buyende Sub County in + +Buyende District and Nyamarwa Seed Secondary school in Kibaale District among + +others. + +This implies that the project works may be extended beyond the planned timelines + +resulting into additional administrative costs and delays in project functionality. + +The Accounting Officers attributed the delays in the construction works to; The + +lockdown due to Covid-19 pandemic, Heavy rains which rendered roads impassable + +and Lacks capacity by the contractors to handle the work. + +I advised the Accounting Officers to strengthen supervision and monitoring of the project and ensure quality works are achieved. + +90 + + + + + + + + + + + +3.13 + +Highlights from the audit of Lower Local Governments for the period 2018/2019 + +3.13.1Budget implementation in sample LLGs for FY 2018/2019 + +During the financial year 2018/2019 I undertook an audit of 700 LLGs (Sub-counties, Town + +Councils and Divisions). I sampled 242 LLGs in the branches of Soroti and Mbale to assess the implementation of the budget and observed the following; + +- 242 LLGs sampled had approved budgeted total revenue amounting to UGX.47.27bn out of which UGX.42.28bn was received resulting in a shortfall of UGX.4.98bn majorly because of budget cuts. This represents revenue performance of 89%. + + + +- Out of the total receipts of UGX.42.28bn, UGX.42.36bn was spent by the LLGs which + + + +represent an absorption level of 100.2%. The excess expenditure was a result of + +utilisation of unremitted unspent balances from financial year 2017/2018 by some LLGs. + +- Out of the 242 LLGs reviewed, I analysed the extent of quantification for 194 LLGs that + + + +had well detailed work plans. From my analysis of these work plans I noted the + +following + + + +- Out of a total of 9,399 activities with total budget of UGX.36.46bn planned for + +implementation in the 194 sampled LLGs, I sampled and reviewed 3,603 activities with a budget of UGX.19.41bn representing 53.2% of the total budgets. Out of the 3,603 + +activities assessed, 2,048 activities representing 56.8% of the sampled activities were sufficiently quantified to enable measurement of performance while the balance of 1,555 activities representing 43.2% were insufficiently quantified + +I noted that in these cases management reported in generic ways without specifying numbers. Failure to quantify was attributed to capacity gaps in the planning function at + +the LLGs and lack of adequate guidance from the district. + +Failure to quantify activities makes it difficult to establish the reasonableness of individual activity costs for the planned activities, and curtails the effective accountability for funds subsequently spent. + + + +- Out of a total of 2,048 quantified activities, 1,680 (82%) were fully implemented, 188 (9.2%) activities were partially implemented, while 180 (8.8%) activities were not + +implemented at all. Failure to implement activities was attributed to limited funding and unrealistic budgets. Non implementation of planned activities implies that the expected + +services to the beneficiary communities were not attained. + +3.13.2Quality of Financial Statements + +In my previous year’s reports, I noted that there was still a problem with the presentation of + +financial statements in the Lower Local Governments. In the financial year under review, the shortcomings were still evident in 70 (16%) Sub-Counties out of 439 reported on. The + +anomalies included; + +91 + + + + + + + + + + + +Table 29: Summarising audit observations on financial statements + +SN Audit observation Quantification +1 Lack of board of survey report 29 Sub-Counties +2 Inconsistences in the amounts in the financial statement 18 Sub-Counties +3 Incomplete financial statement and notes 12 Sub-Counties +4 Errors in Financial Statements 7 Sub-Counties +5 Wrong presentation of figures in financial statement 4 Sub-Counties +Total 70 Sub-Counties + + + + +Preparation of financial statements is a stewardship role in which accountability for application of resources entrusted to Accounting Officers is reported to the stakeholders. Failure to present financial statements properly impairs interpretation and analysis of entity performances. + +The Accounting Officers attributed this to staff changes that were made in the middle of the financial year, difficulty in acquiring books of accounts from district stores and lack of + +training. I advised the Accounting Officers to liaise with responsible authorities to ensure + +that the staffing gaps are addressed and the necessary trainings undertaken. + +3.13.3Asset Management + +I noted that in 79 LLGs out of the 242 that were sampled, Management did not maintain + +updated fixed assets registers. Further, 166 LLGs did not have title deeds for land occupied + +by the LLG offices majorly because they had not surveyed and processed titles due to lack of + +funds. Failure to maintain updated assets registers and lack of title deeds expose council assets to misuse, encroachment and loss. I advised the Accounting Officers to maintain + +updated assets registers and secure ownership documents for all council assets as required by the regulations. + +3.13.4Implementation of staff performance management initiatives + +The Government of Uganda has been implementing Public Service Reforms since the 1990’s + +geared towards cultivating a performance culture focused on results, excellence and professionalism. Consequently, a number of performance management initiatives have been introduced for enhancing performance and service delivery in the Public Service. These + +include: Performance Agreements/Plans, Open Performance Appraisal System and a + +mechanism to monitor staff attendance among others. + +I undertook a review of the implementation of these initiatives in a sample of 215 LLGs out of the 242 and noted the following; + + + +- Out of a total of 215 Accounting Officers only 26% completed performance agreements as required. Out of a total of 2,205 staff 93% did not complete performance plans as required. The absence of performance agreements and plans limits effective accountability. I was also unable to ascertain the basis against which individual performance achievements were measured at the end of the assessment period. I + +advised the Accounting Officers to ensure that all staff develop performance + +agreements/plans in order to have a basis for assessment at the end of the period. + +92 + + + + + + + + + + + + + +- Out of a total of 2,420 staff, 82% did not complete performance appraisals as required. + +In the circumstances, management is unable to determine the extent to which set + +performance targets are achieved and is also unable to enforce the rewards and sanctions guidelines as they largely depend on the performance appraisal process. I advised that the Accounting Officers to ensure that staff performance appraisals are completed as required. + + + +- Out of a total of 2,420, 98% never completed quarterly performance reviews as + +required. This inhibited management from evaluating and identifying performance + +constraints to take remedial action. I advised the Accounting Officers to ensure quarterly performance reviews are undertaken to keep track of the activities planned in the financial year. + + + +- Out of a total of 215 sampled LLGS, 91(42%) did not have mechanisms of monitoring staff attendance. In the circumstances, management has failed to monitor and assess the timely availability of the human resources and this could lead to failure to achieve the planned strategic objectives. I advised the Accounting Officers to strengthen the monitoring mechanism. + +93 + + + + + + + + + + + +ANNEXURES + +ANNEXURE I: OTHER INFORMATION, ACCOUNTING OFFICER’S AND MY RESPONSIBILITIES ON THE CONSOLIDATED FINANCIAL STATEMENTS OF THE LOCAL GOVERNMENTS + +Other Information + +The Accounting Officer is responsible for the Other Information. The Other Information comprises the statement of responsibilities a statement from secretary to Treasury as statement from the + +Accountant General and other supplementary information. The Other Information does not include + +the financial statements and my auditors’ report thereon. My opinion on the financial statements + +does not cover the Other Information and I do not express an audit opinion or any form of assurance conclusion thereon. + +In connection with my audit of the financial statements, my responsibility is to read the Other + +Information and, in doing so, consider whether the Other Information is materially consistent with + +the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information; I am required to report that fact. I have nothing to report in this regard. + +Management’s Responsibility for the Financial Statements + +Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 + +of the PFMA, 2015(as amended), the Accounting Officer are accountable to Parliament for the funds + +and resources of the Local Government. + +The Accountant General is responsible for the preparation of the consolidated financial statements in accordance with the requirements of the PFMA, 2015(as amended) and the financial reporting + +guide, 2018 and for such internal control as management determines necessary to enable the preparation of consolidated financial statements that are free from material misstatement whether due to fraud or error. + +In preparing the consolidated financial statements, the Accountant General is responsible for assessing the Local Governments ability to continue delivering the mandate, disclosing, as + +applicable, matters related to affecting the delivery of the Local Government using the financial reporting guide 2018 and using unless the Accountant General has a realistic alternative to the + +contrary. + +The Accountant General is responsible for overseeing the Government’s financial reporting process. + +Auditor’s Responsibility + +My objectives are to obtain reasonable assurance about whether the financial statements as a + +whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a + +guarantee that an audit conducted in accordance with ISSAIs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered + +material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. + +94 + + + + + + + + + + + +As part of an audit in accordance with ISSAI’s, I exercise professional judgment and maintain + +professional scepticism throughout the audit. I also: + +- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. +- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Local Governments internal control. +- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. +- Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists + + + +related to events or conditions that may cast significant doubt on the Local Governments ability + +to deliver its mandate. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the consolidated financial + +statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are + +based on the audit evidence obtained up to the date of my auditor’s report. However, future + +events or conditions may cause the Local Governments to fail to deliver its mandate. + +- Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. + + + +I communicate with the Accounting Officer regarding, among other matters, the planned scope and + +timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. + +I also provide the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with him/her all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. + +From the matters communicated with the Accounting Officer, I determine those matters that were + +of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation + +precludes public disclosure about the matter or when, in extremely rare circumstances, I determine + +that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. + +95 + + + + + + + + + + + +ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS FOR MDAs, COMMISSIONS, STATUTORY CORPORATIONS AND STATE ENTERPRISES AND PROJECTS + +Sn SECTOR AND ENTITY AGRICULTURE SECTOR SUMMARY OF KEY FINDINGS +1 National Agriculture Advisory Services (NAADS)Opinion Unqualified  Out of the planned 4 strategic targets/goals to be achieved by NAADS; none was fully achieved while all 4 were partially achieved. Out of the budgeted revenue of UGX.3.6Bn for the financial year 2019/2020, only UGX.34,888,799 was collected representing performance of only 0.97% of the target. There was a shortfall in releases amounting to UGX.0.66Bn representing 0.45% of the budget. Furthermore, the entity remained with unspent balance of UGX.0.29Bn representing an absorption level of 99.8%. I sampled 5 out-puts with 46 activities worth UGX.134.44Bn representing 92% of the total budget and noted that 1 output with 9 activities and expenditure worth UGX.33.17Bn was insufficiently quantified;. I observed that out of the 9 activities, 06 activities (66.7%) were quantified while 3 activities (33.3%) were not clearly quantified. 3 outputs with 20 activities worth UGX.30.34Bn were not quantified at all to enable measurement of performance. Furthermore, of the 1 output with all 17 quantified activities worth UGX.70.93Bn assessed; 4 activities (22%) were fully implemented, 8 activities (45%) were partially implemented while 6 activities (33%) were not implemented. All 4 quarterly performance reports were submitted after the quarterly deadline. Arrears totalling to UGX.13.23Bn remained unsettled at close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. There was no budget for domestic arrears for the year under review. I noted long outstanding receivable to a tune of UGX.2.38Bn from prior years with no movement. These receivables relate to amounts that were held by the Local Governments at the time of restructuring representing assets that are lying idle. LCs amounting to UGX.5.46Bn for services to be provided remained un- performed for a period of more than two (2) financial years. Further, I noted that the Secretariat incurred LC opening charges worth UGX.657,830,036 in the year. As at the close of the financial year, LCs to a tune of UGX.17.3Bn were opened in favour of a local company for sugar cane project works in Lamwo District despite outstanding works on the contracts to a tune of UGX.9.6Bn. UGX.26,717,484,460 was budgeted under travel inland, other structures and machinery and equipment during the financial year 2019-2020 but these funds were instead utilized for payment of agricultural supplies. Shortcomings were noted in the Management of NAADS strategic interventions like non-adherence to Standing Orders of Procedure (SOP) for Operation Wealth Creation, delayed implementation of projects and delayed Project takeoff. I noted that the entity procured 18 vehicles in the last three years at a cost of UGX.2.9bn Shortcomings were observed in the agency’s fleet management which included; unplanned acquisition of cars, all vehicles were recorded without sufficient details as required by the accountant General, lack of a fleet management policy and the budget for maintenance over the previous three years was under funded by UGX.2.7Bn. Several procurement anomalies were noted like failure to execute + + + + +96 + + + + + + + + + + + + performance security, inappropriate procurement method and non- consideration of evaluation criteria. +2 National Animal Genetic resource centre and Data Bank (NAGRIC &DB)Opinion Unqualified  I noted that out of the planned 22 strategic targets/objectives, none of the objectives had been fully achieved, 19 were partially achieved while 3 were not achieved at all. There was a shortfall in NTR collections amounting to UGX.0.508bn representing 39% and a shortfall in GOU releases amounting to UGX.3.86bn representing 5.88%. I sampled 29 outputs with 60 activities and expenditure of UGX.61.814Bn and noted that 24 outputs with 51 activities and expenditure worth UGX.55.964Bn were fully quantified, 3 outputs with 7 activities and expenditure worth UGX.5.835Bn were insufficiently quantified of which 3 activities (43%) were quantified to enable measurement of performance while 4 activities (57%) were not clearly quantified. 2 out-puts with 2 activities and expenditure of UGX.0.015bn were not quantified at all. Further, I assessed the 24 outputs that were fully quantified worth UGX.55.964Bn and noted that 6 outputs with 6 activities worth UGX.0.606BN were full implemented, 16 out puts with 43 activities worth UGX.54.708BN were partially implemented that is out of the 43 activities, the entity fully implemented 9 activities (21%), 24 activities (56%) were partially implemented while 10 activities (23%) remained unimplemented. 2 outputs with a total of 2 activities worth UGX.0.650Bn were not implemented at all. There was no evidence of submission of monitoring reports to OPM, MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. Further, the entity submitted performance reports for the 4 quarters after the submission deadline with an average delay of 13 days. I noted 5 cases where the reported level of performance was inconsistent with my verification results. Domestic arrears decreased by UGX.0.536Bn (54%) from UGX.0.9897Bn in the previous year to UGX.0.454Bn in the year under review. Further, no budget provision was provided for settlement of domestic arrears in the current year budget. I noted that the entity made a loss estimated at UGX.0.539BN through death and theft of livestock and poultry coupled with unguided livestock donations. Shortcomings were noted in the management of the entity land. These include; inadequate Board guidance on land donations at the farms, land encroachment and inadequate land titling. I observed that projects worth UGX.20.055BN undertaken during the financial year were not handed over for use because they were either incomplete, substandard or abandoned and there was slow recovery of advance payments to contractors with outstanding amount of UGX.2.9Bn. I noted that the entity procured 11 vehicles in the last three years at a cost of 2.9Bn. Shortcomings were noted in the implementation of the fleet management policies. The gaps identified include unplanned acquisition of cars, lack of fleet management policy, lack of a transport officer, improper recording of all 23 vehicles in the assets register, failure to undertake regular vehicle inspections and reconciliations, lack of fuel registers, vehicle journey log books and non-maintenance of motor vehicle service analysis records. I noted contravention of procurement regulations and laws such as missing procurement records of UGX.8.3Bn, irregular/unjustified direct procurements of UGX.12.6, and inadequate market price assessment leading to payments of UGX.1.6Bn above market prices. Out of 175 employees required by the entity, only 86 positions have been filled leaving a staffing gap of 90 employees (51%). I also noted 5 staff in acting capacity as farm manager for an average period of 24 months. + + + + +97 + + + + + + + + + + + +3 National Agricultural Research Organization (NARO)Opinion Unqualified  I noted that the strategic targets were not quantified and therefore, I was unable to measure the extent of performance in the two financial years. There was a shortfall in NTR collections amounting to UGX.0.761bn representing 17% and a shortfall in GOU releases amounting to UGX.22.559bn representing 28%. The entity received off-budget financing to a tune of UGX.52.139bn which was not appropriated as part of the entity budget contrary to the law. I sampled 9 outputs with 60 activities and expenditure of UGX.57.103Bn and noted that 2 outputs with 5 activities and expenditure worth UGX.11.580Bn were fully quantified, 2 outputs with 16 activities and expenditure worth UGX.1.73Bn were insufficiently quantified of which 4 activities (25%) were quantified to enable measurement of performance while 12 activities (75%) were not clearly quantified. 5 out-puts with 39 activities and expenditure of UGX.43.8bn were not quantified at all. Further, I observed that; the 2 outputs that were fully quantified worth UGX.11.580Bn partially implemented, i.e. out of the five (5) activities, the entity implemented three (3) activities (60%) while two (2) activities (40%) remained unimplemented. I observed that funds to the tune of UGX.0.245Bn were charged to wrong expenditure codes by the entity. The entity did not submit monitoring reports to OPM, MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The entity submitted performance reports for the 4 quarters after the submission deadline with an average delay of 40 days. Domestic arrears increased by UGX.042Bn from UGX.1.3Bn in the previous year to UGX.1.7Bn in the year under review. Further, no budget provision was provided for settlement of domestic arrears in the current year budget. 26 parcels of land under NaFIRRI-Jinja with lease hold tenure system lacked land titles and I also noted that 17 parcels of NARO land located across the country had been encroached on by both private and public developers. Shortcomings were noted in the implementation of the fleet management policies. The gaps identified include vehicles not properly recorded in the assets register, vehicle inspections not undertaken and reconciliations not regularity done, lack of fuel registers, vehicle journey log books not maintained and non-maintenance of motor vehicle service analysis records. Out of 995 employees required by the entity, only 868 positions have been filled leaving a staffing gap of 127 employees (12%). +4 Ministry of Agriculture Animal Industry and Fisheries (MAAIF)Opinion Unqualified  Out of the planned 18 strategic targets/goals, 8 targets were fully achieved, 9 targets were partially achieved and 1 was not achieved at all. There was a shortfall in NTR collections amounting to UGX.6.41bn representing 71% and a shortfall in GOU releases amounting to UGX.40.3bn representing 22%. The Ministry received off-budget financing to a tune of UGX.3.29bn that was not appropriated as part of the entity budget contrary to the law. I assessed all the sampled 60 outputs with a total of 175 activities and actual expenditure of UGX.105.43Bn which were fully quantified by management. I observed that; 34 outputs with a total of 88 activities worth UGX.61.01Bn were fully implemented. 25 outputs with a total of 82 activities worth UGX.44.42Bn were partially implemented; Out of the 82 activities, the entity fully implemented 35 activities (42%), partially implemented 40 activities (49%) and while 7 activities (9%) remained unimplemented. 1 output with a total of 5 activities was not implemented at all. The Ministry prepared the annual monitoring plans however; there was no evidence to show that the plans were duly submitted to MoFPED and NPA as + + + + +98 + + + + + + + + + + + + required. Further, I noted that the Ministry submitted performance reports to MoFPED after the deadline given for submission of the reports. Domestic arrears decreased by UGX.11.7Bn from UGX.24.7Bn in the previous year to UGX.12.96Bn in the year under review. Further, a paltry UGX.593,425,402 budget provision was provided for settlement of domestic arrears in the current year budget. Management did not provide details of ownership of the land acquisitions worth UGX.11,525,000,000 made during the year and was yet to obtain the titles of the said land. I noted shortcomings in management of the contingency funds for desert locusts such as lack of accountability report and unaccounted for funds worth UGX.98,601,479. Shortcomings were observed in the Ministry’s fleet management which included non-compliance with Government ban on acquisition of motor vehicles, inaccurate recording of motor vehicles in the assets register, un- updated assets management module, lack of a fleet management policy and guidelines, unplanned acquisition of motor vehicles, non-compliance with vehicle standardization guidelines of government, motor vehicle allocation to non-entitled officers and failure to update motor vehicle allocation records. I noted several significant procurement irregularities and these included; irregular contract award above prevailing market prices, poor contract performance, failure to provide for liquidated damages in contracts, irregular advance payments, failure to obtain solicitor general approvals, irregular contract awards and failure to perform on emergency supplies among others. +5 Enhancing National Food Security Through Increased Rice ProductionOpinion Unqualified  I observed that the project is meant to close in 2 years’ time (2022) however, no civil works for the establishment of water storage infrastructure for irrigation have commenced. Further, the project has not yet commenced with production of rice, supply of inputs, processing of rice and marketing at nucleus farms. The project has not applied with NEMA for the Wetland Resource Use Permit. This may result into delay of establishing water storage infrastructure as well as fines & penalties being charged on the project by NEMA. +6 Agriculture Cluster Development Program (ACDP)Opinion Unqualified  Out of the planned five (5) strategic targets/goals, no target was fully achieved, four (4) targets were partially achieved and one (1) was not achieved at all. There was a shortfall in releases of UGX.50.39Bn which is 17.7% of the budget. Further, the entity remained with un spent balance of UGX.143.6Bn representing an absorption level of 38%. I sampled 10 out puts worth UGX.78.5Bn and noted that all the 10 outputs with a total of 160 activities were fully quantified. Further, out of the 10 outputs that were fully quantified, I observed that; no output was fully implemented, all outputs with 160 activities worth UGX.78.5bn were partially implemented of which 22 activities (14%) were fully implemented, 78 activities (49%) were partially implemented while 60 activities (37%) remained unimplemented. I noted that only 60,876 (21%) farmers were provided with inputs making a cumulative total of 89,894 beneficiaries instead of budgeted and targeted 293,500 beneficiaries. Further, UGX.1.2Bn was spent off the E-voucher system for supply of inputs contrary to operational guidelines thus exposing the project to a risk of fraud. There was low progression of farmers from cycle 1 across to cycle 3. Out of the 9,240 beneficiaries that received inputs in cycle 1, only 1,388 farmers progressed to cycle 2 which accounts for 15% progression between the + + + + +99 + + + + + + + + + + + + cycles. United Bank of Africa (IBA) hadn’t established a project management office to work daily with the Project team which limits knowledge transfer when the UBA contract expires in March 2021 thus hindering continuity of the operations of the e-voucher program. I noted that only 109 grantees received funding from MAAIF for the matching grant sub-component after fulfilling their own contribution (33%) and 9 grantees were still mobilizing for their contribution out of the planned 294 successful farmer organizations and 850 farmer groups during the year due to financial challenges. Further, I noted that most of the beneficiaries/grantees from the 109 co-operatives that benefited from the matching grant were not profiled, registered and had not participated in the e-voucher program as required before they accessed the subsidy. UGX.532,021,000 was spent on an Impact Evaluation Study for the ACDP subsidy streams to assess which one leads to higher up-take of inputs during and after three cropping cycles. As a result of many challenges, it was realized that the study was no longer feasible thus leading to its cancellation and failure to achieve intended objective. I noted that the NPSC did not hold any meeting in the year under review as required by the project appraisal document to meet regularly twice per year and at other times as needed. +7 Regional Pastoral Livelihoods Resilience Project (RPLRP)Opinion Unqualified  The project delayed to commence by 492 days which has led to delayed completion of the project activities and subsequent extension of project timeline from the initial date of 31st December, 2019 to 31st March, 2021. Out of the planned 14 strategic targets to be achieved by project closure; 6 were fully achieved, 5 were partially achieved while 3 were not achieved at all. There was a shortfall in releases of UGX.41.54Bn which is 71% of the budget. Further, the entity remained with an unspent balance of UGX.32.68Bn representing an absorption level of 54.8%. I sampled 18 out-puts worth UGX.39.66bn and noted that all the 18 outputs with a total of 97 activities were fully quantified. Further, out of the 18 out puts that were fully quantified, I observed that; none of the outputs was fully implemented. 13 outputs with 87 activities worth UGX.39.6Bn were partially implemented of which 31 activities (35.5%) were fully implemented, 25 activities (29%) were partially implemented and 31 activities (35.5%) remained unimplemented. 5 outputs with a total of 10 activities were not implemented at all. Construction works for 4 valley dams and 8 valley tanks worth UGX.43,729,233,684 were past the completion time of August 2020 and works are still behind schedule. A review of the National Steering committee (NSC) minutes indicated that it held only one meeting in the year under review while the District Steering Committee did not hold any meeting throughout the entire year contrary to Paragraph 14 & 19 of the Project Appraisal Document, 2014 that requires the NSC to meet at least twice a year. It was also noted that no Internal Audit Reviews for project activities were conducted by the District Internal Auditors as required by the guidelines. +8 Multi-sectoral Food Security & Nutrition ProjectOpinion Unqualified  Out of the planned fourteen (14) strategic targets/goals, eight (8) targets had been fully achieved and six (6) were partially achieved. There was a shortfall in GOU releases of UGX.0.08Bn which is 31% of the GOU co-funding budget. Further, the entity remained with an unspent balance of UGX.17.76Bn representing an absorption level of 55.19%. I sampled 8 outputs with 64 activities and expenditure of UGX.21.87Bn and + + + + +100 + + + + + + + + + + + + noted that 6 outputs with 35 activities and expenditure worth UGX.16.4Bn were fully quantified. 2 outputs with 29 activities and expenditure worth UGX.5.4Bn were insufficiently quantified of which 22 activities (76%) were quantified to enable measurement of performance while 7 activities (24%) were not clearly quantified. Further, out of the 6 out puts that were fully quantified, I observed that; 2 outputs with 15 activities worth UGX.13.77Bn were fully implemented and 4 outputs with 20 activities worth UGX.2.701Bn were partially implemented of which 10 activities (50%) were fully implemented, 9 activities (45%) were partially implemented while 1 activity (5%) remained unimplemented. I noted under-remittances to the tune of UGX.82,500,000 after re- computation of all transfers from the designated US $ account in BoU to the operations account during the year. It was noted that the project delayed to commence by 156 days which has led to delayed completion of the project activities and subsequent granting by the World Bank of a one year no cost extension timeline. I noted that the Inter-Ministerial Project Steering Committee did not hold any meeting during the year under review contrary to the requirement to meet at least once every six months during the project implementation period. Project funds to the tune of UGX.428,760,000 were disbursed late (in December) to the primary schools for the implementation of the second quarter work plan (October-December 2019) resulting into delayed implementation of planned activities. The Project Implementation Support Mission selected 5 thematic areas for operational research studies by the project but only 3 studies were undertaken thus affecting service delivery to the beneficiary communities. +9 Uganda Strategic Analysis and Knowledge Support System (USAKSS)Opinion Unqualified  There was a shortfall in releases of UGX.0.104Bn which is 40% of the budget. I assessed implementation of all 3 out-puts with 7 activities worth UGX.0.154Bn representing 100% of the total budget and noted that 2 outputs with 4 activities worth UGX.0.134Bn were fully implemented while 1 output with a total of 3 activities worth UGX.0.020 was partially implemented. Out of the 3 activities, the entity fully implemented 2 activities (67%) while 1 activity (33%) remained unimplemented. +10 Coordinating Office for the Control of Trypanosomiasis in Uganda (COCTU)Opinion Unqualified  Out of the planned sixteen (16) strategic targets/goals, four (4) targets were fully achieved, eleven (11) targets were partially achieved and one (1) was not achieved at all. There was a shortfall in releases of UGX.1.36Bn which is 24% of the budget. Further, the entity did not remain with any un spent balance representing an absorption level of 100%. COCTU received off-budget financing to a tune of UGX.1,497Bn which was not transferred to the consolidated fund as required by the law. I sampled 9 out puts worth UGX.5.74Bn and noted that all the 9 outputs with a total of 77 activities were fully quantified. Furthermore, out of the 9 outputs that were fully quantified, I observed that; 2 outputs with 16 activities worth UGX.0.82 Bn were fully implemented and Seven (7) outputs with a total of sixty-one (61) activities worth UGX 4.92Bn were partially implemented. Out of the 61 activities, 35 activities (57%) were fully implemented, 8 activities (13%) were partially implemented while 18 activities (30%) remained unimplemented. Shortcomings were observed in the Council’s fleet management which included Shortcomings were observed in the Council’s fleet management which included failure to capture vehicles in the fixed assets module of the GFMIS due to delayed enrollment and integration with Integrated Financial Management system (IFMS), delayed board off of 1 non-functional vehicle + + + + +101 + + + + + + + + + + + + and failure to have a policy on Motor vehicle management to guide the usage and eliminate theft, losses, wastage and misuse of motor vehicles. Out of the approved staff structure of 37 positions 19 positions have been filled, leaving 18 positions vacant. Management of COCTU has not operationalized Staff Medical Insurance Policy for its staff Contrary to the Human Resource Manual. +11 Uganda Coffee Development Authority (UCDA)Opinion Unqualified  I noted that out of the planned 18 high level targets for the five year transition period, 6 targets had been fully achieved and 12 were partially achieved. There was a shortfall in NTR collections amounting to UGX.3.351bn representing 15% and a shortfall in GOU releases amounting to UGX.4.453bn representing 4.6%. The entity received off-budget financing to a tune of UGX.0.443bn which was not appropriated as part of the entity budget contrary to the law. Out of the total warrants for the financial year of UGX.92.248bn, only UGX.89.420bn was spent by the entity resulting in an unspent balance of UGX.2.763bn representing an absorption level of 97%. I sampled 7 outputs with 44 activities and expenditure of UGX.73.7bn and noted that 2 outputs with 6 activities and expenditure worth UGX.0.274bn were fully quantified, 4 outputs with 36 activities and expenditure worth UGX.72.077bn were insufficiently quantified of which 30 activities (83.7%) were quantified to enable measurement of performance while 6 activities (16.3%) were not clearly quantified. 1 output with 2 activities and expenditure worth UGX.1,435,941,056 was not quantified at all to enable assessment of performance. Further, I observed that; the 2 outputs that were fully quantified worth UGX.0.274bn were partially implemented. Out of the 6 activities, the entity implemented 2 activities while 2 activities were partially implemented and 2 activities were not implemented at all. The entity did not submit monitoring reports to OPM, MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The entity submitted the 3rd quarter performance report 3 days after the submission deadline. Domestic arrears decreased by UGX.20.866bn from UGX.141.249bn in the previous year to UGX.120.383bn in the year under review. Further, no budget provision was provided for settlement of domestic arrears in the current year budget. I noted that at the time of the audit which is four (4) months after the year end, the Board of Directors was non-existent. I noted that there is inadequate monetary contributions information to international organizations and i could not ascertain basis and accuracy of the support provided amounting to UGX.1.46bn in the year under review. Shortcomings were noted in the implementation of the fleet management policies. The gaps identified include inadequate recording of vehicles in the assets register, failure to undertake vehicle inspections and reconciliations regularity, lack of fuel registers, vehicle journey log books not maintained and non-maintenance of motor vehicle service analysis records. Out of 224 employees required by the entity, only 126 positions have been filled leaving a staffing gap of 98 employees (43.8%). +12 Vegetable Oil Development Project (VODP)Opinion Unqualified  Out of the planned 20 strategic targets to be achieved by project closure; 12 were fully achieved while 8 were partially achieved. There was a shortfall in releases amounting to UGX.1.082 bn representing 6%. Further, the entity remained with unspent balance of UGX.0.303 bn representing an absorption level of 98.4%. I sampled 7 outputs with 57 activities and expenditure of UGX.17.750Bn and + + + + +102 + + + + + + + + + + + + noted that 6 outputs with 37 activities and expenditure worth UGX.14.711Bn were fully quantified. 1 output with 20 activities and expenditure worth UGX.3.039Bn was insufficiently quantified of which 14 activities (70%) were quantified to enable measurement of performance while 6 activities (30%) were not clearly quantified. Further, out of the 6 out puts that were fully quantified, I observed that; 5 outputs with 9 activities worth UGX.2.979Bn were fully implemented and 1 output with 28 activities worth UGX.11.732Bn was partially implemented of which 21 activities (75%) were implemented and 7 activities (25%) remained unimplemented. GOU planned to acquire 6500 hectares of land for the Nucleus estate in Buvuma to be handed over to BIDCO-OPBL. However, only 5,114 hectares were acquired and offered to BIDCO-OPBL. To date, leases for 1,885 hectares have been finalized, certificates of title for 1,417.7 hectares are before ULC yet to be finalized and the remaining 1,811.3 hectares are undergoing sub-division and registration. By time of closure of the project, KOPGT received dividends amounting to UGX.16.09bn from OPUL as the return on investment made by GOU to acquire land and lease the same to OPUL however, there were no clear guidelines to guide on how the funds should be managed. The lack of guidelines may result into mismanagement of the funds. At the time of the closure of the project, VODP2 (KOPGT) recovered and remitted UGX.29.11Bn from smallholder farmers of Kalangala to the consolidated fund, however these funds have not been utilized to finance smallholder plantation development in Buvuma contrary to Paragraph 108 of the VODP2 project design document. It was noted that the four (4) bank accounts with a balance of UGX.113m were yet to be closed in line with TAIs. Failure to close project accounts exposes the un-utilized funds to misuse. Assets of the project such as furniture, motor vehicles, motor cycles, computers; GPS, Tablet, etc. had not been handed over to the mother Ministry for further reallocation and sustainability. +13 Cotton Development Organisation (CDO)Opinion Unqualified  Out of the planned 5 strategic goals to be achieved by the Agency; none was fully achieved while all the five (05) were partially achieved. Out of the budgeted NTR revenue of UGX.4.22Bn for the financial year 2019/2020, only UGX.2.968 was collected representing performance of 70.3% of the target. I noted a shortfall in releases amounting to UGX.1.4bn representing 16.2% of the budget. Furthermore, the entity remained with unspent balance of UGX.0.05Bn representing an absorption level of 99.3%. I sampled 5 out-puts with 40 activities worth UGX.6.79Bn representing 95% of the total budget and noted that 3 outputs with a total of 25 activities and expenditure worth UGX.5.74Bn were insufficiently quantified i.e. out of the 25 activities, 6 activities (24%) were quantified while 19 activities (76%) were not clearly quantified to enable assessment of performance. 1 output with a total of 14 activities and expenditure worth UGX.0.45Bn was not quantified at all. Furthermore, the 1 quantified activity worth UGX.59Bn assessed was partially implemented. The Agency did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. Further, it also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required. 3 quarterly performance reports were submitted after the deadline of the quarterly submission deadline which affects the timely evaluation of performance. Shortcomings were observed in the Agency’s fleet management which + + + + +103 + + + + + + + + + + + + included incomplete recording of motor vehicles in the assets register, failure to maintain proper vehicle movement log books, absence of annual motor vehicle inspections and non-maintenance of motor vehicle service analysis records. Out of the approved staff structure of 46 positions 35 positions have been filled, leaving 11 positions vacant. +14 Dairy Development Authority (DDA)Opinion Unqualified  All the 5 strategic objectives to be achieved by the Agency for the strategic period did not have clear targets and I could therefore not assess their performance thus curtailing effective accountability for funds appropriated. Out of the budgeted revenue of UGX 0.39Bn for the financial year 2019/2020, UGX 0.35Bn was collected representing performance of 90% of the target. There was a shortfall in releases amounting to UGX.2.77Bn representing 27% of the budget. Furthermore, the entity remained with unspent balance of UGX.0.029Bn representing an absorption level of 99.6%. I sampled 5 out-puts with 13 activities worth UGX.7.27Bn representing 98% of the total budget and noted that none of the activities were quantified. Further, as a result I could not assess performance of the outputs. The Authority did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. 3 quarterly performance reports were submitted after the deadline for the quarterly submission. I also noted Inconsistencies between actual and reported performance. Arrears totalling to UGX.0.047Bn remained unsettled at close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. UGX. 632,800,094 were utilized for payment of machinery and equipment, transport equipment and maintenance-civil, fuel, travel abroad, welfare and consultancy but the funds had been irregularly budgeted under Medical and Agricultural supplies. The Authority has failed to collect CESS revenue compensation from MoFPED contrary to the presidential directive requiring the same. Several challenges were noted regarding the DDA management of properties such as lack of Land titles, expired leases, land encroachment, litigations, dilapidated and non-functional properties. I noted that the entity procured 3 vehicles in the last three years at a cost of UGX.0.56Bn Shortcomings were observed in the entity’s fleet management which included; non-compliance with Government ban on procurement of vehicles, unplanned acquisition of cars, incomplete maintenance of vehicle records, lack of a fleet management policy, failure to maintain fuel registers, failure to maintain proper vehicle log books and absence of Annual vehicle inspections. The Authority had no governing board in place which adversely impacted the entity operations. Out of the approved 140 posts, only 64 were filled; representing 45.7% of the approved posts. +15 Agriculture Value Chain Development Program (AVCDP)Opinion Unqualified  Out of the planned twelve (12) strategic targets/goals to be achieved by financial year 2019/2020; two (2) had been fully achieved, five (5) were partially achieved while five (5) were not achieved at all. There was a shortfall in releases of UGX.6.9Bn which is 61% of the budget. Further, the entity remained with unspent balance of UGX.2.9Bn representing an absorption level of 62%. I reviewed all the sixteen (16) outputs with 110 activities worth UGX.1.52Bn and noted that all the 16 outputs with a total of 110 activities were fully + + + + +104 + + + + + + + + + + + + quantified. Further, out of the 16 outputs that were fully quantified, I observed that; no output was fully implemented; six (6) outputs with a total of sixty-one (61) activities worth UGX.1.52Bn were partially implemented i.e. out of the 61 activities, 17 activities (28%) were fully implemented, 5 activities (8%) were partially implemented while 39 activities (64%) remained unimplemented. 10 outputs with a total of 49 activities were not implemented at all. I noted that the Project commencement date was delayed by more than seven (7) months i.e. 224 days and by the time of audit, the project was at 20% timeframe although it should have been at 40%. I noted that the annual interest charge payable on the unwithdrawn project funds amounts to USD 175,620 (UGX 654,243,403.81 as at 30th June 2020). This resulted into nugatory expenditure in form of interest charges and delayed service delivery to beneficiaries. +16 National Oil Palm Project (NOPP)Opinion Unqualified  Out of the planned 16 strategic targets to be achieved by project closure; none was fully achieved, 1 was partially achieved while 15 were not achieved at all. There was a shortfall in releases amounting to UGX.37.308bn (UGX.23.5bn representing 53% of the donor component and UGX.13.808Bn representing 69% of the GOU co-funding). Further, the entity remained with unspent balance of UGX.18.426bn representing an absorption level of 32%. I sampled 9 outputs with 101 activities and expenditure of UGX.8.646Bn and noted that 1 output with 10 activities and expenditure worth UGX.0.74Bn was fully quantified. 1 output with 21 activities and nil expenditure was insufficiently quantified of which 9 activities (43%) were quantified to enable measurement of performance while 12 activities (57%) were not clearly quantified. 7 outputs with 70 activities and expenditure worth UGX.7.905Bn were not quantified at all to enable assessment of performance. Further, the 1 output that was fully quantified with 10 activities worth UGX.0.740Bn was partially implemented. Out of the ten (10) activities, the entity implemented 2 activities (20%) while 8 activities (80%) remained unimplemented. + JUSTICE LAW AND ORDER SECTOR +1 Judiciary DepartmentOpinion Unqualified  I noted that out of the planned 62 strategic Interventions; nine (9) targets had been fully achieved, thirty (30) partially achieved, sixteen (16) not achieved at all, three (3) had no set targets making it difficult to evaluate them, while data for four (4) was not availed to audit. There was a shortfall in NTR collections amounting to UGX.1.05bn representing 17% and a shortfall in GoU releases amounting to UGX.2.7bn representing 1.4%. I reviewed 11 outputs with 58 activities and expenditure of UGX. 187.46bn and noted that 9 outputs with 50 activities and expenditure worth UGX. 184.575bn were fully quantified, 2 outputs with 8 activities and expenditure worth UGX.2.883Bn were not quantified at all. Further, I observed that nine (9) outputs with a total of fifty (50) activities worth UGX.184.575bn were partially implemented. Out of the fifty (50) activities, the entity fully implemented thirty (30) activities (60%), sixteen (16) activities (32%) were partially implemented, three (3) activities (6%) were not implemented, and two (2) activities (2%) were not planned. The Judiciary did not prepare and submit the annual monitoring plans to MoFPED, NPA and Office of the Prime Minister and MoFPED as required by Paragraph 58 of the Budget Execution Circular for 2019/20. The entity submitted performance reports for the 4 quarters after the + + + + +105 + + + + + + + + + + + + submission deadline with an average delay of 40 days. Domestic arrears increased by UGX.2.64Bn from UGX.9.64Bn in the previous year to UGX.12.27Bn in the year under review. Further, only UGX.11,868,000 (1%) was provided for settlement of domestic arrears in the current year budget. Further, the balance carried forward includes money forfeited by defendants on jumping bail or skipping Court sessions. This money ought to have been transferred to the Consolidated Fund (CF) but this was not done. I observed that a total sum of UGX. 153,028,500 was spent on State Briefs, without a policy to guide the selection and payment of the state briefs. Receivables worth UGX. 320,947,170 relating to prior year missing expenditure vouchers for various officers and companies are still missing for over a financial year and the money remains un accounted for. I noted that receivables amounting to UGX.223,519,926 relating to the un recovered bail and security funds for the year 2018-19 were not disclosed in the statement of financial position. Magistrate G1 Courts established in the year 2016 were found not be operational forcing inmates to walk for long distances to operational Courts in search of Justice. Shortcomings were noted in the implementation of the fleet management policies. The gaps identified include vehicles not of recommended engine capacities, vehicle inspections not undertaken, lack of fuel registers, vehicle journey log books not maintained and vehicles exceeding the recommended five years of useful life. Case backlogs increased by 121.1% overall, instead of the expected reduction. UGX.1,959,320,988 paid for allowances to staff and fuel was budgeted for and charged under code 221006 (commissions and related charges). +2 Uganda Police ForceOpinion Unqualified  Out of the planned 8 strategic goals to be achieved by UPF; 1 was fully achieved, while 7 were partially achieved. Out of the budgeted non-tax revenue of UGX. 21,482,289,539 for the financial year 2019/2020, UGX. 30,028,691,921 was collected representing performance of 140% of the target. There was a shortfall in releases amounting to UGX.3.80bn representing 0.5% of the budget. Furthermore, the entity remained with an unspent balance of UGX.3.64Bn, representing an absorption level of 99.5%. I sampled 33 outputs with 225 activities worth UGX. 573.91Bn representing 70.5% of the total budget and noted that 17 outputs with 154 activities worth UGX.337.80Bn were not sufficiently quantified to enable measurement of performance. Furthermore, of the 71 quantified activities worth UGX.236.11Bn assessed; 2 activities representing 3% were fully implemented while 69 activities representing 97% were partially implemented. UPF did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. Four (4) quarterly performance reports were submitted after the deadline of submission of the quarterly reports. UPF received funds amounting to UGX. UGX.37,484,662,000 for Covid-19 activities and planned to implement 53 activities. Out of these, Forty-five (45) activities worth UGX. 32.2Bn were fully quantified, and 8 activities worth UGX.0.918Bn were insufficiently quantified to enable measurement of performance. Furthermore, of the 45 quantified activities assessed; 11 activities worth UGX.1,000,010,000 were not implemented. I noted that UPF procured vehicles in the last three years at a cost of 85.1Bn. Shortcomings were observed in the Force’s fleet management included failure to comply with the government’s ban on vehicle acquisition, improper + + + + +106 + + + + + + + + + + + + maintenance of motor vehicle records, failure to update the asset management module on IFMS, lack of a fleet management policy, failure to maintain vehicle movement log-books, and use of drivers without valid driver’s permits. Although UPF has court awards and compensation claims amounting to UGX.6.4Bn, the entity only provided in the budget for only UGX.300m. UPF billed drivers under the Express Penalty System (EPS) revenue amounting to UGX.18,948,260,000 for the year, but only collected UGX.16,459,310,000 (87%) resulting in a shortfall of UGX.2,488,950,000. Out of the UGX.30,028,691,921 non-tax revenue collected, only UGX.29,433,434,096 was remitted to the consolidated fund, and the variance UGX.604,357,825 was still cash held in transit at the financial year. I noted that the police’s key revenue sources included fees for training other security organs, hire of police boats, escort charges, general charges, and police band were not billed or revenues collected. Although UPF collected revenues from certificates of conduct, these were not budgeted for. +3 Ministry of Justice & Constitutional AffairsOpinion Unqualified  All the 13 planned strategic goals that were set by the Ministry were partially achieved. Out of the budgeted revenue of UGX. 0.11Bn for the financial year 2019/2020, UGX.0.35Bn was collected representing excellent performance. There was a shortfall in releases amounting to UGX.7.707bn representing 8.3% of the budget. Furthermore, the entity remained with an unspent balance of UGX.3.287Bn representing an absorption level of 96%. I reviewed 23 outputs with 45 activities worth UGX. 81.442Bn representing 100% of the total budget and noted that 6 outputs with 12 activities worth UGX.36.770Bn were not quantified to enable measurement of performance, 2 outputs with 7 activities and expenditure worth UGX.2.835Bn were insufficiently quantified. Furthermore, of the 26 quantified activities worth UGX. UGX.41.836Bn assessed; 9 activities were fully implemented, 16 partially implemented, and one activity was not implemented. The Ministry prepared and submitted quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required. However, the Ministry did not prepare and submit the annual monitoring plans to MoFPED and NPA as required. All four quarterly performance reports were submitted after the deadline. I noted significant differences in the performance target figure set for the individual activities in the departmental approved work plan and the Ministry’s quarterly performance reports. Arrears totalling to UGX.403Bn remained unsettled at the close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. The Ministry has continued to recognize UGX. 3.478Bn in its schedule of arrears due to Companies in Liquidation account yet these arrears will most likely not crystallize. The outstanding amount in Court awards and compensations has been accumulating over the last nine (9) years except for a slight decrease in the year under review of 8%. The outstanding amount now stands at UGX.392 Bn. I noted that there are court awards close to 10 years or more that have never been considered for payment and have now attracted interest totalling to UGX.185Bn with interest rates ranging from 6% to 30% per annum. I noted that the entity procured 25 vehicles in the last three years at a cost of 7.8Bn Shortcomings were observed in the Ministry’s fleet management which included; Lack of a fleet management policy, failure to maintain fuel registers, failure to maintain vehicle log books and failure to carry out annual vehicle inspections. +4 Uganda Human Rights  Out of the planned 14 strategic goals to be achieved by the commission; 6 + + + + +107 + + + + + + + + + + + + Commission (UHRC)Opinion Unqualified were fully achieved while 3 were partially achieved and 4 were not achieved. Out of the budgeted revenue of UGX.540,000,000 for the financial year 2019/2020, UGX. 6,250,000 was collected, representing a performance of 1.15% of the target. There was a shortfall in releases amounting to UGX.0.012bn representing 0.05% of the budget. Furthermore, the entity remained with an unspent balance of UGX.1.87Bn, representing an absorption level of 90.5%. I sampled 10 outputs with 35 activities worth UGX. 17.02Bn representing 95.03% of the total budget and noted that 2 outputs with 7 activities worth UGX.15.3Bn were not quantified to enable measurement of performance, 5 outputs with 22 activities and expenditure worth UGX.1.61bn were insufficiently quantified. Furthermore, of the 6 quantified activities worth UGX. UGX.011bn assessed; 5 activities were fully implemented while one activity was not implemented. The commission did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. Two quarterly performance reports were submitted after the deadline of the quarterly deadline. Arrears totalling to UGX.0.6Bn remained unsettled at the close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. UHRC had tribunal case backlogs of 1,673 cases at the beginning of the financial year 2019/2020, and 150 additional cases were registered during the year resulting in a total of 1,823 cases to be resolved. Out of 1,823 cases, only 67 (3.7%) were investigated and disposed of. The commission owned five (5) land properties in different parts of the country as at 30th June 2020. I noted the following; The land acquisition agreements describing in detail the freehold land on Plot 2 donated by Masaka District Land Board to UHRC, and the leasehold land on Plot 20 and plot 24 located at Buganda road were not availed for verification, Leasehold land in Gulu has not been valued, no evidence of follow up by the commission on land in Masaka, the Land area for plot 22 and plot 24 Buganda road not disclosed. I noted that the entity procured 5 vehicles in the last three years at a cost of 1.03Bn Shortcomings were observed in the Ministry’s fleet management which included; unplanned acquisition of cars and vehicles were not accurately recorded in the format prescribed by the Accountant General. Out of the approved staff structure of 224 positions, 185 positions have been filled, leaving 39 positions vacant of these included critical ones like chairperson and two commissioner members. +5 Uganda Registrations Services Bureau (URSB) – OPERATIONSOpinion Unqualified  Out of the planned 65 strategic goals to be achieved by the entity; 19 were fully achieved, 11 were partially achieved, 24 were not achieved, 10 were not quantified, and one was not in the Strategic Development Plan. Out of the budgeted revenue of UGX. 59,510,000,000 for the financial year 2019/2020, UGX. 38,518,099,778 was collected, representing a performance of 64.7% of the target. There was a shortfall in releases amounting to UGX.2.548bn representing 9.5% of the budget. Furthermore, the entity remained with an unspent balance of UGX.0.76Bn, representing an absorption level of 96.9%. I reviewed all the 9 outputs with 20 activities worth UGX. 23.594Bn representing 100% of the total budget and noted that one output with 1 activity worth UGX.0.150Bn was not quantified to enable measurement of performance. Furthermore, of the 19 quantified activities worth UGX.23.444Bn assessed; 5 activities representing 26% were fully implemented while 14 activities representing 74% were partially implemented. The entity did not prepare and submit the annual monitoring plans to MoFPED + + + + +108 + + + + + + + + + + + + and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. Three (3) quarterly performance reports were submitted after the deadline of the quarterly deadline. Arrears totalling to UGX.1.46Bn remained unsettled at the close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. Shortcomings were observed in the bureau’s fleet management which included; inaccurate recording of vehicles in the asset register thus not recorded in a format prescribed by the Accountant General and failure to maintain fuel registers. +6 Uganda Registration Services Bureau (URSB) – LIQUIDATIONOpinion Unqualified  The entity remained with an unspent balance of UGX. 0.862bn representing an absorption level of 51.2%. I reviewed all the 12 outputs with 38 activities worth UGX. 0.905Bn representing 100% of the total budget and noted that all activities were fully quantified. Furthermore, of the 38 quantified activities worth UGX.0.905Bn assessed; 2 activities were fully implemented, one activity was not implemented at all and 35 activities were partially implemented. Delayed recovery of receivables amounting to UGX 6,252,764,629 included in this figure is UGX.3,353,802,640 borrowed by the Ministry of Justice and Constitutional Affairs to pay rent for the department of the Registrar General in the Ministry of Justice and Constitutional Affairs. I noted delays in concluding the processes of liquidation, before transferring to the privatisation unit of government. 4 (four) assets that belonged to the former liquidated companies, mainly land in different locations of the country were still under the control of the Official Receiver. +7 Directorate of Citizenship and Immigration Control (DCIC)Opinion Unqualified  Out of the planned 40 strategic goals to be achieved by the Directorate; 12 were fully achieved, 17 were partially achieved while 11 were not achieved. Out of the budgeted revenue of UGX. 218,520,000,000 for the financial year 2019/2020, UGX. 183,996,292,024 was collected representing performance of 84.2% of the target. There was a shortfall in releases amounting to UGX.14.91bn representing 12.7% of the budget. Furthermore, the entity remained with unspent balance of UGX.7.063Bn representing an absorption level of 88.8%. I sampled 16 out-puts with 126 activities worth UGX. 101.68Bn representing 100.0% of the total budget and noted that 3 outputs with 16 activities worth UGX.5.56Bn were not quantified to enable measurement of performance. Furthermore, of the 16 quantified activities worth UGX.5.56Bn assessed; 7 activities representing 44% were fully implemented while 6 activities representing 38% were partially implemented and 3 activities representing 19% were unimplemented. DCIC did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. 1 quarterly performance reports were submitted after the deadline of the quarterly deadline. The directorate received UGX. UGX.1,741,140,000 as funds for Covid-19 activities and planned to implement 11 activities. Five (5) activities worth UGX. 1.59Bn were fully quantified and 6 activities worth UGX.0.279Bn were insufficiently quantified to enable measurement of performance. Furthermore, of the 5 quantified activities assessed; 1 activities worth UGX.215,040,000 was not implemented. Non-citizens were issued work permits valued at USD.709,775 (UGX.2,647,560,119) without payment of the requisite fees resulting in a loss of funds. However, by the time of audit, USD.185,025 (UGX.690,169,000) had + + + + +109 + + + + + + + + + + + + been recovered by management. During the financial year 2018-2019, NCIC transferred a sum of UGX.1,864,237,444 to Uganda Police Force for construction of Phase 1 of the Ministry of Internal Affairs Headquarters but the construction is yet to commence. I noted that the entity procured 8 vehicles in the last three years at a cost of 1.4Bn Shortcomings were observed in the Directorate’s fleet management including; non-compliance with the government ban on acquisition of vehicles, failure to update the Government’s computerised financial management information system with the vehicles acquired. I also noted that the entity did not have a fleet management policy. Although the directorate complied with its terms under the contract procurement of 600,000 passport booklets worth UGX.116.9Bn, the supplier, USPC is yet to complete their obligations under the contract including building of a house for the personalisation operations of the entity, roll out of the system to 3 regional offices and 7 missions abroad. +8 Uganda Prisons Service (UPS)Opinion Unqualified  Out of the planned six strategic goals in the just concluded strategic plan of Uganda Prisons Services; 2 goals were fully achieved, while four were partially achieved. Out of the budgeted non-tax revenue of UGX.26,860,000,000 for the financial year 2019/2020, UGX. 20,780,992,347 was collected, representing a performance of 77.4% of the target. There was a shortfall in releases amounting to UGX.0.074Bn representing 0.03% of the budget. Furthermore, the entity remained with an unspent balance of UGX.1.8Bn representing an absorption level of 99.3%. I sampled 28 outputs with 88 activities worth UGX. 276Bn representing 100.0% of the total budget and noted that 13 outputs with 47 activities worth UGX.84.03Bn were not sufficiently quantified to enable measurement of performance. Furthermore, of the 15 fully quantified outputs worth UGX.172.71Bn assessed; 21 activities representing 51% were fully implemented while 20 activities representing 49% were partially implemented. Uganda Prisons Services did not prepare and submit the quarterly reports plans to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. One (1) quarterly performance report was submitted after the quarterly deadline. Arrears totalling to UGX.54.59Bn remained unsettled at the close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. Uganda Prisons received UGX. UGX.4,393,640,000 as funds for Covid-19 activities and planned to implement three activities. All activities were implemented as planned. I noted that UPS procured 43 vehicles in the last three years at a cost of 5.59Bn. Shortcomings were observed in the management of fleet management including; failure to update the Government’s computerised financial management information system with the vehicles acquired, the absence of annual motor vehicle inspections, and the lack of a fleet management policy. There was persistent overcrowding in the prisons facilities with the number of inmates consistently exceeding the cells’ holding capacity in over 33 prisons. The average occupancy in prisons stands at 438% of the existing capacity. Although Uganda Prisons Services had a strategic goal of eliminating the bucket system by the financial year 2021, a total of 29 prisons are still using the bucket system, which is unhygienic and degrading to prisoners. Uganda Prisons Service has an approved organisation structure comprising of 49,470 staff. However, only 9,235 (19%) posts have been filled, leaving a + + + + +110 + + + + + + + + + + + + balance of 40,235 (81%) posts vacant. Uganda Prisons service owns a total of approximately 158 pieces of land. However, only 52 (33%) pieces are surveyed and titled, 17 (11%) pieces are surveyed but still not yet titled, while 89 (56%) pieces were not yet surveyed. +9 National Identification and Registration Authority (NIRA)Opinion Unqualified  All the six strategic goals were were partially achieved. UGX.3,313,967,690 out of UGX.15,000,000,000 was collected, representing a performance of 22.1% of the target. There was a shortfall in releases amounting to UGX.14.7bn representing 23.7% of the budget. Furthermore, the entity remained with an unspent balance of UGX.5.4bn representing an absorption level of 88.6%. I sampled 17 outputs with 74 activities worth UGX. 41.7bn representing 100% of the total budget and noted that 9 outputs with 23 activities worth UGX.22Bn were not quantified to enable measurement of performance. Furthermore, of the 26 quantified activities worth UGX.19.7Bn assessed; 25 activities representing 65% was fully implemented while 23 activities representing 35% were partially implemented. Arrears totalling to UGX.0.918Bn remained unsettled at the close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015, while arrears of 1.97bn were paid without parliamentary approval. Several shortcomings were noted in the achievement of the entity’s mandate including; non-issuance of identity cards, backlogs of applications, delays in processing applications, non-registration of aliens, obsolete and low capacity of performance personalisation machines and delays continued issuance of National IDs. Shortcomings were observed in the Authority’s fleet management which included incomplete recording of motor vehicles in the assets register, un- updated assets management module, lack of an approved fleet management policy and guidelines, failure to maintain proper vehicle movement logbooks, inadequate support to entity service delivery, non-disposal of old fleet, and inadequate funding for motor vehicle maintenance. Out of the approved staff structure of 865 positions, 437 positions have been filled, leaving 428 positions vacant. +10 Uganda Law Reform Commission (ULRC)Opinion Qualified  Included in the comparative figures is expenditure for a total of UGX.4,440,887,976 of which was not audited because I was not availed with and supporting documentation. Out of the sampled twenty-six (26) strategic plan indicators, four (4) targets had been fully achieved, four (4) were partially achieved, seven (7) were not achieved at all, four (4) were not measurable while seven (7) did not have targets set for them. The Commission collected UGX.48,810,000 out of the budgeted NTR of UGX.30,000,000 representing a performance of 163% above the target. There was a shortfall in releases amounting to UGX.0.129Bn representing 1.3% of the budget. Furthermore, the commission did not spend UGX.1.871Bn representing an absorption level of 81%. I reviewed all the 9 outputs with a total of 55 activities worth UGX.7.850Bn representing 100% of the total budget and noted six (6) outputs that were fully quantified and 3 outputs with 23 activities worth UGX. 2.266Bn were insufficiently quantified to enable measurement of performance. I assessed the implementation of six (6) outputs that were fully quantified with a total of thirty-two (32) activities worth UGX.5.584Bn and noted the following; All the six (6) outputs with a total of thirty-two (32) activities worth UGX.5.584Bn were partially implemented. I.e. Out of the thirty-two (32) activities, the entity implemented thirty (30) activities (94%) while two (2) activities (7%) were not implemented. + + + + +111 + + + + + + + + + + + +  The entity did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  All the 4 quarterly performance reports were submitted after the deadline of the quarterly deadline.  I noted cases where the reported level of performance was inconsistent with the results of my verification.  I noted that the entity procured 5 vehicles in the last three years at a cost of UGX.845,191,079. However, shortcomings were observed in the Commission’s fleet management which included; fuel registers were not maintained for all the motor vehicles held by the Commission, none of the logbooks had been updated on a weekly basis with journeys made, annual inspections were not undertaken, and repair and service analysis registers for the vehicles held by the Commission were not maintained.  The Commission is not fully constituted; it currently has only the Chairperson and one Commissioner out of the required seven members since July 2020.  A total of UGX. 219,583,000 which was inappropriately budgeted for and charged under code 221006 for commissions and related charges was paid out as allowances to staff, Commissioners’ retainer, sitting allowances, catering services. +11 Office of the Director of Public Prosecutions (ODPP)Opinion Unqualified  Out of the planned 8 strategic goals set to be achieved by the directorate; 5 were fully achieved while 2 were partially achieved, and one was not achieved. Out of the budgeted revenue of UGX. 8.99Bn for the financial year 2019/2020, UGX.0.058Bn was collected, representing a performance of 0.65% of the target. There was a shortfall in releases amounting to UGX.8.6bn representing 19.6% of the budget. Furthermore, the entity remained with unspent balance of UGX.0.289Bn representing an absorption level of 99%. I sampled 19 outputs with 43 activities worth UGX. 34.50Bn representing 100% of the total budget and noted that 8 outputs with 22 activities worth UGX.14.330Bn were not quantified to enable measurement of performance, 1 output with 3 activities and expenditure worth UGX.0.804bn was insufficiently quantified. Furthermore, of the 18 quantified activities worth UGX. UGX.19.366Bn assessed; 3 activities were fully implemented, 13 partially implemented and 2 were not implemented. ODPP did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. Arrears totalling to UGX.1.6Bn remained unsettled at the close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. During the financial year ended 30th June 2020, only 168,286 cases representing (7%) were concluded, resulting in outstanding case backlog of 2,205,147 cases. I noted a low rate of enforcement of the respective compensation orders for recovering claims and loss of public assets from, private and public institutions and as a result UGX.18.84bn remained un recovered. I noted that ODPP has an approved organization structure comprising of 1,157 staff, out of which 448 posts have been filled, leaving a balance of 709 posts vacant. I noted that the entity procured 11 vehicles in the last three years at the cost of 1.7Bn Shortcomings were observed in the Ministry’s fleet management which included; failure to maintain fuel registers, failure to maintain vehicle log books, failure to carry out annual vehicle inspections, inadequate vehicle allocation, 4 drivers possessed expired driving permits, non-appraisal of drivers, 58 vehicles had exceeded the recommended 5 year’s useful life and no + + + + +112 + + + + + + + + + + + + disposal plans. UGX.4,037,141,052 spent on allowances to staff, general supply of goods and services, fuel, stationery and inland travels for facilitating court operations, and sessions were wrongly budgeted and spent under code 221006 for commissions and related charges. +12 Law Development Centre (LDC)Opinion Unqualified  Out of the planned 59 strategic goals to be achieved by the Centre; 9 were fully achieved, 31 were partially achieved, 15 were not achieved, 3 were not quantified and 1 was not reported on. Out of the budgeted revenue of UGX. 8.3Bn for the financial year 2019/2020, UGX.9.4Bn was collected representing 114% of the target. There was a shortfall in releases amounting to UGX.1.04Bn representing 5.64% of the budget. Furthermore, the entity remained with unspent balance of UGX.0.13Bn representing an absorption level of 99.3%. The Centre did not implement any off-budget activities. I reviewed 9 outputs with 23 activities worth UGX. 17.27Bn representing 100% of the total budget and noted that 3 outputs with 3 activities worth UGX.0.55Bn were not quantified and 1 output with 4 activities worth UGX.0.36Bn was insufficiently quantified. Furthermore, of the 16 quantified activities worth UGX. 16.36Bn assessed; 1 activity was fully implemented while 15 activities were partially implemented. The Centre did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. I could not ascertain when the performance reports were submitted as the dates of submission were not provided. I noted cases where the reported level of performance was inconsistent with the results of my verification. The approved budget estimates of LDC for the financial year under review indicated no budget provision for the settlement of domestic arrears yet UGX. 893,464,565 was reported as the outstanding balance for the prior year. I noted that the entity procured 2 vehicles in the last three years at a cost of 0.52Bn Shortcomings were observed in the LDC’s fleet management which included; the two vehicles acquired over the period of 3 years had engine capacities higher than the recommended engine capacity, failure to maintain a fuel register, failure to maintain vehicle logbooks, absence of annual motor vehicle inspections and repair and service analysis register not held. A sum of UGX.307,290,963 spent on allowances to staff, general supply of goods and services, fuel, stationery and inland travels for facilitating lecturers, was wrongly budgeted and spent under code 282103 for Scholarships and related costs and a sum of UGX.197,219,513 for travel inland was wrongly budgeted and spent under code 211103 instead of Travel inland (227001). +13 Judicial Service Commission (JSC)Opinion Unqualified  Out of the planned 28 strategic goals to be achieved by the commission; 13 were fully achieved while 8 were partially achieved and 7were not achieved. Out of the budgeted revenue of UGX.4.5Bn for the financial year 2019/2020, UGX. 0.002Bn was collected, representing less than 1% of the target. The NTR target was unrealistic. I noted a shortfall in releases amounting to UGX.0.647bn representing 5.96% of the budget. Furthermore, the entity remained with unspent balance of UGX.0.08Bn representing an absorption level of 99.2%. I reviewed 14 outputs with 28 activities worth UGX. 9.988Bn representing 100% of the total budget and noted that 6 outputs with 9 activities worth UGX.6.23Bn were not quantified to enable measurement of performance, 1 output with 2 activities and expenditure worth UGX.0.815Bn were insufficiently quantified. Furthermore, of the 17 quantified activities worth UGX.2.944bn + + + + +113 + + + + + + + + + + + + assessed; 1 activity was fully implemented while 16 activities were partially implemented. The commission did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. One quarterly performance report was submitted after the quarterly deadline. I was not provided with the date of submission for Q1. I noted that the commission inappropriately budgeted for commissioner’s expenses under commission and related charges which is associated with costs incurred to cater for commissions and other charges payable to third parties for services rendered. I noted that the entity procured 5 vehicles in the last three years at a cost of 1.2Bn Shortcomings were observed in the commission’s fleet management which included; Lack of a fleet management policy, failure to maintain a fuel register and absence of annual motor vehicle inspections. +14 Directorate of Government Analytical Laboratories (DGAL)Opinion Unqualified  Out of the planned 94 strategic goals to be achieved by the directorate; 33 were fully achieved, 60 were partially achieved while one was not achieved. The directorate did not budget for non-tax revenue for the financial year 2019/2020. However, UGX.30,167,794 was collected. Out the releases of funds of UGX.18.27Bn, the entity remained with an unspent balance of UGX.0.758Bn representing an absorption level of 96.1%. I sampled 15 outputs with 56 activities worth UGX. 15.11Bn representing 79% of the total budget and noted that 11 outputs with 45 activities worth UGX.9.11Bn were not quantified to enable measurement of performance. Furthermore, of the 4 outputs with a total of (11) quantified activities worth UGX.5.34Bn assessed; 2 outputs with a total of 3 activities representing 50% was fully implemented while 2 outputs with a total of 8 activities representing 50% were partially implemented. The directorate did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. Three quarterly performance reports were submitted after the deadline of the quarterly deadline. Shortcomings were observed in the directorate’s fleet management which included failure to fully utilise funds released for procurement of vehicles, incomplete recording of motor vehicles in the assets register, lack of a fleet management policy and guidelines, lack of proper fuel registers, failure to maintain proper vehicle movement logbooks, and failure to carry out annual motor vehicle inspections. The case backlog reduced by 2,067 (39.89%) cases from 3,492 in the previous year to 2,099 as at the end of the audit year 2019-2020. Out of the approved staff structure of 124 positions, 58 positions have been filled, leaving 66 positions vacant. +15 Ministry of Internal Affairs (MIA)Opinion Unqualified  Out of the planned four strategic goals to be achieved by the Ministry; 2 were fully achieved while two were partially achieved. Out of the budgeted non-tax revenue of UGX.1,240,000,000 for the financial year 2019/2020, UGX.1,425,369,738 was collected representing a performance of 115% of the target. I noted a shortfall in releases amounting to UGX.5.587bn representing 13.45% of the budget. Furthermore, the entity remained with an unspent balance of UGX.1.24Bn, representing an absorption level of 96.54%. I sampled 44 outputs with 209 activities worth UGX.34.56Bn representing 100.0% of the total budget and noted that 32 outputs with 181 activities worth UGX.32Bn were not quantified to enable measurement of performance. + + + + +114 + + + + + + + + + + + + Furthermore, of the 12 outputs and 28 activities quantified worth UGX.2.13Bn assessed; 13 activities representing 46% were fully implemented while 15 activities representing 56% were partially implemented. All the four quarterly performance reports were submitted after the recommended deadline of submission. Domestic Arrears totalling to UGX.78.25m were not budgeted for and therefore remained unsettled at the close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. I noted that the entity procured 14 vehicles in the last three years at a cost of 2.34Bn Shortcomings were observed in the Ministry’s fleet management which included; improper maintenance of motor vehicle records, failure to update the assets module on IFMS, lack of a vehicle management policy, lack of updated vehicle movement logbooks, failure to inspect the vehicles annually and the failure to dispose boarded off vehicles. Out of the approved staff structure of 311 positions, 120 positions have been filled, leaving 191 positions vacant. Out of an approved budget of UGX.41.387Bn; UGX.4.695Bn relates to classified expenditure which was not audited, a separate report will be issued in this regard. +16 Amnesty CommissionOpinion Unqualified  Out of the planned six strategic goals to be achieved by the commission; all six were partially achieved. I reviewed all the three (3) outputs with 10 activities worth UGX. 6.217Bn representing 100% of the total budget and noted that one (1) output with 2 activities worth UGX.0.723Bn was not quantified to enable measurement of performance. Furthermore, the total of eight (8) activities and expenditure worth UGX.2.958Bn were partially implemented. The mandate of the commission will lapse in May 2021, and the activities of the commission will be transferred to the National Transitional Justice Policy (NTJP) framework. I noted that the entity procured 3 vehicles in the last three years at a cost of 0.515Bn Shortcomings were observed in the commission’s fleet management which included; inability to capture assets on the asset management module of the IFMS, lack of a fleet management policy, absence of annual motor vehicle inspections, the failure to repair or dispose off a grounded vehicle and failure to maintain motor vehicle service analysis records. Out of the approved staff structure of 75 positions, 38 positions have been filled, leaving 37 positions vacant. +17 UMOJA ProjectOpinion Unqualified  I observed that only USD. 18,400 was disbursed to undertake the project activities leaving a balance of USD. 4,700. During the launching of guidelines a invoice issued by Imperial Royale Hotel on the 7th June, 2019 in respect of breakfast package for 200 participants amounted to UGX. 11,800,000. This invoice was paid on 25th June 2019. It implied that UGX. 4,220,000 involving 150 participants was not spent. The list of 200 participants in the launching of guidelines with their respective signatures and invitations for the launch were not availed for verification to support the payment to Imperial Royale Hotel, making it difficult to confirm the completeness of the expenditure. It was noted that the project had delayed by 26 months. + PUBLIC ADMINISTRATION SECTOR +1 Ministry of Foreign Affairs  Out of the planned 5 strategic targets/goals, 2 targets were fully achieved while 3 targets were partially achieved. There was a shortfall in NTR collections amounting to UGX.1.7bn representing + + + + +115 + + + + + + + + + + + + Opinion Unqualified 95.1% and a shortfall in GOU releases amounting to UGX. 7.296Bn representing 7%. I assessed all the sampled 32 outputs with 148 activities and actual expenditure of UGX.77.215bn. 6 outputs with 17 activities and expenditure worth UGX.1.477Bn were fully quantified. 2 outputs with a total of 2 activities worth UGX.0.271Bn were fully implemented. 4 outputs with 10 activities worth UGX.1.117Bn were partially implemented. There was no quantified output that was not implemented at all. The Ministry prepared the annual monitoring plans. Further, I noted that the Ministry submitted performance reports to MoFPED after the deadline given for submission of the reports. Domestic arrears decreased by UGX.26.8Bn from UGX.64’2Bn in the previous year to UGX.37.4Bn in the year under review. Further, UGX.50.7Bn budget provision was provided for settlement of domestic arrears in the current year budget but the outstanding amount was UGX.64.2Bn. Shortcomings were observed in the Ministry’s fleet management which included inaccurate recording of motor vehicles in the assets register, un- updated assets management module, lack of a fleet management policy and guidelines, and inadequate information in the board of survey report. The emergency of COVID-19 breakout that saw the world go into a lockdown and as such, the Ministry faced retardation in fulfilling the Peace and Security engagements in the Region and failed to conduct the G77 Summit. +2 The Electoral CommissionOpinion Unqualified  Out of the planned 7 strategic goals to be achieved by the Commission; none were fully achieved while 7 were partially achieved. Out of the budgeted revenue of UGX.4.5Bn for the financial year 2019/2020, UGX.0.109Bn was collected representing performance of 2.44% of the target. There was a shortfall in releases amounting to UGX.9.908Bn representing 0.0045% of the budget. Furthermore, the entity remained with unspent balance of UGX.0.636Bn representing an absorption level of 99.7%. I sampled 7 out-puts with 46 activities worth UGX.219.393Bn representing 100% of the total budget and noted that 4 outputs with 33 activities worth UGX.182.23Bn were not quantified to enable measurement of performance. Furthermore, of the 6 quantified activities worth UGX.9.5Bn assessed; there were no activities which were fully implemented while 6 activities representing 100% were partially implemented. The Commission did not prepare and submit the annual monitoring plans and quarterly performance reports to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The entity did not constitute a strategic plan steering committee to oversee the implementation of its strategic plan. Arrears totalling to UGX.10.101Bn remained unsettled at close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. Furthermore, no budget was provided for settlement of arrears in the year under review despite outstanding commitments to a tune of UGX.16,652,843,119 from the previous year. Funds amounting to UGX.171,919,932 remained unaccounted for at the time of audit. Shortcomings were observed in the Commission’s fleet management which included; effect on Commission by ban on vehicle procurements, un-updated asset management module in the financial management system, partial implementation of motor vehicles management policy, failure to undertake motor vehicle inspections, failure to maintain motor vehicle logbooks, lack of fuel registers and failure to keep motor vehicle analysis records. The Commission procured a warehouse but did not seek PS/ST’s approval, + + + + +116 + + + + + + + + + + + + property was encumbered, did not adhere to PPD guidelines and the objective of cutting on the high costs of renting that the Commission incurs was not met. The Commission procured a National Voters Register (NVR) production equipment which can also print ballot papers but the Commission did not have any plan laid out for its utilisation and may not realise value for money spent on the equipment. +3 Ministry of East African Community Affairs (MEACA)Opinion Unqualified  Out of the planned 5 strategic goals to be achieved by the Ministry; 2 were fully achieved while 3 were partially achieved. Out of the budgeted revenue of UGX.700,000,000 for the financial year 2019/2020, UGX.12,213,400 was collected representing performance of 1.745% of the target. There was a shortfall in releases amounting to UGX.9.61bn representing 13.23% of the budget. Furthermore, the entity remained with unspent balance of UGX.7.063Bn representing an absorption level of 88.8%. I sampled 14 out-puts with 94 activities worth UGX. 64.636Bn representing 89.2% of the total budget and noted that 4 outputs with 4 activities worth UGX.0.352Bn were not quantified to enable measurement of performance. Furthermore, of the 23 quantified activities worth UGX.48.099Bn assessed; 15 activities representing 65% was fully implemented while 8 activities representing 35% were partially implemented. The Ministry did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. 2 quarterly performance reports were submitted after the deadline of the quarterly deadline. Arrears totalling to UGX.17.465Bn remained unsettled at close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. Shortcomings were observed in the Ministry’s fleet management which included incomplete recording of motor vehicles in the assets register, un- updated assets management module, lack of a fleet management policy and guidelines, failure to maintain proper vehicle movement log books, absence of annual motor vehicle inspections and non-maintenance of motor vehicle service analysis records. Out of the approved staff structure of 103 positions 69 positions have been filled, leaving 34 positions vacant. + PUBLIC SECTOR MANAGEMENT SECTOR +1 Office of the Prime Minister (OPM)Opinion Unqualified  At the time of the audit, OPM had not undertaken an evaluation of the extent to which the expired strategic plan had been implemented, which hampers effective accountability. OPM under collected NTR by UGX 0.99Bn, which is 99% of the NTR estimate while shortfalls in Central Government releases were UGX24Bn, which is 12% of the approved budget for central government releases. OPM had unspent balances of UGX4.3Bn which were returned to the consolidated fund. OPM received off-budget financing amounting to 46.8Bn which was never appropriated by parliament. I noted that out of the 30 outputs sampled for review, 20 (67%) were fully quantified, 7 (23%) were partially quantified and 3 (10%) were insufficiently quantified which made it impossible to measure performance. Out of the 20 that were fully quantified, 4 (20%) were fully implemented while 11 (55%) were partially implemented while 5 outputs (25%) was not implemented at + + + + +117 + + + + + + + + + + + + all. OPM did not prepare and submit annual budget monitoring plans and reports while all the performance reports were all submitted in time. I noted weaknesses in the management of the Covid-19 interventions such as non-quantification of activities in the work plans, under absorption of funds, non-implementation of activities, there was no evidence of acknowledgment of receipt of relief items distributed by the recipients which made it difficult to confirm the accuracy of these lists, cases of substandard food items distributed. OPM had outstanding domestic arrears of UGX 0.28Bn contrary to the treasury instructions. I noted weaknesses in the management of the entity’s fleet which included; lack of fixed assets registers for the vehicles, un-updated assets module on IFMS, absence of fleet management policy, absence of fuel registers, un- updated vehicle movement log books and failure to undertake annual motor vehicle inspection, and failure to have drivers regularly examined for fitness to operate the entity’s fleet. +2 German Refugee Response Fund (Consolidated)Opinion Unqualified  No material issue. +3 German Refugee Response Fund Education Infrastructure EnhancementOpinion Unqualified  No material issue. +4 German Refugee Response Fund The Scaled Up Sustainable Domestic Water Supply and Sanitation Service Infrastructure in Rhino Camp Refugee Settlement, Arua District, Northern UgandaOpinion Unqualified  No material issue. +5 Northern Uganda Social Action Fund (NUSAF III)Opinion Unqualified  The project budgeted to receive UGX.134.5Bn but received UGX.119.3Bn representing 88.8% of the budget. The balance of UGX.15Bn was meant to be transferred to districts which was not effected during the year under review. Out of the total funds available for the financial year of UGX.119.30 Bn, UGX.113.42 Bn was spent by the project resulting in an unspent balance of UGX.5.8Bn representing an absorption level of 95%. This resulted in the failure to undertake several activities, such as financing of some sub- programs and undertaking component review seminars. The unspent balance at the end of the financial year was rolled over for implementation of activities in the subsequent period. Out of the three (3) outputs with a total of nine (9) activities and expenditure of UGX 119.96Bn, that the project had planned to implement in + + + + +118 + + + + + + + + + + + + the year, Two (2) outputs with a total of eight (8) activities and expenditure worth UGX.110.92Bn were fully quantified, and One (1) output with one (1) activity and expenditure worth UGX.1.04Bn was not quantified at all. Of the two (2) fully quantified outputs with a total of eight (8) activities worth UGX 110.9Bn, one (1) output with a total of four (4) activities worth UGX.102.62Bn was fully implemented, and one (1) output with a total of four (4) activities worth UGX.8.29Bn was partially implemented. Notably, Management failed to undertake one of the quarterly stakeholder review meetings. I noted that the project did not utilise grant funds totalling to UGX 7.63 billion. The funds are still held on the project bank account. +6 Development response to displacement Impact Project (DRDIP)Opinion Unqualified  The project budgeted to receive UGX.110.66Bn out of which UGX.91.4Bn was received representing 81% of the budget, leaving a balance of UGX.19.26Bn. Out of UGX.91.46bn, UGX.90.64Bn was spent by the project resulting in an unspent balance of UGX.0.82Bn representing an absorption level of 98%. Out of the eleven (4) outputs with a total of twelve (12) activities and expenditure of UGX.89.98Bn implemented by the project, three (3) outputs with a total of eleven (11) activities and expenditure worth UGX.89.98Bn were fully quantified, and one (1) output with one (1) activities and expenditure worth UGX.0.061Bn were not quantified at all. Out of three (3) fully quantified outputs, with a total of eleven (11) activities worth UGX.89.98Bn, One (1) output with one (1) activity worth UGX.79.540Bn was fully implemented, and Two (2) outputs with a total of ten (10) activities worth UGX.10.4Bn were partially implemented. I noted that the project did not utilize grant funds totalling to UGX.16.2 billion. The funds are still held on the project account. +7 Ministry of Local Government (MoLG)Opinion Unqualified  The Ministry had not undertaken an evaluation of the extent to which the objectives of the strategic plan 2015/16-2019/20 had been achieved. There was a shortfall in revenue collection of up to 96% of the NTR target while government receipts were less than anticipated by UGX 3.2Bn. The Ministry had unspent balances of UGX 1.8Bn by year-end. The Ministry had off-budget receipts amounting to UGX 6.4Bn. I noted that out of the 18 outputs sampled for review, 11 (61%) were fully quantified, 5 (28%) were insufficiently quantified and 2 (11%) were not quantified at all making it impossible to measure performance. Out of the 11 outputs that were fully quantified, none was fully implemented, 10 outputs were partially implemented while performance for 1 output was not reported. The Ministry had outstanding domestic arrears of UGX 35Bn while insufficient funds were allocated during the year to settle accumulated arrears of UGX 39Bn as at June 2019. The Ministry lost UGX 2.1Bn through a settlement of garnishee orders. I noted weaknesses in the management of the Authority’s fleet which included; underfunding for motor vehicle purchase, insufficient recording of Motor vehicle details in the assets register, un-updated fixed assets module on the IFMS, lack of fleet management policy, un-updated vehicle movement logbooks and failure to undertake annual motor vehicle inspection and lack of motor vehicle service analysis records. +8 Markets and Infrastructure Trade Improvement Project (MATIP II)  The project experienced a shortfall in releases for both donor and GoU funding sources amounting to UGX.5.8Bn representing 8% of the budget. The project remained with unspent balance of UGX.0.12Bn representing an absorption level of 99.8%. I sampled 4 out-puts with 11 activities worth UGX. 66.52Bn representing + + + + +119 + + + + + + + + + + + + Opinion Unqualified 100% of the total expenditure and noted that two (2) outputs with five (5) activities worth UGX.61.53Bn were fully quantified. I further observed one (1) out-put with five (5) activities worth UGX4.9Bn was insufficiently quantified while another output with one activity was not quantified at all. I noted that the project has not been migrated to the IFMS since 2015, yet the project set up data was submitted to the Accountant General. Management has also not undertaken the midterm value for money audit as required by the project appraisal document. +9 Project for restoration of Livelihoods in the Northern Region (PRELNOR)Opinion Unqualified  There were shortfalls in Government counterpart funding of UGX 2.4Bn which accounted for 28% of the counterpart budget. Similarly, there was a shortfall of UGX 22.3Bn in external financing which accounted for a deficit of 32% of external funding. UGX 1.1Bn remained unspent at the end of the year which was 2% of the total project receipts. Out of the 136 activities planned for implementation during the year, 65(48%) were fully implemented, 24 (18%) were partially implemented while 47 (34%) were not implemented at all. I noted that there was commingling of project funds with other district funds at the district level. I noted challenges in the performance of some road projects resulting in abandonment of sites by contractors. There was delayed disbursement of funds to the beneficiary sub-projects in Gulu of more than six (6) months. +10 National Planning Authority (NPA)Opinion Unqualified  At the time of the audit, the Authority had not undertaken an evaluation of the extent to which the objectives of the strategic plan 2015/16-2019/20 had been achieved. There was a shortfall in revenue collection of up to 99% of the NTR target while government receipts were less than anticipated by UGX 1Bn. The Authority had off-budget receipts amounting to UGX 1.1Bn. I noted that out of the 10 outputs sampled for review, 2 (20%) were fully quantified, 5 (50%) were insufficiently quantified and 3 (30%) were not quantified at all making it impossible to measure performance. Out of the 2 outputs that were fully quantified, 1 output (50%) was fully implemented while the other was partially implemented. I noted delayed implementation of NDP III, which is likely to affect the performance of the plan. I noted positions of key managers at the Authority were not filled, which affected the operations of the Authority. I noted weaknesses in the management of the Authority’s fleet which included; underfunding for motor vehicle purchase, failure to undertake needs assessments before the acquisition of vehicles, insufficient recording of Motor vehicle details in the assets register, un-updated fixed assets module on the IFMS, un-updated vehicle movement logbooks and failure to undertake annual motor vehicle inspection. +11 Local Government Finance Commission (LGFC)Opinion Unqualified  I was not able to assess the extent of achievement of the previous strategic plan targets because the Commission had not completed the evaluation at the time of the audit. The Commission collected only 0.04% of its NTR target for the year and had a shortfall in government funding of 0.75Bn which is 14.8% of the budget. The Commission absorbed all the funds that were released. Out of the four (4) outputs assessed, two (2) were fully quantified, while two (2) were partially quantified. All two (2) quantified outputs were fully implemented. + + + + +120 + + + + + + + + + + + +  The Commission neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports to OPM, MoFPED and NPA as required by the Budget Execution circular. The Commission also did not submit all its quarterly budget performance reports in time. I noted that there was a delay in the revision of the legal framework in regard to non-tax revenue for Local Governments. I also noted weaknesses in the Management of the Commission’s fleet. The aspects that need improvement were; Failure to undertake needs assessment before procurement of vehicles, insufficient records regarding the Commission’s fleet, un-updated fixed assets module on IFMS, absence of fleet management policy, failure to keep vehicle movement logbooks and failure to undertake annual motor vehicle inspections. +12 Public Service Commission (PSC)Opinion Unqualified  I was not able to assesses the extent of achievement of the targets of the just ended strategic plan because the Commission had not completed the evaluation at the time of the audit. The Commission collected only 0.7% of its NTR target for the year and had a shortfall in government funding of 0.42Bn which is 4% of the budget. Out of what was released the Commission did not spend 0.21Bn which was returned to the consolidated fund. Out of the nine out-puts assesses, four (4) were fully quantified, two (2) were partially quantified while three (3) were not quantified at all. Out of the four (4) out-puts that were quantified, one (1) out-put was fully implemented while three (3) were partially implemented. Failure to fully implement the out-puts was attributed to Covid-19. The Commission neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports to OPM, MoFPED and NPA as required by the Budget Execution circular. The Commission also failed to submit all its quarterly budget performance reports in time. I also noted weaknesses in the Management of the Commission’s fleet. The aspects that need improvement were; underfunding for acquisition of motor vehicles, non-compliance with vehicle standardization guidelines, absence of fleet management policy, failure to keep vehicle movement log books and failure to undertake annual motor vehicle inspections. +13 Ministry of Public Service (MoPS)Opinion Unqualified  I sampled 13 strategic targets to assess the extent to which the 2015/16- 2019/20 strategic plan had been achieved and noted that 4 strategic targets had been fully achieved at the end of the financial year, 6 were partially achieved while 3 were not achieved at all. The Ministry collected only 78% of its NTR target for the year and had a shortfall in government funding of 4.1Bn which is 13% of the budget. The Ministry failed to absorb UGX.5.8Bn which is 22% of what was released. Out of the ten (10) out-puts assessed, six (6) were fully quantified, while four (4) were insufficiently quantified to facilitate performance measurement. All the six (6) out puts that were fully quantified were partially implemented as a result of the disruptions caused by budget cuts and restrictions imposed due to Covid-19. The Ministry neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports to OPM, MoFPED and NPA as required by the Budget Execution circular. The Ministry also delayed to submit the Q3 performance report to MoFPED. The Ministry had outstanding domestic arrears of UGX.0.99Bn while insufficient budget provisions were made to settle outstanding arrears at the close of the 2018/19. I also noted that the Ministry had challenges in ensuring that service delivery standards across government were developed, approved and implemented + + + + +121 + + + + + + + + + + + + by MDALGs. I also noted that the Ministry had challenges in formulating guidelines to coordinate monitoring and supervision of service delivery which resulted in duplication of activities by the different Government agencies. I noted that the Human Capital Management system had not been operationalized by the end of the financial year which was 3 years since this exercise commenced. I also noted weaknesses in the Management of the Ministry’s fleet. The aspects that need improvement were; Un-updated fixed assets module on IFMS, absence of fleet management policy, failure to keep vehicle movement log books, and failure to analyze data about fuel consumption for the Ministry’s fleet. It was impossible to ascertain if there was an improvement in compliance with staff performance management initiatives following my audit last year since the Accounting Officer was unable to compile statistics as a result of Covid-19 lock down measures. +14 Kampala Capital City Authority (KCCA)Opinion Unqualified  Review of the extent of implementation of the 2015/16-2019/20 strategic plan revealed that all the sampled activities were partially implemented. There was under collection of NTR by 8.9Bn which is 11% of the NTR budget while short falls in central government releases were 9Bn which is 3% of the approved budget. The Authority had unspent balances of 7.1Bn which were returned to the consolidated fund. I noted that the Authority had unremitted off-budget financing of 13.1Bn which was never appropriated by parliament. I noted that out of the 48 out-puts sampled for review, 26 (54%) were fully quantified, 4 (8%) were partially quantified and 18 (38%) were insufficiently quantified which made it impossible to measure performance. Out of the 26 that were fully quantified, 21 (81%) were fully implemented while 4 (15%) were partially implemented while 1 output (4%) was not implemented at all. The Authority did not prepare and submit monitoring plans and reports and the performance reports were all submitted in time. I noted cases of inaccurate reporting of performance on some out-puts. I noted weaknesses in management of the Covid interventions such as non- quantification of activities in the work plans, failure to value in-kind donations, failure to take items on charge and lack of lists of recipients for the items. The Authority had outstanding receivables of UGX103Bn out of which receipt of 12.3Bn is doubtful. The Authority had an long term liability of 42.5Bn which it has no capacity to offset while other outstanding arrears stood at 80Bn by the close of the year. The Authority provided insufficient funds to settle prior year outstanding payables. I further noted that legal costs payable had escalated from 5Bn in 2017/18 to 23Bn in 2019/20. The Authority made incurred avoidable expenditure of UGX 5Bn as interest on delayed payments of certificates. I noted weaknesses in the management of the Authority’s fleet which included; un-updated vehicle movement log books and failure to undertake annual motor vehicle inspection, failure to have drivers regularly examined, failure to update the fixed assets module on IFMS. I noted that the Authority lacks an approved human resource manual and a number of staff have been in acting capacity for more than 6 months. I noted that the Land Management guidelines used by the Authority were not approved by the Minister while a number properties owned by the Authority had not been transferred in the Authority’s names. + + + + +122 + + + + + + + + + + + +  I noted that the Authority had unremitted statutory deduction amounting to 33Bn. +15 Kampala Infrastructure Improvement Project (KIIDP)Opinion Unqualified  The project budgeted to receive and utilise UGX 8.7Bn from GoU and UGX 223.3Bn as xexternal funding. By the end of the, no funds had been received from GoU while UGX122 (47%) was received from external funding. Out of the total of UGX 122 Bn that was available for utilisation, the project absorbed UGX 93.4Bn resulting in unspent balances of 28.7Bn representing absorption rate of 74%. The project planned to achieve its deliverables through the implementation of ten(10) outputs which were all sufficiently quantified. I reviewed the implementation of these outputs and noted that one (1) output was fully implemented, six (6) were partially implemented while three (3) were not implemented at all. I noted that several projects were significantly behind schedule. +16 Drylands Integrated Development ProjectOpinion Unqualified  The project come to an end on 1st December, 2020, however I noted incidences of misuse and loss of project assets and some equipment handed over but not operationalized because the beneficiaries were not equipped with knowledge and skills to maintain them. The sustainability of project assets and infrastructure is not guaranteed. The cumulative project performance for the last five years revealed that performance was at 67%. I noted that 21 out of 50 project activities had not been implemented at all and yet the project has closed an indication that the project may not fully attain the desired goals. +17 New Vision Printing and Publishing Company LimitedOpinion Unqualified  No material issues. +18 Uganda Printing and Publishing Corporation (UPPC)Opinion Qualified  Uganda Printing and Publishing Corporation (UPPC) reported its investment of UGX.9,096,540,000 in the joint venture special purpose vehicle, Uganda Security Printing Company (USPC) at cost instead of cost plus the carrying amount. This is contrary to IFRS 12 IFRS 11: Joint arrangements. UPPC had trade receivables of UGX.4,172,076,598 as at 30th June 2020. These debts have been outstanding for over 10 years and are owed by MDAs as well as private institutions. There is likely to affect the going concern of the Corporation. +19 Millennium Villages Project - ClosureOpinion Unqualified  No material issues. +20 City Wide Inclusive Sanitation (CWIS)Opinion Unqualified  I observed that the program work plans and budgets were never sent to parliament for approval through the KCCA Ministerial Policy Statements. There were shortfalls in GOU contribution of USD.13,224 which is 7% of the budget. There was under absorption of USD 1,164,679 which is 59% of the funds that were available to the project for implementation of activities. Out of the twenty-nine (29) activities that were supposed to be implemented, 4 (14%) were fully implemented, 12 (41%) were partially implemented, 11 (38%) were not implemented at all while 2(7%) could not be assessed because management did not provide level of performance. USD.64,470 was irregularly garnished from the Program Account and should be returned back to the project account. + + + + +123 + + + + + + + + + + + + LEGISLATURE +1 Parliamentary CommissionOpinion Unqualified  Review of the extent of implementation of the 2015/16-2019/20 strategic plan revealed that 35% of the sampled activities were fully achieved, 61% were partially achieved while 4% of the sampled activities were not achieved at all. Revenue collected exceeded the target by 200%, while government receipts were less than anticipated by UGX 42.4Bn. UGX 20.2Bn remained un-utilized and was sent back to the consolidated fund. I noted that out of the 16 outputs sampled for review, 6 (38%) were fully quantified, 6 (38%) were partially quantified and 4 (25%) were insufficiently quantified which made it impossible to measure performance. Out of the 6 that were fully quantified, 2 (33%) were fully implemented while 4 (67%) were partially implemented. The Commission did not prepare and submit monitoring plans and reports and the performance reports were all submitted after the deadline. I noted slow progress of the construction of the new parliamentary chambers with work expected to stand at 24% of what should have been completed. I noted weaknesses in the management of the Commission fleet which included; failure to undertake needs assessments before the acquisition of vehicles, failure to reconcile fuel registers, un-updated vehicle movement logbooks and failure to undertake annual motor vehicle inspection. I also noted cases where the Commission unjustifiably used direct procurement for cars. +2 Parliamentary Pension SchemeOpinion Unqualified  I observed that one of the Scheme’s Fund Manager (Britam Assets managers) is a wholly owned subsidiary of Britam Holdings Plc a company where the scheme’s funds are invested (Britam Money Market Fund- Unit trust). There is a potential conflict of interest in this business. It was observed that a total of UGX.4,669,520,928 was utilized during the year against the approved budgeted of UGX.6,941,576,256 majorly due to the country lockdown in the month of March–June 2020. Performance was at only 67%. + SECURITY SECTOR +1 Office of the PresidentOpinion Unqualified  Out of the planned 27 strategic targets/goals, 23 targets had been fully achieved while 4 were not achieved at all. Out of the budgeted revenue of UGX.0.52bn for the year 2019/20; only UGX.0.20bn was collected representing performance of only 3.8% of the target. Out of the total receipts for the financial year of UGX.2.17bn, UGX.2.11bn was spent by the entity resulting in an unspent balance of UGX.5.633bn representing an absorption level of 97.4%. I assessed a sampled of 19 outputs with a total of 175 activities and actual expenditure of UGX.94Bn which were fully quantified by management. I observed that; 11 outputs with a total of 69 activities worth UGX.77.2Bn were fully implemented. 