Professional Documents
Culture Documents
1.0 Introduction
Article 163 (5) of the Constitution of the Republic of Uganda mandates
Parliament to, within six months after the Auditor General has submitted an
audit report on the Public Accounts of Uganda, debate and consider the report
and take appropriate action.
Section 88(8) of the Local Governments Act, CAP 243 requires the Minister of
Local Government to lay before Parliament the reports from the District Public
Accounts Committees. However, no such Report has been laid on the floor of
the House since the Auditor Generals Report was tabled. Noting that the
Constitution is the supreme law of Uganda and pursuant to Article 163 (5) of
the same Constitution, the Committee on Local Government Accounts
proceeded to consider the Auditor Generals Report on Local Governments for
Financial Year (FY) 2014/15 covering District Local Governments and
Municipal Councils.
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January 2016. However, it could not be considered before today because
Parliament was going through an electoral process for new office bearers.
Following the constitution of the new Parliament, Committees were put in
place in July 2016 and the induction of new Members of Parliament continued
till late August 2016. The Committee could only commence work at the end of
August 2016 and it has been able to handle the 111 District Local
Governments and 22 Municipal Councils within three (3) months and now
presents its report to this House for consideration.
2.0 Methodology
The Committee considered the detailed Audit Reports of the 111 District Local
Governments and 22 Municipal Councils. The Committee then interacted with
the audit entities in their respective Audit Branches of Gulu, Arua, Soroti,
Mbale, Jinja, Masaka, Mbarara, Fort Portal and Kampala. In a few instances
some units were invited to meet the Committee outside their audit branches
for various reasons.
The Committee also conducted site visits to some of the infrastructure projects
mainly in the municipalities.
The Committee then held meetings with Central Government Ministries whose
decisions directly contributed to some of the Audit queries raised in the Report.
1. PHYSICAL INFRASTRUCTURE
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1.1 Delayed Completion of Civil Works
The Audit report highlighted delayed completion of civil works in most of the
districts. The Contracts were in some cases rolled over or extended or both.
The Committee established that in most of the instances the capacity of the
contractors is lacking. The defaulting contractors are often awarded contracts
because those in authority have vested interests in them. This can be seen in
the fact that very often the contractor is paid most of the money for the
contract long before the work is finished and in some instances after the
disproportionate payment the work is abandoned. A case in point is Mbale
Municipality where it was reported that the work on USMID roads was 87%
complete and the payment to the Contractor was at 84%. When the Committee
visited the site the works were much less than 87% completion and the
contractor was not on site. A similar case is in Moyo District where the
contractor on Laropi-Palorinya Road was over paid compared to the work done.
The contract did not end even after the period of extension. Another extension
should have been sought but it was not. However, the work continued.
The Committee notes that for most of the incomplete works the following
problems were cited:
i. Delayed procurement processes;
ii. Lack of supervision by the District Engineers and the Accounting
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Officers.
Observations
The Committee observes that in regard to incomplete projects there is
negligence by the District Administration without due consideration to the
financial loss arising there from and the loss to the intended beneficiaries in
terms of service delivery.
Recommendation
The Committee recommends that:
i. Where negligence is cited, the respective Accounting officers should be
held liable for delayed completion of works and for any additional costs
involved;
The Committee found anomalies in the operations of the road fund for
example;
i. The Ministry of Finance, Planning and Economic Development
(MFP&ED) is not consistent on the release of funds as per the accounting
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entitys approved work plans.
ii. Funds are utilized by entities that do not have functional district roads
Committees; putting in question the basis for the release of the funds to
that entity, the choice of works undertaken by the entity; and ultimately
the value for money in the execution of the unapproved works.
iii. Un-explained variation in the costs of similar works in different entities;
for example in Masaka Municipality UGX. 202 Million was used to work
on 500 meters of low cost tarmac on a sloppy terrain while in Gulu
Municipality UGX 723 Million was used on low cost tarmac on 1.37km
of road in a relatively flat terrain.
Recommendations
The Committee recommends that:
i. Any district found not to have a functional district roads Committee
should not access the Road Fund.
ii. The MFP&ED makes timely releases of road funds as per the approved
Budget allocations to the entities.
iii. Municipalities should prioritize low cost road sealing under the Road
fund.
iv. The Ministry of Works should standardize the unit cost of similar road
works on Force Account.
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Soroti, Moroto, Mbale, Jinja, Entebbe, Masaka, Mbarara, Kabale, Fort-portal,
Hoima and Tororo. It is expected to run for 5 years (FYR: 2013/2014 to
2017/2018). The main objective is to improve urban service delivery.
The funds were divided into two (2) separate categories of activities, namely,
Capacity Building and Infrastructure Development. The Auditor General
queried delays in the projects. The Committee learnt that the Municipalities
were clustered under one contractor for a cluster of Municipalities as follows:
Arua, Gulu and Lira;
Mbale, Tororo, Soroti, Hoima and Fort Portal;
Entebbe, Jinja and Masaka;
Mbarara and Kabale;
Moroto.