2 outputs with a total of 21 activities worth UGX.18.5Bn were partially implemented. I examined supplementary funding received by the Office for COVID 19 interventions and observed anomalies which included under absorption of the funds, failure to quantify activities implemented, inappropriate procurement methods and funds not accounted for. Specifically for management of quarantine centres, I observed that items were procured at varying prices which were not justifiable and items procured were not taken on charge. + + + + +124 + + + + + + + + + + + +  Arrears totalling to UGX.30,549,780,185 remained unsettled at close of the year. Further, UGX.28,431,892,310 was provided for settlement of domestic arrears yet domestic arrears brought forward from the prior year were UGX.58,981,672,495. Shortcomings were observed in the Ministry’s fleet management which included incomplete recording of motor vehicles in the assets register, failure to use motor vehicle logbooks, lack of motor vehicle annual inspections, lack of adequate vehicles for allocation to RDCs, gaps in drivers’ competences and failure to implement board of survey recommendations for disposal of motor vehicles. +2 State HouseOpinion Unqualified  Out of the planned 4 strategic targets/goals, 3 targets were fully achieved, 1 target was partially achieved. Furthermore, the strategic plan was not appraised and lacked monitoring and evaluation reports. There was a shortfall in NTR collections amounting to UGX.0.629bn representing 70%. I assessed 11 outputs with a total of 42 activities and actual expenditure of UGX.357Bn and observed that 2 outputs were fully quantified, 6 outputs were insufficiently quantified while 3 outputs were not quantified at all. I observed that the 2 out puts that were fully quantified with a total of 7 activities worth UGX.84.9bn were fully implemented. UGX.649,953,638 was paid for settlement of domestic arrears during the year under audit despite lack of budget for this item. In compliance with Section 24 of the Public Finance Management Act, 2015 (Classified Expenditure), expenditure of UGX.302,002,646,062 that relates to classified expenditure is to be audited separately and a separate audit report issued. Shortcomings were observed in State House’s fleet management which included failure to maintain motor vehicle logbooks, lack of annual inspections and non-compliance with motor vehicle allocation guidelines. +3 Ministry of Defence & UVABOpinion Unqualified  There was a shortfall in NTR collections amounting to UGX.0.648bn representing 33%. I noted that all the 16 outputs with a total of 35 activities and expenditure of UGX.3.819TN sampled for assessment were not quantified enable assessment of performance. I examined supplementary funding received by the Office for COVID 19 interventions and observed anomalies which included under absorption of the funds, inappropriate procurement methods and diversion of funds to pay domestic arrears. Domestic arrears totalling to UGX.398BN remained unsettled at close of the year. Furthermore, UGX.72.3BN paid to settle domestic arrears was diverted from other items as there was no budget for domestic arrears. UGX.6BN was prepaid to URA in form of taxes but was not based on verifiable items and assessed tax returns. The Ministry paid UGX.1BN to a supplier of ceremonial uniforms that were meant to be used in the year 2012 and are considered not to serve the purpose. I considered the expenditure wasteful. I note shortcomings regarding various pieces of land and properties in form of doubtful land compensation worth UGX.7.379BN, pending court claims on land at Plot 30 summit view Kololo, likely loss of 3.5 square miles of land at Magamaga and likely loss of Plots 404, 405, & 406 Block 9 Kyadondo known as former Kiseka Hospital. Shortcomings were noted in the implementation of the fleet management policies. The gaps identified include failure to comply with vehicle standardization guidelines, improper maintenance of motor vehicle records, + + + + +125 + + + + + + + + + + + + un-updated asset management module in the financial management system, nonexistent fleet management policy and guidelines, lack of fuel registers, vehicle journey log books not maintained, absence of annual motor vehicle inspection and non-compliance with disposal conditions. I undertook an audit inspection and observed abandoned renovation of Legal Training School at Gadaffi Barracks, stalled construction of a temporary dormitory structure for drivers and mechanics and abandoned construction of Marine Pier at Ntokolo Landing site Magamaga. + HEALTH SECTOR +1 Mulago National Referral HospitalOpinion Qualified  I noted that whereas transfers of UGX.5.5Bn that were received by the Hospital from the Ministry of Health were disclosed in the Commentary by the Head of Accounts and Note 5 to the Financial Statements, the receipts were not recognized in the Statement of Financial Performance as required by the template provided by the Accountant General. This may mislead the users of the financial statements. The PS/ST engaged a consultant to verify expenditure arrears in MDAs (Votes) as at 30th June 2019. In the consultant’s report dated 31st January 2020, the verified position of arrears for Mulago Hospital as at 30th June 2019 was UGX.3.55Bn. However, management reported an opening balance of UGX.5.752Bn thereby occasioning a discrepancy of UGX.2.201Bn. No reconciliation of these two positions was availed. In addition, I reported in my prior year report (30th June 2019) that the opening payables balance of UGX.5.752Bn reported by the Hospital was not supported with a schedule of verified arrears in the form of an Annex to the financial statements. Under the circumstances, I was unable to establish the accuracy of the reported payables position. Management adjusted the opening reserves of UGX.5.725Bn in the Statement of Changes in Equity (Net Worth) by UGX.856Million. However, the adjustments were not supported with underlying records, to confirm their authenticity. The hospital paid domestic arrears to the tune of UGX.641Million for which there was no provision in the approved budget for the year under review. Also noted was that the said arrears were not disclosed as outstanding commitments in the entity’s prior year financial statements. Accordingly, this implies that, the opening balances of payables and reserves are misstated while the expenses for the year under review are overstated the same amount. A total of UGX.1.902Bn was paid to 10 food suppliers. However, the supplies were not adequately taken on stores charge. I was unable to establish whether all the food paid for was properly supplied to the Hospital. Whereas the hospital collected Non Tax Revenue to the tune of UGX.1.15Bn, no provision had been made in the approved budget for year under review. This is not only irregular but also complicates assessment of performance. The entity budgeted to receive UGX.71.635Bn out of which UGX.61.68Bn was warranted, resulting into a shortfall of UGX.9.955Bn which is 13.9% of the budget. Shortfalls in revenues impact service delivery. Out of the approved staffing structure of 3,075 positions, only 1,683 (54.7%) were filled and 1,392 positions remained vacant. A further analysis of the top positions revealed that out of 136 approved Consultant positions, only 44 (32.4%) were filled leaving 92 (67.6%) positions vacant. Staffing gaps impact the entity’s capacity to deliver on its mandate. I noted that the some of the Hospital land had encumbrances and was encroached upon while other plots were not titled. This exposes such land to a risk of loss through fraudulent transfer. + + + + +126 + + + + + + + + + + + +2 Mulago Specialized Women & Neo-natal HospitalOpinion Unqualified  Although the hospital budgeted to collect Non Tax Revenue of UGX 2,000,000,000 during the year under review, UGX 3,517,504,786 was collected, representing a performance of 176% of the target implying that there was unrealistic budgeting. There was a shortfall in releases amounting to UGX.2,115,176,754 representing 13.3% of the budget. Furthermore, the entity remained with unspent balance of UGX.65,069,099 representing an absorption level of 99.5%. I sampled 6 out-puts with 24 activities worth UGX.15,708,965,266 representing 99% of the total budget and noted that 3 outputs with 7 activities worth UGX.10,355,972,268 were not quantified to enable measurement of performance. Furthermore, of the 5 quantified activities worth UGX.5,352,992,998 assessed; 3 activities representing 60% were fully implemented while 1 activity representing 20% was partially implemented and 1 activity representing 20% was not implemented. I noted that 5 activities worth UGX.8,841,107,244 reported in the Q4 Annual performance report were not in the annual work plan. This was due to the receipt of a supplementary appropriation without revision of the annual work plan. The hospital accumulated domestic arrears in respect of goods and services amounting to UGX 360,886,600 by the close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. The hospital received Essential Medicines and Health Supplies worth UGX.1,477,149,064 only out of UGX.2,499,856,993 released to National Medical Stores during the year under review. This resulted into supplies for the difference of UGX.1,022,707,929 to remain un-availed by the end of the year and inappropriate service delivery. It was observed that the hospital does not own a motor vehicle and uses motor vehicles borrowed from Mulago National Referral Hospital. The hospital lacked a Management Board to provide strategic guidance and direction to the management team. Out of the approved staff structure of 880 positions 293 positions have been filled, leaving 587 positions vacant. However, the Hospital had 79 staff whose positions are not in the approved structure. +3 Butabika National Mental Referral HospitalOpinion Unqualified  The entity budgeted to collect NTR of UGX 1,205,085,364 during the year under review. However, the hospital collected UGX. 1,208,391,723 thereby exceeding the target. Out of the total receipts for the financial year of UGX 21.58 bn, UGX. 20.742Bn was spent by the entity resulting in an unspent balance of UGX.0.838Bn representing an absorption level of 96.12%. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. Out of the eight (8) outputs selected for performance assessment with a total of twenty five (25) activities and approved budget of UGX 11.5Bn, seven (7) outputs with a total of twenty two (22) activities and approved budget of UGX 7.5Bn were fully quantified. However, one (1) output with three (3) activities and approved budget of UGX 4Bn was not sufficiently quantified to enable performance assessment. Out of the eight (08) sampled outputs, seven (07) outputs were partially implemented while the extent of delivery of one (01) output could not be established due to lack of performance targets/ indicators. Out of the assessed twenty five (25) activities, six (06) representing 24% were fully implemented, sixteen (16) representing 64% were partially implemented while three (03) activities representing 12%. The entity did not prepare and submit annual monitoring plans to MoFPED + + + + +127 + + + + + + + + + + + + and NPA as required. In addition, quarterly monitoring reports were not prepared and submitted to the Office of the Prime Minister and MoFPED. All 14 vehicles controlled by the Hospital had exceeded the recommended 5- years useful life, and 4 of these vehicles had their mileage above the recommended 250,000km, and were therefore due for disposal. All 14 vehicles were not subjected to annual motor vehicle inspections as stipulated in the Public Service Standing Orders. The Hospital undertook three (3) construction projects during the year under review without prior permission from KCCA as required of developers under the Physical Planning Act. +4 Uganda Aids Commission (UAC)Opinion Unqualified  The Commission did not undertake an end term review of its five year strategic plan 2015-2020. The Commission received off budget support of UGX 3,034,834,392 during the year. The Commission remained with unspent balance of UGX. 0.047 Bn representing an absorption level of 99.5% on GOU funding and UGX 1.439 Bn representing an absorption level of 63.2% on Donor Funding. I sampled Four (4) outputs worth UGX.7.33Bn, representing 84.0% of the total budget for and Three (3) outputs with a total of fifty nine (59) activities and expenditure worth UGX 2.37bn were insufficiently quantified and One (1) output with a total of eight (8) activities and expenditure worth UGX 4.91 were not quantified at all. The Commission did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The Commission did not submit quarterly performance reports in time. Arrears totalling to UGX 76,162,182 remained unsettled at close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. The Commission has a dispute over property ownership of the land on Plot Number 213, Sentema Road at Namirembe, Kampala with Church of Uganda. The Commission did not implement board of survey recommendations in the 2018/2019 board of survey report. In some procurement, the evaluation committee did not follow the evaluation criteria stated in the solicitation documents contrary to Regulation 7(1) of the PPDA (Evaluation) regulations. +5 Uganda Blood Transfusion Services (UBTS)Opinion Unqualified  Out of the planned seventy six (76) strategic targets/goals, sixty four (64) targets had been fully achieved, three (3) were partially achieved while nine (9) were not achieved. Whereas the entity does not budget for collection of NTR, UGX.1,650,000 was collected and remitted to the Treasury during the year under review. Out of the total receipts of UGX 18.03Bn, UGX 17.67Bn was spent by the entity resulting in an unspent balance of UGX 0.36Bn representing an absorption level of 98%. None of the seven (7) outputs with a total of forty six (46) activities and expenditure of UGX 13.27Bn sampled for assessment was fully quantified to enable performance assessment. Six (6) out of the sampled seven (7) outputs with a total of forty four (44) activities and expenditure worth UGX 12.60Bn were insufficiently quantified. That is, out of the 44 activities, twenty nine (29) activities (66%) were fully quantified while fifteen (15) activities (34%) were not clearly quantified to enable performance assessment. One (1) output with a total of two (2) activities and expenditure worth UGX + + + + +128 + + + + + + + + + + + + 0.67Bn was not quantified at all. That is, none of the 2 activities within the output was clearly quantified to enable assessment of performance. The entity registered an upward trend of 465% in accumulation of domestic arrears between the FYs 2016/2017 (UGX.76,296,521) and 2019/2020 (UGX.430,885,758). In addition, there was no budgetary provision for settlement of the domestic arrears. Whereas during the 5 year strategic period covering the FYs 2016/17- 2019/2020, the entity planned to procure 22 specially refrigerated vehicles for the regional blood banks to facilitate transport of blood at every blood bank, only five (5) vehicles were procured. None of the 5 vehicles acquired at a cost of UGX 1,536,337,049 during the 3-year period under review revealed that none of the vehicles was recorded in the assets register. The Asset register was also not duly updated. None of the 63 vehicles (100%) owned by UBTS was annually inspected to ensure that they were in sound mechanical condition. A service chart was also not maintained for all the vehicles. 55 vehicles had exceeded the recommended 5 years useful life, and their mileage was above the recommended 250,000km and were as such were all due for disposal. All the 32 drivers employed by the entity had not undertaken additional training, were not appraised for their performance and had not been subjected to annual medical examination to ascertain their fitness status. Whereas the wall fences of Pearl of Africa Hotel on plots 2E and 7A1-9A1 encroached on UBTS land by 0.043ha and 0.036ha respectively resulting in a total encroachment of 0.079ha, there was no evidence of settlement of this matter by the time of audit. +6 China Uganda Friendship Hospital – NaguruOpinion Unqualified  The hospital lacked a Management Board to provide strategic guidance on the delivery of its mandate. The Hospital’s oxygen plant had been malfunctioning for over a year despite the manufacturer’s intervention around March 2020. Whereas the plant was designed to take 2.5 – 3 hours to fill 5 cylinders at ago, it was taking 7 hours by the time of inspection. Contrary to the commitment control system, the Hospital reported domestic arrears relating to previous financial years to the tune of UGX 464,666,021. I further noted that whereas the arrears brought forward from the FY 2018/19 were UGX.641,315,859, a provision of only UGX.176,649,838 was made in the entity’s approved budget for settlement. At the time of the audit (June 2020), out of the planned forty five (45) strategic targets, twenty (20) targets had been fully achieved, sixteen (16) were partially achieved while nine (9) were not achieved. Out of the budgeted NTR of UGX 250,000,000, only UGX 91,082,161 was collected, representing a performance of 36% of the target. The entity budgeted to receive UGX 9.401Bn out of which UGX 8.361Bn was warranted, resulting in a shortfall of UGX 1.04 Bn which is 11% of the budget. Out of the ten (10) outputs with a total of thirty one (31) activities and expenditure of UGX 8.021Bn sampled for assessment, five (5) outputs with a total of seventeen (17) activities and expenditure worth UGX 0.657Bn were fully quantified to enable performance assessment. However, four (4) outputs with a total of fourteen (14) activities and expenditure worth UGX 7.188Bn were insufficiently quantified. Out of the fourteen (14) activities, seven (7) activities (50%) were quantified while seven (7) activities (50%) were not clearly quantified to enable assessment of performance. One (1) output whose activities were not stated had expenditure worth UGX + + + + +129 + + + + + + + + + + + + 0.176Bn but not quantified at all. I noted that out of the five (5) fully quantified outputs, one (1) output with one (1) activity worth UGX 0.004Bn was fully implemented while four (4) outputs with a total of sixteen (16) activities worth UGX 0.653Bn were partially implemented. Out of the sixteen (16) activities, the entity fully implemented eight (8) activities (50%) while eight (8) activities (50%) were partially implemented. The entity did not prepare and submit the annual monitoring plans to MoFPED and NPA as required. In addition, quarterly monitoring reports were not prepared and submitted to the Office of the Prime Minister and MoFPED as required. The Hospital submitted quarterly performance reports online within the deadline given for submission of the reports. +7 National Medical Stores (NMS)Opinion Unqualified  Note 7 to the financial statements showed a provision for bad debts amounting to UGX 13,532,426,000 which have been outstanding for over ten years. This provision has been disclosed as such for a long time without any evidence of communication to the Minister of Finance to seek the approval of Parliament for its abandonment or evaluation of the recoverability of this the amount. Management budgeted to receive UGX 33,336,258,498 as revenue from service charges. However, a total of UGX 44,873,380,000 was received which was over the budget amount by 11,537,121,502 (34.6%) from eleven (11) revenue sources. There was no evidence that the additional revenue was presented to the Board for approval and budgetary allocation. I noted that out of the budgeted revenue of UGX.396,172,215,017 from Treasury, only UGX.388,120,277,901 was warranted resulting into a budget shortfall of UGX.8,051,937,116 representing 2.03%. I further observed that UGX. 387,511,869,634 was spent by the entity resulting in unspent balance of UGX.608,408,267 representing 0.16%. Out of the planned revenue collection of UGX 280,000,000 from other sources, only UGX 237,268,000 was realized resulting in a shortfall of UGX 42,732,000 representing (15.2%). The entity did not prepare and submit the annual monitoring plans to MoFPED and NPA as required. In addition, quarterly monitoring reports were not prepared and submitted to the Office of the Prime Minister and MoFPED. I noted that the entity submitted quarterly performance reports within the deadline given for submission of the reports. I noted that items valued at UGX 110,589,018,098 that were expected from development partners were not received by the Corporation. I reviewed the management of the entity’s fleet during the three (3) financial years: 2017/18-2019/20 and noted that out of a budget of UGX. 1,360,000,000 on acquisition of vehicles from government funding, a sum of UGX. 1,160,000,000 was warranted by Treasury for the purpose, and the Corporation eventually spent UGX. 1,051,507,900. All the sampled 11 vehicles (100%) controlled by the entity were not subjected to annual inspections as required. A review of the vehicle allocation to key service centers in the Corporation revealed that some departments or units were not adequately allocated vehicles with only 9 vehicles covering 10 regions and 29 trucks out of the expected 40 covering the entire country. A review of staff records for a sample of 12 drivers out a total of 52 employed by the Corporation revealed that none (0%) of them had been subjected to annual medical examination. The Corporation realised and spent a total of UGX. 2,986,894,494 against a vehicle maintenance budget of UGX. 3,540,500,000 for the three (3) FYs + + + + +130 + + + + + + + + + + + + 2017/18 to 2019/20. I noted that out of the sampled 42 vehicles, 21 of these had exceeded the recommended 5 years useful life while 21 had their mileage above the recommended 250,000km, hence were due for disposal. +8 Uganda Virus Research Institute (UVRI)Opinion Unqualified  I observed that out of the Institute’s approved structure of 236 positions, only 85 posts (representing 36%) were filled thereby leaving 151 positions (64%) remained vacant. A further analysis of the top positions in scale U2 and above revealed that out of 12 positions, only 2 (16.7%) were filled and 10 (83.3%) remained vacant. Whereas Accounting Officers were advised by the PS/ST to prioritize payment of arrears by giving them a first call in the allocation of resources during the budgeting process, I observed that the entity had an outstanding balance of payables to the tune of UGX.409,685,369 as at 30th June 2020, which were incurred during the prior financial year 2018/19. Whereas the Institute compiled a draft Strategic Plan for the period 2017/18 to 2019/20, I was not availed evidence of approval of the plan. I further noted that at the time of the audit (June 2020), out of the planned six (6) strategic targets/goals, only two (2) targets had been fully achieved, while four (4) were partially achieved. +9 Health Service Commission (HSC)Opinion Unqualified  Out of the planned 26 strategic objectives to be achieved by the Commission in the strategic plan 2015-2020; 12 were fully achieved while 14 were not achieved. The Commission remained with unspent balance of UGX. 0.105bn representing an absorption level of 97.7%. I sampled three (3) outputs worth UGX 6.71Bn, representing 97.7% of the total budget and noted that 1 output with 3 activities worth UGX.5.09Bn was not quantified to enable measurement of performance. The Commission did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. Arrears totalling to UGX 82,362,144 remained unsettled at close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. Out of the 79 approved posts for the Commission, only 46 (58%) were filled leaving 33 (42%) posts vacant. Of the 33 vacant posts, 17 (51.5%) were for key positions such as Assistant Commissioner/HRM, Commissioner HRM- Recruitment & Selection systems among others. The Commission has not recruited 23 key staff for other hospitals due to failure to attract them. The Commission does not have a mechanism to enforce submission of reports by District Service Commission. +10 Ministry of Health (MoH)Opinion Qualified  Included in the Ministry’s Statement of Financial Position as at 30th June 2020, are payables amounting to UGX.38.4Bn which include among others, payables to National Drug Authority (NDA) of UGX.5.08Bn and National Medical Stores (NMS) of UGX.2.9Bn. However, there was no reconciliation of the correct debt position between the Ministry and the two entities giving rise to a discrepancy that shows that the ministry’s position is understated to the tune of UGX.29.9Bn. Absence of reconciliation brings into question, the accuracy of the stated payables position. I noted that funds to the tune of UGX.2.95Bn were irregularly diverted from the activities for which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. Diversion of funds is not only contrary to the Public Finance and Management Act 2015, but also negatively affects the delivery of services and negates the purpose of budgeting. + + + + +131 + + + + + + + + + + + +  Although the Ministry did not budget to collect NTR during the year under review, a total of UGX.459.7Million was collected. Failure to budget for collection of NTR could lead to understatement of revenue at reporting. There was a shortfall in releases amounting to UGX.3.73Bn representing 1.5% of the budget. Furthermore, the entity remained with unspent balance of UGX.7.63BN representing an absorption level of 96.86%. Failure to obtain all the budgeted revenue and to utilize all the availed funds implies some planned activities were not implemented, which impacts on service delivery. The Ministry received off-budget financing to a tune of UGX.4.5Bn which was not transferred to the consolidated fund as required by the law. This was attributed to Development Partners’ preference to use their financial systems which do not require returning funds to the UCF at the close of every financial year. The Ministry received a total of UGX.184.3Bn in cash and donations in-kind to respond to the Covid-19 Pandemic during the year under review. However, shortcomings were observed in the Ministry’s management of the response which included; delayed delivery of procurements, non-certification of supplies by competent authorities, lack of space for expansion of ICUs, inadequate staffing of ICUs, gaps in installation of sleeper tents and construction of border posts, delivery of procurements before approval of the procurement by the contracts committee and/or signing contracts, initiation of procurement without availability of funds, diversion of funds, un- accounted for/doubtful payments, delayed issue of appointment and deployment letters to engaged staff, payment of allowances to individuals without engagement records and failure to absorb funds. The Ministry reported outstanding payables (Domestic Arrears) totalling to UGX.38.4Bn at the close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015 which limits accounting officers to avoid committing government beyond the availed resources. In addition, out of the domestic arrears amounting to UGX.42.1Bn brought forward from the prior year, only UGX.228Mn was provided for settlement of these domestic arrears during the year under review. The continued failure to settle such arrears exposes government to a risk of litigation and the attendant costs. There was delayed constitution of six National Referral Hospitals’ Management Boards implying that these hospitals lacked strategic vision and direction on behalf of the Ministry of Health. +11 National Drug Authority (NDA)Opinion Unqualified  Out of the planned 79 targeted outputs as per the Strategic plan, 48 outputs had been fully achieved; three (3) outputs were partially achieved while 28 outputs were not achieved at all. Out of the budgeted revenue of UGX 61,414,152,000 for the financial year 2019/20; UGX 63,165,933,000 was actually collected representing a performance of 103%. Further analysis showed that there were shortfalls worth UGX 2,444,615,269 (4%) in various revenues streams. I observed that the National Drug Authority had a capital expenditure budget of UGX 8,369,400,400 of which UGX 8,297,185,770 (99%) was utilized, leaving unspent funds worth UGX 72,214,630. However, out of UGX 8,297,185,770 total funds spent, UGX 6,670,827,952 (81%) was incurred on outputs that were not planned for in the 2019/2020 Budget. I sampled 58 activities with a total of 95 outputs and expenditure worth UGX 43.77Bn representing 85.5% of the total budget and noted that 6 outputs worth UGX 1.14Bn were not quantified to enable measurement of performance. Furthermore, of the 56 activities with 93 outputs worth UGX 42.63Bn assessed; 10 outputs representing 18% were fully implemented; 56 outputs representing 39% were partially implemented while; 27 outputs representing 43% were not implemented. + + + + +132 + + + + + + + + + + + +  In my prior year report on the Accounts of NDA, I drew attention to a long outstanding receivables balance from Ministry of Health amounting to UGX 23,959,154,964. This figure has since risen to Ugx.29,972,536,044 by 30th June 2020. Despite frequent reminders to the Ministry, no debt remained outstanding by the time of audit. I however noted that NDA had not considered the necessity to provide for bad debts as required under Section 8.4 (f) of the NDA Financial Management Manual. I noted that contrary to IAS 16, a total of 17 running motor vehicles were fully depreciated during the year and reflected at zero book value in the statement of financial position. The Authority did not make annual reviews of its expectations with regard to the residual values and useful lives of the vehicles in question. I noted that the entity procured 23 vehicles in the last three years at a cost of UGX 3.28 Bn. Shortcomings were observed in the Authority’s fleet management which included; all vehicles were recorded without sufficient details as required by the NDA Financial Management Manual, 2016; annual motor vehicle inspections were not conducted and 8 out of 23 drivers did not possess valid driving permits. I also noted that the entity did not have a vehicle maintenance plan and the budget for maintenance over the previous three years was under funded by UGX 0.1 Bn. +12 Uganda Cancer InstituteOpinion Unqualified  Out of the planned 5 strategic goals to be achieved by the Institute; 2 were fully achieved while 3 were partially achieved. Out of the budgeted revenue of UGX.1.68Bn for the financial year 2019/2020, UGX.1.41Bn was collected representing performance of 84% of the target. There was a shortfall in releases amounting to UGX.0.65bn representing 1.9% of the budget. Furthermore, the Institute remained with unspent balance of UGX.0.16Bn representing an absorption level of 99.5%. The institute received off-budget financing which was never paid into the consolidated fund as required by the law to the tune of UGX.568,469,444, GBP 487,669.10 and USD 219,845.29. I sampled all 16 out-puts with 53 activities worth UGX.33.97Bn representing 100% of the total budget and noted that 10 outputs were fully quantified to enable measurement of performance while 6 outputs were partially quantified. Furthermore, of the 10 quantified outputs worth UGX.27.6Bn assessed with 30 activities, I noted that 6 outputs with 24 activities worth UGX.17.6Bn were fully implemented and the 4 outputs had activities that were partially implemented. Funds to the tune of UGX.35,496,814 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. Shortcomings were observed in the Institutes fleet management which included absence of annual motor vehicle inspections and non-maintenance of motor vehicle service analysis records. +13 Uganda Heart Institute (UHI)Opinion Unqualified  I noted that out of the planned four (4) strategic targets/goals, Zero (0) targets had been fully achieved, Four (4) were partially achieved while Zero (0) were not achieved at all as summarized in the table below. Out UGX. 24,468Bn released from Treasury, only UGX.23.391Bn was spent leaving a balance of UGX.1.077Bn unutilized (representing an absorption level of 95.6%). Out of eleven (11) outputs with a total of Forty (40) activities and expenditure of UGX.23.5Bn sampled for assessment, I noted that Four (4) outputs with a total of twelve (12) activities and expenditure worth UGX 9.82Bn were fully quantified; Four (4) outputs with a total of Seventeen (17) activities and expenditure worth UGX 1.291Bn were insufficiently quantified + + + + +133 + + + + + + + + + + + + while Three (3) outputs with a total of Eleven (11) activities and expenditure worth UGX 12.429Bn were not quantified at all. My assessment of the extent of delivery of the 4 outputs that were fully quantified revealed that three (3) outputs with a total of Four (4) activities worth UGX 3.669Bn were fully implemented while one (1) output with a total of eight (8) activities worth UGX 6.151Bn were partially implemented. Out of the eight (8) activities, the entity implemented three (3) (37.5%) activities fully; partially 5 activities (62.5%) while zero (0) (0%) activities remained unimplemented. The entity did not prepare and submit the annual monitoring plans to MoFPED and NPA. In addition, no quarterly monitoring reports were prepared and submitted to the Office of the Prime Minister and MoFPED as required. I noted that the entity submitted quarterly performance reports within the prescribed timelines. However, my review of the Annual cumulative performance reports and physical inspections/verification of performance revealed cases where the reported level of performance was inconsistent with the results of my verification. Analysis of domestic arrears over the past four years has shown a downward trend of 49.1% between 2016/2017 and 2019/2020 which is commendable. However management did not fully adhere to the commitment control system, which deters the Accounting Officer from committing Government beyond the available resources and as such the Institute reported domestic arrears to the tune of UGX.1,429,802,685 as at 30th June 2020. A review of the approved budget estimates for the year under review revealed that there was no budget provision for settlement of domestic arrears yet domestic arrears brought forward from the previous year were UGX.2,187,544,539. I noted that management makes refunds to patients for services paid from collections before banking due to the absence of budgetary provision for the refunds. In addition, there is no policy that guides how refunds are made which may lead to delays in making refunds or not making refunds at all. Review of the order and delivery schedules by the National Medical Stores revealed that there were significant delays in delivering ordered supplies resulting into stock-outs and treatment disruptions for patients who cannot afford to buy their requirements. +14 East African Public Health Laboratory Networking Project (EAPHLNP)Opinion Unqualified  Out of the USD 8,641,038.64 which was available during the year under review, a total of only USD 4,536,010.87 was spent resulting into the difference of USD 4,105,027.77 to remain un-utilized by the close of the period. Out of the 9 operational research proposals which were considered for funding upon receiving clearances from the Institutional Review Boards (IRB) and the Uganda National Council for Science and Technology (UNCST), data collection for only two studies had been completed by 30th June 2020. There was delayed completion of construction works for the Isolation Centres at Entebbe RRH and Mulago NRH; Satellite Laboratories at Mbale, Mbarara and Arua RRHs; and the TB Treatment Centre at Moroto RRH due to the delayed completion of designs and recruitment of the supervising consultant. There were contract price variations which were more than the allowed 15% of the original contract price for five contracts due to changes in specifications and introduction of extra works which had not been approved although works were ongoing. + + + + +134 + + + + + + + + + + + +15 East African Centre of excellence for skills and tertiary education in bio medical science (ADB support to UCI)Opinion Unqualified  Out of UGX.57,288,212,000 expected from the Bank and UGX.1,883,264,971 from the Government of Uganda (GoU), a total of UGX. 38,975,389,590 was received from the Bank and UGX. 1,883,264,971 from the GoU resulting into a revenue shortfall of UGX. 18,312,822,410 in respect of external financing by the Bank. Out of UGX.42,989,947,820 available for spending during the year, only UGX.38,496,345,210 was spent resulting into an unspent balance of UGX.4,493,602,610 at the end of the year. +16 GAVI, The Vaccine Alliance cash grants to UgandaOpinion Unqualified  I draw attention to Note 6.1 to the Fund Accountability Statement, which describes the basis of accounting. The Fund Accountability Statement is prepared to assist the Ministry to comply with the financial reporting provisions of the Funding Agreement referred to above. As a result, the Fund Accountability Statement may not be suitable for another purpose. +17 Kiruddu National Referral HospitalOpinion Unqualified  The entity budgeted to collect NTR of UGX. 480,000,000 during the year under review, and UGX. 801,955,000 was realized, representing a performance of 167% of the target. Out of the total receipts for the financial year of UGX 12.083 bn, UGX. 11.972Bn was spent by the entity resulting in an unspent balance of UGX.0.111Bn (representing an absorption level of 99%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. Out of the five (5) outputs selected for budget performance assessment with a total of ten (10) activities and expenditure of UGX 10.76bn, I noted that three (3) outputs with a total of six (6) activities and expenditure worth UGX 2,910,000,000 were fully quantified. Two (2) outputs with a total of four (4) activities and expenditure worth UGX 7,847,186,200 were not quantified at all to enable performance assessment. Out of the three (3) out puts that were fully quantified with a total of six (6) activities worth UGX 2.91 Bn, only two (2) outputs with a total of three (3) activities worth UGX 1.92 Bn were fully implemented. One (1) output with a total of three (3) activities worth UGX 0.99 Bn was partially implemented. Out of the three (3) activities, the entity implemented one (1) activity 97%, one (1) activity 95% and the other one 57%. The entity did not prepare and submit annual monitoring plans to MoFPED and NPA as required. However, all the quarterly performance reports were submitted within the stipulated deadlines. I did not note any cases where the reported level of performance was inconsistent with the results of my verification. The Hospital accumulated domestic arrears to the tune of UGX 782,737,660 for various goods and services contrary to the Commitment Control System. UGX. 239,700,000 which was received from the Ministry of Health to cater for Medical Intern’s allowances under the Results Based Financing component of the Uganda Reproductive Maternal and Child Health Services Improvement Project (URMCHSIP) was omitted from the Statement of Financial Performance and Note 5. In addition, the related expenditure of UGX. 190,874,000 was not recognized in the Statement of Financial Performance. The un-spent balance of UGX.48,826,000 relating to un-paid PAYE on the allowances was also not recognized in the Statement of Financial Position both as a cash balance and as a payable. Out of the 829 approved posts for the hospital, only 239 (28.8%) were filled leaving 590 (71.2%) posts vacant. I noted that senior positions from U2 and above such as Senior Medical Officers- Special Grade, Consultants and Senior Consultants were the most understaffed with only 16 (12.7%) filled out of the approved 126 positions leaving 110 (87.3%) positions vacant. + + + + +135 + + + + + + + + + + + +  The Hospital was allocated a budget of UGX 1,500,000,000 for medicines and Medical supplies for the year under review but consumed medicines worth UGX 1,891,894,689 which was higher than the budgeted amount. Therefore, the budget was not sufficient to cover the vital medicines required to fulfil the mandate of the hospital and as a result, vital medicines were not planned/ordered for during the year. A number of Hospital equipment like the CT-Scan Machine among others were non-functional at the time of audit inspection. During the Financial Year 2018/19 MoH through KCCA bought a 49-year Leasehold piece of land measuring approximately 1.012 hectares from Buganda Land Board at a total cost of UGX 538,787,550. In the same year, the MoH transferred UGX 1.450Bn to National Water and Sewerage Corporation (NWSC) for construction of a Wastewater Management System for the Hospital. However, the title to the land had not been passed over to the hospital and works had not commenced by the close of the year under review. In addition, the cost of constructing the plant has risen with the inflation rate from a budget of UGX 2.360 billion for a 300m plant in 2018 to UGX 1.974 billion for a 150m³ in 2020. The Hospital did not have a policy on Motor vehicle Management to guide the usage and elimination of theft, losses, wastage and misuse of motor vehicles. Log books for all the selected five (5) out of the eight (8) vehicles held by the Hospital had either been updated on a weekly basis with journeys made, fuel and maintenance costs or duly certified by an authorizing Officer. None of the eight (8) Motor vehicles controlled by the Hospital was subjected to the annual inspection as stipulated under the Public Service Standing Orders. One (1) vehicle (12.5%)was under warranty, three (3) vehicles (37.5%) were maintained and in use while the remaining four (4) vehicles (50%) were parked due to lack of vehicle maintenance funds. Repair and service analysis registers were maintained for all the three (3) vehicles maintained during the year. Only one (1) entitled Officer was allocated a motor vehicle as required by the Public Service Standing Orders. Whereas all the five (5) drivers employed by the Hospital possessed valid driving permits, none of them was subjected to a medical examination as required by the Standing Orders. Whereas the PS/ST instructed the PS/Ministry of Health to constitute the Hospital Board of Directors not later than 1st July 2019, the Board had not been constituted by close of the year under review. +18 Kawempe National Referral HospitalOpinion Unqualified  The entity budgeted to collect NTR of UGX. 448,000,000 during the year under review, and UGX. 431,865,952 was realized, representing a performance of 96.4% of the target. Out of the total receipts for the financial year of UGX 10.223 bn, UGX. 10.082Bn was spent by the entity resulting in an unspent balance of UGX.0.141Bn (representing an absorption level of 98.6%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. I noted that all the five (5) outputs selected for budget performance assessment with a total of nine (9) activities and actual expenditure of UGX 3.16bn were fully quantified. This therefore enabled me to assess the Hospital’s performance during the year under review. Out of the five (5) sampled outputs, three (3) outputs were fully implemented while two (2) were partially implemented. I further noted that out of the planned nine (9) activities under the sampled outputs, four (4) activities representing 44.4% were fully achieved, and five (5) representing + + + + +136 + + + + + + + + + + + + 55.5% were partially achieved. The Hospital did not prepare and submit annual monitoring plans to MoFPED and NPA as required. In addition, quarterly monitoring reports were not submitted to the Office of the Prime Minister and MoFPED. I also noted delays in submission of quarterly performance reports. The Hospital accumulated domestic arrears to the tune of UGX UGX.365,151,250 for various goods and services contrary to the Commitment Control System. UGX. 684,880,000 which was received from the Ministry of Health to cater for Medical Intern’s and contract staff allowances under the Results Based Financing component of the Uganda Reproductive Maternal and Child Health Services Improvement Project (URMCHSIP) was omitted from the Statement of Financial Performance. In addition, the related expenditure of UGX.383,289,745 was not recognized in the Statement of Financial Performance. The un-spent balance of UGX.301,590,255 was also not recognized in the Statement of Financial Position. Whereas the Hospital’s procurement plan for the year under review amounted to UGX.3,052,563,960, it had a provision of only UGX.1,500,000,000 at NMS resulting into underfunding of Essential Medicines and Health Supplies to a tune of UGX.1,552,563,960. This resulted into stock-outs and treatment disruptions for patients who could not purchase the medical prescriptions required. I reviewed the management of the Hospital’s fleet and noted that the entity did not own any motor vehicle during the year under review. I further noted that the hospital was provided with 5 vehicles from the Ministry of Health and Kampala Capital City Authority (KCCA) on a temporary basis to run its operations. I noted that out of the approved staff structure of 924 posts, only 321 (35%) were filled leaving 603 (65%) positions vacant. Whereas the PS/ST instructed the PS/Ministry of Health to constitute the Hospital Board of Directors not later than 1st July 2019, the Board had not been constituted by close of the year under review. The Hospital had a credit balance of UGX.2,524,848,197 on water A/c No. 2124446 as at 30th June 2020 that was attributed to two credits worth UGX.2,465,268,371 from Mulago Hospital and another source that could not be established. I further noted that during the year, the Hospital consumed 35,745 units of water and was charged water and sewerage services at a rate of UGX.4,980 (VAT inclusive) per unit instead of the government institutional rate of UGX.4,198 (VAT inclusive) per unit. This led to an overcharge of UGX.782 per unit consumed, translating into UGX.55,905,180. However, this state of affairs was not disclosed in the financial statements. +19 Uganda National Health Research Organization (UNHRO) - 2018/2019Opinion Unqualified  The Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016. Without a Governing Board, oversight functions spelt out for the Board, may not be lawfully executed. The Organization had not been granted a vote status by the time of audit, despite being granted by the Sessional Parliamentary Committee. As a result, the organization’s financial and operational independence is limited. Although the Sessional Committee had recommended the allocation UGX.2.360 billion to kick start UNHRO operations, no such allocation has been made. I noted that only 12 positions out of the approved 26 positions, as per the Organizational Structure in the Scheme of Service of April 2011, had been filled resulting into a staffing gap of 14 positions by the time of audit. Such gaps negatively impact on the capacity of the Organisation to execute its + + + + +137 + + + + + + + + + + + + mandate. +20 Uganda National Health Research Organization (UNHRO) - 2017/2018Opinion Unqualified  The Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016. Without a Governing Board, oversight functions spelt out for the Board, may not be lawfully executed. The Organization had not been granted a vote status by the time of audit, despite being recommended by the Sessional Parliamentary Committee. As a result, the organization’s financial and operational independence is limited. Although the Sessional Committee had recommended the allocation UGX.2.360 billion to kick start UNHRO operations, no such allocation has been made. I noted that only 12 positions out of the approved 26 positions, as per the Organizational Structure in the Scheme of Service of April 2011, had been filled resulting into a staffing gap of 14 positions by the time of audit. Such gaps negatively impact on the capacity of the Organisation to execute its mandate. + WORKS AND TRANSPORT SECTOR +1 Ministry of Works and Transport (MoWT)Opinion Unqualified  The Ministry hired a consultant to undertake an evaluation of the previous strategic plan (2017/2018-2019/2020) and to prepare a Strategic plan for the years 2020/2021-2014/2025 for six months beginning July 2020. By 31st December 2020, consultancy had only achieved one objective out of four assignment objectives. Out of the budgeted NTR of UGX.12bn for the financial year 2019/2020only UGX.7.16bn was collected, representing a performance of 60% of the target. I also noted a decline in the NTR collections, from the previous year amount of UGX.8.4bn to UGX.7.16bn in the current year, resulting into a 15% decline in NTR realization. The entity budgeted to receive UGX.1.656bn out of which UGX.841.68bn was released, resulting in a shortfall of UGX.815bn representing 51% performance. Out of the eighteen (18) sampled outputs with a total of seventy nine (79) activities and expenditure of 681.2bn for assessment, I reviewed the extent of quantification of outputs and activities and noted that fifty five (55) activities had clear set targets to enable assessment of performance while twenty four (24) activities lacked targets. I noted that out of the seventy nine (79) activities, thirty (30) were fully achieved; thirty one (31) were partially achieved; ten (10) were not achieved and for the eight (8) I was not able to confirm as they lacked the necessary supporting documentation in terms of monitoring reports and any other evidence for what had been done. I noted that the entity’s performance reporting was incomplete, as the quarterly performance reports were unavailable to support the annual performance report provided. The Ministry effected payments worth UGX,450,509,603 in respect of unbudgeted for domestic arrears in the year under review contrary to the budget provisions. Comparison of the budgets with the actual vehicle fleet funding revealed a shortfall of UGX.3,680,873,997 (40%) implying that the entity could not procure the necessary vehicles and this impacted on service delivery. There was however no evidence of regular inspection and reconciliation of vehicles in the assets register. MoWT did not have a policy on Motor vehicle Management to guide the + + + + +138 + + + + + + + + + + + + usage of motor vehicles, this is in addition to absence of a standardized fleet management policy by Government as the different aspects of Government vehicles are managed through different policies cited in various government documents such as the Uganda Public Service Standing Orders 2010, the Public Procurement and Disposal Act, 2014 and Treasury Instructions, 2017. Out of 402 vehicles the assets register, 262 vehicles had exceeded the recommended 5 years useful life, and 144 of these vehicles had their mileage above the recommended 250,000km, hence were all due for disposal. I noted that out of a proposed budget of UGX 20bn for the verified PAPS for the Bukasa Port during the financial year, only UGX 500million representing 3% was approved in the approved annual estimates for the year under review. I also noted delayed payment of PAPs which necessitate revaluation, ultimately delaying the Project. Out of the approved budget of UGX 20bn for compensation of PAPs on the Standard Gauge Railway (SGR) Project, SGR received UGX 19.3 bn, leading to a shortfall of UGX 0.7bn. A total of UGX 16.7bn was spent. The funding and expenditure did not match the approved plans and budget for this critical railway Project. I also noted that the valuation process for land and properties was not undertaken timely in accordance with the compensation guidelines; there were considerable delays in the responses and final approvals to valuations of PAPs compensations from CGV’s office. I also observed inconsistencies in the CGV’s approved value of PAPs’ properties and those in Surveyor assessment forms, for example, from the sample taken, 3 out of the 26 PAPs had their land undervalued by a total of UGX 23,038,164.50 and land for 11 PAPs was overvalued by UGX 399,424,654. I noted that most of the projects carried out by Mountain Elgon Labour Based Training College (MELTC) had expenditure above the allocated funds while others did not exhaust the allocated funds. I noted that the East African Civil Aviation Academy (EACAA) is being financed by the Government of Uganda and operating without any formal legal framework. +2 Multinational Lake Victoria Maritime Communications and Transport (MLVMCT) ProjectOpinion Unqualified  The Project did not have an approved log frame to spell out its key activities over its life, the implementation timelines for each key activity, the estimated costs of the each key activity, expected key outputs and/or performance indicators and the monitoring and evaluation methodology of project activities. There were therefore significant project delays that are likely to adversely affect implementation. The loan disbursement and project implementation was at 7.9% compared to the overall project budget of USD$.14,396,100 in the Project second year of implementation. +3 Uganda Railways Corporation (URC)Opinion Qualified  I noted that the Corporation had un-supported loans from foreign Governments amounting to UGX.16,511,595,000. Similarly, interest payable amounting to UGX.9,511,880,000 was reported as outstanding without the necessary supporting documentation. I further noted that the corporation reported unsupported sundry creditors and other trade receivables of UGX.9,753,781,407 and UGX.11,217,376,390 respectively. I noted that the Corporation had partially implemented all the five strategic objectives despite this being the second last year of implementation of the strategic plan. I noted shortfalls in NTR collections and Government releases of UGX.86Bn (86% of target) and 45.7Bn (15% of the target) respectively. I sampled 10 outputs with 35 activities worth UGX.9.3Bn and noted that 5 outputs with 18 activities were fully quantified, 3 outputs with 15 activities + + + + +139 + + + + + + + + + + + + were insufficiently quantified, while 2 outputs with a total of 2 activities were not quantified at all. Out of the 5 fully quantified outputs, 1 output with 2 activities worth UGX 0.507Bn was partially implemented; while 4 outputs with a total of 16 activities were not implemented at all. I noted that most of the planned outputs in the annual cumulative performance reports were reported in generic form; thus making proper assessment of performance difficult. I noted that the Corporation did not assess for impairment of the assets despite the existence of impairment indicators; thus overstating non-current assets and understating expenditure. In addition, the corporation had long outstanding receivables to a tune of UGX 1,005,358,000 relating to withholding Tax (WHT); casting doubt on its recoverability. I also noted unauthorized excess expenditure to a tune of UGX.4,432,928,474; over and above the budgeted amount of UGX.3,515,000,000. The corporation lacked land titles for land worth UGX 91,832,636,500 as evidence of URC’s right to own and use the property and as a result individuals and institutions have encroached on; and unlawfully put up developments on URC Land. I noted that there was no orderly system to keep track of the recovered exhibits of the meter gauge equipment. Out of the 48 locomotives of the Corporation, only 11 locomotive engines were found in the asset register. I further noted that no inventory lists for the locomotives were maintained showing status of operation, engine capacities and location. I noted that there were no fuel registers for the locomotives; and neither did the corporation maintain logbooks for each vehicle, and locomotive. There was also inadequate allocation of vehicles within departments and units. The corporation incurred excess spending on maintenance to a tune of UGX.43,841,165 over two financial years. I noted an increasing trend in maintenance expenditure. I noted that 419 additional positions had been created by management with no regard to the approved establishment and without approval of the board. Additionally, 46 staff that had attained the mandatory retirement age were still on the URC payroll. I noted excess expenditure of UGX.5,217,957,285 on wages and salaries, over and above the budgeted amounts of UGX.4,509,000,000. I noted that there is no Memorandum of understanding (MoU) between Uganda Railway Corporation (URC) and the Uganda Police for the terms and conditions/ operations on which they are supposed to be supporting the Corporation. Procurements worth UGX.2,088,434,541 were awarded to suppliers who did not meet the qualification criteria. +4 Civil Aviation AuthorityOpinion Qualified  A total of UGX 93,398,362,595 was outstanding in arrears of unremitted rental space with eleven Government arrears for over two years. In addition, UCAA did not have any tenancy agreements with these Government bodies specifying the terms and conditions of tenancy. UGX 38,000,000,000 was spent on this activity and recognized in the financial statements. Management explained that UCAA had undertaken the rehabilitation on behalf of Government and UCAA was expecting the amount to be reimbursed by the Ministry of Defence. In line with my report of the previous year 2018/2019, Management did not provide evidence that Government has made a commitment to reimburse the amount. The Authority’s financial statements revealed trade and other payables of UGX 12,367,293,000 However, trade creditors’ aging report as at 30th June + + + + +140 + + + + + + + + + + + +2020 indicated outstanding trade creditors of UGX 11,656,131,129, leading to a misstatement of the creditors by UGX 711,161,871. The misstatement may lead the users to making sub optimal decisions. In addition, of the outstanding UGX 11,656,131,129; UGX 9,773,326,309 (83.8%) was beyond 60 days. Delay to settle trade creditor’s results in reputation damage to the Authority and may also lead to interest charges on the unpaid invoices. + +- Review of the trial balance for the period ended 30th June 2020, revealed that the Authority collected UGX 366,660,839 as revenue from aircraft licences. However, from the consolidated quarter reports and re- computation done, it was established that a sum of UGX 131,929,088 was reported as revenue arising from the different aircraft licences. This left UGX 234,731,751 unsupported. + + + +- UGX 693,994,495 advanced to staff to undertake various activities remained unaccounted for. I was unable to ascertain whether the funds were expended on the intended activities. + + + + + +- I noted that at the time of the audit (June 2020), out of the planned eight (8) strategic targets/goals, no target had been fully achieved. + +- The entity budgeted to collect revenue amounting to UGX 265bn during the year under review. Out of this, UGX 204.73bn was collected, representing a performance of 77.3% of the target. Out of the total receipts for the financial year of UGX 204.73, UGX. 198.36 was spent by the entity resulting in an unspent balance of UGX 6.7Bn representing an absorption level of 97%. + + + + + +- Out of the 71 outputs with expenditure of UGX 55.8Bn sampled for assessment, I noted that: Twenty-nine (29) outputs with a total of thirty- seven (37) activities and expenditure worth UGX 41.8Bn were fully quantified; Twelve (12) outputs with a total of seventy-four (74) activities and expenditure worth UGX 4.9Bn were insufficiently quantified, and; Thirty (30) outputs with a total of thirty-three (33) activities and expenditure worth UGX 9.1Bn were not quantified at all. + +- Out of twenty-nine (29) out puts that were fully quantified with a total of thirty-seven(37 activities worth UGX 41.8Bn, I noted that: Three (3) outputs with a total of six (6) activities worth UGX 38.7Bn were fully implemented; Two (2) outputs with a total of seven (7) activities worth UGX 0.126Bn were partially implemented, and; Twenty four (24) outputs with a total of twenty- activity (20) activities worth 3Bn were not implemented at all. + + + +- Funds to the tune of UGX 1,290,000,000 were irregularly diverted from the activities on which they were budgeted and spent on other activities contrary to based practices. Mischarge/diversion of funds impacts on the implementation of planned activities. + + + + + +- UCAA had outstanding trade receivables amounting to UGX 143,827,816,623 of which 69% had exceeded 90 days and provisions had been made for them. + +- Prime Media advertising agency’s outstanding balance payable to UCAA from advertising space increased by UGX 749,196,414 to UGX 4,549,196,414 by 30th June 2020. In addition, the amount outstanding from the previous year of UGX.3,800,000,000, remained uncollected throughout the FY 2019/2020. + + + + + +- UCAA did not realize budgeted Aeronautical revenue to a tune of UGX. 59,740,719,658. The under-collection constituted 25% of the UCAA total budget. + + + +- A Government delegation renegotiated the terms of the financing agreement for the US$200m loan on upgrading and expansion of Entebbe International Airport with Exim Bank. The renegotiated terms were to be formalized into an addendum agreement. However, the addendum to the contract terms had not been made by the time of this audit. + +- The Authority undertook works for a Security Search Park, Shelter and Road + + + +141 + + + + + + + + + + + + at EIA, executed by IBB International at a contract price of UGX 4,716,479,582. The Project which was first committed in 2013/2014 remained incomplete and dormant despite expenditure of UGX.3,792,124,901 already incurred. I noted that all motor vehicles acquisitions though planned, had excessive delays in procurement process making it difficult to align the actual acquisitions to the planned acquisitions in a given year. The Authority did not have an approved policy and guidelines for fleet management. I also noted that the Authority did not have any standardization guidelines set out in their draft Fleet Management Policy. The annual average vehicle maintenance cost per vehicle increased by UGX 4,432,429 (40%) from UGX 11,075,875 in FY 2017/18 to UGX 15,508,304 in FY 2019/2020. This signifies high cost of vehicle maintenance. The Authority was making payments (withdrawals) from the collection accounts in Orient Bank, instead of transferring the funds to be spent from the operational accounts. Accordingly, UGX 20,163,664,339 was spent from the Orient shilling collection account and UGX 3,162,568,065 was spent from the Orient dollar collection account. Whereas Vivo Energy, Total Ltd and Mogas provided jet fuel to the aircrafts for which the Authority charges 5 cents per US gallon uplifted, UCCA did not have any concession agreements with these Fuel operators as required. I noted that procurements worth UGX 4,114,939,383 were not in the annual procurement plan and had not been budgeted for. UGX 3,037,247,829 was paid out to several suppliers using direct procurement method instead of open bidding in contravention of the procurement guidelines. +5 Uganda National Roads Authority (UNRA)Opinion Qualified  Receivables totaling to UGX 604,835,635,481 relating to Development and maintenance projects were reported in the financial statements for the year. However, contracts and receivables ledgers were improperly maintained or not maintained for some of the road projects. I was unable to confirm the accuracy and completeness of the figures reported for the advances and recoveries therefrom. Expenditure totaling to UGX 289,157,979,077 (UGX 288,713,825,335 from UNRA TSSA and UGX444,153,742 from UNRA Road Funds) was charged on budget lines to fund activities that were not planned for without authority. The practice undermines the budgetary process and the intensions of the appropriating authority as funds are not utilized for the intended purpose. UNRA did undertake the end line evaluation of its strategic plan. I noted that at the time of the audit (June 2020), out of the planned eight (8) strategic targets/goals, no target had been fully achieved. UNRA projected to collect NTR amounting to UGX 12bn. Out of this, only UGX 2,634,160,774 was collected, representing a performance of 22% of the target. I also noted a decline of 72.5% in the NTR collected the previous year of UGX 9,586,629,574 to UGX. 2,634,160,774. The entity had an approved budget of UGX. 4,019,068,912,990 during the year. However, UGX.2,677,574,546,630 (66.6%) was warranted resulting in a budget shortfall of UGX.1,341,494,366,360, which affected implementation of planned activities. Out of the total receipts for the financial year of UGX. 2,677,574,546,630, the Authority spent UGX. 2,279,371,610,152 representing an absorption level of 85.1% leaving unspent balances of UGX.398,202,936,478. Out of the 16 outputs with expenditure of UGX.962.438bn sampled for assessment with sixty three (63) activities, I noted that fifty nine (59) activities had clear set targets to enable assessment of performance while four (4) activities lacked targets. I also noted that out of the sixty-three (63) + + + + +142 + + + + + + + + + + + +activities, twenty-eight (28) were fully achieved; fourteen (14) were partially achieved; and eighteen (18) were not achieved. + + + +- I noted that funds earmarked for the selected outputs to the tune of UGX 291,423,741,550 were irregularly mischarged from the activities for which it was budgeted and spent on other activities. + + + +- Domestic arrears paid during the year totalled to UGX.472,810,845,128 resulting in unappropriated expenditure of UGX452,810,845,128. There was also no evidence that supplementary funding was obtained to settle the outstanding domestic arrears. + +- There were shortfalls of UGX.3,090,983,562 (27%) in funding for vehicle purchases for three years, 2017/18-2019/20 implying that the entity could not procure all the vehicles as planned, which may negatively impact on its operations. + + + + + +- UNRA acquired two (2) vehicles at a total cost of UGX 677,849,549 during the FY 2019/20 using GoU funds in contravention to the Government ban on procurement of vehicles. Out of the 38 vehicles procured two (2) motor vehicles purchased in the FY 2019/2020 with a total cost of UGX. 677,849,549 were not in the annual work plan and procurement plan. + +- I noted that all vehicles acquired over the 3 years under review were not captured in the fixed assets module of the GFMIS. All the vehicles acquired at a cost of UGX. 8,150,862,854 over the period under review were not posted onto the Asset Management module. + + + + + +- Out of the vehicle maintenance budget for the two (2) FYs 2018/2019 and 2019/2020 of UGX 4,000,000,000 UNRA realised and spent a total of UGX. 3,479,899,701 reflecting a funding shortfall to the tune of UGX.520,100,299, which is 13% of the budgeted vehicle maintenance funds. The annual average vehicle maintenance cost per vehicle increased from UGX.7,408,635 in FY 2018/19 to UGX.8,409,090 in FY 2019/20. + + + +- Out of 395 vehicles in the assets register, 341 vehicles had exceeded the recommended 5 years useful life, and 170 of these vehicles had their mileage above the recommended 250,000km, hence were all due for disposal. + + + +- UNRA made payments amounting to UGX 7,309,410,300 that arose out of penalties for the court cases and interest on delayed payments of advances and IPCs invoices from various contractors. + + + +- Two major road projects, Kampala Flyover Project (KFOP) and the Kampala Northern Bypass Phase II (KNBP) have dragged on for a long time, since 4th May 2019 and 14th July 2014 respectively. By end of September 2020 the progress of physical works on KFOP was estimated to be at 4.94% and the total contract time that had elapsed was 53.2%. For KNBP the progress of physical works was estimated to be 77.4% and the construction had been planned to take 36 month (3years) has so far taken 78 months (6 and half years), which was a time lapse of 217% and still on-going. + + + +- Inadequate feasibility studies during planning and design led to the escalation of costs on Nakalama- Tirinyi-Mbale Road. The time the project was at 67% completion (financial completion), the executed quantities for items in the BOQ like earthworks, compaction, rock fill, materials like crushed stone, labour and others exceeded the planned quantities some by over 200%. + + + +- The contract for rehabilitation of Hima Katunguru road by China Railway No 3 Engineering group expired on 22nd Sept 2019, but the contractor completed the works on 6th Nov 2019 and liquidated damages amounting to UGX 1,873,318,398 as a result of delay in works completion were not charged to the contractor. + +- Several projects were initiated without adequate planning and timely design review. This translated into major design changes during implementation, + + + +143 + + + + + + + + + + + + multiple extensions of time, delays in design reviews, variations in quantities during implementation, cost and time extensions, delays in execution of works. +6 UNRA Masaka Bukakata ProjectOpinion Unqualified  Out of a total of UGX 298,702,781 released to support the Project Implementation Unit (PIU), only UGX50,032,011 (17.5%) was utilized. This was due to the delayed recruitment of staff for the PIU. There were significant delays in commencement of Project activities. According to the loan agreement the project was expected to commence by July 2013. However review of the project documents revealed that the project commenced in January 2019. This was over 6 years after the initial loan agreement was signed with BADEA and OFID. Slow physical progress of works was observed. The implementation of the project was planned at 1.69% of actual works. However by 30th June 2019 actual progress was stated to be at 0.25% recording a slippage of 1.44% of total works. Out of 1,282 PAPs compensated with land approx. 341.7162 Acres, none of the titles had been transferred to Government, that is; neither to the names of Uganda National Roads Authority nor to Uganda Land Commission. Some PAPs were compensated for untitled land, majorly in cases of customary land ownership. Management did not obtain titles, which makes transfer of ownership difficult. +7 North Eastern Road Corridor Asset Management Project (NERAMP)Opinion Unqualified  I observed significant delays in Project implementation. As at 30th June 2020, total disbursements to the project amounted to USD 29,610,000 (XDR 20,683,343) which represents 13% of the signed loan amount of XDR 157,600,000. It should be noted that more than half of the project implementation period has elapsed. The level of project implementation is very low which could affect timely completion of planned activities. The delays may result into extension of Project implementation period and associated costs of servicing the loan. There was low absorption of Project funds. During the financial year ended 30th June 2020, a total of USD 9,590,500 was budgeted to be spent on the Project but only USD 1,570,436.67 was utilised. This represents a low budget absorption rate of only 16.37% during the year audited. The Project may suffer from systemic value for money losses resulting from delays in implementation. The delays may also lead to increased administration costs and delayed service delivery as a result of project extensions. +8 Road Sector Support Project IV – 2018/19Opinion Unqualified  I observed delays in relocation of Project Affected Persons (PAPs) on Lot 1 (Kigumba – Bulima Road). Some PAPs in Mparo South and in Kasomoro were compensated, but still occupied land for which they were compensated. Under Lot 2, one PAP was compensated but still occupied the land for which he was compensated, and one PAP was not aware of the fate of her land title which had not yet been returned by UNRA. UNRA engaged Ms China Railway No.5 on 27th April 2015 to upgrade Bulima-Kabwoya road (Lot 2) from gravel to bitumen standard for a period of 30 months with effect from 1st December 2015. However, the physical progress as at 30th June 2019, based on the addendum signed on 9th January 2019 was 81.39% against the planned 100% resulting in a cumulative slippage of 18.42%. By the time I visited the project site for this audit (on 12th March 2020); completion was at 89.86%, with a total of 51 months having elapsed and with a 10.14% cumulative lag. The construction contract with China Railway No.5 was signed on 30th March 2017 for a construction period of 30 months effective March 2018. Although by the time of inspection to the project site, China Railway No.5 (the contractor) had been granted access to 68kms of the total 69Kms for Lot 1, there were challenges arising from unsettled disputes relating to PAPs. + + + + +144 + + + + + + + + + + + + With 80% of the construction contract period elapsed, physical completion was at 44% as of 12th March 2020 when the project site was visited. I noted further that a project design review for Lot 1 created new items and scope of work for the contractor, and whereas the design alterations and time and cost variations were approved by UNRA, conclusion of the addendum has been delayed and there was uncertainty regarding the source of funding to cover the cost escalation. During the year to 30th June 2019, UGX 4,527,426,283 (cumulative to 30th June 2019 UGX 58,125,235,911) was reallocated from the project to fund other projects. However, I was not provided with documentary proof of approval for the reallocated funds. Non-approval for the reallocation of funds does not only impact on the delivery of planned project outputs but also exposes the entity to the risk of fund withdrawal by the donors. A total of UGX 1,236,334,477 was incurred in interest costs owing to delayed remittances of funds in respect of approved Interim Payment Certificates (IPCs) No. 16 and No.18 for Lot 2. Under Clause 14.7.1 (b) of the General Conditions of the Construction Contract, the contractor was to be paid within 56 days of receipt of the IPC by UNRA. +9 Road Sector Support Project IV – 2019/20Opinion Unqualified  UGX.101,304,920,267 was cumulative amount incurred in relation to Lot 2 civil works as at 30th June 2020 for Upgrading of the 66Km Bulima-Kabwoya Road, however, by the time of field inspection in October 2020, the achieved level of completion was 95.45% despite successive revisions of completion dates by a further 22 months with the last revised completion date being 27th March 2020. UGX.73,577,621,725 was cumulative amount incurred in relation to Lot 1 civil works as at 30th June 2020 for Upgrading of the 69Km Kigumba-Bulima Road, however, by the time of field inspection in October 2020, the achieved level of completion was 57.6% despite initial completion time of 31st August 2020. This was due to design review that created changes to the scope and cost of civil works. However, conclusion of the addendum to amend the construction contract was delayed and is still being handled by UNRA’s Contracts Committee. UGX.1,286,449,018 (Cumulative to 30th June 2020 is UGX 59,411,684,929) was reallocated from project funds to fund other projects without ministerial approval for the reallocation of the funds from the project budget as stipulated by Section 22 of the Public Finance Management Act, 2015. UGX.78,401,352 was paid to China Railway No.5 Engineering Group owing to delayed payment of interim payment certificate (IPC) No.21B for Lot 2 as per Clause 14.7.1 (b) of the General Conditions of contract. Further, the cumulative interest payment for the project to 30th June 2020 is UGX.1,314,735,829) and by the time of the audit, IPCs 19, 20, and 21 for Lot 1 were overdue for payment and likely to attract further interest. +10 Uganda National Airlines Company Ltd (UNACL) – 2018/19Opinion Unqualified  Uganda National Airlines Company Limited on the 30th October 2018 applied for accreditation of an alternative procurement system for the procurement of various goods and services. In a letter dated 5th February 2019, the PPDA Board granted accreditation of an alternative system to Uganda National Airlines Company Limited subject to formulation of a procurement manual that was to document the alternative system and the internal control measures within three months of receipt of the letter of accreditation. Review of the procurement process at the entity in September 2020 revealed that Management only had draft procurement manual in place for documenting the alternative system. No procurement manual has been put in place since 2018. +11 Uganda National Airlines Company Ltd (UNACL) – 2019/20  The company was unable to realize its planned revenue, yet the expenditure on operations was way above projected costs. The company only realized US$ 9,985,495 (10.8%) of the project revenue of US$92,863,811. On the + + + + +145 + + + + + + + + + + + + Opinion Unqualified other hand, the company incurred expenses that were beyond the planned costs and its actual revenue. For example; the company spent US$29,220,933 on direct costs, US$3,606,965 on indirect costs. As a consequence, the company incurred a net loss of US$27,477,513 in the year. The Airline Business plan was not annualized and the timelines within which planned activities were to be achieved were not specified which made it difficult for the team to evaluate the progress of the business plan. The plan was also not implemented in accordance with the planned timelines. Whereas Government had invested a total of UGX 934,840,887,000 and reflected it as an investment in the Treasury records at Ministry of Finance, only an amount of UGX200,000,000 was shown as Share Capital in the company statements, the rest of the amount was shown as Share Application Funds. The processes for recognition of the Government investment in the company have not been undertaken to enable appropriate treatment and reporting in the company’s books of account. A review of the approved organisational structure indicated that the company had not provided for the position of internal auditor. The entity did not have an internal audit function in place. +12 Kapchorwa-Suam Road – 2018/19Opinion Unqualified  23 Km representing 31.5% of the length of the road was in possession of the contractor as of the commencement date of 1st October 2018. However some PAPs within the possessed section had not been compensated and denied the contractor access to site on several occasions such as, at Km 9+660 to km 17+00 in May 2019, km 22+740 to km 22+860 in June 2019. I also noted that there was a long time lag (delay of over 6 months) between the date PAPs signed transfer forms ceding the rights and obligations of their land to UNRA and the date when compensation was effected. UNRA engaged M/S China State Construction Engineering Corporation Ltd on 7th May 2018 to upgrade Kapchorwa-Suam road for a period of 36 months, with effect from 1st October 2018. However, the physical progress as at June 30, 2019 was 4.48% against 7.93% planned with a cumulative lag of 3.48%. Primarily, causes of delays were denied access to site by the PAPs who have not been compensated and adverse weather conditions. According to the Terms of References (ToRs) in the contract between the Employer and Consultant signed on the 26th June 2018, the Road Design Review was supposed to be completed in six (6) months from the commencement of the Consultant’s tasks. However, the design review had not been concluded as at 30th June 2019 (9 months after commencement). Included in the Statement of Receipts and Payments is receipts of UGX 6,300,000,000 and payments of UGX 6,299,980,587 relating to the financial year ended 30th June 2018 for which the audited financial statements had not been provided. Management explained that these were GOU funds utilized to pay PAPS ahead of the start of civil works. I could not confirm with certainty the reported opening balances since individual project audited financial statements were not provided for review. I advised Management to always prepare individual project Financial Statements and have them audited. During the year to 30th June 2019, UGX 3,702,931,057 was reallocated from the project to fund other projects. However, I was not provided with documentary proof of approval for the reallocated funds. Non-approval for the reallocation of funds does not only impact on the delivery of planned project outputs but also exposes the entity to the risk of fund withdrawal by the donors. Section 18.1.6 of the particular conditions of the contract, requires the contractor to provide proof of payment for the contractual insurance policies within 28 days after commencement date. However, a detailed review of + + + + +146 + + + + + + + + + + + + the insurance policies indicated that not all the equipment on site was insured; only 5 out of the 10 excavators were insured and 3 out of the 8 bull dozers were insured. Bitumen distributors, Asphalt mixing plant, water pump and all generators were not insured. I noted inadequate staffing of the Project. Progress report No. 9 (End of June 2019) table 38 K (Consultant’s attendance) indicated that the Hydrologist/ Drainage Engineer attended 30 days however, in other correspondences it was indicated that this key position is intermittent. I was not provided with proof of approval for the person occupying this position. Given the hydrological condition of the project area, challenges related to drainage affecting the communities and subsequent litigations are eminent. +13 Kapchorwa-Suam Road – 2019/20Opinion Unqualified  I noted that only 48 km representing 66% of the length of the road was in possession of the contractor as at 30th June 2020. In addition, some PAPs within the possessed section had not been compensated. The delayed compensation of the PAPs has led to the delayed access and possession of the land for the road length to the contractor. Non-settlement of PAPs’ claims before commencement of construction exposes the project to refusal of handover of land by PAPs, litigation costs by the PAPs, delayed project implementation and a risk of the Donors withdrawal of funding. UNRA engaged M/S China State Construction Engineering Corporation Ltd on the 7th May 2018 to upgrade Kapchorwa-Suam road for a period of 36 months with effect from 1st October 2018. However, the physical progress as at June 30, 2020 (at 58.3% time lapse) was 17.26% against 31.84% planned with a cumulative lag of 14.58%. The Project implementation has significantly delayed. Delays were attributed to; adverse weather conditions, denied access to the full site by the PAPs who have not been compensated, scarcity of materials, and numerous embedded rocks in addition to the exposed rock. According to clause 12.39 of the special specification of the contract, the contractor is required to maintain the existing road and ensure no potholes such that light vehicles can travel at a nominal speed of 50km/hr. However, by the time of the site visit, the road was almost impassable from km 31 to km 73 (42km). The contractor attributed this to the terrain of the project area. Failure to maintain the existing road affects the main objective of the project which is to improve connectivity between Uganda and Kenya as well as to stimulate economic activities in East Africa. +14 Albertine Regional Sustainability Program (ARSDP) – Works 2018/19Opinion Unqualified  I observed that cumulative physical progress as at 30th June 2019 was at 64.4% against 96.00% planned, resulting in an overall slippage of 31.53%. I noted that acquisition of a title or titles for the acquired land (Kyenjojo- Kabwoya Road - having a total length of 100.4Km) for which compensation has been made is still in process. I observed that out of the available funds of USD 23,281,936 (receipt of USD 13,000,000 and balance brought forward of USD 10,281,936) for the project operations for the financial year, only USD 10,564,047 (excluding ineligible expenditure) was spent, leaving a balance of USD 12,717,889. This represents approximately 45% absorption rate. I was not availed with any Semi Annual Internal Audit Reports for the year under review. Most probably the Semi Annual Internal Audits were not conducted. Actual output per month was still below the monthly planned quantities. However, during the October 2019 audit, it was noted that there was improvement in terms of physical progress (actual amount of works implemented). It was established that the failure to achieve the planned quantities is because the planned quantities are theoretical and calculated based on amount of work left as per set deadline of January 2020 and does not take into consideration the contractor’s available resources. + + + + +147 + + + + + + + + + + + +  It was noted that the Contractor exhibited financial inability to handle the project, which is evidenced by inherent slow progress despite the fact that all contractual advance amount was paid. In September 2019, the contractor suspended work due to cash flow problems. The civil works on the climbing lane at Kagombe had been delayed due to late issuance of final decision on the design. UNRA agreed on the design to be implemented in that section (Kagombe) in August 2019 yet that section (km 30+000 to km 51+700) was handed over to the contractor on 8th January 2018. +15 Albertine Regional Sustainability Program (ARSDP) – Works 2019/20Opinion Unqualified  I observed failure of road shoulders, line drain and a speed hump. I also observed that the contractor continued to construct line drains on steep slopes without scour checks which are an indication of poor quality of works and maintenance by the contractor and lack of close supervision by the consultant exposing road users to safety risk. At the time of audit, the engineer’s facility was at 88% progress with noticeable cracks below window sills and floor apron with no indication of recent works being undertaken. Further, the documents provided as evidence of purchase of the land by the contractor in 2016 at UGX 305,000,000 do not confirm the status of ownership of the land. The state of the facility indicates poor workmanship, poor quality materials used, and lack of close supervision implying the facility may not be completed to the contractual standard by end of the project. I noted that only USD 117,105.57, representing invoices for the months of May and June 2019 was paid to the the Supervising Consultant, leaving a total of USD 815,625.47 for the months of July 2019 to June 2020 outstanding. I also noted that the individual consultants were not paid for all the months in the financial year which exposes the entity to interest charges in line with section 46.1 of the contract for delayed payment beyond 15 days after the due date (60 days after receipt by UNRA). Contrary to Section 24.1(a) of the supervision contract requiring the consultant to provide effective Professional Liability Insurance with a minimum coverage of the value of the contract, I noted that the Insurance policy executed relating to addendum 1 covers the period 04/06/2019 to 04/09/2020 leaving the period after 4th September 2020 uninsured with no fallback position for UNRA in case the Consultant does not perform to his expectations. I noted late Remittance of Pay As You Earn (PAYE) and National Social Security Fund (NSSF) deductions by the contractor contrary to Section 6.4 of the General conditions of the Contract that the required the contractor to comply with all the relevant laws applicable to the contractor’s personnel, including laws relating to their employment, health, safety, welfare, and others, and shall allow them all their legal rights. Work Permits for all the foreign Consultant’s staff were not provided for review apart from that of the Resident Engineer and the Programmer implying that the expatriate staff are working in Uganda irregularly and this may lead to deportation, which will in turn affect the progress of work. +16 Uganda Road Fund (URF)Opinion Unqualified  There was a shortfall in releases amounting to UGX.5.6bn representing 2% of the budget. The entity budgeted to receive UGX 448.8Bn, but only UGX 443Bn was released. Furthermore, the entity remained with unspent balance of UGX.154m representing an absorption level of 99.9%. I sampled 12 out-puts with 153 activities worth UGX. 442Bn representing 98% of the total budget. I noted that out of the 153 activities, 75 activities representing 49% were fully implemented while 57 activities representing 37% were not implemented. The Road Fund did not provide evidence of preparation and submission of + + + + +148 + + + + + + + + + + + + quarterly performance reports. The Fund did not collect the road user charges because of the incongruence in the URF Act 2008 and the URA Act 1991. Whereas Sections 21 of the Uganda Road Fund Act requires that URF collects User charges as a source of revenue to the Fund, Uganda Revenue Authority (URA) collects Road User charges as part of their revenue collections and makes remittances to the Consolidated Fund as per section 14 of the URA Act. This is contrary to Section 21 of the Uganda Road Fund Act 2008 which requires user charges to be directly remitted to the Fund on a monthly basis. This implies that the Fund cannot access all the funding sources envisaged under its Act. I noted that the entity had a plan for procurement of vehicles amounting to UGX 1,050,000,000 for three financial years 2017/2018 to 2019/2020. However, only UGX 600,070,993 was received. This lead to a shortfall in the vehicles required to facilitate entity operations. URF released unbudgeted emergency funds amounting to UGX 11,055,166,936. Review of reports revealed an approved budget of UGX 3,566,493,638 and actual releases amounting UGX 14,621,660,574 resulting in excess releases of UGX 11,055,166,936. The Annual Road Maintenance Programmes (ARMP) from UNRA lacked a Board approval and some ARMPs from local governments lacked District Road Committee (DRC) approvals. A comparison of the releases proposed from programming Department for DUCAR agencies with what was actually released by Fund management of the Secretariat revealed a variance of UGX 20,031,923,834. Accordingly some agencies got more while others received less than what the Fund allocation formula had indicated. Most of the entities did not utilize the funds as planned. Consequently, UGX 3,993,652,934 remained unspent at the end of the financial year. Some agencies did not provide accountabilities to the Secretariat as was required. A total of UGX 48,823,499,301 remained outstanding in un- submitted accountabilities. I noted that the Project for construction of the URF/PPDA House had delayed in terms of works completion. The project had so far progressed up to 72% of the project time budget, but the physical progress of the works was still at 43% by the end of the financial year. M&E activities are fully undertaken in house by staff of the Secretariat and the URF Board. However, the approved work plan is not executed as planned resulting in non-attainment of the laid M&E planned outputs and objectives. This was partly attributed to the difficulty in ensuring the availability of the Board Members who are part of the teams since they are not full time employees of the Fund, and have busy schedules elsewhere which impedes timely execution of M&E activities. + LANDS SECTOR +1 Ministry Lands, Housing and Urban DevelopmentOpinion Unqualified  The Ministry did not prepare a strategic plan for the year 2019/20 to guide the planning activities for the period under review. As a result of the above, I could not undertake an assessment of the achievement of the Ministry’s’ strategic targets/goals in line with the NDP II. Out of the budgeted NTR of UGX.4.0Bn for the financial year 2019/2020 only UGX.5.7Bn was realized, representing a performance of 42 % above the target. The Ministry budgeted to receive UGX.63.055Bn in Government receipts out of which UGX. 58.051Bn was warranted, resulting in a shortfall of UGX. 5Bn which is 7.9% of the budget. Out of the total receipts for the financial year of UGX. 58.051Bn, UGX. + + + + +149 + + + + + + + + + + + + 56.222Bn was spent resulting into an unspent balance of UGX. 1.829Bn representing an absorption level of 96.8%. The balance unspent was subsequently swept back to the consolidated fund at the end of the financial year. I sampled 35 outputs with a total of 131 activities worth UGX.49.0Bn and noted that 17 outputs with a total of 68 activities and expenditure of UGX.9.89Bn were fully quantified. Four (4) outputs with a total of 36 activities and expenditure worth UGX 32.74Bn were insufficiently quantified. 14 outputs with a total of 27 activities and expenditure worth UGX.6.41Bn were not quantified. I assessed the implementation of 17out puts that were fully quantified with a sample of 68 activities worth UGX.9.89 Bn and noted that 5 outputs with a total of 9 activities worth UGX.4.64Bn were fully implemented. 11 outputs with a total of 56 activities worth UGX.5.11Bn were partially implemented, and 1 output with a total of 3 activities worth 0.14Bn were not implemented. Included in the payables amount of UGX.144,329,975,873 under Note 23 of the financial statement are outstanding payments of UGX.122,865,554,828 (85%) in relation to payment of compensation arrears to 84 ranchers. A total of UGX.4,882,002,772 (25.5%) was paid to 10 ranchers on the outstanding claim UGX.19,174,498,000 of the previous financial year leaving a balance of UGX.14,292,495,228 which has been outstanding for the past three (3) financial years. I further noted that in the financial year under review, the ministry incurred additional compensation arrears of UGX.108,573,059,600 resulting mainly from revaluation of previous claims and a few new additions. Shortcomings were observed in the Ministry’s fleet management that included incomplete recording of the motor vehicles in the asset register, un- updated asset management module, and lack of a fleet management policy. +2 Albertine Region Sustainable Project (ARSDP) - LandsOpinion Unqualified  I noted that whereas there was an extension of the Project to 28 January 2021, the project activities may not be completed by the stated time. The roads in Buliisa district were at about 70% completion, and the roads in Hoima district were at about 30% completion. In addition, the physical planning for market development had not yet commenced at the time of concluding the audit. +3 Uganda Land Commission – ULCOpinion Qualified  Out of the approved budget of UGX.40,572,637,872, only UGX.38,856,201,474 was warranted/released resulting into a budget shortfall of UGX.1,716,436,398 representing 4.2%. 3 of the fully quantified outputs with expenditure of UGX 0.012 Bn were partially implemented. The payables balance for land compensation was UGX 128,955,644,716 as at 30th June, 2020. However, the relevant supporting journals and documents for the liability of UGX 9,436,110,584 were not availed for review, rendering the genuineness of the liabilities doubtful. In addition, payables amounting to UGX 15Bn were overstated in relation to the claim balance due to the church. Receivables amounting to UGX 3.966 Bn relating to the overpayment to Kampala archdiocese were not recognized. Non-produced assets worth UGX. 187,279,181,177 lacked supporting documents in form of offer letters, acceptance letters, valuation reports, survey reports; copies of titles, and survey reports. There has been delay to enact the ULC amendment bill and relevant regulations. The land fund account though opened at Bank of Uganda has not been operationalised. The Commission does not have a land inventory and database for all government land and properties under its jurisdiction that are either occupied by tenants, vacant, acquired under compensation (but not yet re- + + + + +150 + + + + + + + + + + + + distributed to the bona fide occupants), or acquired and owned by other government institutions and missions abroad. During the three financial years leading to 2019/20, the Commission planned to spend UGX. 650,000,000 on acquisition of vehicles from government funding. A sum of UGX.650,000,000 (100%) was warranted and released. The commission spent a total of UGX. 649,974,086 for the acquisition of 2 vehicles over the three (3) year period. However, there were inadequacies in motor vehicle recording and maintenance. +4 Uganda Support to Municipal Infrastructure Development Programme II – Additional Funding (USMID – II/AF)Opinion Unqualified  Out of the budgeted disbursements/receipts of UGX.544,778,428,567 in the financial year, only UGX.209,654,927,792 (38.5%) was available to the project comprising the balance brought forward of UGX.203,435,432,048 and the releases in the year of UGX.6,219,495,744. This resulted into a budget shortfall of UGX.335,123,500,775 (61.5%). Out of a sum of UGX.209,654,927,792 available for project utilization in the year, UGX.54,965,734,870 was spent, thus giving an absorption level of only 26.2%. The low rate of absorption of funds may result into delayed implementation of construction works, thus delaying the attainment of project objectives. I noted that the Municipal Councils of Arua, Jinja, Soroti, Mbale and Tororo had construction projects which were not completed during the first phase of USIMID. These projects were rolled over to USIMID-AF project. However, the projects in the Municipalities of Soroti, Mbale and Tororo had not made any significant progress or carried out any civil works. +5 National Housing and Construction Company Limited (NHCCL)Opinion Qualified  The Company has adopted fair value model for subsequent measurement of Investment Properties under IAS 40 where it is required to report all items of investment property at fair value on a continuous basis, at each reporting date, which was not done. Accordingly, I was unable to satisfy myself, using alternative audit procedures, the valuation of investment property as at June 30, 2018 which was reported at UGX.301.4 billion, and UGX.292.3 billion as at June 30, 2019. In addition the Company had incomplete records in regard to these assets, and some of which were encroached on by third parties and some government institutions limiting the Company’s access and control over these assets. I noted that the Company incurred a loss of UGX.6.5 billion and has negative operating cash flows of UGX.9.3 billion for the year ended June 30, 2018, and negative operating cash flows of UGX.3.8 Billion for the year ended 30th June 2019. Continuity as going concern is therefore, dependent on future profitable operations of the Company and the availability of funds to meet the obligations as and when they fall due. + ACCOUNTABILITY SECTOR +1 Ministry of Finance, Planning and Economic Development (MoFPED)Opinion Unqualified  At the time of the audit (June 2020), out of the planned five (5) strategic targets/goals, only one (1) target had been fully achieved while four (4) were not achieved despite receiving over 90% of its annual budgets for the five (5) years. Analysis of domestic arrears revealed that tax arrears worth UGX.336.98Bn were written off last year, but despite this write off, new tax arrears have already built up to the tune of UGX.71Bn in one year alone. I also noted that arrears relating to recurrent expenditure had doubled over the last year which implies non adherence to the commitment control system. A review of the domestic arrears schedule attached to the financial statements revealed that the unsettled obligation in relation to subscription to international organizations stood at UGX.43.68Bn, with some dating as far back as financial year 2014/15. I noted that the Ministry had a number of challenges in the management of + + + + +151 + + + + + + + + + + + + its fleet such as failure to carry out annual inspection of vehicles, increasing annual repair and maintenance costs, lack of medical tests for drivers and an aging fleet. Several subventions under the ministry continue to experience staffing challenges which hamper their effective execution of their mandates. For example staffing gaps were observed at: Enterprise Uganda (54.2%), Public Private Partnership (PPP) Unit (95%), and at National Lotteries and Gaming Regulatory Board (35.3%), among others. +2 National Population CouncilOpinion Unqualified  Due to underfunding of the budget, the Council failed to implement eight key planned activities worth UGX.1,153,853,767. This is likely to affect the attainment of the Council’s strategic objectives. Contrary to Paragraph 10.13.4 of the Treasury Instructions, 2017, NPC had not yet operationalized the Asset Management module in the Sage Pastel Financial Management system as at the end of the financial year 2019/2020. Contrary Section 11(1) of the National Social Security Fund (NSSF) Act, I noted that UGX.397,792,981 was paid to staff as gratuity expenses, but the Council neither deducted the 5% National Social Security Fund nor made the 10% standard contribution thereon. This exposes Council to the risk of penalties and fines being imposed by NSSF. +3 Project for Financial Inclusion in Rural Areas (PROFIRA)Opinion Unqualified  No material issues. +4 FINMAP REAPOpinion Unqualified  No material issues. +5 Uganda Revenue Authority (URA) – RevenueOpinion Unqualified  Out of the revenue target of UGX.20.344Tn set for the Authority for the financial year 2019/2020, UGX.17.131Tn was collected representing performance of 84% of the set target and a shortfall of 16% despite full funding for the allocated budget of UGX.450.964Bn (which was a 25% increment). A comparison of some sampled taxpayers balances in the Tax arrears schedules with their ledger balances from the E-tax system to confirm accuracy and completeness of the Tax Arrears balances revealed a net variance of UGX.2,139,478,634,789. I further noted that the schedule had duplicated names and amounts to the tune of UGX.109,658,539,050 thus affecting taxpayer confidence in using the system and also exposing taxpayers to a risk of inaccurate payments. Included in the UGX.248,727,514,100 reported as the amount due to UCF as at 30th June 2020 is revenue from taxes on Government Procurements totaling UGX.132,512,038,303. However, review of the reconciliation statement for the revenue due to the UCF, revealed that an outstanding amount of UGX.132,512,038,303 that was listed as “correction of outstanding issues on UCF after reconciliation with treasury” which was under investigation. There was no evidence provided of what constituted this amount or indeed where this money was being held thus rendering the amount un-supported and misleading. Unutilized deposits of UGX.130.807Bn that were credited on the Gross Payment Account (GPA) by some Large Taxpayers for clearing their tax obligations in the future were included in the customs tax collection of UGX.5.141Tn instead of being treated as liabilities (differed revenue) leading to over-statement of Customs and Excise Taxes collected and understating liabilities at the reporting date. + + + + +152 + + + + + + + + + + + +- I noted that contrary to the International Monetary Fund (IMF) benchmark recommending a Tax-to-GDP ratio of at least 15% for developing countries, Uganda’s Tax/GDP ratio is around 12% and has averaged around 11% for the last three (3) years thus hindering the achievement of sustainable economic growth. + + + +- Challenges were noted in the effectiveness of the URA Revenue Collection Mechanism such as existence of a large hard-to-tax sector, limited record- keeping by businesses, considerable tax evasion, limited tax compliance, and weak tax administration capacity. It was noted that URA favours the self- assessment regime which makes it easy for the hard-to-tax groups to evade/avoid tax unless specific measures are taken to alleviate this. However, this calls for more tax audits to investigate noncompliance, yet URA has thin staff given the current staffing ratio of 1:3054 in Domestic Tax Compliance. + + + +- Anomalies were noted in the Payment of UGX.1,883,755,265 to an Informer contrary to the Informer Management and Reward Policy. I noted conflict of interest situation occasioned by the Commissioner Customs, backdated approvals by the Commissioner General and Commissioner Customs after the cash had been withdrawn from the bank, backdated filling of the Tax evaders Information Form 0710 (TIF form 001) which is meant to record particulars of the informer, the particulars of alleged tax evader, and the allegations of the case that was filled after the Customs Audit contrary to the policy, lack of evidence on record on how the informer obtained the information contrary to Informer Management Policy and the Offence Report Form F 71 was also filled after the Customs Audit contrary to the East African Community Customs regulation + + + +- The Tax Investigations Department identified taxes worth UGX.42.972Bn for recovery during the year, however, only UGX.242,017,569 was recovered resulting into a balance of UGX.42.73Bn uncollected despite having communicated to the respective collecting departments. It was further noted that the same arrears were not recognized and included in the respective departmental arrears schedules at the year end. + + + + + +- Review of sample taxpayers for Large Tax payers and Medium taxpayers from e-tax with VAT offsets in their monthly VAT returns, revealed that several taxpayers with VAT offsets totaling to UGX.1.531Tn were not subjected to a VAT monthly return verification process by URA officers to establish why more input tax (purchases) than output tax (sales) had been declared consistently for the period contrary to Section 3.2 of the Domestic Tax Compliance Handbook. There is a risk that the above taxpayers could be filing incorrect monthly VAT returns. + + + +- It was noted that taxpayers with VAT claims of UGX.2.619Tn had not opted for a tax refund as required under the law which is a red flag to possible evasion of audit by such taxpayers. The VAT Act requires taxpayers with VAT Offset returns above 5 million to be audited by URA before payment. + + + +- A review of the VAT nil suppliers report, obtained from e-tax dynamic reports revealed 53,473 cases where taxpayers had purportedly made purchases amounting to UGX.1Tn and claimed 18% input VAT of UGX.180.06Bn, however, the corresponding sales (Output tax) were not declared by the companies (other taxpayers) from whom the above taxpayers bought goods or services. False declaration of VAT returns results into loss of revenue. + + + +- Analysis of the tax arrears report from the e-tax system and the respective tax refunds made during the year revealed that some taxpayers were paid refunds when they had other outstanding tax obligations to the tune of UGX.45.976Bn. This not only contravenes the law but also denies the government the much-needed revenue. + + + +- Review of the manual database provided by the URA revealed that out of the 2,157 cases of the approved tax refunds worth UGX.335.792Bn in the year, + +153 + + + + + + + + + + + + only 446 cases were processed within the legally provided 30 days. Further, it was noted that out of the 1,176 cases worth UGX.352.602Bn still pending processing, 750 cases worth UGX.268.266Bn have stayed for above 60 days without processing. 3,684 applications worth UGX.672.141Bn were rejected; although, only 191 cases were completed within 30 days, 2,170 completed above 30 days but within 1 year and 1,323 cases rejected after 1 year. In addition, 844 refund claims worth UGX.134.Bn in the e-tax system were still pending payment even after approval with 741 refund claims worth UGX.124.142Bn having past the statutory timelines. Shortcomings were noted in the customs management that included outstanding Bond in Force (BIF) of UGX.4,684,981,974, Undeclared Imports in Asycuda System i.e. 3,166,908 manifest packages with a gross weight of 442,926,830 kg were never declared in the ASCYUDA system in the year under review and failure to track High-Risk Goods worth UGX.225,356,228,707 despite procurement of Electronic Cargo Tracking System (ECTS) to facilitate real-time monitoring of all high-risk goods without exception. +6 Uganda Revenue Authority (URA) – Corporate ServicesOpinion Unqualified  Analysis of the payment to short term employees revealed that on average, 232 employees were hand-picked, given temporary employment contracts and were being paid a monthly basic salary, transport and housing allowances. I noted that despite spending UGX.4bn on such employees, URA does not have a policy for short-term employees which exposes the recruitment and remuneration to abuse. The URA Headquarter Building (URA Tower), had a provision for a car parking Tower to accommodate 360 cars. However, due to miscommunication between the project manager, structural engineer and contractor, the floor was not finished according to specifications and thus the Parking Tower has remained unused since 2018. A review of a schedule of IT systems being maintained by the authority revealed that the process of system acquisition is not well streamlined, as a number of systems appear to be duplicating the functions and roles of other systems owned by the authority. For example, the Imperva solution that should ideally provide a multi-layered protection to ensure that the authority websites and applications are always available and secure, is being duplicated by a number of software applications like; Intellinx and Privileged Account Management Solution, among others. As a result, the Authority could have avoided expenditure worth UGX.53.485Bn comprising UGX.34.861Bn acquisition costs and UGX.18.624Bn worth of maintenance costs. I noted the performance of the Tax Payer Registration and Expansion Project (TREP) performed poorly. During the financial year 2019/20, the collaborating institutions countrywide registered only 142,620 taxpayers against a target of 283,615 taxpayers, representing a 50.2% registration success. Furthermore, although TREP had a revenue target of UGX.124.58n in FY 2019/20 to be collected by the four collaborating agencies, only UGX.26.8Bn was collected by end of June 2020 representing a 19.8% performance rate. The Accounting Officer authorized cash withdrawals 392 times amounting to UGX.11.036Bn contrary to limits set up by the PSST and the URA Cash Policy. It should be noted that the withdrawn cash was used to pay for air tickets, car hire, staff claims among others, all of which can be avoided through the use of bank transfers. Contrary to the PFM 2015, URA has six (6) operations bank accounts with a combined turnover of approximately UGX.1 trillion in commercial banks. This frustrates the cash flow management process of Treasury, distorts monetary policy and allows URA to override financial management controls. I advised + + + + +154 + + + + + + + + + + + + URA to transfer all operations accounts to Bank of Uganda. Contrary to section 23 of the PFM 2015, the Authority awarded multi-year contracts to the tune of UGX.57.2Bn but did not avail evidence of approval of these multi-year commitments by Parliament. The multi-year contracts mainly comprised of contracts signed for support and maintenance of systems and motor vehicle financing. +7 Treasury OperationsOpinion Unqualified  Out of the total receipts for the financial year of UGX.9,981.6 Bn, only UGX.8,843Bn was spent by TOP resulting into an unspent balance of UGX.1,138Bn representing an absorption level of 88%. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account despite having unpaid bills of UGX.1.4 Trillion. The reported payables under government securities were understated by UGX.1,373 billion due to TOPs accounting policy of non-recognition of the accrued interest on securities. I further observed, the reported foreign borrowings amounting to UGX.38,916 billion in the financial statements as at 30th June 2020, was only principal and excluded the accumulated interest thereon, due to the same accounting policy. This has an overall effect of understating the Governments’ debt position. I observed that prior to the establishment of the Uganda Development Corporation (UDC), under the Uganda Development Corporation Act 2016, UDC held shares in some companies and others arising out of the repealed UDC Act Cap 326. Upon the establishment of the UDC, under the 2016 Act, there was no provision for the management of the said companies as the Act only limited the investments that the new UDC would take up upon commencement. The status of the said companies remains unclear. The Attorney General, Section 19 of the Government Proceedings Act and in a court decision (MISCELLANEOUS CAUSE NO. 376 OF 2019) all opined that Court awards and amounts are statutory in nature and should be charged directly on the consolidated account and does not require appropriation by parliament. Whereas this principle is applied by the Secretary to Treasury under Treasury Operations, the same is not done for cases being paid by MOJCA. As a result of this, a total of UGX.989Bn remains outstanding and continues to attract interest as a result of default to pay. I advised Treasury to deal with all outstanding court awards collectively instead of concentrating on those with mandamus orders since they all have a direct charge on the consolidated fund. +8 Public Procurement and Disposal of Public assets Authority (PPDA)Opinion Unqualified  The entity budgeted to receive UGX.24.83Bn out of which UGX.17.28Bn was warranted, resulting in a shortfall of UGX.7.55Bn which is 30.4% of the budget. Failure to receive all the appropriated funds affects implementation of planned activities. I noted that out of the planned nine (9) strategic targets/goals, three (3) targets had been fully achieved, three (3) were partially achieved while three (3) were not achieved at all. Out of the total receipts for the financial year of UGX.17,273,277,316, UGX.16,773,426,361 was spent by the entity resulting in an unspent balance of UGX.499,850,955 representing an absorption level of 97%. Shortcomings were noted in the management of entity fleet such as; failure to comply with the vehicle standardization guidelines of Government; absence of annual motor vehicle inspections and noncompliance with disposal conditions. +9 PPDA Appeals TribunalOpinion Unqualified  Section 17(1) (2) (3) of the Public Finance and Management Act (PFMA) 2015 states that Every appropriation by Parliament shall expire and cease to have any effect at the close of the financial year for which it is made. Contrary to this section, the Tribunal had not spent UGX.180Million by close + + + + +155 + + + + + + + + + + + + of the year; however, the funds were never returned to the Consolidated Fund. The Tribunal received UGX.2.344Bn and by the close of the year, had spent UGX.2.164 (92.3%) leaving UGX.180Bn as unspent. A critical review of the budget revealed that majorly, the unspent funds related to planned regional sensitization seminars which the Accounting Officer attributed to the Covid19 pandemic. +10 Directorate of Ethics and Integrity (DEI)Opinion Unqualified  The Directorate Budgeted to receive revenue amounting to UGX.8.6Bn for the year ended 30th June 2020, but only UGX.5.4Bn was released representing a performance of 63% of the target. Accordingly, there was a shortfall in releases amounting to UGX.3.2Bn representing 37%. Failure to receive all the appropriated funds affects implementation of planned activities. I sampled 17 out-puts worth UGX.8.6bn representing 100% of the total budget and noted that, 4 outputs representing 31% were fully implemented while 13 outputs representing 69% were partially implemented. Funds amounting to UGX.32,181,000 were irregularly diverted and spent on other activities without seeking the necessary approvals. Domestic arrears increased from UGX.186Million in the previous year to UGX.442Million (i.e. by 138%) in the year under review. Overdue Domestic Arrears expose the entity to a risk of unnecessary and costly litigation. Shortcomings were noted in the area of Fleet Management which included; lack of funding for acquisition of motor vehicles; lack of vehicle movement logbooks, lack of vehicle service analysis records, absence of annual inspections, lack of appraisal of the drivers, noncompliance with disposal conditions and inadequacy of motor vehicle maintenance funding. Staffing Gaps as well as a high staff turn-over were noted at the Directorate with 56% of the positions vacant. There were no separate financial Statements compiled for the Leadership Code Tribunal. My review of the activities intended to operationalize the Tribunal indicated that 8 activities (23%) were fully implemented, 11 activities (31%) were partially implemented whereas 16 activities (46%) were not implemented at all. +11 Insurance Regulatory Authority (IRA)Opinion Unqualified  Out of the total receipts for the financial year of UGX.29.72 Bn, UGX.16.02Bn was spent by the entity resulting into an unspent balance of UGX.13.71Bn representing an absorption level of 53.9%. Under absorption of realised funds implies non-implementation of planned activities and hence delayed service delivery. I noted that IRA had total receivables of UGX.1.393Bn, of which UGX.1.074Bn are classified as short term. These short term receivables have risen from UGX.0.096Bn (i.e. by 1000%). Accumulation of receivables could lead to bad debts and loss of funds to the Authority. I observed that Construction works for the IRA Office Building were behind schedule at level 11 of the superstructure, with no finishing works done. The works so far done were estimated at only 36% against elapsed time of 88%. This may lead to further cost overruns resulting from inflation and other cost increases. A review of the IRA staffing position indicated that the Authority only has 59 staff members out of the approved 76 positions leaving a total of 17 (22%) positions vacant. Understaffing negatively affects the ability of the Authority to deliver quality insurance regulatory services. I noted that the Authority had a number of challenges in the management of its fleet including absence of fuel registers, failure to undertake medical tests for drivers and absence of Motor Vehicle Service Analysis Records. + + + + +156 + + + + + + + + + + + +  I noted that planned procurements worth UGX.4.1Bn were not undertaken during the year under review. This points to delayed service delivery. +12 Insurance Training College (ITC)Opinion Unqualified  The College experienced revenue shortfall of UGX.2,865,852,364 which represents 34% of the total budget. Failure to collect all the budgeted funds affects implementation of planned activities. I sampled 10 out-puts and noted that 5 outputs representing 50% were fully implemented while the remaining 5 outputs (also representing 50%) were partially implemented. Trade and Other Receivables increased from UGX.345,631,409 in the financial year 2018/19 to UGX.806,359,804 in 2019/20 i.e. by 133%. The College’s Cash flows were tied up in receivables that may turn into bad debts. Since establishment of the College, in 2017, no Board has ever been appointed by the Minister and currently the College is governed by the old Governing Council and a Board of Trustees which existed before the Act. +13 Financial Intelligence Authority (FIA)Opinion Unqualified  The entity budgeted to receive UGX.13Bn out of which UGX.10.3Bn was warranted, resulting into a shortfall of UGX.2.7Bn, which is 21% of the budget. Failure to receive all the appropriated funds affects implementation of planned activities. Out of 7 outputs planned, four (4) outputs with a total of thirteen (13) activities worth UGX.7.97Bn were fully implemented and three (3) outputs with a total of seven (7) activities worth UGX.0.83Bn were partially implemented. I noted an increase of UGX.221,790,800 (201%) in rent arrears from UGX.110,554,585 at the beginning of the year to UGX.332,345,385, as at 30th June 2020. It was observed that the Authority failed to absorb UGX.750,565,645 meant for anti-money laundering/countering financing of terrorism funded by JAR- SRC European Union as budget support. A review of the staffing structures for FIA revealed that out of the total approved structure of 64 staff, only 39 (61%) positions were filled and 25 (39%) positions had not been filled. +14 Uganda Investment Authority (UIA)Opinion Unqualified  I reviewed the approved revenue estimates for the financial year 2019/2020 and noted that UIA budgeted to receive Revenue of UGX.15.448Bn during the year under review. The entity received UGX.11.514Bn as releases from the consolidated fund representing the overall performance of 74.5% and a budget shortfall of 25.5%. Shortfalls in revenue constrain the implementation of approved activities and therefore service delivery. I further noted that out of the warrants issued amounting to UGX.11.,514Bn, a total of UGX.11.199Bn was spent by the entity resulting into unspent balance of UGX.0.314Bn representing an absorption level of 97.3%. Un- utilized funds are an indication of capacity challenges to execute approved activities. I noted that the Authority had a structure of 124 approved positions out of which 75 positions were filled leaving 49 vacant positions (40%) which is an indication of gross understaffing. I observed that a number of Private Industrial Parks have been established in the Country without the control and regulation by the UIA. I also noted a number of shortcomings in the entity’s fleet management which included; vehicles not accurately recorded in the format prescribed by the Accountant General; Obsolete stock of vehicles; lack of budget for acquisition of vehicles; Improper Maintenance of Motor Vehicle Records; Non- Existence of a Fleet Management Policy and Guidelines; Failure to Maintain Fuel Registers; Failure to Maintain Proper Vehicle Movement Log + + + + +157 + + + + + + + + + + + + Books; Absence of Annual Motor Vehicle Inspections and Non-compliance with Disposal Conditions. +15 Uganda Retirement Benefits Regulatory Authority (URBRA)Opinion Unqualified  During the year under review, I noted that, although the entity budgeted to collect revenue worth UGX.6,975,600,000, only UGX.2,216,616,352 was collected resulting to a short fall of UGX.4,758,983,648 equivalent to about 68% of the budget. Such significant revenue shortfall affects implementation of planned activities. Inspection of properties in Uganda revealed that land located in Masese which was fraudulently leased out to an individual and a company by the Jinja District Land Board had been successfully recovered and titles cancelled. The title has, however, not been registered in the UPHL names. It is thus still exposed to the recurring encroachments. +16 Deposit Protection FundOpinion Unqualified  No material issues. +17 Uganda Microfinance Regulatory Authority (UMRA)Opinion Unqualified  During the year ended 30th June 2020, 670 Money Lenders and 138 Non Deposit taking institutions were licensed. However, the entity lacks a comprehensive database of all Microfinance institutions and money lenders in Uganda, implying that there may still be a number of unregulated players. UMRA failed to gazette the licensed microfinance institutions as required by Regulation 7 of the Tier 4 Microfinance Institutions and Money Lenders (Non-deposit taking Institutions) Regulations 2018, thereby exposing consumers to risk of dealing with unlicensed and fraudulent firms. Contrary to the Commitment control system UMRA had irregularly accumulated domestic arrears worth UGX.163,713,265 in the year under review. These majorly comprised of sundry creditors. Contrary to Section 17(1) (2) (3) of the Public Finance and Management Act 2015, the Authority had unspent funds of UGX.143,137,931 at the year-end that were never returned to Treasury. Failure to return unspent funds exposes such funds to a risk of diversion. +18 Uganda Bureau of Statistics (UBOS)Opinion Unqualified  I noted a number of issues in the implementation of the approved budget such as partial implementation of Strategic Plan, under absorption of funds, partial or non-implementation of activities, under performance of the NTR & government releases. I noted that UBOS has eight (8) donor funded projects which had received disbursements amounting to UGX.16,915,568,070 during the year although their budgets had not been approved by Parliament. I noted delayed Implementation of a number of Projects such as; UBOS Panel-Survey Project, Baseline Education Survey Project (WB-GPE-UTSEP), UN-Women despite the requisite funding being availed. Contrary to the e-cash system, I noted that the Bureau had not fully embraced the use of E-cash system while paying for one-off activities such as workshops and seminars for non-vendors in the IFMS system. A review of the staffing structures for UBOS revealed that out of the total approved structure of 320 staff; only 281 (88%) positions were filled, leaving 39 (12%) positions vacant. I noted a number of short comings in the management of the Bureau motor vehicle fleet such as: failure to maintain fuel registers, absence of motor vehicle inspections, drivers’ competencies for operation of entity fleet not monitored, inadequacy of motor vehicle maintenance funding, non- compliance with disposal conditions and lack of a disposal plan for vehicles. +19 Uganda Property  During the year under review, I noted that, although the entity budgeted to + + + + +158 + + + + + + + + + + + + Holdings Limited (UPHL)Opinion Unqualified collect revenue worth UGX.6,975,600,000, only UGX.2,216,616,352 was collected resulting to a short fall of UGX.4,758,983,648 equivalent to about 68% of the budget. Such significant revenue shortfall affects implementation of planned activities. Inspection of properties in Uganda revealed that land located in Masese which was fraudulently leased out to an individual and a company by the Jinja District Land Board had been successfully recovered and titles cancelled. The title has, however, not been registered in the UPHL names. It is thus still exposed to the recurring encroachments. +20 Departed Asians Property Custodian Board (DAPCB)Opinion Unqualified  Management did NOT disclose any balances for properties and physical assets in the financial statements for the period despite properties being the Board’s most important asset. This was attributed to delayed valuation of these assets. The Accounting Officer reported an annual deficit of UGX.1,141,662,873 for the year 2019/20. I noted that this deficit reduced by 13.5% from the prior year despite revenue increasing by over 20%. This implies that the continued existence of the entity is wiping out all the proceeds got from sale of properties. I noted that the entity’s payables had increased from UGX.UGX.71,249,986 to UGX.244,366,032 representing a percentage increase of by 243% the prior year, yet the entity was preparing to wind down in the subsequent year. Out of the planned thirteen (13) outputs to be achieved by the Board; 2 were fully achieved while 11 were partially achieved. This was attributed to a deficit in funding and the lock down as a result of the COVID 19 pandemic. I noted that up to 90 properties whose owners had earlier been compensated had been illegitimately repossessed by new unknown claimants. These included several properties from which rent was being collected by the Board at the time. +21 Uganda Free Zones Authority (UFZA)Opinion Unqualified  As a result of unfair dismissal of a former Authority staff by the Board, the Authority was directed by Court to pay damages amounting to UGX.186million. It was determined that the Board’s failure to follow the laid down human resource policies, resulted in an avoidable costs to government. The Authority is yet to obtain title for the 109 acres of land located at Block 535, Plot 483 & 326 in Buwaya, Wakiso, which it purchased in the previous financial year at UGX.7,412,000,000. I established that, although the Authority has since taken possession of the land in question, there is still a protracted legal battle in relation to the same land arising from the counterclaim for ownership by other individuals other than the purported rightful owners. The Authority irregularly made an advance payment of UGX.10,752,389,907 to NEC before obtaining any completion certificates from the supervising consultant; this constitutes 86% of the total contract amount of UGX.12,574,195,406. However, by the time of the audit, no work had been done on the site and no Advance Payment guarantee was obtained. +22 Tax Appeals tribunal (TAT)Opinion Unqualified  Contrary to the Tribunal’s charter that requires completion of a case within 6 months, results from 14 applications worth UGX.113bn which had been concluded between 3-5 months ago had not been communicated to the involved parties, thus denying timely delivery of justice. Following the supreme court decision, which required the Tribunal to be the court of first instances in all tax disputes, the number of cases being filed at the Tribunal has increased. However, the current structure of the Tribunal does not allow for multiple concurrent sittings. As a result, the Tribunal now has a backlog of 35 cases worth UGX.111,753,460,704 in tax value as at + + + + +159 + + + + + + + + + + + + 30th June 2020 due to failure to hold multiple hearings.  A review of the transfers from the Ministry of Finance revealed that out of an approved budget of UGX.3,841,632,145, a total of UGX.3,589,819,218 was received and spent by the entity. This resulted in a funding gap of UGX.251,812,927.  Contrary to Sections 34(2) and 45 of the Public Finance and Management Act (PFMA), 2015, review of fleet management practices of the Tribunal revealed the following; a) Non-existence of a fleet management policy and guidelines to guide the usage and eliminate theft, losses, wastage and misuse of motor vehicles; b) Fuel registers were not maintained for all the Tribunal motor vehicles fleet; c) The Tribunal did not have logbooks for all the vehicles its uses; d) All Tribunal vehicles were not annually inspected as required. e) Repair and service analysis register for all Tribunal vehicles was not maintained; and f) All (100%) drivers had not undertaken an annual medical examination as required to obtain their fitness status. +23 Bank of Uganda (BoU)Opinion Unqualified  No material issues. +24 Post Bank Limited - 2019Opinion Unqualified  No material issues. +25 Pride Microfinance Limited (MDI) – 2019Opinion Unqualified  No material issues. +26 Uganda Development Bank Limited (UDBL)Opinion Unqualified  No material issues. +27 Competitiveness and Enterprise Development Project (CEDP) Component 2-5 IDAOpinion Unqualified  Project expenditure was UGX.17 billion out of an approved budget of UGX.24.2bn resulting into 70% budget performance. The following matters were specifically noted; Uganda Business Facilitation Centre (UBFC) The construction experienced a slow down due to outbreak of COVID -19 pandemic which hampered the progress of works given that there was reduction in the number of personnel on site and delays occasioned by acquisition and transportation of construction materials.  Uganda Hotel and Tourism Training Institute (UHTTI) Construction experienced slow down due to outbreak COVID -19 pandemic which hampered progress of works. The site remained closed from April to July, 2020. Besides, there was also a delay in delivery of materials and equipment which were under importation. Overall, there is need to improve absorption of funds to ensure project objectives are realized in the planned periods. +28 Competitiveness and  Out of the budgeted funds totaling UGX.71.5 billion for the year under + + + + +160 + + + + + + + + + + + + Enterprise Development Project (CEDP) Component 1 Land Administration IDAOpinion Unqualified review, the Project spent only UGX.58.4 billion, resulting into under absorption of UGX.13.1 billion representing a performance level of 82%. This implies that some project activities were not implemented during the year. +29 Microfinance Support CentreOpinion Unqualified  UGX 3.4bn was advanced externally as mobilization whose accountability was yet to be received one and half years after the close of the financial year. The money was advanced to persons who operate outside the Micro Finance Support Centre to advocate for government programmes amongst SACCOs. +30 Agricultural Credit Facility (ACF) – 2018/2019Opinion Unqualified  Delinquent loans have reduced from UGX.3,127,436,000 to UGX.2,903,165,000 as a result of recovering UGX. 504,271,183 from two PFIs. During the year one loan facility with a GoU contribution of UGX. 280,000,000 was declared delinquent. +31 Agricultural Credit Facility (ACF) – 2019/2020Opinion Unqualified  Non-performing loans have increased from UGX.2,903,165,000 in the year 2018/19, to UGX.5,821,898,740 during the year under review, as a result of non-recovery of UGX.3,592,388,311. However, UGX.673,654,500 was recovered during the year from previous delinquent loans. +32 Inspectorate of GovernmentOpinion Unqualified  A review of the entity’s Ministerial Policy Statement and Approved Budget Estimates revealed that the Inspectorate had an approved revised budget of UGX.54.9Bn, out of which UGX.50.7Bn was released resulting to a shortfall of UGX.4.2Bn. In addition, out of the total receipts of UGX.50.7Bn, a total of UGX.45.0Bn was spent by the entity resulting into an unspent balance of UGX.5.7Bn representing an absorption level of 88.7%. I assessed the implementation of twelve (12) outputs with a total of thirty (30) activities worth UGX.43.2Bn. Out of the thirty (30) activities, eight (8) activities were fully implemented, representing (26.7%), nineteen (19) activities representing (63.3%) were partially implemented and three (3) activities representing (10%) were not implemented. +33 IG NUSAF IIIOpinion Unqualified  No material issues. +34 IG DANIDAOpinion Unqualified  No material issues. +35 National Lotteries and Gaming Regulatory BoardOpinion Unqualified  Due to underfunding of the budget, the Board failed to implement six key planned activities of: staff and Board members Training, compliance monitoring exercise, Enforcement exercise, Consultancies for the strategic plan and development of Enforcement and compliance manual, as well as travel for due diligence. Contrary to Section 14 of the PFMA (2015), budget estimates for the financial year 2019/20 worth UGX.6,369,000,000 were approved retrospectively by the board on the 08th October 2019 which was after parliament’s approval of the Appropriation Bill in June 2019. This makes the board’s approval inconsequential. The Board has operated for over three years without an approved strategic plan to guide its operations and management, contrary to the requirements + + + + +161 + + + + + + + + + + + + of the Treasury Instructions. I noted significant delays in the procurement of a central monitoring system worth UGX.10.83bn. Whereas the market survey was undertaken in 2017, funds budgeted for in 18/19 financial year and contract awarded in June 2020, by the time of reporting the contractor had not yet performed. +36 Privatisation and Utility Sector Reform (PURSP) (Divestiture & Redundancy Accounts)Opinion Unqualified  Although Parliament appropriated UGX.3,890,845,000 for the operations of the Privatization Unit, expenditure amounting to UGX.6,302,109,000 was incurred leading to unappropriated expenditure of UGX.2,411,264,000 which was drawn from the divestiture Account. The operations of the entity are not sustainable as the funds from the appropriation are not sufficient and yet the divestiture account has also been depleted. Payables of PAYE amounting to UGX.1,777,272,000 in respect of deductions from employees were not remitted to the Uganda Revenue Authority due to constraints in the funding of salaries. Failure to provide for funds to pay taxes within the budget has led to the accumulation of the unpaid PAYE tax of UGX.9,601,880,000 as at 30th June 2020. Out of the receivables due from outstanding sales proceeds amounting to UGX.125.78 billion, a provision for bad debts of UGX.44.74 billion has been made. Some of these receivables had been outstanding for long periods of up to 23 years, making recoverability doubtful. +37 Contingencies Fund – 2018/2019Opinion Unqualified  I noted that funds amounting to 1.4Bn remained unspent and uncommitted and was never returned to the consolidated fund by the various entities. Twelve (12) of the thirteen (13) beneficiary entities did not open separate contingencies fund accounts which exposed the funds to the risk of co- mingling. Funds amounting to UGX 0.831Bn meant for implementing activities were advanced to personal accounts of staff. Funds to amounting to UGX.320,537,160 remained unaccounted for at the time of audit. I advised management to effect recoveries from the concerned staff. +38 Contingencies Fund – 2019/2020Opinion Unqualified  Contrary to Section 26(i) of the PFMA 2015 (as amended), I noted that for f/y 2019/20, Parliament only appropriated UGX.62.070 Billion to the Contingencies Fund instead of UGX.163.51 Billion, which is 0.5% of the previous financial year’s (FY2018/19) appropriated budget, causing a deficit of UGX.101.4 Billion. Underfunding of the contingencies fund distorts implementation of the approved budget for the current year as evidenced by requests and approvals of supplementary funding relating to natural disasters and emergencies that occurred during the year. +39 Uganda Warehouse Receipt Systems AuthorityOpinion Qualified  I noted that the entity had no approved strategic plan for the period 2015/16 -2019/20, which set out both the long term and short term targets to be achieved. Absence of a strategic plan poses a risk of undertaking operations that are not aligned to the National Development Plan. I noted that payments amounting to UGX.519.8Million were made to suppliers for services rendered the Authority, through personal bank accounts of staff contrary to the requirements under the Treasury Instructions. The funds remained unaccounted for. I noted that management paid UGX.205.9Million as facilitation of inspections of warehouses for certification that involved meetings with various stakeholders as well as supervisory activities of the Board of Directors during March and May 2020, a period in which the country was under the COVID-19 total lock down, where people’s movements and gatherings were prohibited. Under the circumstances, the authenticity of these payments is therefore doubtful. I noted that, although the Authority has been in existence for 10 years and + + + + +162 + + + + + + + + + + + + has received over 90% of its required budget; i) No warehouse has ever been licensed by the Authority ii) No warehouse keepers have ever been licensed by the Authority, despite numerous trainings undertaken by the Authority iii) No non tax revenue (NTR) has ever been collected from inspecting warehouses and ware house keepers even though the Authority has been carrying out this activity. iv) Out of the 190 warehouses inspected and sensitized by the Authority only twenty six (26) warehouses have applied for licensing with only six (6) qualifying.  I noted that despite the numerous trainings, sensitization and publicity expenditures, the concept is not gaining the anticipated buy-in.  I noted that that, during the year under review, the Authority’s Board met only twice, was not appropriately constituted and had no Board charter. +40 Uganda Seeds Limited – 2018/19Opinion Unqualified  As disclosed under Note 7 of the financial statements which highlights the position of the current account between Uganda Seeds Ltd (USL) and PURSP, the funds generated from USL are deposited on the PURSP account and at the close of the year, UGX.1,175,249,581 remained as a receivable from PURSP. This figure is accumulating overtime and I have not been availed any evidence of plans for its utilization or eventual transfer to the Consolidated fund. USL entered into an agreement with a Cooperative Union to lease 1,130 acres from Uganda Seeds Ltd. However, at the time of the audit, the Union had only utilized 223 acres of land, representing a 20% usage. This has a negative effect on the concession fees receivable as they are based on a percentage of sales. Because of the underutilization of land, the sales are low which leads to loss of concession revenue to Government. As a result, the cooperative union is paying UGX.3,255,330 as concession fees of 1% arising from gross sales of UGX.325,533,000 as opposed to the projection in which the minimum concession fees of UGX.7,500,000 were expected if the Cooperative union had used the entire land. The company’s assets are leased and only a caretaker manager is employed to monitor the concession. However, as required by its Articles and Memorandum of Association, the company must have a board. Physical inspection of the leased assets revealed lack of proper maintenance. +41 Capital Markets AuthorityOpinion Unqualified  No material issue. + INFORMATION COMMUNICATION SECTOR +1 Ministry of Information Communication Technology and National Guidance (MoICT & NG)Opinion Unqualified  The entity budgeted to receive UGX.69.2Bn out of which UGX.62.2Bn was warranted, resulting into a shortfall of UGX.0.7Bn which is 10% of the budget. Revenue shortfalls affect implementation of planned activities. I assessed the implementation of three (3) out puts that were fully quantified with a total of eleven (11) activities worth UGX.2.61Bn. Out of the Eleven (11) activities, Four (4) activities were fully implemented, representing (36.4%), Four (4) activities representing (36.4%), were partially implemented and Three (3) activities representing (27.3%) were unimplemented. I noted that, although the entity received UGX.6Bn as supplementary for + + + + +163 + + + + + + + + + + + + COVID-19 activities, UGX.7.9Bn was spent resulting into over expenditure of UGX.1.9Bn. This implies a diversion from previously budgeted activities. Out of the 9 COVID19 activities that were fully quantified, 4 activities worth UGX.2.4Bn were fully implemented while 5 activities worth UGX.3.6bn were partially implemented. A review of fleet management for 25 vehicles held by the Ministry revealed the following shortcomings; lack of a fleet management policy and guidelines; lack of annual inspections; all the 13 drivers employed by the Ministry had not undertaken any annual medical examination as required to obtain their fitness status; 13 vehicles had exceeded the recommended 5 years useful life, one (1) of which had its mileage above the recommended 250,000km; log books of 14 vehicles obtained from Office of the Prime were not handed over to the Ministry. +2 Uganda Communications Commission (UCC)Opinion Unqualified  Out of UGX.22.864Bn budgeted for various activities, UGX.10.633Bn was spent by the entity resulting into an unspent balance of UGX.12.23Bn representing an absorption level of 57% on these specific items. Unspent funds imply a failure to fully implement all planned activities and therefore delayed service delivery. The Commission failed to collect 2% Gross Annual Revenue levy from all radio and Television operators which deprives the Commission of revenue to implement ICT and rural communication services. Contrary to the UCC Act 2013, the Commission is not fully executing its mandate as I observed many TV, radio, postal and Courier service operators operating without licenses. Additionally, all operators were not submitting audited financial statements, quarterly and annual reports to the Commission. This limits oversight. Shortcomings were noted in the entity’s fleet management, including; Failure to comply with the Vehicle Standardization Guidelines of Government; Non maintenance of vehicle log books; Absence of annual vehicle inspections, and Non maintenance of maintenance of motor vehicle service analysis records. +3 Posta UgandaOpinion Unqualified  The Company budgeted to collect UGX.21,106,834,670 but only UGX.15,297,436,000 was collected resulting to a shortfall of UGX.5,809,398,670 representing 28%. Despite collecting 72% of its targeted revenue, Posta achieved below 50% performance in 4 strategic objectives of; Improvement of Financial Performance, Institutionalizing Quality Assurance, being a Best Practice Employer and Improving the image of Posta as a Socially Responsible and Respected Corporate Organization. The company reported total Non-Current assets amounting to UGX.77,893,607,672 which were last revalued six years ago in 2014, contrary to their policy of revaluing assets every 5 years. Uncollected receivables increased to UGX.12,431,862,770, from the previous year’s figure of UGX.11,047,009,610 as per the statement of financial position. This implies idle cash which negatively affects implementation of activities. The company lacked land titles for several pieces of land which include land in Masaka, Mpiji, Tororo, Fort Portal, Kasese and Palisa. The company has over 3,500 square meters of un-occupied rental space, in the Central Business District (CBD), which should have earned the Company UGX.2,381,310,000 during the year under review. Several shortcomings were noted in the area of Fleet Management which included; lack of vehicle movement logbooks, lack of vehicle service analysis records, as well as failure to assess Drivers’ competencies for management + + + + +164 + + + + + + + + + + + + of the Company fleet. Several statutory deductions were not remitted to the relevant authorities by the close of the Financial Year. These included PAYE of UGX.2,119,142,420, VAT of UGX.3,264,575,760 and NSSF amounting to UGX.465,491,510. +4 Uganda Broadcasting Corporation (UBC)Opinion Qualified  Management disclosed UGX.267.196Bn as PPE in the statement of financial Position. However, that the property included in this figure was partially re- valued in 2018. Under the circumstances, the accuracy and completeness of the value of PPE reported cannot be confirmed. Out of the trade receivables of UGX.30.461Bn, attempts to recover debts have only yielded UGX.40m in the past two years, 50% of the receivables are more than 6 years old while a specific receivable of UGX.10Bn has no supporting contract. All the above are indicators that the amounts may not be recoverable yet management only provided for general bad debts of 5% which appears insufficient. Trade payables of UGX.8.017Bn in the statement of financial position, lack relevant supporting documents such as: LPOs, inward invoices, claims, delivery notes or demand notes. I performed an aged analysis on UBC trade payables with 2014 as the base year and noted that payables amounting to UGX.2.504Bn (31%) were well beyond six (6) years old without any movements, thus casting doubt as to their existence and accuracy since the entity does not reconcile the payables balances at all. As such, the reported payables could be overstated. Statutory obligations Payable which include PAYE, VAT, WHT and NSSF all totalled to UGX.59.624Bn. This is an increased by 81% compared to what was reported in the prior year of UGX.32.912Bn. This is quite significant and implies weaknesses in remittances of statutory obligations which may attract legal suits, fines and penalties. Advances totalling to UGX.182Million lacked accountability documents in form of reports, acknowledgement receipts and evidence of work done. Delay in providing accountability raises doubts as to whether the funds were properly utilized or expended for lawful purposes and may lead to falsification of documents. Management has not remitted UGX.506.2Million being 2% UCC levy as required Section 5 sub-section (i)- (c) of the Uganda Communications Commission Act 2013. It is important to note that this 2% UCC levy was meant to be a support towards the completion of the digital migration process which is not yet fully accomplished. Despite spending over UGX.20Bn as funding for Revamp of UBC, various aspects of the revamp have not been implemented. These include, amendment of UBC Act, adequate funding for the new staff structure, programming charter and Editorial Policy and Guidelines not yet in place, UBC Broadcasting infrastructure has not been fully overhauled, most of the outstanding financial obligations not yet settled and no arrangement is in place to recapitalize the Corporation. This casts doubt to the sustainability of the Corporation. +5 Regional Communications Development Project (RCIP)Opinion Unqualified  During the procurement of the E-Governement Procurement system, there was a noted cost escalation of 35% from the original contract price of USD.998,000 to USD.1,347,620 contray to procurement regulations. This is despite the fact that a due deligence report from Zambia had warned about such increases by the same provider. As a result MoFPED has terminated the contract and procured an alternative local solution at almost UGX.4.4bn. The funds paid to the supplier are thus wasteful. The project failed to absorb a total of UGX.42,661,034,022 as at 30th June 2020 which had been availed to spend by the World Bank and GoU in the + + + + +165 + + + + + + + + + + + + year under review. This may hamper the completion of implementation of project activities within the stipulated project period. The overall drawdown of the RCIP loan as per financing agreement between Government of Uganda and the Bank stood at 46.84% after 3½ years of implementation. This performance is unsatisfactory given the fact that the project life cycle effectively ends in February 2022 with approximately 18 months (30% of the project lifetime) left. +6 National Information Technology Authority (NITA-U)Opinion Unqualified  I established that of the total approved warrants of UGX.40,811,409,498, a total of UGX.38,553,902,483 (94%) was spent by the Authority leaving a balance of UGX.2,257,506,111 (6%) not utilised/absorbed at the end of financial year. As a result a number of planned activities were not implemented, which included Procurement of a cyber security solution for vulnerability assessment, access control and awareness monitoring, and Sensitization workshops, among others. There was no budget provision for settlement of domestic arrears in the approved budget estimates for 2019/20 despite accumulation of a total of UGX.2,697,267,641 in un-paid obligations. As a result the entity diverted UGX.1,726,230,918 from other planned activities to pay domestic arrears. I noted that during budget execution, funds amounting to UGX.209,125,134 were charged on MTEF codes other than those on which the activities were budgeted. I noted that between the FY2018/19 and FY2019/20, although the number of MDAs/DGS connected to the NBI/EGI network but not utilizing the NBI/EGI services had dropped from 76 to 68 out of the 580 sites connected, a total of UGX.1,047,480,000 and UGX.1,318,803,196 has been spent by the Authority in the FY2018/19 and FY2019/20 respectively to connect MDA/DLG sites not utilising any services on the NBI/EGI. +7 Rural Communications Development Fund (RCDF)Opinion Unqualified  A total of UGX.12.4Bn remained unspent at the close of the financial year 2019/20. I observed that, procurement of goods and services worth UGX.7.78Bn had not been performed despite the fact that some of these procurements had commenced in the previous financial year 2018-2019. Accordingly, Funds remained unutilized and were rolled over to the next financial year (2020-21). This delays service delivery and exposes the Fund to unnecessary future cost increases. + TRADE SECTOR +1 Ministry of Trade, Industries and Cooperatives (MoTIC)Opinion Unqualified  I noted that at the time of the audit (June 2020), out of the planned fifteen (15) strategic targets/goals, no target had been fully achieved, while fifteen (15) were partially achieved. The entity budgeted to receive UGX.121.565Bn out of which UGX.104.151Bn was warranted, resulting in a shortfall of UGX.17.414Bn which is 14.3% of the budget. Budget shortfalls impact on level of implementation of approved activities and hence service delivery. I noted the Ministry received off-budget financing to a tune of UGX.6,991,334,861 which was not transferred to the consolidated fund as required by the law. A number of shortcomings were noted in the Ministry’s fleet management which included; Unplanned acquisition of motor vehicles; Improper Maintenance of Motor Vehicle Records; Lack of a Fleet Management Policy and Guidelines and Inadequacy of Vehicle Maintenance Funding. A total of UGX.17.7Bn was reported by the Ministry as the amount not paid by three sponsor companies to the tobacco growers in the different tobacco growing regions of Bunyoro and West Nile contrary to Regulation 11(1) of the Tobacco (Control and Marketing) Regulations 2000. Such delays affect the livelihoods of the tobacco growers and demoralizes them from growing + + + + +166 + + + + + + + + + + + + the crop in the subsequent seasons. A total of UGX.16,238,499,100 was paid by the ministry during the year under review for compensation claims to Cooperative Societies for losses incurred during the liberation war. A number of shortcomings were noted in the said payments including: vehicle claims not backed with evidence of logbooks, absence of financial statements to back existence of assets claimed, absence of chief government valuers reports, lack of evidence of possession of cattle claimed, among others. +2 Great Lakes Trade Facilitation (GLTF) ProjectOpinion Unqualified  I noted that, out of the UGX.7,639,157,729 received by the Project, only UGX.2,538,627,288 was utilized representing 33% absorption and as a result, some activities were not implemented. UGX.170,820,000 paid to UBOS to carryout out baseline surveys on cross border perception at the three border posts of Mpondwe, Bunagana and Goli, during the year under review remained un accounted for by the time of audit. Counterpart financing of USD.3 million that was supposed to be contributed by Government of Uganda for compensations and management of environmental mitigation measures was not provided. +3 Sustainability Support Project (TRACE III)Opinion Unqualified  No material issues. +4 Uganda National Bureau of Standards (UNBS)Opinion Unqualified  A review of the entity’s ministerial policy statement and budget revealed that the Bureau had an approved budget of UGX.68,935,917,349 out of which UGX.57,910,405,941 was released, representing performance of 84%. As a result, the Bureau was unable to fully implement all the planned activities. Out of the planned six (6) strategic targets/goals, no target had been fully achieved, six (6) were partially achieved despite realizing, on average, over 95% of the budgeted revenues during the last strategic plan period which ended in the year under review. The Bureau received off-budget financing to a tune of UGX.414,245,367 which was not transferred to the consolidated fund as required by the law. I noted that the Bureau failed to develop standards for certain products, released commodities due to absence of testing capacity and had inadequate surveillance at border Posts. This affects the implementation of the mandate. Despite Treasury releasing UGX.460,000,000 for acquisition of land for the establishment of the Quality Assurance Infrastructure in the Cities of Mbarara, Mbale and Gulu, the Bureau did not acquire the land. +5 Uganda Development Corporation (UDC)Opinion Unqualified  Out of the total cash available to spend of UGX.60.679Bn (including balance b/f from prior year), only UGX.48.108Bn was actually spent by the entity, representing an absorption level of 79%. This resulted into a balance of UGX.12.572Bn unspent and many unimplemented activities. With the approval of the Board, UDC diverted UGX.9.436Bn (20% of the budget) from investment activities to fund operations at headquarter. This hampers fulfillment of the UDC mission. There was no progress in the implementation of Luwero Fruit factory, Zombo Tea factory and Moroto Cement factory despite providing a combined funding of UGX.6.427Bn. UDC procured and installed a tea planting machine worth UGX.4.358Bn without concluding the financing model (Equity or Lease Financing) with Kayonza Tea Factory. Currently, the two parties are haggling over which form the financing should take. Due to failure to undertake a feasibility study, UDC investment of machinery + + + + +167 + + + + + + + + + + + + in Kigezi Highland Tea Limited of over UGX.9Bn is only operating at 20% capacity. UDC has decided to invest an additional UGX.5Bn grant to support further production of green leaf by the farmers. Although these funds are recoverable, there is doubt of recovery since the implementation was marred with inconsistencies contrary to the grant agreement. UDC has not taken over government interests in projects highlighted in Section 4(e) of the UDC Act including among others, Munyonyo Commonwealth Resort, Amber House etc. I noted that procurements worth UGX.0.307Bn were undertaken using direct procurement which was not applicable in the circumstances thus denying attainment of value for money. I noted that despite having projects all over the country, the entity only had a fleet of four (4) vehicles, two of which are not in a good mechanical condition. The entity has been forced to opt for hire of vehicles which is expensive. I noted that out of 69 established posts in the structure, only 37 are filled (53% staffing level) and 32 are vacant including key positions of six managers and six senior officers. +6 Soroti Fruits Limited (SOFTE)Opinion Unqualified  Soroti Fruits Limited had an approved budget of UGX.25.05Bn of which UGX.10.57Bn was from sale of products and UGX.14.48Bn from the Central Government. However, the entity only realized UGX.10.18Bn creating a shortfall of UGX.14.87Bn. The worst performing revenue source was sale of various products which realized UGX.0.166Bn in revenue against a target of UGX.10.57Bn. The performance was dismal and is likely to lead to erosion of capital. This is an indication of lack of adequate marketing for the products. Despite receiving UGX.10.014Bn from GOU funding, SOFTE spent only UGX.4.895bn resulting into an unspent balance of UGX.5.119Bn representing an absorption level of 48.89%. The Company still has capacity challenges that are constraining it from undertaking all its planned activities. SOFTE operates in a manual environment where stock, production outputs, sales, and expenditures are tracked manually. This is likely to affect the timeliness and accuracy of reports on an entity that is heavily dependent on inventory management. +7 Export Promotions Board (UEPB)Opinion Unqualified  A review of the staffing levels against the approved structure revealed that out of the 40 positions established, only 18 were filled leaving a shortfall of 55%. This implied that the entity was operating at less than half of the approved staff structure. Audit noted that the entity’s core mandate of promoting and enabling Uganda’s export sector was suffering because the entity’s activities were insufficiently coded in the GoU Chart of Accounts. These activities which involved a lot of foreign and domestic travel were wrongly coded as consumptive expenditure yet for an entity like UEPB, are more often development expenditure. The entity had a shortfall of 70% in its funding to achieve its mandate. While UEPB required an annual budget of over UGX.13Bn to among others; conduct market studies abroad, promote and market Uganda’s manufacturing, agricultural sector, mineral resources and tourism in foreign markets; only UGX.3.9Bn had been appropriated to the entity leaving a shortfall of over 9 billion i.e., 70% shortfall. The entity had a shortfall of UGX.4.2Bn required to participate in the Expo 2020 Dubai. I noted that no funds had been appropriated to the entity for this activity which was originally scheduled for 20 October 2020 – 10 April 2021. Due to the COVID-19 pandemic, the dates were revised to 1 October 2021 – 31 March 2022, but still no funds had been appropriated for this event which would give an opportunity to market Uganda’s export sector to + + + + +168 + + + + + + + + + + + + the world. I examined three (3) strategic objectives of UEPB, and I noted that two (2) objectives representing 66% had been fully achieved, while (1) objectives representing 33% had been partially achieved. The entity budgeted to receive UGX.5.043Bn out of which UGX.3.996Bn was warranted, resulting into a shortfall of UGX.1.046Bn which is 21% of the budget. Revenue shortfalls affect the implementation of planned activities. I also noted that did UEPB did not have a policy on Motor vehicle Management to guide the usage and eliminate theft, losses, wastage and misuse of motor vehicles. The annual average vehicle maintenance cost per vehicle increased from UGX.4,333,333 in FY 2017/18 to UGX.8,799,266, which is 50.8%. this increase in maintenance cost was not sufficiently explained since the entity’s fleet was fairly new. Management attributed this to increased level of activity at the board and an ageing fleet. + TOURISM SECTOR +1 Ministry of Tourism, Wildlife and Antiquities (MoTWA)Opinion Unqualified  Assessment of the Ministry’s performance for the strategic period 2015/16- 2019/2020 revealed that out of the planned 24 strategic goals set to be achieved by the Ministry; 7 were fully achieved, 10 were partially achieved, while 7 were not achieved. The Accounting Officer attributed the dismal performance to failure to operationalize the Tourism Development levy. Out of the total receipts for the financial year of UGX.33.24Bn, only UGX.27.42Bn was spent by the entity resulting into an unspent balance of UGX.5.82Bn representing an absorption level of 82.5%. As a result, I noted that of the 37 quantified activities worth UGX.24.90Bn assessed; 15 activities representing 41% were fully implemented, 22 activities representing 59% were partially implemented, while 1 activity representing 4.5% was not implemented. An amount UGX.10.44Bn was advanced to a foreign firm for hosting of the MTV Africa Music Awards (MAMA 2020). This event did not take place in the year under audit as had been the planned, due the Covid 19 pandemic. +2 Nile Hotel Limited (NHL)Opinion Unqualified  Out of the planned Seventeen (17) strategic targets/goals set in the strategic plan, Six (6) targets were fully achieved, two (2) were partially achieved while nine (9) were not achieved. The plan is now expired and there is need to factor all unimplemented activities into the new plan. Out of the budgeted expenditure for the financial year of UGX.1.4Bn, only UGX.0.597Bn was spent by the entity resulting in unspent funds worth UGX.0.799Bn representing an absorption level of 43%. Subsequently 9 outputs were not attained as planned. Board members, notably the Board Chairperson and one of the Company Directors (Chairperson Finance and Audit Committee), were involved in the day to day management/activities of the Company including approval of accounting transactions. The two Board members are also signatories to all the Company's Bank accounts. This practice contradicts with good corporate Governance. The current board contracts have no term limits. Members that were appointed in the financial year 2000/2001, were still providing strategic direction for the organisation and continued to make key decisions for Nile hotel in the year under review. Over stay of the Board without evaluation of performance may cloud the members input at the strategic level. +3 Uganda Tourism Board (UTB)Opinion  Funds for activities relating to administrative expenses, travel abroad and purchase of goods and services totaling to UGX.268,088,648 lacked the requisite accountability support documents. I could therefore not confirm whether the funds were put to good use. + + + + +169 + + + + + + + + + + + + Qualified  The Board charged wrong expenditure codes to a tune of UGX.286,907,882. Mischarging of expenditure undermines the budgeting process and also misleads users of financial statements. UTB advanced a total of UGX.566,918,869 to a company to organise a Global Tourism event in Berlin Germany which was cancelled due to Covid-19 yet the contract signed between UTB and the event manager had no safeguards for reclaiming this money. Government thus incurred a financial loss in this regard. The Accounting Officer flouted procurement rules by awarding contracts worth UGX.802,891,850 without following proper procurement procedures. In some instances, direct procurement was irregularly used, while in others contract committee approvals were not sought. +4 Uganda Wildlife Authority (UWA)Opinion Unqualified  I noted that the entity budgeted to collect NTR of UGX.107.749Bn during the year under review but only UGX.96.723Bn was collected, representing a performance of 89.8% of the target. I noted that Gorilla Tracking which is the major revenue source which contributes more than 50% to the Authority’s budget financing was greatly affected during the latter part of the financial year due to Covid-19 pandemic. Out of the total receipts for the financial year, UGX.9.5Bn representing about 10% of the available funds could not be absorbed. Under absorption of funds implies unimplemented activities and therefore delayed service delivery. Included in its total payables of UGX.28.422Bn, in the statement of financial position, is an amount of UGX.5.789Bn which has been outstanding for more than one year. Accumulation of payables creates a risk of litigation that may lead to payment of penalties and fines for delayed settlement to possible aggrieved parties. Included in its total receivables of UGX.10.637Bn, in the statement of financial position, is an amount of UGX.0.230Bn for sundry debtors and UGX.1.896Bn due from concessionaires which have been outstanding for more than one year. There is a risk of these amounts becoming bad debts. The establishment of the Wildlife Compensation scheme and Community Wildlife committee are yet to be completed. Delays to operationalize the scheme and form the community wildlife committees may negatively affect the Authority’s relationship with the local communities surrounding the conservation areas. I noted that the Authority had a number of challenges in the management of its fleet such as failure to carry out annual inspection of vehicles, lack of medical tests for drivers and aged vehicles not being disposed. The Authority failed to get an Electronic Revenue Collection and Booking System as result of failure by the contracted firm to complete the work. There is a likelihood of loss of UGX.149,185,714 (50% of the contract value), already paid to the firm in the event of non-delivery given the passage of time. + WATER AND ENVIRONMENT SECTOR +1 Ministry of Water and Environment (MWE)Opinion Unqualified  All the planned 11 strategic goals to be achieved by the Ministry were partially achieved. Out of the budgeted revenue of UGX. 424,360,091,618 for the financial year 2019/2020, UGX. 330,277,816,130 was released representing performance of 77.8% of the target, with a shortfall in releases of UGX. 94.08Bn representing 22.2 % of the budget. Furthermore, the entity remained with unspent balance of UGX. 1.06Bn representing absorption level of 99.6%. I sampled 38 out-puts with 91 activities worth UGX. 257.8 Bn representing + + + + +170 + + + + + + + + + + + + 89.2% of the total budget and noted 18 outputs with 42 activities worth UGX 86.884Bn were not quantified to enable measurement of performance. Furthermore, the 49 activities worth UGX 127.763Bn assessed; 10 activities representing 28% was fully implemented while 39 activities representing 72% were partially implemented.  The Ministry did not prepare/ submit the annual monitoring plans to MoFPED and NPA ,contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  I noted that the entity procured 101 vehicles in the last three years but availed records for 47 vehicles at a cost of UGX 9,476,488,611. I was not availed cost records for 54 vehicles. Shortcomings were observed in the Ministry’s fleet management as highlighted below:  Unplanned vehicle acquisitions,  8 vehicles exceeded the recommended engine capacity, 18 had the recommended engine capacity while 21 did not have their engine capacities documented,  All 101 vehicles procured were not in the assets register,  Absence of regular inspection and vehicle reconciliation in the assets register,  Absence of a fleet management policy,  No maintenance work plan to guide its vehicle maintenance. I noted that there was delayed payment of compensation to Project Affected Persons (PAPs) under FIEFOC 2 Project.  I noted the following under audit of regional facilities:  Delayed Payment to Contractors, completion of projects and remittance of statutory deductions on average by over 365 days  Incomplete composition of Contracts Committees,  Untitled land for Piped water schemes,  Inadequate resources in terms of personnel and transport to regularly monitor towns,  Non-preparation of individual water management zone work plans,  Disparities in the annual work plan and performance reports,  Under collection of revenue,  Non-preparation of Business Plans for Umbrella Authorities,  Faulty ordinary and bulky water meters, and un-metered water connections,.  Non-billing and collection of revenue from Katooke scheme,  Gazetted water areas not controlled by NUWS,  Non-functioning gazetted schemes for Northern Umbrella and, Out of the approved staff structure of 722 positions 342 positions have been filled, leaving 380 positions vacant. +2 REDD+ -MWEOpinion Unqualified  All the Project’s five (5) components with 13 outputs were not fully achieved and the project experienced serious delays having been extended twice. Out of the planned disbursements of USD.1,617,200 in the year, a sum of USD.882,597.60 was disbursed, representing a performance level of 54.6% of the target. Out of the total Project funds available for spending of USD 1,141,575.74 (inclusive of the balance of USD.258,978.14 brought forward from the previous year), a sum of USD.916,657 was spent representing an absorption level of 80.3%. The project lacked of a detailed annual work plan for the FY 2019/2020 to + + + + +171 + + + + + + + + + + + + enable assessment of the extent of quantification and implementation of activities. The Contractor for the design and documentation of two REDD+ Emissions Reduction Programs in Uganda worth USD.1,050,307.06 was terminated due to the effects of COVID 19 pandemic after payment of USD.472,638.18 to the contractor. The process of procuring a new contractor was on-going. +3 Integrated Water Management and Development Project (IWMDP) – MWEOpinion Unqualified  Out of the approved budgeted donor revenue of USD 12,074,521, only USD 2,142,007 was realized representing a performance of 17.7% and out of the GOU counterpart budget of UGX 6,989,992,000, only UGX 4,686,693,811 (67%) was released. Out of the disbursed funds of USD 2,142,007, only USD 422,636.53 was utilized representing an absorption level of 19.7%. All the 41 planned activities budgeted at USD 12,074,521 were not quantified. Out of the 41 planned activities 2 activities (5%) were fully implemented, 5 activities (12%) were partially implemented while 34 (83%) were not implemented at all. +4 Strategic Towns Water Supply and Sanitation Project (STWSSP)Opinion Unqualified  Out of the planned donor disbursements of UGX. 25,044,256,000 for the year, UGX. 15,439,480,707 was realized representing performance of 61.65% of the target. Out of planned Gou contribution of UGX 900,000,000, only UGX. 352,116,308 was released representing performance of 38.35%. Out of UGX. 15,439,480,707 donor disbursement, only UGX. 14,855,922,346 (96%) had been absorbed by 30th June 2019 leaving a balance UGX. 583,558,361 (4%) un-utilized. All the project’s 14 planned outputs were fully quantified. Out of the 14 planned outputs, 3 were partially implemented while 11 were not implemented at all. Three project milestones were not achieved contrary to the Project implementation schedule. +5 Support to Irrigation Investments in Uganda Grant – MoWEOpinion Unqualified  Out of the planned disbursements of USD 950,000 for the year, only USD 250,000 (26.3%) was realized representing performance of 26.3% of the target. Out of USD 250,000 disbursed, only USD 577.38 (0.2%) was absorbed leaving a balance USD 249,422.62 (99.8%) un-utilized. All the 6 planned outputs with a total budget of USD 950,000 were fully quantified. None of the 6 planned activities was implemented due to delays in the procurement process. +6 Northern Uganda Resilience Initiative Project (NURI) – MoWEOpinion Unqualified  Out of the planned project disbursement of UGX.1,885,830,000, a sum of UGX.2,300,000,000 was disbursed, representing an over performance level of 122% of the target. However, project management did not adjust the work plan and budget to reflect utilization of additional disbursement. Out of the total Project available funds of UGX.2,300,000,000, only UGX.779,565,783 was spent representing a low absorption level of 33.9%. Whereas the budget and work plan were fully quantified, the Project Implementation Report did not quantify the 18 activities as required, and as a result, I was unable to assess project performance/implementation against the work plan and budget. However, a review of the implementation report, indicated that the project did not implement 6 (33.3%) of the 18 planned activities budgeted at UGX.611,750,000. +7 National Environment  All the 5 planned strategic objectives in the financial year strategic plan were + + + + +172 + + + + + + + + + + + + Management Authority (NEMA)Opinion Unqualified partially achieved. Whereas the Authority did not budget for NTR, UGX 3,225,534,238 was collected. Out of the budgeted GoU revenue of UGX 26,051,823,000, only UGX 19,812,152,564 was warranted representing performance of 76% of the target. Out of the total warrants of UGX 19,812,152,564, UGX.19,807,472,266 was spent representing an absorption level of 99.98%. The Authority received off-budget funding to the tune of UGX 4,579,655,403. Out of 46 activities sampled, 4 activities (9%) were not quantified to enable measurement of performance. Out of the 42 quantified activities assessed, 18 activities (43%) were fully implemented, 21 activities (50%) were partially implemented while 3 activities (7%) were not implemented at all. The Authority did not prepare and submit the annual monitoring plans to NPA and OPM as required. There was delayed submission of the quarterly performance reports. No inconsistencies were noted between the annual cumulative performance reports and the results of audit verification. The administration of the National Environment Fund remained inactive. A number of observations were noted under Fleet management including failure to comply with vehicle standardization guidelines, efficient allocation of vehicles, availability of fleet management policy, and failure to capture all authority motor vehicles including in the Government Computerized Financial Management Information System among others. +8 National Forestry Authority (NFA)Opinion Unqualified  The Authority was not able to achieve 100% of the targets set in the Strategic Plan for the five-year period up to June 2020. Out of the budgeted Non Tax Revenue of UGX. 8,386,511,663 for the year 2019/20, UGX. 9,601,887,145 was collected resulting into an over performance of UGX. 1,215,375,482 representing a performance of 114.49%. Out of the budgeted transfers from the Treasury of UGX 32.4Bn, UGX 23,28Bn (71.65%) was warranted resulting in an under performance of UGX 827,029,013, out of which, UGX 23,050,847,079 (98.9%) was spent, resulting into an unspent balance of UGX 234,813,590. All the 6 outputs/24 activities with a budget provision of UGX 32,499,201,000 were quantified. Of the 24 quantified activities assessed, 8 activities (33.3%) were fully implemented, 14 activities (58.3%) were partially implemented while 2 activities (8.4%) were not implemented at all. The Authority did not submit the annual monitoring plans and reports to NPA as required. However, all quarterly performance reports to MoFPED were submitted in time. I noted a significant receivables balance of UGX 9,180,990,559 at close of the financial year and this impairs the liquidity position of the Authority. The Authority incurred expenditure totalling to UGX 518,900,000 on settlement of legal cases and court awards which could be mitigated with adequate boundary opening and prompt legal action. I noted non-compliance with vehicle standardization guidelines of Government, non-maintenance of motor vehicle records, and high vehicle maintenance costs for the 3 FYs 2017/18 to 2019/20. The Authority failed to adequately manage private investments in CFRs, and major encroachment on 8 CFRs including Bugoma; Zoka; Bajo, Kuila and Wamale; Nsowe and Kalombe; Namanve; Nakalanga and Zirimiti; Kabwika + + + + +173 + + + + + + + + + + + + Mujwalaganda; and Buti. Out of the approved staff establishment of 799 positions, only 344 (43%) are filled, with 455 positions vacant. +9 Nyabyeya Forestry CollegeOpinion Unqualified  The College did not conduct an assessment of the implementation of its strategic plan which contained 24 objectives. Out of the budgeted Non Tax Revenue of UGX. 592,754,000 for the year 2019/20, UGX 662,588,972 was collected representing a budget performance of 111.8% of the target. Out of the Budgeted transfers from treasury of UGX.2,542,873,000, a sum of UGX.2,014,269,395 was received representing a budget performance of 79.2% of the target. Out of the realized revenue of UGX 2,736,487,267 a sum of UGX 2,419,916,454 was spent, representing an absorption rate of 88.4%. All the 22 activities implemented by the College during the financial year were not quantified. Whereas management explained that all the 22 planned outputs had been achieved, without quantification, I could not measure and verify the extent of achievement of the planned outputs. The College did not prepare and submit the annual monitoring plans and performance reports to MoFPED and NPA as required. I could not assess accuracy of the performance reports since the College did not have any. There has been a declining trend in students enrolment at College for the last four years from 431 in the year 2016/17 to 234 in 2019/2020. Out of the 130 approved positions only 47 (36.1%) had been filled leaving 83 vacant positions. +10 Farm Income Enhancement and Forest Conservation Project II (FIEFOC)Opinion Unqualified  Out of the budgeted revenue UGX 123,005,002,000 only UGX.76,708,236,000 was realized indicating performance of 62.3%. All the 135 planned outputs with a budget provision of UGX. 123 billion and actual releases of UGX 76.708 billion were fully quantified to enable measurement of performance. 40 of the 135 planned activities were sampled; 2 outputs (5%) were fully implemented, 12 activities (30%) were partially implemented while 26 (65%) were not implemented at all. There was delayed completion of construction works with only 1 of the 5 irrigation schemes attaining the targeted level of completion. I noted that the construction Works for Mubuku II in Kasese were done without NEMA Approval. +11 Water Supply and Sanitation Programme Support (WSSP II) under Joint Water and Environment Sector Support Programme (JWESSP)Opinion Unqualified  All the 6 strategic objectives of the Project were partially achieved and Two (2) out of the twenty eight (28) planned activities were not quantified. Nineteen (19) activities were partially implemented while three (3) activities were not implemented at all. I noted discrepancies in the budgeted amounts for components 1 and 3 between the Ministerial policy statement and project Work plan generated from Navision. Out of the planned disbursements of UGX. 88,088,164,000 for the year, UGX. 75,628,676,668 was realized representing performance of 85.9 % of the target. Out of UGX. 75,628,676,668 disbursed, UGX. 78,036,979,672 (103%) was absorbed by 30th June 2020. This was as a result of the rolling over of the unspent balance of UGX.42,435,899,139 from the previous financial year. +12 Water Supply and  Out of the planned disbursements of UGX.18,673,200,000 for the year, a + + + + +174 + + + + + + + + + + + + Sanitation on Refugee Hosting Communities in Northern Uganda Funded by (KFW) PROJECT – MoWEOpinion Unqualified sum of UGX.6,213,437,064 was realized, representing performance of 33.2% of the target. Out of UGX.6.213Bn received, a sum of UGX.4.546Bn was absorbed, representing an absorption level of 73.2%. All the 28 planned activities for the financial year 2019/2020 were fully quantified and of which; 10 activities (35.6%) were fully achieved, 14 activities (50%) were partially achieved, while 4 activities (14.3%) were not achieved. +13 Uganda National Meteorological Authority (UNMA)Opinion Unqualified  Out of budgeted revenue of UGX.26,763,490,000 only UGX.18,102,000,000 was realized representing performance level of 67.6 % of the target. There was non-tax revenue worth UGX.1,451,265,112 was not budgeted for. Uncollected NTR of UGX.348.5 million from Uganda Civil Aviation Authority resulting from lack of computation schedules of Aeronautical Meteorological Services charges. Out of UGX 18,102,000,000 warranted, UGX 16,806,721,000 was absorbed by the authority leaving unspent balance of UGX.1,295,279,000 representing 93% absorption level. All 52 planned outputs with a budget provision of UGX.26,763,490,000 and actual releases of UGX.18,102,000,000 sampled were quantified. 33 of 52 planned outputs were sampled; 5 outputs (15%) were fully implemented, 3 activities (9%) were partially implemented while 25 (76%) were not implemented at all. Expenditure totaling to UGX.58,750,442 was mischarged on different account codes. UGX.34,072,409 was not accounted for. UNMA budgeted to spend UGX.1,150,000,000 on acquisition of motor vehicles; UGX.952,167,000 was warranted by the Treasury and spent by the Authority for the purpose. The Authority complied with the Government ban on acquisition of motor vehicles. All the 3 vehicles (100%) acquired at a total cost of UGX.84,418,489 were planned for. The engine capacity of the minibus acquired was above the recommended as per the vehicle standardization guidelines of Government. All the 3 vehicles were duly recorded in the assets register in the prescribed format. The Authority has a Transport Policy. Except for the Executive Director, all other vehicles were pooled for efficient management of fleet. Out of the budgeted vehicle maintenance of UGX 502,070,000, only UGX 288,177,317 was realized and spent for the 3 FYs 2017/18 – 2019/20 reflecting a funding shortfall of UGX 213,892,683 (42.6%). Of the 219 positions in the approved establishment structure, only 173 had been filled. Lack of an internal audit function. 44 of the 159 meteorological stations were non-functional. +14 Investment Plan Preparation Grant for the Strategic Plan for Climate ResilienceOpinion  The Project received 100% funding of approved budget of UGX.1,683,358,518. However, the project objective has been partially achieved, with 6 activities outstanding. Out of the UGX.1,683,358,518 availed funding, only UGX.619,962,312 (37%) was absorbed, leaving a balance of UGX.1,063,396,206 un-utilized. All the 31 planned activities with a total budget of USD.1,500,000 were fully + + + + +175 + + + + + + + + + + + + Unqualified quantified. Out of the 10 planned activities for the period, only 1 was fully implemented, 6 were partially implemented, and 3 were not implemented at all. Noted that there was no a legal framework to enforce implementation of climate intervention actions. +15 Multi - Lateral Lakes Edward & Albert Integrated Fisheries & Water Resources Management (LEAF II)Opinion Unqualified  Out of a total of 11 strategic outputs, 3 outputs (27%) were fully achieved, while 8 outputs (73%) were partially achieved). Out of the budgeted loan revenue of USD 2,538,701.7, a sum of USD 1,745,960.35 was disbursed representing a performance level of 68.8% of the target, while out of the approved GoU counter-part funding budget of UGX 3,350,000,000 only UGX 3,239,026,378 (96.7%) was realized. Out of the total disbursement of USD 1,745,960.35 (UGX.6,401,056,774), only USD 1,364,415.24 (UGX.5,030,770,126) was spent, representing an absorption rate of 78.1%, while GOU realized performance of UGX 3,239,026,378 (96.7%). All the 12 planned outputs with 55 activities budgeted at USD 2,538,701.7 were fully quantified, while out of the 55 planned activities 10 were not implemented, 45 were partially implemented and none was fully implemented. All the 4 quarterly performance reports were prepared and submitted to the Bank as required. No inconsistencies were noted between the performance reports and my verification results. I noted delayed completion of works at Dei and Kitebere Landing Sites due to rising water levels and floods. +16 Third National CommunicationOpinion Unqualified  Out of the planned disbursements of USD 138,293 for the year, a sum of USD 150,000 was received representing performance of 108% of the target. However, Project management did not adjust the work plan and budget to reflect the utilization of additional disbursement. Out of the USD 150,000 released, USD 149,937.79 was spent, representing an absorption level of 99.96%. All the 35 planned activities with a total budget of USD 138,293 were not fully quantified in the project work plan. The Project Implementation document did not indicate the unit of measurement for each of the planned activities. A review of the Project implementation report which had activities quantified indicated that 4 of the activities (11%) were fully implemented, 16 (46%) were partially implemented while 15 (43%) were not implemented at all. +17 Biennial Update ReportOpinion Unqualified  Out of the planned disbursements of USD 235,254.38 for the year, only USD 155,000 was realized representing performance of 65.9% of the target as a result some activities such as; dissemination of the report to the relevant stakeholder and translation thereof was not implemented. The 67 planned activities with a total budget of USD 235,254.38 were not fully quantified and instead reported in generic terms such as; Technical capacity building including participation in national and regional/or international workshops, meetings on GHG inventory, Conducting consultations with key stakeholders to get buy-in and support into the biennial update reporting process, Reviewing the relevant documents, policies and development programmes, and population and housing census. All the planned activities with the exception of dissemination of the report to the relevant stakeholder and translation thereof were implemented. +18 Enhancing Resilience of Communities against Climate Change (EURECCCA)  All the four (4) strategic goals of the Project were partially achieved. The project did not prepare an annual work plan and budget to aid assessment of revenue performance. + + + + +176 + + + + + + + + + + + + Opinion Unqualified  Out of the approved GoU co-founding Budget Estimates of UGX 1,500,000,000 for the period 1st July 2019 to 30th June 2020, UGX 1,372,656,420 (91.5%) was released. Out of the total disbursement of UGX 3,679,375,000, a sum of UGX 3,634,757,055 was spent, representing an absorption rate of 98.8%. All the 52 planned activities were fully quantified. Out of the 52 planned activities 45 (86%) were fully implemented, 7 (14%) were not implemented at all. All the 4 quarterly performance reports were prepared and submitted as required. No inconsistencies were noted between the performance reports and my verification results. The project did not implement the recommendations of the Steering Committee. +19 National Water and Sewerage Corporation (NWSC)Opinion Unqualified  I noted that the Board of National Water and Sewerage Corporation is not fully constituted, as the representative of the Ministry of Water and Environment was yet to be appointed as required by the law and yet the Ministry would offer strategic guidance regarding policy issues on the operations of the Corporation. There is a risk of non-compliance with government policy matters by management of the Corporation. I noted that the National Water & Sewerage Corporation uses the Lump sum payment schedule 3 (Termination/retirement /resignation /expiry of employment) of PAYE return for computing tax on gratuity for employees whose contracts are still running instead of schedule 4 (Annual/irregular/lump sum payments) of PAYE return. Non-compliance with schedule 4 of PAYE Return in accordance with Income Tax Act may attract penalties and interest against Corporation. +20 Integrated Water Management and Development Project (IWMDP) – NWSCOpinion Unqualified  No material issues. +21 Protection of lake Victoria Kampala Sanitation Project (WATSAN) – NWSCOpinion Unqualified  Project financing agreements in relation to WATSAN 1 were signed by GoU and Lenders effective 28 April 2011. Under the agreements GoU was supposed to co-fund the project to the tune of EUR.28.9 million. However, an analysis of the project financing disbursements indicated that whereas the Co- financing partners have achieved more than 75% disbursement, GoU contribution was at 24% over the nine (9) year period. There is a potential risk of delays in project completion if GoU fails to disburse the committed funds. +22 National Water and sewerage corporation- kampala water lake victoria water and sanitation (KW-LV WATSAN II) projectOpinion Unqualified  No material issues. +23 Kampala Sanitation Programme (KSP) – Phase I, Lake Victoria Protection Project –  I noted that the Project had several Contingent Liabilities as described below;a) The Contractor’s claim of Euros 21.7 million arising from the contractual obligation of extension of time and causation of delays in project + + + + +177 + + + + + + + + + + + + Phase IIOpinion Unqualified completion, had not been approved; b) A compensation claim of UGX.220 million by an individual, and the matter is now before the Land Division of the High Court Civil suit No.109 of 2019, had not been determined by Court; and c) A compensation claim of UGX.1.15 billion by a business firm which is under the Land Division of the High Court HCCS NO. 518 of 2016, had not been determined by Court. + ENERGY SECTOR +1 Ministry of Energy and Mineral Development (MEMD)Opinion Unqualified  The Ministry budgeted to receive UGX.532.08Bn out of which, UGX.329.6Bn was warranted, resulting in a shortfall of UGX.202.48Bn, which was 38% of the budget. Revenue shortfalls affect the implementation of planned activities. Furthermore, out of the warranted amount, the entity spent UGX.325.3Bn resulting into unspent balance of UGX.4.3Bn, representing an absorption level of 98.7%. The Ministry budgeted to collect NTR of UGX. 19.4Bn. Out of this, only UGX.13.4Bn was collected, representing a performance of 69% leading to a shortfall of UGX.6.Bn. I sampled 50 that were fully quantified outputs under the Ministry with a total of eighty-two (82) activities worth UGX.42.81Bn, and noted that: Seven (7) outputs with a total of seven (7) activities worth UGX.1.74Bn were fully implemented; Thirty-eight (38) outputs with a total of Seventy (70) activities worth UGX 39.02Bn were partially implemented; and Five (5) outputs with a total of five (5) activities worth 2.05Bn were not implemented at all. The Ministry received UGX.1,854,355,433 in royalties during the year, in addition to UGX.957,025,482 from the previous period. However, only UGX.2,369,310,643 was paid out to beneficiaries leaving an outstanding balance of UGX .442,070,272 undistributed as at 30th June 2020. There were deemed energy Payments to Achwa River Energy Project (ARPE) (41 MW) had accumulated to UGX. 64.69 Billion, and of which, only UGX. 10.33 Billion was released leaving unpaid claims of UGX. 54.36 Billion. These claims are as a result of the inadequate transmission infrastructure to evacuate all the power produced by the dam. Similarly, Tariff-financed deemed energy payments amounted to UGX.46.1 Billion as at 30th June, 2020 of which UGX.22.2 Billion related to FY 2018/19 and UGX.23.9 Billion related to FY 2019/20. Deemed energy liabilities/payments cause a significant strain on government resources in electricity subsidies, and may negatively impact on consumer electricity prices when charged through the tariff. There was undeclared mineral imports and exports, worth UGX.8,305,914,024, which resulted into royalties worth UGX.102.7 Million being not collected from the vermiculite. I further noted that between FY 2017/18 and FY 2019/20, minerals worth UGX.26 Billion were imported into the country without import permits as required by the law. I noted slow progress in the payments of claims for Project Affected Persons (PAPs). 78 PAPs remained unpaid for Karuma and 54 PAPs for Isimba as at 30th June, 2020 with an outstanding amount of UGX.980,337,045. 1,452 PAPs for West Nile Grid Extension Project with outstanding claims of UGX. 1,843,036,400 also remained unpaid. +2 Grid Extension Reinforcement Project (GERP)Opinion Unqualified  Out of the budgeted donor funds of USD. 18,178,000 for the year, USD. 16,178,000 was received representing a performance of 89%. Out of the budgeted GOU funds of USD.8,683,000 in the financial year, USD.5,570,819 was received representing a performance of 64%. Out of the total funds of USD 21,796,340 received for the period, USD.1,073,018 was utilized, leaving an unspent balance of USD.20,723,322, representing an absorption rate of only 5%. + + + + +178 + + + + + + + + + + + +  I noted that Key project activities, such as Operational support to UETCL and construction of the Gulu-Nebbi-Arua Transmission Line, had not commenced by the time of audit due to delays in the procurement processes. Out of 3,284 PAPs under Kole-Gulu-Nebbi –Arua Transmission Line Corridor, only 2,021 (61.5%) had been compensated, leaving a total of 1,263 PAPs outstanding. Furthermore, construction of resettlement houses for 86 PAPs had not commenced by the close of the financial year. +3 Rural Electrification Agency (REA)Opinion Unqualified  I noted that the Agency makes its Annual budgets basing on the Rural Electrification Strategy and Plan (RESP) for the ten-year period 2013-2022 which was not aligned to the NDP II 5 year period (2015/16 – 2019/20). Out of the budgeted revenue under GOU of UGX.166.75Bn for the financial year 2019/2020, a sum of UGX.86.14 was collected representing performance of 52% of the target. The Agency had an unspent balance of UGX. 8.067Bn, representing absorption level of 91%. The entity also receives external funding, and out of an approved budget of UGX. 894.0Bn, a sum of UGX. 572.5bn was received, representing a performance of 64% from external funding. UGX.365.514bn was spent by the entity resulting into unspent balance of UGX.207.08bn representing an absorption level of 63.8%. Out of the budgeted Non tax revenue of UGX. 38.61Bn for the financial year, UGX.59,838,798,760 was collected, representing a performance of 155%. I sampled 7 outputs with 20 activities worth UGX.439.626Bn representing 100%, and noted that 2 outputs with 10 activities worth UGX 256.97Bn were not quantified to enable measurement of performance. Furthermore of the 4 out puts quantified worth UGX 158.8Bn, 1 output representing 75% was fully implemented while 2 outputs representing 50% were partially implemented. The Agency did not prepare accurate Performance Reports, contrary to Paragraph 55 of the budget execution circular for the financial year 2019/2020. There were no reconciliation reports of UGX. 6,852,322,813, paid as compensations to Project Affected Persons by the Post Bank. Domestic arrears totalling to UGX.25.67Bn remained unsettled at close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. I noted shortcomings in the Agency��s fleet management which included non- compliance with the vehicle standardization guidelines of Government, inadequate allocation of vehicles and inadequate vehicle maintenance planning and funding. +4 Energy for Rural Transformation ERT (REA) IIIOpinion Unqualified  Out of the available funds UGX 165Bn for the period under review, UGX 111.762bn was utilized, with an unspent balance of UGX. 53.275bn as at 30th June 2020, representing an absorption level of 67%. The funds disbursement over the project life was at 42%. There was delayed project implementation for Medium Voltage with Associated Low Voltage networks, under Fast Track 1 and Fast track 2 , with overall project completion at 70% and 90% respectively. Construction works under Fast track 3 and 4 had not yet commenced. There were outstanding compensations for Project Affected Persons under the line constructions. Under the Line schemes A,B,C,D and E, the Resettlement Action Plans reports had been completed ,however, compensation of PAPs had not yet begun. Under Fast Track 1 line construction, 43 PAPs were not yet compensated. +5 Uganda Petroleum Fund (UPF)Opinion  I noted a delay in the establishment of a Fiscal Rule to guide appropriation of Petroleum Funds. The lack of clarity increases the risk of spending more today rather than investing for future generations. I noted that from the financial year 2014/15 to 2019/20 a total of + + + + +179 + + + + + + + + + + + + Unqualified UGX.11.3Bn relating to training Fees, had been paid into the petroleum Fund by the International Oil Companies. However Government agencies have not accessed these funds for the purpose as stipulated in the Production Sharing Agreements. +6 Petroleum Authority Uganda (PAU)Opinion Unqualified  There was a shortfall in releases of UGX.6.58Bn representing 13%. Further, the entity remained with unspent balance of UGX. 1.24Bn representing an absorption level of 97%. I assessed the implementation of eight (8) outputs that were fully quantified with a total of twelve (12) activities worth UGX.33.19Bn, and noted that 3 (37.5%) had been fully achieved, 4(50%) were partially achieved while 1(12.5%) was not achieved at all. +7 Electricity Regulatory Authority (ERA)Opinion Unqualified  Out of the planned 37 strategic goals to be achieved by the Authority; 13 were fully achieved while 24 were partially achieved. Out of the budgeted revenue of UGX.28.27Bn for the financial year 2019/2020, UGX.28.34Bn was collected representing performance of 100.24% of the target. Out of the total receipts of UGX 28.34Bn, UGX. 24.28Bn was spent by the entity resulting in an unspent balance of UGX. 4.06Bn representing absorption level of 86%. Out of the forty eight (48) critical tasks under the six (6) core focus areas, fourteen (14) tasks had been fully achieved, twenty seven (27) were partially achieved while seven (07) were not achieved at all. I noted Outstanding receivables amounting to UGX.358,857,596 relating to license fees and permit applications fees that were outstanding for more than 90 days at the end of the financial year. I noted that the entity procured three (3) vehicles in the last three years at a cost of UGX.593.66M. However, two (2) of the vehicles acquired at a total cost of UGX.411.95M exceeded the recommended engine capacity. There was delayed amendment of the Electricity Act by three (3) years and this has affected the ability of the Electricity Regulatory Authority to execute its mandate. I noted that although UMEME had surpassed the conversion target for new customers to the prepayment metering system by 51%, the company had fallen short of the target for existing customers by 56%. It was further noted that the company performed 75% below the 2019 set target. +8 Uganda Electricity Distribution Company Ltd (UEDCL)Opinion Unqualified  Out of the budgeted revenue of UGX.65,585,831,000 for the financial year 2019/2020, UGX. 55,913,052,000 was collected representing performance of 85 % of the target. Out of the projected connection fees of UGX.1,871,741,025, the Company remitted UGX. 1,141,383,399 to Rural Electrification Agency (REA), a leaving a balance of UGX.730,357,626 outstanding. I sampled 59 interventions/critical activities implemented under the 4 sampled departments and noted that twenty 24 tasks had been fully achieved, 16 were partially achieved while 19 were not achieved. Connection materials worth USD. 156,358.56 and UGX.49,303,000, supplied by REA to the Company remained unaccounted for. There is a risk that the these connection materials may be misappropriated. I noted that the Company procured 31 vehicles in the last three years at a cost of 2,036,365,982. Shortcomings were observed in the company’s fleet management which included Improper maintenance of Motor Vehicle Records, Absence of Annual Motor vehicle Inspection and Non-compliance with disposal conditions. I also noted that the company did not have a fleet management policy. +9 Uganda Electricity Generation Company  A review of the budgets and management accounts revealed that out of the budgeted revenue of UGX.310.7Bn for the year 2019/20, only UGX.200.7Bn + + + + +180 + + + + + + + + + + + +Ltd. (UEGCL) was realized representing performance of 64.5% of the target. The major funding gaps were noted under projects i.e.; Nyagak, Muzizi and Karuma, Opinion which received only 56%, 30% and 71.5%, respectively of the anticipated Unqualified revenue. + +- Out of the total receipts for the financial year of UGX.200.71Bn, UGX.152.55Bn was spent by the entity resulting in an unspent balance of UGX.48.66Bn, representing an absorption level of 76%. + + + +- I sampled 64 interventions/critical activities implemented under the 6 sampled business units and noted that eight (8) tasks had been fully achieved, thirty seven (37) were partially achieved while nineteen (19) were not achieved at all. + + + +- I noted for the year ended 31st December 2019 estimated capital investments amounting to UGX.38.7Bn had not been recovered through the capacity price as at that date. This liability is expected to escalate further given that ESKOM had made additional investments worth UGX.21.4Bn in the year 2019 which were pending verification by the Electricity Regulatory Agency. This could lead to a significant liability payable by GOU at the end of the concession. + + + +- I noted that UGX.111.7Bn in relation to depreciation (28.7Bn) and return on Equity (83Bn) were disallowed and only administration fees of UGX 5.9Bn was allowed by ERA. There is a risk that under billing will affect the ability of the Company to carryout asset rehabilitation/replacement during and after the useful life of the plant. In addition, UEGCL may not be able to operate as a self-sustaining entity due to a possible reliance on government support to refurbish the plant. + + + + + +- I noted that an EPC Contractor submitted interest claim worth USD.21,095,655 on account of delayed payment of interim payment certificates 36-41, which had not been resolved. Relatedly, orders in favor of Government worth USD.47,893,876 had not been resolved. + + + +- I noted outstanding Non- conformance by the Karuma EPCC, which included mechanical and electrical works, such as; Corrosion damages on the blades of the turbine runners Units 2 and 4, Laid cables are not following approved cable works Lists i.e. Power cables and signal/command cables are not separated, cable trays overfilled, while others remained empty, and inappropriate cable labeling, undersized cubicles, corroded cubicles, no space behind the cubicles for maintenance purposes. + + + +- I noted significant delays in the completion of Karuma HPP. The 5- Year Project became effective in August 16, 2013 implying that the initial completion date was 16th December 2018. This was extended to 30th November 2020, resulting into a delay of two (2) years from the initial planned commissioning date. This was majorly attributed to delays in land acquisition and the impact of COVID-19. + + + +- I noted delayed commencement of the construction of Muzizi Hydro Power Project. The Republic of Uganda signed credit facility agreements with two development partners in 2016 to finance the construction of Muzizi Hydro power project with expected completion date of December 2023. However, the construction of this project had not commenced after close to 4 years from date of signing the credit facility. As at 30th June 2020, GOU had so far paid commitment fees amounting to EUR 798,750. + + + +- I noted delayed commencement of the construction of Nyagak Hydro Power Project. The strategic partner had failed to attain expected Commercial Operations Date (COD) of 20 April 2019 from the effective date of 10th April 2015 as per the granted generation license. The June 2020 progress report of the strategic partner indicated progress of only 19.3% and the developer had submitted a request to the Regulator (Electricity Regulatory Authority) to extend the COD by 48 Months from the initial 40 Months ending 20th April + +181 + + + + + + + + + + + + 2019. +10 Uganda Electricity Transmission Company Limited (UETCL)Opinion Unqualified  During the financial year audited, deemed energy purchases amounted to UGX 104.4 bn. A review of the statement of comprehensive income showed that deemed energy constituted 9% of the energy purchases in the financial year and these purchases constrain funds available for working capital requirements and operations. A review of the Power Purchase Agreement (PPA) between UETCL and the firm in charge of a Thermal Power Generation Complex revealed that the firm was supposed to install 8MW Thermal Power Plant in Arua, and 50MW power generated at Tororo was to be transferred to Arua as per the amended PPA. However, only 3.8 MW was installed at Arua instead of the agreed 8MW in the PPA. The firm billed UETCL UGX.3,052,165,749 for Capacity charges at 8MW instead 3.8MW for the period July 2019 to June 2020, thus leading to an over payment of UGX.1,602,387,018 by UETCL. UETCL procured goods, works and services amounting to UGX 38,079,664,715 outside the procurement plan. Unplanned procurements could affect implementation of other planned activities and achievement of intended results. +11 Opuyo- Moroto 132kv Transmission Line Project -Uganda Electricity Transmission Company Limited (UETCL) – 2017Opinion Unqualified  I noted that by the year ending 30th June 2017 only USD 341,112 had been disbursed representing 0.4%of the Loan amount and USD 80.2 Million remained unutilised. I noted that by 30th June 2017, only 821 PAPs (71%) out of 1,163 had been compensated leaving a balance of 342 PAPs (29%) not compensated. This poses a risk of outstanding compensation for PAPs further delaying the project implementation. I noted that USD 43,401 advanced to staff members to perform various activities was not accounted for within the stipulated time contrary to the FPPM. There was no evidence to show that efforts were made to recover from the respective salaries. +12 Opuyo- Moroto 132kv Transmission Line Project -Uganda Electricity Transmission Company Limited (UETCL) – 2018Opinion Unqualified  I noted that despite the budget for the procurement process being UGX 347,429,563 (USD 96,081), the actual expenditure incurred by 30th June 2018 was UGX 517,319,424 (USD 143,064) and was mainly on expensive retreats while processing bids. I noted that up to USD 10,203 that was advanced to staff to perform various activities was not accounted for within the stipulated time. There was no evidence to show that efforts were made to recover from the respective staff salaries. +13 Uganda National Oil Company (UNOC)Opinion Unqualified  There was a shortfall in releases amounting to UGX.2.06bn representing 6% of the budget. Out of the released funds, the entity remained with an unspent balance of UGX.3bn at the end of the F/Y representing an absorption level of 91.3%. Out of a sample of 13 out-puts with 38 activities worth UGX.29.02Bn representing 92% of the total budget, 2 outputs with 4 activities worth UGX.0.055Bn were fully implemented, while 11 with a total of 34 activities worth UGX.27.186Bn were partially implemented. Out of the 34 activities, 13 were fully implemented (38%), 12 (35%) were partially implemented while 9 activities (27%) remained unimplemented. I noted delayed disposal of 45,211 barrels of test crude oil from the Albertine Graben received from MEMD in 2017. I noted challenges facing the Company in acquisition of acreage for exploration and appraisal. There were challenges to meet performance obligations under the Joint Venture Agreement between the concessionaire and UNOC regarding the Jinja Petroleum strategic tank reserve. + + + + +182 + + + + + + + + + + + +14 Energy for Rural Transformation (ERT) (PCU)Opinion Unqualified  The Project budgeted to receive USD 3,475,913.66 out of which, USD 2,400,000 was released, resulting in a shortfall of USD 1,075,913.66, which was 31% of the budget. Out of budgeted UGX 1.27 Billion GOU counterpart funding for the period, only UGX. 439 Million was released, resulting into a shortfall of UGX. 831 Million, which was 34.6% of the budget. Out of a cumulative project releases of SD 4,478,569.41, a sum of USD. 2,858,271.39 had been spent by the project since inception, resulting in an unspent balance of USD.1,620,298.02, representing an absorption level of only 64%. I noted that bid evaluation was still on-going for the supply, installation, commissioning and maintenance of solar photovoltaic energy packages in schools, with an expected contract award by year end and commissioning expected by November 2021. I noted under supply, installation, commissioning and maintenance of solar photovoltaic energy packages in 309 Heath Centers that 224 of the Centers had been completed, with the remaining 105 installations expected by February 2021. I noted under energizing Water Supply Schemes (WSS) that whereas Lot 1 to 3 had been completed and commissioned, Lot 4 and 5 relating to 11 WSS, contract award and installation commencement was expected by 15th March 2020 with final commissioning by 15th November, 2020. However, due to procurement delays, the two contracts were awarded in July 2020 with an expected completion date of July 2021. +15 Energy for Rural Transformation (ERT) (PSFU)Opinion Unqualified  There was a shortfall in releases amounting to USD 643,885, representing a performance of 65% of the budgeted amount of USD 993,861. Further the project had an unspent balance of USD 389,365 representing an absorption level of 48% of the released amount. I noted that out of the Planned construction of six community based micro hydro power generation schemes in the districts of Kabarole and Kasese , only four sites were approved for feasibility studies by the Electricity Regulatory Authority (ERA) and Rural Electrification Agency (REA). I noted that Key Project activities such as feasibility studies of 4 pico- and micro hydro sites, supply and installation of electro-mechanical equipment for pico- and micro-hydro power plants and related civil works, and Resettlement Action Plan implementation had not commenced. +16 Energy for Rural Transformation III Implemented by Uganda Energy Credit Capitalization Company Limited (ERT III- UECCCL)Opinion Unqualified  No material issues. +17 Energy for Rural Transformation (ERT) (BoU)Opinion Unqualified  No material issues. +18 Clean Cooking Project Opinion  No material issues. + + + + +183 + + + + + + + + + + + + Unqualified +19 Uganda Rural Electrification Access Project (UREAP) IDB IOpinion Unqualified  There was a shortfall in releases amounting to UGX 168.8 Bn representing an absorption level of 85%. There was an unspent balance of UGX. 0.59.3 Bn. Further, the Project had a Low Funds Disbursement over the Project Life representing 18.16% under the ADB Loan, 21.11% -EU Grant and 49.2% under GOU funds. I noted that under Supply and Installation of Medium Voltage Networks and Last Mile Consumer Connections- Lot 1, the overall project status was 64.98%, with surveys, designs and pole erection completed, however conductor stringing for Medium Voltage and Low Voltage network was still on-going. I noted that under Installation of Medium Voltage Networks and Last Mile Consumer Connections Lots 2 to 7, delays in implementation of the Contract works were significantly behind schedule. The overall project progress at the time of audit was at 18.13%. I noted that out of 4,761 identified PAPs under Lot 1 to 11, only 1,391 PAPs (29%) under Lot-1 had been compensated, leaving 3,370 PAPs not compensated. Disclosures, verifications and signing of consent forms were on-going. +20 Kilembe Mines Company Ltd (KML)Opinion Unqualified  The entity budgeted to receive UGX.2.506Bn out of which, UGX.1.394Bn was earned, resulting in a shortfall of UGX.1.112Bn which is 44.4% of the budget. Out of a cumulative amount of UGX.1,616,444,320 available for spending, UGX.1,557,866,752 (excluding depreciation and provisions) was spent by the entity resulting in an unspent balance of UGX.58,577,568 representing an absorption level of 97.4%. Under work plan implementation, I noted that power generation targets were partially achieved because of the frequent outages on the line and the flash floods and landslides that affected the power infrastructure. I noted that the Company is yet to recognize any impairment loss to reflect the impact of destroyed assets swell waters that broke the banks of river Nyamwamba. I noted that the payables increased by 8% from UGX.902,364,489 at the end of FY2018/19 to UGX.965,604,900 as at the end of FY2019/20. In addition, the board retainer was not paid for the whole year. I noted Potential for Revenues from the Cobalt Tailings which have not been explored to provide a ready source of cash flows to the company. There is lack of funding and financial support for restoration of damaged assets. There is potential loss of value of the 1,165 tons of copper concentrates that were produced from Tibet Hima Mining Company Limited (THMCL)’s operations and are currently stockpiled in the mill yard. I analysed the financial performance and business viability of the entity for the financial year ended 30th June 2020 and noted inadequate performance and weak financial position. I noted failure by the company to Recover Permits and Mining Lease from Tibet. +21 Electricity Sector Development Project (ESDP) - UETCL June 2019Opinion Unqualified  Out of the availed funds of UGX. 17,322,253,711 in the period under review, UGX. 9,915,236,127 was utilized, resulting into an unspent balance of UGX. 7,407,017,584, representing absorption level of only 57%. I noted that Key project activities such as the construction of the 220kV Kawanda –Masaka Transmission Line, Bujagali substation upgrade , Transmission line bays for Kawanda interconnectors, including Kawanda, Masaka and Mbarara Substation works were completed and energized in + + + + +184 + + + + + + + + + + + + 2019, three years after the initial completion date of 2016. Out of the total number of 2,670 Project Affected Persons (PAPs) 2,390 (90%) were compensated, leaving a balance of 280 PAPs. +22 Electricity Sector Development Project (ESDP) - UETCL June 2020Opinion Unqualified  Out of the availed funds of UGX. 10,070,594,584 for the period, only UGX. 4,529,530,134 was utilized, leaving UGX. 5,541,064,450 representing an absorption level of only 45%. I noted that Key project activities, such as the construction of the 220kV Kawanda –Masaka Transmission Line, Bujagali substation upgrade , Transmission line bays for Kawanda interconnectors, Including Kawanda, Masaka and Mbarara Substation works were completed and energized later than the original target of 3 years. Out of a total number of 2,661 Project Affected Persons( PAPs), 2,456 (92%) were compensated, leaving a balance of 205 PAPs outstanding. +23 Fuel Marking and Quality Monitoring Program (FMQP)Opinion Unqualified  Out of the Approved Budget of UGX.8,227,363,200 for the Financial Year 2019/20, the entity realized UGX.7,908,669,453 representing performance of 96.1% of the target. I noted that out of the Four (4) sampled activities with a total expenditure of UGX.5,636,204,578, only two (2) activities (50%) with a total expenditure of UGX.4,973,679,927 were fully implemented whereas the remaining two (2) were partially implemented. I noted that the program did not plan and budget for monitoring and enforcement of quality standards for LPG and lubricants sold to consumers. I noted that the program established a fully equipped laboratory for the operation of the Fuel marking and quality monitoring program in 2009, however, the laboratory is yet to be accredited due to non-compliance to the international standard ISO/IEC 17025:2017. +24 Atomic Energy Council (AEC)Opinion Unqualified  Out of the budgeted funds of UGX.28Bn for the period, UGX.10.68Bn was released, resulting in a shortfall of UGX.17.32Bn which is 62% of the target. Out of the budget for NTR of UGX.260M for the period, UGX.281.93M was collected, representing a performance of 101% of the target. I assessed the implementation of 10 outputs that were fully quantified worth UGX.5.54Bn and I noted that 7 outputs worth UGX.4.04Bn were partially implemented, 3 outputs worth 1.5Bn were not implemented at all. I noted inadequate radiation protection and safety laboratories, the calibration of dosimetry equipment were undertaken in Tanzania through the Tanzania Atomic Energy Commission at a cost of USD 200 per unit. I noted Non-compliance with Standard Operating Procedures (SOPs), Out of 67 facilities, 20 were closed as at 30th June 2020. Out of a total of 443 active facilities, 196 facilities (44.2%) were unlicensed. Of these, 59 had not been licensed before, 137 had expired licenses. Of the unlicensed facilities 140 were private entities while 31 were Government entities. +25 Strengthening the management of Oil and Gas project in Uganda (SMOGPU) Phase 3Opinion Unqualified  Out of the budgeted Donor funds of USD 451,962 for the period, USD.240,107.21 was received, representing a performance of 53%. Out of the budget of UGX. 1.1Bn under GOU counterpart funds , No funds were received in the period under review. I noted that Key project activities, under the Resource Pillar, Revenue pillar, Environment Pillar and Safety Pillars were not implemented owing to COVID- 19 constraints. +26 Mbarara - Nkenda; Tororo - Lira Transmission Lines  Out of the available funds of UGX.9,780,730,937, for the period, UGX.8,227,706,438 was utilized, resulting into an unspent balance of UGX.1,453,024,499 representing an absorption level of 84%. I noted that Key project activities, such as construction of the Mbarara – + + + + +185 + + + + + + + + + + + + Opinion Unqualified Nkenda Transmission Line was completed and energized. However construction of the Tororo –Lira Segment was not yet completed inspite of the initial completion date of 27th January 2015. Out of 4,701 PAPs, under Tororo-Line Transmission Line segment, 4,380 had been compensated leaving a balance of 321 PAPs (7%). Under Mbarara- Nkenda Transmission Line segment, out of the 1916 PAPs, 1689 were compensated leaving a balance of 227 (12%) PAPs. Delayed compensation denies PAPs their livelihoods. +27 Nile Equatorial lakes subsidiary Action Plan (NELSAP)Opinion Unqualified  Out of the available GoU funding of USD 6.28M, only USD 1.52M was absorbed leaving an un-spent balance of USD.4.758M (UGX.17.486bn). I noted that the Project has contingent liabilities totaling to UGX.786,000,000 and USD.651,511 relating to court cases concerning Project Affected Persons (PAPs). The Project financing ended and these contingencies have not crystalized and there has been no provision for their future settlement. I noted under Lots 1 to 5 on the Construction of Rural Electrification Schemes in various regions of the Country, that stringing of Medium and Low Voltage Lines was not undertaken, Installation of Transformers and Erection of Poles were partially done. Similarly, under Lot 6; on Construction of Medium and Low Voltage Networks under the Rural Electrification schemes in the Eastern and North Eastern Service territories, delivery and erection of poles, structural dressing and stay assembly works had been done, but the MV and LV stringing was on- going. The transformers and switchgear were not installed as planned by the contractor hence delayed project completion. +28 Hoima - Nkenda Transmission LinesOpinion Unqualified  Out of the funds received of UGX.13,669,864,243 for the period,UGX.4,888,500,820 was utilized , resulting to an unspent balance of UGX. 8,781,363,423 representing an absorption level of only 35.7%. I noted outstanding receivables totalling to UGX 140,272,966 relating to unrecovered advance payment to a contractor who abandoned the construction of resettlement houses for project affected persons in 2012. The case is in Court. I noted that Key project activities, such as construction of Nkenda-Hoima Transmission Line and Associated substations were completed and energized. However there were some pending defects on the Nkenda and Hoima Substations. +29 Hoima – Kinyara – Kafu Transmission LineOpinion Unqualified  Out of the available funds of USD 1,893,414, for the period, USD. 62,169 was spent, resulting into an unspent balance of USD. 1,831,245, representing absorption level of only 3%. I noted delayed construction of the Hoima- Kafu Transmission Line, due to cancellation of a World Bank Loan in October 2017. The New funding arrangements for the Project had not been concluded by 30th June 2020. Out of 509 identified Project Affected Persons (PAPs) under Kinyara-Kafu segment, 458 (91%) were compensated, leaving a total of 51 PAPs not compensated. +30 Uganda Electricity Credit Capitalization Company Limited (UECCCL)Opinion Unqualified  No material +31 Mirama Kabale Electricity Transmission Line and Distribution Project – UETCL –  No material issue. + + + + +186 + + + + + + + + + + + + 2016/2017Opinion Unqualified +32 Mirama Kabale Electricity Transmission Line and Distribution Project – UETCL – 2017/2018Opinion Unqualified  No material issue. +33 IDB III - Grid Rural Electrification Project 2019Opinion Unqualified  Out of the Loan amount of USD 70,730,000, the Bank disbursed USD 43,465,023.03 representing 61%. Of the funds owing to slow absorption of the loan. I noted that under Lots 1 to 5, Construction of Rural Electrification Schemes in various regions of the country, construction works such as stringing of Medium and Low Voltage lines were not undertaken, while Installation of Transformers and Erection of Poles were partially done. Under Lot 6; Construction of Medium and Low Voltage, the delivery and erection of poles, structural dressing and stay assembly works were done, however the MV and LV stringing was still on-going. The transformers and switchgear were not installed as planned. +34 IDB III - Grid Rural Electrification Project 2020Opinion Unqualified  Out of the loan amount of USD 70,730,000, the Bank disbursed USD 16,404,065.70, giving a cumulative total disbursement of USD 59,869,078.73, over the project life, representing a performance of 84.6% of the total loan facility. There were shortfalls of 42.03KM, 118.931KM and 24 transformers, between the planned and actual Medium, Low Voltage lines and transformers constructed under Lot 1 respectively. I noted shortfalls of 37.18KM, 4.88KM and 9 transformers, between the planned and actual Medium, Low Voltage Lines and transformers constructed under Lot 2. respectively. I noted that out of the Planned 242.18KM Medium voltage, 516,6KM Low Voltage lines and 151 transformers, 209.37KM, 312.66KM and 168 transformers were installed under Lot 4 respectively. +35 National Content Development for the Oil Sector Project (NCDO)Opinion Unqualified  Out of the approved Project grant of USD 500,000 (UGX.1.846bn) for the various project activities, only USD 282,980 (UGX.1.045bn) was released, representing a performance of 56.5%. However, by the time of project closure, only USD 203,287 (UGX.0.751bn) had been absorbed by the Project representing 40.7% leaving an un-spent amount of USD 79,692.67 (UGX.0.294bn). Key Project activities such as; Support to the Development of the Petroleum Geosciences Program at Makerere University, and the printing and dissemination of the National Content Policy and Regulations, were not undertaken. + EDUCATION SECTOR +1 Ministry of Education and sports (MoES)Opinion Unqualified  Out of the planned 61 strategic targets/goals, 8 targets had been fully achieved, 5 were partially achieved, 4 not achieved at all, 21 targets were not measurable because they lacked targeted outputs, while 24 outputs were not tracked across the duration of the strategic plan hence not measureable . Out of the budgeted NTR of UGX.6,276,078,909 for the financial year 2019/2020, only UGX. 135,112,603 was collected representing performance + + + + +187 + + + + + + + + + + + + of 2.15% of the target. There was a shortfall in releases amounting to UGX.54.71bn representing 11.7% of the budget. Furthermore, the entity remained with unspent balance of of UGX.14.271Bn representing an absorption level of 95%. The Ministry received off-budget financing to the tune of UGX.17,904,491,000 which was not transferred to the consolidated fund as required by the law. I sampled 27 out-puts worth UGX.215.91 representing 76% of the total budget and noted that 6 outputs with 7 activities and expenditure worth UGX.28.5Bn were not quantified to enable measurement of performance. I also noted that One (1) output with 5 activities and expenditure worth UGX.1.43Bn was insufficiently quantified. Furthermore, of the 65 quantified activities worth UGX.186Bn assessed; 4 activities representing 39% was fully implemented while 28 activities representing 33% were partially implemented as 21 activities representing 28% were not implemented at all. Arrears totalling to UGX. 26.6Bn remained unsettled at close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. I noted that the ministry had obligations amounting to UGX.9, 113,441,500 regarding court awards, but there was no budget provision for their settlement. The Ministry paid domestic arrears of UGX.266,427,349 which were neither disclosed in the prior year financial statements nor the final budget for the financial year under review. There was lack of Land titles for beneficiary schools constructed by the Ministry under TIET, BTVET. I noted that the entity procured 43 vehicles in the last three years at a cost of 7.8Bn, but shortcomings were observed in the Ministry’s fleet management which included; unplanned acquisition of cars, 2 vehicles procured not in the assets register while 8 vehicles were recorded without sufficient details as required by the Accountant General. I also noted that the entity did not have a fleet management policy and the budget for maintenance over the previous three years was under funded by 0.2Bn. I noted that most of the private schools did not have Board of governors, and those which had the boards, they were either not approved or inactive and/ or not fully constituted with 12 members as required by the guidelines. +2 Uganda Skills Development Project- 1338-IDA – MOES ComponentOpinion Unqualified  Out of the planned Six (6) strategic Outputs, One (1) output had been fully quantified, four (4) were partially quantified and one (1) was not quantified at all to enable performance measurement. Out of budgeted World Bank collections of UGX.76.9bn, a sum of UGX.77.9bn was realized, representing a performance of 101 % of the target. There was a shortfall in government releases amounting to UGX.0.53bn representing 42.4% of the budget. Out of the total receipts for the financial year of UGX 78.6 Bn, a sum of UGX. 28.3 Bn was spent by the entity resulting into unspent balance of UGX 50.3Bn representing an absorption level of 36%. A sum of USD.33,249,327 (42.5%) out of USD.78,200,000 has to-date been disbursed and received by the Ministry of Education and sports despite having only 18 months (23.1%) of the project life time remaining. I further noted that only USD.15,919,741.79 (47.9%) of the total grant received by the Project had been absorbed as at the end of the financial year under review leaving a balance of USD.17,329,585.21 on the project and colleges bank accounts. This leaves the project management with barely 18 months to absorb the remaining balance of USD. 62,280,258.21. + + + + +188 + + + + + + + + + + + +  I noted during the financial year 2019/20 that out of the total planned procurements worth USD.46,028,653 and UGX.155,000,000, procurements worth USD.22,336,104 (48.5%) and UGX.70,000,000 (45.2%) were not undertaken. +3 Kyambogo UniversityOpinion Unqualified  Out of the planned 5 strategic goals to be achieved by the University, all the 5 were only partially achieved. Out of the budgeted NTR of UGX.77.1Bn for the financial year 2019/2020, UGX.77.5 was collected representing performance of 101% of the target. There was a shortfall in GOU releases amounting to UGX.1.35bn representing 1% of the budget. Furthermore, the entity remained with unspent balance of UGX.7.32Bn representing an absorption level of 94.5%. I sampled 22 out-puts with 49 activities worth UGX. 126.42Bn representing 93.6 % of the total budget and noted that 6 outputs with no activities stated worth UGX.4.06Bn were not quantified to enable measurement of performance. Furthermore, of the 33 quantified activities worth UGX.118.57Bn assessed; 6 activities representing 18% was fully implemented 27 activities representing 82% were partially implemented while 1 activity representing 7% remained unimplemented. The University did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. 4 quarterly performance reports were submitted after the quarterly deadline. The university had outstanding payables of UGX.19,383,222,812 as at the beginning of the financial year under review. Payables totaling to UGX.25,330,177 were incurred during the year and UGX.11,475,583,038 was settled in the year leaving a closing balance of UGX.7,904,639,774. I noted that only UGX.141,000,000 was provided for domestic arrears during the FY2019/20 despite having accumulated outstanding bills of UGX.19,383,222,812 in the previous financial year FY2018/19. I observed that the University had outstanding court awards totaling to UGX.652,753,428 at the beginning of the year. During the financial year under review, the University lost four (4) cases of the twenty seven (27) cases that were outstanding at the beginning of the Financial year and court awarded UGX.230,766,500 and USD.16,200 which resulted into accumulated payables in Court awards to the tune of UGX.883,519,928 as at the close of the financial year. I noted that UGX.48,372,678 was advanced to staff to travel abroad for official engagements, but their travel plans were frustrated by the lock down due to the outbreak of COVID-19 pandemic. However, recoveries had not been made at the time of writing this report. I noted that the entity procured 5 vehicles in the last three years at a cost of 1.317Bn Shortcomings were observed in the Ministry’s fleet management which included; unplanned acquisition of cars, inadequate allocation of vehicles to departments/units, inadequacy of vehicle maintenance funding . I also noted that the entity had a draft fleet management policy. I noted that 41 out of the 156 programs offered by the University had no up- to-date accreditation contrary to Section 119A of the Universities and Other Tertiary Institutions Act. I noted that out of the 1,474 approved posts for the University, only 807 (54.7%) were filled leaving 667 (45.3%) posts vacant. Among the Vacant Posts were 36 Professors,55 Associate Professors, and 90 Senior Lecturers. I noted that Illegal occupants on the university land had increased from 204 reported in my report of financial year 2017/18 to 256 with permanent structures there on. Furthermore, I observed that Kasigiri area (K5 village) boundaries were not opened/ demarcated to show the mapped out area for + + + + +189 + + + + + + + + + + + + Kyambogo University. I noted that all the 61 buildings in the University and six (6) buildings at Bushenyi and Soroti learning centers lacked occupier certificate of registration from the commissioner of Health and Safety contrary to Sec. 40 (2) of the Occupational safety and Health (OSH) Act, 2006. +4 Makerere University KampalaOpinion Unqualified  I noted that at the time of concluding the audit (December 2020), all the planned sixty five (65) strategic targets/goals were partially achieved. I noted that the University budgeted to collect NTR of UGX.95.84Bn during the year under review, out of which only UGX.79.06Bn was collected, representing a performance of 83.2% of the target. I further noted that of the collected NTR of UGX.79.06Bn, only UGX.77.12Bn was remitted to the UCF leaving a balance of UGX.1.94Bn. The University budgeted to receive UGX.332.24Bn from Treasury out of which UGX.325.05Bn was warranted, resulting in a deficit of UGX.7.19Bn which is 2.2% of the budget. Out of the total receipts, UGX.320.389Bn was spent by the University resulting into an unspent balance of UGX4.66Bn, representing an absorption level of 98.6%. The unspent balance at the end of the financial year was swept back to the consolidated fund account. The University received off-budget financing to the tune of UGX.65,327,874,190.29 which was not transferred to the consolidated fund as required by the law. These funds were received directly from both development partners and other stakeholders for undertaking activities not budgeted for. The University planned to implement 10 outputs with 28 activities of which; 2 outputs with a total of 10 activities and expenditure worth UGX.264.33Bn were insufficiently quantified, 8 activities (80%) were quantified while 2 activities (20%) were not clearly. Similarly, 8 outputs with a total of 18 activities and expenditure worth UGX.13.55Bn were insufficiently quantified. Included in the receivables of UGX.24,723,350,866 in the statement of financial position are uncollected tuition fees from students worth UGX.21,941,188,222. Included in the statement of financial position are Pension Liabilities of UGX.23,920,219,207 resulting from accumulation of In-House Retirement Benefits. The liability has been outstanding since 2010. Included in domestic arrears paid of UGX.3,721,072,651 as recognized in the cash flow statement and disclosed in the statement of outstanding commitments are garnished funds of UGX.1,526,027,265 and payment of unbudgeted employee costs of UGX.976,318,137. I noted that whereas the University paid UGX. 4,896,381,592 (88%) of the contract sum, the indoor Sports Arena remained incomplete. I noted that out of the released Research funds of UGX.30,200,000,000 in the year, only UGX.22,106,855,911 was disbursed to researchers and other research related activities leaving a balance of UGX.8,093,144,089 unspent at the closure of the financial year which was swept back to UCF. In addition, out of the spent funds, UGX. 5,104,463,663 were transferred to the university Subvention Account other than being transferred to the consolidated fund. I noted that 13 vehicles (100%) at a total cost of UGX.3,131,986,270 were procured without prior clearance from MoPS. 13 vehicles (100%) that were purchased at a total cost of UGX.3,131,986,270 were acquired without undertaking the needs assessment and were procured without specifications and the needs approval by the directorate of Estates of Makerere University. The University only realized and spent a total of UGX.2,095,332,048 against the vehicle maintenance budget of UGX.2,605,975,834 for the 3 FYs 2017/18 – 2019/20 reflecting a funding shortfall to the tune of + + + + +190 + + + + + + + + + + + + UGX.510,643,786 which is 20% of the budgeted asset maintenance funding. A review of the staff establishment at the directorates and Colleges revealed that while some cost Centres were understaffed, others were overstaffed in some positions leaving to an overall staffing gap of 703 positions, which is 48 % of the approved establishment. +5 NOHRED Project MakerereOpinion Unqualified  At the end of the financial year, funds to the tune of USD.782,686 (Nok 6,876,989) remained unabsorbed. Management explained that this was largely caused by the effect of COVID-19 Pandemic that affected implementation of planned activities such as; the PhD students’ travel abroad for paper presentations, and supervision by external supervisors from outside Uganda which were affected by the travel ban; and the annual meetings that were halted. This implied that the Project was not in position to absorb all the funds budgeted for. +6 Makerere – SIDA Bilateral Research ProgramOpinion Unqualified  No material issues. +7 Makerere University Africa Centre of Excellence in Materials, Product Development and Nano-Technology Project (MAPRONANO)Opinion Unqualified  Out of the budgeted US $1,233,000 in the year under review, only US $1,051,666.62 was received by Mapronano Project reflecting underfunding of US $181,333.38 (14.71%). At the time of audit (October 2020), only US$.2,747,662 (46%), cumulatively had been released out of US $ 6,000,000, leaving a balance of US $3,252,338 unreleased of the total project budget. Out of the released US $1,051,666, only US $1,015,662 was spent by the project resulting into unspent balance of US$36,004 representing under absorption level of 3.42%. I assessed implementation of the eight (8) out puts with 26 activities that were fully quantified worth US $1,233,000 and noted that three (3) outputs with a total of four (4) activities worth US $108,000 were fully implemented. The project implemented all the activities (100%) within these output. Five (5) outputs with a total of twenty two (22) activities worth US $1,125,000 were partially implemented. The project management implemented sixteen (16) activities fully, four (4) activities partially and two (2) activities were not implemented within these outputs. +8 Makerere University Regional center for crop Improvement (MARCCI) ProjectOpinion Unqualified  Out of the budgeted USD 1,803,910 in the year under review, only USD 924,018 was received by MaRCCI reflecting underfunding of USD 879,892 (48.8%). At the time of audit (October 2020), only USD 3,241,800 (54%), cumulatively had been released out of USD 6,000,000 leaving USD 2,758,200 (46%) unrealized of the total project funding. Out of 8 out puts that were fully quantified with a total of 24 activities, 4 outputs with a total of 10 activities worth USD 621,266.6 were fully (100%) implemented. 