Infrastructure Works
The current status of the infrastructure works is as follows:
Arua, Gulu and Lira the works under batch 1A has been completed
and commissioned.
Mbale, Tororo, Soroti, Hoima and Fort Portal; work is far from
completion.All of them have invoked the liquidated damages clause of
the Contract where the contractor is charged a portion of the contract
sum daily for 100 days after which the contract may be terminated. This
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was after each of the municipalities had extended the works three or four
times.
Also note worthy in this cluster is the fact that all USMID roads under
this project are made of Asphalt Concrete except for Soroti Municipality
that is a Surface Dressing.
Entebbe, Jinja and Masaka; the works are satisfactorily complete.
Mbarara and Kabale; this cluster failed to take off after two unsuccessful
attempts to procure a contractor. They have since got separate
contractors who are now on site. The works in these two municipalities
were delayed by two (2) years. The contractors are now on course
expected to finish the works in March and April 2017 respectively. The
Committee notes that after the first procurement process, Kabale
Municipality wrote to the Project Support Team (PST) to allow them
handle the procurement, a plea that fell on the deaf ears of PST.
Moroto Municipality was clustered alone and they are working on a bus
terminal. The works are ongoing.
Observations
The Committee notes with serious concern that:
i. The entire delay in the implementation of works under the project was
occasioned by clustering the works.
ii. All municipalities focused on roads while Moroto Municipality was given
a bus park terminal in the first and second phase of the project.
iii. Civil works consultant for Moroto Municipal council was procured in
April 2014 and contract signed in July 2014, but the consultant was
paid UGX 120Million covering the months of April May and June for no
work done.
iv. Soroti Municipalitys road design was changed from Asphalt Concrete to
mere surface dressing without a reduction in cost with an excuse that
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Soroti Municipality do not have a heavy traffic and yet its on a highway
to South Sudan.
v. The project was centrally handled purportedly because Local
Governments lacked capacity to handle the procurement yet in reality
they were abusing the project.
vi. The Capacity Building grant was abused. A case in point is:
a. Where Town Clerks were flown to Dubai and Arusha to attend the
Smart Cities Conference and Arusha for benchmarking; instead of
taking the Engineers, physical planners or Environmentalist who
would directly benefit the project.
b. Some trainings were identified at the Center for staff in the local
Governments. The local Governments could have had other
training needs in the core areas of the project.
Recommendations
The committee recommends that:
i. In future capacity building funds should be left to the municipalities to
handle.
ii. The project support team should withdraw from the Management of
procurement and should not be a permanent team in the Ministry.
iii. The PST should be held responsible for the mess in the implementation
of the project and they should be further investigated by the relevant
organs of Government with a view to prosecution.
iv. The Auditor Generals recommendations on the USMID project should be
upheld.
In the working of the Committee and upon inspection of roads the Committee
was informed by the Municipal Engineers that following complaints from local
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governments in 2013, H.E. the President of the Republic of Uganda directed
the Ministry of Works to support the local governments by opening up new
roads and handing them over to the districts for maintenance.
Since 2013 the Ministry of Works created a unit called the District
Rehabilitation Road unit (DRRU) with branches in four regions of Uganda as
follows:
Gulu to serve Northern Uganda, West Nile and Karamoja;
Luweero to serve Central Uganda;
Mbale to serve Eastern Uganda; and
Mbarara to serve Western Uganda.
The unit receives UGX. 4 billion annually and the districts presented their
needs to the Ministry of Works. Since2013/14 FY 82.9 kms of roads have been
opened and handed over to the districts. However no roads have been opened
in the Gulu Region.
The Ministry of Works has also since opened up regional workshops to repair
equipment for road construction with branches in Gulu, Jinja and Mbarara.
The Local Governments informed the Committee that the equipment for road
construction that was given to them is of poor quality, weak and unable to do
heavy duty work and therefore there are frequent breakdowns. Unfortunately
the Ministry of Works asserts that Mechanical Workshops are poorly equipped
and poorly financed. That renders the units with the exception of Jinja
ineffective.
Observations
i.The Committee in its interaction with officials from the Ministry of Works and
Transport at Parliament discovered that the heads of the units did not grow
through the Public Service ranks in the Ministry of Works and Transport and
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they looked very junior. They work directly with the Permanent Secretary of the
Ministry of Works and Transport to whom they are directly responsible.
ii.The Committee noted that the UGX. 4 billion that has been released
annually since 2013 has been abused. For not having handed over any roads
in the Northern Region the Engineer responsible for the region and the
Permanent Secretary are to blame for the mess and must account for the
funds.
Recommendations
iii.The Head of the DRRU in Gulu together with the former Permanent
Secretary should be investigated for abuse of public funds with a view to
prosecution.