4 outputs with 14 activities worth USD 1,182,643.4 were partially implemented. The Project management disclosed unpaid staffs salary arrears of USD.66,348 in the financial statements. The unpaid arrears were for the period of April, 2020 – June, 2020. +9 Gulu UniversityOpinion Unqualified  I noted that at the time of the audit (October 2020), the University had 10 strategic targets/goals, but all the targets (with the exception of only two activities under the Research, Publications and Consultancies output) were not quantified to enable assessment of the level of performance. The University budgeted to collect NTR of UGX.7,254,708,655 during the + + + + +191 + + + + + + + + + + + + year under review out of which UGX.6,424,941,971 was collected, representing a performance of 88.6% of the target. The University budgeted to receive UGX.49.54bn out of which UGX.45.59bn was warranted, resulting into under performance of UGX.3.95bn which is 7.97% of the budget. Out of the total receipts received of UGX 45.59bn, UGX. 45.30 was spent by the entity resulting in an unspent balance of UGX 0.29bn, 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. The University received off-budget financing to the tune of UGX.5,021,755,260 which was not transferred to the consolidated fund. The funds were received directly from development partners. The University planned to implement 3 out puts with 11 activities of which 2 outputs with a total of 9 activities and expenditure worth UGX 1.62Bn were fully implemented. The entity implemented all the 9 activities (100%) within these outputs. One (1) output with 5 activities and expenditure worth UGX 0.07Bn was partially implemented. Out of the 5 activities, the entity implemented 4 activities (80%) while one (1) activity (20%) was partially implemented. Included in the receivables balance of UGX2,384,894,482 in the statement of financial position are uncollected tuition from students of UGX.896,874,429 for the financial year ended 30th June 2020 and advances of UGX.1,488,110,053. I noted that the advances relate to the FY 2018/2019 and are long overdue. University had accumulated domestic arrears of UGX.5,824,432,299 as at 30th June 2020. I noted that these arrears date as far back as 2015/16. The University leased out four (4) acres of land located on plots 3-7, Laroo Division in Gulu Municipality for the construction of a student hostel. However, no ground rent has ever been collected and the University has never disclosed any liability from the proprietor. Furthermore, the land is not recorded in the University Assets register. Gulu University is operating two campuses in Kitgum and Hoima which have not obtained accreditation by the National Council for Higher Education (NCHE) despite admitting students and conducting lectures at the campuses. I noted that out of six (6) motor vehicles purchased in the FYs 2017/2018 and 2018/2019, one vehicle (17%), with a total cost of UGX.166,950,000 purchased during the period under review, was not in the procurement plan. I further noted that none of the vehicles acquired were captured in the fixed assets module of the GFMIS. The University’s proposed Transport management Policy has never been passed to guide the usage and eliminate theft, losses, wastage and misuse of motor vehicles. I noted that several University premises which were occupied after 2006 lack certificates of occupancy from the commissioner of Health and Safety contrary to the Act. These include; the Finance building, Agriculture and Environment building, ADB Library building, the Multi -Functional Laboratory building and the Administration Block. I further noted that the University does not have a safety committee in place to help in implementation of Health and safety guidelines. There are also no fire extinguishing gadgets like smoke detectors, a fire suppression system and water hydrants were also not available. +10 Soroti University – 2019/20Opinion Unqualified  Out of the sixteen (16) strategic targets/goals planned to be achieved by the university no target had been fully achieved, five (5) were partially achieved while eleven (11) were not achieved at all. Out of the budgeted revenue of UGX.731,560,741 for the financial year 2019/2020, UGX.264,984,000 was collected representing performance of + + + + +192 + + + + + + + + + + + + 36% of the target. There was a shortfall in releases amounting to UGX.3.24Bn representing 18.8% of the budget. Furthermore, the entity remained with unspent balance of UGX.3.03Bn representing an absorption level of 78.4%. Out of the twenty three (23) outputs with a total of one hundred nine (109) activities and expenditure of UGX.10.79Bn sampled for assessment, only one (1) output with a total of one (1) activity and expenditure worth UGX 0.04Bn was fully quantified, seven (7) outputs with a total of 43 activities and expenditure worth UGX.8.84Bn were insufficiently quantified with 11 activities (26%) quantified while 32 activities (74%) were not clearly quantified to enable assessment of performance while 15 outputs with a total of sixty five (65) activities and expenditure worth UGX.1.92Bn were not quantified at all. Furthermore, the only one (1) output quantified with one (1) activity worth UGX.0.04Bn was partially implemented. UGX.390,718,585 reported in the statement of financial position as deposits arising from the previous financial years was not supported by an explanatory note. The University made payments for domestic arrears totalling to UGX.100,887,500 relating to the previous financial year which were neither disclosed in the prior year financial statements nor budgeted in the financial year under review. Out of the 1,312 approved posts for the University, only 139 (11%) were filled leaving 1,165 (89%) posts vacant. Furthermore, 81 members of staff had remained on probation beyond the mandatory period of six months without being confirmed. I noted salary disparities whereby some officers were earning salary scales higher than their job titles while others were earning salary scales lower than their job titles. The University procured 5 vehicles in the last three years at a cost of 1.24Bn without clearance from Ministry of Public Service. Further, shortcomings were observed in the University’s fleet management which included; all the 12 vehicles owned by the University were not posted on the Asset Management module in the Integrated Financial Management system (IFMS), lack of a policy on Motor vehicle management to guide the usage and eliminate theft, losses, wastage and misuse of motor vehicles, lack of maintenance work plan to guide management on spending on maintenance for all vehicles and inadequate vehicle allocation to key service centers in the University. Evaluation committees did not follow the evaluation methodology stated in the bidding documents for procurements worth UGX.670,568,554. I noted that management used direct procurement method for contracts worth UGX.118,648,641 without appropriate justification. +11 Soroti University – 2018/19Opinion Qualified  Advance payments to 20 service providers totaling UGX.2.66Bn were recognized as receivables in the statement of financial position, however, the corresponding double entry to reduce the expenditure was not made, thus leading to an overstatement of the entity’s expenditure by the same amount in both statements of financial performance and appropriation. Sundry creditors to the tune of UGX.2.197Bn were not supported with the requisite documents, while payables to the tune of UGX.1.18Bn reportedly related to FY 2016/17, but this was not disclosed in both audited prior year financial statements of 2016/17 and 2017/18. Furthermore, a verification report by E&Y revealed that payables for the university as at 30th June, 2019 amounted to UGX.1.53Bn only. Note 18 in regard to cash and cash equivalent amount did not disclose an adjustment of UGX.172,429,240, in respect to a garnish order that + + + + +193 + + + + + + + + + + + + occasioned a direct charge on the university’s bank account, in order to arrive at the reported cash and cash equivalent of UGX.13,603,281 thus depriving the users of the financial statement the vital information for decision making Domestic arrears paid totaling to UGX.512,820,634 were neither disclosed in the prior year financial statements nor in the approved budget for the financial year under review. There was also no evidence that these payments were supported by a virement or supplementary approvals contrary to Section 21(1) of the PFMA (2015). Examination of payment vouchers revealed that payments totaling to UGX.255,373,636 lacked supporting documents such as requisitions from user departments, contracts, delivery notes, invoices, and acknowledgement receipts. Out of the budgeted revenue of UGX.742,000,000 for the financial year 2018/2019, UGX.46,245,546 was collected representing performance of 6% of the target. There was a shortfall in releases amounting to UGX.387,781,057 representing 2% of the budget. Furthermore, the entity remained with unspent balance of UGX.2.92Bn representing an absorption level of 84%. I noted cases where the information reported in the annual performance reports was incorrect and inaccurate. Out of a total of 8 out puts analyzed, completion status reported in the annual reports was found inaccurate for 5 out puts upon verification. I sampled 8 out-puts worth UGX.17.49Bn representing 96.9% of the total budget and noted that 2 outputs were fully quantified to enable measurement of performance while 6 outputs were partially quantified. UGX.137,508,916 was irregularly diverted from the activities on which it was budgeted and spent on other activities without seeking and obtaining the necessary approvals. I was unable to confirm the accuracy and authenticity of payables totaling to UGX.390,718,585 in respect of advances from the Treasury which had not been accounted for due to absence of reconciliations/analysis reports to support the figure. The University paid gratuity totaling to UGX.97,125,695 to its staff without deducting PAYE amounting to UGX.29,137,709 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, failure to prepare performance improvement plans and weak internal controls in the management of staff attendance record system. The University lacks a quality assurance unit. It was further observed that there was no properly documented quality assurance policy or program to undertake an independent assessment of its overall performance contrary to section 1.2.1 of the quality assurance framework for universities, 2016. +12 Higher Education Students Financing Board (HESFB)Opinion Unqualified  Out of the planned five (5) strategic targets/goals, all the five (5) were only partially achieved. Out of budgeted NTR collections of UGX.0.4bn, a sum of UGX.0.58bn was realized, representing a performance of 144.2 % of the target. There was a shortfall in government releases amounting to UGX.0.06bn representing 0.2% of the budget. Out of the total receipts for the financial year of UGX.30.3 Bn a sum of UGX.28.9 Bn was spent by the entity resulting in an unspent balance of UGX.1.4Bn representing an absorption level of 95%. I sampled 10 outputs with a total of sixty two (62) activities and expenditure + + + + +194 + + + + + + + + + + + + worth UGX.26.56 Bn and noted that all the activities were insufficiently quantified to enable assessment of performance. The Board accumulated payables totalling to UGX.1,252,959,459 as at the 30th June 2020. This was attributed to failure by Makerere and Kyambogo Universities to submit invoices for payment, timely and inadequate funding. I noted that only 200 (11%) of the 1,845 students who were awarded loans had their applications verified. The rest of the applications constituting 89% were not verified. A review of the statistics of students’ beneficiaries from the loan scheme over the last five (5) years indicated that on average only 42% of the qualifying applicants access the loan facility. I noted that whereas the recoverable amount stood at UGX.2,568,798,065 as at the end of FY 2019/2020, only UGX.231,003,090 had been recovered representing a recovery rate of only 9%. I observed that out of the approved staff establishment of 65 positions, the Board had only 27 (42%) resulting into shortage of 38 (58%) staff. Contrary to the Higher Educating Students Financing Board Act, 2014 which requires centralization of management of scholarships, it was observed that they are still scattered in various government agencies such as Ministry of Education and Sports and Uganda Missions abroad. +13 Uganda Teacher and School Effectiveness Project-1296 IDA (UTSEP)Opinion Unqualified  All the twenty two (22) targets/goals planned for implementation, had been fully achieved. Out UGX.48Bn budgeted disbursements, only UGX.37.9Bn were received, resulting into a shortfall of UGX. 10.1Bn due to over budgeting over and above the available project funding while the project received 100% of the GOU counterpart funding of UGX.8.5Bn. The Project remained with unspent balance of an unspent balance of UGX.2.15Bn, representing an absorption level of 97.2%. I noted that the Project’s prior year unspent balances of UGX.31.7 Bn brought forward were not included in the vote budget estimates, i.e not appropriated by Parliament thus constituting off-budget financing. All the 13 outputs with a total of 37 activities and expenditure worth UGX.67.6 Bn were fully quantified. 12 outputs with a total of 26 activities worth UGX.56.7Bn were fully implemented while One (1) output with a total of eleven (11) activities worth UGX 10.9Bn was partially implemented. I noted that, out of the UGX 5,151,530,000 transferred to UBOS, only UGX.1,649,282,800 had been accounted for leaving UGX 3,900,000,000 outstanding at the time of concluding the audit. An Integrated Inspection System (IIS) developed under component three (Technical assistance) to evaluate the effectiveness of teaching and learning, and performance of the head teachers, as well as, the teachers in schools country wide and to monitor and evaluate the transparency, accountability and planning at the local and national level and loss of data had developed operational gaps. I noted that there was resistance to teaching in Local Languages under the new Early Childhood Development framework for nursery schools. I noted absence of trained Care-givers after UTSEP had funded training of teachers and care givers to support upscale Early Grade Reading (EGR) and Community Child Care Programs (CCCP), There were inadequate storage facilities for books supplied under the Project implementation. Occupation Permits were not issued prior to handing over and Utilization of UTSEP Constructed Structures. I noted that 15 contractors were paid all the contract amounts including 5% + + + + +195 + + + + + + + + + + + + retention monies totaling to UGX.1,770,884,217 before completing correction of defects. +14 Uganda Skills Development Project- 1338-IDA - PSFU ComponentOpinion Unqualified  I noted that the Project has made cummulative disbursements of only USD.9,446,360 against cummulative commitments of USD.14,508,455 representing 65% performance. Out of the budgeted Revenue of UGX.20.95 Bn for the financial year 2019/2020, a sum of UGX.21.51 was collected representing a performance of 103% of the target. The entity remained with unspent balance of UGX.3.4 Bn representing an absorption level of 84.2%. +15 Uganda National Examinations Board (UNEB)Opinion Unqualified  Out of the planned five (5) strategic targets/goals, no target had been fully achieved while five (5) targets had been partially achieved. Out of budgeted NTR collections of UGX. 57.2bn, only UGX. 56.6bn was realized, representing a performance of 99% of the target. There was a shortfall in government releases amounting to UGX.4.5bn representing 7% of the budget. Out of the total receipts for the financial year of UGX 118.22 Bn, a sum of UGX. 118.22 Bn was spent by the entity representing an absorption level of 100%. I sampled six outputs with a total of 33 activities and expenditure worth UGX118.22 Bn and noted that two (2) outputs with a total of 19 activities and expenditure worth UGX 92.87Bn were insufficiently quantified. Furthermore, all the 14 quantified activities worth UGX 25.44Bn assessed were fully implemented. I noted that the Uganda National Examinations Board is primarily governed by the UNEB Act which was enacted on the 19th August 1983 has some weak clauses are not deterrent against examination malpractices. I noted Shortcomings in UNEB’s fleet management which included; absence of a fleet management policy; lack of vehicle inspections and irregular update of motor vehicle movement log books. +16 Makerere University Business School (MUBS)Opinion Unqualified  Out of 19 planned strategic targets/goals, one (1) target had been fully achieved, 17 were partially achieved while 1 was not achieved at all. Out of the budgeted NTR of UGX.46.60Bn for the financial year 2019/2020 only UGX.36.89Bn was realized, representing a performance of 79.16% of the target. The University budgeted to receive UGX.80.48Bn in Government receipts out of which UGX.78.63Bn was warranted, resulting into a shortfall of UGX.1.85Bn which is 2.3% of the budget. The University received off-budget financing to the tune of UGX.976,419,144 which was not transferred to the consolidated fund as required by the law. Funds were received directly from development partners for undertaking activities not budgeted for. I sampled 6 outputs with a total of 50 activities worth UGX.66.57Bn. 5 outputs with a total of 47 activities and expenditure of UGX.62.459Bn were fully quantified. One (1) output with a total of three (3) activities and expenditure worth UGX 4.109Bn were insufficiently quantified. I assessed the implementation of 5 out puts that were fully quantified with a sample of 10 activities worth UGX.56.758Bn and noted that 1 output with a total of 2 activities worth UGX.51.712Bn was fully implemented. 3 outputs with a total of 4 activities worth UGX.4.025Bn were partially implemented 1 output with a total of 4 activities worth 1.020Bn was not implemented. Included in the domestic arrears total are statutory deductions of UGX.2,246,784,831 that were not remitted to URA ( PAYE - + + + + +196 + + + + + + + + + + + + UGX.139,775,052), and NSSF (UGX.2,107,009,779). Furthermore, functional fees of UGX.1,907,747,700 collected from students and due to Makerere University were not remitted. I noted that domestic arrears totaling to UGX.9,659,993,758 were paid during the year but the amount had not been budgeted and appropriated by Parliament. A review of MUBS staffing status revealed that out of the 2,551 approved posts, only 1,158 (45%) were filled leaving 1,393 (55%) posts vacant. It was further noted that the category of academic staff was the most affected with only 37% of the posts filled. During the three (3) financial years: 2017/18-2019/20; the University planned to spend UGX.450,000,000 on acquisition of vehicles from government funding. A sum of UGX.315,360,192 was warranted by the Treasury for the purpose and the University eventually spent UGX 315,360,192. Shortcomings were observed in the University’s fleet management that included incomplete recording of the motor vehicles in the asset register, un updated asset management module, unapproved fleet management policy. The University experienced a budget shortfall of UGX.134,639,808 for the planned purchase of vehicles which impacted on service delivery. The University had accumulated domestic arrears to the tune of UGX.9,491,198,850 by the end of the financial year 2019/2020 compared to the previous year’s arrears of UGX.19,084,373,665. I noted that staffs at the same rank and salary scale were being paid at different salary rates with some staff earning twice as much as their colleagues in the same salary scale. Some staffs were significantly under paid as their salaries were much lower than what was issued by the Ministry of Public Service. +17 Lira UniversityOpinion Unqualified  I noted that at the time of the audit (October 2020), out of the planned 37 strategic targets/goals, 7 targets had been fully achieved, 26 were partially achieved while 4 were not achieved at all. I noted that the entity budgeted to collect NTR of UGX.2.587Bn during the year under review. Out of this, UGX2.404BN was collected, representing a performance of 93% of the target. Similarly, the University budgeted to receive UGX18.35Bn; however UGX20.24Bn was warranted, resulting in a surplus of UGX1.89Bn which is 10.3% of the budget. I noted that the University received off-budget financing to the tune of UGX53,623,270 which was not transferred to the consolidated fund as required by the law. Out of the total receipts for the financial year of UGX.20.242Bn, UGX20.111Bn was spent by the University resulting in an unspent balance of UGX. 0.131Bn representing an absorption level of 99.3%. Out of 15 outputs with a total of 69 activities and expenditure of UGX.20.1Bn, I reviewed the extent of quantification of outputs and activities and noted that ten (10) outputs with a total of thirty nine (39) activities and expenditure worth UGX 9.4Bn were fully quantified. That is, all the thirty nine (39) activities (100%) within these out-put were clearly quantified to enable assessment of performance. Five (5) outputs with a total of thirty (30) activities and expenditure worth UGX 10.7Bn were insufficiently quantified. I observed that out of the thirty (30) activities, twenty (22) activities (73.3%) were quantified while eight (8) activities (26.7%) were not clearly quantified to enable assessment of performance. I assessed the implementation of ten (10) out puts that were fully quantified with a sample of thirty nine (39) activities worth UGX 9.425Bn and noted that three (3) outputs with a total of nine (9) activities worth UGX.1.871Bn + + + + +197 + + + + + + + + + + + + was fully implemented. The entity implemented the activity (100%) within these output. Seven (7) outputs with a total of thirty (30) activities worth UGX 7.554Bn were partially implemented. The entity implemented fourteen (14) activities fully, twelve (12) activities partially and four (4) activities not implemented within these outputs. The University management did not prepare and submit the annual monitoring plans to MoFPED and NPA as required. Further, the University did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required. The University had outstanding payables as at 30th June 2020 of UGX.750,975,746 reflecting a 28.9% reduction from UGX.1,055,980,640 of the previous year. I noted that the University paid for unbudgeted for domestic arrears of UGX.990,756,535. I noted that the entity procured 2 vehicles in the last three years at a cost of UGX. 328,150,000. Shortcomings were observed in the University’s fleet management which included; lack of a motor vehicle management policy, University service centers were not adequately allocated vehicles affecting adequate monitoring & enforcement of administration and learning services. I noted that the University had shortcomings in the management of the Hospital operations that included poor storage of drugs, drug stock outs, failure to dispose of expired drugs while some facilities and equipment have not been put to use for a long time. +18 Kabale UniversityOpinion Unqualified  Out of the planned Sixty (6) strategic targets/goals, eight (8) targets had been fully achieved, five (5) were partially achieved, Four (4) were not achieved at all. Out of budgeted NTR collections of UGX. 5.73bn, only UGX. 5.69bn was realized, representing a performance of 99.3 % of the target. There was a shortfall in government releases amounting to UGX.0.74bn representing 2% of the budget. Out of the total receipts for the financial year of UGX 32.23 Bn, UGX. 31.58 Bn was spent by the entity resulting in an unspent balance of UGX 1.29 1Bn representing an absorption level of 95%. I sampled five outputs with a total of Twelve (12) activities and expenditure worth UGX25.32 Bn and noted that One (1) output with a total of Six (6) activities and expenditure worth UGX 110m were insufficiently quantified. Furthermore, of the 12 quantified activities worth UGX 25.39Bn assessed; one (1) activity worth UGX.23.23 Bn was fully implemented, while eleven (11) activities worth UGX 2.1 Bn were partially implemented. The university accumulated receivables totalling to UGX. 2,301,187,549 as at the 30th June 2020. This was an increase of UGX.2,121,187,549 (597%) from the outstanding amount of UGX 180,000,000 at the beginning of the financial year under review. The university had outstanding payables of UGX. 1,875,937,151. Out of this amount, UGX. 1,871,418,338 (99.8) relate to tax arrears brought forward from prior years. I noted Shortcomings in the Ministry’s fleet management which included; noncompliance with vehicle standardization guidelines; (one (1) (33%) motor vehicle acquired at a total cost UGX.396,654,186 had engine capacity higher than the recommended capacity. I further noted that vehicle inspections and reconciliations were not carried out regularly, motor vehicle log books had either not been updated with journeys made, fuel and maintenance costs or duly certified by an authorizing Officer. I noted that only 338 (18%) posts are filled out of an approved establishment of 1889 leaving a staffing gap of 1551 (82%). + + + + +198 + + + + + + + + + + + +19 Mbarara University of Science and Technology (MUST)Opinion Unqualified  I sampled 6 out-puts with 16 activities worth UGX. 31.6Bn representing 65 % of the total budget and noted that 1 output with 2 activities worth UGX.5.8Bn were Insufficiently quantified to enable measurement of performance. Furthermore, of the 14 quantified activities worth UGX.25.8Bn assessed; 1 activity representing 7% was fully implemented, 12 activities representing 86% were partially implemented while 1 activity representing 7% remained unimplemented. Outstanding receivables. A review of the University’s outstanding receivables position revealed that it had increased from UGX.956,642,541 in the previous year to UGX.2,794,745,312 in the year under review representing an increment of 192%. The University had 9 Court cases out of which one case was lost by the University resulting into court awards and legal costs totalling to UGX.16,000,000.The expenditure was wasteful A review of the University programs for 2019/20 revealed that 19 out of the 81 programs offered by the University lacked valid accreditation certificates as at the time of audit Contrary to Section 119A of the Universities and Other Tertiary Institutions Act, 2001 (as amended). A review of academic Courses run by the University revealed that the University failed to attract students for four (4) programs during the Academic Year 2020. It was further observed that a total of 22 programs in Year one and 18 Programs in Year two had significantly less numbers than the required minimum numbers both at under graduate and post graduate levels. 14 vehicles were procured in the last 3 years at a cost of 1.49Bn. Shortcomings were observed in the University fleet management that included; unplanned acquisition; 6 of the 14 vehicles were recorded without sufficient details contrary to Accountant Generals guidelines. All vehicles were not posted onto IFMS. +20 Pharm-Bio Technology and Traditional Medicine Centre (PHARMBIOTRAC)Opinion Unqualified  I observed that only US$.3,341,599 (76%) was disbursed in the 3 years period against the planned cumulative expenditure of US $ 4,398,018. Out of the total receipts for the financial year of USD. 1,677,853 a sum of USD 1,473,238 was spent by the entity resulting in an unspent balance of USD 204,615 representing absorption level of 88%. A review of the Project’s budgeted and actual expenditure revealed excess expenditure on some items to the tune of US$ 297,361. +21 Muni UniversityOpinion Unqualified  The University received off-budget financing to the tune of UGX.767,988,752 and EUR16,661 that was not transferred to the consolidated fund as required by law. I noted that out of the total receipts of UGX.16.280Bn, UGX.14.103Bn was spent by the University resulting into an unspent balance of UGX.2.2Bn representing an absorption level of 87%. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. Out of 10 outputs with a total of 117 activities and expenditure of UGX13.941Bn sampled for assessment I reviewed the extent of quantification of outputs and activities and noted that 2 outputs with 57 activities and expenditure worth UGX.7.641Bn were insufficiently quantified. Out of 57 activities, 45 activities (78%) were quantified while 12 activities (21%) were not fully quantified to enable assessment of performance. 8 outputs with 60 activities and expenditure worth UGX.6.3Bn were fully quantified to enable assessment of performance. I noted that in cases where outputs were either partially or not quantified, management reported performance in generic ways without specifying the + + + + +199 + + + + + + + + + + + + number/quantities achieved. I assessed the implementation of 8 out puts that were fully quantified with a total of 60 activities worth UGX 6.3Bn and noted that all the 8 outputs with 60 activities worth UGX6.300Bn were partially implemented. The entity implemented all the 8 activities (13%) fully and 21 activities (35%) were partially implemented while 31 activities (52%) were not implemented. The University did not prepare and submit the annual monitoring plans to MoFPED and NPA as required. In addition, the University did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required. Out of the approved 483 positions, only 112 (23.2%) positions were filled leaving 371 (76.8%) positions vacant. Low staff levels may lead to overload and ineffective execution of official duties by the existing workforce and affect service delivery. +22 Uganda Management Institute (UMI)Opinion Unqualified  Out of the planned three (3) strategic targets/goals, none had been fully achieved, three (3) were partially achieved. Out of budgeted NTR collections of UGX. 25.686 bn, a sum of UGX.10.125 bn was realized, representing a performance of 39.4 % of the target. Out of the total receipts for the financial year of UGX 32.78 Bn, a sum of UGX. 27.7 Bn was spent by the entity resulting in an unspent balance of UGX 5.02Bn representing an absorption level of 85%. I sampled 20 outputs with a total of sixty eight (68) activities and expenditure worth UGX18.48 Bn and noted that twelve (12) output with a total of forty three (43) activities and expenditure worth UGX 18.48Bn were fully quantified and 1 output with 5 activities and expenditure worth UGX.1.4 Bn were not quantified at all, 7 outputs with 20 activities and expenditure worth UGX 4.7 Bn were insufficiently quantified to enable assessment of performance. Furthermore, of the 43 quantified activities worth UGX 18.48Bn assessed; 13 activities worth UGX.1.4 Bn representing 30% were fully implemented, 30 activities worth UGX 17.08 Bn representing 70% were partially implemented. I noted Shortcomings in the Institute’s fleet management which included; inadequacy in maintenance funding. Through a review of the internal audit report, I noted that the Academic Information Management System (AIMS) has challenges such as; inability to handle all short courses and curriculum for two masters programmes, failure to generate payment reference numbers, inability to post contra entries and inability to access data for previous semester/Academic years. +23 Busitema UniversityOpinion Unqualified  All the five (5) strategic targets/goals planned to be achieved by the University were only partially achieved. Out of the budgeted Non tax revenue of UGX.5,768,000,000 for the year 2019/20, only UGX.3,686,793,048 was collected representing performance of only 64% of the target. There was a shortfall in releases amounting to UGX. 0.92Bn which is 2% of the budget. Further, the entity remained with unspent balance of UGX.920,045,000 representing an absorption level of 98%. The University received off-budget financing to the tune of UGX.1,466,924,370 which was not transferred to the consolidated fund as required by the law. These funds were received directly from development partners for undertaking activities which were not budgeted for. All the fifteen (15) planned out puts were fully quantified with a total of eighty six (86) activities worth UGX.37.3Bn. One (1) output with a total of three (3) activities worth UGX 0.99Bn was fully implemented while Fourteen (14) outputs with a total of eighty three (83) activities worth UGX.35.72Bn + + + + +200 + + + + + + + + + + + + were partially implemented. The University prepared or submitted the annual budget performance report on the 5th August 2020 rather than by 31st July, 2020 as required by regulations and there was a slight delay in submission of Quarter four (4) performance report. I noted that the university acquired two (2) motor vehicles at a cost of UGX.364,000,000 during the FY 2019/20 using Government of Uganda funds without the necessary waiver approvals contrary to the issued guidelines by the PS/ST and the Office of the Prime Minister. Three vehicles purchased by the University during the period of review were not posted onto the Asset Management module in the Integrated Financial Management system (IFMS) as at the end of the financial year 2019/2020 The annual average vehicle maintenance cost per vehicle increased from UGX.9,178,985 in the FY 2017/18 to UGX.12,063,420, which is 31% increment and the university did not prepare a maintenance work plan to guide its spending on maintenance for all vehicles during the 3 years under review. I noted that the University was understaffed with academic category at 21% and Non-teaching staff at 13% of the approved structure. A supplementary funding of UGX.1,300,000,000 for construction of Lecture and Laboratory Block at Faculty of Health Sciences- Mbale campus was not updated in the procurement plan nor approved by the Contracts committee as required by the Regulations. Contract managers did not prepare contract management plans or maintain contract management files to document the contract implementation as required by the Regulations. +24 Mandela National Stadium Limited (MSNL) – NambooleOpinion Unqualified  Out of the budgeted revenue of UGX.2,851,052,000 for the year 2019/20, only UGX.1,661,197,000 was realized representing 58% of the budgeted revenue. I noted that the Stadium had three outputs all of which were quantified and one (1) output/activity representing 33.3% was fully implemented while 2 outputs/activities representing 66.7% were partially implemented. I noted poor financial performance as the company made a loss of UGX.295,328,725 after tax in the year under review. I noted declining liquidity as the Stadium’s current ratio fell to 0.43 for the year under review which was way below the acceptable ratio of 1.5. I noted that the Stadium’s liabilities increased from UGX.4,598,118,967 in the F/Y 2018/2019 to UGX.5,384,387,673 as at the end of the financial year under review implying an increment of UGX.786,268,706(17%). I noted long outstanding receivables and the Stadium closed the financial year with a receivables figure of UGX.2,591,493,705, an increment of 7% from receivables of UGX.2,422,336,031 of the prior year. Review of the stadium operations revealed that management has failed to raise funds to maintain the stadium which has resulted into dilapidated facilities. I noted that the Stadium was faced with long outstanding illegal occupancy of its land by encroachers. I noted that the Stadium management had failed to collect revenue from the Ministry of health for the use of the stadium facilities as a non –traditional Isolation and treatment facility (NTIF) for COVID 19. +25 National Council for Higher Education (NCHE)  Out of the planned Six (6) strategic targets/goals, all were only partially achieved. Out of budgeted NTR collections of UGX. 6.25bn, only UGX.4.8bn was + + + + +201 + + + + + + + + + + + + Opinion Unqualified realized, representing a performance of 77 % of the target. There was supplementary government funding of UGX.0.109bn representing 2.5% of the budget. Out of the total receipts for the financial year of UGX 9.29 Bn, UGX. 8.57 Bn was spent by the entity resulting in an unspent balance of UGX 0.72Bn representing an absorption level of 92%. I sampled six outputs with a total of Twelve (109) activities and expenditure worth UGX8.57 Bn and noted that all the outputs with a total of One hundred nine (109) activities and expenditure worth UGX 8.57 Bn were insufficiently quantified. Furthermore, of the 65 quantified activities worth UGX 7.62Bn assessed; Twenty four (24) activity worth UGX.5.21Bn was fully implemented, while twelve (12) activities worth UGX 1.29 Bn were partially implemented and twenty nine (29) activities worth 1.12Bn were not implemented at all. I noted Shortcomings in the Council’s fleet management which included; unplanned acquisition of vehicles and absence of a fleet management policy and guidelines. +26 National Council of Sports (NCS)Opinion Unqualified  Out of the planned twenty (20) strategic targets/goals, two (2) targets had been fully achieved, ten (10) were partially achieved while eight (8) were not achieved at all. Out of the budgeted Non tax revenue of UGX.51, 592,487,064 for the year 2019/20, UGX.3952, 255,795 was collected representing performance of only 60% of the target. There was a shortfall in releases amounting to UGX. 4.90Bn which is 18% of the budget. Further, the entity remained with unspent balance of UGX. 0.94 BN representing an absorption level of 96%. The Council received off-budget financing to the tune of UGX.1UGX.59,550,000 which was not transferred to the consolidated fund as required by the law. These funds were received directly from development partners for undertaking activities which were not budgeted for. Eighty three (83) outputs with a total of eighty three (83) activities and expenditure worth UGX 20.55Bn were fully quantified. While fifty nine (59) outputs with a total of Fifty nine (59) activities and expenditure worth UGX 1.50Bn were not quantified at all. Out of the 83 quantified outputs, thirty nine (39) outputs with a total of thirty nine (39) activities worth UGX.16.13Bn were fully implemented while thirteen (13) outputs with thirteen (13) activities worth UGX.4.10 Bn were partially implemented as thirty one (31) outputs with a total of thirty one (31) were not implemented at all. I noted that out of 51 sports associations only 12 submitted audited books of accounts and 36 disclosed sources of funding to NCS. Two vehicles purchased by the Council during the period of review were not posted onto the Asset Management module in the Integrated Financial Management system (IFMS) as at the end of the financial year 2019/2020. +27 Uganda Petroleum Institute Kigumba (UPIK)Opinion Unqualified  I noted that the Institute budgeted to collect NTR of UGX.238,806,000 during the year under review out of which UGX.350,770,404 was collected, representing a performance of 146.9% of the target. There was a shortfall in releases amounting to UGX.4,347,758,978 representing 51% of the budget. Furthermore, the entity remained with unspent balance of UGX.0.05Bn representing an absorption level of 98%. I noted that UPIK accumulated arrears to the tune of UGX.1,117,766,065. Civil works contracts were lagging behind schedule. +28 Albertine Region Sustainable  The Project planned to achieve its deliverables through implementation of six + + + + +202 + + + + + + + + + + + + Development Project- 1310 (ARSDP –MOES Component)Opinion Unqualified (6) outputs with a budget of UGX.6,982,369,000 but a number of weaknesses were noted which included; Under performance in terms GOU Funding, under absorption, inaccuracies in planning and reporting and diversions and mischarges. Ineligible expenditure from the IDA Project Funds totaling UGX. 68,678,560. Non review of internal audit contrary to the requirement of the IDA requirements. +29 Education Service Commission (ESC)Opinion Unqualified  There was a shortfall in releases amounting to UGX.1.5Bn representing 15.9% of the budget. Furthermore, the entity remained with unspent balance of UGX.0.78Bn representing an absorption level of 90.53%. I sampled 5 out-puts with 14 activities worth UGX.6.97Bn and noted that 2 outputs with a total of 4 activities and expenditure worth UGX.4.41Bn were not quantified at all to enable measurement of performance while one (1) output with a total of two (2) activities and expenditure worth UGX 0.11Bn was insufficiently quantified. All quarterly performance reports were submitted after the quarterly deadline. I noted that the Commission made a funding surplus of UGX.32,773,050 on acquisition of 2 vehicles procured in the last three years and shortcomings were observed in the commission’s fleet management which included; non- needs assessment for the procured cars, failure to maintain fuel registers and log books. I also noted that the entity’s budget for maintenance over the previous three years was under funded by UGX.176,508,000. I noted that the entity did not conduct pre-retirement trainings contrary to Public standing orders, 2010 section (J - e) part 2. +30 National Curriculum Development Centre (NCDC)Opinion Unqualified  Out of the planned 17 strategic goals to be achieved by the Centre all the 17 were partially achieved. Out of the budgeted NTR of UGX.0.1Bn for the financial year 2019/2020, UGX.0.106 was collected representing performance of 106% of the target. There was a shortfall in government releases amounting to UGX. 2.1bn representing 8.5% of the budget. Furthermore, the entity remained with unspent balance of UGX.0.68Bn representing an absorption level of 97%. I sampled 11 out-puts with 35 activities worth UGX. 22.495Bn representing 100 % of the total budget and noted that 5 outputs with 24 activities worth UGX.15.19Bn were not insufficiently quantified to enable measurement of performance. Furthermore, of the 11 quantified activities worth UGX.7.31 assessed; 6 activities representing 54% was fully implemented 4 activities representing 36% were partially implemented while 1 activity representing 10% remained unimplemented. I noted that the Centre had outstanding arrears amounting to UGX.311,656,336 as at 30th June 2020 arising out of Court cases and outstanding supplies. I observed that out of the 214 approved posts for the Centre, only 86 were filled leaving 128 (60%) posts vacant. I noted Shortcomings in the center’s fleet management which included; non- compliance with government ban on acquisition of motor vehicles and procurement of vehicles without undertaking a needs assessment. +31 Management Training and Advisory Centre (MTAC)OpinionUnqualified  I noted that the MTAC budget of UGX.7,500,000,000 which was revised to UGX.5,446,753,000 lacked council approval Out of the budgeted NTR of UGX.2.35Bn for the financial year 2019/2020, a sum of UGX.2.31Bn was collected representing performance of 98.3% of the target. Out of the total receipts for the financial year of UGX.5.4Bn, a sum of + + + + +203 + + + + + + + + + + + + UGX.5.1Bn was spent by the Centre resulting into unspent balance of UGX.0.3Bn representing an absorption level of 94.4%. I noted that total liabilities increased from UGX.545,018,304 in the FY 2018/19 to UGX.912,428,501 indicating an increment of UGX.367,410,197(67.4%) Out of 72 posts of the newly implemented MTAC staff establishment, only 54 (75%) were filled leaving 18 (25%) vacancies. Among the vacant posts were key positions of the Executive Director, Director Finance and Administration and Manager-Human resources and Administration. +32 Economic Policy Research Centre (EPRC)Opinion Unqualified  No material issues. +33 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-UGOpinion Unqualified  No material issues. +34 Uganda National Education Support (UNES) Project - 2018Opinion Unqualified  No material issues. +35 Uganda National Education Support (UNES) Project - ClosureOpinion Unqualified  No material issues. +36 Africa Institute for Strategic Animal Resource Services and Development (Afrisa) - MUK 2016Opinion Unqualified  No material issues. +37 Africa Institute for Strategic Animal Resource Services and Development (Afrisa) - MUK 2017Opinion  No material issues. + + + + +204 + + + + + + + + + + + + Unqualified +38 Africa Institute for Strategic Animal Resource Services and Development (Afrisa) - MUK 2018Opinion Unqualified  No material issues. +39 Makerere Institute of Social Research (MISR) - Think Tank ProjectOpinion Unqualified  No material issue. +40 Makerere Institute of Social Research (MISR) CARNEGIE: Post graduate training & Research ProgramsOpinion Unqualified  No material issue. +41 Makerere Institute of Social Research (MISR) NORHED Institutional Development ProjectOpinion Unqualified  No material issue. +42 Makerere University Holding Company Limited (Mak Holdings)Opinion Unqualified  Makerere University Holding Company Ltd had accumulated domestic arrears to the tune of UGX.405,138,535 as at 30th June, 2020 that included statutory deductions of VAT of UGX.23,697,521; PAYE worth UGX.40,168,714 and NSSF of UGX.50,648,704 that remained unremitted. The Company recognized outstanding receivables of UGX.274,365,983 as at 30th June, 2020. I noted that 78% of the receivables were due from Makerere University, which was not paying for the services rendered from the Guest House. I noted that Mak Holdings annual returns for the period of July, 2015 to July 2019 were filed late on the 18th of February, 2020 against the Company’s Act requirements. I noted that Mak Holdings had not implemented most of its strategic objectives as planned as at 30th June 2020, thus defeating the purpose for which the company was set up. +43 ADB V Support to Higher Education, Science &Technology (ADB HEST) - 2018/19Opinion Unqualified  I noted that ICT equipment worth UGX.521,126,231 which had been procured for Busitema University using ADB-HEST funds was destroyed after fire gutted the computer laboratory on October 8, 2017. I noted that Withholding Tax amounting to UGX.9,317,786,518 was not withheld and there is no evidence to show that the service providers were WHT exempt. In addition, there was no evidence to show that the tax component was remitted from the GOU counterpart funding. I noted that although the directly spent funds totaling to UGX.71,574,737,471 towards rehabilitation and expansion of STI learning facilities, and each beneficiary institution given UGX. 40,000,000 to develop project sustainability plan to ensure continuity after project closure, this was not done. + + + + +205 + + + + + + + + + + + +  + SCIENCE AND INNOVATION +1 Ministry of Science, Technology and Innovation (MoSTI)Opinion Unqualified  I noted the Ministry lacked a Policy on Technology Development, although it financed one Company with UGX.89.5Million to develop and supply Innovative Solution towards the Fight against/Control of the Coronavirus (COVID 19) pandemic in Uganda. I observed that there have been no progress reports on the activities of the company to date, to enable assessment of best value attainment. The Ministry did not carry out an Internal Assessment on some Innovators before being financed as required by the National Research and Innovation Programme (NRIP) Framework. Financing innovators that were not previously assessed may result into financial loss resulting from innovator projects that are not feasible. The contract for Supply, Delivery, Installation and Commissioning of Assorted Medical Research and Development Equipment to Support Covid - 19 Diagnostics, Vaccines and Therapeutics at a contract sum of UGX.5.25Bn had not been fully delivered by 19th December, 2020, despite 100% advance payment. Given that there was no performance guarantee obtained from the supplier, the ministry remains exposed to a risk of loss in the event of total failure to deliver. Budget performance issues were noted such as; Shortfall in GOU releases; under absorption of funds; Underutilization of donor funds; Failure to budget for NTR and non-preparation of monitoring plans and reports. Shortcomings were noted in the Ministry’s Fleet Management which include; Failure to Comply with the Vehicle Standardization Guidelines of Government; Lack of a Fleet Management Policy and Guidelines; Failure to Maintain Fuel Registers; Failure to Maintain Proper Vehicle Movement Log Books; Absence of Annual Motor Vehicle Inspections and Non maintenance of Motor Vehicle Service Analysis Records. I observed that out of the one hundred and fifty two (152) established positions at the Ministry, only one hundred and twenty six (126) were filled leaving twenty six (26) positions vacant (17%). Vacant positions affect the ministry’s capacity to execute its mandate. +2 Uganda National Council for Science and Technology (UNCST)Opinion Unqualified  The entity had a revised budgeted of UGX.26.07Bn, out of which UGX.24.62Bn was released resulting into Budget short fall of UGX.1.45Bn which is about 5.6% of the budget. Budget shortfalls negatively affect implementation of planned activities and hence service delivery. Out of the total receipts for the financial year of UGX.26.9Bn, including donor funds, UGX.18.01Bn was spent by the entity resulting into an unspent balance of UGX.8.9Bn representing an absorption level of 67%. Unspent funds signify unimplemented activities which also negatively impacts on service delivery. I noted that the entity received off-budget financing to a tune of UGX.1.65Bn which was never paid into the consolidated fund as required by the law. Off- budget financing distorts planning, may result in duplication of activities, as well as posing a risk of misuse of funds. There were noted project delays in the implementation of National Science Technology, Engineering and Innovation Skills Enhancement Project (NSTEI- SEP), due to land wrangles, despite availability of donor funding of US$.84,736,583.78 and payment of GOU contribution of US$.14,960,098.56 to a contractor. Shortcomings were noted in the entity’s fleet management including; Failure to maintain fuel registers; Non maintenance of vehicle movement log books; Absence of annual vehicle inspections; Drivers’ competences for adequate operation of entity fleet and Non maintenance of maintenance of motor + + + + +206 + + + + + + + + + + + + vehicle service analysis records. +3 Uganda Industrial Research Institute (UIRI)Opinion Unqualified  Review of the implementation of the institution’s strategic plan revealed that out of the planned Five (05) strategic targets/goals, One (1) target had been fully achieved, Three (3) were partially achieved while one (1) was not achieved at all despite the fact that all funds for the activities had been released for all the five years. Review of the Non Tax Revenue (NTR) estimates, revenue sources and rates charged at vote level revealed that although the entity had budgeted to collect NTR of UGX.239,440,690, only UGX.147,751,361 was collected, representing a performance of 62% of the target. Shortfalls in NTR collections affect the implementation of planned activities at Government wide level. Review of the approved budget estimates for the Institute revealed that UGX.868 Million was earmarked for settlement of domestic arrears in the financial year 2019/20. However, UGX.1,812 Million was paid for outstanding liabilities relating to previous financial years. Consequently, a total of UGX.943 Million was diverted from the current year budget activities and used to settle domestic arrears for the past year which was irregular. + GENDER AND SOCIAL DEVELOPMENT +1 Ministry of Gender, Labour and Social Development (MoGLSD)Opinion Unqualified  Out of the approved budget of UGX.152,819,601,346, a sum of UGX.129,283,966,120 was realized resulting into a shortfall of UGX.23,535,635,226 representing 15.4%. Out of the warrants of UGX.129,283,966,120, a sum of UGX.128,170,100,041 was spent indicating an absorption rate of 99.14%, and a closing balance of UGX.1,113,866,079. I noted mischarges of UGX.18,919,010 and off-budget financing to a tune of UGX. 27,102,296,000 which was not transferred to the consolidated fund. I sampled 25 outputs with 31 activities worth UGX.134.12 Bn, representing 87.76% of the total budget, and noted that 9 outputs (36%) with 11 activities worth UGX. 79.33Bn were not quantified at all. In addition, out of the 16 quantified outputs with 20 activities assessed, 12 outputs (75%) were achieved, 15 activities (75%) were fully achieved/implemented, while 4 out puts with 5 activities representing 25% were partially achieved/implemented. There was a delay in payments of outstanding workers compensation worth UGX.725,577,006. In addition, there was increase in compensation obligations of UGX 114,516,191 during the year, while UGX 907,469,453 was paid out during the year. I noted that, out of UGX 3,300,000,000 budgeted for YLP activities, only UGX3,105,722,216 (94%) was received indicating a shortfall of 6%. Recoveries of UGX. 2,455,507,721 from the YLP were not remitted to the Bank of Uganda recovery account. In addition, UGX. 4,826,859,239 recovered could not be linked to any district/group due to absence of reconciliations. Furthermore, out of total recoveries of UGX. 34,804,760,933, only UGX. 9,449,060,080 was revolved to other youth groups leaving a balance of UGX.25,344,757,853 idle on account. Out of UGX.34,722,207,000 budgeted for Uganda Women Enterprise Program (UWEP) activities, UGX.15,987,181,908 (46%) was received indicating a shortfall of 54%. I noted that UGX. 3,626,621,134 (16%) constituting recoverable funds remained outstanding, while recoveries amounting to UGX.670,370,843 could not be tagged to any District and individual women groups due to lack of reconciliations. Furthermore, a variance of UGX.498,595,806 was noted between reported recoveries and actual account balances. + + + + +207 + + + + + + + + + + + +  During the three (3) financial years; 2017/18-2019/20, the Ministry budgeted UGX.7,459,701,100 for acquisition of vehicles from government funding. A sum of UGX.6,456,701,100 was warranted and UGX.6,456,701,100 spent to acquire 24 vehicles. Some of the shortfalls in fleet management were; lack of annual motor vehicle inspections, unapproved fleet management policy and failure to undertake medical tests and refresher courses by drivers. +2 National Council for DisabilityOpinion Unqualified  Out of the budgeted revenue of UGX. 1,236,000,000 for the financial year 2019/2020, UGX. 807,479,432 was released representing 65%. Out of the 13 approved posts, only 8 were filled leaving 5 posts vacant representing a staffing gap of 38.4%. The Council received ten (10) complaints from persons with disability in relation to violation of their rights. However, only three (3) complaints were concluded during the year. +3 National Council of Older PersonsOpinion Unqualified  Out of the budgeted revenue of UGX. 826,000,000 for the financial year 2019/2020, UGX. 621,319,421 was released representing 25% shortfall in available funds for expenditure. A s a result key activities were not undertaken such as monitoring the SAGE programme and disseminating the independent electoral commission materials. Out of the released funds amounting to UGX. 621,319,421, only UGX.549,200,002 was spent by the entity resulting into an unspent balance of UGX. 74,084,810, representing absorption level of 88%. The Council has no fleet for operational activities and has staffing gap of 33% under the current structure. +4 Uganda National Cultural Centre (UNCC)Opinion Unqualified  Out of the approved budget of UGX 5,355,692,000 a sum of UGX 2,532,843,990 was realized, representing 48%, resulting into a shortfall of UGX 2,822,848,000 representing 52% of the total budget. Out of the total receipts of UGX 2,532,843,990, only UGX 2,184,634,013 was spent by the entity resulting in an unspent balance of UGX. 348,209,977 representing absorption level of 86%. Out of the total payables figure of UGX 2,588,529,670, UGX 1,868,626,267 (72.2%) related to statutory obligations of gratuity, PAYE, VAT and NSSF. Out of the remaining liability of UGX 719,903,403(27.8%), UGX 652,414,611 was owed to M/s Ambitious Construction Co. Ltd. Out of the UGX 2,031,324,873, UGX 1.6 Bn (80%) is due from M/S Creations Limited. In addition, UGX 169,213,748 (8.3%) due from MS/ Food Platz, NACCAU craft village and UGAWU has also been outstanding for over a year. The UNCC Act enacted on 8th October 1959 has never been reviewed. There are no regulations and guidelines to operationalize the Act. +5 Equal Opportunities Commission (EOC)Opinion Unqualified  Out of the approved budget of UGX.12,264,537,958 a sum of UGX.10,717,869,447 was realized resulting into a shortfall of UGX. 1,546,668,511 representing 12.61%. Out of the warrants of UGX.10,717,869,447, a sum of UGX.10,039,139,356 was spent indicating an absorption rate of 93.7%. However, UGX.678,730,091 was unspent and it related to the unspent rental space funds. In addition, the commission received off-budget financing to a tune of UGX.1,717,063,149 which was not transferred to the consolidated fund. I sampled 8 outputs with 48 activities worth UGX.6.260 Bn, representing 51.04% of the total budget, and noted that 3 outputs (37.5%) with 68 activities and expenditure worth UGX. 0.153Bn were partially quantified. In addition, out of the 5 quantified outputs with 23 activities assessed, 2 outputs (40%) were achieved with 9 activities (40%) were fully achieved/implemented, while 3 out puts with 36 activities representing 60% were partially achieved/implemented. There are long outstanding receivables of UGX.211,105,359 for which the + + + + +208 + + + + + + + + + + + + PS/ST has since rejected management’s request to write them off but rather to recover. In addition, management is yet to recover a sum of UGX 90 million from staff who received funds for travel but were unable to travel. Management has outstanding statutory obligations to NSSF amounting to a sum of UGX.279,434,392 arising out of the failure to deduct NSSF from the gratuity payments and allowances. Out of 543 complaints received by EOC, only 236 where resolved as at 30th June 2020, representing 43.4% of concluded cases. My previous year report indicated that 72% (163) cases were not concluded. The commission has a 55.5%staffing gap coupled with nine staff on interdiction that is affecting the efficiency of the commission’s operations. During the three (3) financial years: 2017/18-2019/20; the Commission budgeted UGX.1,390,000,000 on acquisition of vehicles from government funding. A sum of UGX.1,390,000,000 was warranted and UGX.1,390,000,000 was spent to acquire 9 vehicles. The Commission procured eight (8) vehicles (33%) at a total cost of UGX.1,175,844,307 without prior clearance from MoPS, 6 vehicles at a cost of UGX.1.17 Bn were acquired but were not in the work plan, procurement plan and had no needs assessment undertaken. In addition, 3 vehicles (23%) acquired at a total cost of UGX.709,850, had engine capacities higher than the recommended threshold. There was inadequate recording of Motor vehicles, for instance; there were no service analysis records, incomplete log books, no fuel registers among others. There was an increase in maintenance cost, with maintenance costs averaging UGX.11.78 Million per vehicle per year. 5 vehicles surpass the recommended 5 year useful life but are yet to be disposed-off by management. These vehicle inadequacies affect service delivery effectiveness. +6 National Youth Council (NYC)Opinion Unqualified  Out of the approved budget of UGX.3,075,000,000, a sum of UGX.1,623,036,000 was realized resulting into a shortfall of UGX.1,451,963,839 representing 47.2%. Out of the total receipts for the financial year of UGX.1,623,036,161, Council incurred expenditure of UGX 1,686,012,781. This led to a debt of UGX 66,136,750, relating to non-payment of PAYE and NSSF. Council has a staffing gap of 42%, with no programme officer and accounts assistant. Undertaking its mandate and ensuring segregation of duties remains a challenge with the current shortage of personnel. +7 Uganda National Children’s Authority (UNCA)Opinion Unqualified  Out of the approved budget of UGX. 1,010,000,000 a sum of UGX. 695,277,561 was realized resulting into a shortfall of 314,722,439, representing 31%. Out of the subvention amount released of UGX. 695,277,561, a sum of UGX. 668,845,440 was spent indicating an absorption rate of 96%. The entity has two old vehicles for it is operations. However, these vehicles incurred an average of UGX 14.5 million on maintenance. The Authority has not had a governing board in two years and this has led to short comings in establishing policy and operational guidelines, establishing a staff structure, and award of short term contracts. Findings of the rational strategy on ending child marriage and early pregnancies revealed the cases such as; inadequacies in law enforcement, high illiteracy levels and, inadequate capacity and resources for extension works at district level. +8 National Women’s Council (NWC)Opinion Unqualified  Out of the approved budget of UGX.1,327,465,389 a sum of UGX.1,215,465,872 was received from MoGSLD, resulting into a shortfall of UGX. 111,999,517 representing 8.44%. UWC spent all the receipts of UGX.1,215,465,872 from MoGSLD. + + + + +209 + + + + + + + + + + + + Representing 100% performance. There were however delays in remitting the statutory deductions on employee remunerations, with some delays taking up to 44 days from the due date. . Fifteen (15) outputs with a total of fifteen (15) activities and expenditure worth UGX. 612,546,819 were not quantified at all. Council drivers did not undertake medical examination and refresher courses contrary to the standing orders. +9 National Library of Uganda (NLU)Opinion Unqualified  Out of the budgeted revenue of UGX. 1,079,283,882 for the financial year 2019/2020, UGX. 1,006,823,641 was collected representing 7% shortfall in available funds for expenditure. Out of the released amount of UGX 1,006,823,641, management spent only UGX. 970,089,719, resulting into an unspent balance of UGX.36,733,922 representing absorption level of 96%. NLU has not had a functional governing board for two years. +10 National Social Security Fund (NSSF)Opinion Unqualified  The Company has adopted fair value model for subsequent measurement of Investment Properties under IAS 40 where it is required to report all items of investment property at fair value on a continuous basis, at each reporting date, which was not done. Accordingly, I was unable to satisfy myself, using alternative audit procedures, the valuation of investment property as at June 30, 2018 which was reported at UGX.301.4 billion, and UGX.292.3 billion as at June 30, 2019. In addition the Company had incomplete records in regard to these assets, and some of which were encroached on by third parties and some government institutions limiting the Company’s access and control over these assets. I noted that the Company incurred a loss of UGX.6.5 billion and has negative operating cash flows of UGX.9.3 billion for the year ended June 30, 2018, and negative operating cash flows of UGX.3.8 Billion for the year ended 30th June 2019. Continuity as going concern is therefore, dependent on future profitable operations of the Company and the availability of funds to meet the obligations as and when they fall due. + + + + +210 + + + + + + + + + + + +ANNEXURE III: SUMMARY ENTITY FINDINGS AND OPINIONS FOR LOCAL GOVERNMENTS + +SN LOCAL GOVERNMENTS ARUA BRANCH SUMMARY OF KEY FINDINGS +1 Zombo DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 17.3% of the key performance indicators were fully achieved, 82.7% were partially achieved. The district collected 72.8% of its budgeted local revenue and received 99.7% of the funds expected from treasury while 72% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.5Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 18 outputs 12 (66.6%) were fully quantified, 3 (17%) were insufficiently quantified while 3 (17%) were not quantified at all. Out of the 12 quantified out-puts, 9 (75%) were fully implemented while 3 (25%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 3 (75%) were submitted on time. The district received UGX 310M for Covid interventions and all the funds were utilized. UGX 1,850,000 was used at source contrary to the Law. I noted weakness in the management of the intervention such as; insufficiently quantified work plans. There were weaknesses in the management of the districts fleet including; the vehicles have not been captured in the fixed assets module of the GFMIS because Zombo District is yet to be enrolled and integrated with Integrated Financial Management system (IFMS), failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy inadequate vehicle support to entity service delivery, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Warr HC IV faced challenges in delivery of services such as lack of medical equipment, poor maintenance of available equipment, failure to record donated equipment in the register and lack of sufficient data on delivery of mothers. I noted delays in accessing payroll for 64 staff newly recruited to the district and those transferred. +2 Arua DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan, revealed that 22% of the sampled targets were fully achieved, 74% were partially achieved while 4% were not achieved at all. The district collected 67% of its budgeted local revenue and received 94.7% of the funds expected from treasury while 27% of funds expected from external sources were received by year end. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 24 outputs 15 (63%) were fully quantified, 1 (4%) was insufficiently quantified while 8 (33%) were not quantified at all. Out of the 15 quantified out-puts, 7 (46%) were fully implemented, 4 (27%) were partially implemented while 4 (27%) were not implemented at all. Out of four quarterly reports, only 2 (50%) were submitted on time. The district received UGX 205M for Covid interventions and all the received funds were utilized. I could not obtain any records of donations in kind and in cash for review in order to make an appropriate evaluation of how such donations may have been recorded and utilized. + + + + +211 + + + + + + + + + + + +  I noted that the District had receivables balance of UGX.2,222,742,281 arising from prior years; with no movement in the year under review The district had deposits of UGX 1,926,602,231 which related to YLP and UWEP. There were weaknesses in the management of the districts fleet including; only one vehicle was procured instead of two, absence of fleet management policy, inadequate vehicle support to entity service delivery and shortfalls in funds allocated for motor vehicle maintenance. I noted that Adumi HC IV and Omugo HC IV faced challenges in delivery of services such as lack of medical equipment and idle equipment. The District had six heads of department holding their positions in acting capacity for more than the required six months I noted double payment of gratuity to a tune of UGX 99,935,577. +3 Nebbi DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 29% of the strategic targets were fully achieved, 47% were partially achieved while 24% were not achieved at all. The district collected 106% of its budgeted local revenue and received 98.8% of the funds expected from treasury while 29% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.2 Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 19 outputs 10 (53%) were fully quantified, 4 (21%) were insufficiently quantified while 5 (26%) were not quantified at all. Out of the 10 quantified out-puts, 5 (50%) were fully implemented, 4 (40 %) were partially implemented while 1(10%) was not implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 1 (25%) was submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX 228M for Covid 19 interventions and all the received funds were utilized. UGX. 3,120,000 was used at source contrary to the Law. I noted that items that were received in Kind were neither valued nor subjected to quality checks before receipt I noted that the District had receivables of UGX. 1,062,215,355 There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset registers and in the format prescribed by Accountant general , absence of fleet management policy, inadequate vehicle support to entity service delivery and shortfalls in funds allocated for motor vehicle maintenance. I noted that Nebbi hospital faced challenges in delivery of services such as lack of medical equipment There were also delayed works under UGFIT particularly at Atego seed schools and Pameka health center III I noted underperformance / under absorption of funds released for wages of UGX 1.1 Bn. +4 Adjumani DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 34.6 % of the strategic targets were fully achieved, 34.6 % were partially achieved while 30.77% were not achieved at all. The district collected 127.4 % of its budgeted local revenue and received 95.1 % of the funds expected from treasury while 21 % of funds expected from external sources were received by year end. The district had unspent balances of UGX 5Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 15 outputs 12 (80%) were fully quantified, 1 + + + + +212 + + + + + + + + + + + + (7%) was insufficiently quantified while 2 (13%) were not quantified at all. Out of the 12 quantified out-puts, 5 (42%) were fully implemented, 6 (50%) were partially implemented while 1 (8%) was not implemented at all. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, none was submitted on time. I also noted cases of inaccurate reporting of performance due to failure to quantify out puts. The district received UGX 237M for Covid19 interventions and all was utilized. UGX 11m was used at source contrary to the Law. I noted weakness in the management of the intervention such as; insufficiently quantified work plans. Items that were received in Kind were neither valued and no evidence of quality checks before distribution. I noted that the District had a receivables figure of UGX. 1,181,118,914. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the format prescribed by Accountant general, absence of fleet management policy and allocation of vehicles with engine capacities beyond staff entitlements. I noted that Adjumani hospital faced challenges in delivery of services such as lack of medical equipment, non-functioning equipment. There were also delayed works under UGFIT particularly at Maaji seed secondary school and Arinyapi health center III I noted under performance/under absorption in the payroll released funds. +5 Yumbe DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 54.5% of the strategic targets were fully achieved, 36.4% were partially achieved while 9.1% were not achieved at all. The district collected 30% of its budgeted local revenue and received 81% of the funds expected from treasury while 55% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.7Bn which was sent back to treasury. The district had off-budget financing amounting to UGX 1.5 Bn for the year contrary to the budget execution circular I noted challenges in quantification of outputs which affect assessment of performance. Out of a sample of 19 outputs 16 (84%) were fully quantified, while 3 (16%) were not quantified at all. Out of the 16 quantified out-puts, 11 (69%) were fully implemented, 2 (13%) were partially implemented and 3 (18%)were not implemented. Out of four quarterly reports, only 1 (25%) was submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX 1.67Bn for Covid 19 interventions and all the received funds were utilized. I noted that procurements carried out by the district were not audited by internal audit. I reviewed the management of URF and noted ; a budget shortfall of UGX 171M, Un paid wages 68M Review of DRDIP revealed an idle bridge that was constructed and late release of funds to projects. I also noted diversion of district council allowances and loss of assets (motorcycles) There were weaknesses in the management of the districts fleet including; absence of fleet management policy and guidelines, inadequate vehicle support to entity service delivery and shortfalls in funds allocated for motor vehicle maintenance. I noted that Yumbe HCIV and Midigo HCIV faced challenges in delivery of services + + + + +213 + + + + + + + + + + + + such as lack of medical equipment and idle equipment.  There were also delayed works under UGFIT particularly at Logonga seed school. In my review of the payroll, I noted underperformance of wage bill of UGX 736M, salary payments to staff above retirement age, incomplete personnel files, inconsistence staff information and accumulation of gratuity arrears. +6 Pakwach DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that Pakwach DLG did not fall in the category of the 5 year performance evaluation criteria since the District is 3 years old after its creation out of Nebbi District. The district collected 28% of its budgeted local revenue and received 102% of the funds expected from treasury while 8% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.3 Bn which was sent back to treasury. The District had off budget financing to a tune of UGX 20M I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 24 outputs 10 (42%) were fully quantified, 10 (42%) were insufficiently quantified while 4 (16%) were not quantified at all. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. All the four quarterly reports (100%) were not submitted on time. The district received UGX 198M for Covid interventions and all of it was utilized. I noted weakness in the management of the intervention such as; insufficiently quantified work plans. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequacy of the vehicle support to entity service delivery and shortfalls in funds allocated for motor vehicle maintenance. I noted that Pakwach HC IV faced challenges in delivery of services such as lack of medical equipment, failure to properly maintain equipment I noted under absorption of wage bill of UGX 77M, Salary payments to staff above retirement age, underpayment of gratuity, delayed confirmation of staff and accumulation of gratuity arrears. +7 Maracha DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 13% of the strategic targets were fully achieved, 65% were partially achieved while 22% were not achieved at all. The district collected 76% of its budgeted local revenue and received 101.9% of the funds expected from treasury while 91% of funds expected from external sources were received by year end. The district had unspent balances of UGX 0.69 Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 17 outputs 13 (77%) were fully quantified, 1(6%) was insufficiently quantified while 3 (17%) were not quantified at all. Out of the 13 quantified out-puts, 7 (54%) were fully implemented, while 6 (46%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 1 (25%) were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX 206 M for Covid interventions and all the funds were utilized. UGX 920,000 was used at source contrary to the Law. I noted weakness in the management of the intervention such as; failure to implement all planned activities. 38% of the district staff structure was not filled with key staff such as district + + + + +214 + + + + + + + + + + + + engineer missing There were weaknesses in the management of the districts fleet including; procurement of a vehicle using government funds in the FY 2019/2020 without seeking a waiver as there was an official ban, failure to record vehicles in the asset register and in the format prescribed by Accountant general and no evidence of regular inspection and reconciliation of vehicles in the assets register, absence of fleet management policy, inadequate vehicle support to entity service delivery and shortfalls in funds allocated for motor vehicle maintenance. I noted that Maracha HC IV l faced challenges in delivery of services such as; lack of medical equipment. There were also delayed works under UGFIT particularly at Kololo seed school, Curube health center III and operationalization of Ajikoro HC II Maternity ward I noted under performance of a wage bill to the tune of UGX 442M. +8 Nebbi MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 21% of the strategic targets were fully achieved, 50% were partially achieved while 29% were not achieved at all. The district collected 65% of its budgeted local revenue and received 81% of the funds expected from treasury. The entity did not receive any external funding. The council had unspent balances of UGX 1.2Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 8 outputs 7 (88%) were fully quantified, while 1 (12%) was not quantified at all. Out of the 7 quantified out-puts, 4 (57%) were fully implemented, 3 (43%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 2 (50%) were submitted on time. I also noted cases of inaccurate reporting of performance. 57% of the district staff structure was not filled with key staff such as Municipal engineer and Municipal Treasurer missing I noted long outstanding receivables of UGX 528M. I also noted a poor state of Erussi road There were weaknesses in the management of the districts fleet including; absence of fleet management policy, inadequacy of vehicle support to entity service delivery and shortfalls in funds allocated for motor vehicle maintenance. I noted an unspent balance of UGX 1.71Bn on payroll expenses I noted weaknesses such as lack a Garbage Management Strategy and Plan, Insufficient public sensitization, shortage of equipment to manage garbage, lack of protective wear. +9 Moyo DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 100% of the strategic targets were partially achieved. The district collected 113 % of its budgeted local revenue and received 94% of the funds expected from treasury while 53% of funds expected from external sources were received by year end. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 13 outputs 8 (62%) were fully quantified, 4 (31%) were insufficiently quantified while 1 (7%) was not quantified at all. Out of the 8 quantified out-puts, 6 (75%) were fully implemented, 1 (12.5%) was partially implemented while 1(12.5%) was not implemented at all. The district prepared and submitted annual monitoring plans and quarterly performance reports to the required entities. All the four reports (100 %) were not submitted on time. I also noted cases of inaccurate reporting of performance. I noted inaccuracies in the performance reports submitted The district received UGX 390 M for Covid 19 interventions and the received + + + + +215 + + + + + + + + + + + + funds were utilized. UGX 4,275,000 was used at source contrary to the Law. I noted weakness in the management of the intervention such as; insufficiently quantified work plans. Items that were received in Kind were not subjected to quality checks before distribution and no evidence of acknowledgement of receipt for all items the Entity distributed. I noted that the district had receivables balance of UGX.643,682,955  I noted the district had an outstanding payables balance of UGX 735,772,354. There were weaknesses in the management of the districts fleet including; absence of fleet management policy and guidelines, inadequate vehicle support to entity service delivery and shortfalls in funds allocated for motor vehicle maintenance. I noted that Moyo hospital faced challenges in delivery of services such as lack of medical equipment and idle equipment. There were also delayed works under UGFIT particularly at Dufire Seed secondary School and Aya HC III (Maternity Ward). +10 Arua MCOpinion Unqualified  My review of the implementation of the 2015-2020 Strategic plan revealed that 51% of the targets were fully achieved, 42% were partially achieved, 2% were not achieved at all while 5% were not measured The Municipality collected 95% of its budgeted local revenue and received 99.7% and 99% of the funds expected from treasury and other government units respectively, but did not receive any external financing. The total unspent balance of UGX.0.95Bn (3.5%) was sent back to the treasury I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 10 outputs 8 (80%) were fully quantified while 2 (20%) were insufficiently quantified. Out of the 8 quantified out-puts, 6 (75%) were fully implemented, while 2 (25%) were partially implemented. I noted that 1 (25%) of the quarterly performance reports was submitted after the deadline. I also noted some inconsistencies in the performance reports submitted. Review of financial statements revealed increases in payables of 35% from UGX 1.115bn to UGX. 1.503bn from FY 2018/19 to FY 2019/20 A review of the financial statements revealed that management did not make sufficient disclosures on the effect of change of the entity’s status from a municipality to a city There were weaknesses in management of the municipality’s motor vehicle fleet including; non maintenance of proper motor vehicle records, the lack of a fleet management policy and guidelines, inadequate allocation of vehicles to departments/units, non-preparation of a maintenance work plan to guide its spending on motor vehicles I noted that the Municipality faced challenges in delivery of services due to lack of adequate medical equipment and idle equipment noted at River Oli Health Centre IV I noted challenges in payroll management where management failed to absorb 3% of received payroll funds and inconsistencies in some staff information Review of Garbage management revealed that the entity did not have by laws to enforce waste management, insufficient budgetary allocation towards implementation of the garbage management strategy and plan, non-maintenance of data/records on garbage generated within the municipality. I also noted that 35% of budgeted funding in FY 2018/19 and FY 2019/20 for garbage collection was not realized and as a result the municipality did not undertake any public awareness and sensitization campaigns in the two years and had inadequate equipment and facilities for garbage collection and disposal. I reviewed the implementation of Urban Physical Development Plan (UPDP) and + + + + +216 + + + + + + + + + + + + noted that there was inadequate funding to meet the objectives of the UPDP. Furthermore, of the approved budgets, only 93.7% was released. I also noted lack of development permits for some on-going physical developments and non- disclosure of a contingent liability relating to on-going road works in the financial statements There was a UGX.3.58 Bn (33%) budgetary shortfall in USMID-(MISG) funding which affected timely implementation of some projects. I also noted non-disclosure of a contingent liability arising from litigation, delayed closure of program designated bank account and failure to return funds to the ministry of lands contrary to instructions from the PS Ministry of Lands, Housing and Urban Development. The municipality also faced challenges of uncoordinated development programs causing the municipality to incur nugatory expenditure of UGX.2.39Bn The Municipality did not receive 27% of budgeted Uganda Road Fund funds, with funds all for the fourth quarter (UGX0.23bn) not received. +11 Koboko DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 40% of the strategic targets were fully achieved, 40% were partially achieved while 20% were not achieved at all. The district collected 66.5% of its budgeted local revenue and received 99% of the funds expected from treasury while 45% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.34Bn which was swept back to treasury. The district had off-budget financing amounting to UGX 20,000,000 for the year contrary to the budget execution circular. Out of the 17 quantified out-puts, 13 (77%) were fully implemented and 4 (23%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, three (75%) were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX 185M for Covid19 interventions and all the funds were utilized. UGX. 20m was not banked to the consolidated fund contrary to the Law. I noted that UGX 23 million meant for Pension was diverted/mischarged during the year. I noted that 41.2% of the district staff structure was not filled. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequate support to entity service delivery, failure to mentain log books and failure to take drivers for medical test. I noted that Koboko hospital faced challenges in delivery of services such as lack of medical equipment and understaffing at the District hospital. +12 Koboko MCOpinion Unqualified  I was not able to review the implementation of the NDP II 2015-2020 because Koboko MC had not undertaken to perform an assessment of the implementation of the strategic objectives by the time of the audit The Municipality collected 85% of its budgeted local revenue and received 100% and 63% of the funds expected from treasury and other government units respectively and 61.6% of its budgeted external financing. Of the funds received, the entity absorbed 97.2% and the unspent balance of 2.8% was swept back to the consolidated fund. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 13 outputs 4 (31%) were fully quantified, 8 outputs (62%) were partially quantified while 1 (7%) was not quantified at all. All of the 4 (100%) fully quantified outputs were fully implemented. + + + + +217 + + + + + + + + + + + +  The Municipality did not prepare annual monitoring plans and neither were quarterly monitoring reports prepared and submitted. Out of four quarterly performance reports, 3 (75%) were submitted after the deadline and 1 (25%) was not submitted by the time of the audit. Review of local revenue records revealed that Local revenue advance of UGX.0.35 Bn left outstanding was not disclosed in the financial statements as a liability/payable There were weakness in management of the municipality’s motor vehicle fleet including; non maintenance of proper motor vehicle records, the lack of a fleet management policy and guidelines, inadequate allocation of vehicles to departments/units, non-preparation of a maintenance work plan to guide its spending on motor vehicles and the disposal of motor vehicles Review of Garbage management revealed that the entity did not have by laws to enforce waste management, did not have a Garbage Management Strategy and Plan and did not maintain data/records on garbage generated within the municipality. On garbage management, I noted some weaknesses including; failure to develop bylaws, lack of garbage management strategy plan, inadequate funding for garbage management, inadequate awareness and sensitization and challenges of transportation of garbage from the gazetted collection points. Review of Urban Physical Development Plan (UPDP) in Nebbi Municipal Council revealed the following challenges; Lack of approved UPDP and detailed plans, lack of detailed work plan of the physical planning unit, failure to issue permits to developers. +13 Arua RRHOpinion Unqualified  My review of the implementation of the 2015-2020 Strategic Plan revealed that 16% of the strategic targets were fully achieved leaving 84% partially achieved. The Hospital collected 66% of the budgeted local revenue, while 99% of the budgeted transfers from the treasury was received. UGX 1,409,941,691 was received from external/donor financing although it was not budgeted for. There was an over expenditure of UGX 923,785,971. The Hospital had off budget financing amounting to UGX. 2,105,857,206 for the year contrary to the budget execution circular All of the 7 outputs with 15 activities sampled were fully quantified. I noted that 4 (57%) were fully implemented while 3 (43%) were partially implemented. The hospital received UGX 319M for Covid 19 interventions and 103% was utilized. I noted weakness in the management of the intervention such as unrealistic budget, no evidence that quality of items received was checked and verified I noted that the hospital’s domestic arrear had increased by UGX.1.2Bn  The hospital had a staff shortage in critical positions of 52% I noted that the hospital did not have a land title for the land on which it was located. I also noted that the hospital had settled un budgeted for domestic arrears of up to UGX 0.16Bn There were weaknesses in management of the hospitals fleet including; non maintenance of proper motor vehicle records, the lack of a fleet management policy and guidelines, non-preparation of a maintenance work plan to guide its spending on motor vehicles I noted that Arua RRH faced challenges in delivery of services due to lack of medical equipment, idle equipment, poor maintenance of available equipment. +14 Madi-Okollo Opinion  I noted that Madi – Okollo District did not have a five year strategic plan in place. The current year is Madi-Okollo’s first year of operation The district collected 56.5% of its budgeted local revenue and received 98% of + + + + +218 + + + + + + + + + + + + Unqualified the funds expected from treasury while 33% of funds expected from external sources were received by year end. The district had unspent balances of UGX 2.2 Bn which was sent back to treasury. The district had a known off-budget financing amounting to UGX 26,545,404 for the year contrary to the budget execution circular. The off budget used in the financing of Construction of the ART Clinic in Okollo H/C III from IDI was not known. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 11 outputs, 7 (64%) were fully quantified, 1 (9%) was insufficiently quantified while 3 (27%) were not quantified at all. Out of the 7 quantified out-puts, 3 (42 %) were fully implemented, 2 (29%) were partially implemented while 2 (29%) were not implemented at all The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, all (100%) were not submitted on time. The district received UGX.362M for Covid 19 interventions which was all utilized. UGX 900,000 was used at source contrary to the Law. I noted weakness in the management of the intervention such as; no evidence of quality checks before distribution, no approval by task force of the distribution of items worth UGX 124,011,400 and no evidence of acknowledgement of receipt for all items the Entity distributed. I noted a loss UGX.25,483,500 advanced to the Engineer. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequate vehicle support to the entity service delivery and shortfalls in funds allocated for motor vehicle maintenance. 85 % of the district staff structure was not filled with key staff such as substantive head of finance, head of procurement missing. I noted salaries being paid to people not on the staff list. I noted that Madi – Okolo Rhino camp HC IV hospital faced challenges in delivery of services such as lack of medical equipment, idle equipment, failure to record donated equipment in the register and lack of sufficient data on delivery of mothers. There were also delayed works under UGFIT particularly at Power Seed School. +15 Obongi DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that the District did not have strategic plan in place as this was its first year of operation. The district collected 32% of its budgeted local revenue and received 85% of the funds expected from treasury while 3% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.3Bn which was sent back to treasury. Out of a sample of 13 outputs, 9 (70%) were fully quantified, 2 (15%) were partially quantified and 2 (15%) were not quantified at all. Out of the 9 quantified out-puts, 4 (45%) were fully implemented, 1 (10%) was partially implemented while 4 (45%) were not implemented at all. The district prepared and submitted annual monitoring plans and quarterly performance reports to the required entities. Out of four quarterly reports, only 1 (25%) was submitted on time. The district received UGX 211M for Covid 19 interventions and all the funds were utilized. UGX 3 M received as cash was used at source contrary to the Law. Items that were received in Kind were neither valued nor subjected to quality checks before distribution. There was no mechanism of providing information to people in quarantine centre from the ‘outside’ such as radios, phones and televisions. + + + + +219 + + + + + + + + + + + +  48% of the district staff structure was not filled with key staff such as head of finance and district engineer missing. I also noted that all heads of department are holding their positions in acting capacity for more than one year There were weaknesses in the management of the districts fleet including; over expenditure of UGX 15 M In a procurement of vehicle, absence of fleet management policy, inadequate vehicle support to entity service delivery and shortfalls in funds allocated for motor vehicle maintenance. I noted that Obongi HC IV faced challenges in delivery of services such as lack of medical equipment, idle equipment, poor maintenance of available equipment, failure to record donated equipment in the register and lack of sufficient data on delivery of mothers. I also noted that the hospital had challenges like; Non- functional Mortuary due to lack of equipment since its construction in 2018 ,Non- functional incinerator – since its construction and Laboratory lacks vital equipment such as a haematology (blood) analyser used for procedures such as complete blood counts I noted the Health center was encountered with drug stock outs. + FORT PORTAL BRANCH +1 Kasese DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 45% of the sampled targets were fully achieved while 55% were not achieved at all. The district collected 71% of its budgeted local revenue and received 110% of the funds expected from treasury while 50% of funds expected from external sources were received by year end. The district had an over expenditure of UGX. 289,702,328. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 17 outputs, 12 (71%) were fully quantified while 5 (29%) were not quantified at all. Out of the 12 quantified out-puts, 7 (58%) were fully implemented, while 5 (42%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, none (0%) was submitted on time. I also noted cases of inaccurate reporting of performance. The district received a total of UGX 265,801,480 for Covid-19 interventions and all funds were utilised. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. I noted that there was an unsupported adjustment in the statement of outstanding commitments of UGX 477,032,408 as part of the prior year commitments paid during the year; however there were no supporting documents for the amounts provided for review. 92 positions (25%) of the district staff structure were not filled with key staff such as Head of Finance, District Engineer and District Production Officer were all vacant as staff in these positions has been acting capacities for 2 or more years. The District procured 2 vehicles worth UGX. 348,753,265 in the period under review but had challenges in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, failure to prepare maintenance work plans and shortfalls in funds allocated for motor vehicle maintenance. I noted that Bwera District Hospital and Nyamirami Health Centre faced challenges + + + + +220 + + + + + + + + + + + + in delivery of services such as lack of adequate medical equipment, non- functioning equipment and lack of anaesthesia to be used on mothers during deliveries. There were delayed works under UgIFT, particularly Construction of Nyakatonzi Seed secondary School, and also challenges in the Management of UgIFT such as lacks of land title for the school, Inadequate Contract Supervision and Monitoring for the upgrade of Nyakimasa and Kyampara Health Centre IIs to IIIs. There was Non Compliance with Repayment Schedules of UWEP and YLP resulting in outstanding balances of UGX. 736,064,280 and UGX. 1,678,966,715 respectively. I noted challenges in the implementation of the Uganda Road Fund Program including; underfunding of the program, no performance under routine manual maintenance. +2 Kabarole DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that it was not quantified and thus it was difficult to ascertain the level of achievement of the strategic plan. The district collected 52% of its budgeted local revenue and received 97% of the funds expected from treasury while 81% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.5Bn which was sent back to treasury. The district had off-budget financing amounting to UGX.53,834,000 for the year contrary to the budget execution circular The District fully quantified the 22 sampled out-puts however had challenges with implementing activities. Of the 22 fully quantified outputs; 9 outputs (41%) were fully implemented, 10 outputs (45%) were partially implemented and 3 outputs (14%) were not implemented at all. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 2 (50%) were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX 205M for Covid interventions and UGX 17.m was used at source contrary to the Law while UGX 32.6M was not accounted for. There were no disclosures in the commentary of either the Accounting Officer or the Head of Finance to explain the effect of the change of status of Fort portal Municipal Council to a City on the district. The District had an outstanding balance of UGX.36.2M of the District Transport Revolving Fund (DTRF) that was used to acquire a vehicle from Ministry of Local Government. The figure was not recognized as a payable in the financial statement thus understating the payables Balance. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles with engine capacities beyond staff entitlements, and shortfalls in funds allocated for motor vehicle maintenance. There were also delayed works under UgIFT particularly Construction of St. Paul’s Nyabweya seed secondary school,upgrade Nyakitokoli Health Centre II to Health Centre III. I reviewed the implementation of Uganda Road Fund and noted that there was underfunding of UGX 0.2Bn which led to non-implementation of some planned road works. I noted that Bukuuku Health Centre IV faced challenges in delivery of services such as lack of basic medical equipment, idle equipment and poor maintenance of available equipment. + + + + +221 + + + + + + + + + + + +  The District did not settle verified salary and pension arrears worth UGX 155,417,880. The district had outstanding arrears of UGX.107M and UGX.67M resulting from non- recovery of funds under YLP and UWEP programs respectively. +3 Ntoroko DLGOpinion Unqualified  My review of the implementation of the 2015-2020 Strategic plan revealed that 16% of the strategic targets were fully achieved, 68% were partially achieved while 16% were not achieved at all. The district collected 24.2% of its budgeted local revenue and received 102% of the funds expected from treasury while 54% of funds expected from external sources were received by year end. The district had unspent balances of UGX. 129,959,680 which was sent back to treasury. The district had off-budget financing amounting to UGX 90,857,400 for the year contrary to the budget execution circular. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 9 outputs 8 (89%) were fully quantified, while 1 (11%) was insufficiently quantified. Out of the 8 quantified out-puts, 6 (75%) were fully implemented, while 2 (25%) were partially implemented. The district prepared annual monitoring as well as the quarterly performance reports. Out of four quarterly reports, only 2 (50%) were submitted on time. The district received a total of UGX. 165,600,000 for Covid-19 interventions and all funds were utilised. I however noted that funds amounting to UGX 600,000 were not banked but spent at source contrary to the law. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. I also noted that the District had outstanding payables of UGX.316, 596,600 by the end of the year. A detailed review of the financial statements revealed that out of the outstanding payables, UGX. 261,312,091 relate to the previous financial years. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, failure to prepare maintenance work plans and shortfalls in funds allocated for motor vehicle maintenance. I noted that Karugutu Health Centre IV faced challenges in delivery of services such as lack of adequate medical equipment and also failure to carry out regular maintenance of the equipment in the maternal ward. Under the UgIFT program there was delayed works for the Construction of Nombe Seed School and Upgrade of Rwangara Health Center III. I noted underpayment of salaries of UGX. 17,207,334 to some staff of the District. +4 Kyegegwa DLGOpinion Unqualified  My review of the implementation of the 2015-2020 Strategic Plan revealed that 57.1% of the strategic targets were fully achieved, while 42.9% were partially achieved. The district collected 69% of its budgeted local revenue and received 99% of the funds expected from treasury while 49% of funds expected from external sources were received by year end. The district had unspent balances of UGX. 983,763,415 which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 6 outputs, 4 (67%) were fully quantified while 2 (33%) were not quantified at all. Out of the 4 quantified out-puts, 1 (25%) was fully implemented, while 3 (75%) were partially implemented. The district prepared and submitted annual monitoring plans. Out of four quarterly performance reports, only 1 (25%) was submitted on time. + + + + +222 + + + + + + + + + + + +  The district received a total of UGX 302,000,000 for Covid-19 interventions and all funds were utilised. I however noted that funds amounting to UGX 77,000,000 were not banked but spent at source contrary to the Law; and an excess expenditure to the tune of UGX 24,627,500 towards COVID-19 activities. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, failure to prepare maintenance work plans and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kyegegwa Health Centre IV lacked adequate medical equipment in the maternal ward. There were also delayed works under UGFIT particularly for the construction of Rwentuuha Seed School and delayed works and lack of effective Internal Control over Certification of Works for Payments for construction of Karwenyi Health Centre III. The District had outstanding amounts of UGX 522,555,309 from YLP groups that were funded from 2016/17, 2017/18 and 2018/19. The District had outstanding amounts of UGX 196,364,405 from Women’s groups that where funded from 2017/18 and 2018/19. +5 Fort Portal RRHOpinion Qualified  My review of the implementation of the 2017-2020 strategic plan revealed that 71% of the sampled targets were fully achieved, while 29% were not achieved at all. The hospital collected 103.2% of its budgeted non-tax revenue and received 96% of the funds expected from treasury while UGX 350,491,362 from external sources was received by year end although it had not budgeted to receive funds from external sources. The hospital had unspent balances of UGX. 464,677,831 which was sent back to treasury. The Hospital fully quantified the sampled 7 out-puts however had challenges of implementing the activities; 5 (71%) were fully implemented, while 2 (29%) were partially implemented. UGX 157,809,531 was diverted/mischarged during the year. The Hospital did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Furthermore, No quarterly performance reports were prepared throughout the financial year. The Hospital received UGX.270,000,000 for Covid-19 interventions and UGX.89, 009,282 was utilized. UGX 22,855,500 was not accounted for, UGX.11, 465,000 was utilised on un budgeted activities. I noted that the hospital lacked a hospital governing board it also had challenges in managing the private wing such as; Lack of an Approved Work plan and Budget and Lack of Approved Fees Structure. 28% of the Hospital staff structure was not filled with key staff such as senior positions of Consultants, senior procurement officer and an Accountant are vacant. There were weaknesses in the management of the Hospital fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, failure to prepare maintenance work plans and shortfalls in funds allocated for motor vehicle maintenance. There were salaries paid to Employees who had retired to the tune of UGX. 11,103,807. I noted Lack of Adequate Medical Equipment at the Regional Referral Hospital and + + + + +223 + + + + + + + + + + + + Non-Functioning Equipment. +6 Kamwenge DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 33% of the targets were fully achieved while 67% were partially achieved. The district collected 103% of its budgeted local revenue and received 94% of the funds expected from treasury while 58% of funds expected from external sources were received by year end. The district had unspent balances of UGX 4.87Bn which was sent back to treasury. The district had off-budget financing amounting to UGX 7,691,600 for the year contrary to the budget execution circular. Out of a sample of 24 outputs, all (100%) of them were fully quantified. Out of these quantified out-puts, 13 (54%) were fully implemented, while 11 (46%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 1 (25%) was submitted beyond the stipulated deadline. The district received a total of UGX 233,221,900 for Covid-19 interventions and all funds were utilised. However cash donations of UGX 7,691,600 were spent at source contrary to the Law. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy and shortfalls in funds allocated for motor vehicle maintenance. I noted that Rukunyu District Hospital faced challenges in delivery of services such as lack of adequate medical equipment, missing equipment like an x-ray machine which was the reason for about 90% of their referrals, non-functional controls at the hospital which increase the risk of distributing of expired drugs to patients; and under staffing where only 101 positions out of 185 approved positions filled leaving 84 vacant. There were also delayed works under UgIFT program particularly upgrade of Kanara and Kabambiro Health Centre IIs to Health Centre IIIs, Construction of Bwizi Seed School and upgrading of Kabingo Health Centre II to Health Centre III. +7 Kyenjojo DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 75% of the strategic targets were fully achieved, while 25% were not achieved at all. The district collected 100% of its budgeted local revenue and received 99.7% of the funds expected from treasury while 51% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1,408,538,651 which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 13 outputs, 8 (62%) were fully quantified, while 5 (38%) were not quantified at all. Out of the 8 quantified out-puts, 3 (38%) were fully implemented, 4 (50%) were partially implemented, while 1 (12%) was not implemented at all. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. All the four quarterly reports (100%) were submitted on time. I also noted cases of inaccurate reporting of performance. The district received a total of UGX. 245,530,300 for Covid-19 interventions and all funds were utilised. However UGX 2,770,000 was not banked but spent at source contrary to the Law. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. + + + + +224 + + + + + + + + + + + +  I noted that 13% of the district staff structure was not filled with key staff such as District Engineer, District Commercial Officer, and the Principle Human Resource (secretary for the District service commission).. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, failure to prepare maintenance work plans and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kyenjojo General District Hospital and Kyarusozi Health Centre IV had some non-functional, faulty and lacked adequate medical equipment in the maternal wards. There were also delayed works under UgIFT particularly upgrading of Myeri and Kyankaramata Health II to Health Centre IIIs, construction of Mparo Seed School. There was Non Compliance with Repayment Schedules of UWEP and YLP resulting in outstanding arrears of UGX. 339,650,004 and UGX. 1,891,041,915 respectively. +8 Bundibugyo DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 70% of the sampled targets were fully achieved, 30% were partially achieved The district collected 97% of its budgeted local revenue and received 96% of the funds expected from treasury while 99% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.6Bn which was sent back to treasury. All the sampled 10 outputs fully quantified. Out of the 10 quantified out-puts, 8 (80%) were fully implemented, and 2 (20%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. All the four quarterly reports were not submitted on time. I also noted cases of inaccurate reporting of performance. The district received a total of UGX 225,530,300 for Covid-19 interventions and all funds were utilised. I however noted that funds amounting to UGX 11,060,000 were diverted and spent on activities/items that were not related to the Covid-19 Interventions. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles with engine capacities beyond staff entitlements, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Bundibugyo District Hospital and Nyahuka Health Centre IV faced challenges in delivery of services such as lack of medical equipment, idle equipment, poor maintenance of available equipment. I noted challenges in Human resources management such as non-payment of employees’ salaries resulting into salary arrears, failure to fill vacant posts both at the District and the Lower Local Councils, appointment of staff in acting positions that had exceeded the required twelve months and recruitment of various staff without the requisite professional qualifications There were also delayed works under UgIFT particularly Upgrade of Tombwe Health centre II to Health centre III, Upgrade of Bundimulangya Health center II to Health center III and Construction of Kisubba Seed School. The district had challenges in the implementation of URF such as incomplete road works. +9 Kasese MCOpinion Unqualified  My review of the implementation of the 2015-2020 Strategic plan revealed that 25% of the sampled targets were fully achieved while 75% were partially achieved. The Municipal Council collected 93% of its budgeted local revenue and received + + + + +225 + + + + + + + + + + + + 102% of the funds expected from treasury while 89% of funds expected from external sources were received by year end. The Municipal Council had unspent balances of UGX 11,926,688,394 which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 19 outputs 12 (63%) were fully quantified while 7 (37%) were not quantified at all. Analysis of the 12 quantified outputs showed that 7 outputs were fully implemented, 3 outputs partially implemented and 2 outputs were not implemented. The Municipal Council did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, none (0%) was submitted on time. I also noted cases of inaccurate reporting of performance. The Municipal Council had outstanding payables of UGX. 480,634,141 by the end of the year. The Municipal Council had outstanding receivables of UGX. 429,131,834 by the end of the year and there was no evidence of effort by management to recover the funds. For the three financial years under review, the entity procured 1 vehicle worth UGX. 150,000,000. However, I noted weaknesses in management of the Municipal fleet including failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kilembe Mines Hospital and St. Paul Health Centre IV lacked adequate medical equipment and also had non-functioning equipment in the maternal ward. There were weaknesses in Garbage Management such as; failure to adhere to the Garbage Management by-laws and inadequate equipment and facilities for Garbage Collection and Disposal. The Municipal Council lacked an approved Urban Physical Development Plan (UPDP). I noted that the Municipality received surplus releases of USMID-MISG funds of UGX 8,016,313,805 but spent only UGX. 347,919,672 (1.7 %) and the balance of UGX. 19,982,341,133 was swept back to the UCF. I noted that there was underfunding in the Uganda Road Fund program. +10 Fort Portal MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 49% of the sampled targets were fully achieved, 29% were partially achieved while 22% were not achieved at all. The Municipal Council collected 69% of its budgeted local revenue and received 88.7% of the funds expected from treasury by year end. The Municipal Council had unspent balances of UGX. 4,700,925,555 which was sent back to treasury. All the 8 outputs sampled were fully quantified. Out of these quantified out-puts, 3 (38%) were fully implemented, while 5 (63%) were partially implemented. The Municipal Council prepared and submitted annual monitoring plans and quarterly performance reports. Out of four quarterly reports, none (0%) was submitted on time. The Municipal Council had outstanding payables of UGX. 590,127,836 by the end of the year. A detailed review of the financial statements revealed that out of the outstanding payables, UGX. 368,322,925 related to the previous financial years. The Municipal Council had long outstanding receivables of UGX. 123,283,000 by the end of the year and there was no evidence that management made any effort to enforce recoveries. There were no disclosures in the commentary of either the Accounting Officer or the Head of Finance to explain the effect of the Municipal’s change of status from a Municipal Council to a City. The Municipality had an outstanding balance of UGX.64, 263,566 of the District + + + + +226 + + + + + + + + + + + + Transport Revolving Fund (DTRF) that was used to acquire a vehicle from Ministry of Local Government. The figure was not recognized as a payable in the financial statement thus understating the payables Balance. The entity did not procure any vehicles in the three financial years under review. However, shortcomings were observed in the Municipal Council’s fleet management which included incomplete recording of motor vehicles in the assets register, lack of a fleet management policy, un-updated assets management module, failure to prepare maintenance work plans, failure to maintain proper vehicle movement log books and non-maintenance of motor vehicle service analysis records. I noted that Kataraka Health Centre IV lacked adequate medical equipment in the maternal ward. There were weaknesses in the Management of Garbage such as; Lack of by-laws on Garbage Management, non-adherence to Garbage Management by-laws and inadequate equipment and facilities for Garbage Collection and Disposal. I noted delays in accessing payroll for 17 staff newly recruited to the district, double payment of gratuity to two retirees amounting of UGX. 31,589,734 and over remittance of PAYE and other deductions to a tune of UGX.67,073,569. The Municipality had challenges in Physical Planning such as lack of an approved Urban Physical Development Plan (UPDP) and the detailed plans, Unauthorized Alteration of Physical Development Plan and lack of Development Permits in Support of on-going Physical Developments. +11 Bunyangabu DLGOpinion Unqualified  My review of the implementation of the 2015-2020 Strategic plan revealed that 50% of the sampled targets were fully achieved, 17% were partially achieved while 33% were not achieved at all. The district collected 0.02% of its budgeted local revenue and received 100% of the funds expected from treasury while 28% of funds expected from external sources were received by year end. The district had unspent balances of UGX 710,250,025 which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 14 outputs, 10 (71%) were fully quantified while 4 (29%) were not quantified at all. Out of the 10 quantified out-puts, 8 (80%) were fully implemented while 2 (20%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, none (0%) were submitted on time. I also noted cases of inaccurate reporting of performance. The district received a total of UGX 250,299,000 for Covid-19 interventions and all funds were utilised. I however noted that funds amounting to UGX 4,720,700 were spent at source contrary to the Law. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. 63 positions (46%) of the district staff structure was not filled with key staff of which some were at senior level. I noted that except for Kiyombya Seed Secondary school, the District lacks land titles for all its land including land for its headquarters which exposes District land to a risk of encroachment and land disputes which may result into property loss. Shortcomings were observed in the District’s fleet management which included incomplete recording of motor vehicles in the assets register, un-updated assets management module, lack of a fleet management policy and guidelines, failure to maintain proper vehicle movement log books, absence of annual motor vehicle inspections and non-maintenance of motor vehicle service analysis records. I noted that Kibito Health Centre IV faced challenges in delivery of services such as lack of adequate medical equipment, non-functional and faulty equipment. + + + + +227 + + + + + + + + + + + +  An audit of Payroll Management (Pension and Salary) revealed that there were missing personal files for some staff employed by the District. There were also delayed works and inadequate contract supervision and monitoring under UgIFT particularly upgrade of Kabahango Health Centre II to Health Centre III and the Construction of Kiyombya Seed Secondary School. +12 Kitagwenda DLGOpinion Unqualified  The district collected 47.5% of its budgeted local revenue and received 100% of the funds expected from treasury, 72 % expected from other government units and 34% of funds expected from external sources were received by year end. The district had unspent balances of UGX 2.36Bn which was sent back to treasury. I sampled 6 outputs with 21 activities worth UGX. 0.191Bn representing 70% of the total resources spent on implementation of activities and noted that all the outputs were quantified. Of the 21 quantified activities worth UGX. 0.191Bn assessed; 12 activities were fully implemented while 9 activities were partially implemented. The district did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20 Three quarterly performance reports were submitted after the deadline of the quarterly deadline. The district received UGX 185M for Covid interventions and the funds were fully utilized. I noted that items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. I noted that the District did not have titles to its various parcels of land in different parts of the district which exposed the land to loss and encroachment The entity procured one vehicle in the last three years and all the necessary procedures were followed. However, there were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy and shortfalls in funds allocated for motor vehicle maintenance. Ntara Health Center IV is faced challenges in delivery of services such as lack of medical equipment, idle equipment, poor maintenance of available equipment. A number of senior positions like District Land Officer, District Surveyor, District Valuer, and District Registrar of titles have not yet been filled and there is evidence of efforts to have them filled. + GULU BRANCH +1 Agago DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 19% of the sampled targets were fully achieved, 74% were partially achieved while 7% were not done at all. The district collected 63% of its budgeted local revenue and received 98% of the funds expected from treasury, 51% of transfers from other Government Units was received while 63% of funds expected from external sources were received by year end. The district had unspent balances of UGX 2.920Bn which was sent back to treasury. I noted that the entity received off-budget financing to a tune of UGX.0.113Bn which was not paid into the consolidated fund as required by the law. I noted that Out of a sample of 10 outputs all 10(100%) were fully quantified. Out of 10 quantified out puts, 5(50%) were fully implemented and 5 (50%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted to MoFPED, MoLG and NPA. Out of four quarterly reports, only 2 (50%) was submitted on time. I also noted 2 cases of inaccurate reporting of performance. + + + + +228 + + + + + + + + + + + +  I noted a total of COVID-19 intervention receipts worth UGX.165M and UGX.157,016,684 was utilised representing absorption level of 95%. I noted weakness in the management of the intervention such as; failure to account for funds amounting to UGX 23.96m, and 93% partial implementation of planned activities The entity received in-kind donations (items) from a number of sources; however, all the items were not valued as required by the Treasury Instructions. I noted that the district had outstanding payables of UGX.1.221Bn by the end of the year. I noted that the entity had accounts receivables amounting to UGX.1.421Bn by year end. I noted that expenditure amounting to UGX.25.7M remained unaccounted for.  I noted a staffing gap of 46% of the approved staff structure of 2,536 positions. There were weaknesses in the management of the districts fleet including; no evidence to confirm that vehicle inspections and reconciliations were carried out regularly and that the assets register was duly updated. I noted incomplete works of the upgrade of Lapirin Health Center II to III(under the UgIFT Project), construction of Lapono Seed Secondary School and upgrade of Omot HCII and Layita HC II to Health Centre IIIs. +2 Lamwo DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 55.6% of the strategic objectives were fully achieved and 44.4% were partially achieved. The district collected 85.6% of its budgeted local revenue and received 101.6% of the funds expected from treasury, 76% of transfers from other government units and 35.5% of funds expected from external sources were received by year end. The district had unspent balances of UGX 5.1Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 11 outputs 10 (91%) expenditure worth UGX.2.7Bn were fully quantified and 1 (9%) worth UGX.0.53Bn was insufficiently quantified. Out of the 10 quantified out-puts, 8 (80%) worth UGX.0.82Bn were fully implemented, while 2 (20%) worth UGX.1.88Bn were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted to MoFPED, MoLG and NPA. The district received UGX.0.287Bn for Covid interventions and UGX.0.189Bn was utilized out of which UGX.1.5M was spent at source and the unspent balance was swept to UCF. I noted weakness in the management of the intervention such as; insufficiently quantified (86% quantification) work plans. I did not undertake procedures to ascertain how the quarantine center was managed at Padibe HC IV and Lokung due to lack of PPE for preventive purposes. The district has outstanding payables worth UGX 0.113Bn which relate to previous financial years. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general and failure to prepare a maintenance work plan to guide vehicle maintenance initiatives. I noted that Madi Opei HC IV no equipment maintenance policy. There were also delayed works under UGFIT particularly at Katum health center III I noted that the district received UGX 0.563Bn (76.9%) of the budgeted URF funds and utilized 100% of the funds received. +3 Amuru DLG  My review of the implementation of the 2015-2020 strategic plan revealed that 87% of the strategic objectives were fully achieved, 4.3% were partially achieved + + + + +229 + + + + + + + + + + + + Opinion Unqualified while 8.7% were not achieved at all. The district collected 98% of its budgeted local revenue and received 108.3% of the funds expected from treasury, 49% of transfers from other government units was received and 26% of funds expected from external sources were received by year end. The district had unspent balances of UGX 0.26Bn which was sent back to treasury. All 13 sampled outputs (100%) were fully quantified. Out of the 13 quantified out- puts, 6 (46.1%) worth UGX 0.61Bn were fully implemented, while 5 (38.5%) worth UGX.1.48Bn were partially implemented and 2 (15.4%) were not implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. All quarterly performance reports were not availed. The district received UGX 0.238Bn for Covid-19 interventions and UGX 0.228Bn was utilized leaving unspent balance UGX.0.010Bn in the bank. I noted weakness in the management of the intervention such as; inadequate quantification of activities and failure to avail information for assessment implementation of planned activities. I note that items received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. I did not undertake procedures to ascertain how the quarantine centre was managed at Pabbo S.S due to lack of PPE. The district had outstanding payables worth UGX 1.588Bn which relates to previous financial years. The district has long outstanding receivables amounting to UGX 1.290Bn relating to advances under the YLP and UWEP Programmes. I noted a staffing gap of 36% with key staff such as district engineer missing There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy and failure to prepare a maintenance work plan to guide vehicle maintenance initiatives. I noted advances to individual staff personal bank accounts worth UGX.0.269Bn to implement several council activities instead of directly paying the eligible suppliers and service providers. I noted that Atiak HC IV faced challenges in delivery of services such as lack of medical equipment and poor maintenance of available equipment. +4 Gulu DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 33% of the sampled targets were fully achieved and 67% were partially achieved. The district collected 97% of its budgeted local revenue and received 94% of the funds expected from treasury, 82% transfers from other Government Units was received while 23% of funds expected from external sources were received by year end. The district had unspent balances of UGX 2.9Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 11 outputs 11 (100%) were fully quantified. Out of the 11 quantified out-puts, 8 (73%) were fully implemented, while 3 (27%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted to MoFPED, MoLG and NPA. Out of four quarterly reports, none was submitted on time. The district received UGX.252.5M for Covid interventions and UGX 212.5million was utilized of which UGX.27.5m was used at source contrary to the Law. + + + + +230 + + + + + + + + + + + + UGX.40m was sent to UCF.  I noted that as a result of creation of Gulu city the district headquarters would relocate which may require a big cost.  I noted an outstanding amount of payable of the district worth UGX.1.471Bn by year end.  I noted a staffing gap of 32% with key staff such as district engineer missing.  There were weaknesses in the management of the districts fleet including; absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance.  I noted that Awach HC IV faced a challenge of lack of medical equipment.  There were also delayed works under UGFIT particularly at Palaro Seed School. +5 Kwania DLGOpinion Unqualified  I noted that Kwania DLG did not have a strategic plan since it has been in existence for only 2 years. The district collected 54% of its budgeted local revenue and received 105% of the funds expected from treasury, 67% of transfers from other Government Units was received while 34% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.8Bn which was sent back to treasury. All the 9 outputs sampled worth UGX.2.6Bn were fully quantified and fully implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted to MoFPED, MoLG and NPA. Out of four quarterly reports, only 1 (25%) was submitted on time. The district received UGX. 185M for Covid interventions and UGX. 165million was utilized while the unspent balance of UGX 20m from the area Member of Parliament was sent back to treasury. I noted that Items received in Kind for Covid-19 interventions were not valued and there was no evidence of quality checks before distribution. I noted that the entity had an outstanding receivables amount worth UGX.0.175Bn at year end. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, absence of fleet management policy and shortfalls in funds allocated for motor vehicle maintenance. I noted that Aduku health centre IV faced a challenge of inadequate medical equipment. +6 Kole DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that none of the sampled targets were fully achieved, 37.5% were partially achieved while 37.5% were not achieved at all. The district collected 67% of its budgeted local revenue and received 100 % of the funds expected from treasury, 57% was received from transfers from other Government Units while 84 % of funds expected from external sources were received by year end. The district had off-budget financing amounting to UGX.113M for the year contrary to the budget execution circular I noted that out of a sample of 16 outputs, all 16 (100%) were fully quantified, Out of the 16 quantified out-puts, 8 (50%) were fully implemented, while 8 (50%) were partially implemented. I noted that out of four quarterly reports, only 3 (75%) were submitted on time. The district received UGX 226M for Covid-19 interventions and UGX 166M was utilized of which UGX 0.5M was used at source contrary to the Law while UGX 60M was sent to the UCF. I noted weakness in the management of the intervention such as; lack of work + + + + +231 + + + + + + + + + + + + plans and irregularities in procurements of items, Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. I noted that Payables amounting to UGX 0.861Bn remained outstanding at year end. I noted staffing gaps of 14 % of the district staff structure of 1931 positions. I noted UGX.0.371Bn was advanced to individual staff personal bank accounts to implement several council activities instead of directly paying the eligible suppliers and service providers. There were weaknesses in the management of the districts fleet including; failure to capture in the fixed assets module of the GFMIS, failure to record vehicles in the format as prescribed by the Accountant General, absence of fleet management policy, inadequate vehicle inspections and shortfalls in funds allocated for motor vehicle maintenance. I noted that Aboke health center IV faced challenges in delivery of services such as inadequate medical equipment, idle equipment and poor maintenance of available equipment. I noted that salary Payments UGX.299.9M was made outside the payroll. I also observed that many of the district roads such as; Arekapin – Ogwangagder road and Bung health center-Lira boarder road, etc, were in poor condition with broken culvert lines and poor road surfaces. +7 Oyam DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 100% of the sampled targets were partially achieved. The district collected 56% of its budgeted local revenue and received 100% of the funds expected from treasury, 39% of transfers from other Government Units was received while 73% of funds expected from external sources were received by year end. The district had unspent balances of UGX 0.669Bn which was sent back to treasury. I noted a challenge in quantification of out-puts which affects assessment of performance. Out of a sample of 10 outputs 4 (40%) were fully quantified, 5 (50%) were insufficiently quantified while 1 (10%) was not quantified at all. All the 4 quantified out-puts (100%) were fully implemented,. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted to MoFPED, MoLG and NPA. Out of four quarterly reports, none was submitted on time. I also noted 2 cases of inaccurate reporting of performance. The district received UGX 176M for Covid-19 interventions and UGX 176M was utilized out of which UGX 10.5m were used at source contrary to the Law. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. The District had outstanding payables of UGX 144M, non-quantifiable liabilities relating to ongoing cases against the District as at year end. I noted long outstanding receivables amounting to UGX 1.160Bn at the close of the financial year. I Noted staffing gaps of 21% with key staff such as district engineer missing. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, non- allocation of vehicles to key departments, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Anyeke HCIV faced challenges in delivery of services such as lack of medical equipment, idle equipment, and poor maintenance of available + + + + +232 + + + + + + + + + + + + equipment. There were also delayed works under UgIFT particularly at Atura HCII, Ariba HCII, Loro HCII and Iceme health center II. +8 Lira DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 40% of the sampled targets were fully achieved, 53% were partially achieved while 7% were not achieved at all. The district collected 62% of its budgeted local revenue and received 96% of the funds expected from treasury, 32% of transfers from other Government Units was received while 9.6% of funds expected from external sources were received by year end. The district had unspent balances of UGX 0.381Bn which was swept back to treasury. The district had off-budget financing amounting to UGX 0.555Bn for the year contrary to the budget execution circular. I noted a challenge in quantification of out-puts which affects assessment of performance. Out of a sample of 15 outputs 9 (60%) worth UGX.7.9Bn were fully quantified, 2 (13%) worth UGX.2.8Bn were insufficiently quantified while 4 (27%) worth UGX.1.6Bn were not quantified at all. Out of the 9 quantified out-puts, 5 (56%) worth UGX.6.1Bn were fully implemented, while 4 (44%) worth UGX.1.8Bn were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted to MoFPED, MoLG and NPA. Out of four quarterly reports, only 1 (25%) were submitted on time. I also noted 2 cases of inaccurate reporting of performance. The district received UGX 0.166Bn for Covid interventions and UGX 0.145Bn was utilized while UGX 0.021Bn was swept back. I noted weakness in the management of the intervention such as; irregularities in procurements of items. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were also challenges in management of quarantine centers for instance lack of PPE for health workers. I noted staffing gaps of 27% with key staff such as district engineer missing There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequate allocation of vehicles to key departments and shortfalls in funds allocated for motor vehicle maintenance. I noted that Amach HCIV faced challenges in delivery of services such as lack of medical equipment, idle equipment and poor maintenance of available equipment. There were also delayed works under UGFIT particularly at Agali Seed Secondary School. I noted that a number of the District roads under URF had deteriorated and had become impassable. There were delays in submission of performance reports to URF, Out of four quarterly reports 2(50%) were not submitted on time. I noted that five NUSAF3 projects worth UGX 0.228Bn were not implemented due to withholding of funds by MoFPED over accusation of mismanagement of funds during 2017/2018 FY. +9 Kitgum DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that all the sampled 9(100%) strategic targets were partially achieved The district collected 13% of its budgeted local revenue and received 101% of the funds expected from treasury while 4.7% of funds expected from external sources were received by year end. The district had no unspent balances. I noted that all the 6 (100%) outputs sampled were fully quantified. Out of the 6 quantified out-puts, 3(50%) worth UGX.1.98Bn were fully implemented, while + + + + +233 + + + + + + + + + + + + 2(33%) worth UGX.2.3Bn were partially implemented and 1(17%) was not implemented at all. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 2 (50%) were submitted on time. The district received UGX 0.243Bn for Covid interventions and UGX 0.183Bn was utilized of which UGX.0.018Bn cash receipts were spent at source. UGX 0.060Bn from the area members of parliament was returned to treasury I noted that Items received in Kind were not valued and there was no evidence of quality checks before distribution. I noted that the district had outstanding payables of UGX1.4Bn by year end.  I noted that the district had outstanding receivables of UGX.1.2Bn as at year end. There was also a quantifiable contingent liability relating to legal proceedings provided at UGX.0.500Bn The district had unaccounted for funds amounting to UGX.0.032Bn It noted that the council incurred wasteful expenditure worth UGX.0.014Bn in respect of court cases and compensations. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kitgum General Hospital faced challenges in delivery of services such as lack of medical equipment and poor maintenance of available equipment. +10 Apac DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 52% of the sampled targets were fully achieved, 26% were partially achieved while 22% were not achieved at all. The district collected 99% of its budgeted local revenue and received 95% of the funds expected from treasury, 26% was received from transfers from other Government Units while 98.8% of funds expected from external assistance sources were received by year end. All the 8 outputs sampled for assessment with a total expenditure of UGX.6.23Bn were fully quantified. out of 8 outputs 5(62.5%) worth UGX.1.198Bn were fully implemented and 3 (37.5%) outputs worth UGX.5.035Bn were partially implemented. The entity did not prepare and submit the annual monitoring plans to MoFPED, MoLG and NPA. I noted that all four quarterly performance reports were delayed on submission. I also noted 5 cases of inaccurate reporting of performance The district received a total of UGX 167M for COVID interventions and UGX. 167M was utilized out of which UGX 2.4M was used at source contrary to the Law from two sources donations. The COVID funds were spent on items that had been provided for and approved by the Covid-19 task force. I noted that all in-kind donations (items) were not valued as required by the Treasury Instructions. I noted an outstanding receivables amount of UGX.1.602Bn by year end.  I noted non-quantifiable contingent liabilities relating to 4 court cases. I noted a staffing gap of 16% at the District with key staff such as district engineer missing There were weaknesses in the management of the districts fleet including; failure to record vehicles in the format prescribed by Accountant general, no evidence of regular inspection and reconciliation of vehicles in the assets register, absence of fleet management policy, inadequate allocation of vehicles and shortfalls in funds allocated for motor vehicle maintenance. I noted that Apac District Hospital faced a challenge of lack of adequate medical + + + + +234 + + + + + + + + + + + + equipment  My review of UgIFT revealed 83% excess release of funds in respect of the upgrade of Olelpek Health Centre II to III.  I noted 5 payroll payments worth UGX.0.113Bn without supporting documents.  I noted 6 district staff were paid salaries at unusually higher salary amounts worth UGX. 0.8m. +11 Apac MCOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 25% of the sampled targets were fully achieved, 31.25% were partially achieved while 43.75 % were not achieved at all. The Municipal collected 70% of its budgeted local revenue and received 81% of the funds expected from treasury, 65% performance from transfers from other Government units. The municipal had unspent balances of UGX 5.136Bn which was sent back to treasury. I noted that all the sampled 7 outputs (100%) were quantified, Out of which 5 (71%) were fully implemented, while 2 (29%) were partially implemented. I noted that out of the four quarterly reports, only 3 (75%) were submitted on time. The municipal had outstanding payables amounting to UGX.0.076Bn of which UGX.0.072Bn relate to the previous financial years. I noted outstanding receivables amount worth UGX. 0.220Bn at year end. I noted a recovery of Irregular payments amounting to UGX.0.492Bn which had been made to two fraudulent companies. I noted a staffing gap of 30% of the approved municipal staff structure of 84 staff, with position such as; Municipal engineer, Senior Physical Planner, Surveyor, Senior Inspector of schools, Medical Officer of Health Services and Principal Commercial Officer remaining vacant. There were weaknesses in the management of the municipals fleet including; lack of fleet management policy and guidelines plus inadequate allocation of vehicles to the municipal departments I noted instances of Non-Adherence to Garbage Management by-laws, Inadequate Funding for Garbage Management, Inadequate Equipment and facilities for Garbage collection and Lack of protective wear for the casual workers I noted that the municipal did not have an approved physical development plan, Detailed Plans and the municipal physical planning committee failed to convene quarterly review meetings. +12 Pader DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 23% of the sampled targets were fully achieved, 77% were partially achieved. The district collected 43% of its budgeted local revenue and received 111.6% of the funds expected from treasury, 28% was received from transfers from other Government Units while 7.4% of funds expected from external sources were received by year end. The district had unspent balances of UGX 0.211Bn which was sent back to treasury. The district had off-budget financing amounting to UGX 113M for the year contrary to the budget execution circular. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 15 outputs, 13 (87%) were fully quantified and 2 (13%) were insufficiently quantified. Out of the 13 quantified out-puts, 7 (54%) were fully implemented, while 6 (46%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted to MoFPED, MoLG and NPA. Out of four quarterly reports, only 1 (25%) was submitted on time. I also noted 2 cases of inaccurate reporting of performance. The district received UGX 206.6M for Covid-19 interventions and UGX 118.8M was + + + + +235 + + + + + + + + + + + + utilized. UGX. 87.7M was swept to the consolidated fund. I noted no weakness in the management of the intervention such as; partial implementation of planed activities. I noted that the district had outstanding payables worth UGX.1.151Bn at year end.  I noted an outstanding receivables amount of UGX.0.933Bn by year end. I noted quantifiable contingent liabilities relating to legal proceeding provided at UGX.0.344Bn. I noted a staffing gap of 44.5% with key staff such as Chief Finance Officer, Principal Human Resource Officer, District Planner, District Educational Officer, District Community Development Officer, District Natural Resources Officer, District Production Officer, District Health Officer and District Commercial Officer missing The District had unaccounted for advances amounting to UGX 77.5M The District has a special investigation relating to Diversion of funds for pensioners of which UGX 158,159,645 was paid to URA and UGX 291,290,573 transferred to Uganda Consolidated fund though no acknowledgment receipt was availed. There were weaknesses in the management of the districts fleet including; acquisition of a motor vehicle without clearance, absence of fleet management policy, no allocation of vehicles to service centres, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Pajule HC IV faced challenges in delivery of services such as lack of medical equipment, idle equipment and poor maintenance of available equipment. I noted delays in accessing payroll for 23 newly recruited and transferred staff to the district. +13 Nwoya DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 25% of the sampled targets were fully achieved while 75% were partially achieved. The district collected 42.36% of its budgeted local revenue and received 98% of the funds expected from treasury, 85% of transfers from other Government Units was received while 11.5% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.6Bn which was swept back to treasury. The district had off-budget financing amounting to UGX 0.301Bn for the year contrary to the budget execution circular I noted that all 11 outputs in the sample were quantified. Out of the 11 quantified out-puts, 2 (18.2%) worth UGX 0.231Bn were fully implemented, while 6 (54.5 %) worth UGX 0.326Bn were partially implemented. 3 (27.3%) were not implemented at all. Out of four quarterly reports, only 2 (50%) were submitted on time. I also noted 4 cases of inaccurate reporting of performance. The district received UGX 0.165Bn for Covid-19 interventions and UGX 0.145Bn (88%) was utilized and the balance of UGX 0.019Bn was sent to the UCF. There were also challenges in management of quarantine centers such as improper maintenance and lack of beddings. I noted that the district had payables amounting to UGX.0.392Bn by year end of which UGX. 0.258Bn relates to previous years. I noted that the district had outstanding receivables worth UGX.1.038Bn comprising of YLP, UWEP and staff advances. I noted non-quantifiable contingent liabilities relating to court cases dating as far as 2015. I noted a staffing gap of 40% of the district approved staff structure. There were weaknesses in the management of the district fleet that included; lack of funds for vehicle acquisitions, Absence of fleet management policy, allocation of + + + + +236 + + + + + + + + + + + + vehicles with engine capacities beyond staff entitlements, inadequate motor vehicle allocations and shortfalls in funds allocated for motor vehicle maintenance. I noted that Anaka hospital faced challenges in delivery of services such as inadequate medical equipment, idle equipment, poor maintenance of available equipment, nonfunctional and idle medical equipment There were also delayed works under UGFIT particularly at Lungulu seed school and Paraa health center 111 and un-commissioned facilities at LII health center I noted poor conditions of district roads including; Koch Goma-Lii Road 38kms and sections of Kona lutuk -Agung Road. +14 Gulu MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 66.7% of the strategic objectives were fully achieved and 33.3% were partially achieved. The municipal collected 29% of its budgeted local revenue and received 86.3% of the funds expected from treasury while 69% of transfers from other government units were received by year end. The district had unspent balances of UGX 11Bn which was sent back to treasury. I noted a challenge in quantification of out-puts which affects assessment of performance. Out of a sample of 11 outputs 10 (91%) were fully quantified, none was insufficiently quantified while 1 (9%) was not quantified at all. Out of the 10 quantified out-puts, 6 (60%) were fully implemented, while 4 (40%) were partially implemented. The municipal did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Submission of all the 4 quarterly performance reports was delayed. I noted that necessary disclosures were not made in relation to change of status to a city effective 1/7/2020. I noted that the municipal council has outstanding payables worth UGX 0.446Bn which relate to previous financial years. I noted that the municipal disclosed 10 court cases in the statement of non- quantifiable contingent liabilities. I noted that the municipal has long outstanding receivables worth UGX 4.312Bn by year end. I noted a staffing gap of 23% with key staff such as senior environment officer, land supervisor and senior veterinary officer missing There were weaknesses in the management of the municipal’s fleet including; failure to record vehicles in the format prescribed by Accountant general, absence of fleet management policy and allocation of vehicles with engine capacities beyond staff entitlements.. There were weaknesses in garbage management including; lack of by-laws on garbage management, non-maintenance of records on garbage generated, inadequate public awareness and sensitization, inadequate garbage collection and disposal equipment and lack of protective wear. There were weaknesses in existence and implementation of urban physical development plan including; Lack of detailed plans for Bardege and Laroo divisions, inadequate funding of detailed plans and lack of development permits in support of on-going physical developments. I noted that the municipal received UGX 0.329Bn (65%) out of the budgeted amount under USMID Municipal Institutional Strengthening grant and UGX 0.107Bn (32.6%) remained unspent and returned to UCF. +15 Gulu RRHOpinion Qualified  My review of the implementation of the 2015-2020 strategic plan revealed that 100% of the strategic objectives were fully achieved. The hospital collected 57% of its budgeted NTR and received 91% of the funds expected from treasury. The hospital had unspent balances of UGX 297M which + + + + +237 + + + + + + + + + + + + was sent back to treasury. I noted a challenge in quantification of outputs which affects assessment of performance. Out of a sample of 9 outputs, 8 (89%) were fully quantified while 1 (11%) was not quantified at all. Out of the 8 quantified out-puts, 4 (50%) were fully implemented, while 4 (50%) were partially implemented. The hospital did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted to MoFPED and NPA. I noted 4 cases of inaccuracies in the information reported in the quarterly performance reports. The hospital received UGX 270M for Covid-19 interventions and I was limited to ascertain details relating to utilization of these funds, extent of quantification of outputs, preparation and approval of work plans and compliance with procurement regulations could not be ascertained since all accountabilities and documents relating to COVID 19 funds had been submitted to Ministry of health by the time of the audit. I did not undertake procedures to ascertain how the quarantine centre was managed at Gulu School of clinical officers because by the time of the audit, the quarantine centre was closed and not operational. The hospital had outstanding payables worth UGX 76M that relate to previous financial years. The hospital also had pension liability worth UGX 0.145Bn. I noted staffing gaps of 32.2% with key staff such as Senior consultant (medicine), Senior Consultant (Pediatrics), Senior consultant (surgery), Principal Anaesthetic officer, Principal Orthopedic officer, Principal Occupational Therapist missing There were weaknesses in the management of the hospital’s fleet including; failure to record vehicles in the format prescribed by Accountant general, absence of fleet management policy and allocation of vehicles with engine capacities beyond staff entitlements. I noted that GRRH had inadequate medical equipment and broken equipment. +16 Kitgum MCOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 33.33.% of the sampled targets were fully achieved, 33.33% were partially achieved while 33.33% were not achieved at all. The Municipal Council collected 41 % of its budgeted local revenue and received 82% of the funds expected from treasury, received 45% from transfers from other Government Units while 0% of funds expected from external sources were received by year end. The Municipal Council had unspent balances of UGX 5.762Bn which was sent back to treasury. I noted a challenge in quantification of out-puts which affects assessment of performance. Out of a sample of 7 outputs 2 (29%) were fully quantified, 1 (14%) was insufficiently quantified while 4 (33%) were not quantified at all. Out of the 2 quantified out-puts, 1 (50%) was fully implemented, while 1 (50%) was partially implemented. The Municipal Council did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted to MoFPED, MoLG and NPA. Out of four quarterly reports, none was submitted on time. I also noted 3 cases of inaccurate reporting of performance. The Municipal Council had outstanding payables of UGX 609M and non- quantifiable liabilities of 8 ongoing cases against the Municipal Council. I noted outstanding receivables amounting to UGX 599M at the close of the financial year. I noted staffing gaps of 49% with key staff such as Principal Treasurer missing. The Municipal Council lacked land titles for the 37 pieces of land and properties owned in different locations which exposed the land to loss and encroachment. There were weaknesses in the management of the Municipal Councils fleet + + + + +238 + + + + + + + + + + + + including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, non- allocation of vehicles to departments and shortfalls in funds allocated for motor vehicle maintenance. There were weaknesses in garbage management including; inadequate funding (20.45%) of the budgeted) for garbage, Lack of adequate equipment and facilities for garbage collection and disposal and 6 garbage skips remained idle due to lack of skip loaders. I noted that the Municipality did not have an up to date approved urban physical development plan and detailed plans to facilitate physical developments, lacked adequate funding of the detailed plans of the Physical Development Plan activities. I noted the underfunding of Uganda Road Fund programme UGX.144,823,628 (27%). I also noted that Out of four quarterly reports 1(25%) were submitted on time, 1(25%) was not submitted on time while 2 (50%) lacked evidence of submission. I noted that Pandwong HCIII constructed under UGFIT was operating with limited staff and inadequate medical equipment. +17 Omoro DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 25% of the sampled targets were fully achieved, while 75% were partially achieved. The district collected 61% of its budgeted local revenue and received 102.5% of the funds expected from treasury, 65% of transfers from other Government Units was received while 22% of funds expected from external sources were received by year end. The district had unspent balances of UGX 0.866Bn which was sent back to treasury. I noted that Out of a sample of 20 outputs, 18(90%) were fully quantified, while 2(10%) were partially quantified. Out of 18 quantified out puts, 7(39%) were fully implemented and 11 (61%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted to MoFPED, MoLG and NPA. Out of four quarterly reports, none was submitted on time. I also noted 1 case of inaccurate reporting of performance. The district received UGX 0.229Bn for Covid-19 interventions and UGX 0.169Bn was utilized of which UGX. 3.8M was spent at source. UGX 60M was unspent and was sent back to UCF. I noted management weakness of none implementation of 3 planned activities under the intervention work plan. I noted unrecovered local revenue advance to the district worth UGX.105.8M by treasury. I noted that the district had outstanding payables of UGX.41.9Mn by the end of the year. I noted that the entity had accounts receivables amounting to UGX.1.309Bn by year end. I noted a staffing gap of 47% of the approved staff structure of 137 positions, with key positions including that of District Engineer, Senior Human Resource Officer and District Commercial Officer vacant. There were weaknesses in the management of the districts fleet including; Vehicles not recorded in the format prescribed by the Accountant General, no evidence to confirm that vehicle inspections and reconciliations were carried out regularly, lack of a fleet management policy, inadequate allocation of vehicles for service delivery and inadequate funding of vehicle maintenance. I noted that Lalogi HCIV faced challenges in delivery of services such as lack of adequate medical equipment, idle equipment and poor maintenance of available equipment. I noted variations above 15% in construction works of district administration + + + + +239 + + + + + + + + + + + + block. I noted anomalies in the implementation of UgIFT 2019/20120 project such as; low absorption of funds 83%, delayed implementation of construction works and construction on un surveyed land. I also noted un approved change in construction materials specification by the contractor. +18 Alebtong DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that all 7 strategic targets (100%) of the district’s strategic targets were partially implemented. The district collected 84% of its budgeted local revenue and received 99% of the funds expected from treasury while 46% of funds expected from external sources were received by year end. The district had unspent balances of UGX 0.8Bn which was sent back to treasury. The district did not receive any off-budget financing during the year under review. All the 10 outputs sampled were fully quantified. Out of the 10 quantified out- puts, 5 (50%) worth UGX 1.8Bn were fully implemented, while 5 (50%) worth UGX 1.7Bn were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, all 4 (100%) were not submitted on time. I also noted one (1) case of inaccurate reporting of performance. The district received UGX 0.228Bn for Covid interventions and UGX 0.168Bn was utilized out of which UGX 2.5m was used at source contrary to the Law while UGX.0.060Bn remained unspent and transferred to the consolidated fund. I noted weakness in the management of the intervention such as; failure to account for funds amounting to UGX 8.9million. I noted that Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. The district had outstanding payables worth UGX.0.050Bn and outstanding pension liabilities of UGX.0.016Bn by year end. The district had unaccounted for staff advances worth UGX.0.055Bn. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Alebtong health centre IV faced challenges in delivery of services such as lack of medical equipment and idle equipment. There were also delayed works under UGFIT particularly at Awei and Angetta HC II. I noted that the district made payments for incomplete works worth UGX.1.121Bn. I noted that the district made irregular retention payments worth UGX.0.078Bn before completion and expiry of the defects liability period. I noted that the district made irregular contract variations (17%) in relation to the construction of the low cost sealing of Kaguta Avenue. +19 Lira MCOpinion Unqualified  My review of the implementation of the 2015-2020 Strategic Plan revealed that 41% of the sampled targets were fully achieved, 20% were partially achieved while 39% were not achieved at all. The municipality collected 95% of its budgeted local revenue and received 100% of the funds expected from treasury, 100% of funds expected from transfers from other Government Units while 0% was received from external sources by year end. The municipality had unspent balances of UGX.8.944Bn which was sent back to treasury. I noted that all the 4 sampled outputs were quantified, out of which 1 (25%) was fully implemented, while 3 (75%) were partially implemented. The municipality did not prepare and submit annual monitoring plans to to + + + + +240 + + + + + + + + + + + + MoFPED, MoLG and NPA. Out of the four quarterly reports, none was submitted on time. I also noted 1 case of inaccurate reporting of performance. The municipality did not disclose change of status from Municipal Council to a City, in its financial statements. The municipality had outstanding payables balance of UGX.0.783Bn by year end. I also noted non-quantifiable contingent liabilities related to 9 court cases. I noted that the municipality had outstanding receivables worth UGX.0.501 by year end. There were weaknesses in the management of the municipality fleet including; failure to post vehicles onto the Asset Management Module in the Integrated Financial Management System (IFMS), lack of evidence of regular inspection and reconciliation of vehicles in the assets register, absence of a fleet management policy, inadequate allocation of vehicles, and shortfalls in funds allocated for motor vehicle maintenance. I noted weaknesses in the management of garbage including; Inadequate allocation of funds for garbage management and lack of adequate number of equipment for garbage collection. There were weaknesses in the implementation of urban physical development plans including; Inadequate funding of the Physical Development Plan Activities and failure to issue Development Permits in support of on-going Physical Developments. I noted a 42% funding gap in the USMID-ISG funds. +20 Lira RRHOpinion Unqualified  My review of the implementation of the 2015-2020 Strategic Plan revealed that 36.4% of the sampled targets were fully achieved, 36.4% were partially achieved while 27.2% were not achieved at all. The Hospital collected 96% of its budgeted local revenue and received 92% of the funds expected from treasury. The Hospital had unspent balance of UGX.0.108Bn which was sent back to treasury. The Hospital had off-budget financing amounting to UGX.30M for the year contrary to the budget execution circular. I noted that all the 9 sampled outputs were quantified, out of which 2 (22%) were fully implemented while 7 (78%) were partially implemented The Hospital received UGX.270M for Covid-19 interventions and UGX.197million was utilized out of which UGX.21M was incurred in the construction of a waste management pit, an activity that had not been provided for in the COVID-19 work plan. The covid-19 items that were received in Kind were not valued.  I noted a staffing gap of 28% with key staff such as medical consultants missing. I not that there was no evidence of regular inspection and reconciliation of the hospital fleet (vehicles) in the assets register. I noted that Lira Regional Referral Hospital faced a major challenge in delivery of services due to lack of adequate medical equipment. + HOIMA BRANCH +1 Buliisa DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 0% of the sampled targets were fully achieved, 100% were partially achieved while 0% were not achieved at all. The district collected 79% of its budgeted local revenue and received 100% of the funds expected from treasury while 49% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.1Bn which was sent back to treasury. The district had off-budget financing amounting to UGX 841M for the year contrary to the budget execution circular All the 10 sampled outputs 10 (100%) were fully quantified. Out of the 10 + + + + +241 + + + + + + + + + + + + quantified out-puts, 1 (10%) was fully implemented, while 9 (90%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for all the 4 quarters were also submitted beyond deadlines. I also noted cases of inaccurate reporting of performance The district received UGX 270M for Covid interventions and UGX 159 million was utilized. UGX 45m remained on the District bank account at the end of the year. I noted weakness in the management of the intervention such as; irregularities in procurements of items. I noted Assets destroyed by floods during the year  UGX.69,577,150 remained unaccounted for at the close of the financial year. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, failure to maintain fuel registers, non-maintenance of motor vehicle service analysis records and shortfalls in funds allocated for motor vehicle maintenance. I noted that Buliisa hospital faced challenges in delivery of services such as lack of adequate medical equipment, and failure to properly maintain the available medical equipment. There were also delayed works under UGFIT particularly at Ngwedo seed secondary school, Avogero and Butiaba HC IIIs. I noted delays in accessing payroll for 11 secondary school teachers who were transferred by the Ministry. I noted delayed remittance of PAYE amounting to UGX.220,267,722 from various employees. I noted there was unexecuted planned procurement and unjustified direct procurement of UGX. UGX.251,314,381. +2 Kagadi DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 23% of the sampled targets were fully achieved, 31% were partially achieved while 46% were not achieved at all. The district collected 15.4% of its budgeted local revenue and received 99.2% of the funds expected from treasury while 37.3% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.2Bn which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 21 outputs, 17 (81%) were fully quantified, 1 (5%) was insufficiently quantified while 3 (14%) were not quantified at all. Out of the 17 quantified out-puts, 6 (35%) were fully implemented, while 11 (65%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of the 4 quarterly performance reports, 1 (25%) was submitted beyond the deadline for submission. I also noted cases of inaccurate reporting of performance. The district received UGX 225M for Covid interventions and UGX 165million was utilized. I noted weakness in the management of the intervention such as; insufficiently quantified outputs and irregularities in procurements of items. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were also challenges in management of quarantine centers for instance outstanding bills of staff allowances. + + + + +242 + + + + + + + + + + + +  I noted that UGX.47,578,491 was realized but not warranted as required by the guidelines. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kagadi hospital faced challenges in delivery of services such as lack of adequate medical equipment and poor maintenance of available equipment. There were also delayed works under UGFIT particularly at St. Catherine Kicucura Seed Secondary School. I noted delays in accessing payroll for 145 staff newly recruited to the district and those transferred. I noted unjustified use of direct procurement method of UGX.20m. +3 Kiryandongo DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 33% of the strategic outputs targets were fully achieved, 67% were partially achieved. The district collected 27% of its budgeted local revenue and received 89% of the funds expected from treasury while 12% of funds expected from external sources were received by year end. The district had unspent balances of UGX 4.5Bn which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 15 outputs, 12 (80%) were fully quantified, 1 (7%) was insufficiently quantified while 2 (13%) were not quantified at all. Out of the 12 quantified out-puts, 5 (42%) were fully implemented, while 6 (50%) were partially implemented and 1(8%) was not implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for 3 of the 4 quarters were also submitted beyond deadlines. I also noted cases of inaccurate reporting of performance. The district received UGX.187M for Covid interventions and UGX.167million was utilized. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. UGX.12,973,000 paid out as administrative advances during the year under review was not accounted for. I noted failure to have an approved integrated annual work plan under Development Response to Displacement Impacts Project (DRDIP) and approved groups not funded under Development Response to Displacement Impacts Project (DRDIP) and Northern Uganda Social Action Fund (Nusaf 3). There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kiryandongo district hospital faced challenges in delivery of services such as lack of adequate medical equipment and poor maintenance of available equipment. There were also delayed works under UGFIT particularly at Kitwara Seed Secondary School I noted delays in accessing payroll for 10 staff newly recruited to the district and those transferred. I also noted delayed remittance of PAYE of Ugx.997M. The District used direct procurement method for works and supplies worth UGX.142,613,300 without justification. + + + + +243 + + + + + + + + + + + +  I noted failure to adhere with contract management procedures. +4 Hoima DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 63% of the sampled targets were fully achieved, 21% were partially achieved while 16% were not achieved at all. The district collected 55% of its budgeted local revenue and received 92% of the funds expected from treasury while 45% of funds expected from external sources were received by year end. The district had unspent balances of UGX 2Bn which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 21 outputs 15 (72%) were fully quantified, 3 (14%) were insufficiently quantified while 3 (14%) were not quantified at all. Out of the 15 quantified out-puts, 11 (73%) were fully implemented, while 4 (27%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 3 (75%) were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX 245M for Covid interventions and UGX 165million was utilized. I noted weaknesses in the management of the intervention such as; insufficiently quantified work plans. Items that were received in Kind were neither valued nor taken on charge and there was no list of all donations received by the Task force. There were no challenges noted in management of quarantine centers. There were weaknesses in the management of the districts fleet including; improper maintenance of Motor Vehicle records, absence of fleet management policy, inadequate allocation of vehicles to various departments, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kigorobya Health Centre IV faced challenges in delivery of services such as lack of medical equipment, idle equipment and poor maintenance of available equipment. There were also delayed works under UGFIT at Kigorobya Seed Secondary School. I noted delays in accessing payroll for 104 staff newly recruited to the district and those transferred. I noted that for certain procurements, arithmetic corrections were made without a request for clarification from bidders. I noted delays in the implementation of Development Response to Displacement Impacts Project (DRDIP) sub projects. +5 Masindi MCOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 20% of the sampled targets were fully achieved, 50% were partially achieved while 30% were not achieved at all. The Municipal collected 66% of its budgeted local revenue and received 100% of the funds expected from treasury while 41% of funds expected from external sources were received by year end. The Municipal had unspent balances of UGX 0.2Bn which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 22 outputs 17 (77%) were fully quantified, 2 (9%) were insufficiently quantified while 3 (14%) were not quantified at all. Out of the 17 quantified out-puts, 9 (53%) were fully implemented, while 8 (47%) were partially implemented. The Municipal did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. All four quarterly reports (100%) were not submitted on time. I also noted cases of inaccurate reporting of + + + + +244 + + + + + + + + + + + + performance. The Municipal had unsupported adjustments to the opening cash and cash equivalents. There were weaknesses in the management of the Municipals fleet including; Un- updated Asset Management Module, absence of fleet management policy, inadequate allocation of vehicles to various departments, and shortfalls in funds allocated for motor vehicle maintenance. I also noted weaknesses in the management of garbage such as; non-adherence to garbage management by-laws, incomplete garbage management strategy and plan, inadequate equipment and facilities for garbage collection and inadequate funding for garbage management. I noted that the Municipal did not have an approved physical development plan. There were also delayed works under UGFIT at Katasenywa HCII and under absorption of funds released for its construction. I noted under absorption of the wage, pension and gratuity funds, delayed remittance of PAYE and 23 newly recruited staff delayed in accessing the payroll. +6 Kakumiro DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 56% of the sampled targets were fully achieved, and 44% were partially achieved. The district collected 79% of its budgeted local revenue and received 100% of the funds expected from treasury while 69% of funds expected from external sources were received by year end. The district had unspent balances of UGX 0.9Bn which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 19 outputs, 13 (68%) were fully quantified, 3 (16%) were insufficiently quantified while 3 (16%) were not quantified at all. Out of the 13 quantified out-puts, 7 (54%) were fully implemented, while 6 (46%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for all the 4 quarters were also submitted beyond deadlines. The district received UGX 165M for Covid interventions and UGX 165million was utilized. I noted weakness in the management of the intervention such as; partial implementation of planned outputs. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were also challenges in management of quarantine centers for instance poor storage of items at the center and undistributed donated items. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles with engine capacities beyond staff entitlements, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kakumiro Health Centre IV faced challenges in delivery of services such as lack of adequate medical equipment, failure to properly maintain the available equipment and congested maternal wards. I noted delays in accessing payroll for 15 staff newly recruited to the district and those transferred and delayed removal of 6 staff who had previously retired, died or transferred service. 55% of the district staff structure was not filled with key staff such as District Health Officer missing. There were also delayed works under UGFIT particularly at St Matia Mulumba Seed School and Kitaihuka HC III. + + + + +245 + + + + + + + + + + + +7 Kyankwanzi DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 40% of the strategic targets were fully achieved, 36% were partially achieved while 24% were not achieved at all. The district collected 69% of its budgeted local revenue and received 96% of the funds expected from treasury while 0% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.6Bn which was sent back to treasury. I noted that there were no off budget receipts during the year under review. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 18 outputs 13 (72%) were fully quantified, 1 (6%) was insufficiently quantified while 4 (22%) were not quantified at all. Out of the 13 quantified out-puts, 11 (85%) were fully implemented, while 2 (15%) were partially implemented. The district prepared and submitted annual monitoring plans and quarterly monitoring reports. Out of four quarterly reports, only 2 (50%) were submitted on time. There were no cases of inaccurate reporting of performance. The district received UGX.205M for Covid interventions and UGX 165million was utilized. UGX 40m was transferred to bank of Uganda revenue collection account. I noted weaknesses in the management of the intervention such as; irregularities in procurements of items. Items that were received in Kind were not valued. They were taken on charge and there was evidence of quality checks before distribution. There were no challenges noted in management of quarantine centers. There were weaknesses in the management of the districts fleet including; improper maintenance of Motor Vehicle records, absence of fleet management policy, inadequate allocation of vehicles to various departments, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Ntwetwe Health Centre IV faced challenges in delivery of services such as lack of medical equipment and poor maintenance of available equipment. There were also delayed works under UGFIT at Kikolimbo HC II, Mujunza HC II and Bananywa Seed Secondary school. I noted delays in accessing payroll for 21 staff newly recruited to the district and those transferred. +8 Kibaale DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 40% of the strategic targets were fully achieved, 60% were partially achieved. The district collected 55% of its budgeted local revenue and received 97% of the funds expected from treasury while 61% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.3Bn which was sent back to treasury. The district had off-budget financing amounting to UGX. 121,547,150 for the year contrary to the budget execution circular. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 17 outputs, 14 (82%) were fully quantified, 2 (12%) were insufficiently quantified while 1 (6%) was not quantified at all. Out of the 14 quantified out-puts, 10 (72%) were fully implemented, while 3 (21%) were partially implemented and 1 (7%) was not implemented at all. I did not note any diversion/mischarges during the year. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for 2 of the 4 quarters were also submitted beyond deadlines. I also noted cases of inaccurate reporting of performance. The district received UGX 209M for Covid interventions and UGX 169million was utilized. + + + + +246 + + + + + + + + + + + +  I noted weakness in the management of the intervention such as; insufficiently quantified outputs and partial implementation of some activities. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, absence of fleet management policy and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kibale Health Centre IV faced challenges in delivery of services such as lack of adequate medical equipment, and poor maintenance of available equipment. I noted under absorption of funds and also delayed works under UGFIT particularly at Nyamarwa seed school and Matale HC III. I noted failure to deduct PAYE on 5 staff and delayed remittance of PAYE of UGX. 124M. +9 Kiboga DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 50% of the sampled targets were fully achieved, 20% were partially achieved while 30% were not achieved at all. The district collected 64% of its budgeted local revenue and received 98% of the funds expected from treasury while 51% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.2Bn which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 13 outputs, 7 (54%) were fully quantified, 2 (15%) were insufficiently quantified while 4 (31%) were not quantified at all. Out of the 7 quantified out-puts, 7 (100%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for all the 4 quarters were also submitted beyond deadlines. I also noted cases of inaccurate reporting of performance. The district received UGX 165M for Covid interventions and UGX 154million was utilized. I noted weakness in the management of the intervention such as; insufficiently quantified outputs and irregularities in procurements of items. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kiboga District hospital faced challenges in delivery of services such as lack of adequate medical equipment, non-functioning equipment and poor maintenance of available equipment. There were also delayed works under UGFIT particularly at Bulaga HCIII and Buninga HC III. I noted delays in accessing payroll for 47 staff newly recruited to the district and those transferred. I also noted delayed removal of 6 staff from the payroll month(s) after their death, retirement or transfer of service. Furthermore, I also noted inconsistencies with salary payment as 19 staff were paid using the wrong salary scales and 26 staff were not paid, underpaid or overpaid during the year. The District procured goods worth UGX. 169,524,598 using Direct Procurement when circumstances did not require use of the same. +10 Hoima RRH Opinion  My review of the implementation of the 2015-2020 strategic plan revealed that 71% of the strategic targets were fully achieved, and 29% were partially + + + + +247 + + + + + + + + + + + + Unqualified achieved. The hospital collected 89.9% of its budgeted local revenue and received 92% of the funds expected from treasury while the hospital did not receive any external financing during the year under review. The hospital had unspent balances of UGX 0.4Bn which was sent back to treasury. The hospital had off-budget financing amounting to UGX.1.5Bn for the year contrary to the budget execution circular. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 13 outputs, 8 (62%) were fully quantified, 4 (31%) were insufficiently quantified while 1 (7%) was not quantified at all. Out of the 8 quantified out-puts, 1 (13%) was fully implemented, while 7 (87%) were partially implemented. The hospital did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for all quarters were submitted within the stipulated period. I also noted cases of inaccurate reporting of performance. There were weaknesses in the management of the hospital fleet including; short falls in funding vehicle acquisitions, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance. I noted that the hospital faced challenges in delivery of services such as lack of adequate medical equipment, idle equipment, non-functioning equipment. +11 Masindi DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 20% of the sampled targets were fully achieved while 80% were partially achieved. The district collected 36% of its budgeted local revenue and received 99% of the funds expected from treasury while 114% of funds expected from external sources were received by year end. The district had unspent balances of UGX 0.7Bn which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 18 outputs 12 (67%) were fully quantified, 5 (28%) were insufficiently quantified while 1 (5%) was not quantified at all. Out of the 12 quantified out-puts, 3 (25%) were fully implemented, while 9 (75%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. All four quarterly reports (100%) were not submitted on time. There were no cases of inaccurate reporting of performance. The district received UGX.205M for Covid interventions and UGX 165 million was utilized. UGX 40m remained on the District account as at year end. I noted weaknesses in the management of the intervention such as; insufficiently quantified work plans and irregularities in procurements of items. Items that were received in Kind were valued and taken on charge and there was evidence of quality checks before distribution. I noted that the District did not utilize the maternity ward at Kijenga HC II for over a year after completion. There were weaknesses in the management of the districts fleet including; Un- updated Asset Management Module, absence of fleet management policy, inadequate allocation of vehicles to various departments, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Masindi hospital faced challenges in delivery of services such as lack of medical equipment, poor maintenance of available equipment, idle equipment and non-functioning equipment. I noted under absorption of the wage, pension and gratuity funds and 21 newly + + + + +248 + + + + + + + + + + + + recruited staff delayed in accessing the payroll.  Under UGFIT, Budongo Seed School is still under construction. +12 Kikuube DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 40% of the sampled targets were fully achieved, 40% were partially achieved while 20% were not achieved at all. The district collected 8% of its budgeted local revenue and received 96% of the funds expected from treasury while 59% of funds expected from external sources were received by year end. The district had unspent balances of UGX 0.025Bn which was sent back to treasury. The district had off-budget financing amounting to UGX.592,193,000 for the year contrary to the budget execution circular. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 14 outputs, 9 (64%) were fully quantified and 5 (36%) were insufficiently quantified. Out of the 9 quantified out-puts, 8 (89%) were fully implemented, while 1 (11%) was partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for 3 of the 4 quarters were also submitted beyond deadlines. I noted inaccuracies in the performance reports submitted The district received UGX 207 for Covid interventions and UGX 207 million was utilized. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. UGX.9,140,000 remained not accounted for. I noted delayed Disbursement of funds to sub projects under Development Response to Displacement Impacts Project (DRDIP) and weaknesses in project Reporting. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, non-compliance with government ban on acquisition of motor vehicle, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles with engine capacities beyond staff entitlements, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kikuube Health Centre IV faced challenges in delivery of services such as lack of adequate medical equipment, and poor maintenance of available equipment. There were also delayed works under UGFIT particularly at Nyairongo Seed Secondary School. I noted failure to undertake the approved recruitments and also 52% of the district staff structure was not filled with key staff such as district engineer and Chief Administrative Officer missing. +13 Hoima MCOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 22% of the sampled targets were fully achieved, 67% were partially achieved while 11% were not achieved at all. The Municipal Council collected 443% of its budgeted local revenue and received 58% of the funds expected from treasury while 99.7% of funds expected from external sources were received by year end. The Municipality had unspent balances of UGX 15.5Bn which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 14 outputs, 8 (57%) were fully quantified, 1 (7%) were insufficiently quantified while 5 (36%) were not quantified at all. Out of the 8 quantified out-puts, 4 (50%) were fully implemented, while 3 (37%) were partially implemented and 1 (13%) was not implemented. + + + + +249 + + + + + + + + + + + +  The Municipality did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for all the 4 quarters were also submitted beyond deadlines. I noted unwarranted revenue of UGX. 16,095,130,002  The Municipality had long outstanding receivables of UGX. 2,137,308,394 UGX.508,561,681 (57%) was earned during the year on USMID funds that were held on account during the year and remained unutilized at the year-end. I noted that there was change of status from Municipal Council to City There were weaknesses in the management of the Municipal fleet including; short falls in funding vehicle acquisitions, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy and shortfalls in funds allocated for motor vehicle maintenance. I noted that the Municipality had physical development plans, an approved PDP and detailed plans, there was Urban Physical Planning Committee in place, the municipal council provided adequate funding of the detailed plans of the physical development plan activities, there was authorized alteration of physical development plans, and provision of development permits in support of on-going physical developments I noted that the Municipality had challenges in management of garbage such as lack of by-laws on Garbage management, non-functional Garbage Management Strategy and Plan, inadequate funding for Garbage management, inadequate Equipment and facilities for Garbage collection and disposal I noted delays in accessing payroll for 11 staff newly recruited to the Municipality and those transferred. 72% of the Municipality staff structure was not filled  I noted that under USMID UGX.15,579,720,727 remained unutilized at year end. There were also delayed works under UGFIT particularly at Kihukya Health Centre III and lack of effective Internal control over certification works for payments. + JINJA BRANCH +1 Bugiri DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 9% of the sampled targets were fully achieved, 17% were partially achieved while 74% were not quantified to enable assessment. The District collected 88% of its budgeted local revenue and received 98% of the funds expected from treasury, received 80% of the funds expected from transfers from other government units while 86% of funds expected from external sources were received by year end. The District had unspent balances of UGX 0.29Bn out of which UGX 0.04Bn was sent back to treasury. The District had off-budget financing amounting to UGX. 64 million for the year which was never paid into the consolidated fund contrary to the budget execution circular. I noted challenges in quantification of out-puts which affects assessment of performance. Out of a sample of 22 outputs 20 (91%) were fully quantified, 01 (4.5%) was insufficiently quantified while 01 (4.5%) was not quantified at all. Out of the 20 fully quantified out-puts, 13 (65%) were fully implemented, 05 (25%) were partially implemented while 02 (10%) were not implemented. The District did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 01 (25%) was submitted on time. I also noted cases of inaccurate reporting of performance. The District received UGX. 382million for Covid-19 interventions and UGX .382million was utilized. 20 out of 31 Items that were received in Kind were not valued and there was no evidence of quality checks before distribution. + + + + +250 + + + + + + + + + + + +  The District lacked land titles for 38 pieces which exposed the land to loss and encroachment. There were weaknesses in the management of the District’s fleet including; failure to record vehicles in the asset register in the format prescribed by the Accountant general, failure to capture vehicles in the fixed assets module of the GFMIS, inadequate vehicle allocation to key service centres and absence of fleet management policy. I noted that Bugiri District hospital faced challenges in delivery of services such as lack of adequate medical equipment, non-functional equipment, idle equipment and irregular maintenance of available equipment. There were also delayed physical progress of works under UGFIT particularly at Iwemba seed school. +2 Jinja RRHOpinion Qualified  My review of the implementation of the 2015-2020 revealed that 6% of the sampled targets were fully achieved, 61% were partially achieved while 22% were not achieved at all and 11% not assessed. The hospital collected 214% of its budgeted local revenue and received 88% of the funds expected from treasury. The hospital had unspent balances of UGX 0.08Bn which was sent back to treasury. The hospital had off-budget financing amounting to UGX. 919million for the year contrary to the budget execution circular. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 6 outputs 3 (50%) were fully quantified and 3 (50%) were insufficiently quantified. Out of the 3 quantified out-puts, 1 (33%) was fully implemented, while 2 (67%) were partially implemented. UGX.26million was diverted/mischarged during the year. Out of four quarterly performance reports, only 2 (50%) were submitted on time. I noted that the Hospital collected UGX 602million in non-tax revenue and remitted UGX 515million to Treasury leading to a variance of UGX 87million. Out of UGX 87million, UGX 53million was withdrawn from the collections account and spent at source. 15% of the hospital staff structure was not filled with key staff such as Consultants and Senior Consultants missing. The hospital lacked land titles for 5 pieces which exposed the land to loss and encroachment. Stores records revealed that the Hospital had stock outs of essential medicines during the year ranging from a 30 to 149 days. 55% of the staff were not accommodated by the hospital. Of the housing provided, I noted that some of the blocks accommodating nurses and drivers were not fit for accommodation due to their dilapidated state and lack of hygiene facilities such as latrines and bathrooms. UGX.183 million was provided for settlement of domestic arrears yet domestic arrears brought forward from the prior year were UGX. 975 million leading to a variance of UGX. 792 million. There were weaknesses in the management of the hospitals fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance. I noted that the hospital faced challenges in delivery of services such as lack of medical equipment, idle equipment and poor maintenance of available equipment. I noted delays in accessing payroll for 27 staff newly recruited to the hospital and those transferred. The hospital deducted and did not remit LST of UGX 19million from Officers’ salaries to Jinja Municipal Council collection account where the employees of the + + + + +251 + + + + + + + + + + + + Hospital reside. The Hospital had residual salary arrears amounting to UGX 25million at the end of financial year 2018/19. No payments were made during the year to settle these obligations. +3 Bugiri MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 03% of the sampled targets were fully achieved, 18.2% were partially achieved while 78.8% were not quantified to enable assessment. The Municipal Council collected 100% of its budgeted local revenue and received 93% of the funds expected from treasury, while 100% of funds expected from transfers from other government units were received by year end. The Municipal Council had unspent balances of UGX 0.56 Bn out of which UGX 0.34 Bn was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 10 outputs 05 (50%) were fully quantified, 04 (40%) were insufficiently quantified while 01 (10%) were not quantified at all. Out of the 05 fully quantified out-puts, 04 (80%) were fully implemented, while 01 (20%) was partially implemented. The Municipal Council did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, none was submitted on time. I also noted cases of inaccurate reporting of performance. The Municipal Council lacked land titles for 12 pieces which exposed the land to loss and encroachment There were weaknesses in the management of the Municipal Council’s fleet including; failure to record vehicles in the asset register in the format prescribed by Accountant general, failure to capture vehicles in the fixed assets module of the GFMIS, absence of fleet management policy inadequate vehicle allocation to key service centres. The Municipal Council lacked an approved Urban Physical Development Plan and a fully constituted Urban Physical Planning Committee to facilitate developments. The Municipal Council lacked a garbage management strategy and plan, approved by-laws and records and data on garbage management. I noted challenges in garbage management including; inadequate funding and inadequate equipment and facilities for garbage collection. The Municipal Council spent UGX. 2.1 Bn out of UGX. 2.3 Bn warranted in respect of salaries which led to an under absorption of UGX. 0.2 Bn. I noted that the Municipal Council’s organization structure was not updated. I noted delays in accessing the pension payroll for 02 deceased staff. +4 Kamuli DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 41% of the sampled targets were fully achieved, 45% were partially achieved while 05% were not achieved at all. The District collected 83% of its budgeted local revenue and received 99% of the funds expected from treasury, received 90% of the funds expected from other government units while 53% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.7Bn which was sent back to treasury. The District had off-budget financing amounting to UGX 180millions which was not paid into the consolidated fund for the year contrary to the budget execution circular. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 21 outputs 11 (53%) were fully quantified, 3 (14%) were insufficiently quantified while 7 (33%) were not quantified at all. Out of the 11 quantified out-puts, 7 (64%) were fully implemented, while 4 (36%) were partially implemented. + + + + +252 + + + + + + + + + + + +  The District did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly performance reports, only 1 (25%) were submitted on time. I also noted cases of inaccurate reporting of performance. The District received UGX 345M for Covid-19 interventions and UGX 205million was utilized. UGX 80m was used at source contrary to the Law while UGX 40m was reported as lost. I noted weakness in the management of the Covid-19 intervention such as; failure to account for funds amounting to UGX 80million. There was no evidence of quality checks for items received in kind, before distribution. There were also challenges in management of quarantine centers for instance lack of PPE for health workers. 27% of the District staff structure was not filled with key staff such as District engineer missing The District lacked land titles for 89 pieces which exposed the land to loss and encroachment There were weaknesses in the management of the District’s fleet including; short falls in funding vehicle acquisitions, failure to record vehicles in the asset register in the format prescribed by Accountant general, failure to capture vehicles in the fixed assets module of the GFMIS, absence of fleet management policy, and failure to prepare work plans to guide vehicle maintenance initiatives. I noted that Kamuli District hospital faced challenges in delivery of services such as lack of adequate medical equipment, idle equipment, poor maintenance of available equipment, failure to record medical equipment including donated equipment in the fixed assets register. There were also delayed works under UGFIT particularly at Kitayunjwa seed schools and Kagumba health center III I noted delays in accessing payroll for 23 staff newly recruited to the District and those transferred. +5 Iganga DLGOpinion Unqualified  My review of the implementation of the 2015-2020 district strategic plan revealed that the district did not have clear performance indicators and targets to enable the assessment of achievements. The district collected 44% of its budgeted local revenue and received 99.8% of the funds expected from treasury while 45% of funds expected from external sources were received by year end. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 11 outputs 5 (45%) were fully quantified, 1 (09%) was insufficiently quantified while 5 (45%) were not quantified at all. Out of the 5 quantified out-puts, 3 (60%) were fully implemented, while 2 (40%) were partially implemented. Out of four quarterly performance reports, only 2 (50%) were submitted on time. The district received UGX 228million for Covid interventions. All the funds were utilized. I noted challenges in the management of quarantine centers for instance the centre had one big room with the beds close to each other, no mechanism of providing information from the outside and with no running water to enable hand hygiene. The facility had six beds with only one mattress and without bed linen. 10% of the district staff structure was not filled with key positions such as District Engineer, District Planner, and Senior Land Management Officer vacant. The district lacked land titles for 23 pieces of land which exposed the land to loss and encroachment. There were weaknesses in the management of the district’s fleet including; failure to record vehicles in the format prescribed by Accountant general, absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance. + + + + +253 + + + + + + + + + + + +  I noted that Iganga district hospital faced challenges in delivery of services such as lack of medical equipment, idle equipment, and poor maintenance of available equipment. There were also delayed works under UGFIT particularly at Nawanyingi seed school. +6 Jinja DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 37% of the sampled targets were fully achieved, 33% were partially achieved while 30% were not assessed at all. The district collected 76% of its budgeted local revenue and received 97% of the funds expected from treasury, 74% from other government units while 99% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.1Bn which was sent back to treasury. The district had off-budget financing amounting to UGX. 60million for the year contrary to the budget execution circular. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 15 outputs 09 (60%) were fully quantified, 01 (07%) were insufficiently quantified while 05 (33%) were not quantified at all. Out of the 09 quantified out-puts, 08 (89%) were fully implemented, while 01 (11%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 03 (75%) were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX 682M for Covid interventions and UGX 682million was utilized. I noted weakness in the management of the intervention such as; insufficiently quantified work plans. For items that were received in Kind, there was no evidence of quality checks before distribution. The district lacked land titles for 13 pieces which exposed the land to loss and encroachment There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, insufficient number of vehicles for service delivery, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Buwenge General Hospital faced challenges in delivery of services such as lack of medical equipment. +7 Mayuge DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 21% of the sampled targets were fully achieved while 79% were partially achieved. The district collected 40% of its budgeted local revenue and received 99.6% of the funds expected from treasury, 52% as transfers from other government units while 83% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.6Bn which was sent back to treasury. The district had off-budget financing amounting to UGX. 42.4million for the year contrary to the budget execution circular. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 14 outputs 09 (64%) were fully quantified while 05 (36%) were not quantified at all. Out of the 09 quantified out-puts, 06 (67%) were fully implemented, while 3 (33%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 1 (25%) was submitted on time. I also noted cases of inaccurate reporting of performance. + + + + +254 + + + + + + + + + + + +  The district received UGX 208M for Covid interventions and UGX 168million was utilized. UGX 40m was remitted to the consolidated fund in the subsequent year. I noted weakness in the management of the intervention such as; failure to bank all cash receipts, and insufficiently quantified work plans. Items that were received in Kind were not valued and there was no evidence of quality checks before distribution. The district lacked land titles for 33 pieces which exposed the land to loss and encroachment. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kityerera HC IV faced challenges in delivery of services such as lack of medical equipment, poor maintenance of available equipment, incapability to handle delivery of mothers who need blood transfusion and critical operations and lack of an ambulance. There were also delayed works under UGFIT particularly at Mpungwe seed school and Jagusi, Busala and Butakuba health centers. +8 Bugweri DLGOpinion Unqualified  I noted that the District had not developed a strategic plan for the period 2015- 2020 as the District became operational in the FY 2018/19. I was therefore not able to assess the extent to which the entity achieved strategic targets. The district collected 6% of its budgeted local revenue and received 100% of the funds expected from treasury while 132% of funds expected from external sources were received by year end. The district had unspent balances of UGX 0.150Bn which was sent back to treasury. The district had off-budget financing amounting to UGX 69million for the year contrary to the budget execution circular. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 17 outputs 10 (59%) were fully quantified, 1 (6%) was insufficiently quantified while 6 (35%) were not quantified at all. Out of the 10 quantified out-puts, 7 (70%) were fully implemented, while 2 (20%) were partially implemented and 1 (10%) not implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 1 (25%) was submitted on time. The district received UGX 237M for Covid interventions and UGX 237million was utilized. UGX 20m was used at source contrary to the Law. I noted weakness in the management of the intervention such as; insufficiently quantified work plans and irregularities in procurements of items. There was no evidence of quality checks for items that were received in kind before distribution. There were also challenges in management of quarantine centers for instance there were no security personnel, no access to psychosocial, general medical support and emergency services as well as the lack of running water. The district lacked land titles for 75 pieces which exposed the land to loss and encroachment There were weaknesses in the management of the districts fleet including; irregularities in planning for Motor vehicle acquisition, absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Busesa Health Centre IV faced challenges in delivery of services such as lack of medical equipment, idle equipment and poor maintenance of available equipment. + + + + +255 + + + + + + + + + + + +  There were also delayed works under UGFIT particularly at Naigombwa seed schools, Nawangisa health center III and Minani Health Centre II. I noted delays in accessing payroll for 29 staff newly recruited to the district and those transferred. +9 Kaliro DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 38% of the sampled targets were partially achieved while 62% were not assessed at all. The district collected 47% of its budgeted local revenue and received 99% of the funds expected from treasury, 84% from transfers from other government units while 62% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.2Bn which was sent back to treasury. The district had off-budget financing amounting to UGX. 45million for the year contrary to the budget execution circular. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 19 outputs 14 (74%) were fully quantified, 05 (26%) were not quantified at all. Out of the 14 quantified out-puts, 13 (93%) were fully implemented, while 01 (07%) was partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, none were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX 211M for Covid interventions and UGX 171million was utilized. UGX 40m was remitted to the consolidated fund account in the subsequent year. I noted weakness in the management of the intervention such as; insufficiently quantified work plans. Items that were received in Kind were not valued and there was no evidence of quality checks before distribution. The district lacked land titles for 39 pieces which exposed the land to loss and encroachment. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, insufficient number of vehicles for service delivery and shortfalls in funds allocated for motor vehicle maintenance. I noted that Bumanya HC IV faced challenges in delivery of services such as lack of medical equipment, poor maintenance of available equipment, incapacity to help mothers in need of blood transfusion and critical operations and lack of an ambulance. There were also delayed works under UGFIT particularly at Bukamba seed school and Nawampiti, Budomero and Kasokwe health centres. I noted that under Uganda Road Fund, there was under funding due to budget cuts resulting in Buluya-Nansolo(9m) and Namwiwa-Wangobo(7km) not being worked on. There were also shortcomings on Ngova-Bulima, Buyinda –Kyanfuba and Gadumire-Busulumba roads mainly caused by side drains in need of reshaping and culverts installed without head walls. +10 Jinja MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that the strategic targets were not clearly quantified to enable assessment. The Municipal Council collected 66% of its budgeted local revenue and received 92% of the funds expected from treasury while 77% of funds expected from transfers from other government units were received by year end. The Municipal Council had unspent balances of UGX.2.47Bn which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 16 outputs 09 (56%) were fully quantified, 04 + + + + +256 + + + + + + + + + + + + (25%) were insufficiently quantified while 03 (19%) were not quantified at all. Out of the 09 fully quantified out-puts, 01 (11%) was fully implemented, 05 (56%) were partially implemented while 03 (33%) were not implemented. The Municipal Council did not prepare annual monitoring plans neither were quarterly monitoring reports submitted. Out of four quarterly reports, only 1 (25%) was submitted on time. I also noted cases of inaccurate reporting of performance. The Municipal Council lacked land titles for 20 pieces which exposed the land to loss and encroachment. There were weaknesses in the management of the Municipal Council’s fleet including; failure to record vehicles in the assets register in the format prescribed by Accountant general, failure to capture vehicles in the fixed assets module of the GFMIS, irregular vehicle inspections and reconciliations, inadequate vehicle allocation to key service centres, failure to prepare maintenance work plans and absence of a fleet management policy. The Municipal Council lacked an up-to-date approved Urban Physical Development Plan. There was a challenge of inadequate funding of physical development plan activities and inspection of a sample of ongoing developments revealed a lack of development permits. I noted challenges in garbage management which included; lack of approved by- laws, inadequate funding for garbage management, inadequate public awareness and sensitization and inadequate equipment and facilities for garbage collection and disposal. I noted that Walukuba health Centre IV faced challenges in delivery of services such as lack of medical equipment, idle equipment and poor maintenance of available equipment. There were also delayed physical progress of works under UGFIT particularly at Kimaka health Centre III. I noted that there were delays in physical progress of works and underfunding of USMID program activities. +11 Namayingo DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 21% of the sampled targets were fully achieved, while 79% were partially achieved. The district collected 96% of its budgeted local revenue and received 99.8% of the funds expected from treasury while 55% of funds from transfers from other government units were received by year end. The district had unspent balances of UGX 501million which was sent back to treasury. The district had off-budget financing amounting to UGX 64.7million for the year contrary to the budget execution circular. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 16 outputs 09 (56%) were fully quantified, 01 (06%) were insufficiently quantified while 06 (38%) were not quantified at all. Out of the 09 quantified out-puts, 06 (67%) were fully implemented, while 03 (33%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, none were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX 294million for Covid interventions and UGX 234million was utilized. UGX 60m was remitted back to the consolidated fund account in the subsequent year. Items that were received in Kind were taken on charge and there was no evidence of quality checks before distribution. The district lacked land titles for 111 pieces which exposed the land to loss and encroachment + + + + +257 + + + + + + + + + + + +  There were weaknesses in the management of the districts fleet including;, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, insufficient number of vehicles for service delivery, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Buyinja Health Center IV faced challenges in delivery of services such as lack of medical equipment, poor maintenance of available equipment, incapability to work on mothers who need blood transfusion and critical operations and lack of an ambulance. There were also delayed works under UGFIT particularly at Mwema seed school and Syanyonja and Bugana health centres. +12 Luuka DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 26% of the sampled targets were fully achieved, 30% were partially achieved while 44% were not achieved at all. The District collected 97% of its budgeted local revenue and received 99.8% of the funds expected from treasury while 67% of funds expected from transfers from other government units were received by year end. The District had unspent balances of UGX 0.35Bn which was sent back to treasury. The District had off-budget financing not remitted to the consolidated fund amounting to UGX 275million -for the year contrary to the budget execution circular. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 13 outputs, 08 (62%) were fully quantified, 03 (23%) were insufficiently quantified while 02 (15%) were not quantified at all. Out of the 08 quantified out-puts, 06 (75%) were fully implemented, while 02 (25%) were partially implemented. The District did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, none were submitted on time. The District received UGX 203M for Covid-19 interventions and UGX 186million was utilized. UGX 1million was used at source contrary to the Law. 45 out of 65 Items that were received in Kind were not valued while 22 items were not taken on charge and there was no evidence of quality checks before distribution. The District lacked land titles for 126 pieces which exposed the land to loss and encroachment There were weaknesses in the management of the District’s fleet including; failure to record vehicles in the asset register in the format prescribed by Accountant general, failure to capture vehicles in the fixed assets module of the GFMIS and absence of a fleet management policy. I noted that Kiyunga health Centre IV faced challenges in delivery of services such as lack of adequate medical equipment and irregular maintenance of available equipment. There were also delayed works under UGFIT particularly at Ikumbya seed school and Bukendi health center III The District had a 23% shortfall in funding for Uganda Road fund. 92.7% of YLP funds and 89% of UWEP funds advanced to groups had not yet been recovered by financial year end. +13 Namutumba DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 36% of the sampled targets were fully achieved, and 64% were partially achieved. The district collected 51% of its budgeted local revenue and received 95% of the funds expected from treasury while 45% of funds from other government units were received by year end. The district had unspent balances of UGX 0.691Bn which was sent back to treasury. + + + + +258 + + + + + + + + + + + +  The district had off-budget financing amounting to UGX. 61.3million for the year contrary to the budget execution circular I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 16 outputs 09 (56%) were fully quantified, 01 (06%) were insufficiently quantified while 06 (38%) were not quantified at all. Out of the 09 quantified out-puts, 07 (78%) were fully implemented, while 02 (22%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 1 (25%) were submitted on time. The district received UGX 207M for Covid interventions and UGX 207million was utilized. I noted weakness in the management of the intervention such as; failure to bank all cash receipts and insufficiently quantified work plans. For items that were received in Kind, there was no evidence of quality checks before distribution. The district lacked land titles for 17 pieces which exposed the land to loss and encroachment There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequate number of vehicles to support entity service delivery, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Nsinze Health center IV faced challenges in delivery of services such as lack of medical equipment and incapacity to work on mothers who need blood transfusion and critical operations. I noted delays in accessing payroll for 13 staff newly recruited to the district and those transferred. +14 Buyende DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 9.8% of the sampled targets were partially achieved while 90.2% were not quantified to enable assessment. The District collected 76% of its budgeted local revenue and received 100% of the funds expected from treasury, received 62.2% of funds expected from transfers from other government units while 26% of funds expected from external sources were received by year end. The District had unspent balances of UGX 0.54 Bn out of which UGX. 0.51 Bn was sent back to treasury. The District had off-budget financing amounting to UGX. 60 million which was never paid into the consolidated fund for the year contrary to the budget execution circular I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 27 outputs 18 (66.7%) were fully quantified, 02 (7.4%) were insufficiently quantified while 07 (25.9%) were not quantified at all. Out of the 18 fully quantified out-puts, 16 (88.8%) were fully implemented, 01 (5.6%) was partially implemented while 01 (5.6%) was partially implemented. The District did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly performance reports, only 2 (50%) were submitted on time. I also noted cases of inaccurate reporting of performance. The District received UGX. 225 million for Covid-19 interventions and UGX 165 million was utilized. Items that were received in Kind were not valued and there was no evidence of quality checks before distribution. There were weaknesses in the management of the District’s fleet including; failure to record vehicles in the asset register in the format prescribed by Accountant + + + + +259 + + + + + + + + + + + + general, failure to capture vehicles in the fixed assets module of the GFMIS, absence of a fleet management policy and lack of evidence to show that vehicle inspections and reconciliations were carried out regularly. I noted inadequacies in allocation of vehicles to key service centres in the District. I noted that Kidera Health centre IV faced challenges in delivery of services such as lack of adequate medical equipment and irregular maintenance of available equipment. There were also delayed physical progress of works under UGFIT particularly at Buyende seed school. +15 Iganga MCOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 29% of the sampled targets were fully achieved, 29% were partially achieved while 42% were not achieved at all. The Municipality collected 10% of its budgeted local revenue and received 118% of the funds expected from treasury while 72% of funds expected from other Government Units were received by year end. The Municipality had unspent balances of UGX 0.004Bn which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 14 outputs 8 (57%) were fully quantified, 2 (14%) were insufficiently quantified while 4 (29%) were not quantified at all. Out of the 8 quantified out-puts, 5 (63%) were fully implemented and 3 (37%) were partially implemented. Out of four quarterly performance reports, none (100%) was submitted on time.  I noted that the Municipal Council had payables of UGX 669,618,238.  Municipal Council had receivables figure of UGX. 800,716,683 28% of the municipal staff structure was not filled with key staff such as Municipal Engineer (Principal Executive Engineer), Principal Commercial Officer, Senior Financial Officer, Senior Planner missing. The Municipality lacked land titles for 27 pieces which exposed the land to loss and encroachment. There were weaknesses in the management of the Municipal’s fleet including; absence of fleet management policy and shortfalls in funds allocated for motor vehicle maintenance. I noted that the municipality did not have an approved urban physical development plan and detailed plans to facilitate physical developments. Also, Council realized 37% of the physical planning budget and had a number of ongoing physical developments without development permits. I noted that Iganga Municipal Council did not have a garbage management strategy and Plan, did not maintain data and records on the garbage collected and disposed, and 41.2% of garbage budget was released. Council also had inadequate garbage equipment. +16 Njeru MCOpinion Unqualified  I noted that at the time of audit (November 2019/20), Njeru Municipal Council had not developed a strategic plan for the period 2015-2020. The Municipality collected 40% of its budgeted local revenue and received 100% of the funds expected from treasury while 44% of funds expected from other Government Units were received by year end. The Municipality had unspent balances of UGX 0.27Bn which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 13 outputs 8 (62%) were fully quantified, 1 (8%) were insufficiently quantified while 4 (30%) were not quantified at all. Out of the 8 quantified out-puts, 5 (62.5%) were fully implemented, 2 (25%) were partially implemented, while 1 (12.5%) was not implemented. Out of four quarterly performance reports, none (100%) were submitted on time. 35% of the municipal staff structure was not filled with key staff such as Municipal + + + + +260 + + + + + + + + + + + + Engineer, Municipal Treasurer and Principal Education Officer missing The Municipality lacked land titles for 12 pieces which exposed the land to loss and encroachment There were weaknesses in the management of Council’s fleet including; irregularities in planning for Motor vehicle acquisition and absence of fleet management policy. I noted that the municipality did not have an approved urban physical development plan and detailed plans to facilitate physical developments. I noted that the garbage budget allocations were declining yet the amount of garbage generated increased over the period. Also, Public awareness and sensitization was not undertaken as no funds were budgeted, released and expended for the activity. The available equipment were in dangerous mechanical state while others were in a non-economical repair state. +17 Lugazi MCOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that the Council did not have clear key performance indicators and targets, therefore I could not assess the extent of the achievement of the strategic goals/objectives. The municipal council collected 59% of its budgeted local revenue and received 78% of the funds expected from treasury while 40% of funds from other government units were received by year end. The municipal council had unspent balances of UGX 8.9Bn which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 13 outputs 10 (77%) were fully quantified while 3 (23%) were not quantified at all. Out of the 10 quantified out-puts, 5 (50%) were fully implemented, 2 (20%) were partially implemented while 3 (30%) were not implemented. The municipal council did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, none were submitted on time. I also noted cases of inaccurate reporting of performance. The municipal council lacked land titles for 08 pieces which exposed the land to loss and encroachment There were weaknesses in the management of the municipal council’s fleet including; irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequate number of vehicles to support entity service delivery, and shortfalls in funds allocated for motor vehicle maintenance. I noted delays in removing 09 staff from payroll. I noted challenges in the Council’s garbage management including: non-existence of garbage management by-laws, lack of garbage management strategy and plan, inadequate funding for garbage management, inadequate public awareness and sensitization, inadequate equipment and facilities for garbage collection and disposal. There were weaknesses in the existence and implementation of the urban physical development plan including; lack of approved PDP and detailed plans, inadequate funding of the detailed plans of the physical development plan activities, failure to have a fully constituted physical planning committee and lack of development permits in support of ongoing physical developments. My review of USMID revealed that there was inadequate funding of program activities and an under absorption of funds worth UGX. 8.3Bn. I noted that the Municipal Council had the following weaknesses under the implementation of Uganda Road Fund; underfunding of UGX. 111,843,962 (27%) and shortcomings on the following roads: Bakata-sanga, Nakibole-Nakusubyaki and Nakiboole-Kasokoso roads mainly arising from lack of side drains, offshoots, + + + + +261 + + + + + + + + + + + + potholes and bushy road sides. +18 Kamuli MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 42% of the sampled targets were fully achieved, 15% were partially achieved, 31% were not achieved at all while 12% could not be assessed.  The Council collected 50.5% of its budgeted local revenue and received 79% of the funds expected from treasury while 48% of funds expected from transfers from other government units were received by year end. The Council had unspent balances of UGX 6.2bn which was sent back to treasury.  I noted under absorption of funds of UGX 6,184,539,039 (47%) out of the total receipts for the financial year of UGX. 13,060,688,728 resulting into non- implementation of some planned activities.  I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 12 outputs, 04 (33%) were fully quantified, 03 (25%) were insufficiently quantified while 05 (42%) were not quantified at all.  Out of the 04 quantified out-puts, 02 (50%) were fully implemented, 01 (25) was partially implemented while 01 (25%) was not implemented.  I noted that council did not prepare and submit the annual monitoring plans to MoFPED, MoLG and NPA. Out of four quarterly reports, none were submitted on time.  I noted an increase in receivables of UGX.174, 996,639 (36%) from UGX. 312,631,331 of the previous year.  I noted lack of approved by-laws on garbage management.  I noted lack of a garbage management strategy and plan.  I noted failure to maintain data and records on the garbage generated.  I noted inadequate funding for Garbage management.  I noted that the Urban Council budgeted and received UGX.4,400,000 (100%) funding for public awareness and sensitization  I noted inadequate Equipment and facilities for Garbage collection and disposal  I noted underfunding of USMID program activities.  I noted under absorption of USMID funds.  I noted that the Entity did not incur ineligible expenditure.  I noted that Program funds were used in line with work plans submitted to MoLHUD.  I noted that, the entity made timely and accurate accountability of the funds.  I noted that Council did not earn interest on USMID fund  I noted that, the Council did not have contingent liabilities arising from litigation.  I noted underfunding of Uganda Road Funds of UGX.82, 048,897 (27%) from the budgeted of UGX 302,034,000.  I noted lack of an up to date approved PDP and detailed plans to facilitate physical developments.  I noted fully funding of the Detailed Plans of the Physical Development Plan Activities  I noted failure of a fully constituted Urban Physical Planning Committee.  I noted UGX. 41,969,897 (18%) outstanding due to Treasury as local revenue not recovered from the Council.  11% of the Council staff structure was not filled with key staff such as Council’s Senior Assistant Town Clerk (Administration Department), Principal Commercial Officer, Senior Accountant, Senior Finance Officer, Senior Environment Officer, Senior Inspector of Schools, and Medical Officer  The Council lacked land titles for 10 pieces which exposed the land to loss and encroachment + + + + +262 + + + + + + + + + + + +  There were weaknesses in the management of the Council fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, lack of vehicles to support entity service delivery and shortfalls in funds allocated for motor vehicle maintenance. There were also delayed works under UGFIT particularly at Busota Health Centre III I noted delays in accessing payroll for 03 staff newly recruited to the district and those transferred. + KAMPALA BRANCH +1 Wakiso DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that there was lack of proper targets in the District Development Plan (DDP) II. Consequently, I could not assess the extent of achievement of the strategic plan. The district collected 87% of its budgeted local revenue and received 100% of the funds expected from treasury, 64% of funds expected from other government units were received while 63% of external sources were received by year end. The district had unspent balances of UGX. 3Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 21 outputs, 16 (76%) were fully quantified while 5 (24%) were not quantified at all. Out of the 16 quantified out-puts, 14 (88%) were fully implemented,1 (6%) was partially implemented while 1 (6%) was not implemented. Out of four quarterly reports, only 2 (50%) were submitted on time. The district received UGX. 165M for Covid interventions and UGX. 165M was utilized. Items that were received in Kind were not valued and there was no evidence of quality checks before distribution. There were also challenges in management of quarantine centers for instance unpaid staff allowances of Ugx.889M and lack of PPE for health workers I noted disclosed receivables of Ugx.2.838Bn in the statement of financial position of the financial statements. I noted disclosed payables of Ugx.1.110Bn in the statement of financial positions of the financial statements. There were weaknesses in the management of the districts fleet such as; no evidence of regular inspection and reconciliation of vehicles in the assets register, absence of a fleet management policy and inadequate allocation of vehicles to departments. I noted that Kajjansi Health Centre IV lacked adequate medical equipment, lacked and ambulance and an inpatient ward facility. I noted that the district does not have a district hospital. I noted that Bussi and Zzinga Islands don’t benefit from the services of Bussi Health Centre III facility as these are hard to reach areas. Under the UgIFT program; there were delayed works at Nakitokolo HCIII. I noted payroll irregularities like delays in accessing payroll for 10 staff recruited/ transferred during the year. I noted irregularities in the maintenance of various roads under the Road fund program for instance incomplete works and inadequate road equipment. I noted irregularities in the management of Youth Livelihood Program like failure to redistribute Ugx.309M to other youth groups and difficulties in implementing some group projects. I noted irregularities in the management of Uganda Women Entrepreneurship + + + + +263 + + + + + + + + + + + + program like failure to redistribute Ugx.189M to other women groups.  I noted that the district lacked an established and operational building committee. +2 Buikwe DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 52% of the sampled targets were fully achieved, 17.1% were partially achieved while 31% were not achieved at all. The district collected 63.5% of its budgeted local revenue and received 106% of the funds expected from treasury, 61.8% of funds expected from other government units, 61.8% was received from other government units while 73.6% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.66Bn which was sent back to treasury. The district had off-budget financing amounting to UGX.1.5Bn for the year contrary to the budget execution circular I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 20 outputs 18 (90%) were fully quantified while 2 (10%) were not quantified at all. Out of the 18 quantified out-puts, 7 (38.9%) were fully implemented, while 2 (11.1%) were partially implemented while 9 (50%). The district did not submit annual monitoring plans to MoFPED, NPA, and MoLG, neither were quarterly monitoring reports submitted to OPM, NPA and MoLG. All four 4 (100%) quarterly reports to MoFPED were not submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX 225M for Covid-19 interventions and UGX 165million was utilized. I noted weakness in the management of the intervention such as; irregularities in procurements of items. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were weaknesses in the management of the districts fleet including; irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles to key departments, noncompliance with the disposal conditions and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kawolo hospital faced challenges in delivery of services such as lack of medical equipment, idle equipment and poor maintenance of available equipment. +3 Kayunga DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic revealed that 40% of the sampled targets were fully achieved, 40% were partially achieved while 20% were not achieved at all. The district collected 48% of its budgeted local revenue and received 99% of the funds expected from treasury, 45.8% received from other government units while 159% of funds expected from external sources were received by year end. The district had unspent balances of UGX.277.6M which was sent back to treasury. The district had off-budget financing amounting to UGX.359M for the year contrary to the budget execution circular. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 18 outputs, 15 (83.3%) were fully quantified and 3 (16.7%) were not quantified at all. Out of the 15 quantified out-puts, 14 (93.3%) were fully implemented, while 1 (6.7%) was partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 3 (75%) were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX. 228,030,300 for Covid-19 interventions and UGX + + + + +264 + + + + + + + + + + + + 165,530,300 was utilized. I noted weakness in the management of the intervention such as; insufficiently quantified work plans. Items that were received in Kind were not valued and others were delivered direct to the users hence no evidence of quality checks before distribution. I noted receivables of Ugx.1.940Bn There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, the District did not prepare maintenance work plans to guide its vehicle maintenance, shortfalls in funds allocated for motor vehicle maintenance. I noted that Kayunga hospital faced challenges in delivery of services such as inadequate medical equipment, poor maintenance of available equipment, and lack of sufficient data on delivery of mothers. I noted delays in accessing payroll for 29 newly recruited/transferred district staff and Staff in Acting Capacities for over 6 months. I noted inadequate equipment and underfunding of Ugx.59M under the URF program. +4 Nakasongola DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 54% of the sampled targets were fully achieved, 43% were partially achieved while 3% were not achieved at all. The district collected 42.9% of its budgeted local revenue and received 98.7% of the funds expected from treasury, 76.7% of funds expected from other government units were received while 84.3% of funds expected from external sources were received by year end. The district had unspent balances of UGX.63m which was sent back to treasury. The district had off-budget financing amounting to UGX134m for the year contrary to the budget execution circular I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 9 outputs 6 (67%) were fully quantified while 3 (33%) were not quantified at all. Out of the 6 quantified out-puts, 4(67%) were fully implemented, while 2 (33%) were partially implemented. No diversion/mischarges were noted during the year. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, none was submitted on time. The district received UGX 165 million for Covid-19 interventions and UGX163million was utilized. UGX 7.9m was used at source contrary to the Law. Items that were received in Kind were never valued but were taken on charge and there was evidence of quality checks before distribution. There were also challenges in management of quarantine centers for instance lack of PPE for health workers. I noted payables of Ugx.68M and sundry creditors of Ugx.697M.  I noted pension arrears of Ugx.770M.  I noted unspent balances of Ugx.286M. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy ,un- updated Asset Management Module in the Financial Management system, inadequate vehicle allocation to key service centers and shortfalls in funds allocated for motor vehicle maintenance. I noted that Nakasongola Health Centre 1V faced challenges in delivery of services such as lack of sufficient medical equipment, poor maintenance of available + + + + +265 + + + + + + + + + + + + equipment, lack of emergency unit, inadequate maternity ward, lack of sufficient data on delivery of mothers and lack of a theatre at Nabisweera Health Centre 1V. There were also delayed works under UGFIT particularly at Kiralamba health center III. I noted 3 non-functional production boreholes. I noted irregularities in physical planning like lack of physical development and detailed plans and failure to have a District Physical planning committee. I noted late submission of accountability report for emergency funds from Uganda Road Fund. +5 Nakaseke DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 34.3% of the sampled targets were fully achieved, 17.1% were partially achieved while 48.6 % were not achieved at all. The district collected 31 % of its budgeted local revenue and received 100% of the funds expected from treasury, 93% from other government units while 26% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.648Bn which was sent back to treasury. The district had off-budget financing amounting to UGX.57,620,000 for the year contrary to the budget execution circular. I noted that all the 9 sampled were fully quantified and Out of the 9 quantified out-puts, 6 (66.6%) were fully implemented, while 3 (33.4%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, none were submitted on time I noted payables of Ugx.1.460Bn. The district received UGX 223M for Covid-19 interventions and UGX 223 million was utilized. UGX 37.6M was used at source contrary to the Law. I noted weakness of insufficiently quantified work plans in the management of the intervention. Items that were received in Kind were not valued. There were weaknesses in the management of the districts fleet including, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles, shortfalls in funds allocated for motor vehicle maintenance and non-compliance with disposal conditions. I noted that Nakaseke hospital faced challenges in delivery of services such as lack of adequate medical equipment, idle equipment, Failure to properly maintain medical equipment and non- functioning equipment. There were also partially or non-implemented works under URF under routine manual and routine mechanized maintenance. +6 Mukono DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 35.7% of the sampled targets were fully achieved, 60.7% were partially achieved while 3.6% were not achieved at all. The district collected 62.5% of its budgeted local revenue and received 99.7% of the funds expected from treasury while 38.1% of funds expected from external sources and 44.6% from transfers from other government transfers were received by year end. The district had unspent balances of UGX 0.98Bn which was sent back to treasury. The district had off-budget financing amounting to UGX1.01Bn for the year contrary to the budget execution circular I noted that all the 12 outputs were quantified. Out of the 12 out-puts, 4 (33%) were fully implemented, while 8 (67%) were partially implemented. The district prepared and submitted annual monitoring plans and quarterly + + + + +266 + + + + + + + + + + + + monitoring. All the quarterly reports were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX 245M for Covid interventions and UGX 165million was utilized. I noted weakness in the management of the intervention such as; insufficiently quantified work plans. Items that were received in Kind were not valued no evidence of quality checks before distribution. 6 district staff who retired in FY2019/20 were not paid their gratuity. 1 staff who retired was partially paid. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, lack of a transport officer. I noted that Kojja HCIV faced challenges in delivery of services such as lack of medical equipment. +7 Luweero DLGOpinion Qualified  I noted irregularities in the financial statements like undisclosed transfer to treasury of Ugx.690M, understated payroll arrears of Ugx.679M, undisclosed PAYE arrears of Ugx.405M and unsupported financial balances. My review of the implementation of the 2015-2020 revealed that 29% of the sampled targets were fully achieved, 38% were partially achieved while 33% were not achieved at all. The district collected 46% of its budgeted local revenue and received 98% of the funds expected from treasury, received 46% of the funds from other government units while 53% of funds expected from external sources were received by year end. The district had unspent balances of UGX 2Bn which was sent back to treasury. I noted a challenge in quantification of out-puts which affects assessment of performance. Out of a sample of 11 outputs, 5 (45.5%) were fully quantified, 1 (9%) was insufficiently quantified while 5 (45.5%) were not quantified at all. Out of the 5 quantified out-puts, 2 (40%) were fully implemented, while 3 (60%) were partially implemented. Out of four quarterly reports, only 1 (25%) were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX.250M for Covid interventions and UGX.164million was utilized. UGX 85m was unspent out of which Ugx.4.5M was used at source contrary to the Law. I noted weakness in the management of the intervention such as; failure to account for funds amounting to UGX.71million. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks or approval by task force before distribution. There were also challenges in the management of quarantine centres for instance loss of school property and lack of PPE especially masks in Luwero hospital. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy and vehicle log books, absence of fuel registers, shortfalls in funds allocated for motor vehicle maintenance and non-compliance with disposal conditions. I noted that Luwero hospital faced challenges in delivery of services such; as lack of medical equipment, idle equipment, poor maintenance of available equipment, failure to update the inventory register, lack of sufficient capacity to handle complicated deliveries and stock out of essential medicines. I noted payroll irregularities for instance deduction and Non-remittance of PAYE + + + + +267 + + + + + + + + + + + + worth Ugx. 90M, duplication of supplier numbers for 2 staff, delays in accessing payroll for 42 pensioners, 28 unconfirmed pensioners on the payroll, outstanding pension arrears worth UGX.301M and salary arrears worth UGX.596M. I noted that Luwero hospital faced challenges in delivery of services such as lack of medical equipment, idle equipment, poor maintenance of available equipment and lack of sufficient data on delivery of mothers Under the UgIFT program; there were delayed works at Katuugo health centre II and lack of effective controls at the construction of Katikamu seed school. I noted irregularities in the management of Youth Livelihood Program like failure to recover Ugx.1.146Bn from youth groups while 28 groups with 304 members were denied funding. I noted irregularities in the construction of latrines and classroom projects under the district management. I noted irregularities in the maintenance of various roads under the Road fund program. +8 Butambala DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 27% of the sampled targets were fully achieved, 39% were partially achieved while 33% were not achieved at all. The district collected 51% of its budgeted local revenue and received 99.7% of the funds expected from treasury, received 92% from transfers from other government transfers while 46% of funds expected from external sources were received by year end. The district had unspent balances of UGX 0.7Bn which was sent back to treasury. I noted a challenge in quantification of out-puts which affects assessment of performance. Out of a sample of 11 outputs, 7(63%) were fully quantified while 4 (36.4%) were not quantified at all. Out of the 7 quantified out-puts, 5(71%) were fully implemented, while 2 (29%) were partially implemented. Out of four quarterly reports, only 2 (50%) were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX.195M for Covid-19 interventions and UGX.165million was utilized. UGX 30m was unspent and transferred to treasury. Items that were received in Kind were not valued but taken on charge and some of the items distributed by OPM were rejected by the community and thus abandoned in the hospital stores There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, absence of fuel registers and vehicle log books, shortfalls in funds allocated for motor vehicle maintenance and non-compliance with disposal conditions. I noted that Gombe hospital faced challenges in delivery of services such; as lack of medical equipment, idle equipment, poor maintenance of available equipment, failure to update the inventory register, expired drugs and stock outs of essential medicines. I noted payroll irregularities for instance deduction and Non-remittance of PAYE of Ugx.306M, delays in accessing pension payroll for 18 pensioners and outstanding pension arrears of Ugx.2.096Bn The district failed to recover Ugx. 547,108,978 from youth groups and Ugx. 98,815,600 from women groups during the year. I noted irregularities in the management of Youth Livelihood Program like failure to recover Ugx.547M from youth groups. I noted irregularities in the management of Uganda Women Entrepreneurship program like failure to recover Ugx.98M from women groups. I noted irregularities in the construction of latrines and classroom blocks projects + + + + +268 + + + + + + + + + + + + under the district management. +9 Mpigi DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed assessment of the strategic plan had not yet been done. The district collected 100% of its budgeted local revenue and received 100% of the funds expected from treasury, 31.3% of funds expected from external sources were received, and 39.7% from other Government Transfers by year end. The district had unspent balances of UGX 1.32Bn which was sent back to treasury. The district had off-budget financing amounting to UGX.0.95Bn for the year contrary to the budget execution circular All the sampled 20 outputs were fully quantified of the sampled outputs, 12 (60%) were fully implemented, 5 (25%) were partially implemented, and 3 (15%) were not quantifies. All the four quarterly reports were not submitted on time and I noted inconsistences in the performance reporting. The district received UGX 225M for Covid-19 interventions and UGX 165million was utilized. I noted weakness in the management of the intervention such as; insufficiently quantified work plans. Items that were received in Kind were not valued and there was no evidence of quality checks before distribution. 35.8% of the district staff structure was not filled. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles with to key departments and shortfalls in funds allocated for motor vehicle maintenance. I noted that Mpigi HCIV faced challenges in delivery of services due to lack of medical equipment, poor maintenance of available equipment, failure to record medical equipment in the register. I noted Land encumbrances in the UgIFT construction (Wamatovu Secondary School) I noted delays in accessing payroll for 15 newly recruited/ transferred staff, delayed payment of gratuity of Ugx.196M for 6 staff. I noted Lack of access to the e-voucher payment system for the Agriculture Cluster Development Programme (ACDP) by the district staff. +10 Mityana DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 20% of the sampled targets were fully achieved, 65% were partially achieved while 15% were not achieved at all. The district collected 47.02% of its budgeted local revenue and received 99.6% of the funds expected from treasury, 80.2% received from other government units while 72.7% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.76Bn which was sent back to treasury. The district had off-budget financing amounting to UGX.82M for the year contrary to the budget execution circular. The 10 sampled outputs were fully quantified and Out of the 10 quantified out- puts, 5 (50%) were fully implemented, while 5 (50%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, none were submitted on time. The district received UGX.248M for Covid 19 interventions and UGX 168 million was utilized. UGX 80M was unspent by the year end. I noted weakness of insufficiently quantified work plans in the management of the intervention. Items that were received in Kind were not valued. There were weaknesses in the management of the districts fleet including; failure + + + + +269 + + + + + + + + + + + + to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles and shortfall in funds allocated for motor vehicle maintenance. I noted that Mityana hospital faced challenges in delivery of services such as lack of adequate medical equipment, idle equipment, Failure to properly maintain the medical equipment and Idle medical equipment I noted partially or non-implemented works under URF under routine manual and routine mechanized maintenance. I noted irregular change of ownership of Mityana District Community Radio. I noted delays in accessing payroll for 26 newly recruited/transferred staff. +11 Buvuma DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 38% of the sampled targets were fully achieved, 58% were partially achieved while 4% were not achieved at all. The district collected 65% of its budgeted local revenue and received 102% of the funds expected from treasury 46% of funds expected from other government units were received while 71% of funds expected from external sources were received by year end. The district had unspent balances of UGX.12m which was sent back to treasury. The district had off-budget financing amounting to UGX86.8m for the year contrary to the budget execution circular. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 9 outputs 7 (78%) were fully quantified while 2 (22%) were not quantified at all. Out of the 7 quantified out-puts, 4 (57%) were fully implemented, while 3 (43%) were partially implemented. No diversion/mischarges were noted during the year. The District did not prepare annual monitoring plans neither were all quarterly monitoring reports timely prepared and submitted. Out of four quarterly reports, none (0%) were submitted on time. I noted no cases of inaccurate reporting of performance. The District received UGX 165.8 million for Covid-19 interventions and all was utilized. Items that were received in Kind were never valued but were taken on charge and there was evidence of quality checks before distribution. There were also challenges in management of quarantine centers for instance lack of PPEs for health workers. I noted receivables of Ugx.714M.  I noted unspent balances of Ugx.100M. There were weaknesses in the management of the districts fleet including; lack of funding for vehicle acquisitions, failure to record vehicles in the format prescribed by Accountant general, absence of fleet management policy, un-updated Asset Management Module in the Financial Management system, inadequate vehicle allocation to key service centers and shortfalls in funds allocated for motor vehicle maintenance. I noted that Buvuma Health Centre 1V faced challenges in delivery of services such as lack of sufficient medical equipment, poor maintenance of available equipment, lack of ambulance services, idle medical equipment, lack of emergency unit, inadequate maternity ward, lack of stable and reliable power supply, lack of a mortuary, insufficient general ward, insufficient and old infrastructure, lack of sufficient data on delivery of mothers, lack of capacity to meet required range of services for Health Centre 1V status and Low coverage of Health Centre 11s and HC111s There were also delayed works under UGFIT particularly at Lwajje health center III. I noted irregularities in physical planning like lack of physical development and + + + + +270 + + + + + + + + + + + + detailed plans and failure to have a District Physical planning committee. I noted low compliance with repayments Schedules for Youth Livelihood (YLP) as Ugx.364M is not yet repaid and Uganda Women Entrepreneurship Program(UWEP) Programs as Ugx.114M is yet to be repaid. +12 Kira MCOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 52% of the sampled targets were fully achieved, 34% were partially achieved while 14% were not achieved at all. The Municipal Council collected 43.5% of its budgeted local revenue and received 112% of the funds expected from treasury, 50.2% of funds expected from other government units while 100% of funds expected from external sources were all received by year end. The Municipal Council had unspent balances of UGX0.375 Bn which was sent back to treasury. The Municipal Council had off-budget financing amounting to UGX.108M for the year contrary to the budget execution circular I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 36 outputs 30 (83%) were fully quantified, 4 (11%) were insufficiently quantified while 2(6%) were not quantified at all. Out of the 30 quantified out-puts, 15 (50%) were fully implemented, while 8 (27%) were partially implemented while 7 (23%) outputs were not implemented at all. The Municipal Council did not submit annual monitoring plans to MoFPED, NPA, and MoLG, neither were quarterly monitoring reports prepared and submitted to OPM, NPA and MoLG. Only two 2 (50%) quarterly reports to MoFPED were submitted on time. I also noted cases of inaccurate reporting of performance. I noted payables of Ugx.2.793Bn.  I noted receivables of Ugx.6.884Bn.  I noted a civil suite against the municipality for trespass on land.  The Municipal council did not receive any Covid-19 interventions. There were weaknesses in the management of the municipal fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles to key departments, shortfalls in funds allocated for motor vehicle maintenance and noncompliance with the disposable conditions. I noted delayed works at Kira health Centre III and un suitable site location for the construction of health center IV under UgIFT. I noted challenges in garbage management like lack of approved garbage by laws, lack of a garbage management strategy and plan, failure to collect data on garbage collection, inadequate public awareness and sensitization, inadequate equipment and facilities, absence of protective wear and failure to operationalize landfill. I noted irregularities in UPDP like the Municipal Council lacked approved physical development plans, absence of Physical planning committee and failure to have bye laws for building activities. +13 Nansana MCOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that there was lack of proper targets in the Municipal Development Plan (DDP) II. Consequently, I could not assess the extent of achievement of the strategic plan. The Municipal collected 45% of its budgeted local revenue and received 100% of the funds expected from treasury, 50% of funds expected from other government units were received while 27% of external sources were received by year end. The district had unspent balances of UGX. 2.9Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 21 outputs, 19 (90%) were fully quantified while 2 (10%) were not quantified at all. Out of the 19 quantified out-puts, 17 (90%) were fully implemented, 1 (5%) was partially implemented while 1 (5%) was not + + + + +271 + + + + + + + + + + + + implemented. Out of four quarterly reports, none was submitted on time. I also noted cases of inaccurate reporting of performance. I noted disclosed receivables of Ugx.1.926Bn in the statement of financial position of the financial statements which had remained outstanding for some time. I noted disclosed payables of Ugx.0.821Bn in the statement of financial positions of the financial statements which had remained outstanding for a long time which could lead to litigation. 65% of the municipal staff structure was not filled with key staff such as municipal engineer missing There were weaknesses in the management of the districts fleet including; noncompliance with the government ban in the period under review, there was no evidence of regular inspection and reconciliation of vehicles in the assets register, lack of a policy on Motor vehicle management and inadequate vehicle allocation to departments. I noted that Buwambo Health Centre IV lacked adequate medical equipment, 6% of mothers referred to other health and a properly maintained ambulance. I noted irregularities in garbage management for instances; inadequate public awareness and sensitization and inadequate equipment. I noted irregularities in the implementation of UPDP for instances; lack of approved UPDP in various growth centers, the municipal received 97% of the expected funding and absence of a building committee. I noted irregularities in the management of Youth Livelihood Program like failure to redistribute Ugx.86M, difficulties in implementing some youth group projects and failure to recover Ugx.457M. I noted irregularities in the management of Uganda Women Entrepreneurship program like failure to redistribute and Ugx.138M to other women groups and failure to recover Ugx.303M I noted irregularities in the management of inspected schools like; some schools were operating without licenses and in poor conditions. I noted irregularities in the maintenance of various roads under the Road fund program. +14 Makindye – Ssabagabo MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 72.4%of the sampled targets were fully achieved, 10.3% were partially achieved while 17.2% were not achieved at all. The Municipality collected 54.9% of its budgeted local revenue and received 100% of the funds expected from treasury while 100% of funds were received from other government units by year end. The municipal had unspent balances of UGX.76.2m which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 15 outputs 13 (86.7%) were fully quantified, none were insufficiently quantified while 2 (13.3%) were not quantified at all. Out of four quarterly reports, none were submitted on time. I also noted cases of inaccurate reporting of performance. I noted payables of Ugx.0.758Bn.  I noted receivables of Ugx.0.640Bn. There were weaknesses in the management of the Municipal fleet including; short falls in funding vehicle acquisitions, or units were not adequately allocated vehicles, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy. I noted that Ndejje H.C IV faced challenges in delivery of services such as lack of medical equipment, idle equipment, poor maintenance of available equipment, + + + + +272 + + + + + + + + + + + + failure to record donated equipment in the register, expired Health Units Management Committees, Inadequate staff accommodation, unfenced health facility and lack of sufficient data on delivery of mothers. I noted delays in accessing payroll for 13 newly recruited/ transferred staff.  I noted failed alignment of the annual budget to the municipal development plan. I noted absence of development permits in support of the ongoing physical developments. I noted challenges in URF such as shortfall in funding and insufficient works on various roads. +15 Mukono MCOpinion Unqualified  I noted that at the time of audit the assessment of the level of achievement of the strategic plan had not been done by the district. The Municipal collected 88.6% of its budgeted local revenue and received 100% of the funds expected from treasury while 100% of funds expected from external sources and 93.6% from transfers from other government transfers were received by year end. The Municipal had unspent balances of UGX. 0.683Bn which was sent back to treasury. All the 11 sampled outputs were fully quantified Out of the 11 out-puts, 5 (45%) were fully implemented, while 6 (55%) were partially implemented. All the four (4) quarterly reports were not submitted on time. I also noted cases of inaccurate reporting of performance. I noted payables of Ugx.64M. There were weaknesses in the management of the districts fleet including; Unauthorised vehicle acquisition, vehicles were not recorded in the asset register, the recorded vehicles were not recorded in the format as prescribed by the Accountant General, absence of the reconciliation of these vehicles, not all vehicles were recorded in the GFMIS, absence of fleet management policy, inadequate vehicle maintenance financing and inadequate allocation of vehicles to key departments. I noted that Mukono district hospital faced challenges in delivery of services such as inadequate medical equipment, idle equipment, poor maintenance of available equipment, 5% of mothers referred to other health units and delayed hand-over of the district hospital. 31.2% of the district staff structure was not filled. I noted irregularities in garbage management like lack of by-laws, lack of garbage management strategy and plan, inadequate equipment. I noted that the Municipal Council lacked an approved UPDP, plans to facilitate physical developments and underfunding of physical planning activities of Ugx.29M. +16 Mityana MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 53.5% of the sampled targets were fully achieved, 34% were partially achieved while 12.5% were not achieved at all. The district collected 74.2% of its budgeted local revenue and received 100% of the funds expected from treasury, 73.13% from other government units while no funds from external sources were received by year end. The Municipality had unspent balances of UGX.252M which was sent back to treasury. The 7 sampled outputs were fully quantified and Out of the 7 quantified out-puts, 5 (71.4%) were fully implemented, while 2 (28.6%) were partially implemented. Out of four quarterly reports, only 1 (25 %) was submitted on time. There were weaknesses in the management of the Municipality fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles and shortfalls in funds allocated for motor vehicle maintenance. I noted that Mityana Municipality had garbage management weakness such as + + + + +273 + + + + + + + + + + + + lack of garbage Management by-laws, non-maintenance of data and records on garbage, lack of functional garbage equipment, lack of protective wear I noted that the Municipality did not have approved UPDP and detailed plans and faced funding shortfalls in the physical development plan activities. I noted challenges in URF such as shortfall in funding, delayed works and deteriorating sections of kunywa Tumbu-Nakaseeta road. +17 Entebbe MCOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 65.3% of the sampled targets were fully achieved, 5% were partially achieved while 29.5% were not achieved at all. The Municipality collected 57% of its budgeted local revenue and received 75% of the funds expected from treasury, received 89% from other government units while 34.3% of funds expected from external sources were received by year end. The Municipality had unspent balances of UGX 5.6Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 7 outputs 3 (43%) were fully quantified, 2 (28.5%) were insufficiently quantified while 2 (28.5%) were not quantified at all. All the 3 quantified out-puts were fully implemented. Out of four quarterly reports, only 3 (75%) were submitted on time. I also noted cases of inaccurate reporting of performance. There were weaknesses in the management of the municipality’s fleet including; absence of fleet management policy and vehicle log books, shortfalls in funds allocated for motor vehicle maintenance and non-compliance with disposal conditions. I noted that the Municipality lacked sufficient equipment, facilities and a composite site for garbage collection and disposal. I noted that the municipality lacked an approved urban physical development plan and building committee. The Municipality collected 63% of its budgeted USMID-(MISG) funds expected. I noted irregularities in the management of council property for instance council buildings with asbestos roofs, absence of land titles on some council land and non-functional security lights. +18 Entebbe RRHOpinion Unqualified  I noted that Entebbe Regional Referral Hospital does not have an approved Strategic Plan to enable me review of implementation of the strategic plan and achievement of strategic objectives. The Regional Referral Hospital collected 49% of its budgeted local revenue and received 96% of the funds expected from treasury. No funds were either expected or received from external sources. The Referral Hospital had no unspent balances. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 5 outputs 5 (100%) were fully quantified. Out of the 5 quantified out-puts, 4 (80%) were fully implemented, while 1 (20%) was partially implemented. No diversion/mischarges were noted during the year. The Referral Hospital did not prepare annual monitoring plans neither were all quarterly monitoring reports timely prepared and submitted. Out of four quarterly reports, 3 (75%) were submitted on time. The Referral Hospital received UGX 308.6 million for Covid-19 interventions and all was utilized. Items that were received in Kind were never valued but were taken on charge and there was evidence of quality checks before distribution. There were also challenges in management of quarantine centers for instance lack of PPEs for health workers and inadequate supply of oxygen cylinders for covid-19 patients. I noted payables of Ugx.597M. 74% of the Referral Hospital staff structure was not filled with key staff such as + + + + +274 + + + + + + + + + + + + Hospital Director and the board. There were weaknesses in the management of the Referral Hospital fleet including; lack of funding vehicle acquisitions, failure to record vehicles in the format prescribed by Accountant general, absence of fleet management policy, un-updated Asset Management Module in the Financial Management system, inadequate vehicle allocation to key service centers and shortfalls in funds allocated for motor vehicle maintenance. I noted that Entebbe Regional Referral Hospital faced challenges in delivery of services such as lack of sufficient medical equipment, insufficient and old infrastructure, inadequate capacity to meet required range of services for Regional Referral Hospital and lack of sufficient data on delivery of mothers. + MASAKA BRANCH +1 Kalangala DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 24% of the sampled targets were fully achieved, 62% were partially achieved while 14% were not achieved at all. The district collected 43% of its budgeted local revenue and received 101% of the funds expected from treasury, 32% of funds from other government units while 62% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.016Bn which was sent back to treasury. I noted a challenge in quantification of out-puts which affects assessment of performance. Out of a sample of 37 outputs 21 (57%) were fully quantified, while 16 (43%) were not quantified at all. Out of the 21 quantified out-puts, 6 (29%) were fully implemented, 9 (43%) were partially implemented while 6 (29) were not implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for the 4 quarters were also submitted beyond deadlines. I also noted cases of inaccurate reporting of performance. The district received UGX.165M for Covid interventions and UGX.165M was utilized. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were also challenges in management of quarantine centers for instance lack of PPE for health workers. 36% of the district staff structure was not filled with key staff such as District Agricultural Officer. There were weaknesses in the management of the Districts fleet including; failure to maintain fuel registers, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, absence of annual motor vehicle inspections, inadequate allocation of vehicles and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kalangala and Bukasa health center IVs faced challenges in delivery of services such as lack of medical equipment, idle equipment, poor maintenance of available equipment, failure to record donated equipment in the register and lack of sufficient data on delivery of mothers. There were also delayed works under UGFIT particularly at Kachanga seed schools and Bubeke health center III. +2 Mubende DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 20% of the sampled targets were fully achieved, 73.3% were partially achieved while 6.7% were not achieved at all. The district collected 81.2% of its budgeted local revenue and received 99.5% of the funds expected from treasury, 44% of funds expected from other government units while 49.3% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.786Bn which was sent back to + + + + +275 + + + + + + + + + + + + treasury. The district had off-budget financing amounting to UGX.60M for the year contrary to the budget execution circular I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 26 outputs 14 (54%) were fully quantified while 12 (46%) were not quantified at all. Out of the 14 quantified out-puts, 8 (57.1%) were fully implemented, 4 (28.6%) were partially implemented while 2 (14.3%) were not implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, all the four 4 (100%) were not submitted on time. I also noted cases of inaccurate reporting of performance. There were weaknesses in the management of the district fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general and no evidence of vehicle inspection and reconciliation done. Under the UgIFT program; there were delayed works at Butologo and Butawata HC IIIs. There were weaknesses in the management of URF like; underfunding with 13.6% funding shortfall and irregular transfer of district URF funds to sub counties of Ugx.363M. I noted irregularities in water use and production like failure to align district water program to the development plan, non-functional water sources and incomplete works at Kalonga piped water system. I noted alteration of requirements in the soliciting documents by the evaluation committee contrary to the procurement regulations. +3 Sembabule DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 81% of the sampled targets were fully achieved, 12% were partially achieved while 7% were not achieved at all. The district collected 46.1% of its budgeted local revenue and received 100.6% of the funds expected from treasury, 78.3% of funds expected from other government units while 25% of funds expected from external sources were received by year end. The district had unspent balances of UGX.1.2Bn which was sent back to treasury. The district had off-budget financing amounting to UGX.100M for the year contrary to the budget execution circular I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 16 outputs 11 (69%) were fully quantified while 5 (31%) were not quantified at all. Out of the 11 quantified out-puts, 9 (82%) were fully implemented, while 2 (8%) were partially implemented. Out of four quarterly reports, only 1 (25%) was submitted on time. The district received UGX.265M for Covid interventions and UGX.164million was utilized. I noted weakness in the management of the intervention such as; insufficiently quantified work plans. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset registers and in the format prescribed by Accountant general. I noted that Ntusi and Sembabule health centre IV faced challenges in delivery of services such; as lack of adequate medical equipment and 4.6% of the mothers referred to other health units. Under the UgIFT program; there were delayed works at Busheka HC II & HC III and Lwebitakuli seed school. I noted irregularities in the management of URF like funding of only 76% of the budget and periodic maintenance of various roads. + + + + +276 + + + + + + + + + + + +4 Lwengo DLGOpinion Unqualified  My review of the implementation of the strategic plan 2015-2020 revealed that 20% of the sampled targets were fully achieved, 20% were partially achieved while 60% were not achieved at all. The district collected 29% of its budgeted local revenue and received 99.7% of the funds expected from treasury while 23% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.025Bn which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 46 outputs 15 (33%) were fully quantified, 20 (43%) were insufficiently quantified while 11 (24%) were not quantified at all. Out of the 15 quantified out-puts, 12 (75%) were fully implemented, while 1 (10%) was partially implemented and 2 (15%) were not implemented. The district received UGX.167M for Covid interventions and UGX.165million was utilized. UGX.1M was utilized at source contrary to the Law. Items that were received in Kind were not valued and there was no evidence of quality checks before distribution. There were weaknesses in the management of the districts fleet including absence of fleet management policy, failure to maintain proper vehicle log books, absence of annual motor vehicle inspections, allocation of vehicles with engine capacities beyond staff entitlements, failure to repair motor vehicles, lack of service analysis records, lack of a disposal plan and failure to dispose motor vehicles beyond the recommended 5 years. I noted that Kyazanga, Lwengo and Kiwangala Health Centres IVs faced challenges in delivery of services due to lack of adequate medical equipment and idle equipment. There were also delayed works under UGFIT particularly at Mbirizi seed schools and Kakoma health center III. +5 Bukomansimbi DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 67% of the sampled targets were fully achieved, 6% were partially achieved while 27% were not achieved at all. The district collected 106% of its budgeted local revenue and received 100% of the funds expected from treasury, 45% of funds expected from other government units while 61.6% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.228Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. thirteen (13) outputs with a total expenditure of UGX.2.35Bn were fully quantified; two outputs (2) with total expenditure of UGX.0.96Bn were insufficiently quantified. All the 13 quantified outputs were fully implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 2 (50%) were not submitted on time. Items that were received in Kind were not valued, not taken on charge and no evidence of quality checks before distribution and poor communication of donations received. I noted that the current office building under construction still is being occupied used as an office which is against the public health rules There were weaknesses in the management of the district fleet including; absence of fleet management policy and inadequate funding of vehicle maintenance. I noted that Butenga Health Centre IV faced challenges in delivery of services such; as lack of adequate medical equipment, idle medical equipment, failure to properly maintain medical equipment, 20% of the mothers referred to other health units and delays in the procurement of an ambulance Under the UgIFT program; there were delayed works at Bukango seed school and + + + + +277 + + + + + + + + + + + + lack of a land ownership title at the same school. There were weaknesses in the management of URF like; underfunding with 24% funding shortfall and irregularities in the various road works under the fund. I noted irregularities in water use and production like underutilization of funds of Ugx.5M and non-functional water sources. +6 Kyotera DLGOpinion Unqualified  The district collected 36.7% of its budgeted local revenue and received 99.8% of the funds expected from treasury, 60.6% of funds expected from other government units while 166% of funds expected from external sources were received by year end. The district had unspent balances of UGX.55M which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 17 outputs 11 (64%) were fully quantified, none were insufficiently quantified while 6 (36%) were not quantified at all. Out of the 11 quantified out-puts, 6 (54%) were fully implemented, 1(18%) were partially implemented while 4 (36%) were not implemented at all by the time of the audit. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for all the 4 (100%) quarters were also submitted beyond deadlines. I also noted cases of inaccurate reporting of performance. I noted weakness in the management of the intervention such as; insufficiently quantified work plans. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles to key departments, no evidence of regular motor vehicle inspection and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kyotera District Hospital faced challenges in delivery of services such; as lack of adequate medical equipment, Idle medical equipment, failure to record donated equipment in the asset register, failure to properly maintain medical equipment and 0.8% of the mothers referred to other health units. There were weaknesses in the management of URF like; underfunding with 21% funding shortfall and irregularities in the various road works under the fund. I noted irregularities in water use and production like non-functional water sources and inadequate assessment of the location of water sources. +7 Gomba DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 14.3% of the sampled targets were fully achieved, 7.1% were partially achieved while 78.6% were not achieved at all. The district collected 51.7% of its budgeted local revenue and received 99.5% of the funds expected from treasury, 80% of funds expected from other government units while 32.5% of funds expected from external sources were received by year end. The district had unspent balances of UGX.1.1Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 18 outputs 15 (72%) were fully quantified while 3 (18%) were not quantified at all. Out of the 15 quantified out-puts, 12 were fully implemented, 1 was partially implemented and 2 were not implemented at all. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, all the 3 (75%) were not submitted on time. There were weaknesses in the management of the district fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general and absence of fleet management policy, inadequate allocation of vehicles to departments and inadequate funding of vehicle maintenance. + + + + +278 + + + + + + + + + + + +  I noted that Maddu Health Centre IV faced challenges in delivery of services such; as lack of adequate medical equipment, idle medical equipment, 15.3% of the mothers referred to other health units, lack of an ambulance and dilapidated buildings and general infrastructure. Under the UgIFT program; there were works at Kyayi seed school lacking enough land for playground. There were weaknesses in the management of URF like; underfunding with 22% funding shortfall and irregularities in the various road works under the fund. I noted nonfunctional water sources under the water for use and production department. +8 Masaka DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 45% of the sampled targets were fully achieved, 27% were partially achieved while 27% were not achieved at all. The district collected 58% of its budgeted local revenue and received 98% of the funds expected from treasury, 51% of funds expected from other government units while 21% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.113Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 13 outputs 1 (7%) was fully quantified while 12 (93%) were not quantified at all. The 1 quantified out-puts was fully implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for 3 of the 4 quarters were also submitted beyond deadlines. The district received UGX.205M for Covid interventions and UGX.165million was utilized. I noted weakness in the management of the intervention such as; insufficiently approved work plans and irregularities in procurements of items. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. 61% of the district staff structure was not filled with key staff. There were weaknesses in the management of the district fleet including; absence of fleet management policy, inadequate allocation of vehicles to key departments and inadequate funding of vehicle maintenance I noted that Kiyumba and Kyanamukaka Health Centre IVs’ faced challenges in delivery of services such; as lack of adequate medical equipment, Idle medical equipment, non-functional medical equipment, failure to properly maintain medical equipment and 11% of the mothers referred to other health units at Kyanamukaka health centre IV. Under the UgIFT program; there were delayed works at Bukakata Seed School. +9 Masaka MCOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 22.2% of the sampled targets were fully achieved, 77.8% were partially achieved while none were not achieved at all The council collected 49% of its budgeted local revenue and received 110% of the funds expected from treasury while 99% of funds expected from other government units by year end. The council had unspent balances of UGX.2.2Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 7 outputs 3 (43%) were fully quantified and 4 (57%) were not quantified at all. Out of the 3 quantified out-puts, none were fully implemented, while 3 (100%) were partially implemented. The council did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports + + + + +279 + + + + + + + + + + + + for all the four quarters were also submitted beyond deadlines. I noted undisclosed bank account in the names of Masaka Municipal Council in stabic bank. There were weaknesses in the management of the council fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy and vehicle log books and shortfalls in funds allocated for motor vehicle maintenance. I noted irregularities in garbage management like inadequate funding, inadequate public awareness and sensitization, lack of protective wear and inadequate equipment for the Municipality. I noted that the municipality lacked an approved urban physical development plan, inadequate funding of the physical planning section, and unauthorized alterations of physical development pans and lack of physical development permits. I noted irregularities in the management of taxi park and council abattoir. +10 Kassanda DLGOpinion Unqualified  My review of the implementation of the strategic plan 2015-2020 revealed that 3% of the sampled targets were fully achieved, 29% were partially achieved while 68% were not achieved at all. The district collected 68% of its budgeted local revenue and received 100% of the funds expected from treasury while 96.2% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.095Bn which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 21 outputs, 9 (43%) were fully quantified while 12 (57%) were not quantified at all. Out of the 9 quantified out-puts, 3 were fully implemented, 4 were partially implemented and 2 were not implemented at all. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 1 (25%) was submitted on time. The district received and utilized UGX.165M for Covid interventions. I noted weakness in the management of the intervention such as; irregularities in procurements of items. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, failure to maintain fuel registers, absence of annual motor vehicle inspections, lack of motor vehicle service records. I noted that Kassanda and Kiganda Health centre IV faced challenges in delivery of services such as lack of adequate medical equipment, idle equipment. There were also delayed works under UgIFT particularly at Kikandwa and Buseregenyu health center III. +11 Rakai DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 15% of the sampled targets were fully achieved while 75% were not achieved at all. The district collected 81.3% of its budgeted local revenue and received 100% of the funds expected from treasury, 66.6% of funds expected from other government units while 55% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.298Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 19 outputs 12 (63%) were fully quantified while 7 (37%) were not quantified at all. Out of the 12 quantified out-puts, 10 (83%) were fully implemented, 1 (8.5%) was partially implemented while 1 (8.5%) was not implemented. The district did not prepare annual monitoring plans neither were quarterly + + + + +280 + + + + + + + + + + + + monitoring reports prepared and submitted. Out of four quarterly reports, only 2 (50%) were submitted on time. I also noted cases of inaccurate reporting of performance. There were weaknesses in the management of the district fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, insufficient allocation of vehicles to departments and shortfalls in funds allocated for motor vehicle maintenance. I noted that Rakai District Hospital faced challenges in delivery of services such; as lack of adequate medical equipment, failure to properly maintain medical equipment and 1.6% of the mothers referred to other health units. Under the UgIFT program; there were inadequate supervision of works at delayed works at Kalibbala memorial seed school and delayed works at Kiziba health center III. +12 Lyantonde DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 50% of the sampled targets were fully achieved, 17% were partially achieved while 33% were not achieved at all. The district collected 65% of its budgeted local revenue and received 100% of the funds expected from treasury, 57% of funds expected from other government units while 57% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.261Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 11 outputs 6 (55%) were fully quantified, 2 (18%) were insufficiently quantified while 3 (27%) were not quantified at all. Out of the 6 quantified out-puts, 4 (66%) were fully implemented; 2 (33%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for all of the 4 quarters were also submitted beyond deadlines. I also noted cases of inaccurate reporting of performance. Items that were received in Kind were not valued, not taken on charge and no evidence of quality checks before distribution and poor communication of donations received. 6 key district staff positions are not filled such as district inspector of schools There were weaknesses in the management of the district fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequate allocation of vehicles to key departments and inadequate funding of vehicle maintenance. I noted that Lyantonde District Hospital faced challenges in delivery of services such; as lack of adequate medical equipment, limited space in maternity wards, non-functional medical equipment, Idle medical equipment, failure to properly maintain medical equipment and 2% of the mothers referred to other health units. There were weaknesses in the management of URF like delayed works at Rwamabara Seed School and Lyakajura Health Centre III. +13 Masaka Regional Referral HospitalOpinion Qualified  I noted undisclosed donor revenue of Ugx.992M. My review of the implementation of the 2015-2020 revealed that 41% of the sampled targets were fully achieved, 31% were partially achieved while 25% were not achieved at all. The district collected 99.8% of its budgeted local revenue and received 91.7% of the funds expected from treasury. The hospital had unspent balances of UGX.14M which was sent back to treasury. The hospital had off-budget financing amounting to UGX.1.036Bn for the year contrary to the budget execution circular I noted challenges in quantification of out-put which affects assessment of + + + + +281 + + + + + + + + + + + + performance. Out of a sample of 9 outputs none were quantified at all. The hospital did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, I could not ascertain the time of submission for all the 4 (100%) quarters. There were weaknesses in the management of the hospital fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general and absence of fleet management policy, inadequate allocation of vehicles to departments and inadequate funding of vehicle maintenance I noted that the regional referral hospital faced challenges in delivery of services such; as lack of adequate medical equipment, non-functional equipment and drug stock outs. +14 Mubende Regional Referral HospitalOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that none of the sampled targets were fully achieved, 100% were partially achieved while none were not achieved at all. The hospital did not budget for NTR but collected UGX.0.141Bn and received 94% of the funds expected from treasury were received by year end. The hospital had unspent balances of UGX.0.39Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 6 outputs 2 (33%) were fully quantified, while 4 (67%) were not quantified at all. Out of the 2 quantified out-puts, 2 (100%) were fully implemented. The hospital did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports submission dates were not indicated to assess the delay in submission. I noted an increase in domestic arrears of Ugx.1.057Bn between FY 2018/2019 and 2019/2020. There were weaknesses in the management of the hospital fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general and absence of fleet management policy and failure to maintain service analysis records and chart. I noted that the regional referral hospital faced challenges in delivery of services such; as lack of adequate medical equipment, non-functional equipment, congested maternity wards and inadequate sanitation. I noted payroll management irregularities like irregular salary payments and delays in accessing the payroll. I noted delayed works at the construction of paediatric, surgical and mortuary wards (single block) at the referral hospital. +15 Kalungu DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 33.3% of the sampled targets were fully achieved, 33.3% were partially achieved while 33.3% were not achieved at all. The district collected 51% of its budgeted local revenue and received 100% of the funds expected from treasury, 51% of funds expected from other government units while 46% of funds expected from external sources were received by year end. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 13 outputs 7 (54%) were fully quantified and 6 (46%) were insufficiently quantified. Out of the 7 quantified out-puts, 4 (57%)were fully implemented, while 3 (43%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, all the 4 (100%) were not submitted on time. The district received UGX.205M for Covid interventions and UGX.165million was utilized. + + + + +282 + + + + + + + + + + + +  I noted weakness in the management of the intervention such as; absence of work plans. 50% of the district staff structure was not filled with key staff. There were weaknesses in the management of the district fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general and absence of fleet management policy, inadequate allocation of vehicles to departments and inadequate funding of vehicle maintenance. I noted that Bukulula Health Centre IV faced challenges in delivery of services such; as lack of adequate medical equipment and 4% of the mothers referred to other health units. Under the UgIFT program; there were delayed works at Kabaale health Centre III. +16 Mubende MCOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that targets were not clearly indicated and quantified to enable my assessment of the extent of achievement. The council collected 68.8% of its budgeted local revenue and received 79.2% of the funds expected from treasury while 65.1% of funds expected from other government units by year end. The council had unspent balances of UGX.7.333Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 41 outputs 21 (51%) were fully quantified while 20 (49%) were not quantified at all. Out of the 21 quantified out-puts, 15 (71%) were fully implemented, 6 (29%) were partially implemented. The council did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for 3 of the 4 quarters were also submitted beyond deadlines. There were weaknesses in the management of the council fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy and inadequate allocation of vehicles to key departments. I noted irregularities in garbage management like non adherence to garbage management by-laws, absence of garbage management strategy and plan, inadequate public awareness and sensitization, lack of protective wear and inadequate equipment for the Municipality. I noted that the municipality had irregularities in UPDP management like inadequate funding of the physical planning section, non-disclosure of contingent liability and lack of physical development permits. Under the UgIFT program; there were delayed works at Lwemikomago Health centre II. + MBALE BRANCH +1 Pallisa DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 35% of the sampled targets were fully achieved, 42.5% were partially achieved while 22.5% were not achieved at all. The district collected 49% of its budgeted local revenue and received 99% of the funds expected from treasury, 44% of the funds were received from other government units while 84.7% of funds expected from external sources were received by year end. The district had excess spent balances of UGX. 0.849Bn. The district had off-budget financing amounting to UGX.0.060Bn for the year contrary to the budget execution circular I noted a challenge in quantification of out-puts which affects assessment of performance. Out of a sample of 21 outputs, 16 (76%) were fully quantified, while 5 (24%) were not quantified at all. Out of the 16 quantified out-puts, 8(50%) were fully implemented, while 5 (31.2%) were partially implemented and 3 (18.8%) were not implemented. The district did not prepare the 4th quarter monitoring reports for and there was a + + + + +283 + + + + + + + + + + + + delayed in submission to Q1 and Q2. The district received UGX.0.205Bn for Covid interventions and UGX 0.165Bn was utilized. The balance of UGX.40m was banked on the national collection account. I noted weakness in the management of the COVID intervention such as; Unaccounted for COVID 19 expenditure (UGX. 0.069Bn) Some of the items that were received in Kind were not valued. I noted that funds to the tune of UGX.0.080Bn were irregularly diverted from the activities without seeking and obtaining the necessary approvals. I further noted that UGX.0.063Bn reported in the statement of financial performance as finance costs were mischarged because no finance costs were incurred. I noted that there is delayed for the phased construction of a general Ward at Pallisa Town Council Health Centre III There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, allocation of vehicles not within the engine capacity limits and vehicle specifications, un-updated fixed assets module of the GFMIS, failure to record vehicles in the format prescribed by Accountant general, failure to carry out inspections and reconciliations of motor vehicles, absence of fleet management policy, allocation of vehicles with engine capacities beyond staff entitlements, insufficient allocation of motor vehicles to key service centers, inadequate vehicle maintenance funding and failure to prepare a maintenance work plan. Under UGFIT, I noted that there was delayed physical progress of works on the construction of Olok Health Centre III and Olok Seed Secondary School and also inadequate contract supervision and monitoring. I noted that the district hospital faced challenges in delivery of services such as lack of medical equipment, poor maintenance of available equipment, non- functioning equipment, obsolete equipment, infant mortality, Understaffing in the maternal wing/department and referral of mothers to other health units due to limited space for admission of all patients. I noted some challenges in the Human resource and Payroll Management such as; salary under payments to 25 staff worth UGX.0.020Bn, 151 vacant positions, unspent salaries of UGX.0.469Bn, and some officers such as the Ag. District Engineer was in acting positions even after the expiry of the mandatory period of 12 months allowed by the Standing Orders. I noted that UGX. 1.12Bn YLP funds were disbursed to various youth groups but no recovery has been made and 4 sampled groups were non-existent. I noted a 51% budget shortfall for the Nusaf 3 project funding. +2 Manafwa DLGOpinion Qualified  I noted unrecognized cumulative payable of UGX.750,366,279 relating to unremitted PAYE to Uganda Revenue Authority as at 30th June, 2020 Included in this amount is UGX.349,429,988 relating to the prior year ended 30th June, 2019. I noted over remittance to Uganda Bankers Association/Uganda Consumer Lenders of UGX. 291,088,093. There was under Remittances to Uganda Consumer Lenders Association of UGX.136,011,458 although deductions had been made from staff salaries Diversion of wage funds totaling to UGX. 0.101Bn to other institutions including schools, tertiary institutions and town councils for 2018/19. My review of the implementation of the 2015-2020 strategic plan revealed that 43% of the sampled targets were fully achieved and 57% were partially achieved. The district collected 41.2% of its budgeted local revenue and received 112% of the funds expected from treasury and 109.8% from other government units while 112% funds budgeted from external sources was realized. The district had unspent balances of UGX 0.6Bn which was sent back to treasury. I also noted challenges in implementation of quantified outputs. Out of a sample of 12 outputs, 10 (83.3%) were fully quantified and 2 (16.6%) were not + + + + +284 + + + + + + + + + + + + quantified at all. Out of a sample of 10 quantified outputs, only 8 (87%) were fully implemented and 2 (13%) were partially implemented. The District did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant stakeholders contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. I also noted cases of inaccurate reporting of performance. I also noted weaknesses in the management of the COVID interventions such as; insufficiently quantified work plans, un implemented activities and unaccounted for funds (UGX 0.014Bn). I noted that for all donations in kind towards COVID, items received were not valued, taken on charge, there was no evidence of quality received, distribution of these items nor acknowledgement of receipt by the beneficiaries. I noted unremitted PAYE to URA of UGX.0.349Bn for 2018/19. I noted irregular transfers of wage funds to the general collection account disguised as LST to a tune of UGX.0.376Bn for 2018/19. I noted irregular transfer of UGX. 834,910,01 to private companies; UGX.408,042,052 was transferred to United for development SACCO, UGX.135,819,249 to Samix Uganda Limited and UGX.291,048,709 to Duckhill Business Consults International Limited. Fraudulent transfer of UGX.0.834Bn to private companies for 2018/19  I noted shoddy works on the repairs of Mwikaye Bridge I noted challenges in the payroll management such as; 16 Staff in acting positions beyond the statutory period and retired staff were not paid their gratuity and pension. There were weaknesses in the management of the districts fleet including; Improper maintenance of Motor Vehicle Records, absence of a fleet management policy, Inadequate allocation of vehicles to key service centers and in adequate of Vehicle Maintenance Funding. I noted that Bubulo Health Centre IV faced challenges in delivery of services such as lack of adequate medical equipment and referral of mothers to other health units due to inability to provide caesarean operations and blood transfusion. I noted delayed progress of works at Bukimanyi Health Centre II to Health Centre III and Buwagogo and Sibanga and Seed Schools. I noted as well that no material testing report or performance security was availed. +3 Mbale MCOpinion Qualified  Insufficiently supported expenditure of UGX.0.419Bn.  I noted mischarge of expenditure worth UGX. 0.124Bn  I noted unaccounted for revenue for abattoir worth UGX. 0.072Bn. My review of the implementation of the 2015-2020 strategic plan revealed that 100% of the sampled targets were all partially achieved. The district collected 7% of its budgeted local revenue and received 61.98% of the funds expected from treasury and 64% from other government units was realized. The Municipal council/city had unspent balances of UGX. 0.752Bn (3.8%) which was sent back to treasury. I sampled 10 out-puts with 14 activities worth UGX.3.36bn representing 8.9% of the total budget and noted that 2 outputs with 3 activities worth UGX.0.3bn were fully quantified, and 8 outputs with 11 activities worth UGX.3.06bn were not quantified at all. Of the 2 quantified outputs with a total of 3 activities worth UGX.0.3bn assessed; 1 output with a total of 1 activity representing 50% was fully implemented while 1 output with a total of 2 activities representing 50% was partially implemented. The City/Municipal Council did not prepare and never submitted annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant stakeholders. + + + + +285 + + + + + + + + + + + + + +- I noted that 4th quarter performance reports was submitted after the deadline. + + + +- Receivables to a tune of UGX. 1.493Bn from both YLP and UWEP groups remained uncollected as at 30 June 2020. + + + +- I noted 11 pending and on-going court cases against the entity mainly related to wrongful contract termination. + + + +- I observed that Council did not conduct revenue assessment for the financial year under review but used previous year assessments, for budget approvals and execution. + +- I noted illegal revenue collection since no contract was signed between Ms Mbale United Tracks and Pickup Association and the Municipal Council for collection of revenue. + + + +- I noted that the entity spent/withdrew an excess sum of UGX.0.274Bn out of imprest account. + + + +- I noted that out of 168 approved staff structure, 44 (26%) posts were vacant. + + + + + +- I noted that the Council did not have land titles for over 54 pieces of land including schools and health centres + +- I noted that under remittance totalling to UGX.2.716Bn of deductions relating to LST, UNATU, PAYE, and UCLA. + + + + + +- I observed that a total of UGX.0.035Bn was paid to the Expert Concrete Producers for fencing Gangama Primary School but only 475 poles priced at UGX.0.023Bn were seen at the school’s store and these were not installed. + +- I noted shortcomings in the City/Municipal Council’s fleet management which included; the vehicles were recorded without sufficient details as required by the accountant General, failure to record motor vehicles in the fixed assets module of the GFMIS, no evidence of vehicle inspections and reconciliations, absence of a fleet management policy, failure to carry out annual inspections, in-adequate/no allocation of vehicles to key service centers, funding shortfall of the budgeted asset maintenance funds, failure to prepare a maintenance work plan, non- compliance with disposal conditions, missing council fleet, Vehicles impounded by court bailiffs and accident vehicles. + + + +- There was lack of adequate medical equipment, non-functioning and failure to properly maintain the medical equipment at Namatala HC IV. However, normal deliveries stood at 80.9%, Caesarean deliveries stood at 13.8%, referrals at 3.8% and maternal deaths at 1.2%. + + + +- Under physical planning, i observed that the Municipality did have an approved UPDP and detailed plans to facilitate physical developments, there was failure to fully constitute physical planning committee ,inadequate funding of the Detailed Plans of the Physical development plan activities and unauthorized alteration of physical Development Plan + + + + + +- I noted that the Municipal Council had not yet developed by-laws on the garbage management as required, failure to operationalize the Garbage Management Strategy and Plan. + + + +- The Municipal Council received only 9.4% (UGX.5 million) of the total funds budgeted for garbage management in the year under review, which was a 5% increase from 4.5% released the prior year. Besides, the volume of garbage generated keeps increasing as the population in the Municipal Council increases hence the non-functional compositing plant calls for adequate funding. Also the council did not undertake Public awareness and sensitization in the year under review and lacked equipment and facilities for Garbage collection and disposal. + +- I noted that most of the personnel lacked protective wear such as gum boots, cloves and clothing for garbage management. + + + + + +- I noted challenges in payroll management which include; irregular payment to 7 retired staff as salaries (UGX. 0,006Bn), payment of salary off IPPS (UGX 0.080Bn), payment of allowances to interdicted staff (UGX. 0.003Bn). + +286 + + + + + + + + + + + +  I noted that the municipal has an outstanding loan of UGX.139,069,089 from Housing Finance Bank for acquiring land in Bunambutye to be used for exchange with NFA land in the Municipal (forest section in Busamaga 23ha, and Tororo Road section - 600ha but no tree planting had taken place as per the initial plan and purpose for obtaining the loan. I noted that 190 municipal assets were not engraved as required by the regulations. +4 Butebo DLGOpinion Qualified  I noted irregular transfer of wage funds worth UGX.0.281Bn to Pallisa Teacher’s SACCO. I noted unjustified transfer of wage funds to Kabwangasi S.S.S totaling to UGX.0.064Bn My review of the implementation of the 2015-2020 strategic plan revealed that 6.25% of the sampled targets were fully achieved, 50% were partially achieved while 43.75% were not achieved at all. The district collected 86% of its budgeted local revenue and received 99% of the funds expected from treasury and 100.4% of the funds were received from other government units while 95% of funds expected from external sources were received by year end. The district had excess spent balances of UGX. 0.14Bn. I noted a challenge in quantification of out-puts which affects assessment of performance. Out of a sample of 9 outputs, 6 (67%) were fully quantified, 1 (11%) was insufficiently quantified while 2 (22%) were not quantified at all. Out of the 6 quantified out-puts, 4(67%) were fully implemented, while 2 (33%) were partially implemented. Out of four quarterly reports, none was submitted on time. I also noted cases of inaccurate reporting of performance. I noted that out of the UGX.0.209Bn received for Covid interventions, UGX.0.003Bn was not banked but used at source while UGX 0.169Bn (81%) was utilized. The balance of UGX.0.040Bn was banked on the national collection account. I noted weakness in the management of the intervention such as; insufficiently quantified work plans and irregularities in procurements of items. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution and there was no evidence that the distribution of the items whose value was not established was approved by the task force. There were also challenges in management of quarantine centers for instance lack of PPE for health workers. The district lacked land titles for 15 pieces which exposed the land to loss and encroachment I noted that the district collected only 80% (UGX 0.259Bn) of its Uganda Road Fund Budget. I also noted challenges under the URF such as; inadequate road equipment and delayed completion of emergency works. I noted failure to maintain Bulyambwa A- Kaberekeke B Community Access Road under the NUSAF3 project. There were weaknesses in the management of the districts fleet including; irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the format prescribed by Accountant general in the asset register, failure to carry out vehicle inspections and reconciliations, absence of fleet management policy, inadequate allocation of vehicles to key service centers, and non-disposal of obsolete assets. +5 Bulambuli DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 25% of the sampled targets were fully achieved and 75% were partially achieved. The district collected 100% of its budgeted local revenue and received 94% of the funds expected from treasury and 66.7% from other government units while + + + + +287 + + + + + + + + + + + + 94.3% funds budgeted from external sources was realized. The district had unspent balances of UGX 0.603Bn which was sent back to treasury. The district had an off-budget financing amounting to UGX0.108Bn for the year contrary to the budget execution circular. Out of a sample of 10 outputs, 5 (50%) were fully quantified, 3 (30%) were insufficiently quantified and 2 (20%) were not quantified at all. Out of a sample of 5 quantified outputs, only 2 (40%) were fully implemented and 3 (60%) were partially implemented. The District did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant stakeholders contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. I noted quarterly performance report of 4 was submitted beyond the deadline. I noted that the cash received of UGX.0.006Bn for management of COVID 19 interventions was not banked but used at source contrary to Paragraph 10.19.2 of the TIs, 2017. I also noted weaknesses in the management of the COVID interventions such as; insufficiently quantified work plans. The items that were received in kind were not valued as required by the Treasury Instructions, all items received were not taken on charge and there was also no evidence that the quality of items received was checked and verified before receipt of these items. I noted that the PPEs used at the COVID quarantine centers were not enough. I noted that the district had accumulated receivables to a tune of UGX.0.925Bn. I noted that the district had 498 posts vacant representing 28% out of an approved staffing establishment of 1,781. I noted that the district had land disputes in Bunamujje and Bukhalu primary schools. I noted that the district had received UGX.0.168Bn as emergency funds for the construction of Bufumbula Bridge but the construction had not been done. There were weaknesses in the management of the districts fleet including; failure to undertake vehicle inspections and reconciliations, non-recording of the assets in the assets management module in the IFMS, lack of a fleet management policy, failure to maintain fuel registers, failure to maintain vehicle movement log books, absence of annual motor vehicle inspections, inadequate fleet allocated to key service centres, inadequate of Vehicle Maintenance Funding, grounded and/or not repaired motor vehicles, failure to maintain repair and service analysis register and non-compliance with disposal conditions. I noted that Bulambuli Health Centre IV faced challenges in delivery of services such as lack of adequate medical equipment, failure to properly maintain the medical equipment, idle medical equipment and referral of mothers to other health units due to limited space for admission of all patients. Delayed progress of works at Bwikhonge and Bulago Health Centre II to Health Centre III and Bunambutye Seed Secondary School. +6 Kween DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 71.4% of the sampled targets were fully achieved, 14.3% were partially achieved while 14.3% were not achieved at all. The district collected 127% of its budgeted local revenue and received 97.3% of the funds expected from treasury and 43.7% from other government units while 35.8% funds budgeted from external sources was realized. The district had unspent balances of UGX 2.477Bn which was sent back to treasury. The district had an off-budget financing amounting to UGX0.040Bn for the year contrary to the budget execution circular. I also noted challenges in implementation of quantified outputs. Out of a sample of 12 outputs, 11 (92%) were fully quantified and 1 (8%) was insufficiently + + + + +288 + + + + + + + + + + + + quantified. Out of a sample of 11 quantified outputs, only 8 (73%) were fully implemented and 3 (27%) were partially implemented. I also noted cases of inaccurate reporting of performance. I also noted weaknesses in the management of the COVID interventions such as; insufficiently quantified work plans, irregularities in the procurement of items. The items that were received in kind were not valued as required by the Treasury Instructions, Non-cash items received were not taken on charge, the district did not maintain a record of non-cash donations and the respective donors and the motor vehicle (pick up) was not recorded in the fixed assets register. I noted that Receivables to a tune of UGX.0.942Bn from YLP and UWEP groups remained uncollected as at 30 June 2020. I noted encroachment the District land in Kaproron. There were weaknesses in the management of the districts fleet including; lack of budgets and plans to acquire motor vehicles, Un-updated Asset Management Module in the Financial Management system, failure to record vehicles in the format prescribed by the Accountant General, failure to carry out vehicle inspections and reconciliations, lack of a fleet management policy, insufficient fleet to the key service centres and inadequate of Vehicle Maintenance Funding. I noted that Kaproron HC IV faced challenges in delivery of services such as lack of adequate medical equipment, idle medical equipment, and referral of mothers to other health units. I also noted delayed completion of Kaptum HCII & Benet under UgIFT. Also the district did not undertake materials testing before use. I noted weaknesses in the payroll (Pension & Salary) Management such as; payment of salaries to retired staff, non-preparation of Payroll Reconciliations and failure to prepare/approve pay change reports. I noted challenges in the procurement of public works during the year such as; procurements worth UGX. 3.4Bn lacked performance securities, procurements worth UGX 3.8Bn lacked Contract Management Plans and Contract Management Reports and failure to dispose obsolete assets. +7 Tororo DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 40% of the sampled targets were fully achieved, 40% were partially achieved while 20% were not achieved at all. The district collected 40.1% of its budgeted local revenue and received 103% of the funds expected from treasury and 43% from other government units while 44.2% funds budgeted from external sources was realized. The district had unspent balances of UGX 2.2Bn which was sent back to treasury. I sampled 21 out-puts with 75 activities worth UGX.17.1bn representing 26.5% of the total budget and noted that 16 outputs with a total of sixty-seven (67) activities and expenditure worth UGX.4.2Bn were fully quantified and 5 outputs with 8 activities worth UGX.12.9Bn were not quantified. Of the 16 quantified outputs with a total of 67 activities worth UGX.4.2Bn assessed; 4 outputs with a total of 13 activities representing 25% were fully implemented while 9 outputs with a total of 13 activities representing 56% were partially implemented and 3 outputs with a total of fourteen 14 activities representing 19% were not implemented at all. The District did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant stakeholders. I noted that the 1st quarter performance report was submitted after the deadline. I also noted inaccuracies in these quarterly performance reports. I observed that all the local cash donations received for COVID intervention to a tune of UGX. 0.010Bn were not banked. Also the District receipted COVID funds to a tune of UGX. 256,444,299. These were absorbed 65% I also noted that some of the activities in the work plan for COVID management + + + + +289 + + + + + + + + + + + + were insufficiently quantified. I noted that for all donations in kind towards COVID, items received were not valued, taken on charge, there was no evidence of quality received, distribution of these items or acknowledgement of receipt by the beneficiaries. I noted that the PPEs used at the COVID quarantine centers were not enough, the quarantine center had no ambulance funds and the supplementary funds were not enough. I noted that 6 staffs had exceeded the duration in acting appointments  I noted there was sale of the district land by Uganda land Commission. I noted that there was failure to record all district land and buildings in the asset register. I noted that there was shoddy and incomplete construction of a five stance line pit latrine at Bumanda primary School at a cost of UGX.0.024Bn. I noted that there was incomplete construction of Outpatient department block at Panyangas Health centre III. I noted that there were incomplete construction activities of construction of Administration block at Nabiyoga sub county, renovation of a seven class room block at Mulanda P/S and construction of a community hall at Kirewa Sub County. Failure of district executive committee (DEC) to sit during the financial year. I noted shortcomings in the District’s fleet management which included; the vehicle was recorded without sufficient details as required by the accountant General. I further noted that this was not recorded in the fixed assets module of the GFMIS, there was no evidence of vehicle inspections and reconciliations, and absence of a fleet management policy. I noted that there was lack of adequate medical equipment at Tororo District, failure to maintain medical equipment’s, idle medical equipment and nonfunctional equipment’s at Tororo District hospital. I noted that there was slow progress of work in the upgrade of Kamuli HCII to HCIII and in the Construction of Malaba Seed Secondary School. +8 Sironko DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 12.5% of the sampled targets were fully achieved, 81.25% were partially achieved while 6.25% were not achieved at all. The district collected 48.2% of its budgeted local revenue and received 100% of the funds expected from treasury and 63% from other government units while 102% funds budgeted from external sources was realized. The district had unspent balances of UGX 0.318Bn which was sent back to treasury. I also noted challenges in implementation of quantified outputs. Out of a sample of 16 outputs, 11 (69%) were fully quantified, 3 (19%) were insufficiently quantified and 2 (12%) were not quantified at all. Out of a sample of 11 quantified outputs, only 7 (64%) were fully implemented while 4 (36%) were partially implemented. The District did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant stakeholders. All 4 quarterly performance reports were submitted after the quarterly deadlines. I also noted inaccuracies in these quarterly performance reports. I noted that for all donations in kind towards COVID, items received were not valued as required by the Treasury Instructions. I noted challenges in management of quarantine centers such as; PPEs were not enough for the health workers, in-adequate like mattresses, beds, utensils and in-adequate training of health workers. I noted that although the entity established a banana and coffee intercropped multiplication and production gardens on Mutufu and Buyola district land for revenue generation and promotion of crop and Livestock demonstrations, no coffee was intercropped on the farm, no staff was managing the firm and there + + + + +290 + + + + + + + + + + + + were no proper records for the sales/ revenue generated from the farm. Receivables to a tune of UGX.0.900Bn from YLP and UGX. 0.342Bn from UWEP groups remained uncollected. I noted shortcomings in the District’s fleet management which included; a vehicle was recorded without sufficient details as required by the accountant General, no evidence of regular inspection and reconciliation of vehicles in the assets register, lack of a fleet management policy,in- adequate allocation of vehicles to key service centres and inadequate motor vehicle maintenance funding. There was lack of adequate medical equipment, at Budadiri HC IV. Although, normal deliveries stood at 85.6 %, Caesarean deliveries stood at 11.8%, referrals at 2.6% and maternal deaths at 2.6%. I noted the delayed completion on construction of the Outpatient Department at Mutufu HCII and non-implementation of the planned Upgrade of Buyobo HCII to HCIII. I noted that no provision was made in the contract under the UgiFT programme for stone pitching to strengthen the embankments as well as stone pitching and culverts for a big gully that runs through the site as a result of effects of heavy down pour I noted that UGX.0.010Bn was paid to 22 retirees beyond their retirement period. +9 Bukwo DLGOpinion Qualified  My review of the implementation of the 2015-2020 strategic plan revealed that 90% were partially achieved while 10% were not achieved at all. The district collected 34.8% of its budgeted local revenue and received 99.8% of the funds expected from treasury and 53.4% from other government units while 54.8% funds budgeted from external sources was realized. The district had unspent balances of UGX 0.733Bn which was sent back to treasury. I sampled 19 out-puts with 33 activities worth UGX.3.57bn representing 16% of the total budget, and noted that 16 outputs with a total of 27 activities and expenditure worth UGX.2.758Bn were fully quantified, 1 output with a total of 2 activities and expenditure worth UGX.0.050Bn was insufficiently quantified and 2 outputs with a total of four (4) activities and expenditure worth UGX.0.766Bn was not quantified. Of the 16 quantified outputs with a total of 27 activities worth UGX.2.76Bn assessed; 11 outputs with a total of 21 activities representing 69% were fully implemented, while 5 outputs with a total of 6 activities representing 31% were partially implemented. The District did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant stakeholders I noted that all the 4 quarters monthly performance reports were submitted after the deadline. I also noted inaccuracies in quarterly performance reports. I also noted weaknesses in the management of the COVID interventions such as; insufficiently quantified work plans and irregularities in the procurement of items. Items received as in-kind donations towards the Covid-19 response were neither valued nor taken on charge, there was also no evidence of checking received items for quality and no evidence that distribution of these items was approved by the district task force. I also noted challenges in the quarantine centres such as the health workers did not have sufficient PPEs. I noted that the district had accumulated a receivables balance of UGX.0.710Bn.  There was under-remittance of PAYE tax of UGX.0.166Bn. The district lacked adequate road equipment only 11 out of the 32 are available and some of the available road equipment were not properly repaired and maintained. I noted shortcomings in the district’s fleet management, which included: failure to capture vehicles in the fixed assets module of the GFMIS, failure to record vehicles in the assets registrar using the format prescribed by the Accountant General; failure to maintain of fuel registers for the fuel consumed by district vehicles; and + + + + +291 + + + + + + + + + + + + lack of vehicle movement logbooks and service analysis records, absence of a fleet management policy and guidelines, allocation of a vehicle to an officer who was not entitled, whereas some departments were not adequately allocated vehicles. There was a lack of adequate medical equipment at Bukwo Health Centre IV, as well as a failure to properly maintain some medical equipment. I noted that Bukwo HCIV does not meet the minimum or basic package of health services required for that level. For instance, it lacked the minimum infrastructure facilities and the facilities were not being used for the purpose they were built. I noted that the hospital experienced challenges of underfunding, understaffing, inadequate facilities, inadequate security and inadequate equipment. Under the UgIFT programme I noted anomalies such as abandonment of works by contractors and a lack of regular site meetings for the construction of Chebinyiny Seed Secondary School and the upgrade of Amanang HC II and Kwirot HC II to HC III status. I noted challenges in the payroll management such as payment of salary not through IPPS. +10 Butaleja DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 36% of the sampled targets were fully achieved, 62% were partially achieved while 2% were not achieved at all. The district collected 97.4% of its budgeted local revenue and received 97.3% of the funds expected from treasury and 99% from other government units while 100% funds budgeted from external sources was realized. The district had unspent balances of UGX 0.642Bn which was sent back to treasury. I sampled 20 out-puts with 145 activities worth UGX.5.874bn representing 17% of the total budget and noted that 9 outputs worth UGX.2.461Bn were fully quantified, 3 outputs with a total of thirtyfour (34) activities and expenditure worth UGX.1.476Bn were insufficiently quantified and 8 outputs with 25 activities worth UGX.1.937Bn were not quantified. Of the 9 quantified outputs with a total of 86 activities worth UGX.2.461Bn assessed; 2 outputs (22%)with a total of 13 activities were fully implemented while 7 outputs (78%) with a total of 73 activities were partially implemented. The District did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant stakeholders contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. I noted that quarterly performance reports for Q1, Q2, and Q4 were submitted after the deadline. I also noted inaccuracies in these quarterly performance reports. I noted that for all donations in kind towards COVID, items received were not valued, taken on charge, there was no evidence of quality received, distribution of these items nor acknowledgement of receipt by the beneficiaries. I also noted challenges of the quarantine centres for example, the PPEs used at the COVID quarantine centres were not enough, no running water at the centre at the time of inspection, inadequate swabs at the isolation unit Absenteeism of some health workers I noted that there was no clear scope of works for which the UGX.0.119Bn had been expended on the construction of district headquarters- Butaleja House. I noted that funds to a tune of UGX.0.055Bn were not accounted for. I noted that there was noncompliance with the Monthly cash withdraws of UGX.0.781Bn. I noted that 3 district vehicles were abandoned in the garages. I noted shortcomings were observed in the District’s fleet management which included; the vehicles were recorded without sufficient details as required by the accountant General, un-updated fixed assets module of the GFMIS and there was no evidence of vehicle inspections and reconciliations, absence of a fleet + + + + +292 + + + + + + + + + + + + management policy, inadequate allocation of vehicles to key service centres, inadequate budget for maintenance over the previous three years and failure to prepare a maintenance work plan. I noted challenges at Busolwe Hospital such as; lack of adequate medical equipment. Furthermore, I noted that normal deliveries stood at 64%, Caesarean deliveries stood at 36%, referrals at 4.6% and maternal deaths at 1%. Delayed progress of works at Nakwasi Seed School. I noted as well that no material testing report was availed. +11 Namisindwa DLGOpinion Qualified  Diversion of wage funds to private companies totaling to UGX.0.412Bn was noted. My review of the implementation of the 2015-2020 strategic plan revealed that 64% of the sampled targets were fully achieved and 36% were partially achieved. The district collected 7% of its budgeted local revenue and received 107% of the funds expected from treasury and 89% from other government units while 1715% funds budgeted from external sources was realized. The district had unspent balances of UGX 0.624Bn which was sent back to treasury. I sampled 20 out-puts with 36 activities worth UGX.2.87bn and noted that 13 outputs with a total of twenty-five 25 activities (100%) and expenditure worth UGX.1.2Bn were fully quantified, 2 outputs with a total of five 05 activities and expenditure worth UGX.0.49Bn were insufficiently quantified, 5 outputs with 06 activities worth UGX.1.18Bn were not quantified. Of the 13 quantified outputs with a total of 25 activities worth UGX.1.2Bn assessed; 7 outputs with a total of 11 activities representing 54% were fully implemented while 6 outputs with a total of 14 activities representing 46% were partially implemented. The District did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant. I noted that all the 4 quarterly performance reports were submitted after the deadline. I also noted inaccuracies in these quarterly performance reports. I noted that for all donations in kind towards COVID, items received were not valued, taken on charge, there was no evidence of quality received, distribution of these items nor acknowledgement of receipt by the beneficiaries. I noted that the PPEs used at the COVID quarantine centers were not enough and Namisindwa being a porous border district required more funds for COVID-19 management. I noted overdue outstanding payables of UGX.0.341Bn.  Lack of updated register for land and buildings. I observed that sixteen (16) staff had exceeded the duration of their acting appointments. I noted shortcomings were observed in the District’s fleet management which included; 2 new vehicles and 18 other vehicles from prior years were recorded without sufficient details as required by the accountant General. The 18 vehicles were also missing in the assets register. I further noted that these were not recorded in the fixed assets module of the GFMIS and that for all vehicles there was no evidence of vehicle inspections and reconciliations, lack of a fleet management policy and in- adequate allocation of vehicles to key service centres. Lack of adequate medical equipment and failure to properly maintain the medical equipment at St. Elizabeth Magale HCIV. Furthermore, I noted that normal deliveries stood at 82.1 %, Caesarean deliveries stood at 16.1%, referrals at 1.5% and maternal deaths at 0.27%. I noted delayed progress of works at Mukoto Seed Secondary School. +12 Mbale RRHOpinion Qualified  I noted from the Statement of Changes in Equity two separate a prior year adjustments of UGX.1.186Bn and UGX.0.541Bn. I further noted from Note 27 a net adjustment of only UGX.0.099Bn. Failure to recognize external funding to a tune of UGX.0.632Bn. My review of the implementation of the 2015-2020 strategic plan revealed that + + + + +293 + + + + + + + + + + + + 75% of the sampled targets were fully achieved, 8% were partially achieved while 17% were not achieved at all. The district collected 75% of its budgeted local revenue and received 92% The hospital had unspent balances of UGX 0.197Bn which was sent back to treasury. I sampled 4 out-puts with 7 activities worth UGX.3.05bn representing 20% of the total budget and noted that 3 outputs with 6 activities worth UGX.2.85b n were fully quantified and 1 output with 1 activity worth UGX.0.2bn was not quantified. Of the 3 quantified outputs with a total of 6 activities worth UGX.2.85bn assessed; 2 outputs with a total of 5 activities representing 67% were fully implemented while 1 output with a total of 1 activities representing 33% was partially implemented. The Hospital did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant stakeholders. 3 quarterly performance reports were submitted on time and 1 was submitted after the quarterly deadline. I also noted inaccuracies in these quarterly performance reports. I noted that for all donations in kind towards COVID, items received were not valued, taken on charge, there was no evidence of quality received, distribution of these items or acknowledgement of receipt by the beneficiaries. I noted that the quarantine centers were poorly managed with low staffing levels and insufficient operational costs. Furthermore a number of hospital wards were not adhering to the COVID 19 standard operating procedures. 24 positions with-in the district staff structure were not filled  I noted that the hospital accumulated revenue arrears of UGX.4.184Bn I noted shortcomings in the Hospital’s fleet management which included; though the vehicles were recorded assets register, they were recorded without sufficient details as required by the accountant General. I further noted that they were not recorded in the fixed assets module of the GFMIS, no evidence of vehicle inspections and reconciliations, absence of a fleet management policy, failure to update journey log books, inadequate allocation of vehicles to the key service centres and inadequate Vehicle Maintenance Funding, lack of vehicles repair and service analysis registers and non-compliance with disposal conditions. There is lack of adequate medical equipment at the hospital, some medical equipment’s that are non-functioning/idle due to breakdown, failure to properly maintain the medical equipment I noted that the hospital made payments to retired and dead employees in form of salaries up to a tune of UGX.0.078Bn I noted that the hospital failed to fully constitute a contracts committee. I noted that the hospital had dilapidated Staff Quarters, lacked an air conditioner in the store and had poor garbage disposal. +13 Kapchorwa DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 42% of the sampled targets were fully achieved, 47% were partially achieved while 11% were not achieved at all. The district collected 88% of its budgeted local revenue and received 100.1% of the funds expected from treasury and 44% from other government units while 100% funds budgeted from external sources was realized. The district had unspent balances of UGX 1.382Bn which was sent back to treasury. The district had an off-budget financing amounting to UGX0.147Bn for the year contrary to the budget execution circular. I sampled 17 out-puts with 23 activities worth UGX.3.5bn representing 16.8% of the total budget, and noted that 1 output with 1 activity worth UGX.0.01Bn was not quantified to enable measurement of performance. Of the 16 quantified outputs with a total of 22 activities worth UGX.3.49Bn assessed; 10 outputs with a total of 16 activities representing 63% were fully implemented, while 6 outputs + + + + +294 + + + + + + + + + + + + with a total of 6 activities representing 37% were partially implemented. The District did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant stakeholders contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. I also noted that all the quarterly performance reports (PBS) were not timely submitted to MoFPED during the year. There were major anomalies in the management of in-kind donations towards the Covid-19 response. Donated items were not valued; there was no evidence of checking received items for quality and there was no evidence that distribution of these items was approved by the district task force. And the health workers at the quarantine centers did not have sufficient PPEs. Out of 159 positions in the approved staff structure, only 54 (34%) were filled whereas 105 (66%) remained vacant. The district did not implement IG’s recommendation which required the Accounting Officer to take action on the financial loss caused by the secretary land board (Mr. Chemisto Martin). The matter involved falsification of contract documents, which led to a loss of ground rent and premium amounting to UGX.0.330Bn per annum, over a period of 5 years. NUSAF3 project funds were released to the district in the last month of the year (June 2020). Additionally, the district experienced a budgetary shortfall of UGX.0.029Bn (3%). Shortcomings were observed in the district’s fleet management, which included: failure to record vehicles in the assets registrar using the format prescribed by the Accountant General; and lack of evidence of regular inspection and reconciliation of vehicles in the assets register, lack of a fleet management policy and guidelines , (16) officers were allocated vehicles that were beyond the recommended/prescribed engine capacities,some departments were not adequately allocated vehicles, in-adequate of vehicle maintenance funding and failure prepare a maintenance work plan. I assessed the status of basic medical equipment (maternal health) at Kapchorwa District Hospital and noted that there was a lack of adequate medical equipment at the hospital, failure to carry out regular maintenance of medical equipment, non-functioning equipment and high infant mortality (at least 6-10 children died each month). +14 Mbale DLGOpinion Qualified  I noted mischarge of expenditure to a tune of UGX.0.689Bn. I further observed that deductions from staff salaries amounting to UGX.0.577Bn were not remitted to Uganda Bankers Association/Uganda Consumer Lenders Association. My review of the implementation of the 2015-2020 strategic plan revealed that 35% of the sampled targets were fully achieved, 53% were partially achieved while 12% were not achieved at all. The district collected 44.2% of its budgeted local revenue and received 104% of the funds expected from treasury and 53.3% from other government units while 84% funds budgeted from external sources was realized. The district had unspent balances of UGX 1.661Bn which was sent back to treasury. I sampled 18 out-puts with 43 activities worth UGX.10bn representing 6.9% of the total budget and noted that 17 outputs with 39 activities worth UGX.3.5bn were fully quantified, 1 output with 4 activities worth UGX.6.5bn was partially quantified. Of the 17 quantified outputs with a total of 39 activities worth UGX.3.5bn assessed; 12 outputs with a total of 29 activities representing 71% were fully implemented while 5 outputs with a total of 10 activities representing 29% were partially implemented. All 4 quarterly performance reports were submitted after the quarterly deadlines respectively. I also noted inaccuracies in these quarterly performance reports. I noted that COVID procurements to a tune of UGX.0.033Bn were undertaken but evaluation reports and contracts for the procurements reviewed were never + + + + +295 + + + + + + + + + + + + approved by contracts committee. I noted that for all donations in kind towards COVID were not valued and were not taken on charge by the entity staff in accordance with the treasury instructions and the quality of items received was not checked and verified before receipt of these items and no evidence that the distribution of the items whose value was not established was approved by the task force. I noted shortcomings were observed in the fleet management which included; the vehicles were recorded without sufficient details as required by the accountant General while all these were not in the assets register. I further noted that these were not recorded in the fixed assets module of the GFMIS and that there was no evidence of vehicle inspections and reconciliations. I also noted that the entity did not have a fleet management policy, allocation of vehicles to an officer who was not entitled and inadequate allocation of vehicles to key service centers. I noted that Mbale District Hospital had inadequate medical supplies and there was failure to properly maintain the medical equipment. I noted that the Busiu HCIV does not meet the minimum or basic package of health services required for that level. I noted un spent balances amounting to UGX.0.207Bn on the construction of phase 2 of Bubenstye seed secondary school under the UgIFT programme and delayed physical progress of works at Chebinyiny Seed Secondary School. I noted challenges in the payroll management such as; Payment of salary not through IPPS (UGX. 0.087Bn). Under URF, I noted partial implementation of the planned targets and inadequate road equipment. I noted the delayed Completion of the Construction of a 5-stance pit Latrine at Nakaloke P/S and construction of Maumbe–Mukhwana Memorial Technical Institute in Bunghoko Sub-county. +15 Budaka DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 69% of the sampled targets were fully achieved, 23% were partially achieved while 8% were not achieved at all. The district collected 59% of its budgeted local revenue and received 108% of the funds expected from treasury and 120% from other government units while 23% funds budgeted from external sources was realized. The district had unspent balances of UGX 0.306Bn (1%) which was sent back to treasury. I also noted challenges in implementation of quantified outputs. Out of a sample of 18 outputs, 10 (56%) were fully quantified, 5 (28%) were insufficiently quantified and 3 (17%) were not quantified at all. Out of a sample of 10 quantified outputs, only 5 (50%) were fully implemented and 5 (50%) were partially implemented. The District did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant stakeholders contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. I noted that quarterly performance reports for 1, 3 and 4 were submitted after the deadline. I also noted inaccuracies in these quarterly performance reports. I noted weaknesses in the management of COVID interventions such as; insufficiently quantified work plans. I noted that for all donations in kind towards COVID, items received were not valued, taken on charge, there was no evidence that the quality of items received was checked and verified before receipt, there was no evidence that the distribution of the items whose value was not established was approved by the task force and there was no evidence of acknowledgement of receipt for all items the Entity distributed. There were also challenges in the management of quarantine centres for instance the PPEs used at the COVID quarantine centres were not enough and the + + + + +296 + + + + + + + + + + + + supplementary funds to run the quarantine centre which funds were also not enough. Pension and Gratuity arrears totalling to UGX.0.505Bn remained unsettled at close of the year. The District further failed to repay a local revenue advance of UGX.0.024Bn to MOFPED. I noted that the District processed titles for Kaderuna and Gadumire schools without surveying the land. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset register, failure to capture vehicles in the fixed assets module of the GFMIS, failure to inspect and reconcile vehicles to the asset register, lack of a fleet management policy, inadequate allocation of vehicles to key service centres, inadequate vehicle maintenance funding and failure to prepare a maintenance work plan. I noted that Budaka Health Center IV faced challenges in delivery of services such as lack of adequate medical equipment, failure to properly maintain the medical equipment and referral of mothers to other health units due to highly complicated cases for specialised services and inadequate staff such as the theatre assistants and anaesthetic officers. Shoddy and abandoned works on the upgrade of Namusita HCII to III and constructions works at Kamonkoli Seed School. +16 Tororo MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 16% of the sampled targets were fully achieved and 84% were partially achieved. The Municipal Council collected 25% of its budgeted local revenue and received 63% of the funds expected from treasury and 100% from other government units was realized. The Municipal Council had unspent balances of UGX 1.487Bn (15%) which was sent back to treasury. I also noted challenges in implementation of quantified outputs. Out of a sample of 9 outputs, 6 (66%) were fully quantified, 1 (11%) was insufficiently quantified and 2 (22%) were not quantified at all. Out of a sample of 6 quantified outputs, only 2 (33%) were fully implemented while 2 (33%) were partially implemented and 2 (33%) were not implemented at all. The municipality did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant stakeholders. I also noted that all the 4 quarterly performance reports (PBS) were not timely submitted to MoFPED. I noted that UGX 0.043Bn was diverted under the USMID Project. I noted shortcomings in the entity’s fleet management, which included: lack of evidence of regular inspection and reconciliation of vehicles in the assets register, lack of a fleet management policy and guidelines, failure to allocate vehicles to key service centers and failure prepare a maintenance work plan. I noted challenges at Bison Health Centre III such as; lack of regular maintenance of medical equipment, non-functional medical equipment, and lack of medical equipment. I studied the statistical data of mothers’ delivery at Bison Health Centre III and noted that a total of 129 deliveries were conducted at the facility during the year, all of which were normal deliveries. The facility did not register any maternal deaths during the period. I further noted that 9 cases which required more specialized attention were referred to higher health facilities. I noted anomalies in the management of garbage (solid waste) such as; non- adherence to by-laws on garbage management; lack of garbage management strategy and plan, failure to maintain records and data on garbage collected, inadequate funding for garbage management, inadequate public awareness and sensitization, inadequate garbage collection equipment and lack of protective wear. + + + + +297 + + + + + + + + + + + +  I reviewed the physical planning in the municipality and noted challenges such as; lack of approved PDP and detailed plans, lack of Urban Physical Planning Committee, inadequate funding of the detailed plans of the Physical Development Plan activities, unauthorized alteration of Physical Development Plan, lack of development permits in support of ongoing physical developments. +17 Bududa DLGOpinion Unqualified  The district collected 57.3% of its budgeted local revenue and received 100% of the funds expected from treasury and 60% from other government units while 77.8% funds budgeted from external sources was realized. The district had unspent balances of UGX 0.822Bn which was sent back to treasury. The district had an off-budget financing amounting to UGX0.453Bn for the year contrary to the budget execution circular. I also noted challenges in implementation of quantified outputs. Out of a sample of 14 outputs, 6 (42%) were fully quantified, 4 (29%) were insufficiently quantified and 4 (29%) were not quantified at all. Out of a sample of 6 quantified outputs, only 4 (67%) were fully implemented and 2 (33%) were partially implemented. The District did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED, MoLG, OPM and NPA. I noted that quarterly performance reports for 1 and 2 were submitted after the deadline. I noted that UGX.0.0015Bn of the COVID funds received was spent at source without banking it. The items that were received in kind were not valued as required by the Treasury Instructions, Some items were not taken on charge, quality of items received was not checked and verified before receipt and no evidence that the distribution of the items whose value was not established was approved by the task force. I noted that the District is currently battling legal cases against Kamcon Co. Ltd and Butta contractors. I noted that out of the approved staff structure of 1,824 positions 473 positions were vacant. I noted that the District had 20 acres of untitled land making it prone to encroachment. There were weaknesses in the management of the districts fleet including; failure to record assets in the asset register and in the format prescribed by the Accountant General, lack of a fleet management policy, allocation of vehicles that were beyond the recommended/prescribed engine capacities to the officers, insufficient fleet to the key service centres and inadequate of vehicle maintenance funding. I noted that under UGFIT, UGX.0.369Bn was unspent and returned to the UCF. I noted weaknesses in the payroll Management such as; under payment to Uganda Bankers Association/Uganda Consumer Lenders (UGX 0.0076Bn) and under remittance to UNATU (UGX 0.005Bn). I noted that Bududa Hospital faced challenges in delivery of services such as lack of adequate medical equipment, idle medical equipment, non-functioning equipment and referral of mothers to other health units due to stock out of blood and lack of antitheist. I noted challenges in the procurement of public works during the year such as; failure to fully implement the procurement plan and unreported micro procurements (UGX 0.011Bn). Under the implementation of the URF,I noted that there was a budget deficit of UGX 0.078Bn (27.16%) and un- maintained roads of Nalufu-Shazou and Bumayoka-Bunandutu. I noted non disposal of 3 vehicles, 10 motorcycles and 960 old Bududa hospital items. + + + + +298 + + + + + + + + + + + +  I noted failure to recover YLP and UWEP funds to a tune of UGX.0.539Bn and UGX.0.282Bn respectively. +18 Busia DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 25% of the sampled targets were fully achieved and 75% were partially achieved. The district collected 65.3% of its budgeted local revenue and received 99.8% of the funds expected from treasury and 53% from other government units while 41% funds budgeted from external sources was realized. The district had unspent balances of UGX 1.580Bn which was sent back to treasury. I also noted challenges in implementation of quantified outputs. Out of a sample of 23 outputs, 10 (44%) were fully quantified, 1 (4%) was insufficiently quantified and 12 (52%) were not quantified at all. Out of a sample of 10 quantified outputs, only 6 (60%) were fully implemented and 4 (40%) were partially implemented. The District did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant stakeholders contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. However, i noted inaccuracies in these quarterly performance reports. I observed that all the cash received under management of COVID intervention of UGX.0.010Bn was not banked but used at source. I also noted weaknesses in the management of the COVID interventions such as; insufficiently quantified work plans, irregularities in the procurement of items. The items that were received in kind were not valued as required by the Treasury Instructions, Items were not taken on charge by the entity staff, there was also no evidence that the quality of items received was checked and verified before receipt of these items, there was no evidence that the distribution of the items whose value was not established was approved by the task force. Cash donation totalling UGX.0.008Bn received from different donors as COVID intervention was not banked. I noted that out of 2,396 approved staff structure, 2,073 (86.5%) positions were filled leaving 323 (13.5%) posts vacant. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset register and in the format prescribed by the Accountant General, failure to carry out vehicle inspections and reconciliations, failure to capture the motor vehicles in the fixed assets module of the GFMIS, lack of a fleet management policy, allocation of vehicles that were beyond the recommended/prescribed engine capacities to the officers, inadequate allocation of vehicles to key service centers, in aadequate of Vehicle Maintenance Funding and failure to prepare a maintenance work plan. I noted that Masafu district Hospital faced challenges in delivery of services such as lack of adequate medical equipment and referral of mothers to other health units stock out of blood and no antitheist. I noted that the district did not prepare progress reports for the donor funds amounting to UGX.0.223Bn. I noted challenges in the procurement during the year such as; failure to fully implement the procurement plan of procurements worth UGX 1.102Bn. I noted that a number of vehicles and motorcycles had broken down and others were due for disposal because of their poor mechanical state. I noted failure to recover funds under the YLP to a tune of UGX. 1.097Bn as at 30th June 2020. +19 Busia MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 50% of the sampled targets were fully achieved, 30% were partially achieved while 20% were not achieved at all. The district collected 173.4% of its budgeted local revenue and received 93.8% of the funds expected from treasury and 8.2% from other government units while 35% funds budgeted from external sources was realized. The district had unspent + + + + +299 + + + + + + + + + + + + balances of UGX 6.137Bn (50.6%) which was sent back to treasury. I also noted challenges in implementation of quantified outputs. Out of a sample of 16 outputs, 13 (81%) were fully quantified and 3 (19%) were not quantified at all. Out of a sample of 13 quantified outputs, only 7 (54%) were fully implemented while 4 (31%) were partially implemented and 2 (15%) were not implemented at all. The Municipal Council did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant stakeholders. I noted that quarterly performance reports for 1 and 4 were submitted after the deadline. However, I noted inaccuracies in these quarterly performance reports. I noted that the Municipality had unspent balance of UGX 5.759Bn of which UGX.0.375Bn was transferred to treasury, leaving a balance of UGX.5.383Bn unspent. I noted that receivables to a tune of UGX.0.256Bn from YLP and UWEP groups remained uncollected as at 30 June 2020. Out of the approved staff structure of 512 positions 217 positions have been filled, leaving 215 positions vacant. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset register and in the format prescribed by the Accountant General, failure to trace vehicles to the staff or locations, lack of a fleet management policy, failure to allocate vehicles to the individuals, inadequate allocation of vehicles to key service centres, inadequate vehicle maintenance funding and failure to prepare a maintenance work plan. I noted that Busia Health Centre IV faced challenges in delivery of services such as lack of adequate medical equipment, idle medical equipment, and referral of mothers to other health units due to stock out of blood and no antitheist. I noted challenges in the implementation of physical development plans such as; lack of approved PDP and detailed Plans and inadequate funding of the detailed plans of the physical development plan activities. I noted that there were neither by-laws on Garbage management nor a Garbage Management Strategy and Plan at the Municipal Council. I also noted that Busia MC had inadequate; Public awareness and sensitization, funding for Garbage management and Equipment and facilities for Garbage collection and disposal. +20 Kibuku DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 67% of the sampled targets were fully achieved and 33% were partially achieved. The district collected 81% of its budgeted local revenue and received 96% of the funds expected from treasury and 76% from other government units. The district had unspent balances of UGX 1.3Bn which was sent back to treasury. I noted a challenge in quantification of out-puts which affects assessment of performance. Out of a sample of 10 outputs, 9 (90%) were fully quantified while 1 (10%) was not quantified at all. Out of the 9 quantified out-puts, 5(56%) were fully implemented while 4 (44%) were partially implemented. The District did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant stakeholders. The district received UGX.205M for COVID interventions and 80% of these funds were utilized. The balance of UGX.40m transferred to the treasury. I also noted weaknesses in the management of the COVID interventions such as; insufficiently quantified work plans and lack of district task force minutes. Items that were received in Kind were neither valued nor taken on charge, there was no evidence of quality checks before distribution and there was no evidence that the distribution of the items was approved by the task force as guided by the PSST. + + + + +300 + + + + + + + + + + + +  I noted that on 1st July 2020, there was theft of district cash worth UGX.0.0051Bn and various district property. I noted failure to maintain Kataka-Kiryolo-Nangololo Road under the URF project. The road surface is being washed away by running water and there delays in the installation of culverts. The district has a shortage of teachers, inadequate and inferior latrine facilities, inadequate desks and classrooms among others. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, and failure to carry out inspection and reconciliation of motor vehicles, absence of fleet management policy, inadequate allocation of vehicles to key service centers , and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kibuku Health Centre IV faced challenges in delivery of services such as lack of medical equipment, idle equipment and referral of mothers to other health units’ inability due to handle cases of obstructed labor, previous scars and cases in need of blood transfusion services. I noted that there is delayed progress on the Upgrade of Nalubembe HC II to HC III and Kabweri & Kasasira Seed Schools. I noted that the contractor (M/s Lab-Plus Ltd) who undertook the Construction of Kabweri & Kasasira Seed Schools did not present a valid performance security worth UGX.398m as stipulated in the contract. +21 Kapchorwa MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 87.5% of the sampled targets were fully achieved, 6.25% were partially achieved while 6.25% were not achieved at all. The municipality collected 6.8% of its budgeted local revenue and received 90% of the funds expected from treasury and 100.08% from other government was realized. The Municipality had unspent balances of UGX 0.30Bn (4%) which was sent back to treasury. I sampled 33 out-puts, 11 outputs with a total of 48 activities representing 33% were fully quantified, 2 outputs with 10 activities representing 6% were partially quantified while 20 outputs with 67 activities representing 60.6%were not quantified at all. Of the 11 outputs that were fully quantified with a total of 48 activities worth UGX.0.62bn, 4 outputs with 8 activities worth UGX.0.063Bn were fully implemented, 6 outputs with 38 activities worth UGX.0.555Bn were partially implemented and 1 output with 2 activities worth UGX.0.002Bn was not implemented. The Municipal Council did not prepare and submit the annual monitoring plans and quarterly monitoring reports to MoFPED and other relevant stakeholders. I noted that the entity submitted performance reports for Q1, Q2, and Q4 after the deadline. I also noted inaccuracies in these quarterly performance reports. I noted that the Municipal Council had outstanding payables of UGX.0.655Bn by the end of the year ended June, 2020. It observed that the Municipal Council remitted to Treasury only UGX.0.017Bn (34%) as local revenue recovered, leaving a balance of UGX.0.034Bn (66%) outstanding. I further noted that the outstanding advance was not recognized as a liability/payable in the financial statements. I observed that the Municipal Council lacked titles for Chepsukunya land and 2 acres of Ngoriomwo Land located in Kween District. I observed that the Eastern Division has under-utilized the CAIIP project’s market, milk cooler and Artificial insemination kit systems for over a decade. I observed withdrawals in excess of the cash limits amounting to UGX 0.025Bn. I noted that whereas a sum of UGX.0.050Bn (100%) was warranted and released for acquisition of motor vehicles, by the, funds were instead used to buy four new motorcycles. + + + + +301 + + + + + + + + + + + +  I noted shortcomings in the Municipal Council’s fleet management which included; lack of a fleet management policy, in-adequate allocation of vehicles to key service centers and motor vehicle LG008-046 was grounded due to an accident and FAW Tipper truck was grounded due to Engine Complications I noted challenges in the implementation Physical Development plan such as; expired physical and failure by the physical planning committee to meet regularly. I noted that challenges in garbage management such as; there were neither by- laws on Garbage management nor a Garbage Management Strategy and Plan at the Municipal Council, failure to undertake Public awareness and sensitization, inadequate equipment and facilities for Garbage collection and disposal, failure to ensure Clean Sanitary Conditions in the Municipality and limited funding for garbage management. There is lack of adequate medical equipment at Tegere’s Health Centre IV. I noted the delayed Completion of Works on the upgrade of Kaplelko HC II to HCIII. I noted that the Contractor was using one of the staff houses to store materials like wheel barrows, spades and cement. + MBARARA BRANCH +1 Kiruhura DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 33% of the sampled targets were fully achieved, 67% were partially achieved while 0% were not achieved at all. The district collected 58.1% of its budgeted local revenue and received 93% of the funds expected from treasury and 58% from other government units while 48% came from external sources. The district had unspent balances of UGX 0.902Bn which was sent back to treasury. All the 7 outputs were fully quantified but I noted challenges in implementation of quantified outputs where out of the 7 quantified outputs, 2 (29%) were fully implemented, while 5 (71%) were partially implemented. Out of 4 quarterly reports, only 3 (75%) were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX 0.205Bn for Covid interventions and UGX 0.165Bn was utilized and the balance of UGX 0.04Bn was returned to the consolidated fund. I noted that even though the district received and spent all the funds as per the COVID 19 work plan, the planned activities were not all fully implemented. I noted that 395 items were not taken on charge even though the COVID19 team reported them as donations. There were weaknesses in the management of the districts fleet including; improper maintenance of motor vehicle records, lack of a fleet management policy, insufficient fleet and irregular maintenance of the district vehicles. I also noted low absorption of UgIFT funds to a tune of UGX.0.312Bn (48%). There was also irregular payment of VAT worth UGX. 0.052Bn to the Contractor of UgIFT Project which is a World Bank project exempted from VAT. I also noted delayed completion of the project. Audit inspections carried out on 29th July 2020 revealed, that works were at wall plate level one month behind schedule. I noted that Kiruhura District HC IV faced challenges in delivery of services such as lack of adequate medical equipment, idle equipment and none functioning medical equipment. +2 Kanungu DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 0% of the sampled targets were fully achieved, 75% were partially achieved while 25% were not achieved at all. The District collected 37% of its budgeted local revenue and received 103% of the funds expected from treasury and 28% from other government units while 60% funds budgeted from external sources was realized. The district had unspent + + + + +302 + + + + + + + + + + + + balances of UGX 1.04Bn which was sent back to treasury. All the 7 sampled outputs were quantified but I noted challenges in implementation of quantified outputs where out of the 7 quantified outputs, 4 (57%) were fully implemented, while 3 (43%) were partially implemented. I noted that the entity did not prepare and submit annual monitoring plans and quarterly monitoring reports to MoLG, MOFPED and NPA. The entity did not submit performance reports for Q1, Q2, Q3, Q4 and there were no monitoring and evaluation reports submitted as required. I noted weaknesses in the management of Ebola and donor funds including inadequately accounted for funds for case management and Infection Prevention and Control, irregular payment of funds for deployment of Health Workers to carry out surveillance at point of entry to councillors and inadequately accounted for GAVI funds, I noted that the district irregularly allocated part of the stock farm land to a private developer with unclear responsibilities in the MOU and unaccounted for heifers at the stock farm, Weaknesses were also noted in the implementation of COVID-19 interventions including unbanked cash spent at source of 4m, under absorption of funds by 14%, diversion of 24m to non-Covid related activities, unaccounted for funds of 24m, no records for receipt and issue of donations received in kind, the quarantine centre at Matanda had no running water, had inadequate PPEs and no stores personnel. There were weaknesses in the management of the district fleet including; un- updated asset management module in IFMS, lack of a fleet management policy, non-inspection and reconciliation of vehicles and assets not recorded in the format prescribed by the Accountant General and no vehicle maintenance plans. I noted that Kanungu District Hospital faced challenges in delivery of services such as lack of adequate medical equipment, failure to properly maintain medical equipment due to inadequate funding, idle medical equipment such as infant incubator and the phototherapy unit, the hospital referred 2.4% of maternal cases to other facilities due to inadequate medical equipment at the hospital and the presence of better medical equipment at subordinate health facilities of Rugyeyo HC III and Kanungu HC IV, lack of other essential medical equipment for handling of maternal cases such as ultra sound scan equipment for expectant mothers, X- ray equipment and the hospital did not have an operating ambulance. +3 Mbarara DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 43% of the sampled targets were fully achieved, 57% were partially achieved while 0% were not achieved at all. The district collected 72% of its budgeted local revenue and received 101% of the funds expected from treasury and 70% from other government units while 54.2% funds budgeted from external sources was realized. The district had unspent balances of UGX 0.19Bn which was sent back to treasury. I also noted challenges in implementation of quantified outputs where out of the 16 quantified outputs, 11 (69%) were fully implemented, while 3 (19%) were partially implemented and 2 (13%) were not implemented at all. I noted that the District failed to submit quarterly monitoring reports to the Office of the Prime Minister contrary to the budget execution circular. I noted that all the four (100%) quarterly reports were not submitted on time. I noted through interactions with the task force members that donations in kind for COVID management were neither recorded in the district stores ledger nor receipted/acknowledged. A review of the statement of financial position and the note to the financial statements revealed that the entity had accumulated domestic arrears worth UGX. 0.240Bn in rent, goods and services consumed There were weaknesses in the management of the districts fleet including; + + + + +303 + + + + + + + + + + + + improper maintenance of motor vehicle records, lack of a fleet management policy and irregularities in the motor vehicle allocation. I noted that Bwizibwera HC IV faced challenges in delivery of services such as lack of adequate medical equipment and referrals of mothers due to power shortage, lack of oxygen, few C-section sets and few medical officers. I also noted delayed completion of Bukiro seed school project under UgIFT. +4 Ntungamo DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed the entity did not undertake an evaluation of the extent of achievement of the strategic objectives. The district collected 97% of its budgeted local revenue and received 101% of the funds expected from treasury and 26% from other government units while 63% funds budgeted from external sources was realized. The district had unspent balances of UGX 1.80Bn which was sent back to treasury. All the sampled outputs were quantified but I noted challenges in implementation of quantified outputs where out of the 22 quantified outputs, 6 (27%) were fully implemented, while 16 (73%) were partially implemented. I noted that all the two (50%) quarterly reports were not submitted on time, that is Q1 and Q4 reports I noted that there were no exceptions raised on management of COVID19 interventions There were weaknesses in the management of the districts fleet including; lack of a fleet management policy, Fixed Assets Register not updated with acquisition cost, dates of purchase, amounts and estimated useful life on transport equipment, inadequate allocation of vehicles to departments/ units, the drivers were not periodically tested, did not undergo medical examination and none of the drivers underwent periodic training including defensive driving at a recognized training institute, and inadequate funding for maintenance leading to grounding of some vehicles I noted that Itojo hospital faced challenges in delivery of maternal health services such as lack of adequate medical equipment, non-functioning equipment like auto claves and dropplers, referrals of mothers due to unreliable electricity, no stand-by generator, sometimes Stock out of blood and some cases that need specialist care. I also noted delayed completion of Kihanga Seed Secondary School project and delayed Upgrading of Kyamwasha and Karuruma HC IIs to HC IIIs under UgIFT and further noted that all the above projects were not yet functional and could not therefore be used. +5 Rukungiri DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 0% of the sampled targets were fully achieved, 100% were partially achieved while 0% were not achieved at all. The district collected 94% of its budgeted local revenue and received 99% of the funds expected from treasury and 60% from other government units while 48% funds budgeted from external sources was realized. The 7 sampled outputs were quantified and I noted challenges in implementation of quantified outputs where out of the 7 quantified outputs, 4 (57%) was fully implemented, while 3 (43%) were partially implemented. I noted that the entity did not prepare and submit annual monitoring plans and quarterly monitoring reports to OPM, MOFPED and NPA. There were also no monitoring and evaluation reports prepared by the entity A number of weaknesses were noted in the management of COVID-19 interventions relating to donations in kind such as items were not valued, all items were not taken on charge by the entity staff, there was also no evidence that the quality of items received was checked and verified before receipt of these items, there was no evidence that the distribution of the items whose value was + + + + +304 + + + + + + + + + + + + not established was approved by the task force and there was no evidence of acknowledgement of receipt for all items the Entity distributed. I noted that the district did not have a land title for Bwanga stock farm There were weaknesses in the management of the district’s fleet including; lack of a fleet management policy, none of the vehicles inspected were recorded in the format as prescribed by the Accountant General, which required among others capturing; estimated useful life, physical location, and condition, vehicles not annually inspected and reconciled in the assets register, inadequate allocation of vehicles to departments/units and inadequate vehicles for service delivery. I noted that Bugangari HC IV faced challenges in delivery of maternal health services such as lack of adequate medical equipment, failure to properly maintain medical equipment due to inadequate funding and referrals of 12% of mothers to other facilities due to lack of enough basic medical equipment and lack of blood transfusion services. I also noted delayed completion of Kebisoni Seed Secondary School project and delayed operationalization of Karuhembe HCIII as well as delayed physical progress of the works at Kasheshe Health Centre III under UgIFT and further noted that all the above projects were not yet functional and could not therefore be used I noted that the district paid VAT of 127m for the upgrade of Kasheshe HC II and Karuhembe HC II to HC IIIs yet the project is funded by the World Bank through the Ministry of Health and was VAT exempt I also noted inadequate funding to URF where only 89% of the budgeted funding was realized by the district which left 25.2 km of roads not worked on. +6 Isingiro DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 0% of the sampled targets were fully achieved, 100% were partially achieved while 0% were not achieved at all. The District collected 63% of its budgeted local revenue and received 90% of the funds expected from treasury and 37% from other government units while 58% funds budgeted from external sources was realized. The district had unspent balances of UGX 4.78Bn which was sent back to treasury. All the 25 outputs were fully quantified and I noted challenges in implementation of quantified outputs where out of the 25 quantified outputs, 5 (20%) were fully implemented, while 2 (8%) were partially implemented and 18 (72%) were not implemented at all. I noted that the entity did not prepare and submit annual monitoring plans and quarterly monitoring reports to MoLG, MOFPED and NPA. There were also cases of inaccurate reporting with inconsistencies in some cases between reported levels of performance and actual verification of performance I noted that the entity submitted performance reports for Q1, Q2, Q3, Q4 after the deadline given for submission of the reports. I noted staffing gaps where out of the approved structure of the district of 574 positions, only 307 (53.5%) positions were filled, leaving 267 (46.5%) positions vacant. I noted that the District did not have land titles for over 52 pieces of land including schools and health centres There were weaknesses in the management of the district fleet including; un- updated asset management module in IFMS, lack of a fleet management policy, non-inspection of vehicles and assets not recorded in the format prescribed by the Accountant General, grounded vehicles, vehicles without service charts, non- maintenance of fuel registers as well as non-valuation and disposal of recommended vehicles for disposal I noted that Rwekubo HC IV faced challenges in delivery of services such as lack of adequate medical equipment, failure to properly maintain medical equipment, + + + + +305 + + + + + + + + + + + + idle medical equipment such as Diathermy Machine and two Printers. An inspection of constructions indicated incomplete works on Construction of Seed Secondary School in Ruborogota sub-county at a contract price of UGX. 2,090,390,500. +7 Bushenyi DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 37.5% of the sampled targets were fully achieved, 62.5% were partially achieved. The district collected 50% of its budgeted local revenue and received 98% of the funds expected from treasury and 36% from other government units while 100% funds budgeted from external sources was realized. The district had unspent balances of UGX 0.56Bn which was sent back to treasury. All the sampled 16 outputs were fully quantified and I noted challenges in implementation of quantified outputs where out of a sample of 16 outputs, only 11 (68.8%) were fully implemented and 5 (31.2%) were partially implemented. I noted that all 4 (100%) quarterly reports were submitted late. The district received UGX 0.245Bn for COVID19 interventions and UGX 0.165Bn was utilized. The balance of UGX 0.080Bn was returned to the consolidated fund. I noted that the entity received a number of donations in kind and in cash for COVID management which were not recorded in the receipt books and stores ledgers of the district. There were weaknesses in the management of the districts fleet including; Un- updated Asset Management Module in the Financial Management system, lack of a fleet management policy and irregular allocation of motor vehicles. I noted that Kyabugimbi HC IV faced challenges in delivery of services such as lack of adequate medical equipment, and referral of mothers to other health units. I also noted delayed completion of Kabushaho seed school project and Kibazi Health Centre III under UgIFT. +8 Kisoro DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 7% of the sampled targets were fully achieved, 91% were partially achieved while 2% were not achieved at all. The District collected 31% of its budgeted local revenue and received 100% of the funds expected from treasury and 90% from other government units while 33% funds budgeted from external sources was realized. The district had unspent balances of UGX 1.247Bn which was sent back to treasury. All the sampled 13 outputs were quantified but I noted challenges in implementation of quantified outputs where out of the 13 quantified outputs, 10 (76%) were fully implemented, while 3 (24%) were partially implemented and 0 (0%) were not implemented at all. I noted that the entity did not prepare and submit annual monitoring plans and quarterly monitoring reports to MoLG, MOFPED and NPA. The entity did submit quarterly performance reports for Q2, Q3, Q4 after the required deadline while inconsistencies were noted in the reported level of performance and actual verified performance There were weaknesses in the management of the district fleet including; lack of a fleet management policy, non-inspection and reconciliation of vehicles and assets not recorded in the format prescribed by the Accountant General which required capturing; date of purchase, type of vehicle, registration number, acquisition cost, estimated useful life, physical location, and condition, one (1) vehicle was involved in an accident and was still in the garage, inadequate allocation of vehicles to service delivery, and no vehicle maintenance plans I noted that Kisoro District Hospital faced challenges in delivery of services such as lack of adequate medical equipment including B.P Machine-Maternity Ward, diagnostic Equipment set for the ward, diagnostic Equipment set for the MCH, Hospital Bed baby cot and Suction apparatus-foot and stock out of essential theatre materials, the hospital referred a number of maternal cases to other + + + + +306 + + + + + + + + + + + + facilities due to inadequate medical equipment at the hospital and stock out of essential medical equipment at the maternity ward A follow up on the implementation of UgIFT indicated delayed physical progress of the works at Nyakinama Seed School, Kagumba Health Centre III and facilities at Maregamo Health Centre III were not yet in use. +9 Sheema DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 40% of the sampled targets were fully achieved, 60% were partially achieved while 0% were not achieved at all. The district collected 64% of its budgeted local revenue and received 93% of the funds expected from treasury and 93% from other government units while 93% funds budgeted from external sources was realized. The district had unspent balances of UGX 1.72Bn which was sent back to treasury. All the 11 outputs were fully quantified and I noted challenges in implementation of quantified outputs where out of a sample of 11 outputs, only 8 (72.7%) were fully implemented and 3 (27%) were partially implemented. Out of four quarterly reports, only 3 (75%) were submitted on time. I noted that the in-kind donations were not all valued as required by the Treasury Instructions and there was also no evidence that the quality of items received was checked and verified before receipt of these items. There were weaknesses in the management of the districts fleet including; improper maintenance of motor vehicle records and inadequate allocation of fleet to key service centers I noted that Kitagata Hospital faced challenges in delivery of services such as; lack of adequate medical equipment and non- functioning medical equipment and referral of mothers to other health units due to inadequate equipment. I also noted delayed completion of Kigarama seed school project and Rugarama Health Centre III under UgIFT and inadequate contract supervision and monitoring. +10 Mbarara MCOpinion Unqualified  I noted that a sum of UGX.783,407,446 relating to general staff salary was paid as gratuity without authority from MOFPED. My review of the implementation of the 2015-2020 strategic plan revealed that 100% of the sampled targets were partially achieved. The Municipal collected 38% of its budgeted local revenue and received 88% of the funds expected from treasury while 69.2% came from other government units. The municipal had unspent balances of UGX 15,612,253,686 which was sent back to treasury. All the sampled outputs were quantified and I noted challenges in implementation of quantified outputs where out of the 14 quantified outputs, 10 (71%) were fully implemented, while 4 (29%) were partially implemented. The Quarterly performance reports for 1,2 and 4 quarters were submitted beyond the deadlines. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the format prescribed by the Accountant General, lack of approved a fleet management policy, insufficient fleet to key service centres and irregular maintenance of the Municipal vehicles. The municipal received UGX. 116,830,000 out of the budgeted UGX. 123,740,000 under the physical development unit indicating a funding gap of UGX.6,910,000. I observed that there were illegal structures in the municipality despite having served some with a notice of demolition. I noted inadequate cover of bylaws regarding management of garbage in the Municipal. I observed that there was failure by the Municipal Council to carry out procurement of Garbage collectors. + + + + +307 + + + + + + + + + + + +  I noted inadequate funding of garbage management despite the garbage volumes increasing every financial year. I noted that the dumping site worth 120 acres is inadequate. It was designed to handle 70 tonnes of garbage per day, however the tonnage has now increased to 140-180 tonnes per day. I noted that the USMID projects were underfunded to a tune of UGX. 257,881,504. I noted that under the USMID project, UGX 56,281,778 remained unutilized at the end of the FY and was not returned to the consolidation fund. +11 Kabale DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 25% of the sampled targets were fully achieved, 75% were partially achieved while 0% were not achieved at all. The district collected 42.16% of its budgeted local revenue and received 98% of the funds expected from treasury and 41.13% from other government units while 91.25% funds budgeted from external sources was realized. The district had unspent balances of UGX 1.49Bn which was sent back to treasury. The 9 sampled outputs were fully quantified but I noted challenges in implementation of quantified outputs where out of the 9 quantified outputs, 6 (69%) were fully implemented, while 3 (31%) were partially implemented. The Quarterly performance reports for 1, 2 and 4 quarters were submitted beyond the deadlines. I also noted cases of inaccurate reporting of performance. The district received a total of UGX 0.520Bn for COVID19 interventions. Out of UGX. 0.165Bn received from Treasury, UGX 0.162Bn (98%) was utilized. The balance of UGX 0.002Bn was returned to the consolidated fund. I noted that out of the approved structure of 529 positions, 204(45%) positions still remain vacant. I also noted that the scope of the internal audit was limited and the annual internal audit department work plans were not completed. There were weaknesses in the management of the districts fleet including; irregularities in planning for acquisition of motor vehicles, improper maintenance of motor vehicle records, un-updated asset management module in the financial management system, lack of a fleet management policy, insufficient fleet, irregularities in assessment of driver competence, irregular maintenance of the district vehicles and irregularities in disposal of vehicles. I noted that Maziba HC IV faced challenges in delivery of services such as lack of adequate medical equipment, failure to maintain medical equipment, none functioning medical equipment and referrals of mothers due to one doctor, one anaesthetist, no incubator an d blood transfusion services. I also noted delayed completion of Buhara seed school project and Kasheregyenyi HC III under UgIFT. I also noted failure of the District to submit a report on performance appraisal to the Ministry of Public Service before the deadline. +12 Ibanda DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 40% of the sampled targets were fully achieved and 60% were partially achieved. The district collected 66.7% of its budgeted local revenue and received 99% of the funds expected from treasury while 92% came from other Government Units. 63% of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.35Bn which was sent back to treasury. 7 outputs and 22 activities were fully quantified. Out of the 7 quantified out-puts, 4 (57%) were fully implemented, while 3 (43%) were partially implemented. There were weaknesses in the management of the districts fleet including, failure to record vehicles in the format prescribed by Accountant general, lack of regular inspection and reconciliation of vehicles in the assets register, absence of fleet + + + + +308 + + + + + + + + + + + + management policy, inadequate allocation of vehicles to key service centers, shortfalls in funds allocated for motor vehicle maintenance and failure to prepare maintenance work plans. I noted funding gaps under UGFIT to a tune of UGX.0.255Bn (10%) and unspent balance of UGX.0.022Bn. There were also delayed works under UGFIT particularly at Rwenshambya Seed schools and Kashozi Health Centre II I noted that Ishongororo Health Centre 1V faced challenges in delivery of services such as lack of medical equipment and poor maintenance of available equipment. +13 Mbarara RRHOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed the entity had not carried out a review on the status of implementation of the set 5 strategic objectives The Referral Hospital collected 94% of its budgeted NTR and received 110% of the funds expected from treasury and 827m was also received as an off budget financing without passing through the consolidated fund. The hospital had unspent balances of UGX 1.5Bn which was sent back to treasury. All the sampled 4 outputs were fully quantified and I noted that out of the 4 quantified outputs, all the 4 (100%) were fully implemented. I noted that the entity submitted annual monitoring plans and quarterly performance reports in time as required A review of the statement of financial position and the note to the financial statements revealed that the entity had accumulated domestic arrears worth UGX. 2.651Bn in pension arrears and other domestic arrears. I noted understaffing at the hospital where out of the 386 approved positions, only 301 positions (78%) were filled leaving 85 positions (22%) unfilled There were weaknesses in the management of the hospital fleet including; un- updated asset register, non-inspection of vehicles and regular reconciliation of assets, and some assets not recorded in the format prescribed by the Accountant General I noted that the hospital faced challenges in delivery of maternal health services such as inadequate medical equipment and non-functional equipment due to breakdown such as Vacuum extraction and monitors, while 0.3% maternal related deaths were registered and the hospital registered 23% referral cases to the National Referral Hospital though reasons for such referrals were not provided. +14 Bushenyi MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 60% of the sampled targets were fully achieved, 40% were partially achieved while 0% were not achieved at all. The MC collected 60% of its budgeted local revenue and received 96% of the funds expected from treasury and 65% from other government units while 0% funds budgeted from external sources was realized. The MC had unspent balances of UGX 0.42Bn which was sent back to treasury. All the 11 sampled outputs were fully quantified and I noted that out of the 11 quantified outputs, 4 (36%) were fully implemented, while 5 (46%) were partially implemented and 2 (18%) were not implemented at all. I noted that the entity submitted the Q1 performance report after the required deadline for submission. A review of the statement of financial position and the note to the financial statements revealed that the entity had accumulated domestic arrears worth UGX. 0.37Bn in deposits, employee costs and other goods and services I noted understaffing at the municipality where out of the 87 approved positions, only 32 positions (36.8%) were filled leaving 55 positions (63.2%) vacant There were weaknesses in the management of the Municipal’s fleet including; lack of a fleet management policy, there was no evidence of regular inspection and + + + + +309 + + + + + + + + + + + + reconciliation of vehicles in the assets register as well as inadequate allocation of vehicles to service delivery, un-updated asset management module in the financial management system, no transport officer was appointed thus repair and service analysis records were not maintained, one vehicle that was in use for over ten years above the recommended five years and its odometer was not working was not among the assets due for disposal. I noted that Bushenyi Municipal HC IV faced challenges in delivery of maternal health services such as lack of adequate medical equipment, Mothers referred to other health units represented 25% of reported cases and this was due to emergency obstetric services required I also noted weaknesses in implementation of the Urban Physical Development including lack of detailed and up to date approved Physical Development plan and failure to have a Fully Constituted Physical Planning Committee. I noted that the municipality had challenges in garbage management including lack of approved bye-laws, lack of garbage management strategy and plan, lack of records on garbage volumes collected, inadequate funding for garbage management, insufficient public sensitization about garbage disposal management and lack of adequate Equipment and facilities for Garbage Collection and Disposal. +15 Rubirizi DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 40% of the sampled targets were fully achieved, 60% were partially achieved while 0% were not achieved at all. The district collected 60% of its budgeted local revenue and received 99.8% of the funds expected from treasury and 74% from other government units while 5% funds budgeted from external sources was realized. The district had unspent balances of UGX 1.06Bn which was sent back to treasury. The sampled outputs were quantified and I noted challenges in implementation of quantified outputs where out of the 16 quantified outputs, 12 (75%) was fully implemented, while 4 (25%) were partially implemented. I noted that the entity did not prepare and submit annual monitoring plans and quarterly monitoring reports to OPM, MOFPED and NPA. There were also no monitoring and evaluation reports prepared by the entity Quarterly performance reports for 2 quarters that is Q1 and Q2 were submitted later after the deadline for submission of the above reports, with some inconsistencies noted between the reported level of performance and actual performance levels verified. I noted that the district is under staffed, where out of the 444 approved positions, only 228 positions were filled leaving 216 positions vacant There were weaknesses in the management of the district’s fleet including; lack of a fleet management policy, none of the vehicles inspected were recorded in the format as prescribed by the Accountant General, which required among others capturing; estimated useful life, physical location, and condition, Vehicles not captured in the fixed assets module of the GFMIS, increasing maintenance costs of vehicles due to aging fleet and vehicles above 250,000km and over 5 years were not recommended for boarding off. I noted that Maziba HC IV faced challenges in delivery of maternal health services such as lack of adequate medical equipment, failure to properly maintain medical equipment due to inadequate funding, non-functional Ultra sound scan machine (basic) for obstetrics due to break down, referrals of 9% of mothers due to severe hypertension in pregnancy, severely premature babies and severe anaemia due to lack of blood at the health centre. I also noted delayed completion of Ryeru Seed Secondary School project and delayed Upgrading of Munyonyia and Mushumba HC IIs to HC IIIs under UgIFT and further noted that all the above projects were not yet functional and could not therefore be used. +16 Kabale RRH  My review of the implementation of the 2015-2020 strategic plan revealed that + + + + +310 + + + + + + + + + + + + Opinion Unqualified 0% of the sampled targets were fully achieved, 100% were partially achieved while 0% were not achieved at all. The Referral Hospital collected 73% of its budgeted NTR and received 92% of the funds expected from treasury and 0% from other government units while 1.074bn of funds from external sources was realized. The hospital had unspent balances of UGX 0.29Bn which was sent back to treasury. All the 9 sampled outputs were quantified but I noted challenges in implementation of quantified outputs where out of the 9 quantified outputs, 8 (89%) were fully implemented, while 1 (11%) were partially implemented and 0 (0%) were not implemented at all. I noted that the entity submitted quarterly performance reports for Q2, Q3, Q4 after the deadline given for submission of the reports. I noted that the hospital only absorbed 36% of the funds received of 270m for implementation of COVID-19 interventions. There were weaknesses in the management of the hospital fleet including; un- updated asset management module in IFMS, lack of a fleet management policy, non-inspection of vehicles and assets not recorded in the format prescribed by the Accountant General, inadequate drivers, Non-assessment of vehicles for repair, non- disposal of recommended vehicles for disposal I noted that the hospital faced challenges in delivery of services such as inadequate medical equipment and non-functional equipment due to breakdown. The regional maintenance workshop also faced a number of challenges including inadequate funding, delay in accessing fuel as the driver has not been allocated a drivers code from RHITES SW, lack of a mobile workshop vehicle to quicken up our activities since the area is very big, spare parts and accessories not readily available for some equipment thus rendering the equipment unusable, obsolete equipment. An inspection of constructions indicated incomplete works on construction of Interns Hostels Complex at a contract price of UGX. 7bn, delayed progress of works, no guards at site, and no lockable gate which may expose materials on site to theft. +17 Sheema MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 27% of the sampled targets were fully achieved, 73% were partially achieved while 0% were not achieved at all. The MC collected 59% of its budgeted local revenue and received 98% of the funds expected from treasury and 60% from other government units while 0% funds budgeted from external sources was realized. The MC had unspent balances of UGX 0.573Bn which was sent back to treasury. I noted challenges in implementation of quantified outputs where out of the 7 quantified outputs, 4 (57%) were fully implemented, while 3 (43%) were partially implemented. I noted that the entity submitted performance reports for Q4 after the deadline given for submission of the reports There were weaknesses in the management of the Municipal’s fleet including; lack of a fleet management policy, un-updated asset register with missing vital information such as acquisition cost, dates of purchase, amounts and estimated useful life on transport equipment. There was also no evidence of regular inspection and reconciliation of vehicles in the assets register as well as inadequate allocation of vehicles to service delivery, 4 vehicles above 250,000km and over 5 years were not recommended for disposal I noted that Sheema Municipal HC IV faced challenges in delivery of maternal health services such as lack of adequate medical equipment and referrals of 10% of mothers due to lack of adequate resources to manage all the cases at all times, complicated cases that require medicines that are not available at the facility or cases that require specialists’ attention among others + + + + +311 + + + + + + + + + + + +  I also noted weaknesses in implementation of the Urban Physical Development including lack of detailed and approved Physical Development plan and illegal structures in the Municipal council I noted that the municipality had inadequate funding for garbage management, inadequate equipment for garbage collection and lack of treatment facility and compost plant I noted delayed Upgrading of Kitojo and Kashozi HC II’s to HC III’s under the UgIFT project. +18 Buhweju DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 82% of the sampled targets were fully achieved, 18% were partially achieved while 0% were not achieved at all. The district collected 61% of its budgeted local revenue and received 100% of the funds expected from treasury, 79% from other Government units while 100% of funds expected from external sources were also received by year end. The district had unspent balances of UGX 0.768Bn which was sent back to treasury. The district had off-budget financing amounting to UGX 0.05Bn for the year contrary to the budget execution circular All the 18 outputs were fully quantified but I noted challenges in implementation of quantified outputs; Out of the 18 quantified out-puts, 14 (77.8%) were fully implemented, while 4 (22.2%) were partially implemented. The quarterly 4 performance report forwas submitted beyond the deadline. The district received UGX 0.205Bn for Covid interventions and UGX0.165Bn was utilized. UGX 0.04Bn was not utilized and returned to the consolidated funds. I noted delayed completion of Projects UgIFT projects namely; Construction of St. Anthony Kyankanda SEED School, Upgrading of Engaju and Mushasha HC II to HC III and Upgrade of Rushambya HC II to HC III by over nine months. I also observed irregular VAT payment worth UGX. 0.062Bn to the contractor under UgIFT for upgrading Rushambya HC II to HCIII which is contrary to VAT laws. Under the URF, the district received only 73% of the budgeted funds for maintenance of District roads as a result 51.8kms were not maintained. There were weaknesses in the management of the districts fleet including; Incomplete Motor Vehicle Records, Lack of a fleet management policy and guidelines, insufficient fleet and irregular maintenance of the vehicles. I noted none payment of verified pension and gratuity claimants of UGX 0.397Bn. I noted that Buhweju District HC IV faced challenges in delivery of services such as lack of medical equipment, idle equipment, none functioning of equipment, and referrals of mothers due to obstructed labour, preterm labour, foetal distress, foetal abnormalities pregnancy related bleeding and breech but also attributed to inadequate staff. +19 Ibanda MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 75% of the sampled targets were fully achieved, 25% were partially achieved while 0% were not achieved at all. The MC collected 57% of its budgeted local revenue and received 97% of the funds expected from treasury and 66% from other government units while 0% funds budgeted from external sources was realized. The MC had unspent balances of UGX 0.078Bn which was sent back to treasury. All the 8 sampled outputs were quantified and I noted challenges in implementation of quantified outputs where out of the 8 quantified outputs, 6 (75%) were fully implemented, while 2 (25%) were partially implemented. I noted that the MC did not prepare and submit annual monitoring plans and quarterly monitoring reports to MoLG, MOFPED and NPA. Inadequate funding of road funds where there was a shortfall of UGX. 95,613,490 + + + + +312 + + + + + + + + + + + + (27%) which left 12.25 km of planned roads unworked and some roads eroded due to poor drainage There were weaknesses in the management of the Municipal’s fleet including; un- updated asset management module in IFMS, lack of a fleet management policy, non-recording of vehicles in the asset register, some vehicles not recorded in the prescribed format by the Accountant General. There was also no evidence of regular inspection and reconciliation of vehicles in the assets register as well as inadequate allocation of vehicles I noted that Ibanda HC IV faced challenges in delivery of services such as lack of adequate medical equipment, irregular maintenance of medical equipment, and referrals of mothers due to inadequate supplies and need for advanced management. I also noted weaknesses in implementation of the Urban Physical Development including lack of detailed and approved Physical Development plan, lack of a fully Constituted Physical Planning Committee, inadequate funding of the detailed Plans of the Physical Development Plan Activities and unauthorized Alteration of Physical Development Plan. I noted that the municipality lacked adequate Equipment and facilities for Garbage Collection and Disposal and protective gear for waste handlers. I noted that the MC did not prepare a contracts register. +20 Rukiga DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 17% of the sampled targets were fully achieved, 83% were partially achieved while 0% were not achieved at all. The district collected 3.66% of its budgeted local revenue and received 91.61% of the funds expected from treasury and 98.1% from other government units. The district had unspent balances of UGX 0.28Bn which was sent back to treasury. All the 8 sampled outputs were Quantified but I noted challenges in implementation of quantified outputs where out of the 8 quantified outputs, 6 (75%) were fully implemented, while 2 (25%) were partially implemented. I noted that the District did not prepare and submit the annual monitoring plans to MoFPED, MoLG and NPA and also did not submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required. I noted that out of four quarterly reports submitted, quarters 1, 2 and 4 were submitted late. I noted that 107 (51.4%) positions were vacant out of the approved structure of 208 approved positions. There were weaknesses in the management of the districts fleet including; improper maintenance of motor vehicle records, lack of a fleet management policy, irregularity in allocation of motor vehicle and insufficient allocation of fleet to key service centers. I noted that Mparo HC IV faced challenges in delivery of services such as lack of adequate medical equipment, failure to maintain the medical equipment, non- functioning equipment and referral of mothers due to the inadequacy of the staff to perform caesarean section. I also noted delayed completion of Rwamucucu seed school project under UgIFT. +21 Kabale MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 8 targets (100%) of the sampled targets were partially achieved. The Municipal collected 18.8% of its budgeted local revenue and received 87.8% of the funds expected from treasury while 63% came from other government units. The municipal had unspent balances of UGX 2.966 Bn which was sent back to treasury. All the 13 outputs were fully quantified and I noted challenges in implementation of quantified outputs where out of a sample of 13 outputs, only 7 (53.8%) were fully implemented while 5 (38.5%) were partially implemented and 1 (7.7%) were + + + + +313 + + + + + + + + + + + + not implemented at all. I also noted that the entity did not prepare and submit the annual monitoring plans to MoFPED, MoLG and NPA and also the entity did not also submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required. Out of four quarterly reports, all 4 (100%) were submitted late. I also noted that 705 positions were vacant (49.8%) out of the approved structure of 1,415 approved positions. There were weaknesses in the management of the municipal’s fleet including; failure to capture the vehicles in the fixed assets module of the GFMIS, lack of approved a fleet management policy, insufficient fleet to the key service centers and inadequate vehicle maintenance funding. I noted that Municipal HC IV faced challenges in delivery of services such as lack of adequate medical equipment and referral of mothers to other health units due to the lack of a fully functional theatre. I noted challenges under the garbage management such as; inadequate funding for garbage management, failure to undertake public awareness an sensitization and inadequate equipment and facilities for garbage collection and disposal. I noted challenges under the physical development unit which include; lack of an approved UPDP and detailed plans to facilitate physical developments and inadequate funding of the detailed plans of the physical development plan activities. I noted that UGX 0.104Bn (24.3%) for USMID Municipal Institutional Strengthening Grant (MISG) remained unutilized. I noted that 4th quarter funds (UGX. 0.221Bn) for the Uganda Road Fund programme was not released. +22 Ntungamo MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 64% of the sampled targets were fully achieved, 18% were partially achieved while 18% were not achieved at all. The MC collected 53% of its budgeted local revenue and received 82% of the funds expected from treasury and 55% from other government units while 0% funds budgeted from external sources was realized. The MC had unspent balances of UGX 2.47Bn which was sent back to treasury. All the sampled outputs were quantified but I noted challenges in implementation of quantified outputs where out of the 9 quantified outputs, 8 (89%) were fully implemented, while 1 (11%) was partially implemented. I noted that the MC submitted reports for 2 quarters after the deadlines that is Q1 and Q2 There were weaknesses in the management of the Municipal’s fleet including; lack of a fleet management policy, un-updated asset register with missing vital information such as acquisition cost, dates of purchase, amounts and estimated useful life on transport equipment, drivers did not undergo driving test by the Chief Mechanical Engineer prior to assumption of duty, none of them underwent periodic training including defensive driving none of them had undergone periodic testing on traffic regulations and did not undertake medical checkups. There was also no evidence of regular inspection and reconciliation of vehicles in the assets register as well as inadequate allocation of vehicles I noted that Ntungamo HC IV faced challenges in delivery of maternal health services such as lack of adequate medical equipment and referrals of 24% of mothers due to need for further management as a result of obstetric complications I also noted weaknesses in implementation of the Urban Physical Development including lack of detailed and approved Physical Development plan, lack of a fully Constituted Physical Planning Committee, inadequate funding of the detailed Plans of the Physical Development Plan Activities and unauthorized Alteration of Physical + + + + +314 + + + + + + + + + + + + Development Plan. I noted that the municipality had inadequate funding for garbage management where only 82% of the budgeted for funds were received. I noted that the MC did not budget for USMID funding but received unbudgeted for funds of 2.4bn. +23 Mitooma DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 38% of the sampled targets were fully achieved, 33% were partially achieved while 29% were not achieved at all. The district collected 71% of its budgeted local revenue and received 97% of the funds expected from treasury and 91% from other government units while 0% funds budgeted from external sources was realized. The district had unspent balances of UGX 1.09Bn which was sent back to treasury. All the sampled outputs were quantified but I noted challenges in implementation of quantified outputs where out of the 16 quantified outputs, 8 (50%) were fully implemented, while 8 (50%) were partially implemented and 0 (0%) were not implemented at all. I noted that all the four (100%) quarterly reports were not submitted on time. I noted that by the time of audit, the COVID-19 quarantine centre was already closed. I was not provided with records pertaining to establishment of the quarantine centre nor reasons for its closure. There were weaknesses in the management of the districts fleet including; lack of a fleet management policy, acquired vehicles and motorcycles not in the district workplan/budget nor procurement plan as they were donated to the district though the Central Government did not surrender the log books for the fleet, Fixed Assets Register not updated with acquisition cost, dates of purchase, amounts and estimated useful life on transport equipment, inadequate allocation of vehicles to departments/ units, inadequate funding for maintenance leading to grounding of some vehicles I noted that Maziba HC IV faced challenges in delivery of maternal health services such as lack of adequate medical equipment, failure to properly maintain medical equipment, non-functional medical equipment such as Penguin sucker and neonatal and referrals of mothers due lack of Anesthetic, gloves, sutures, unreliable electricity, Sometimes Stock out of blood and some cases that need specialist care. I also noted delayed completion of Mayanga Seed Secondary School project and delayed Upgrading of Nyakishojwa and Bukuba HC IIs to HC IIIs under UgIFT and further noted that all the above projects were not yet functional. +24 Rukungiri MCOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 38% of the sampled targets were fully achieved, 50% were partially achieved while 12% were not achieved at all. The MC collected 45% of its budgeted local revenue and received 99% of the funds expected from treasury and 47% from other government units while 0% funds budgeted from external sources was realized. The MC had unspent balances of UGX 0.656Bn which was sent back to treasury. I noted that out of the 2 quantified outputs, 2 (100%) were fully implemented. I noted that the entity did not prepare and submit the annual monitoring plans to MoFPED, MoLG and NPA as well as quarterly monitoring reports to the Office of the Prime Minister and MoFPED. There were weaknesses in the management of the Municipal’s fleet including; lack of a fleet management policy, un-updated asset register with missing vital information such as Model/Type, Engine Type, Engine No, Chassis No., Original Cost on transport equipment. There was also no evidence of regular inspection and reconciliation of vehicles in the assets register as well as inadequate allocation of vehicles to service delivery. + + + + +315 + + + + + + + + + + + +  I noted that Rukungiri Municipal HC IV faced challenges in delivery of maternal health services such as lack of adequate medical equipment, failure to properly maintain medical equipment due to inadequate funding, and referrals of 26% of mothers to other facilities due to lack of enough basic medical equipment and lack of blood transfusion services I also noted weaknesses in implementation of the Urban Physical Development including lack of detailed and approved Physical Development plan, failure to have a Fully Constituted Physical Planning Committee, inadequate funding of the detailed plans of the physical development plan activities, unauthorized alteration of physical development plan and inadequacies in the physical work plan where key expected outputs were not elaborately captured. I noted that the municipality had inadequate Equipment and facilities for Garbage Collection and Disposal and lacked adequate protective gear for waste handlers. I noted delayed operationalization of Kitimba HCIII despite the facility being completed under the UgIFT project. I noted irregular payment of VAT under the contract yet the contract was funded by the World Bank through the Ministry of Health and was VAT exempt I noted inadequate funding under URF where only 73% of budgeted funds were realized leading to unimplemented activities. +25 Rubanda DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed the entity did not undertake an evaluation of the extent of achievement of the strategic objectives. The district collected 15% of its budgeted local revenue and received 99% of the funds expected from treasury and 76% from other government units while 88% funds budgeted from external sources was realized. The district had unspent balances of UGX 1.80Bn which was sent back to treasury. All the sampled outputs were quantified but I noted challenges in implementation of quantified outputs where out of the 13 quantified outputs, 1 (11%) was fully implemented, while 12 (89%) were partially implemented and 0 (0%) were not implemented at all. I noted that the entity did not prepare and submit annual monitoring plans and quarterly monitoring reports to OPM, MOFPED and NPA. There were also no monitoring and evaluation reports prepared by the entity as well as quarterly performance reports to assess performance. A number of weaknesses were noted in the management of COVID-19 interventions relating to donations in kind such as items were not valued, all items were not taken on charge by the entity staff, there was also no evidence that the quality of items received was checked and verified before receipt of these items, there was no evidence that the distribution of the items whose value was not established was approved by the task force and there was no evidence of acknowledgement of receipt for all items the Entity distributed. There were weaknesses in the management of the district’s fleet including; lack of a fleet management policy, Fixed Assets Register not updated with acquisition cost, dates of purchase, amounts and estimated useful life on transport equipment, inadequate allocation of vehicles to departments/ units and vehicles not regularly inspected and reconciled, I noted that Hamurwa HC IV faced challenges in delivery of maternal health services such as lack of adequate medical equipment, failure to properly maintain medical equipment due to inadequate funding, referrals of 12% of mothers due to inadequate basic medical equipment and blood transfusion services. I also noted inadequate funding from URF where only 73% of budgeted for funds were received. +26 Kisoro MC Opinion  My review of the implementation of the 2015-2020 strategic plan revealed that as a 2-year-old entity, Kisoro Municipal was not significantly represented on NDP 2. + + + + +316 + + + + + + + + + + + + Unqualified  The Municipal collected 21.4% of its budgeted local revenue and received 99.6% of the funds expected from treasury while 55% came from other government units. The municipal had unspent balances of UGX 0.312Bn which was sent back to treasury. All the 6 outputs were fully quantified and I noted challenges in implementation of quantified outputs where out of a sample of 6 outputs, only 4 (67%) were fully implemented and 2 (33%) were partially implemented. Out of four quarterly reports, only 3 (75%) were submitted on time. There were weaknesses in the management of the Municipals fleet including; improper maintenance of motor vehicle records, lack of approved a fleet management policy and insufficient fleet to the key service centers. I noted challenges in garbage management such as; lack of garbage management by-laws, lack a Garbage Management Strategy and Plan, inadequate funding, inadequate public awareness and sensitization, inadequate equipment and facilities for garbage collection and disposal. I noted challenges in the implementation physical development plans such as; lack of approved UPDP and detailed Plans, inadequate funding, failure to have a fully constituted physical planning committee and lack of development permits in support of on-going Physical Developments. I noted that UGX.0.068Bn for upgrading Zindiro health centre II to HC III was not utilized under the UGFIT. I noted that Municipal’s newly built Zindiro Health Centre III faced challenges in delivery of services such as; failure to put the facility to the intended use and inadequate health staff. +27 Kazo DLGOpinion Unqualified  My review of the implementation of the 2015-2020 development plan revealed that as a district, Kazo’s targets were captured in Kiruhura district and had not yet developed a strategic plan of its own. The district collected 8.8% of its budgeted local revenue and received 94.5% of the funds expected from treasury while no (0%) funds expected from external sources were received by year end. The district had unspent balances of UGX 0.367Bn which was sent back to treasury. The district had off-budget financing amounting to UGX 0.130Bn for the year contrary to the budget execution circular All the outputs were quantified and Out of the 12 quantified out-puts, 10 (83%) were fully implemented, while 2 (17%) were partially implemented. There were weaknesses in the management of the districts fleet including; failure to record vehicles in the format prescribed by Accountant general in the assets register, failure to carry out regular inspection and reconciliation of vehicles, un- updated Asset Management Module in the Financial Management System, absence of fleet management policy, inadequate allocation of vehicles to the key service centers and failure to prepare maintenance work plans. I noted unspent funds under UGFIT of UGX. 0.360Bn which was sent back to the consolidated fund. There were also delayed works under UGFIT particularly at Nkungu health center III upgrade I noted that Kazo Health Centre 1V faced challenges in delivery of services such as lack of medical equipment, idle equipment and poor maintenance of available equipment. +28 Rwampara DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that the district adopted strategic objectives from the mother district of Mbarara since it was only for one year in operation. The district collected 23% of its budgeted local revenue and received 98% of the funds expected from treasury and 104% from other government units while 0% funds budgeted from external sources was realized. The district had unspent balances of UGX 0.34Bn which was sent back to treasury + + + + +317 + + + + + + + + + + + +  All the sampled outputs were quantified but I noted challenges in implementation of quantified outputs where out of the 20 quantified outputs, 19 (95%) was fully implemented, while 1 (5%) was partially implemented. I noted that the entity submitted the 4 quarterly performance reports after the required deadlines. I noted that a number of in-kind donations were not recorded in the receipt books and stores ledgers of the district. I noted that the District did not have land titles for over 89 pieces of land including schools and health centres There were weaknesses in the management of the district’s fleet including; lack of a fleet management policy, none of the vehicles inspected were recorded in the format as prescribed by the Accountant General, which required among others capturing; estimated useful life, physical location, and condition, vehicles not annually inspected and reconciled in the assets register, inadequate allocation of vehicles to departments/units as the district only had one vehicle, there was no staff designated as transport officer in the district, as a result, fuel registers and monthly fuel reconciliations were not done I noted that Kinoni HC IV faced challenges in delivery of maternal health services such as lack of adequate medical equipment, failure to properly maintain medical equipment due to delays by regional medical maintenance workshop in Kabale to work on the machines even after requesting for repair services and non-functional Ultra sound scan machine (basic) for obstetrics. I also noted delayed Implementation of Upgrade of Nyaruhandagazi HC II to HC III which led to unutilized funds amounting to 338m. + MOROTO BRANCH +1 Nakapiripirit DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that 75% of the strategic targets were fully achieved, 25% were partially achieved. The district collected 88.9% of its budgeted local revenue and received 105.47% of the funds expected from treasury while 54.06% of funds expected from external sources were received by year end. The district had unspent balances of UGX2.254Bn which was sent back to treasury. I noted a challenge in quantification of out-puts which affects assessment of performance. Out of a sample of 29 outputs 27 (93%) were fully quantified, while 2 (6.9%) were not quantified at all. Out of the 27 quantified out-puts, 8 (30%) were fully implemented, while 9 (33%) were partially implemented and 10 (37%) were not implemented Out of four quarterly reports, none were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX 191,506,951 for Covid interventions and UGX 165,530,229 was utilized. Only items worth UGX.25, 976,722 that were received in Kind were valued. There were also challenges in management of quarantine centers for instance lack of PPE for health workers and proper storage facilities. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance. I noted delayed physical progress of works under UgIFT. I noted that Tokora HC IV faced challenges in delivery of services such as lack of medical equipment and non-functioning equipment. I noted that the district paid un-disclosed gratuity arrears worth UGX.421,790,070. I noted anomalies in the payment of salaries. + + + + +318 + + + + + + + + + + + +2 Abim DLG + +- I noted that funds totalling to UGX.1.12 billion were irregularly diverted from the activities on which they were budgeted and spent on other activities without Opinion seeking and obtaining the necessary approvals Qualified +- The district also had unaccounted for administrative advances amounting to UGX.146.3 million. This receivable was not properly disclosed in the financial statements. + + + +- My review of the implementation of the 2015-2020 Strategic Plan revealed that out of 15 strategic targets, the district had fully achieved 8 (53.3%) targets, partially attained 5 (33.3%) targets, while 2 (13.3%) targets were not attained at all. + + + +- The district collected 55% of its budgeted local revenue and received 99% of the funds expected from treasury while 4% of funds expected from external sources were received by year end. The district had unspent balances of UGX.1.834Bn which was sent back to treasury. + + + +- The district had off-budget financing amounting to UGX.40 million for the year contrary to the budget execution circular. + + + +- I noted a challenge in quantification of out-puts which affects assessment of performance. Out of a sample of 16 outputs 12 (75%) were fully quantified while 4 (25%) were not quantified at all. Out of the 12 quantified out-puts, 7 (58.3%) were fully implemented, 3 (25%) were partially implemented while 2 (16.7%) were not implemented at all. + + + +- The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 1 (25%) was submitted on time. I also noted cases of inaccurate reporting of performance. + +- The district received UGX.205.5 million for Covid interventions and UGX.165.5 million was utilized. UGX.40 million was returned to treasury. + + + + + +- I noted weakness in the management of the intervention such as; irregularities in procurements of items worth UGX.3.95 million and failure to account for funds amounting to UGX.22 million. + +- Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were also challenges in management of quarantine centers for instance lack of PPE for health workers. + + + +- The District undertook wasteful expenditure worth UGX.147 million which was paid out in form of legal fees and court compensations to various persons. This amount was not budgeted for. + + + + + +- There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, planning for motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance. + +- I noted that Abim District Hospital faced challenges in delivery of services such as lack of medical equipment, idle and non-functioning equipment, poor maintenance of available equipment, failure to record donated equipment in the register and lack of sufficient data on delivery of mothers. + + + + + +- I noted anomalies in the implementation of the UgIFT program + + + +- There were anomalies in the management of payroll such as; non preparation of payroll reconciliations and inconsistent salary over payments + +- 57% of the approved staffing structure was not filled. + + + +- Under YLP, I noted failure to realise timely recovery of Disbursed funds, and non- maintenance of a repayments ledger + + + +- I noted low recovery rate of funds under the UWEP program. + + + +319 + + + + + + + + + + + +  The district lacked land titles for its land. +3 Napak DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that the strategic plan was not aligned to the District budget as projects worth UGX.7.418 Bn were included in the budget but not in the strategic plan Of the 23 strategic targets, 9 (40%) were fully achieved, while 10 (43%) were partially achieved and 4 (17%) were not achieved at all The district collected 147.6% of its budgeted local revenue and received 92.9% of the funds expected from treasury while 34.1 % of funds expected from external sources were received by year end. The district had unspent balances of UGX 1.01 Bn which was sent back to treasury. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 7 outputs, 5 outputs (71%) were fully quantified while 2 (29%) were not quantified at all. Out of the 5 quantified out-puts, 3 outputs (60%) were fully implemented, while 1 output (20%) was partially implemented and 1 output (20%) was not implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. All of the four reports were submitted on time. There were no cases of inaccurate reporting of performance. The district received UGX 205 M for Covid interventions and UGX 165 M was utilized. I noted that all Items that were received in Kind were valued and taken on charge. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy and shortfalls in funds allocated for motor vehicle maintenance. I noted challenges in the implementation of the UgIFT program 41% of the district staff structure was not filled with key staff such as one procurement officer. Under UWEP, I noted that there were low recovery rates for the monies disbursed  Under YLP, I noted that there was a failure to realize timely recovery of YLP funds.  Under NUSAF, there was a failure to maintain records by sub-projects. I also noted that the district did not have land titles for the land where sub county head quarters. +4 Kotido DLGOpinion Unqualified  My review of the implementation of the 2015-2020 strategic plan revealed that it did not clearly set out both the long term and short term targets to be achieved thus making it difficult to ascertain the progress of implementation The district collected 85% of its budgeted local revenue and received 93.4% of the funds expected from treasury while 8.21% of funds expected from external sources were received by year end. The district had unspent balances of UGX.3.2 which was sent back to treasury. The district had off-budget financing amounting to UGX.203,157,834 for the year contrary to the budget execution circular I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 16 outputs,12 outputs (75%) were fully quantified while 4 outputs (25%) were not quantified at all. Out of the 12 quantified out-puts, all were fully implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. All the 4 reports were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX.225 M for Covid interventions and UGX.165M was utilized. + + + + +320 + + + + + + + + + + + +  Items that were received in Kind were neither valued nor taken on charge. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy and shortfalls in funds allocated for motor vehicle maintenance. I also noted that there was Non Preparation of Payroll Reconciliations. I also noted that there was Poor management of Staff Personnel Files and payroll records. +5 Amudat DLGOpinion Unqualified  I reviewed the strategic plan and noted that it did not clearly set out both the long term and short-term targets to be achieved thus making it difficult to ascertain the progress of implementation. The district collected 104.5% of its budgeted local revenue and received 103% of the funds expected from treasury while 44.6% of funds expected from external sources were received by year end. 37.3% of transfers from other Government Units were also received. The district had unspent balances of UGX 0.53 Bn which was sent back to treasury. Amudat District received off-budget financing to a tune of UGX.0.203Bn, which was never paid into the consolidated fund. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 12 outputs, 10 outputs (83.3%) were fully quantified while 2 outputs (16.7%) were not quantified at all. Out of the 10 quantified out-puts, 5 outputs (50%) were fully implemented, while 4 outputs (40%) were partially implemented and 1 output (10%) not implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, none were submitted in time. The annual performance report was not availed for audit hence performance could not be measured. The district received UGX 203 million for Covid interventions and UGX 165 million was utilized. UGX 37,957,300 was not banked but spent at source Some Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, and shortfalls in funds allocated for motor vehicle maintenance. Under UgIFT, I noted incomplete/delayed works inadequate supervision, and lack a land title. 76% of the district approved structure is not filled Under URF, I noted funding deficit and anomalies in the utilisation of the released funds and failure to follow guidelines in operation of the road equipment Under NUSAF-3 I noted that 53.7% of the projects submitted were funded. I noted low recovery rate of amounts disbursed under YLP and UWEP. +6 Moroto DLGOpinion Unqualified  My review of the implementation of the 2015-2020 Strategic Plan revealed that out of 22 strategic targets, the district had fully achieved 9 (40.9%) targets, partially attained 10 (45.5%) targets, while 3 (13.6%) targets were not attained at all. The district collected 53.6% of its budgeted local revenue and received 103% of the funds expected from treasury while 17% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.176Bn which was sent back to treasury. + + + + +321 + + + + + + + + + + + +  The district had off-budget financing amounting to UGX.40 million for the year contrary to the budget execution circular I noted a challenge in quantification of out-puts which affects assessment of performance. Out of a sample of 7 outputs 4 (57%) were fully quantified, 2 (29%) were insufficiently quantified while 1 (14%) was not quantified at all. All the 4 (100%) quantified out-puts were fully implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 2 (50%) were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX.205.5 million for Covid interventions and UGX.165.5 million was utilized. UGX.40 million was returned to treasury. I noted weakness in the management of the intervention such as; irregularities in procurements of items worth UGX.18.9 million and failure to account for funds amounting to UGX.24.6 million. Items that were received in Kind were not valued and there was no evidence of quality checks before distribution. The District had accumulated receivables amounting to UGX.1.6 billion which relate to UWEP and YLP funds There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, planning for motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance. Under NUSAF III, I noted that there was irregular disbursement of funds worth UGX.1.2 billion to 23 sub-projects bank accounts in one tranche, contrary to the provisions of project agreements. Under UgIFT, field inspection revealed works on Rupa Seed Secondary school were behind schedule. This was in addition to the contract price being over and above the indicative unit cost provided in the guidelines for a seed secondary school by over UGX.400 million. 32% of the district staff structure was not filled with key departments of Finance and Internal audit lacking substantively appointed heads of department. Under YLP, I noted the District did not maintain repayment ledgers for Youth Interest Groups and had recovered only UGX.455.6 million (52%) of the recoverable YLP funds. Under UWEP, I noted that the District had only recovered UGX.72 million out of the expected disbursed amount of UGX.240.5 million. The district has not secured land titles for majority of its land mainly the sub country headquarter offices, various health centers and primary schools which exposed the land to loss and encroachment. +7 Kaabong DLGOpinion Unqualified  I reviewed the strategic plan and noted that it did not clearly set out both the long term and short term targets to be achieved thus making it difficult to ascertain the progress of implementation. The district collected 302% of its budgeted local revenue and received 94.5% of the funds expected from treasury while 1.2% of funds expected from external sources were received by year end. The district had unspent balances of UGX 2.042 Bn which was sent back to treasury. The district had off-budget financing amounting to UGX 58,983,300 for the year contrary to the budget execution circular I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 9 outputs, 8 outputs (89%) were fully quantified while 1 (11%) was not quantified at all. Out of the 8 quantified out-puts, 6 outputs (75%) were fully implemented, while 1 output (12.5%) was partially + + + + +322 + + + + + + + + + + + + implemented and 1 output (12.5%) was not implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 2 (50%) were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX 184 million for Covid interventions and UGX 184million was utilized. Some Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. UGX 35,003,659 was erroneously paid to staff who had been transferred to Karenga District Local Government on 1st July 2019. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kaabong hospital faced challenges in delivery of services such as lack of medical equipment, idle equipment, poor maintenance of available equipment. During audit inspections of the medical equipment, it was noted that the Hospital had some equipment that was non functional due to breakdown. I noted in review of the Fixed Assets Register for District that, all medical equipment at the Kaabong District Hospital were not recorded in the register 47% of the district staff structure was not filled with key staff such as district internal auditor missing. I noted delay in disbursement of funds to sub projects under NUSAF  Under UWEP, I noted that there were low recovery rates for the monies disbursed. I noted low recovery and untimely transfer of recovered funds to Bank of Uganda under the YLP. Under works, I noted a funding deficit of URF and non-adherence to the guidelines in operation of road equipment. +8 Nabilatuk DLGOpinion Unqualified  I noted that the District did not have a strategic plan and it was in its 2nd year of operation The district collected 18.2% of its budgeted local revenue and received 103% of the funds expected from treasury while 21% of funds expected from external sources were received by year end. The district had unspent balances of UGX 0.374Bn which was sent back to treasury. The district had off-budget financing amounting to UGX20,000,000 for the year contrary to the budget execution circular All the sampled 23 outputs 23 (100%) were fully quantified, Out of the 23 quantified out-puts, 20 (87%) were fully implemented, while 3 (13%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of the 4 quarterly performance reports, all (100%) were not submitted in time. I noted inaccuracies in the performance reports submitted. The district received UGX 186,780,300 for Covid interventions and 98.9% was utilized. Items that were received in Kind were valued and there were quality checks before distribution. There were also challenges in management of quarantine centers for instance lack of PPE for health workers and there was no mechanism of providing information from the ‘outside’ such as radios, phones and televisions. + + + + +323 + + + + + + + + + + + +  I noted a payment of undisclosed prior year arrears to a tune of UGX 19,877,488. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles with engine capacities beyond staff entitlements, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Nabilatuk HC IV faced challenges in delivery of services such as lack of medical equipment, idle equipment, poor maintenance of available equipment. I noted an under procurement Award of a VAT inclusive contract to a non-VAT registered supplier. I noted that there was delayed disbursement of funds to NUSAF projects. +9 Kotido MCOpinion Unqualified  I reviewed the strategic plan and noted that it did not clearly set out both the long term and short-term targets to be achieved thus making it difficult to ascertain the progress of implementation. The district collected 108% of its budgeted local revenue and received 89.8% of the funds expected from treasury. The Municipal Council had unspent balances of UGX 0.198 Bn which was sent back to treasury. The district had no off-budget financing for the year under review. I noted challenges in quantification of outputs which affects assessment of performance. Out of a sample of 5 outputs, 4outputs (80%) were fully quantified while 1(20%) was not quantified at all. Out of the 4 quantified out-puts, 2outputs (50%) were fully implemented, while 1 output (25%) was partially implemented and 1 output (25%) not implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, None were submitted on time. I also noted cases of inaccurate reporting of performance. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Kotido Health Centre IV faced challenges in delivery of services such as lack of medical equipment, idle equipment, poor maintenance of available equipment, understaffing 55% of the district staff structure was not filled with key staff such as Principal Human Resource Officer There were weaknesses in garbage management including; failure to develop by- laws on garbage management, non-maintenance of data and records on the garbage generated, declining funding for garbage management, inadequate equipment and facilities and lack of protective wear I noted that the Municipality did not have an approved UPDP and detailed plans to facilitate physical developments. I noted that there were some ongoing physical developments without development permits and there was no evidence provided to confirm that the Municipal Council was taking action to have these developments discontinued. I noted that there were low recovery rates for the amounts disbursed, under UWEP and YLP I noted anomalies during the inspection of sampled projects. +10 Moroto RRHOpinion Unqualified  My review of the implementation revealed the strategic plan did not have clear strategic goals and targets The hospital collected 75% of its budgeted local revenue and received 96% of the + + + + +324 + + + + + + + + + + + + funds expected from treasury while there were no expected external sources. The district had unspent balances of UGX 0.578 Bn which was sent back to treasury. The hospital had off-budget financing amounting to UGX. 2.241 for the year contrary to the budget execution circular I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 6 outputs 4 (67%) were fully quantified while 2 (33%) were not quantified at all. Out of the 4 quantified out-puts, 2 (50%) were fully implemented, while 2 (50%) were partially implemented. The hospital did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. None of the four quarterly reports were submitted. I noted unsupported pension and gratuity payments to a tune of UGX 88,932,768 32.2% of the hospital staff structure was not filled with key staff such as Senior Consultant (Medicine). There were weaknesses in the management of the hospitals fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Moroto RRH hospital faced challenges in delivery of services such as lack of medical equipment, idle equipment and poor maintenance of available equipment. I noted delayed Construction Works for Maternity Ward by 5 months and Staff Housing Units by 1 month by the time of audit. Moroto RRH’s Board of governors expired on May 2020. +11 Moroto MCOpinion Qualified  I noted that funds to a tune of UGX.187,244,191 were diverted/ mischarged I noted a variance of UGX.227,265,319 between total payments for Operating and Investing activites in the statement of Cashflows and the total payments as per the IFMS payment register. I noted a variance of UGX.250,876,955 between the domestic arrears paid as per the cashflow statement and the movement of the payables figure as per the statement of financial position. The district had unsupported payables of UGX 726,161,821 My review of the implementation of the 2015-2020 strategic plan revealed that 78% of the strategic targets were fully achieved, while 22% were partially achieved. The municipal collected 20% of its budgeted local revenue and received 85.4% of the funds expected from treasury. The municipal had unspent balances of UGX 0.754bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 5 outputs 1 (20%) was insufficiently quantified while 4 (80%) were not quantified at all. The Municipality did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. All the four (100%) quarterly performance reports were submitted past the deadline In addition, I also noted under expenditure that there were Irregular payments made through the imprest bank account There were weaknesses in the management of the municipals fleet including; short falls in funding vehicle acquisitions, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance. I noted under payroll that there were Payments to persons not on the municipality payroll worth UGX.17,452,752 and Underpayment of salaries + + + + +325 + + + + + + + + + + + +  I noted that Moroto Municipality had poor maintenance of data and records on the Garbage generated, Inadequate funding for Garbage management, Failure to undertake Public awareness and sensitization, Inadequate Public awareness and sensitization, Inadequate Equipment and facilities for Garbage collection and disposal and Lack of protective wear I noted that there were weaknesses in the following; Failure to have a fully constituted Physical Planning Committee, Inadequate Funding of the Detailed Plans of the Physical Development Plan Activities, Lack of Development Permits in Support of on-going Physical Developments. I noted that the municipality awarded VAT inclusive contracts to non-VAT registered suppliers. +12 Karenga DLGOpinion Unqualified  My review of the implementation of the Strategic Plan revealed that Karenga did not prepare one at all and therefore spent UGX.9.9Bn without the guidance of a strategic development plan The district collected 32% of its budgeted local revenue and received 106% of the funds expected from treasury while 6% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.2Bn which was sent back to treasury. The district had off-budget financing amounting to UGX.40 million for the year contrary to the budget execution circular I noted a challenge in quantification of out-puts which affects assessment of performance. Out of a sample of 18 outputs 16 (88%) were fully quantified, 1 (6%) was insufficiently quantified while 1 (6%) was not quantified at all. Out of the 16 quantified out-puts, 7 (44%) were fully implemented, 5 (31%) were partially implemented while 4 (25%) were not implemented at all. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 1 (25%) was submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX.205.5 million for Covid interventions and UGX.165.5 million was utilized. UGX.40 million was returned to treasury. I noted weakness in the management of the intervention such as; irregularities in procurements of items worth UGX.17.7 million and failure to account for funds amounting to UGX.7 million. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were no challenges in management of quarantine centers. 28% of the district staff structure was not filled with key staff such as district engineer, HODs for water and production departments missing The district lacked land titles for the 10 hectares of land where the new district headquarters are being constructed which exposed the land to loss and encroachment There were weaknesses in the management of the districts fleet including; planning for motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Karenga Health Centre IV faced challenges in delivery of services such as lack of medical equipment, idle and non-functioning equipment, as well as poor maintenance of available equipment. I noted inconsistency in salary payments amounting to UGX.7.5 million. The district had unaccounted for administrative advances amounting to UGX.28.1 million and awarded VAT inclusive contracts to VAT non-registered suppliers worth UGX.295.4 million causing a financial loss to government of UGX.43.1 million. + + + + +326 + + + + + + + + + + + +  I noted that the District did not prepare quarterly arrears of revenue returns and neither was local revenue assessment conducted during the year under review. Construction of new District Headquarters in Kidepo worth UGX.147.2 million remained incomplete due to conflict on the site of construction between the District and the Uganda Wildlife Authority. My review of public procurement revealed that procurements worth UGX.46.1 million were awarded and executed without being included in the annual procurement work plan. Under YLP, I noted the District did not maintain repayment ledgers for Youth Interest Groups and only recovered UGX.84.6 million (22%) of the recoverable YLP funds. Under UWEP, I noted that the District had not recovered any money out of the expected disbursed amount of UGX.105.8 million. + SOROTI BRANCH +1 Bukedea DLGOpinion Qualified  I noted that on note 27 to the Financial Statements UGX 0.216Bn was deducted from the opening cash and cash equivalents. I noted that the reserves in the Statement of Changes on page 7 of the Financial Statements in Equity are over stated by the UGX.0.279Bn. The cash and cash equivalents in the Statement of Financial Position were over stated by UGX. 0.062Bn. My review of the implementation of 2015-2020 strategic plan revealed that 33% of the sampled targets were fully achieved, while 42% were partially achieved and 25% were not achieved at all. The district collected 45% of its budgeted local revenue and received 100% of the funds expected from treasury and 49% from other government units while 0% funds budgeted from external sources was realized. The district had unspent balances of UGX 0.266Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects performance. Out of a sample of 13 outputs, 12 (92.3%) were fully quantified, 1 (7.7%) was not quantified at all. Out of the 12 quantified out-puts, 8 (66%) were fully implemented, while 2 (17%) were partially implemented and 2 (17%) were not implemented at all during the year. The district did not prepare nor submit the annual monitoring plans to MoFPED, MoLG and NPA and also the entity did not also submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required. All the 4 quarterly performance reports were submitted after the set deadline had passed. I noted challenges under the management of COVID 19 supplementary funds such as; total cash receipts of UGX. 0.002Bn received from the International Donor organisations for was spent at source, Out of the total receipts of UGX 0.165Bn from the UCF, for CoVID-19 interventions, UGX 0.013Bn (8%) remained unspent, failure to adhere to the Budgets and work plans. The donations received in-kind were not valued, the items lacked utilisation documents and there was no evidence that the quality of items received was checked and verified before receipt. +2 Soroti DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 84% of the sampled targets were fully achieved, 16% were partially achieved while none were not achieved at all. The district collected 70% of its budgeted local revenue and received 102% of the funds expected from treasury, 6% of funds expected from other government units while 8.49% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.573Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of + + + + +327 + + + + + + + + + + + + performance. Out of a sample of 18 outputs 15 (83%) were fully quantified, 1 (5%) was insufficiently quantified while 2 (12%) were not quantified at all. Out of the 15 quantified out-puts, 12 (80%) were fully implemented; 1 (6%) was partially implemented while 2 (14%) were not implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for all the 4 quarters were also submitted beyond deadlines. I also noted cases of inaccurate reporting of performance. I noted weakness in the management of the intervention such as; insufficiently approved work plans and irregularities in procurements of items. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were also challenges in management of quarantine centres. I noted unpaid pension and gratuity of Ugx. 321M. I noted court cases and contingencies due to non-availability of the Attorney General’s services to the district cases. The district lacked land titles for 175 pieces which exposed the land to loss and encroachment. 43% of the district staff structure was not filled with key staff.  I noted grounded road equipment. There were weaknesses in the management of the district fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequate allocation of vehicles to key departments and inadequate funding of vehicle maintenance. I noted that Tiriri Health Centre Iv faced challenges in delivery of services such; as lack of adequate medical equipment, Idle medical equipment, failure to properly maintain medical equipment and 11% of the mothers referred to other health units. Under the UgIFT program; there were delayed works at Asuret Seed School.  I noted under absorption of payroll funds by Ugx.1.086Bn. I noted irregularities in the implementation of projects like the delayed transfer of NUSAF 3 funds of Ugx.131M to beneficiaries, noncompliance to the repayment schedule of the YLP & UWEP of Ugx.751M and Ugx.11M respectively. I noted non-functional water sources under the Water for use and production. +3 Kaberamaido DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 30.5% of the sampled targets were fully achieved, 38.9% were partially achieved while 30.5% were not achieved at all. The district collected 49% of its budgeted local revenue and received 99% of the funds expected from treasury, 91% of funds expected from other government units while 88% of funds expected from external sources were received by year end. The district had unspent balances of UGX.113M which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 19 outputs, 13 (68%) were fully quantified, 6 (32%) were not quantified at all. Out of the 13 quantified out-puts, 10 (77%) were fully implemented, while 2 (15%) were partially implemented and 1 (8%) was not implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 1 (25%) was submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX.165M for covid -19 interventions and all was utilized and there was full disclosure. + + + + +328 + + + + + + + + + + + +  I noted a weakness in the management of the intervention such as; insufficiently quantified work plans. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were also challenges in management of quarantine centers for instance lack of PPE for health workers. I noted missing district assets.  57% of the district staff structure was not filled with key staff. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles, and shortfalls in funds allocated for motor vehicle maintenance. I noted payroll irregularities like underutilization of funds of Ugx.505M and non- reconciliation of salary payments each month. I noted that Kaberamaido hospital faced challenges in delivery of services such as lack of medical equipment, idle equipment, poor maintenance of available equipment, staffing gaps and lack of sufficient data on delivery of mothers. There were also delayed works under UGFIT particularly at Kakure seed school. I noted irregularities under the URF like under funding of Ugx.39M and inadequate routine manual and mechanised periodic maintenance of various roads. I noted procurement irregularities like the award of VAT inclusive contracts to non VAT registered contractors, absence of contracts committee and failure to prepare contract implementation plans and reports. I noted dilapidated school structures at Kagga and Abaata primary scholc under education management. I noted non-functional water sources under the water for use and production program. I noted irregularities in the implementation of projects like the delayed utilization of funds of Ugx.28M under the NUSAF 3 by the respective beneficiaries, noncompliance to the repayment schedule of the YLP & UWEP of Ugx.337M and Ugx.186M respectively. +4 Dokolo DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 26% of the sampled targets were fully achieved, 30% were partially achieved while 44% were not achieved at all. The district collected 42% of its budgeted local revenue and received 100% of the funds expected from treasury, , 81% of funds expected from other government units while 46% of funds expected from external sources were received by year end. The district had unspent balances of UGX.368M which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 22 outputs, 16 (73%) were fully quantified, 6 (27%) were not quantified at all. Out of the 16 quantified out-puts, 10 (63%) were fully implemented, while 6 (37%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 1 (25%) was submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX. 225M for -19 interventions and all was utilized. UGX.39M was used at source contrary to the Law. I noted weakness in the management of the intervention such as; insufficiently quantified work plans and irregularities in procurements of items. Items that were received in Kind were neither valued nor taken on charge and + + + + +329 + + + + + + + + + + + + there was no evidence of quality checks before distribution. There were also challenges in management of quarantine centers for instance lack of PPE for health workers. I noted that the district accumulated outstanding commitments worth UGX.1.136Bn as a combination of YLP, UWEP funds and WHT. I noted pension and gratuity arrears of Ugx.94M. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, irregularities in planning for Motor vehicle acquisition, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles, and shortfalls in funds allocated for motor vehicle maintenance. I noted that Dokolo hospital faced challenges in delivery of services such as lack of medical equipment, idle equipment, nonfunctional equipment, poor maintenance of available equipment, failure to record donated equipment in the register and lack of sufficient data on delivery of mothers. There were also delayed works under UGFIT particularly at Adok, Awelo and Adagmon Health centre IIs upgrade to IIIs. I noted non reconciliation of salary payments each month.  43% of the district staff structure was not filled with key staff. I noted irregularities under URF like under funding of Ugx.145M and irregular routine manual and mechanized periodic maintenance of various roads. I noted irregularities in the procurement management like failure to prepare contract implementation plans, failure to sign code of ethics conduct and failure to appoint contract supervisors. I noted dilapidated school classroom structures at Akwang primary school.  I noted poor supervision of 8 boreholes under DWSCG. I noted irregularities in the implementation of projects like under funding of Ugx.0.176Bn, delayed transfer of funds to beneficiaries under the NUSAF 3 project and noncompliance to the repayment schedule of the YLP & UWEP of Ugx.918M and Ugx.223M respectively. +5 Katakwi DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 71% of the sampled targets were fully achieved, 18% were partially achieved while 11% were not achieved at all. The district collected 58% of its budgeted local revenue and received 100% of the funds expected from treasury, 75% of funds expected from other government units while 11% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.241Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 11 outputs 11 (100%) were fully quantified. Out of the 11 quantified out-puts, 4 (36%) were fully implemented; 5 (46%) was partially implemented while 2 (18%) were not implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for all the 4 quarters were also submitted beyond deadlines. I also noted cases of inaccurate reporting of performance. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were also challenges in management of quarantine centres for instance lack of PPE for health workers. I noted outstanding commitments of Ugx.23M under URA, salary and pension arrears of Ugx.159M and 644M respectively and further increase of payables by 390%. + + + + +330 + + + + + + + + + + + +  I noted court cases and garnishee orders.  I noted undisclosed prior year’s salary arrears of Ugx.33M  I noted non –remitted salary deductions of Ugx.146.  I noted unbudgeted for expenditure of Ugx.29M. There were weaknesses in the management of the district fleet including; insufficient funding for the purchase of vehicles, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequate allocation of vehicles to key departments and inadequate funding of vehicle maintenance. I noted payroll irregularities like 41.3% of the district staff structure was not filled with key staff, delayed access of the payroll and failure to perform salary reconciliations. I noted that Katakwi District Hospital faced challenges in delivery of services such; as lack of adequate medical equipment, inadequate storage space for the medical equipment, Idle and non-functioning medical equipment, drug stock outs and 8.8% of the mothers referred to other health units. Under the UgIFT program; works at Palam Seed School. I noted irregularities in the procurement management failure to publish notice of the best evaluated bidder, failure to carry out a market survey, low competitive bidding and erroneous bid evaluation. I noted under funding of Ugx.166M and poorly routine manual and mechanized maintenance of various roads. I noted poor quality supply of desks to some schools, incomplete works at various schools, poor pupil to facility ratios and various inadequate school facilities under educational management. I noted non-functional water sources under the use and production program I noted irregularities in the implementation of projects like under funding of Ugx.287M and delayed disbursement of funds under the NUSAF 3 program, noncompliance to the repayment schedule of the YLP & UWEP of Ugx.705M and Ugx.28M respectively. I noted irregularities in asset management like un-updated asset register and failure to dispose- off recommended assets. +6 Kumi DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 67% of the sampled targets were fully achieved, 33% were partially achieved while none were not achieved at all. The district collected 73% of its budgeted local revenue and received 99% of the funds expected from treasury, 40% of funds expected from other government units while 91% of funds expected from external sources were received by year end. The district had unspent balances of UGX.2.126Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 18 outputs 11 (61%) while 7 (39%) were not quantified at all. Out of the 11 quantified out-puts, 7 (64%) were fully implemented; 4 (36%) were partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for 3 of the 4 quarters were also submitted beyond deadlines. I also noted cases of inaccurate reporting of performance. The district received UGX.205M for Covid interventions and UGX.165million was utilized. I noted a weakness in the management of the intervention such as; irregularities in procurements of items. Items that were received in Kind were neither valued nor taken on charge and + + + + +331 + + + + + + + + + + + + there was no evidence of quality checks before distribution. There were also challenges in management of quarantine centers for instance lack of PPE for health workers. I noted an increase in court cases and contingencies against the district from 21 to 23 cases. 36% of Atutur Hospital staff structure was not filled with key staff and the hospital faced drug stock outs. I noted lack of land titles for district land. There were weaknesses in the management of the district fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequate allocation of vehicles to key departments and inadequate funding of vehicle maintenance I noted that Kumi health centre IV faced challenges in delivery of services such; as lack of adequate medical equipment, failure to properly maintain medical equipment, idle medical equipment, 11% of the mothers referred to other health units and inadequate hospital water supply. I noted irregular routine manual and mechanised periodic maintenance of various roads under URF. I noted delayed works on various roads under the Rural Transport Infrastructure program. I noted shoddy works and plans at the construction of two class room block at Agule primary school under education management. I noted irregularities in the procurement management like low competitive bidding and failure to follow the evaluation criteria set in the soliciting documents. I noted payroll irregularities like salary payments of Ugx.9M paid outside IPPs and failure to update the preliminary and final payrolls. I noted irregularities in the implementation of projects like under funding of Ugx.1.144Bn, under absorption of Ugx.0.871Bn under the NUSAF 3 project, noncompliance to the repayment schedule of the YLP & UWEP of Ugx.455M and Ugx.132M respectively and the under absorption of Ugx.235M under the Micro projects program. +7 Amolatar DLGOpinion Qualified  My review of the implementation of the 2015-2020 revealed that 63% of the sampled targets were fully achieved, 38% were partially achieved while none were not achieved at all. The district collected 25% of its budgeted local revenue and received 100% of the funds expected from treasury, 84% of funds expected from other government units while 11% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.536Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 13 outputs 9 (69%) were fully quantified while 4 (31%) were not quantified at all. Out of the 9 quantified out-puts, 6 (66%) were fully implemented; 2 (22%) were partially implemented while 1 (12%) was not implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for all the 4 quarters were also submitted beyond deadlines. I also noted cases of inaccurate reporting of performance. I noted weakness in the management of the intervention like irregularities in procurements of items. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were also challenges in management of quarantine centres for instance lack of PPE for health workers. + + + + +332 + + + + + + + + + + + +  There were weaknesses in the management of the district fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequate allocation of vehicles to key departments and inadequate funding of vehicle maintenance. I noted salary payment of Ugx.30M outside IPPS. I noted that Amolatar Health Centre IV faced challenges in delivery of services such; as understaffing, lack of adequate medical equipment, failure to properly maintain medical equipment, idle medical equipment, and 12.41% of the mothers referred to other health units. Under the UgIFT program; there were delayed works at various upgrades from Health Centre IIs to Health centres IIIs’ like Nakatit, Lwemikomago Health centre IIs and payment of incomplete works at Nakatiti Health Centre II. I noted dilapidated school structures at Wabunua and Chwakara Primary Schools. +8 Kapelebyong DLGOpinion Qualified  My review of the implementation of the 2015-2020 revealed that the district did not develop a development plan for the period under review for assessment. The district collected 75% of its budgeted local revenue and received 98% of the funds expected from treasury, 32% of funds expected from other government units while 55% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.894Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 13 outputs 10 (77%) were fully quantified, 3 (33%) was insufficiently quantified. Out of the 10 quantified out-puts, 7 (70%) were fully implemented; 2 (20%) were partially implemented while 1 (10%) was not implemented. UGX.222M was diverted/mischarged during the year The Quarterly performance reports for all the 4 quarters were also submitted beyond deadlines. I also noted cases of inaccurate reporting of performance. The district received UGX.1705M for Covid interventions and UGX.149M was utilized. I noted weakness in the management of the intervention such as; insufficiently quantified work plans. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. I noted that the district had un-recognised pension and gratuity arrears of Ugx.185M. I noted un-recognised staff salaries not paid during the year of Ugx.58M.  51% of the district staff structure was not filled with key staff. The district lacked land titles for 70 pieces which exposed the land to loss and encroachment. I noted that the district store accommodation is inadequate and in bad condition. There were weaknesses in the management of the district fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequate allocation of vehicles to staff entitled and inadequate funding of vehicle maintenance. I noted that Kapelebyong Health Centre IV faced challenges in delivery of services such; as lack of adequate medical equipment, Idle and non-functional medical equipment and 4% of the mothers referred to other health units. I noted under absorption of payroll funds by Ugx.0.624Bn. I noted irregularities in the implementation of projects like the delayed transfer of funds of Ugx.765M to beneficiaries and non-accounted for funds of Ugx.199M under the NUSAF 3 program I noted noncompliance to the repayment schedule of Ugx.338M and failure to transfer recovered funds to the national revolving funds account under the YLP. + + + + +333 + + + + + + + + + + + +  I noted noncompliance with the repayment schedules of Ugx.105M under the UWEP. I noted non-functional water sources under the Water for use and production. I noted under performance of the maintained kilometres of road of 12Kms and poorly maintained roads under the periodic maintenance under URF. +9 Serere DLGOpinion Qualified  I noted misstated figure in the financial statement My review of the implementation of the 2015-2020 revealed that 34% of the sampled targets were fully achieved, 56% were partially achieved while 11% were not achieved at all. The district collected 64.3% of its budgeted local revenue and received 99% of the funds expected from treasury, 35.2% of funds expected from other government units while 10.2% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.318Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 11 outputs 5 (45%) were fully quantified while 6 (55%) were not quantified at all. Out of the 5 quantified out-puts, 4 (80%) were fully implemented; 1 (20%) was partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for 3 of the 4 quarters was also submitted beyond deadlines. I also noted cases of inaccurate reporting of performance. I noted weaknesses in the management of the intervention such as; insufficiently quantified work plans and failure to account for funds amounting to UGX.12M Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were also challenges in management of quarantine centres. I noted total liability of Ugx.1.867Bn.  30.4% of the district staff structure was not filled with key staff.  I noted lack of ownership deeds There were weaknesses in the management of the district fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequate allocation of vehicles to key departments and inadequate funding of vehicle maintenance. I noted that Serere District Hospital faced challenges in delivery of services such; as lack of adequate medical equipment, idle medical equipment, failure to properly maintain medical equipment, non-functional equipment and 4% of the mothers referred to other health units. Under the UgIFT program; there were delayed works at Kagwara Seed School and Oburin HC II, irregular payment variations, diversion of funds of Ugx.145M and the up-grade of Aarapo, Oburin & Kagwara HC II to IIIs’. I noted irregularities under the URF like the underfunding of Ugx.176M and the routine manual and mechanised maintenance on various roads. I noted irregularities in the implementation of projects like under funding of Ugx. 762M and delayed implementation of projects under NUSAF 3 program, noncompliance to the repayment schedule of the YLP & UWEP of Ugx.807M and Ugx.272M respectively. +10 Amuria DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 40.9% of the sampled targets were fully achieved, 45.5% were partially achieved while 13.6% were not achieved at all. The district collected 56.6% of its budgeted local revenue and received 95% of the funds expected from treasury, 55.5% of funds expected from other government units while 28% of funds expected from external sources were + + + + +334 + + + + + + + + + + + + received by year end. The district had unspent balances of UGX.170M which was sent back to treasury. The district had off-budget financing amounting to UGX.528M for the year contrary to the budget execution circular. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 21 outputs 13 (61.9%) were fully quantified, 2 (9.5%) were insufficiently quantified while 14 (66.7%) were not quantified at all. Out of the 13 quantified out-puts, 10 (76.9%) were fully implemented, while 2 (15.4%) were partially implemented and 1 output (7.7%) was not implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, only 2 (50%) were submitted on time. I also noted cases of inaccurate reporting of performance. The district received UGX.209M for Covid interventions and UGX.169M was utilized. UGX.4M was used at source contrary to the Law. I noted weakness in the management of the intervention such as; insufficiently quantified work plans. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were also challenges in management of quarantine centers for instance lack of PPE for health workers. 46% of the district staff structure was not filled with key staff such as district engineer, chief finance officer, senior planner among others. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles with engine capacities beyond staff entitlements and shortfalls in funds allocated for motor vehicle maintenance. I noted that Amuria hospital faced challenges such as inadequate medical equipment, failure to properly maintain medical equipment, non- functional equipment and 13% of the mothers referred to other health units. There were also delayed works under UGFIT particularly at Akeriau and Alere health center IIIs and inadequate contract supervision and monitoring. I noted under funding of Ugx.416M, low cost sealing and poorly managed periodic manual and mechanized maintenance of various roads under the URF program. I also noted dilapidated classroom structures that are not fit for sheltering pupils at Aojakitoi primary school under education management program. I noted slow recovery of funds under the YLP & UWEP of Ugx.629M and Ugx.178M respectively. +11 Ngora DLGOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 20% of the sampled targets were fully achieved, 60% were partially achieved while 20% were not achieved at all. The district collected 41% of its budgeted local revenue and received 103% of the funds expected from treasury, 75% of funds expected from other government units while 12% of funds expected from external sources were received by year end. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 12 outputs 7 (59%) were fully quantified, 1 (8%) was insufficiently quantified while 4 (33%) were not quantified at all. Out of the 7 quantified out-puts, 7 (100%) were fully implemented. The Quarterly performance reports for 3 of the 4 quarters were also submitted beyond deadlines. Items that were received in Kind were not valued, not taken on charge and no evidence of quality checks before distribution and poor communication of + + + + +335 + + + + + + + + + + + + donations received. There were also challenges in management of quarantine centres. 64% of the district staff structure was not filled with key staff such as district engineer missing. I noted 47 and 37 non-functional boreholes and shallow wells respectively. There were weaknesses in the management of the district fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequate allocation of vehicles to staff, inadequate allocation of vehicles to key departments and inadequate funding of vehicle maintenance. I noted that Ngora Health Centre IV faced challenges in delivery of services such; as lack of adequate medical equipment, failure to properly maintain medical equipment, idle medical equipment and 6% of the mothers referred to other health units. Under the UgIFT program; there were delayed works at Ngora Seed School.  I noted salary payment of Ugx.25M paid outside the IPPS. I noted challenges in URF like underfunding by Ugx.104M, poorly manual maintained roads, irregular and poorly mechanised maintenance roads. I noted challenges in the incomplete school construction works under the education department management. I noted irregularities in the implementation of projects like under funding by Ugx.211M, the delayed implementation of projects under the NUSAF 3 project, noncompliance to the repayment schedule of the YLP & UWEP of Ugx.569M and Ugx.227M respectively. I noted delayed works at Ngora Health Centre IV for the construction of a maternity ward under the health management. +12 Kumi MCOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 60% of the sampled targets were fully achieved, 40% were partially achieved. The council collected 46% of its budgeted local revenue and received 100% of the funds expected from treasury while 35% of funds expected from other government units by year end. The council had unspent balances of UGX.0.144Bn which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 8 outputs 7 (87%) were fully quantified while 1 (13%) was not quantified at all. Out of the 7 quantified out-puts, 5 (71%) were fully implemented, 2 (29%) were partially implemented. The council did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for all the 4 quarters were also submitted beyond deadlines. I also noted cases of inaccurate reporting of performance. I noted outstanding payables of Ugx.45M  I noted lack of land title for the municipal land.  I noted failure to pay retirees pension of Ugx.8M  I noted grounded assets for the municipal. There were weaknesses in the management of the council fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, noncompliance with vehicle allocations to staff, inadequate allocation of vehicles to key departments and inadequate funding of vehicle maintenance. I noted that Kumi Health Centre IV faced challenges in delivery of services such; Idle medical equipment, failure to properly maintain medical equipment and 1.4% of the mothers referred to other health units. I noted irregularities in garbage management like nonexistence and adherence to + + + + +336 + + + + + + + + + + + + garbage management by-laws, lack of data and records about garbage management, inadequate funding of garbage management, inadequate public awareness and sensitization and inadequate equipment and facilities for garbage collection and disposal, inappropriate disposal of garbage in the municipal and lack of protective wear. I noted that the municipality had irregularities in UPDP management like lack of approved UPDP and detailed plans and inadequate funding of the physical planning section. I noted inappropriate routine manual and mechanised maintenance of roads. I noted irregular payment of salary and pension of Ugx.20M outside IPPS. +13 Soroti MCOpinion Unqualified  My review of the implementation of the 2015-2020 revealed that 16.7% of the sampled targets were fully achieved, 33% were partially achieved while 50% were not achieved at all. The district collected 33% of its budgeted local revenue and received 58% of the funds expected from treasury, 74% of funds expected from other government units while 24% of funds expected from external sources were received by year end. The district had unspent balances of UGX.596M which was sent back to treasury. I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 11 outputs, 5 (45.5%) were fully quantified, 4 (36.4%) were insufficiently quantified while 2 (18.2%) were not quantified at all. Out of the 5 quantified out-puts, 4 (80%) were fully implemented, while 1 (20%) was partially implemented. The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. All the four quarterly performance reports were not submitted in time. I also noted cases of inaccurate reporting of performance. I noted that the municipality has over 15 pending court cases as disclosed in the financial statements I noted that by the end of the financial year, the municipality had domestic arrears of Ugx.81M. There were weaknesses in the management of the districts fleet including; short falls in funding vehicle acquisitions, failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, allocation of vehicles with engine capacities beyond staff entitlements, allocation of vehicles to key departments and inadequate funds allocated for motor vehicle maintenance. I noted that Diana HC IV faced challenges in delivery of services such as lack of medical equipment, idle equipment, failure to properly maintain medical equipment, failure to record donated equipment in the register, lack of sufficient data on delivery of mothers and 94% of the mothers referred to other health units. I noted payroll irregularities like failure to carry out monthly salary reconciliations, 24% of the council district staff structure was not filled with key staff and delayed and under remittance of PAYE of Ugx.23M. I noted garbage management irregularities like lack of garbage management by- laws, poorly maintained garbage management data and records, inadequate public awareness and sensitization, inadequate equipment and facilities for garbage collections and disposal and under funding by 57%. I noted inadequate funding of Ugx.3.290Bn, failure to have up to date physical development plans and lack of development permits to the ongoing physical developments under the UPDP management. I noted under funding of Ugx.3.146Bn under the USMID-(MISG) program. I noted under funding of Ugx.266M under the URF program and poorly managed + + + + +337 + + + + + + + + + + + + manual and mechanised maintenance on various roads of the council. I noted non – compliance with the repayment schedules of the YLP & UWEP of Ugx.122M and Ugx.98M respectively. +14 Soroti RRHOpinion Qualified  My review of the implementation of the 2015-2020 revealed that 67% of the sampled targets were fully achieved, 33% were partially achieved while none were not achieved at all. The Hospital collected 145.8% of its budgeted local revenue while received 91% of the funds expected from treasury. The hospital had unspent balances of UGX.86M which was sent back to treasury. The hospital had off-budget financing amounting to UGX.0.937Bn for the year contrary to the budget execution circular I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 9 outputs 1 (11%) was fully quantified, 6 (66%) were insufficiently quantified while 2 (23%) were not quantified at all. The 1 quantified out-put was partially implemented. The hospital did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. Out of four quarterly reports, Out of four quarterly reports, all the 4 (100%) were not submitted on time. I also noted cases of inaccurate reporting of performance Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were also challenges in management of quarantine canters for instance lack of ICU and isolation unit. I noted domestic arrears of Ugx.0.387Bn by end of year 2019/2020. I noted accounting irregularities like failure to keep revenue registers for NTR and mismanagement of NTR revenue. I noted dilapidated staff quarters at the hospital There were weaknesses in the management of the hospital fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general and absence of fleet management policy inadequate allocation of vehicles to key departments and inadequate funding of vehicle maintenance. I noted that the regional referral hospital faced challenges in delivery of services such; as lack of adequate medical equipment, Idle medical equipment, failure to properly maintain medical equipment, 34% of the mothers referred to other health units and drug stock outs. I noted a non- updated asset register. I noted inadequate stores space, delays in disposal of grounded assets and failure to engrave all hospital assets. +15 Otuke DLGOpinion Qualified  My review of the implementation of the 2015-2020 revealed that 22% of the sampled targets were fully achieved, 78% were partially achieved while none were not achieved at all. The district collected 110% of its budgeted local revenue and received 100% of the funds expected from treasury, 79% of funds expected from other government units while 34% of funds expected from external sources were received by year end. The district had unspent balances of UGX.0.272Bn which was sent back to treasury. The district had off-budget financing amounting to UGX593M for the year contrary to the budget execution circular I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 11 outputs 9 (82%) were fully quantified, 1 (9%) was insufficiently quantified while 1 (9%) was not quantified at all. Out of the 9 quantified out-puts, 8 (89%) were fully implemented; none was partially implemented while 1 (12%) were not implemented. + + + + +338 + + + + + + + + + + + +  The Quarterly performance reports for all the 4 quarters were also submitted beyond deadlines. I also noted cases of inaccurate reporting of performance. I also noted cases of inaccurate reporting of performance The district received UGX.165M for Covid interventions and UGX.165M was utilized. I noted weakness in the management of the intervention such as; insufficiently quantified work plans and failure to account for funds amounting to UGX.42M. Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. There were also challenges in management of quarantine centres. I noted outstanding commitments of unpaid pension and salary of Ugx.685M and Ugx.115M respectively. I noted payment of un-budgeted domestic arrears of Ugx.112M.  I noted a delayed remove of staff from the payroll of Ugx.15M.  There was failure to update revenue registers.  I noted unsupported pension and gratuity payments of Ugx.323M There were weaknesses in the management of the district fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequate allocation of vehicles to key departments and inadequate funding of vehicle maintenance. I noted payroll management irregularities like 36.2% of the district staff structure was not filled with key staff and failure to perform slalry reconciliation each month. I noted that Otuke Health Centre IV faced challenges in delivery of services such; as lack of adequate medical equipment, idle medical equipment, failure to properly maintain medical equipment, staffing gap of 28.8%, non-functional equipment, 9.5% of the mothers referred to other health units and drug stock outs. Under the UgIFT program; there was noncompliance to the contractual terms by the contractor and incomplete upgrade of Ogwette Health centre Ii to III. I noted irregularities in the procurement management like un-justified direct procurements. I noted under funding of Ugx.111M and irregularities on the periodic manual and mechanized maintenance of various roads under the URF program. I noted poor quality desks supplied to selected schools under the education management. I noted non-fuctional water sources under the water for use and productions program. I noted irregularities in the implementation of projects like the delayed transfer of NUSAF 3 funds of Ugx.131M to beneficiaries, noncompliance to the repayment schedule of the YLP & UWEP of Ugx.751M and Ugx.11M respectively I noted under absorption of payroll funds by Ugx.1.086Bn. I noted irregularities in the implementation of projects like the delayed funds disbursement under the NUSAF 3 project, noncompliance to the repayment schedule of the YLP & UWEP of Ugx.569M and Ugx.116M respectively. I noted lack of land titles for the district land. +16 Kalaki DLGOpinion Unqualified  My review of the implementation of the 2015-2020 was not done due to the absence of a strategic development plan. The district collected 25% of its budgeted local revenue and received 95% of the funds expected from treasury, 94% of funds expected from other government units while 100% of funds expected from external sources were received by year end. The district had unspent balances of UGX.1.169Bn which was sent back to treasury. + + + + +339 + + + + + + + + + + + + + +- I noted challenges in quantification of out-put which affects assessment of performance. Out of a sample of 8 outputs 5 (62%) were fully quantified while 3 (38%) were not quantified at all. Out of the 5 quantified out-puts, 5 (100%) were fully implemented. + +- The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. The Quarterly performance reports for 3 of the 4 quarters were also submitted beyond deadlines. + + + +- Items that were received in Kind were neither valued nor taken on charge and there was no evidence of quality checks before distribution. + + + + + +- 40% of the district staff structure was not filled with key staff like the District Engineer. + +- There were weaknesses in the management of the district fleet including; failure to record vehicles in the asset register and in the format prescribed by Accountant general, absence of fleet management policy, inadequate allocation of vehicles to key departments and inadequate funding of vehicle maintenance. + + + + + +- I noted payroll irregularities like under absorption of payroll funds of Ugx.624M and failure to perform salary reconciliations. + +- I noted that Kalaki Health Centre III faced challenges in delivery of services such; as lack of adequate medical equipment and 15.8% of the mothers referred to other health units. + + + +- I noted mismanagement on some sections of the periodic maintenance of roads. +- I noted noncompliance with the repayment schedules of UWEP of Ugx.181M + + + + + +- I noted irregularities in the YLP management like noncompliance with the repayment schedules by Ugx636M and failure to transfer the recovered funds to the national revolving fund. + +340 + + + + + + + + + + + +ANNEXURE IV - LLGs, CLASSIFIED AUDITS, ENGINEERING AUDITS, FORENSIC INVESTIGATIONS AND SPECIAL AUDITS, IT AUDITS AND THE THEMES THAT WERE AUDITED DURING THE FY2019/2020 + +No Name of Category Period +1 Adeknino Subcounty 2018/19 +2 Adok Subcounty 2018/19 +3 Agikdak Subcounty 2018/19 +4 Agule Subcounty 2018/19 +5 Agwingiri Subcounty 2018/19 +6 Akisim Subcounty 2018/19 +7 Akoromit Subcounty 2018/19 +8 Akwon Subcounty 2018/19 +9 Alango Subcounty 2018/19 +10 Aligoi Subcounty 2018/19 +11 Alwa Subcounty 2018/19 +12 Aminit Subcounty 2018/19 +13 Amolatar Town Council 2018/19 +14 Amuria Town Council 2018/19 +15 Amwoma Subcounty 2018/19 +16 Apapai Subcounty 2018/19 +17 Apopong Subcounty 2018/19 +18 Atiira Subcounty 2018/19 +19 Atutur Subcounty 2018/19 +20 Batta Subcounty 2018/19 +21 Benet Subcounty 2018/19 +22 Binyiny Subcounty 2018/19 +23 Binyiny Town Council 2018/19 +24 Bubiita Subcounty 2018/19 +25 Bubyangu Subcounty 2018/19 +26 Budadiri Town Council 2018/19 +27 Budaka Subcounty 2018/19 +28 Budaka Town Council 2018/19 +29 Budaka Subcounty 2018/19 +30 Bududa Subcounty 2018/19 +31 Bududa Town Council 2018/19 +32 Budwale Subcounty 2018/19 +33 Bufumbo Subcounty 2018/19 +34 Buhehe Subcounty 2018/19 +35 Bukalasi Subcounty 2018/19 +36 Bukasakya Subcounty 2018/19 +37 Bukedea Subcounty 2018/19 +38 Bukedea Town Council 2018/19 +39 Bukhabusi Subcounty 2018/19 +40 Bukhaweka Subcounty 2018/19 +41 Bukhulo Subcounty 2018/19 +42 Bukiabi Subcounty 2018/19 +43 Bukibokolo Subcounty 2018/19 +44 Bukiende Subcounty 2018/19 +45 Bukigai Subcounty 2018/19 +46 Bukiise Subcounty 2018/19 +47 Bukusu Subcounty 2018/19 +48 Bukwo Subcounty 2018/19 +49 Bukwo Town Council 2018/19 +50 Bukyambi Subcounty 2018/19 +51 Bulambuli Town Council 2018/19 +52 Bulangira Subcounty 2018/19 +53 Bulangira Town Council 2018/19 +54 Bulecheke Subcounty 2018/19 +55 Bulegeni Subcounty 2018/19 +56 Bulumbi Subcounty 2018/19 +57 Bumalimba Subcounty 2018/19 +58 Bumasheti Subcounty 2018/19 + + + + +No Name of Category Period +59 Bumasifwa Subcounty 2018/19 +60 Bumasikye Subcounty 2018/19 +61 Bumayoka Subcounty 2018/19 +62 Bumbo Town Council 2018/19 +63 Bumboli Subcounty 2018/19 +64 Bumugibole Subcounty 2018/19 +65 Bunabwana Subcounty 2018/19 +66 Bunyinza Town Council 2018/19 +67 Busaba Subcounty 2018/19 +68 Busaba Town Council 2018/19 +69 Busano Subcounty 2018/19 +70 Bushigayi Town Council 2018/19 +71 Bushika Subcounty 2018/19 +72 Bushiribo Subcounty 2018/19 +73 Bushiyi Subcounty 2018/19 +74 Busiu Town Council 2018/19 +75 Busolwe Subcounty 2018/19 +76 Busolwe Town Council 2018/19 +77 Busukuya Subcounty 2018/19 +78 Butaleja Subcounty 2018/19 +79 Butaleja Town Council 2018/19 +80 Butebo Town Council 2018/19 +81 Butiru Subcounty 2018/19 +82 Butta Subcounty 2018/19 +83 Buwali Subcounty 2018/19 +84 Buwangani Town Council 2018/19 +85 Buyaga Town Council 2018/19 +86 Central Division-Kapchorwa MC Division 2018/19 +87 Chelekura Subcounty 2018/19 +88 Chepkwatsa Subcounty 2018/19 +89 Chesower Subcounty 2018/19 +90 Dabani Subcounty 2018/19 +91 Dokolo Town Council 2018/19 +92 Eastern Division-Busia Division 2018/19 +93 Eastern Division-Kapchorwa MC Division 2018/19 +94 Eastern Division-Tororo Division 2018/19 +95 Goli Goli Subcounty 2018/19 +96 Himutu Subcounty 2018/19 +97 Iki Iki Town Council 2018/19 +98 Industrial Division-Mbale MC Division 2018/19 +99 Kaato Subcounty 2018/19 +100 Kabarwa Subcounty 2018/19 +101 Kabei Subcounty 2018/19 +102 Kaberamaido Subcounty 2018/19 +103 Kaberamaido Town Council 2018/19 +104 Kabuna Subcounty 2018/19 +105 Kabwangasi Town Council 2018/19 +106 Kabweru Subcounty 2018/19 +107 Kadama Subcounty 2018/19 +108 Kadama Town Council 2018/19 +109 Kadimukoli Subcounty 2018/19 +110 Kadungulu Town Council 2018/19 +111 Kagumu Subcounty 2018/19 +112 Kakoli Subcounty 2018/19 +113 Kamet Subcounty 2018/19 +114 Kamonkoli Town Council 2018/19 +115 Kamu Subcounty 2018/19 +116 Kamuda Subcounty 2018/19 +117 Kamutur Subcounty 2018/19 +118 Kangole Subcounty 2018/19 +119 Kapelebyong Subcounty 2018/19 +120 Kapelebyong Town Council 2018/19 +121 Kaproron Subcounty 2018/19 +122 Kaproron Town Council 2018/19 + + + + +341 + + + + + + + + + + + +No Name of Category Period +123 Kaptererwo Subcounty 2018/19 +124 Kapujan Subcounty 2018/19 +125 Kasasira Subcounty 2018/19 +126 Kasilo Town Council 2018/19 +127 Kasodo Subcounty 2018/19 +128 Katakwi Subcounty 2018/19 +129 Katakwi Town Council 2018/19 +130 Katira Subcounty 2018/19 +131 Khabutora Subcounty 2018/19 +132 Kibale Subcounty 2018/19 +133 Kibuku Subcounty 2018/19 +134 Kibuku Town Council 2018/19 +135 Kidetok Town Council 2018/19 +136 Kidongole Subcounty 2018/19 +137 Kirewa Subcounty 2018/19 +138 Kituti Subcounty 2018/19 +139 Kobulubulu Subcounty 2018/19 +140 Kocheka Subcounty 2018/19 +141 Koena Subcounty 2018/19 +142 Komuge Subcounty 2018/19 +143 Kongunga Town Council 2018/19 +144 Kortek Subcounty 2018/19 +145 Kuju Subcounty 2018/19 +146 kukutu Subcounty 2018/19 +147 Kumi Subcounty 2018/19 +148 Kumi North Division 2018/19 +149 Kumi South Division Division 2018/19 +150 Kwanyiny Subcounty 2018/19 +151 Kwapa Subcounty 2018/19 +152 Kwarikwar Subcounty 2018/19 +153 Kwera Subcounty 2018/19 +154 Kyere Subcounty 2018/19 +155 Lukhonge Subcounty 2018/19 +156 Lwakhkha Town Council 2018/19 +157 Lwasso Subcounty 2018/19 +158 Lwatama Subcounty 2018/19 +159 Lyama Subcounty 2018/19 +160 Magale Town Council 2018/19 +161 Magola Subcounty 2018/19 +162 Magoro Subcounty 2018/19 +163 Majanji Subcounty 2018/19 +164 Malaba Town Council 2018/19 +165 Manafwa Town Council 2018/19 +166 Marungatuny Subcounty 2018/19 +167 Masaba Subcounty 2018/19 +168 Masafu Subcounty 2018/19 +169 Mazimasa Subcounty 2018/19 +170 Mella Subcounty 2018/19 +171 Mollo Subcounty 2018/19 +172 Mugiti Subcounty 2018/19 +173 Mukuju Subcounty 2018/19 +174 Mulanda Subcounty 2018/19 +175 Muntu Subcounty 2018/19 +176 Muyembe Subcounty 2018/19 +177 Nabiganda Town Council 2018/19 +178 Nabiswa Subcounty 2018/19 +179 Naboa Subcounty 2018/19 +180 Nabongo Subcounty 2018/19 +181 Nabumali Town Council 2018/19 +182 Nabweya Subcounty 2018/19 +183 Nagongera Subcounty 2018/19 +184 Nagongera Town Council 2018/19 +185 Nakaloke Town Council 2018/19 +186 Nakatsi Subcounty 2018/19 +187 Nalondo Subcounty 2018/19 + + + + +No Name of Category Period +188 Nalwanza Subcounty 2018/19 +189 Namabasa Subcounty 2018/19 +190 Namabya Subcounty 2018/19 +191 Namasale Subcounty 2018/19 +192 Namasale Town Council 2018/19 +193 Namayonyi Subcounty 2018/19 +194 Namboko Subcounty 2018/19 +195 Namisindwa Town Council 2018/19 +196 Namisuni Subcounty 2018/19 +197 Nandere Subcounty 2018/19 +198 Nangako Town Council 2018/19 +199 Nankodo Subcounty 2018/19 +200 Nansanga Subcounty 2018/19 +201 Nauyo Bugema Town Council 2018/19 +202 Nawanjofu Subcounty 2018/19 +203 Naweyo Subcounty 2018/19 +204 Ngora Subcounty 2018/19 +205 Ngora Town Council 2018/19 +206 Nkaloke Subcounty 2018/19 +207 Northern Division Mbale MC Division 2018/19 +208 Nyero Subcounty 2018/19 +209 Nyondo Subcounty 2018/19 +210 Obalanga Subcounty 2018/19 +211 Ochero Subcounty 2018/19 +212 Ogwette Subcounty 2018/19 +213 Okungur Subcounty 2018/19 +214 Olilim Subcounty 2018/19 +215 Olio Subcounty 2018/19 +216 Olok Subcounty 2018/19 +217 Omodoi Subcounty 2018/19 +218 Ongongoja Subcounty 2018/19 +219 Opwateta Subcounty 2018/19 +220 Orum Subcounty 2018/19 +221 Osukuru Subcounty 2018/19 +222 Otuke Town Council 2018/19 +223 Palam Subcounty 2018/19 +224 Pallisa Subcounty 2018/19 +225 Paya Subcounty 2018/19 +226 Pingire Subcounty 2018/19 +227 Puti- Puti Subcounty 2018/19 +228 Riwo Subcounty 2018/19 +229 Senendet Subcounty 2018/19 +230 Serere Town Council 2018/19 +231 Sibanga Subcounty 2018/19 +232 Sikuda Subcounty 2018/19 +233 Simu Subcounty 2018/19 +234 Sironko Town Council 2018/19 +235 Sisiyi Subcounty 2018/19 +236 Sisuni Subcounty 2018/19 +237 Sop Sop Subcounty 2018/19 +238 SOROTI Subcounty 2018/19 +239 Soroti Eastern Division 2018/19 +240 Soroti Northern Division 2018/19 +241 Suam Subcounty 2018/19 +242 Tademeri Subcounty 2018/19 +243 Tirinyi Town Council 2018/19 +244 Tororo Eastern Division 2018/19 +245 Tubur Subcounty 2018/19 +246 Tulel Subcounty 2018/19 +247 Usuk Subcounty 2018/19 +248 Wanale Subcounty 2018/19 +249 Wanale Division Mbale Division 2018/19 +250 Wesswa Subcounty 2018/19 +251 Western division - Busia Division 2018/19 +252 Western division - Division 2018/19 + + + + +342 + + + + + + + + + + + +No Name of Category Period +Kapchorwa +253 Western Division Tororo Mc Division 2018/19 +254 Western Division, Soroti Municipal Council Division 2018/19 +255 Willa Subcounty 2018/19 +256 Lukole Subcounty 2018/19 +257 Omot Subcounty 2018/19 +258 Adilang Subcounty 2018/19 +259 Patongo Subcounty 2018/19 +260 Wol Subcounty 2018/19 +261 Arum Subcounty 2018/19 +262 Namakora Subcounty 2018/19 +263 Omiya Anyima Subcounty 2018/19 +264 Patiko Subcounty 2018/19 +265 Odek Subcounty 2018/19 +266 Ongako Subcounty 2018/19 +267 Paicho Subcounty 2018/19 +268 Awach Subcounty 2018/19 +269 Bobi Subcounty 2018/19 +270 Koch Goma Subcounty 2018/19 +271 Anaka Subcounty 2018/19 +272 Pajule Subcounty 2018/19 +273 Acholibur Subcounty 2018/19 +274 Atanga Subcounty 2018/19 +275 Purongo Subcounty 2018/19 +276 Orom Subcounty 2018/19 +277 Rwengwe Subcounty 2018/19 +278 Engaju Subcounty 2018/19 +279 Nyakishana Subcounty 2018/19 +280 Kyamuhunga Subcounty 2018/19 +281 Bumbaire Subcounty 2018/19 +282 KAKANJU Subcounty 2018/19 +283 Masha Subcounty 2018/19 +284 Kabingo Subcounty 2018/19 +285 Kikagate Subcounty 2018/19 +286 Birere Subcounty 2018/19 +287 Kashumba Subcounty 2018/19 +288 Mbaare Subcounty 2018/19 +289 Rushasa Subcounty 2018/19 +290 Kinoni Subcounty 2018/19 +291 Burungu Subcounty 2018/19 +292 Kenshunga Subcounty 2018/19 +293 Rwemikoma Subcounty 2018/19 +294 Kanoni Subcounty 2018/19 +295 Kanyaryeru Subcounty 2018/19 +296 Sanga Subcounty 2018/19 +297 Engari Subcounty 2018/19 +298 Kitura Subcounty 2018/19 +299 Bubaare Subcounty 2018/19 +300 Bugamba Subcounty 2018/19 +301 Mwizi Subcounty 2018/19 +302 Kagongi Subcounty 2018/19 +303 Kashare Subcounty 2018/19 +304 Rwanyamahembe Subcounty 2018/19 +305 Rubindi Subcounty 2018/19 +306 Mutara Subcounty 2018/19 +307 Bitereko Subcounty 2018/19 +308 Kanyabwanga Subcounty 2018/19 +309 Mitooma Subcounty 2018/19 +310 Ntungamo Subcounty 2018/19 +311 Rugarama Subcounty 2018/19 +312 Rweikiniro Subcounty 2018/19 +313 Bwongyera Subcounty 2018/19 +314 Itojo Subcounty 2018/19 +315 Kayonza Subcounty 2018/19 + + + + +No Name of Category Period +316 Ruhaama Subcounty 2018/19 +317 Ngoma Subcounty 2018/19 +318 Katunguru Subcounty 2018/19 +319 Magambo Subcounty 2018/19 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2018/19 +352 Kyanamukaaka Subcounty 2018/19 +353 Maanyi Subcounty 2018/19 +354 Butayunja Subcounty 2018/19 +355 Kikandwa Subcounty 2018/19 +356 Bulera Subcounty 2018/19 +357 Kalangalo Subcounty 2018/19 +358 Namungo Subcounty 2018/19 +359 Kiringente Subcounty 2018/19 +360 Kituntu Subcounty 2018/19 +361 Nkozi Subcounty 2018/19 +362 Kiganda Subcounty 2018/19 +363 Kiyuni Subcounty 2018/19 +364 Madudu Subcounty 2018/19 +365 Myanzi Subcounty 2018/19 +366 Manyogasseka Subcounty 2018/19 +367 Kibalinga Subcounty 2018/19 +368 KAwOwO Subcounty 2018/19 +369 Sipi Subcounty 2018/19 +370 Chema Subcounty 2018/19 +371 cheptrerech Subcounty 2018/19 +372 Munarya Subcounty 2018/19 +373 LUSHA Subcounty 2018/19 +374 Bumwoni Subcounty 2018/19 +375 Buwagogo Subcounty 2018/19 +376 Bupoto Subcounty 2018/19 +377 Bubutu Subcounty 2018/19 +378 Bugobero Subcounty 2018/19 +379 Bumbo Subcounty 2018/19 +380 Busiu Subcounty 2018/19 + + + + +343 + + + + + + + + + + + +No Name of Category Period +381 Bukonde Subcounty 2018/19 +382 Bungokho Subcounty 2018/19 +383 Bungokho-Mutoto Subcounty 2018/19 +384 Busoba Subcounty 2018/19 +385 Bugitimwa Subcounty 2018/19 +386 Buteza Subcounty 2018/19 +387 Buwasa Subcounty 2018/19 +388 Buyobo Subcounty 2018/19 +389 Masaba Subcounty 2018/19 +390 Nalusala Subcounty 2018/19 +391 Kaderuna Subcounty 2018/19 +392 Kameruka Subcounty 2018/19 +393 Iki-Iki Subcounty 2018/19 +394 Kamonkoli Subcounty 2018/19 +395 Kakule Subcounty 2018/19 +396 Kachomo Subcounty 2018/19 +397 Busitema Subcounty 2018/19 +398 Lumino Subcounty 2018/19 +399 Lunyo Subcounty 2018/19 +400 Buyanga Subcounty 2018/19 +401 Busime Subcounty 2018/19 +402 Masinya Subcounty 2018/19 +403 Budumba Subcounty 2018/19 +404 Kachonga Subcounty 2018/19 +405 Busabi Subcounty 2018/19 +406 Kirika Subcounty 2018/19 +407 Buseta Subcounty 2018/19 +408 Tirinyi Subcounty 2018/19 +409 Butebo Subcounty 2018/19 +410 Kameke Subcounty 2018/19 +411 Kamuge Subcounty 2018/19 +412 Gogonyo Subcounty 2018/19 +413 Kabwangasi Subcounty 2018/19 +414 Petete Subcounty 2018/19 +415 Kisoko Subcounty 2018/19 +416 Rubongi Subcounty 2018/19 +417 Merikit Subcounty 2018/19 +418 Petta Subcounty 2018/19 +419 Nabuyoga Subcounty 2018/19 +420 Iyolwa Subcounty 2018/19 +421 Kiziranfumbi Subcounty 2018/19 +422 Bugambe Subcounty 2018/19 +423 Kyabigambire Subcounty 2018/19 +424 Kyangwali Subcounty 2018/19 +425 Buseruka Subcounty 2018/19 +426 Bwanswa Subcounty 2018/19 +427 Mabaale Subcounty 2018/19 +428 Kagadi Subcounty 2018/19 +429 Kasambya Subcounty 2018/19 +430 Kisiita Subcounty 2018/19 +431 Matale Subcounty 2018/19 +432 Kakindo Subcounty 2018/19 +433 Nkooko Subcounty 2018/19 +434 Burora Subcounty 2018/19 +435 Kabamba Subcounty 2018/19 +436 Kyaterekera Subcounty 2018/19 +437 Kyenzige Subcounty 2018/19 +438 Busaana Subcounty 2018/19 +439 Kangulumira Subcounty 2018/19 +440 Bbaale Subcounty 2018/19 +441 Kayonza Subcounty 2018/19 +442 Kayunga Subcounty 2018/19 +443 Mutunda Subcounty 2018/19 +444 Masindi-Port Subcounty 2018/19 +445 Bwijanga Subcounty 2018/19 + + + + +No Name of Category Period +446 Bulidha Subcounty 2018/19 +447 Buwunga Subcounty 2018/19 +448 Nabukalu Subcounty 2018/19 +449 Wairasa Subcounty 2018/19 +450 Buyende Subcounty 2018/19 +451 Kidera Subcounty 2018/19 +452 Buyanga Subcounty 2018/19 +453 Nawandala Subcounty 2018/19 +454 Nambale Subcounty 2018/19 +455 Nakalama Subcounty 2018/19 +456 Imanyiro Subcounty 2018/19 +457 Kigandalo Subcounty 2018/19 +458 Kityerera Subcounty 2018/19 +459 Mpungwe Subcounty 2018/19 +460 Nakigo Subcounty 2018/19 +461 Ibulanku Subcounty 2018/19 +462 Igombe Subcounty 2018/19 +463 Nawanyingi Subcounty 2018/19 +464 Budondo Subcounty 2018/19 +465 Butagaya Subcounty 2018/19 +466 Bukooma Subcounty 2018/19 +467 Irongo Subcounty 2018/19 +468 Bulongo Subcounty 2018/19 +469 Bukanga Subcounty 2018/19 +470 Buwaaya Subcounty 2018/19 +471 Busamuzi Subcounty 2018/19 +472 Bugaya Subcounty 2018/19 +473 Nairambi Subcounty 2018/19 +474 Bufumira Subcounty 2018/19 +475 Bujjumba Subcounty 2018/19 +476 Kayamuswa Subcounty 2018/19 +477 Buswale Subcounty 2018/19 +478 Banda Subcounty 2018/19 +479 Buhemba Subcounty 2018/19 +480 Kibaale Subcounty 2018/19 +481 Magada Subcounty 2018/19 +482 Nsinze Subcounty 2018/19 +483 Amudat Subcounty 2018/19 +484 Nabilatuk Subcounty 2018/19 +485 Lolachat Subcounty 2018/19 +486 Moruita Subcounty 2018/19 +487 Loregae Subcounty 2018/19 +488 Katikekile Subcounty 2018/19 +489 Rupa Subcounty 2018/19 +490 Nakapelimoru Subcounty 2018/19 +491 Rengen Subcounty 2018/19 +492 Kapedo Subcounty 2018/19 +493 karenga Subcounty 2018/19 +494 Loyoro Subcounty 2018/19 +495 Sidok Subcounty 2018/19 +496 Kaabong East Subcounty 2018/19 +497 Lodiko Subcounty 2018/19 +498 Lotukei Subcounty 2018/19 +499 Nyakwae Subcounty 2018/19 +500 Iriiri Subcounty 2018/19 +501 Ngoleriet Subcounty 2018/19 +502 Loregecora Subcounty 2018/19 +503 Kyanamira Subcounty 2018/19 +504 Kamuganguzi Subcounty 2018/19 +505 Muko Subcounty 2018/19 +506 Buhara Subcounty 2018/19 +507 Butanda Subcounty 2018/19 +508 Kashambya Subcounty 2018/19 +509 Bukimbiri Subcounty 2018/19 +510 Kanaba Subcounty 2018/19 + + + + +344 + + + + + + + + + + + +No Name of Category Period +511 Kirundo Subcounty 2018/19 +512 Murora Subcounty 2018/19 +513 Nyabwishenya Subcounty 2018/19 +514 Nyakabande Subcounty 2018/19 +515 Nyundo Subcounty 2018/19 +516 Kambuga Subcounty 2018/19 +517 Nyamirama Subcounty 2018/19 +518 Mpungu Subcounty 2018/19 +519 Kihihi Subcounty 2018/19 +520 Nyanga Subcounty 2018/19 +521 Nyakinoni Subcounty 2018/19 +522 Kinaba Subcounty 2018/19 +523 Kebisoni Subcounty 2018/19 +524 Nyakishenyi Subcounty 2018/19 +525 Nyarushanje Subcounty 2018/19 +526 Bugangari Subcounty 2018/19 +527 Buyanja Subcounty 2018/19 +528 Omoro Subcounty 2018/19 +529 Aloi Subcounty 2018/19 +530 Amugo Subcounty 2018/19 +531 Apala Subcounty 2018/19 +532 Abia Subcounty 2018/19 +533 Aputi Subcounty 2018/19 +534 Awelo Subcounty 2018/19 +535 Arwotcek Subcounty 2018/19 +536 Etam Subcounty 2018/19 +537 Ibuje Subcounty 2018/19 +538 Nambieso Subcounty 2018/19 +539 Agwata Subcounty 2018/19 +540 Dokolo Subcounty 2018/19 +541 Kangai Subcounty 2018/19 +542 Okwalongwen Subcounty 2018/19 +543 Okwongodul Subcounty 2018/19 +544 Adekokwok Subcounty 2018/19 +545 Aromo Subcounty 2018/19 +546 Ngetta Subcounty 2018/19 +547 Adwari Subcounty 2018/19 +548 Okwang Subcounty 2018/19 +549 Madi Opei Subcounty 2018/19 +550 Agoro Subcounty 2018/19 +551 Padibe East Subcounty 2018/19 +552 Abarilela Subcounty 2018/19 +553 Acowa Subcounty 2018/19 +554 Asamuk Subcounty 2018/19 +555 Orungo Subcounty 2018/19 +556 Wera Subcounty 2018/19 +557 Ogolai Subcounty 2018/19 +558 Akeriau Subcounty 2018/19 +559 Apeduru Subcounty 2018/19 +560 Arapai Subcounty 2018/19 +561 Katine Subcounty 2018/19 +562 Kachumbala Subcounty 2018/19 +563 Kolir Subcounty 2018/19 +564 Malera Subcounty 2018/19 +565 Anyara Subcounty 2018/19 +566 Otuboi Subcounty 2018/19 +567 Bululu Subcounty 2018/19 +568 Kalaki Subcounty 2018/19 +569 Aperkira Subcounty 2018/19 +570 Kakure Subcounty 2018/19 +571 Ngariam Subcounty 2018/19 +572 Toroma Subcounty 2018/19 +573 Mukongoro Subcounty 2018/19 +574 Ongino Subcounty 2018/19 +575 Kanyumu Subcounty 2018/19 + + + + +No Name of Category Period +576 Mukura Subcounty 2018/19 +577 Kowin Subcounty 2018/19 +578 Kapir Subcounty 2018/19 +579 Bugondo Subcounty 2018/19 +580 Kadungulu Subcounty 2018/19 +581 Kateta Subcounty 2018/19 +582 Labori Subcounty 2018/19 +583 Asuret Subcounty 2018/19 +584 Gweri Subcounty 2018/19 +585 Bukuuku Subcounty 2018/19 +586 Kichwamba Subcounty 2018/19 +587 Kisomoro Subcounty 2018/19 +588 Mugusu Subcounty 2018/19 +589 Kasenda Subcounty 2018/19 +590 Kateebwa Subcounty 2018/19 +591 Bubukwanga Subcounty 2018/19 +592 Busara Subcounty 2018/19 +593 Kahunge Subcounty 2018/19 +594 Mahyoro Subcounty 2018/19 +595 Nkoma Subcounty 2018/19 +596 Ntara Subcounty 2018/19 +597 Nyabbani Subcounty 2018/19 +598 Biguli Subcounty 2018/19 +599 Kasitu Subcounty 2018/19 +600 Bukonzo Subcounty 2018/19 +601 Bwera Subcounty 2018/19 +602 Kisinga Subcounty 2018/19 +603 Kitswamba Subcounty 2018/19 +604 Rukooki Subcounty 2018/19 +605 Bugoye Subcounty 2018/19 +606 Karusandara Subcounty 2018/19 +607 Kisuba Subcounty 2018/19 +608 Kirumya Subcounty 2018/19 +609 Nyakiyumbu Subcounty 2018/19 +610 Kilembe Subcounty 2018/19 +611 Kitholhu Subcounty 2018/19 +612 Kyondo Subcounty 2018/19 +613 Maliba Subcounty 2018/19 +614 Mukunyu Subcounty 2018/19 +615 Kakabara Subcounty 2018/19 +616 Ruyonza Subcounty 2018/19 +617 Rwetuuha Subcounty 2018/19 +618 Kyarusozi Subcounty 2018/19 +619 Bufunjo Subcounty 2018/19 +620 Butiiti Subcounty 2018/19 +621 Nyankwanzi Subcounty 2018/19 +622 Nyabuharwa Subcounty 2018/19 +623 Rwebisengo Subcounty 2018/19 +624 Bweramule Subcounty 2018/19 +625 Nombe Subcounty 2018/19 +626 Uleppi Subcounty 2018/19 +627 Pajulu Subcounty 2018/19 +628 Logiri Subcounty 2018/19 +629 Odupi Subcounty 2018/19 +630 Ogoko Subcounty 2018/19 +631 Arivu Subcounty 2018/19 +632 Pawor Subcounty 2018/19 +633 Aroi Subcounty 2018/19 +634 Oluko Subcounty 2018/19 +635 Uriama Subcounty 2018/19 +636 Ayivuni Subcounty 2018/19 +637 Midia Subcounty 2018/19 +638 Kuluba Subcounty 2018/19 +639 Abuku Subcounty 2018/19 +640 Dranya Subcounty 2018/19 + + + + +345 + + + + + + + + + + + +No Name of Category Period +641 Kijomoro Subcounty 2018/19 +642 Metu Subcounty 2018/19 +643 Dufile Subcounty 2018/19 +644 Gimara Subcounty 2018/19 +645 Lefori Subcounty 2018/19 +646 Laropi Subcounty 2018/19 +647 Erussi Subcounty 2018/19 +648 Nebbi Subcounty 2018/19 +649 Pakwach Subcounty 2018/19 +650 Wadelai Subcounty 2018/19 +651 Panyimur Subcounty 2018/19 +652 Parombo Subcounty 2018/19 +653 Kuru Subcounty 2018/19 +654 Odravu Subcounty 2018/19 +655 Apo Subcounty 2018/19 +656 Romogi Subcounty 2018/19 +657 Ariwa Subcounty 2018/19 +658 Kerwa Subcounty 2018/19 +659 Minakulu Subcounty 2018/19 +660 Aber Subcounty 2018/19 +661 Acaba Subcounty 2018/19 +662 Iceme Subcounty 2018/19 +663 Kamdini Subcounty 2018/19 +664 Myene Subcounty 2018/19 +665 Oilim Subcounty 2018/19 +666 Bwikhonge Subcounty 2018/19 +667 Mukoto Subcounty 2018/19 +668 Bukhalu Subcounty 2018/19 +669 Kanginima Subcounty 2018/19 +670 Kakoro Subcounty 2018/19 +671 Butandiga Subcounty 2018/19 +672 Bukyabo Subcounty 2018/19 +673 Buhugu Subcounty 2018/19 +674 Zesui Subcounty 2018/19 +675 Busulani Subcounty 2018/19 +676 Bunyafwa Subcounty 2018/19 +677 Buwalasi Subcounty 2018/19 +678 Bukiyi Subcounty 2018/19 +679 Bumasobo Subcounty 2018/19 +680 Buluganya Subcounty 2018/19 +681 Buginyanya Subcounty 2018/19 +682 Masira Subcounty 2018/19 +683 Bunambutye Subcounty 2018/19 +684 Bulaago Subcounty 2018/19 +685 Bukhalu Subcounty 2018/19 +686 Bwikhonge Subcounty 2018/19 +687 Kaptanya Subcounty 2018/19 +688 Kaserem Subcounty 2018/19 +689 Gamogo Subcounty 2018/19 +690 Kitawoi Subcounty 2018/19 +691 Kapsinda Subcounty 2018/19 +692 Kabenywa Subcounty 2018/19 +693 Amukol Subcounty 2018/19 +694 Kwosir Subcounty 2018/19 +695 Moyok Subcounty 2018/19 +696 Kiriki Subcounty 2018/19 +697 Kaptum Subcounty 2018/19 +698 Ngenge Subcounty 2018/19 +699 Magale Subcounty 2018/19 +700 Tsekululu Subcounty 2018/19 +713 13 Classified audits +714 1 Engineering Audit involving 15 projects under UNRA +743 29 Forensic and Special Audits +748 5 IT audits +751 3 Themes + + + + +346 + + + + + + + + + + + +ANNEXURE V – DEFERRED AUDITS 2018-2019 + +No. Entity CAT Sector +1 Ankara MDA Public admin +2 Canberra MDA Public admin +3 Kuala Lampur MDA Public admin +4 Abuja MDA Public admin +5 QUISP Project Trade +6 Uganda Livestock Institute SC Accountability +7 DICOSS Project Trade +8 Refugee Host relations in N. Uganda Project Education +9 WELSPRING - EDUC.ATING LAWYERS FOR SOCIAL CHANGE Project Education +10 Conflict Related Sexual Violence in forms of Context, Logic and Impact Project Education +11 Building National Capacity to adopt the 2nd edition of the International Protocol on the Documentation and Investigation of Sexual Violence in Conflict-PSVI Project Education +12 Provision of Legal Aid and Psychosocial services to Refugees, asylum seekers and Deportees in Uganda Project Education +13 TB & Emerging infectious diseases (Boston University Project Education +14 MEPI-NURTURE Project Education +15 Provide Legal Aid & Counselling to Refugee and failed asylum seekers Project Education +16 Conjugal Slavery in war; Partnership for the study of enslavement, Marriage and Masculinities Project Education +17 THRIVE Project Education +18 MUCHAP-audit for 4 years Project Education +19 MAK TRYPANOGEN Project Education +20 Carnegie: Postgraduate training and research programs Project Education +21 NORHED - (Agreement No: UGA-13/0023) Project Education +22 TTI Phase 2 Institutional Support: (MISR) Centre File: 107906-001 Project Education +23 Support Makerere Institute of Social Research - Project Project Education +24 For the Doctoral Program in Social Studies at the Makerere Institute for Social Research Project Education +25 Core Funding for forced Project Education + + + + +No. Entity CAT Sector +migrants and Transitional Justice +26 Health Information Training & Research in AE for Improved Health Care (HI-TRAIN PROJECT) Project Education +27 Land Justice and Post- Election Governance Project Education +28 DGF - Promoting Public Interest Lawyering in Uganda; Project Education +29 Support of a workshop and Mphil student fellowships Project Education +30 Confucius institute Project Education +31 REVAMP Project Education +32 SOCIAL NETWORKS Project Education +33 DIPT Project Education +34 ADEPIT Project Education +35 EXTEND Project Education +36 MRI NIH Project Education +37 CAD Project Education +38 TLD Project Education +39 RASA Project Education +40 VOICES Project Education +41 SKILL ACQUISTION Project Education +42 BREEDING SITE Project Education +43 SMART DISCHAGE Project Education +44 VLIR RWIZI Project Education +45 DISCO Project Education +46 BEMEIC Project Education +47 MAMA NA MTOTO Project Education +48 MAAIF - Proposed Livestock Marketing and Production Infranstructure Projects Engineering Agriculture +49 Nakapiripirit Technical Institute School Education +50 Kotido PTC School Education +51 Kotido Tech Inst School Education +52 Abim Technical Institute School Education +53 Old Kampala SSS School Education +54 Lubiri SSS School Education +55 St Joseph Technical Institute School Education +56 Kitgum High School School Education +57 Sir Samuel Baker School School Education +58 Nakaloke islamic SS School Education +59 St. Maurice S.S. Lwaggulwe School Education +60 Arua Sch of Comp Nursing School Education +61 Moyo S.S School Education +62 Mvara S.S School Education +63 St. Aloysious Nyapea School Education +64 Warr Girls 2015 School Education +65 Warr Girls 2016 School Education +66 BWIZI Subcounty LLGs +67 KASULE Subcounty LLGs +68 KIRAGAALE Subcounty LLGs +69 BIISO Subcounty LLGs +70 BUGAAKI Subcounty LLGs +71 LWASSO Subcounty LLGs +72 LUKHONGE Subcounty LLGs +73 KAMWENGE Subcounty LLGs + + + + +347 + + + + + + + + + + + +No. Entity CAT Sector +74 NABIGASA Subcounty LLGs +75 PALABEK Subcounty LLGs +76 LAMIYO Subcounty LLGs +77 BALA Subcounty LLGs +78 OJWINA Subcounty LLGs +79 LAPONO Subcounty LLGs +80 AKOLO Subcounty LLGs +81 ABONGOMOLA Subcounty LLGs +82 BUBYANGU Subcounty LLGs +83 MULANDA Subcounty LLGs +84 BUDWALE Subcounty LLGs +85 WANALE Subcounty LLGs +86 EAST DIVISION - BUSIA Division LLGs +87 WANALE Subcounty LLGs +88 BUKULULA Subcounty LLGs +89 BUKOMERO Subcounty LLGs +90 MPUMUDDE Subcounty LLGs +91 BBANDA Subcounty LLGs +92 NORTHERN DIVISION - MBALE Division LLGs +93 BUKIENDE Subcounty LLGs +94 BUTIABA Subcounty LLGs +95 MPARA Subcounty LLGs +96 WESTERN DIVISION - BUSIA Division LLGs +97 MBALE INDUSTRIAL Subcounty LLGs +98 LWENGO Subcounty LLGs +99 KYAZANGA Subcounty LLGs +100 GAYAZA Subcounty LLGs +101 KOBULUBULU Subcounty LLGs +102 DWANIRO Subcounty LLGs +103 KALISIZO Subcounty LLGs +104 BUTENGA Subcounty LLGs +105 KABONERO Subcounty LLGs +106 KAKINDU Subcounty LLGs +107 BUTEMBA Subcounty LLGs +108 MALONGO Subcounty LLGs +109 OCHERO Subcounty LLGs +110 ALWA Subcounty LLGs +111 MUGOYE Subcounty LLGs +112 KIHUURU Subcounty LLGs +113 NYATUNGO Subcounty LLGs +114 MAGORO Subcounty LLGs +115 KUJU Subcounty LLGs +116 OBALANGA Subcounty LLGs +117 Jaguzi SC Subcounty LLGs +118 South Division Division LLGs +119 Drajini SC Subcounty LLGs +120 Abanga SC Subcounty LLGs +121 Buhuhira SC Subcounty LLGs +122 Ogur SC Subcounty LLGs +123 Okollo SC (FY 12/13) Subcounty LLGs +126 3 Subcounties for Kampala Subcounty LLGs +156 30 Subcounties for Hoima and Fortportal Subcounty LLGs + + + + + +348 + + + + + + + + + + + +ANNEXURE VI – DEFERRED AUDITS 2019/20 + +No. Entity CAT Period +1 Uganda Embassy in Rome MDA 2019/20 +2 Uganda Embassy in Riyadh MDA 2019/20 +3 Uganda Embassy in Berlin MDA 2019/20 +4 Uganda Embassy in Abu Dhabi MDA 2019/20 +5 Uganda Mission in Algiers MDA 2019/20 +6 Uganda Embassy in Cairo MDA 2019/20 +7 Uganda Embassy in Brussels MDA 2019/20 +8 Uganda High Commission New Delhi MDA 2019/20 +9 Uganda Embassy in Moscow MDA 2019/20 +10 Uganda Embassy in Geneva MDA 2019/20 +11 Uganda Embassy in Paris MDA 2019/20 +12 Uganda Mission in Mombasa MDA 2019/20 +13 Guangzhou Consulate in China MDA 2019/20 +14 Uganda Embassy in China, Beijing MDA 2019/20 +15 Uganda Embassy in Khartoum MDA 2019/20 +16 Uganda Embassy in Teheran MDA 2019/20 +17 Uganda Embassy in DRC, Kinshasa MDA 2019/20 +18 Uganda Embassy in Juba MDA 2019/20 +19 Uganda Mission in Mogadishu MDA 2019/20 +20 Uganda Embassy in Tokyo MDA 2019/20 +21 Uganda Embassy in Washington MDA 2019/20 +22 Uganda High Commission Abuja MDA 2019/20 +23 Uganda Embassy in Addis Ababa MDA 2019/20 +24 Uganda Embassy in Ankara MDA 2019/20 +25 Uganda Embassy in Bujumbura MDA 2019/20 +26 Uganda High Commission, Canberra MDA 2019/20 +27 Uganda Embassy in Copenhagen MDA 2019/20 +28 Uganda High Commission, Dar es Salaam MDA 2019/20 +29 Uganda High Commission, Kigali MDA 2019/20 +30 Uganda Mission in Kuala Lumpur MDA 2019/20 +31 Uganda High Commission, London MDA 2019/20 +32 Uganda High Commission, Nairobi MDA 2019/20 +33 Uganda Embassy New York MDA 2019/20 +34 Uganda High commission, Ottawa MDA 2019/20 +35 Uganda High commission, Pretoria MDA 2019/20 +36 Uganda High commission, Doha MDA 2019/20 +37 National Enterprise Corporation (NEC) _ Headquarter SC 2019/20 +38 National Enterprise Corporation (NEC) – Tractor Project Limited SC 2019/20 +39 National Enterprise Corporation (NEC) – Luwero Industries Limited SC 2019/20 + + + + +No. Entity CAT Period +40 National Enterprise Corporation (NEC) – Construction Works and Engineering Limited SC 2019/20 +41 National Enterprise Corporation (NEC) – UZIMA Limited SC 2019/20 +42 National Enterprise Corporation (NEC) – Farm Katonga Limited SC 2019/20 +43 Uganda Air Cargo SC 2019/20 +44 Centres for Disease Control and Prevention (CDC) Project 2019/20 +45 JLOS SWAP Project 2019/20 +46 Local Economic Growth Support Project (LEGS) Project 2019/20 +47 Development Initiative for Northern Uganda (DINU) Project 2019/20 +48 Housing Finance Bank (New entity) (Asset Based) SC 2019/20 +49 KIIRA Motors Limited MDA 2019/20 +50 Leadership Code Tribunal SC 2019/20 +51 Presidential Intiative on Banana Industrial Development (PIBID) MDA 2019/20 +52 Public Servants Housing Scheme (Asset Base) SC 2019/20 +53 Uganda Communications Employee Contributory Scheme (UCEPS) - (Asset Based) SC 2019/20 +54 Uganda Hotel and Tourism Training Institute (UHTTI) Jinja SC 2019/20 +55 Uganda Seeds Co Ltd. (Asset Base) - 19/20 SC 2019/20 +56 Uganda Wildlife Education Centre (UWEC) SC 2019/20 +57 Uganda Wildlife Research and Training Institute (UWRTI) Kasese MDA 2019/20 +58 UICT MDA 2019/20 +59 BIO - REPOSITORY - MUK Project 2019/20 +60 CNOOC 2018 PSA 2019/20 +61 ENPE Project of Petroleum Geoscience Collaboration Project 2019/20 +62 Kampala-Entebbe Expansion Project Project 2019/20 +63 Lake Victoria Water and Sanitation Project Project 2019/20 +64 Nakivubo war memorial Stadium SC 2019/20 +65 Makerere Institute of Social Research (MISR) MDA 2019/20 +66 NORHED - Kyambogo University Project (1) Project 2019/20 +67 NORHED - Kyambogo University Project (2) Project 2019/20 +68 Thrive - MUK Project 2019/20 +69 TOTAL EA1 2018 PSA 2019/20 +70 TOTAL EA1A 2018 PSA 2019/20 +71 TULLOW 2018 PSA 2019/20 +72 Global Medicine Program - MUST Project Project 2019/20 +73 LAK - MUST Project Project 2019/20 +74 Nursing First Miles - MUST Project Project 2019/20 + + + + +349 + + + + + + + + + + + +No. Entity CAT Period +75 Tress - MUST Project Project 2019/20 +76 Pipoc - MUST Project Project 2019/20 +77 Capacity Building (First Miles) - MUST Project Project 2019/20 +78 MOMs Project 2019/20 +79 Kayanja Fellowship Project 2019/20 +80 MENU Project 2019/20 +81 Sustainable MRI system to diagnose hydrocephalus in Uganda - WOTRO Project 2019/20 +82 Cypotoccocooisis Project 2019/20 +83 Lesu Project 2019/20 +84 MACT Project 2019/20 +85 “Antenatal Couples' Counselling in Uganda (ACCU)” Project 2019/20 +86 TB Speed Project 2019/20 +87 Massachusetts GeneralHospital(MGH) VisitorsCordination Project 2019/20 +88 REFUGEE INTERGRATION Project 2019/20 +89 WIMS Project 2019/20 +90 CPAC Project 2019/20 +91 Camtech First Miles Project 2019/20 +92 D-SIRE Project 2019/20 +93 Gates Vaccine Study Project 2019/20 +94 GENE EXPERT Project 2019/20 +95 ONCOLOGY Project 2019/20 +96 CONESH Project 2019/20 +97 URINE TFV STUDY Project 2019/20 +98 PACO Project 2019/20 +99 ADEPTT Project 2019/20 +100 EXTEND Project 2019/20 +101 SMART DISCHARGE Project 2019/20 +102 SOCIAL NETWORK Project 2019/20 +103 Mama Toto Project 2019/20 +104 DIPT Project 2019/20 +105 REVAMP Project 2019/20 +106 CAD Project 2019/20 +107 Land Use Project 2019/20 +108 Breeding Site Project 2019/20 +109 TLD (K23) Project 2019/20 +110 RASA Project 2019/20 +111 PUBLIC ENGAGEMENT Project 2019/20 +112 DISCO Project 2019/20 +113 SKILLS ACQISITION Project 2019/20 +114 VOICES Project 2019/20 +115 MRI NIH Project 2019/20 +116 Improvement of Health Services Delivery at Mulago Hospital and in the City of Kampala Project (MKCCAP) Project 2019/20 +117 Uganda National Health Research Organization (2019/2020) MDA 2019/20 +118 Uganda Reproductive, Maternal and Child Health Services Improvement Project (URMCHSIP) Project 2019/20 +119 Uganda Nurses and Midwives Council SC 2019/20 +120 Allied Health Practitioners' Council SC 2019/20 +121 Uganda Medical and Dental Practitioners' Council SC 2019/20 +122 Joint Clinical Research Centre SC 2019/20 + + + + +No. Entity CAT Period +(JCRC) +123 Uganda National Health Research Organization (2019/2020) SC 2019/20 +124 Karamoja Region Staff Housing Project Project 2019/20 +125 Spain-Uganda Debt swap for Renovation of Kawolo & Busolwe General Hospital Project 2019/20 +126 Rehabilitation & Expansion of Kayunga & Yumbe Hospitals Project 2019/20 +127 Uganda Sanitation Fund Project 2019/20 +128 Global Fund Project 2019/20 +129 Busega-Mpigi road project Project 2019/20 +130 Management of E-Waste in Uganda VFM audits 2019/20 +131 Impact Evaluation of the Multi-sectoral Food Safety and Nutrition Project VFM audits 2019/20 +132 Regulation of activities in the Mining sector VFM audits 2019/20 +133 Gender-based Violence/Violence against women VFM audits 2019/20 +134 Budget Performance- Health Sector VFM audits 2019/20 +135 Budget Performance- Works Sector VFM audits 2019/20 +136 Implementation of Uganda Reproductive Maternal and Child Health Services Improvement Project VFM audits 2019/20 +137 Utilisation of Road equipment VFM audits 2019/20 +138 PPP Audit on a small/ mini- power plant in energy generation and distribution VFM audits 2019/20 +139 Implementation of climate change adaptation and mitigation measures by the Department of Climate Change in MWE VFM audits 2019/20 +140 Uganda Skills Development Project VFM audits 2019/20 +141 Utilisation of Medical equipment VFM audits 2019/20 +142 Human Resource Management in the Health Sector VFM audits 2019/20 +143 Baseline VFMaudit/assessment underUgIFT VFM audits 2019/20 +144 Management of Markets VFM audits 2019/20 +145 Implementation of Agriculture Cluster Development Project(ACDP) VFM audits 2019/20 +146 Fire Prevention and Rescue services by Uganda Police VFM audits 2019/20 +147 Management of Natural Forests VFM audits 2019/20 +148 Management of Research by Higher Institutions of Learning VFM audits 2019/20 +149 Uganda Women Entrepreneurship Programme (UWEP) VFM audits 2019/20 +150 Management of Government Investments under the Uganda Development 2019/20 + + + + +350 + + + + + + + + + + + +No. Entity CAT Period +Corporation +151 Electoral Commission Special audits 2019/20 +152 Procurement of FMD vaccines Special audits 2019/20 +153 Special audit on the emergency procurement of cotton seedling from Zimbabwe in 2015 Special audits 2019/20 +154 QUISP Special audits 2019/20 +155 Special audit on rental of office space and management of the learners project by NIRA Special audits 2019/20 +156 Alleged falsification and forgery of distribution lists of coffee seedlings submitted to UCDA in Bugiri District. Special audits 2019/20 +157 International Crime Division Arbitration expenses at Gulu Court Special audits 2019/20 +158 Financial scam at Copenhagen Mission, Denmark Special audits 2019/20 +159 Management of certificates of good conduct Special audits 2019/20 +160 Gross mismanagement, misuse of power and authority, witch hunt and malicious dismissal of staff by Ms. Ntambi Sylvia Muwebwa, Chairperson Equal Opportunities Commission Special audits 2019/20 +161 Alleged embezzlement, causing financial loss and abuse of office. Special audits 2019/20 +162 Allegations of corruption , abuse of office, embezzlement and forgery by some Kyambogo University officials Special audits 2019/20 +163 Petition for an investigation into financial impropriety at Uganda National Examination Board Special audits 2019/20 +164 Request for an investigative audit of FUFA and Moses Magogo Special audits 2019/20 +165 Request for a forensic audit in the alleged diversion of funds from Capital Development of Soroti University by Achimo Ruth and others (IGG) Special audits 2019/20 +166 Alleged abuse of diversion of Public resources and causing financial loss by officials of Soroti University (CID) Special audits 2019/20 +167 National Medical Stores Special audits 2019/20 +168 Uganda Revenue Authority Building Special audits 2019/20 +169 Kagadi Hospital Special audits 2019/20 +170 National Drug Authority Laboratory Special audits 2019/20 +171 Ministry of Works & Transport - SGS Special audits 2019/20 +172 Akiibua Special audits 2019/20 +173 UHSSP Special audits 2019/20 +174 Investigation of Mismanagement of Uganda Road Fund in Tororo Special audits 2019/20 + + + + +No. Entity CAT Period +Municipal Council +175 A request for a special audit on Rukiga DLG for the period July2018-June 2019 Special audits 2019/20 +176 A request for a special audit of Arua School of Comprehensive Nursing Special audits 2019/20 +177 ESCROW Account on UMEME Special audits 2019/20 +178 UNRA Regional Offices in Moyo and Hoima Special audits 2019/20 +179 Complaint against the payment of Ugx.7.4Bn to AF Mpanga Advocates Special audits 2019/20 +180 Request for a forensic audit on Kayonza Growers Tea Factory Ltd Special audits 2019/20 +181 Request for Forensic Audit of Uganda College of Commerce Aduku.(LG to provide financial audit reports) Special audits 2019/20 +182 Alleged causing financial Loss of office and attempt to defraud Equal Opportunities Commission Special audits 2019/20 +183 Accountability of funds released from Min. OF Local Government to Apac LG during 2017/18 F/Y Special audits 2019/20 +184 Special audit of the UPF procurement department and interdiction of the AIGP in charge of logistics and Engineering Special audits 2019/20 +185 DCIC- Visa Special audits 2019/20 +186 Pool Houses fund held at Housing Finance Bank Special audits 2019/20 +187 Gulu University Special audits 2019/20 +188 Refugees MIS under OPM IT audits 2019/20 +189 FACE Technologies IT audits 2019/20 +190 Airport OperationsManagement System IT audits 2019/20 +191 ACDP IT Audit IT audits 2019/20 +192 East African Association of Anti-corruption Authorities (EAAACA) International audits 2019/20 +193 East African Community (EAC) International audits 2019/20 +194 Uganda Electricity Generation Company Limited (UEGCL) Engineering audits 2019/20 +195 Ministry of Energy and Mineral Development (MEMD) Engineering audits 2019/20 +196 National Water Sewerage Corporation (NWSC) Engineering audits 2019/20 +197 Uganda ElectricityTransmission CompanyLimited (UETCL) Engineering audits 2019/20 +198 Kampala Capital City Authority (KCCA) Engineering audits 2019/20 +199 Ministry of Agriculture, Animal, Industry and Fisheries (MAAIF) Engineering audits 2019/20 +200 Ministry of Works and Transport (MoWT) Engineering audits 2019/20 +201 Ministry of Local Government (MoLG) Engineering audits 2019/20 +202 National Social Security Fund (NSSF) Engineering audits 2019/20 + + + + +351 + + + + + + + + + + + +No. Entity CAT Period +203 Ministry of Water and Environment (MoWE) Engineering audits 2019/20 +204 Uganda Civil Aviation Authority (UCAA) Engineering audits 2019/20 +205 Ministry of Education and Sports (MoES) Engineering audits 2019/20 +206 Ministry of Health (MoH) Engineering audits 2019/20 +207 Rural Electrification Agency (REA) Engineering audits 2019/20 +208 Ministry of Lands, Housing and Urban Development (MoLHUD and 22 Municipal Councils (Uganda Support to Municipal Infrastructure Development) Engineering audits 2019/20 +209 Entebbe Division B – Entebbe MC Division 2018/19 +210 Nansana Division – Nansana MC Division 2018/19 +211 Nabweru Division – Nansana MC Division 2018/19 +212 Busukuma Division – Nansana MC Division 2018/19 +213 Gombe Division – Nansana MC Division 2018/19 +214 Entebbe Division A – Entebbe MC Division 2018/19 +215 Ndejje Division – Makindye MC Division 2018/19 +216 Masajja Division – Makindye MC Division 2018/19 +217 Bunamwaya Div – Makindye MC Division 2018/19 +218 Kira Division – Kira MC Division 2018/19 +219 Namugongo Division – Kira Division 2018/19 +220 Central Division - mukono Division 2018/19 +221 Goma – Mukono MC Division 2018/19 +222 Bweyogerere – Kira MC Division 2018/19 +223 Ttamu –Mityana MC Division 2018/19 +224 Central div – Mityana MC Division 2018/19 +225 Busimbi Div – Mityana MC Division 2018/19 +226 Buikwe TC Town Council 2018/19 +227 Banda TC Town Council 2018/19 +228 Namayumba Town Council 2018/19 +229 Migeera Town Council 2018/19 +230 Kasanje Town Council 2018/19 +231 Nakasongola Town Council 2018/19 +232 Busaana Town Council 2018/19 +233 Kyengera Town Council 2018/19 +234 Kakooge Town Council 2018/19 +235 Kakiri Town Council 2018/19 +236 Katabi Town Council 2018/19 +237 Wobulenzi Town Council 2018/19 +238 Wakiso Town Council 2018/19 +239 Ssekanyonyi Town Council 2018/19 +240 Masulita Town Council 2018/19 +241 Nkokonjeru Town Council 2018/19 +242 Mpigi Town Council 2018/19 +243 Buwama Town Council 2018/19 +244 Kayabwe Town Council 2018/19 +245 Buvuma Town Council 2018/19 +246 Kiyindi Town Council 2018/19 +247 Busunju Town Council 2018/19 +248 Gombe Town Council 2018/19 +249 Zigoti Town Council 2018/19 + + + + +No. Entity CAT Period +250 Nakaseke Town Council 2018/19 +251 Kiwoko Town Council 2018/19 +252 Ngoma Town Council 2018/19 +253 Nakaseke-Butalangu Town Council 2018/19 +254 Semuto Town Council 2018/19 +255 Luwero Town Council 2018/19 +256 Bombo Town Council 2018/19 +257 Kayunga Town Council 2018/19 +258 Katosi Town Council 2018/19 +259 Nakifuma-Nagalama Town Council 2018/19 +260 Namataba Town Council 2018/19 +261 Kasawo Town Council 2018/19 +262 Ntenjeru-Kisoga Town Council 2018/19 +263 Nazigo Town Council 2018/19 +264 Kasangati Town Council 2018/19 +265 Kajjansi Town Council 2018/19 +266 Lwampanga Subcounty 2018/19 +267 Kalongo Subcounty 2018/19 +268 Lwabiyata Subcounty 2018/19 +269 Nabiswera Subcounty 2018/19 +270 Galiraaya Subcounty 2018/19 +271 Kitimbwa Subcounty 2018/19 +272 Nazigo Subcounty 2018/19 +273 Kakiri Subcounty 2018/19 +274 Masulita Subcounty 2018/19 +275 Kinyogoga Subcounty 2018/19 +276 Nakitoma Subcounty 2018/19 +277 Kinoni 15/16 Subcounty 2015/16 +278 Kinoni 16/17 Subcounty 2016/17 +279 Kinoni 17/18 Subcounty 2017/18 +280 Kinoni 18/19 Subcounty 2018/19 +281 Namayumba Subcounty 2018/19 +282 Ssekanyonyi Subcounty 2018/19 +283 Kakindu Subcounty 2018/19 +284 Malangala Subcounty 2018/19 +285 Najja 15/16 Subcounty 2015/16 +286 Najja 16/17 Subcounty 2016/17 +287 Najja 17/18 Subcounty 2017/18 +288 Najja 18/19 Subcounty 2018/19 +289 Banda Subcounty 2018/19 +290 Kitto 15/16 Subcounty 2015/16 +291 Kitto 16/17 Subcounty 2016/17 +292 Kitto 17/18 Subcounty 2017/18 +293 Kitto 18/19 Subcounty 2018/19 +294 Migeera Subcounty 2018/19 +295 Kasanje Subcounty 2018/19 +296 Ngogwe Subcounty 2018/19 +297 Ssibukunja Subcounty 2018/19 +298 Buikwe 15/16 Subcounty 2015/16 +299 Buikwe 16/17 Subcounty 2016/17 +300 Buikwe 17/18 Subcounty 2017/18 +301 Buikwe 18/19 Subcounty 2018/19 +302 Muduuma Subcounty 2018/19 +303 Buwama Subcounty 2018/19 +304 Kammengo Subcounty 2018/19 +305 Budde Subcounty 2018/19 +306 Bulo Subcounty 2018/19 +307 Kalamba Subcounty 2018/19 +308 Lwajje 15/16 Subcounty 2015/16 +309 Lwajje 16/17 Subcounty 2016/17 +310 Lwajje 17/18 Subcounty 2017/18 +311 Lwajje 18/19 Subcounty 2018/19 +312 Buwooya 15/16 Subcounty 2015/16 +313 Buwooya 16/17 Subcounty 2016/17 +314 Buwooya 17/18 Subcounty 2017/18 + + + + +352 + + + + + + + + + + + +No. Entity CAT Period +315 Buwooya 18/19 Subcounty 2018/19 +316 Bweema Subcounty 2018/19 +317 Kalagala 15/16 Subcounty 2015/16 +318 Kalagala 16/17 Subcounty 2016/17 +319 Kalagala 17/18 Subcounty 2017/18 +320 Kalagala 18/19 Subcounty 2018/19 +321 Kamira 15/16 Subcounty 2015/16 +322 Kamira 16/17 Subcounty 2016/17 +323 Kamira 17/18 Subcounty 2017/18 +324 Kamira 18/19 Subcounty 2018/19 +325 Luwero Subcounty 2018/19 +326 Nakaseke 15/16 Subcounty 2015/16 +327 Nakaseke 16/17 Subcounty 2016/17 +328 Nakaseke 17/18 Subcounty 2017/18 +329 Nakaseke 18/19 Subcounty 2018/19 +330 Kikamulo 15/16 Subcounty 2015/16 +331 Kikamulo 16/17 Subcounty 2016/17 +332 Kikamulo 17/18 Subcounty 2017/18 +333 Kikamulo 18/19 Subcounty 2018/19 +334 Ngoma 15/16 Subcounty 2015/16 +335 Ngoma 16/17 Subcounty 2016/17 +336 Ngoma 17/18 Subcounty 2017/18 +337 Ngoma 18/19 Subcounty 2018/19 +338 Semuto 15/16 Subcounty 2015/16 +339 Semuto 16/17 Subcounty 2016/17 +340 Semuto 17/18 Subcounty 2017/18 +341 Semuto 18/19 Subcounty 2018/19 +342 Kasangombe 15/16 Subcounty 2015/16 +343 Kasangombe 16/17 Subcounty 2016/17 +344 Kasangombe 17/18 Subcounty 2017/18 +345 Kasangombe 18/19 Subcounty 2018/19 +346 Wakyato 15/16 Subcounty 2015/16 +347 Wakyato 16/17 Subcounty 2016/17 +348 Wakyato 17/18 Subcounty 2017/18 +349 Nagojje 15/16 Subcounty 2015/16 +350 Nagojje 16/17 Subcounty 2016/17 +351 Nagojje 17/18 Subcounty 2017/18 +352 Nagojje 18/19 Subcounty 2018/19 +353 Nama Subcounty 2018/19 +354 Ntenjeru[1] (No.33) Town Council 2018/19 +355 Ntenjeru[2] (No.37) Town Council 2018/19 +356 Kimenyedde Subcounty 2018/19 +357 Seeta - Namuganga 15/16 Subcounty 2015/16 +358 Seeta - Namuganga 16/17 Subcounty 2016/17 +359 Seeta - Namuganga 17/18 Subcounty 2017/18 +360 Seeta - Namuganga 18/19 Subcounty 2018/19 +361 Mpatta 15/16 Subcounty 2015/16 +362 Mpatta 16/17 Subcounty 2016/17 +363 Mpatta 17/18 Subcounty 2017/18 +364 Mpatta 18/19 Subcounty 2018/19 +365 Ntunda 15/16 Subcounty 2015/16 +366 Ntunda 16/17 Subcounty 2016/17 +367 Ntunda 17/18 Subcounty 2017/18 +368 Ntunda 18/19 Subcounty 2018/19 +369 Koome Islands[3] Subcounty 2018/19 +370 Nakisunga Subcounty 2018/19 +371 Lyabaana 14/15 Subcounty 2014/15 +372 Lyabaana 15/16 Subcounty 2015/16 +373 Lyabaana 16/17 Subcounty 2016/17 +374 Lyabaana 17/18 Subcounty 2017/18 +375 Lyabaana 18/19 Subcounty 2018/19 +376 Lubya 15/16 Subcounty 2015/16 +377 Lubya 16/17 Subcounty 2016/17 +378 Lubya 17/18 Subcounty 2017/18 +379 Lubya 18/19 Subcounty 2018/19 + + + + +No. Entity CAT Period +380 Arua Hill Division Division 2018/19 +381 River Oli Division Division 2018/19 +382 Thatha Division Division 2018/19 +383 Abindu Division Division 2018/19 +384 Central Division Division 2018/19 +385 North Division Division 2018/19 +386 South Division Division 2018/19 +387 West Division Division 2018/19 +388 Pakwach Town Council 2018/19 +389 Parombo Town Council 2018/19 +390 Paidha Town Council 2018/19 +391 Zombo Town Council 2018/19 +392 Maracha Town Council 2018/19 +393 Yumbe Town Council 2018/19 +394 Moyo Town Council 2018/19 +395 Adjumani Town Council 2018/19 +396 Pakere Town Council 2018/19 +397 Adumi Subcounty 2018/19 +398 Ajia Subcounty 2018/19 +399 Manibe Subcounty 2018/19 +400 Katrini Subcounty 2018/19 +401 Omugo Subcounty 2018/19 +402 Bileafe Subcounty 2018/19 +403 Aiivu Subcounty 2018/19 +404 Dadamu Subcounty 2018/19 +405 Vurra Subcounty 2018/19 +406 Rhino camp Subcounty 2018/19 +407 Rigbo Subcounty 2018/19 +408 Offaka Subcounty 2018/19 +409 Okollo Subcounty 2018/19 +410 Anyiribu Subcounty 2018/19 +411 Ewanga Subcounty 2018/19 +412 Nyaravur Subcounty 2018/19 +413 Akworo Subcounty 2018/19 +414 Ndhew Subcounty 2018/19 +415 Atego Subcounty 2018/19 +416 Kuchwiny Subcounty 2018/19 +417 Panyango Subcounty 2018/19 +418 Alwi Subcounty 2018/19 +419 Atyak Subcounty 2018/19 +420 Athuma Subcounty 2018/19 +421 Jangokoro Subcounty 2018/19 +422 Alangi Subcounty 2018/19 +423 Zeu Subcounty 2018/19 +424 Kango Subcounty 2018/19 +425 Abanga Subcounty 2018/19 +426 Paidha Subcounty 2018/19 +427 Warr Subcounty 2018/19 +428 Nyapea Subcounty 2018/19 +429 Akaa Subcounty 2018/19 +430 Lobule Subcounty 2018/19 +431 Ludara Subcounty 2018/19 +432 Midigo Subcounty 2018/19 +433 Kochi Subcounty 2018/19 +434 Drajini Subcounty 2018/19 +435 Kei Subcounty 2018/19 +436 Kululu Subcounty 2018/19 +437 Lodonga Subcounty 2018/19 +438 Moyo Subcounty 2018/19 +439 Itula Subcounty 2018/19 +440 Aliba Subcounty 2018/19 +441 Arinyapi Subcounty 2018/19 +442 Ofua Subcounty 2018/19 +443 Itirikwa Subcounty 2018/19 +444 Dzaipi Subcounty 2018/19 + + + + +353 + + + + + + + + + + + +No. Entity CAT Period +445 Adropi Subcounty 2018/19 +446 Pakele Subcounty 2018/19 +447 Ukusijoni Subcounty 2018/19 +448 Ciforo Subcounty 2018/19 +449 Pachara Subcounty 2018/19 +450 Tara Subcounty 2018/19 +451 Nyadri Subcounty 2018/19 +452 Oleba Subcounty 2018/19 +453 Oluvu Subcounty 2018/19 +454 Oluffe Subcounty 2018/19 +455 Yivu Subcounty 2018/19 +456 Akere Division Division 2018/19 +457 Agulu Division Division 2018/19 +458 Aroca Division Division 2018/19 +459 Atik Division Division 2018/19 +460 Pece Division Division 2018/19 +461 Bardege Division Division 2018/19 +462 Laroo Division Division 2018/19 +463 Layibi Division Division 2018/19 +464 Central Division Division 2018/19 +465 Pandwong Division Division 2018/19 +466 Pager Division Division 2018/19 +467 Central Division Division 2018/19 +468 Railways Division Division 2018/19 +469 Ojwina Division Division 2018/19 +470 Adyel Division Division 2018/19 +471 Amuru TC Town Council 2018/19 +472 Pabbo TC Town Council 2018/19 +473 Anaka TC Town Council 2018/19 +474 Purongo TC Town Council 2018/19 +475 Ayer TC Town Council 2018/19 +476 Akokoro TC Town Council 2018/19 +477 Pader TC Town Council 2018/19 +478 Agago TC Town Council 2018/19 +479 Patongo TC Town Council 2018/19 +480 Kalongo TC Town Council 2018/19 +481 Lira Palwo Town Council 2018/19 +482 Oyam TC Town Council 2018/19 +483 Elegu TC Town Council 2018/19 +484 Pajule TC Town Council 2018/19 +485 Omoro TC Town Council 2018/19 +486 Agweng TC Town Council 2018/19 +487 Padibe TC Town Council 2018/19 +488 Lamwo TC Town Council 2018/19 +489 Aduku TC Town Council 2018/19 +490 Alebtong TC Town Council 2018/19 +491 Aloi TC Town Council 2018/19 +492 Ibuje TC Town Council 2018/19 +493 Bungatira Subcounty 2018/19 +494 Unyama Subcounty 2018/19 +495 Palaro Subcounty 2018/19 +496 Koro Subcounty 2018/19 +497 Lakwana Subcounty 2018/19 +498 Lalogi Subcounty 2018/19 +499 Pabbo Subcounty 2018/19 +500 Lamogi Subcounty 2018/19 +501 Amuru Subcounty 2018/19 +502 Inomo Subcounty 2018/19 +503 Atiak Subcounty 2018/19 +504 Alero Subcounty 2018/19 +505 Lii Subcounty 2018/19 +506 Okwerodot Subcounty 2018/19 +507 Got Apwoyo Subcounty 2018/19 +508 Abongomola Subcounty 2018/19 +509 Lungulu Subcounty 2018/19 + + + + +No. Entity CAT Period +510 Mucwini Subcounty 2018/19 +511 Labongo-Akwang Subcounty 2018/19 +512 Lagoro Subcounty 2018/19 +513 Kitgum-Matidi Subcounty 2018/19 +514 Labongo-Amida Subcounty 2018/19 +515 Labongo-Layamo Subcounty 2018/19 +516 Paloga Subcounty 2018/19 +517 Lokung Subcounty 2018/19 +518 Palabel-Kal Subcounty 2018/19 +519 Chegere Subcounty 2018/19 +520 Palabek-Ogili Subcounty 2018/19 +521 Palabek-Gem Subcounty 2018/19 +522 Padibe-West Subcounty 2018/19 +523 Awere Subcounty 2018/19 +524 Ogom Subcounty 2018/19 +525 Lapul Subcounty 2018/19 +526 Anga-Gura Subcounty 2018/19 +527 Pader Subcounty 2018/19 +528 Laguti Subcounty 2018/19 +529 Puranga Subcounty 2018/19 +530 Latanya Subcounty 2018/19 +531 Chawente Subcounty 2018/19 +532 Parabongo Subcounty 2018/19 +533 Paimol Subcounty 2018/19 +534 Lamiyo Subcounty 2018/19 +535 Omia-pacwa Subcounty 2018/19 +536 Lapono Subcounty 2018/19 +537 Lira –Palwo Subcounty 2018/19 +538 Kot Omor Subcounty 2018/19 +539 Abako Subcounty 2018/19 +540 Awei Subcounty 2018/19 +541 Akura Subcounty 2018/19 +542 Lira Subcounty 2018/19 +543 Aduku Subcounty 2018/19 +544 Barr Subcounty 2018/19 +545 Agali Subcounty 2018/19 +546 Amach Subcounty 2018/19 +547 Ogur Subcounty 2018/19 +548 Agweng Subcounty 2018/19 +549 Bala Subcounty 2018/19 +550 Alito Subcounty 2018/19 +551 Aboke Subcounty 2018/19 +552 Ayer Subcounty 2018/19 +553 Akalo Subcounty 2018/19 +554 Loro Subcounty 2018/19 +555 Apac Subcounty 2018/19 +556 Abok Subcounty 2018/19 +557 Ngai Subcounty 2018/19 +558 Otwal Subcounty 2018/19 +559 Aleka Subcounty 2018/19 +560 Akokoro Subcounty 2018/19 +561 West Division-Mubende MC Division 2018/19 +562 East Division -Mubende MC Division 2018/19 +563 South Division-Mubende MC Division 2018/19 +564 Nyendo/Senyange Division Division 2018/19 +565 Katwe/Butego Division Division 2018/19 +566 Kimanya Kyabakuza Division Division 2018/19 +567 Kalungu TC Town Council 2018/19 +568 Kyamulibwa TC Town Council 2018/19 +569 Lukaya TC Town Council 2018/19 +570 Lyantonde TC Town Council 2018/19 +571 Sembabule TC Town Council 2018/19 +572 Mateete TC Town Council 2018/19 +573 Bukomansimbi TC Town Council 2018/19 +574 Maddu TC Town Council 2018/19 + + + + +354 + + + + + + + + + + + +No. Entity CAT Period +575 Kanoni TC Town Council 2018/19 +576 Kyazanga TC Town Council 2018/19 +577 Kinoni TC Town Council 2018/19 +578 Kasaali TC Town Council 2018/19 +579 Kyotera TC Town Council 2018/19 +580 Kalisizo TC Town Council 2018/19 +581 Kasensero TC Town Council 2018/19 +582 Katovu TC Town Council 2018/19 +583 Kalangala TC Town Council 2018/19 +584 Rakai TC Town Council 2018/19 +585 Mutukula TC Town Council 2018/19 +586 Kasanda TC Town Council 2018/19 +587 Lwengo TC Town Council 2018/19 +588 Kasambya TC Town Council 2018/19 +589 Kalungu S/C Subcounty 2018/19 +590 Bukulula S/C Subcounty 2018/19 +591 Mpumudde S/C Subcounty 2018/19 +592 Kaliiro S/C Subcounty 2018/19 +593 Kinuuka S/C Subcounty 2018/19 +594 Lyantonde Rural S/C Subcounty 2018/19 +595 Kasagama S/C Subcounty 2018/19 +596 Lyakajulla S/C Subcounty 2018/19 +597 Kkingo S/C Subcounty 2018/19 +598 Kisekka S/C Subcounty 2018/19 +599 Malongo S/c Subcounty 2018/19 +600 Ndagwe S/C Subcounty 2018/19 +601 Kyazanga S/C Subcounty 2018/19 +602 Lwengo S/C Subcounty 2018/19 +603 Mijwala S/C Subcounty 2018/19 +604 Lugusulu S/C Subcounty 2018/19 +605 Mateete S/C Subcounty 2018/19 +606 Lwebitakuli S/C Subcounty 2018/19 +607 Lwemiyaga S/C Subcounty 2018/19 +608 Ntuusi S/C Subcounty 2018/19 +609 Kibinge S/C Subcounty 2018/19 +610 Butenga S/C Subcounty 2018/19 +611 Mpenja SC Subcounty 2018/19 +612 Lwankoni S/C Subcounty 2018/19 +613 Nabigasa S/C Subcounty 2018/19 +614 Kabira S/C Subcounty 2018/19 +615 Kakuuto S/C Subcounty 2018/19 +616 Kalisizo Rural S/C Subcounty 2018/19 +617 Nangoma S/C Subcounty 2018/19 +618 Kirumba S/C Subcounty 2018/19 +619 Bukakata S/C Subcounty 2018/19 +620 Kabonera S/C Subcounty 2018/19 +621 Kyebe S/C Subcounty 2018/19 +622 Kasaasa S/C Subcounty 2018/19 +623 Kyesiga S/C Subcounty 2018/19 +624 Mazinga S/C Subcounty 2018/19 +625 Bubeke S/C Subcounty 2018/19 +626 Mugoye S/C Subcounty 2018/19 +627 Byakabanda S/C Subcounty 2018/19 +628 Ddwaniro S/C Subcounty 2018/19 +629 Kiziiba S/C Subcounty 2018/19 +630 Kacheera S/C Subcounty 2018/19 +631 Kagamba S/C Subcounty 2018/19 +632 Kibanda S/C Subcounty 2018/19 +633 Kifamba S/C Subcounty 2018/19 +634 Kyalulangira S/C Subcounty 2018/19 +635 Lwamaggwa S/C Subcounty 2018/19 +636 Lwanda S/C Subcounty 2018/19 +637 Makokoto SC Subcounty 2018/19 +638 Kalwana SC Subcounty 2018/19 +639 Bukuya SC Subcounty 2018/19 + + + + +No. Entity CAT Period +640 Nalutuntu SC Subcounty 2018/19 +641 Kitumbi SC Subcounty 2018/19 +642 Kassanda SC Subcounty 2018/19 +643 Bagezza S/C Subcounty 2018/19 +644 Butoloogo S/C Subcounty 2018/19 +645 Kasambya S/C Subcounty 2018/19 +646 Kitenga S/C Subcounty 2018/19 +647 Nabingoola S/C Subcounty 2018/19 +648 Ishaka Div - Bushenyi MC Division 2018/19 +649 Nyakabirizi Div. - Bushenyi MC Division 2018/19 +650 Central Div. - Bushenyi MC Division 2018/19 +651 Bufunda - Ibanda MC Division 2018/19 +652 Bishehe - Ibanda MC Division 2018/19 +653 Kagongo - Ibanda MC Division 2018/19 +654 Southern Div - Kabale MC Division 2018/19 +655 Northern Div. - Kabale MC Division 2018/19 +656 Central Div. - Kabale MC Division 2018/19 +657 Northern Div. - Kisoro MC Division 2018/19 +658 Central Div. - Kisoro MC Division 2018/19 +659 Southern Div. - Kisoro MC Division 2018/19 +660 Biharwe Div - Mbarara MC Division 2018/19 +661 Kamukuzi Div. - Mbarara MC Division 2018/19 +662 Nyamitanga Div. - Mbarara MC Division 2018/19 +663 Kakoba Div. - Mbarara MC Division 2018/19 +664 Kakiika Div - Mbarara MC Division 2018/19 +665 Nyakayojo Div - Mbarara MC Division 2018/19 +666 Eastern Div. - Rukungiri MC Division 2018/19 +667 Southern Div. - Rukungiri MC Division 2018/19 +668 Western Div. - Rukungir MC Division 2018/19 +669 Kagango Div. - Sheema MC Division 2018/19 +670 Central Div. - Sheema MC Division 2018/19 +671 Kabwohe Div. - Sheema MC Division 2018/19 +672 Kasozi Div - Sheema MC Division 2018/19 +673 Western Div. - Ntungamo MC Division 2018/19 +674 Eastern Div. - Ntungamo MC Division 2018/19 +675 Central Div. - Ntungamo MC Division 2018/19 +676 Nsiika TC Town Council 2018/19 +677 Kashenyi Kajani TC Town Council 2018/19 +678 Bitooma TC Town Council 2018/19 +679 Kyamuhunga TC Town Council 2018/19 +680 Rwentuuha TC Town Council 2018/19 +681 Kyabugimbi TC Town Council 2018/19 +682 Kizinda TC Town Council 2018/19 +683 Ishongororo TC Town Council 2018/19 +684 Rushango TC Town Council 2018/19 +685 Rwenkobwa TC Town Council 2018/19 +686 Igorora TC Town Council 2018/19 +687 Bugango TC Town Council 2018/19 +688 Isingiro TC Town Council 2018/19 +689 Kaberebere TC Town Council 2018/19 +690 Kabuyanda TC Town Council 2018/19 +691 Endiinzi TC Town Council 2018/19 +692 Kikagate TC Town Council 2018/19 +693 Katuna TC Town Council 2018/19 +694 Ryakarimira TC Town Council 2018/19 +695 Kihihi TC Town Council 2018/19 +696 Butogota TC Town Council 2018/19 +697 Kambuga TC Town Council 2018/19 +698 Kanungu TC Town Council 2018/19 +699 Kazo TC Town Council 2018/19 +700 Sanga TC Town Council 2018/19 +701 Kiruhura TC Town Council 2018/19 +702 Rubuguri TC Town Council 2018/19 +703 Chyanika TC Town Council 2018/19 + + + + +355 + + + + + + + + + + + +No. Entity CAT Period +704 Rubindi Ruhumba TC Town Council 2018/19 +705 Bwizibwera Rutooma TC Town Council 2018/19 +706 Rutookye TC Town Council 2018/19 +707 Kashenshero TC Town Council 2018/19 +708 Mitooma TC Town Council 2018/19 +709 Rwentobo - Rwahi TC Town Council 2018/19 +710 Kafunjo-Mirama TC Town Council 2018/19 +711 Rubaare TC Town Council 2018/19 +712 Kitwe TC Town Council 2018/19 +713 Rwashamire TC Town Council 2018/19 +714 Kagarama TC Town Council 2018/19 +715 Nyamunuku TC Town Council 2018/19 +716 Nyakyera TC Town Council 2018/19 +717 Rwamabondo TC Town Council 2018/19 +718 Rubanda TC Town Council 2018/19 +719 Hamurwa TC Town Council 2018/19 +720 Rubirizi TC Town Council 2018/19 +721 Katerera TC Town Council 2018/19 +722 Mparo TC Town Council 2018/19 +723 Muhanga TC Town Council 2018/19 +724 Kebisoni TC Town Council 2018/19 +725 Buyanja TC Town Council 2018/19 +726 Rwerere TC Town Council 2018/19 +727 Bikurungu TC Town Council 2018/19 +728 Buteraniro Nyeihanga TC Town Council 2018/19 +729 Mwizi Kabura TC-LR Town Council 2018/19 +730 Masheruka TC Town Council 2018/19 +731 Kitagata TC Town Council 2018/19 +732 Bugongi TC Town Council 2018/19 +733 Shuuku TC Town Council 2018/19 +734 Kakindo TC Town Council 2018/19 +735 Buterere Subcounty 2018/19 +736 Bihanga Subcounty 2018/19 +737 Karungu Subcounty 2018/19 +738 Bitsya Subcounty 2018/19 +739 Kyeizooba Subcounty 2018/19 +740 Nyabubare Subcounty 2018/19 +741 Kyabugimbi Subcounty 2018/19 +742 Ibaare Subcounty 2018/19 +743 Ruhumuro Subcounty 2018/19 +744 Nyamarebe Subcounty 2018/19 +745 Kikyenkye Subcounty 2018/19 +746 Ishongororo Subcounty 2018/19 +747 Keihangara Subcounty 2018/19 +748 Kiijongo Subcounty 2018/19 +749 Kabuyanda Subcounty 2018/19 +750 Nyakitunda Subcounty 2018/19 +751 Ruborogota Subcounty 2018/19 +752 Kakamba SC Subcounty 2018/19 +753 Endinzi Subcounty 2018/19 +754 Rugaaga Subcounty 2018/19 +755 Rubaya Subcounty 2018/19 +756 Maziba Subcounty 2018/19 +757 Kitumba Subcounty 2018/19 +758 Kaharo Subcounty 2018/19 +759 Kayonza Subcounty 2018/19 +760 Rugyeyo Subcounty 2018/19 +761 Rutenga Subcounty 2018/19 +762 Kanyantorogo Subcounty 2018/19 +763 Kirima Subcounty 2018/19 +764 Katete Subcounty 2018/19 +765 Kazo Subcounty 2018/19 +766 Buremba Subcounty 2018/19 +767 Nkungu Subcounty 2018/19 +768 Nyakashashara Subcounty 2018/19 + + + + +No. Entity CAT Period +769 Kashongi Subcounty 2018/19 +770 Kikatsi Subcounty 2018/19 +771 Nyakinama Subcounty 2018/19 +772 Nyarubuye Subcounty 2018/19 +773 Nyarusiza Subcounty 2018/19 +774 Busanza Subcounty 2018/19 +775 Chahi Subcounty 2018/19 +776 Muramba Subcounty 2018/19 +777 Bukiro Subcounty 2018/19 +778 Rubaya Subcounty 2018/19 +779 Kabira Subcounty 2018/19 +780 Kashenshero Subcounty 2018/19 +781 Kiyanga Subcounty 2018/19 +782 Katenga SC Subcounty 2018/19 +783 Mayanga SC Subcounty 2018/19 +784 Rurehe SC Subcounty 2018/19 +785 Kibatsi Subcounty 2018/19 +786 Nyakyera Subcounty 2018/19 +787 Ihunga Subcounty 2018/19 +788 Nyabihoko Subcounty 2018/19 +789 Rubaare Subcounty 2018/19 +790 Rukoni West Subcounty 2018/19 +791 Rukoni East Subcounty 2018/19 +792 Ruhaama East SC Subcounty 2018/19 +793 Nyamweeru Subcounty 2018/19 +794 Bubare Subcounty 2018/19 +795 Hamurwa Subcounty 2018/19 +796 Ikumba Subcounty 2018/19 +797 Ruhija Subcounty 2018/19 +798 Katerera Subcounty 2018/19 +799 Kichwamba Subcounty 2018/19 +800 Ryeru Subcounty 2018/19 +801 Katanda Subcounty 2018/19 +802 Kyabakara Subcounty 2018/19 +803 Bukinda Subcounty 2018/19 +804 Rwamucucu Subcounty 2018/19 +805 Kamwezi Subcounty 2018/19 +806 Buhunga Subcounty 2018/19 +807 Bwambara Subcounty 2018/19 +808 Kebisoni Subcounty 2018/19 +809 Ruhinda Subcounty 2018/19 +810 Rugando Subcounty 2018/19 +811 Ndeija Subcounty 2018/19 +812 Kyangyenyi Subcounty 2018/19 +813 Kigarama Subcounty 2018/19 +814 Southen Division Moroto Division 2018/19 +815 Northen Division Moroto Division 2018/19 +816 Southen Division Kotido Division 2018/19 +817 Central Division Kotido Division 2018/19 +818 Eastern Division Kotido Division 2018/19 +819 Western Division Kotido Division 2018/19 +820 Kaabong TC Town Council 2018/19 +821 Abim TC Town Council 2018/19 +822 Amudat TC Town Council 2018/19 +823 Nakapiripirit TC Town Council 2018/19 +824 Lorengecora TC Town Council 2018/19 +825 Nabilatuk TC Town Council 2018/19 +826 Abim Subcounty 2018/19 +827 Morulem Subcounty 2018/19 +828 Alerek Subcounty 2018/19 +829 Lotukei Subcounty 2018/19 +830 Nyakwae Subcounty 2018/19 +831 Loroo Subcounty 2018/19 +832 Kaabong Subcounty 2018/19 +833 Kalapata Subcounty 2018/19 + + + + +356 + + + + + + + + + + + +No. Entity CAT Period +834 Kathile Subcounty 2018/19 +835 Lolelia Subcounty 2018/19 +836 Sidok Subcounty 2018/19 +837 Lodiko Subcounty 2018/19 +838 Kamion Subcounty 2018/19 +839 Kawalakol Subcounty 2018/19 +840 Lobalangit Subcounty 2018/19 +841 Kacheri Subcounty 2018/19 +842 Nakapelimoru Subcounty 2018/19 +843 Kotido Subcounty 2018/19 +844 Panyangara Subcounty 2018/19 +845 Rengen Subcounty 2018/19 +846 Tapac Subcounty 2018/19 +847 Karita Subcounty 2018/19 +848 Kakomongole Subcounty 2018/19 +849 Lorengedwat Subcounty 2018/19 +850 Lokopo Subcounty 2018/19 +851 Lotome Subcounty 2018/19 +852 Lopei Subcounty 2018/19 +853 Matany Subcounty 2018/19 +854 Ngoleriet Subcounty 2018/19 +855 Loregecora Subcounty 2018/19 +856 Jinja Central Division 2018/19 +857 Mpumudde /Kimaka Division 2018/19 +858 Walukuba / Masese Division 2018/19 +859 Iganga Central Division 2018/19 +860 Iganga Northern Division 2018/19 +861 Bugiri Eastern Division 2018/19 +862 Bugiri Western Division 2018/19 +863 Lugazi Central Division 2018/19 +864 Najjembe Lugazi Division 2018/19 +865 Lugazi Kawolo Division 2018/19 +866 Njeru Central Division 2018/19 +867 Njeru Nyenga Division 2018/19 +868 Njeru Wakisi Division 2018/19 +869 Kamuli Northern Division 2018/19 +870 Kamuli Southern Division 2018/19 +871 Bugembe Town Council 2018/19 +872 Bugweri Town Council 2018/19 +873 Bulumba Town Council 2018/19 +874 Busembatia Town Council 2018/19 +875 Buwenge Town Council 2018/19 +876 Buyende Town Council 2018/19 +877 Bwondha Town Council 2018/19 +878 Kakira Town Council 2018/19 +879 Kaliro Town Council 2018/19 +880 Luuka Town Council 2018/19 +881 Magamaga Town Council 2018/19 +882 Mayuge Town Council 2018/19 +883 Namayingo Town Council 2018/19 +884 Namwiwa Town Council 2018/19 +885 Nawaikoke Town Council 2018/19 +886 Namutumba Town Council 2018/19 +887 Nkondo Subcounty 2018/19 +888 Kagulu Subcounty 2018/19 +889 Bugaya Subcounty 2018/19 +890 Bumanya Subcounty 2018/19 +891 Namugongo Subcounty 2018/19 +892 Gadumire Subcounty 2018/19 +893 Namwiwa Subcounty 2018/19 +894 Nawaikoke Subcounty 2018/19 +895 Mafubira Subcounty 2018/19 +896 Mutumba Subcounty 2018/19 +897 Sigulu Islands Subcounty 2018/19 +898 Buyinja Subcounty 2018/19 + + + + +No. Entity CAT Period +899 Bukana Subcounty 2018/19 +900 Lolwe Subcounty 2018/19 +901 Iwemba Subcounty 2018/19 +902 Budhaya Subcounty 2018/19 +903 Buluguyi Subcounty 2018/19 +904 Bulesa Subcounty 2018/19 +905 Kapyanga Subcounty 2018/19 +906 Muterere Subcounty 2018/19 +907 Nankoma Subcounty 2018/19 +908 Bulamagi Subcounty 2018/19 +909 Nabitende Subcounty 2018/19 +910 Makuutu Subcounty 2018/19 +911 Namalemba Subcounty 2018/19 +912 Namungalwe Subcounty 2018/19 +913 Busede Subcounty 2018/19 +914 Buwenge Subcounty 2018/19 +915 Buyengo Subcounty 2018/19 +916 Budomero Subcounty 2018/19 +917 Nansoloolo Subcounty 2018/19 +918 Buyinda Subcounty 2018/19 +919 Kisinda Subcounty 2018/19 +920 Bukamba Subcounty 2018/19 +921 Kasokwe Subcounty 2018/19 +922 Bugulumbya Subcounty 2018/19 +923 Bulopa Subcounty 2018/19 +924 Mbulamuti Subcounty 2018/19 +925 Kisozi Subcounty 2018/19 +926 Namasagali Subcounty 2018/19 +927 Wankole Subcounty 2018/19 +928 Balawoli Subcounty 2018/19 +929 Butansi Subcounty 2018/19 +930 Nabwigulu Subcounty 2018/19 +931 Namwendwa Subcounty 2018/19 +932 Kagumba Subcounty 2018/19 +933 Nawanyago Subcounty 2018/19 +934 Kitayunjwa Subcounty 2018/19 +935 Magogo Subcounty 2018/19 +936 Waibuga Subcounty 2018/19 +937 Ikumbya Subcounty 2018/19 +938 Nawampiti Subcounty 2018/19 +939 Baitambogwe Subcounty 2018/19 +940 Malongo Subcounty 2018/19 +941 Bukaboli Subcounty 2018/19 +942 Bukatube Subcounty 2018/19 +943 Busakira Subcounty 2018/19 +944 Jaguzi Subcounty 2018/19 +945 Ivukula Subcounty 2018/19 +946 Bulange Subcounty 2018/19 +947 Namutumba Subcounty 2018/19 +948 Nangonde Subcounty 2018/19 +949 Mazuba Subcounty 2018/19 +950 Nabweyo Subcounty 2018/19 +951 Bundibugyo Town Council 2018/19 +952 Nyahuka Town Council 2018/19 +953 Ntandi Town Council 2018/19 +954 Busunga Town Council 2018/19 +955 Butuma – Mitunda Town Council 2018/19 +956 Buganikira Town Council 2018/19 +957 Kiko Town Council 2018/19 +958 Kijura Town Council 2018/19 +959 Karago Town Council 2018/19 +960 Mugusu Town Council 2018/19 +961 Mpondwe Lubiriha Town Council 2018/19 +962 Kyenjojo Town Council 2018/19 +963 Kyarusozi Town Council 2018/19 + + + + +357 + + + + + + + + + + + +No. Entity CAT Period +964 Kyamutunzi Town Council 2018/19 +965 Katooke Town Council 2018/19 +966 Butunduzi Town Council 2018/19 +967 Kibiito Town Council 2018/19 +968 Rwimi Town Council 2018/19 +969 Rubona Town Council 2018/19 +970 Buheesi Town Council 2018/19 +971 Kyamukube Town Council 2018/19 +972 Kyegegwa Town Council 2018/19 +973 Hapuuyo Town Council 2018/19 +974 Mpara Town Council 2018/19 +975 Karugutu Town Council 2018/19 +976 Rwebisengo Town Council 2018/19 +977 Kibuuku Town Council 2018/19 +978 Kanara Town Council 2018/19 +979 Kamwenge Town Council 2018/19 +980 Kahunge Town Council 2018/19 +981 Nkoma – Katalyeba Town Council 2018/19 +982 Kabujogera Town Council 2018/19 +983 Hima Town Council 2018/19 +984 Katwe – Kabatoro Town Council 2018/19 +985 Ibanda Kyanya Town Council 2018/19 +986 Kisinga Town Council 2018/19 +987 Rugendabara – Kikongo Town Council 2018/19 +988 Kinyamaseke Town Council 2018/19 +989 Kyarumba Town Council 2018/19 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Katwe Sub-county Subcounty 2018/19 +1014 Mahango Sub-county Subcounty 2018/19 +1015 Muhokya Sub-county Subcounty 2018/19 +1016 Bwensumbu Sub County Subcounty 2018/19 +1017 Buhuhira Sub County Subcounty 2018/19 +1018 Isango Sub County Subcounty 2018/19 +1019 Nyakatonzi Sub County Subcounty 2018/19 +1020 Kahokya Sub County Subcounty 2018/19 +1021 Bugaaki Sub-county Subcounty 2018/19 +1022 Nyantungo Sub-county Subcounty 2018/19 +1023 Kigarale Sub County Subcounty 2018/19 +1024 Butunduzi Sub County Subcounty 2018/19 +1025 Katooke Sub-county Subcounty 2018/19 +1026 Kihuura Sub-county Subcounty 2018/19 +1027 Kisojo Sub County Subcounty 2018/19 +1028 Kanyegaramire Sub County Subcounty 2018/19 + + + + +No. Entity CAT Period +1029 Kyembogo Sub County Subcounty 2018/19 +1030 Kigoyera Sub County Subcounty 2018/19 +1031 Nyabirongo Sub County Subcounty 2018/19 +1032 Nyakisi Sub County Subcounty 2018/19 +1033 Busoro Sub-county Subcounty 2018/19 +1034 Hakibaale Sub-county Subcounty 2018/19 +1035 Karambi Sub-county Subcounty 2018/19 +1036 Ruteete Sub-county Subcounty 2018/19 +1037 Karangura Sub County Subcounty 2018/19 +1038 Harugongo Sub County Subcounty 2018/19 +1039 Kabende Sub County Subcounty 2018/19 +1040 Buheesi Sub-county Subcounty 2018/19 +1041 Kibiito Sub-county Subcounty 2018/19 +1042 Rwimi Sub-county Subcounty 2018/19 +1043 Kabonero Sub County Subcounty 2018/19 +1044 Kiyombya Sub County Subcounty 2018/19 +1045 Hapuyo Sub-county Subcounty 2018/19 +1046 Kasule Sub-county Subcounty 2018/19 +1047 Kyegegwa Sub-county Subcounty 2018/19 +1048 Mpara Sub-county Subcounty 2018/19 +1049 Kigambo Sub County Subcounty 2018/19 +1050 Kanara Sub-county Subcounty 2018/19 +1051 Karugutu Sub-county Subcounty 2018/19 +1052 Butungama Sub County Subcounty 2018/19 +1053 Buhanda Sub-county Subcounty 2018/19 +1054 Busiriba Sub-county Subcounty 2018/19 +1055 Bwizi Sub-county Subcounty 2018/19 +1056 Kabambiro Sub-county Subcounty 2018/19 +1057 Kamwenge Sub-county Subcounty 2018/19 +1058 Kicheche Sub-county Subcounty 2018/19 +1059 Bihanga Sub County Subcounty 2018/19 +1060 Kanara Sub County Subcounty 2018/19 +1061 Nyangahya Div - Masindi MC Division 2018/19 +1062 Karujubu Div - Masindi MC Division 2018/19 +1063 Masindi Central Div - Masindi MC Division 2018/19 +1064 Kigulya Div - Masindi MC Division 2018/19 +1065 Kahora Div - Hoima MC Division 2018/19 +1066 Mparo Div - Hoima MC Division 2018/19 +1067 Busiisi Div - Hoima MC Division 2018/19 +1068 Bujumbura Div - Hoima MC Division 2018/19 +1069 Kiryandongo TC Town Council 2018/19 +1070 Kigumba TC Town Council 2018/19 +1071 Bweyale TC Town Council 2018/19 +1072 Kagadi TC Town Council 2018/19 +1073 Mabaale TC Town Council 2018/19 +1074 Kibaale TC Town Council 2018/19 +1075 Kigorobya TC Town Council 2018/19 +1076 Kikuube TC Town Council 2018/19 +1077 Buhimba TC Town Council 2018/19 +1078 Buliisa TC Town Council 2018/19 +1079 Butemba TC Town Council 2018/19 +1080 Kyankwanzi TC Town Council 2018/19 +1081 Kiboga TC Town Council 2018/19 +1082 Lwamata TC Town Council 2018/19 +1083 Ntwetwe TC Town Council 2018/19 +1084 Muhooro TC Town Council 2018/19 +1085 Kisita Tc Town Council 2018/19 +1086 Bukomero TC Town Council 2018/19 +1087 Kakumiro TC Town Council 2018/19 +1088 Budongo SC Subcounty 2018/19 +1089 Kiryanga SC Subcounty 2018/19 +1090 Muhorro SC Subcounty 2018/19 +1091 Rugashari SC Subcounty 2018/19 +1092 Ndaiga SC Subcounty 2018/19 + + + + +358 + + + + + + + + + + + +No. Entity CAT Period +1093 Kyanaisoke SC Subcounty 2018/19 +1094 Mpeefu SC Subcounty 2018/19 +1095 Kyakabadiima SC Subcounty 2018/19 +1096 Pachwa SC Subcounty 2018/19 +1097 Ruteete SC Subcounty 2018/19 +1098 Nalweyo SC Subcounty 2018/19 +1099 Birembo SC Subcounty 2018/19 +1100 Kikwaya SC Subcounty 2018/19 +1101 Mpasana SC Subcounty 2018/19 +1102 Kitaihuka SC Subcounty 2018/19 +1103 Kijanji SC Subcounty 2018/19 +1104 Katikara SC Subcounty 2018/19 +1105 Bwikara SC Subcounty 2018/19 +1106 Bwamiramira SC Subcounty 2018/19 +1107 Mugarama SC Subcounty 2018/19 +1108 Nyamarunda SC Subcounty 2018/19 +1109 Bubango SC Subcounty 2018/19 +1110 Nyamarya SC Subcounty 2018/19 +1111 Kyebando SC Subcounty 2018/19 +1112 Kabasekende SC Subcounty 2018/19 +1113 Karama SC Subcounty 2018/19 +1114 Kasimbi SC Subcounty 2018/19 +1115 Buhanika SC Subcounty 2018/19 +1116 Kigorobya SC Subcounty 2018/19 +1117 Kitoba SC Subcounty 2018/19 +1118 Buhimba SC Subcounty 2018/19 +1119 Kabwoya SC Subcounty 2018/19 +1120 Buliisa SC Subcounty 2018/19 +1121 Biiso SC Subcounty 2018/19 +1122 Butyaba SC Subcounty 2018/19 +1123 Kihungya SC Subcounty 2018/19 +1124 Ngwedo SC Subcounty 2018/19 +1125 Kigwera SC Subcounty 2018/19 +1126 Kyankwanzi SC Subcounty 2018/19 +1127 Gayaza SC Subcounty 2018/19 +1128 Butemba SC Subcounty 2018/19 +1129 Nsambya SC Subcounty 2018/19 +1130 Ntwetwe SC Subcounty 2018/19 +1131 Wattuba SC Subcounty 2018/19 +1132 Mulagi SC Subcounty 2018/19 +1133 Bananywa SC Subcounty 2018/19 +1134 Nkandwa SC Subcounty 2018/19 +1135 Lwamata SC Subcounty 2018/19 +1136 Kibiga SC Subcounty 2018/19 +1137 Kapeke SC Subcounty 2018/19 +1138 Bukomero SC Subcounty 2018/19 +1139 Muwanga SC Subcounty 2018/19 +1140 Ddwaniro SC Subcounty 2018/19 +1141 Banda SC Subcounty 2018/19 +1142 Byerima SC Subcounty 2018/19 +1143 Mirya SC Subcounty 2018/19 +1144 Kimengo SC Subcounty 2018/19 +1145 Pakanyi SC Subcounty 2018/19 +1146 Kiryandongo SC Subcounty 2018/19 +1147 Kigumba SC Subcounty 2018/19 +1148 Buteba SC Subcounty 2018/19 +1149 Soroti Sch of Comp.Nursing Sch/Tert. Inst. 2019 +1150 UCC Soroti Sch/Tert. Inst. 2019 +1151 Madera Technical Institute Sch/Tert. Inst. 2019 +1152 Kaberamaido TechnicalInstitute Sch/Tert. Inst. 2019 +1153 Soroti Core PTC Sch/Tert. Inst. 2019 +1154 Teso College Aloet Sch/Tert. Inst. 2019 +1155 Serere S.S. Sch/Tert. Inst. 2019 +1156 Mukura Mem. S.S.S. Sch/Tert. Inst. 2019 + + + + +No. Entity CAT Period +1157 Ngora H.S. Sch/Tert. Inst. 2019 +1158 Bukedea S.S. Sch/Tert. Inst. 2019 +1159 Amuria S.S. Sch/Tert. Inst. 2019 +1160 Gweri S.S. Sch/Tert. Inst. 2019 +1161 Otuboi Comprehensive S.S. Sch/Tert. Inst. 2019 +1162 Kyere S.S. Sch/Tert. Inst. 2019 +1163 St.Mary s Girls S.S. Madera Sch/Tert. Inst. 2019 +1164 Soroti SSS Sch/Tert. Inst. 2019 +1165 Bukedea Tech Sch/Tert. Inst. 2019 +1166 Katakwi High School Sch/Tert. Inst. 2019 +1167 Kumi Tech Sch/Tert. Inst. 2019 +1168 St. Aloysiuos PTC Sch/Tert. Inst. 2019 +1169 Dokolo Tech. Sch/Tert. Inst. 2019 +1170 Ngora Girls sss Sch/Tert. Inst. 2019 +1171 Nyero Rock High School Sch/Tert. Inst. 2019 +1172 Ogolai Tech Sch/Tert. Inst. 2019 +1173 Oilio Community Sch/Tert. Inst. 2019 +1174 Orungo High sch Sch/Tert. Inst. 2019 +1175 St. Marys PTC Bukedea Sch/Tert. Inst. 2019 +1176 Usuk Sch/Tert. Inst. 2019 +1177 Wera Tech Sch/Tert. Inst. 2019 +1178 Katakwi Tech Sch/Tert. Inst. 2019 +1179 Adwari ss Sch/Tert. Inst. 2019 +1180 Kangai SS Sch/Tert. Inst. 2019 +1181 St. Thereza Okunguro Sch/Tert. Inst. 2019 +1182 Nadunget Seed SS Sch/Tert. Inst. 2019 +1183 Moroto High Sch/Tert. Inst. 2019 +1184 Moroto Technical institute Sch/Tert. Inst. 2019 +1185 Kaabong Technical institute Sch/Tert. Inst. 2019 +1186 Kaabong SS Sch/Tert. Inst. 2019 +1187 Jubilee 2000 SS Sch/Tert. Inst. 2019 +1188 St Andrew Secondary school Sch/Tert. Inst. 2019 +1189 Kangole Secondary Sch/Tert. Inst. 2019 +1190 Namulu Secondary school Sch/Tert. Inst. 2019 +1191 Nakapiripirit Secondary school Sch/Tert. Inst. 2019 +1192 St Kizito Lorengdwat SS Sch/Tert. Inst. 2019 +1193 Nakapiripirit TechnicalInstitute Sch/Tert. Inst. 2019 +1194 Kotido PTC Sch/Tert. Inst. 2019 +1195 Kotido Tech Sch/Tert. Inst. 2019 +1196 Abim Technical Institute Sch/Tert. Inst. 2019 +1197 Public Health Nurses' College, Kyambogo Sch/Tert. Inst. 2019 +1198 Mt. St Marys Namagunga Sch/Tert. Inst. 2019 +1199 St Marys College Kisubi Sch/Tert. Inst. 2019 +1200 Gayaza High School Sch/Tert. Inst. 2019 +1201 Kibuli SSS Sch/Tert. Inst. 2019 +1202 Kawempe Moslem SS Sch/Tert. Inst. 2019 +1203 Mulago Sch Nurses &Midwifery Sch/Tert. Inst. 2019 +1204 Butabika Sch of Psychiatric Nursing Sch/Tert. Inst. 2019 +1205 Butabika Psychiatric Clinical Officers' Sch Sch/Tert. Inst. 2019 +1206 Mulago Health Tutors' College Sch/Tert. Inst. 2019 +1207 Kyambogo College Sch/Tert. Inst. 2019 +1208 Kampala High School Sch/Tert. Inst. 2019 +1209 Makerere College School Sch/Tert. Inst. 2019 +1210 Old Kampala SSS Sch/Tert. Inst. 2019 +1211 Lubiri SSS Sch/Tert. Inst. 2019 +1212 Luzira SSS Sch/Tert. Inst. 2019 +1213 Uganda Allied Health School of Mgt Sc Mulago Sch/Tert. Inst. 2019 +1214 Kololo SSS Sch/Tert. Inst. 2019 +1215 City High School Sch/Tert. Inst. 2019 +1216 Sam Iga Memorial College Sch/Tert. Inst. 2019 + + + + +359 + + + + + + + + + + + +No. Entity CAT Period +1217 Nabisunsa Girls SSS Sch/Tert. Inst. 2019 +1218 Trinity College Nabbingo Sch/Tert. Inst. 2019 +1219 Kings College Buddo Sch/Tert. Inst. 2019 +1220 Kololo High Sch/Tert. Inst. 2019 +1221 Shimon PTC Sch/Tert. Inst. 2019 +1222 Gombe SS Sch/Tert. Inst. 2019 +1223 Kalinabiri Sch/Tert. Inst. 2019 +1224 Katongo Tech Sch/Tert. Inst. 2019 +1225 Kisubi Tech Sch/Tert. Inst. 2019 +1226 Lugogo Voc Sch/Tert. Inst. 2019 +1227 Mackay College Sch/Tert. Inst. 2019 +1228 Masulita Vocational Sch/Tert. Inst. 2019 +1229 Mengo sss Sch/Tert. Inst. 2019 +1230 Nakaseke PTC Sch/Tert. Inst. 2019 +1231 Nakaseke Tech Sch/Tert. Inst. 2019 +1232 Namilyango College Sch/Tert. Inst. 2019 +1233 Ndejje sss Sch/Tert. Inst. 2019 +1234 Nsamizi Training Sch/Tert. Inst. 2019 +1235 Our lady of good Consel Sch/Tert. Inst. 2019 +1236 Kibibi sss Sch/Tert. Inst. 2019 +1237 St Peters Nsambya Sch/Tert. Inst. 2019 +1238 Sancta Maria PTC Sch/Tert. Inst. 2019 +1239 EBB SSS Sch/Tert. Inst. 2019 +1240 Nakawa Vocational Sch/Tert. Inst. 2019 +1241 St.Joseph Kakindu Sch/Tert. Inst. 2019 +1242 Mityana SS Sch/Tert. Inst. 2019 +1243 Ahmed Seguya Memo Sch/Tert. Inst. 2019 +1244 St. Mathias Kalemba Sch/Tert. Inst. 2019 +1245 Bombo SS Sch/Tert. Inst. 2019 +1246 Kabasanda tech Sch/Tert. Inst. 2019 +1247 Luwero SS Sch/Tert. Inst. 2019 +1248 Kitante Hill Sec Sch/Tert. Inst. 2019 +1249 Bishops Mukono Sch/Tert. Inst. 2019 +1250 Nakawa Vocational T.I Sch/Tert. Inst. 2019 +1251 Wairaka College Sch/Tert. Inst. 2019 +1252 Kakira High Scool Sch/Tert. Inst. 2019 +1253 Kiyunga S.S. Sch/Tert. Inst. 2019 +1254 St John S.S. Wakitaka Sch/Tert. Inst. 2019 +1255 Bukoyo S.S. Sch/Tert. Inst. 2019 +1256 Wanyange Girls’ Sch/Tert. Inst. 2019 +1257 Busoga College Mwiri Sch/Tert. Inst. 2019 +1258 Kisiki College Sch/Tert. Inst. 2019 +1259 Busembatia S.S Sch/Tert. Inst. 2019 +1260 Kiira College Butiki Sch/Tert. Inst. 2019 +1261 Busoga High School Sch/Tert. Inst. 2019 +1262 Kaliro High School Sch/Tert. Inst. 2019 +1263 Pilkington College Muguluka Sch/Tert. Inst. 2019 +1264 Nkuutu Memorial Sch/Tert. Inst. 2019 +1265 Jinja College Sch/Tert. Inst. 2019 +1266 Iganga High School Sch/Tert. Inst. 2019 +1267 Bukooli College Sch/Tert. Inst. 2019 +1268 St. John S.S Buwaya Sch/Tert. Inst. 2019 +1269 Lubani S.S. Sch/Tert. Inst. 2019 +1270 Iganga S.S Sch/Tert. Inst. 2019 +1271 Jinja S.S.S Sch/Tert. Inst. 2019 +1272 Matumu S.S. Sch/Tert. Inst. 2019 +1273 Buzaaya S.S. Sch/Tert. Inst. 2019 +1274 Busedde College Sch/Tert. Inst. 2019 +1275 Buyengo S.S. Sch/Tert. Inst. 2019 +1276 St Stephen S.S. Budondo Sch/Tert. Inst. 2019 +1277 Parvatiben MuljibhaiMadhvani Gils SSS Sch/Tert. Inst. 2019 +1278 Jinja School of Medical Lab Sch/Tert. Inst. 2019 +1279 NTC Kaliro Sch/Tert. Inst. 2019 +1280 Jinja School of Nursing and Midwifery Sch/Tert. Inst. 2019 + + + + +No. Entity CAT Period +1281 Jinja Opthalamic Clinical Officers' Training School Sch/Tert. Inst. 2019 +1282 Iganga Technical School Sch/Tert. Inst. 2019 +1283 Jinja PTC Sch/Tert. Inst. 2019 +1284 Kaliro PTC Sch/Tert. Inst. 2019 +1285 Jinja Vocational Institute Sch/Tert. Inst. 2019 +1286 Kaliro Technical Institute Sch/Tert. Inst. 2019 +1287 Basoga Nsadhu Memorial Sch/Tert. Inst. 2019 +1288 Bishop Wills Iganga PTC Sch/Tert. Inst. 2019 +1289 Gulu School of Clinical Officers Sch/Tert. Inst. 2019 +1290 Unyama NTC Sch/Tert. Inst. 2019 +1291 Lira School of Nursing & Midwifery Sch/Tert. Inst. 2019 +1292 UCC, ADUKU Sch/Tert. Inst. 2019 +1293 Canon Lawrance PTC Sch/Tert. Inst. 2019 +1294 Gulu Core PTC Sch/Tert. Inst. 2019 +1295 Amugo Agro Technical Institute Sch/Tert. Inst. 2019 +1296 Abilinino Instructors College Sch/Tert. Inst. 2019 +1297 Loro Core PTC Sch/Tert. Inst. 2019 +1298 Kitgum Core PTC Sch/Tert. Inst. 2019 +1299 Christ the King Core PTC Sch/Tert. Inst. 2019 +1300 St Joseph Technical Institute Sch/Tert. Inst. 2019 +1301 Kitgum Techinical Institute Sch/Tert. Inst. 2019 +1302 Amach Complex Sch/Tert. Inst. 2019 +1303 Lira Town College Sch/Tert. Inst. 2019 +1304 Gulu S S S Sch/Tert. Inst. 2019 +1305 St. Joseph’s College Layibi Sch/Tert. Inst. 2019 +1306 Comboni College Sch/Tert. Inst. 2019 +1307 St. Katherine’s S S Sch/Tert. Inst. 2019 +1308 Atapara S S Sch/Tert. Inst. 2019 +1309 Lango College Sch/Tert. Inst. 2019 +1310 Gulu Army S S Sch/Tert. Inst. 2019 +1311 Kitgum High School Sch/Tert. Inst. 2019 +1312 Aduku SSS Sch/Tert. Inst. 2019 +1313 YY Okot Memorial College Sch/Tert. Inst. 2019 +1314 Sacred Heart S S Sch/Tert. Inst. 2019 +1315 Lira S S Sch/Tert. Inst. 2019 +1316 Aculbanya S S Sch/Tert. Inst. 2019 +1317 Sir Samuel Baker School Sch/Tert. Inst. 2019 +1318 Dr. Obote’s College Boroboro Sch/Tert. Inst. 2019 +1319 Gulu High School Sch/Tert. Inst. 2019 +1320 Akalo S S Sch/Tert. Inst. 2019 +1321 Lake Katwe Technical Institute Sch/Tert. Inst. 2019 +1322 Rwenzori HS Sch/Tert. Inst. 2019 +1323 Kilembe SSS Sch/Tert. Inst. 2019 +1324 Mpanga SS Sch/Tert. Inst. 2019 +1325 School of clinical officers Sch/Tert. Inst. 2019 +1326 Kyenjojo SS Sch/Tert. Inst. 2019 +1327 Semuliki High Sch/Tert. Inst. 2019 +1328 Bwera SSS Sch/Tert. Inst. 2019 +1329 St leos college Sch/Tert. Inst. 2019 +1330 Kamwenge SS Sch/Tert. Inst. 2019 +1331 Madox SSS Sch/Tert. Inst. 2019 +1332 Kasese SSS Sch/Tert. Inst. 2019 +1333 UTC kicwamba Sch/Tert. Inst. 2019 +1334 Nyakasura College Sch/Tert. Inst. 2019 +1335 Kibito SS Sch/Tert. Inst. 2019 +1336 Kisojo SS Sch/Tert. Inst. 2019 +1337 Canon Apollo PTC Sch/Tert. Inst. 2019 +1338 Biguli SSS Sch/Tert. Inst. 2019 +1339 Mutanywana SSS Sch/Tert. Inst. 2019 +1340 Kyebambe Girls Sch/Tert. Inst. 2019 +1341 Bulera PTC Sch/Tert. Inst. 2019 + + + + +360 + + + + + + + + + + + +No. Entity CAT Period +1342 ST ANDREA KAAHWA'S COLLEGE Sch/Tert. Inst. 2019 +1343 BWIKYA MUSLIM SS Sch/Tert. Inst. 2019 +1344 Hoima School of nursing Sch/Tert. Inst. 2019 +1345 KAGADI SS Sch/Tert. Inst. 2019 +1346 ST ADOLF TIBEYALIRWA S.S Sch/Tert. Inst. 2019 +1347 BIREMBO TECHNICALINSTITUTE Sch/Tert. Inst. 2019 +1348 Bukomero Technical institute Sch/Tert. Inst. 2019 +1349 Bukomero TECHNICALINSTITUTE Sch/Tert. Inst. 2019 +1350 BAMUSUTA SS Sch/Tert. Inst. 2019 +1351 BUHIMBA TECHNICALINSTITUTE Sch/Tert. Inst. 2019 +1352 KIRYANDONGO TECHNICAL INSTITUTE Sch/Tert. Inst. 2019 +1353 UTC Kyema Sch/Tert. Inst. 2019 +1354 MASINDI S.S.S Sch/Tert. Inst. 2019 +1355 KINYARA S.S.S Sch/Tert. Inst. 2019 +1356 Kabalega SS Sch/Tert. Inst. 2019 +1357 Kamurasi PTC Sch/Tert. Inst. 2019 +1358 MASINDI ARMY Sch/Tert. Inst. 2019 +1359 Bukomero S.S.S Sch/Tert. Inst. 2019 +1360 Bishop Stuart PTC, Kibingo Sch/Tert. Inst. 2019 +1361 Kashenshero Gilrs School Sch/Tert. Inst. 2019 +1362 Sacred Heart S.S Mushanga Sch/Tert. Inst. 2019 +1363 Nyakinoni SS Sch/Tert. Inst. 2019 +1364 Kabale NTC Sch/Tert. Inst. 2019 +1365 Ntare High School Sch/Tert. Inst. 2019 +1366 Bushenyi Core PTC Sch/Tert. Inst. 2019 +1367 Bukinda Core PTC Sch/Tert. Inst. 2019 +1368 Mbarara SS Sch/Tert. Inst. 2019 +1369 Kinyasano Girls S.S Sch/Tert. Inst. 2019 +1370 Butsibo S.S Sch/Tert. Inst. 2019 +1371 Rugando Technical Institute Sch/Tert. Inst. 2019 +1372 Kinkinzi High School Sch/Tert. Inst. 2019 +1373 Rukungiri PTC Sch/Tert. Inst. 2019 +1374 Kibubura Girls Sch/Tert. Inst. 2019 +1375 St.Gerald SS Rukungiri Sch/Tert. Inst. 2019 +1376 Rweibare S.S Sch/Tert. Inst. 2019 +1377 Nyabuarare SS Sch/Tert. Inst. 2019 +1378 Mbarara High School Sch/Tert. Inst. 2019 +1379 UCC Kabale Sch/Tert. Inst. 2019 +1380 St. Mary’s College Rushoroza Sch/Tert. Inst. 2019 +1381 St.Jerome Ndama SS Sch/Tert. Inst. 2019 +1382 Immaculate Heart S.S Sch/Tert. Inst. 2019 +1383 Arch Bishop Bakyenga SS Sch/Tert. Inst. 2019 +1384 kigezi college Bitobero Sch/Tert. Inst. 2019 +1385 St. Kagwa S.S Sch/Tert. Inst. 2019 +1386 Kabale School of Comprehensive Nursing Sch/Tert. Inst. 2019 +1387 Rukungiri Tech Institute Sch/Tert. Inst. 2019 +1388 Bishop Comboni S.S Sch/Tert. Inst. 2019 +1389 Bishop Ogez S.S Sch/Tert. Inst. 2019 +1390 Bubangizi S.S Sch/Tert. Inst. 2019 +1391 Kashaka Girls Sch/Tert. Inst. 2019 +1392 Kyamuhunga S.S Sch/Tert. Inst. 2019 +1393 Kihihi S.S Sch/Tert. Inst. 2019 +1394 Mary Hill High School Sch/Tert. Inst. 2019 +1395 Kigezi High Sch/Tert. Inst. 2019 +1396 St. Paul's S.S. Bukinda Sch/Tert. Inst. 2019 +1397 St.Micheal High school Sch/Tert. Inst. 2019 +1398 Ruhinda Secondary School Sch/Tert. Inst. 2019 +1399 Kitagata S.S Sch/Tert. Inst. 2019 +1400 Kanyaryeru SS Sch/Tert. Inst. 2019 +1401 St. Charles Lwanga S.S Sch/Tert. Inst. 2019 + + + + +No. Entity CAT Period +Kashekuro +1402 St. San Jovani Machiro Sch/Tert. Inst. 2019 +1403 Isingiro SSS Sch/Tert. Inst. 2019 +1404 Bweranyangi Girls S.S Sch/Tert. Inst. 2019 +1405 St. Johns Nyabwina Sch/Tert. Inst. 2019 +1406 Kiyoora PTC Sch/Tert. Inst. 2019 +1407 Kyeizoba Girls Sch/Tert. Inst. 2019 +1408 kabira Tech institute Sch/Tert. Inst. 2019 +1409 Ndekye SS Sch/Tert. Inst. 2019 +1410 Kashenyi SS Sch/Tert. Inst. 2019 +1411 Kizinga Technical School Sch/Tert. Inst. 2019 +1412 Lake Mburo S,S Sch/Tert. Inst. 2019 +1413 Rwampara Farm Institute Sch/Tert. Inst. 2019 +1414 Asinge S S Sch/Tert. Inst. 2019 +1415 Mulatsi sss Sch/Tert. Inst. 2019 +1416 Bunshogho SS Sch/Tert. Inst. 2019 +1417 Bugwere High Sch/Tert. Inst. 2019 +1418 Buhobe S S Sch/Tert. Inst. 2019 +1419 Bukedi College Kachonga Sch/Tert. Inst. 2019 +1420 Bumbo S.S. Sch/Tert. Inst. 2019 +1421 Liu -iki SS Sch/Tert. Inst. 2019 +1422 Busia S S Sch/Tert. Inst. 2019 +1423 Dabani Girls Sch/Tert. Inst. 2019 +1424 Gamatoi Girls Sch/Tert. Inst. 2019 +1425 Kamonkoli College Sch/Tert. Inst. 2019 +1426 Kapchorwa TechnicalInstitute Sch/Tert. Inst. 2019 +1427 Rubongi Army School Sch/Tert. Inst. 2019 +1428 Lumino High Sch/Tert. Inst. 2019 +1429 Lumino Polytechnic Sch/Tert. Inst. 2019 +1430 St. John Magale S S Sch/Tert. Inst. 2019 +1431 Manjasi High Sch/Tert. Inst. 2019 +1432 Masaba college Sch/Tert. Inst. 2019 +1433 Masaba S S Sch/Tert. Inst. 2019 +1434 Mbale High Sch/Tert. Inst. 2019 +1435 Mbale S S Sch/Tert. Inst. 2019 +1436 Nkoma SS Sch/Tert. Inst. 2019 +1437 Mukuju Core PTC, Tororo Sch/Tert. Inst. 2019 +1438 Musese School Sch/Tert. Inst. 2019 +1439 Nabumali High School Sch/Tert. Inst. 2019 +1440 Nakaloke islamic SS Sch/Tert. Inst. 2019 +1441 Nalwire Technical Institute, Busia Sch/Tert. Inst. 2019 +1442 Nyondo Core PTC, Mbale Sch/Tert. Inst. 2019 +1443 Nyondo S.S Sch/Tert. Inst. 2019 +1444 Pallisa S S Sch/Tert. Inst. 2019 +1445 Rock High Sch/Tert. Inst. 2019 +1446 School of Clinical Officers, Mbale Sch/Tert. Inst. 2019 +1447 School of Hygiene, Mbale Sch/Tert. Inst. 2019 +1448 Sebei College Tereges Sch/Tert. Inst. 2019 +1449 Sironko High School Sch/Tert. Inst. 2019 +1450 St. Peters College Sch/Tert. Inst. 2019 +1451 Tororo Girls Sch/Tert. Inst. 2019 +1452 Uganda College of Commerce, Tororo Sch/Tert. Inst. 2019 +1453 Uganda Cooperative College, Tororo Sch/Tert. Inst. 2019 +1454 Kayoro secondary school Sch/Tert. Inst. 2019 +1455 Kabwangasi PTC Butebo Sch/Tert. Inst. 2019 +1456 Buseta SS Sch/Tert. Inst. 2019 +1457 Kayoro SS Sch/Tert. Inst. 2019 +1458 Bushikho PTC Sch/Tert. Inst. 2019 +1459 Kapchorwa PTC Sch/Tert. Inst. 2019 +1460 Nakyenyi S.S.S Sch/Tert. Inst. 2019 +1461 Kabale Sanje S.S.S Sch/Tert. Inst. 2019 + + + + +361 + + + + + + + + + + + +No. Entity CAT Period +1462 Kikungwe S.S Sch/Tert. Inst. 2019 +1463 Bukulula Girls S.S.S. Sch/Tert. Inst. 2019 +1464 Nakasoga S.S Sch/Tert. Inst. 2019 +1465 St Gonzaga S.S Sch/Tert. Inst. 2019 +1466 kabulasoke CORE PTC Sch/Tert. Inst. 2019 +1467 St. Anthony S.S. Kayunga Sch/Tert. Inst. 2019 +1468 Mubende CommunityPolytechnic Sch/Tert. Inst. 2019 +1469 Kaddugala S.S Sch/Tert. Inst. 2019 +1470 St. Maurice S.S. Lwaggulwe Sch/Tert. Inst. 2019 +1471 St. Clement S.S. Nkoni Sch/Tert. Inst. 2019 +1472 St. Victor’s S.S. Kitaasa Sch/Tert. Inst. 2019 +1473 St. Peter’s Technical Institute - Mubende Sch/Tert. Inst. 2019 +1474 St. Mary’s S.S. Sanje Sch/Tert. Inst. 2019 +1475 Mbulire S.S. Sch/Tert. Inst. 2019 +1476 Mubende Army S.S. Sch/Tert. Inst. 2019 +1477 Mateete Comprehensive S.S Sch/Tert. Inst. 2019 +1478 Sseke S.S. Sch/Tert. Inst. 2019 +1479 Ndegeya Core PTC Sch/Tert. Inst. 2019 +1480 Kasenyi S.S.S. Sch/Tert. Inst. 2019 +1481 NTC Mubende Sch/Tert. Inst. 2019 +1482 Rakai PTC Sch/Tert. Inst. 2019 +1483 St. Kizito Technical Institute Sch/Tert. Inst. 2019 +1484 Kako S.S. Sch/Tert. Inst. 2019 +1485 Masaka S.S. Sch/Tert. Inst. 2019 +1486 Mubende Light S.S Sch/Tert. Inst. 2019 +1487 Masaka School of Nursing Sch/Tert. Inst. 2019 +1488 Kabuwoko S.S.S Sch/Tert. Inst. 2019 +1489 St Henry’s College Kitovu Sch/Tert. Inst. 2019 +1490 Christ the King S.S. Kalisizo Sch/Tert. Inst. 2019 +1491 Arere S.S Sch/Tert. Inst. 2019 +1492 Angal S.S Sch/Tert. Inst. 2019 +1493 Anyavu S.S Sch/Tert. Inst. 2019 +1494 Arua Core PTC Sch/Tert. Inst. 2019 +1495 Arua Public Sch/Tert. Inst. 2019 +1496 Arua Sch of Comp Nursing Sch/Tert. Inst. 2019 +1497 Arua S.S Sch/Tert. Inst. 2019 +1498 Arua Tech Insti Sch/Tert. Inst. 2019 +1499 Biyaya S.S Sch/Tert. Inst. 2019 +1500 Ediofe Girls Sch/Tert. Inst. 2019 +1501 Ereppi Teachers College Sch/Tert. Inst. 2019 +1502 Erusi S.S Sch/Tert. Inst. 2019 +1503 Logiri S.S Sch/Tert. Inst. 2019 +1504 Lodonga PTC Sch/Tert. Inst. 2019 +1505 Maracha S.S Sch/Tert. Inst. 2019 +1506 Moyo S.S Sch/Tert. Inst. 2019 +1507 Moyo Tech Institute Sch/Tert. Inst. 2019 +1508 Muni Girls Sch/Tert. Inst. 2019 +1509 Muni NTC Sch/Tert. Inst. 2019 +1510 Mvara S.S Sch/Tert. Inst. 2019 +1511 Nyangilia S.S Sch/Tert. Inst. 2019 +1512 Ochoko Modern Sch/Tert. Inst. 2019 +1513 Ombachi S.S Sch/Tert. Inst. 2019 +1514 Oriajin S.S Sch/Tert. Inst. 2019 +1515 Packwach S.S Sch/Tert. Inst. 2019 +1516 St. Aloysious Nyapea Sch/Tert. Inst. 2019 +1517 St. Charles Lwanga Sch/Tert. Inst. 2019 +1518 UCC Pakwach Sch/Tert. Inst. 2019 +1519 Vurra Sch/Tert. Inst. 2019 +1520 Warr Girls Sch/Tert. 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