2. EDUCATION
2.1 School Infrastructure
The Ministry of Education set guidelines on the kind of infrastructure that
schools must have. The ideal infrastructure indicators required of every
Government Aided Primary School is as follows:
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Desk Pupil Ratio 1:3
Permanent Teacher Accommodation 1:1
Latrine Stance pupil ration 1:40
The Audit report revealed insufficient and poor quality infrastructure and
equipment in a number of UPE schools. The Committee went ahead to ask
some Accounting Officers to submit the Education status in their units and the
committee findings were that they did not comply with the set standards.
The Local Governments do not have the capacity to fulfill the obligation
imposed on them by the Ministry of Education Science Technology and Sports
(MOESTS).
Observation
The Committee observed that the MOESTS that set the standards does not
adequately facilitate the schools to meet those standards.
Recommendation
The Committee recommends that the MOESTS should provide sufficient funds
to the District Local Governments to improve infrastructure and equipment in
all Government Aided schools to meet the set standards.
However the Committee found that in a number of districts there are Head
Teachers Associations that resolved to withdraw 5% percentage of the UPE
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funds from the respective school accounts and remit it to an account
maintained by the Association to support co-curricular activities at levels
beyond the respective schools.
Observations
The Committee observed that:
i. The practice is irregular as UPE funds are meant for particular activities
within the respective schools.
ii. Government funds cannot be diverted to a private account where the
Auditor General has no access. Expenditure of all Government funds
must be audited by the Auditor General in accordance with Article 163 of
the Constitution.
iii. The responsibility to support co-curricular activities outside the
individual schools lies with the respective districts.
Recommendations
The Committee recommends that:
i. The practice must stop immediately;
ii. The Districts should budget for co-curricular activities.
iii. The culprits in diversion of UPE funds should be investigated and funds
be recovered from them.
3. PAYROLL MANAGEMENT
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All these anomalies were blamed on problems associated with the IPPS and the
IFMIS systems. The Committee received reports that Government migrated to
the said systems before adequately training the staff of the Local Governments
to operate them. As a result errors arising from lack of capacity were realized.
Observations
The Committee observed that it is wrong for Government to operationalize the
use of new systems before adequately training the users. It demotivates the
affected staff and their colleagues who were supposed to benefit from their
services. It also causes financial loss to the affected people.
Recommendations
The Committee recommends that:
i. Government should desist from introducing new Information Technology
systems without adequately preparing the users.
ii. In the case of IPPS the Ministry of Public Service should conduct
continuous capacity building for the users.
iii. In instances where the anomaly has been rectified the query should be
dropped.
iv. In instances where the anomaly has not been rectified the Accounting
Officer must start the rectification process immediately and in instances
where the rectification process is ongoing, it must be done to its
conclusion before the next Audit in Financial Year 2016/17.
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owed Government funds arising either from over payments or misuse of
Government funds. The Accounting Officers are obliged to recover the funds
from the respective Officers salaries. However, some of the Officers have
existing personal loans that have made the deductions impossible.
The Committee was informed that under the IPPS system deductions that are
more than 50% of ones salary is impossible to effect because the system
automatically drops the individual from the payroll.
Observation
The Committee observes that personal loans are a personal decision of the
individual and should not stop the recovery of Government funds from that
individual. This is more so where an individual misuses Government funds and
is supposed to make good the misused sum.
Recommendation
The Committee recommends that the Ministry of Public Service must devise a
mechanism of having such funds refunded irrespective of the personal loans
taken by the individual.
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following the decentralization.
Observations
The Committee observes that:
i. Failure of an Accounting Officer to submit all the arrears in their local
government or to adequately budget for the wage bill is an indication of
incompetence.
ii. Non-payment of salary arrears to staff demotivates them and in turn
affects service delivery.
Recommendations
The Committee recommends that:
i. The Accounting Officers of the affected Local Governments should
immediately submit the list of arrears to the Ministry of Public Service
for clearance; and that the MFP&ED after verification clear all the all
salary arrears by the end of the Financial Year 2016/17.
ii. The Ministry of Local Government (MoLG) should build the capacity of
the Local Governments in the area of budgeting.
iii. Any Accounting Officer who does not pay salaries on time without a
sound reason should be reprimanded.
4. STAFFING LEVEL
The Audit report indicated understaffing in most districts and Municipal
Councils.
In addition to staffing gaps there a number of officers who have been assigned
responsibilities to care take particular dockets or functions by Accounting
Officers.
The Committee noted that in some instances officers were found to have acted
for more than six months contrary to Public service Standing Orders.
This situation has been attributed to lack of a sufficient wage bill and the ban
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on recruitment by the Ministry of Public Service. The Committee was informed
that the districts have made efforts to fill the vacant posts by writing to the
Ministry of Public Service requesting for authority to recruit. However, the
Ministry of Public Service only gives them authority to recruit depending on the
availability of a wage bill.
For the positions where authority has been given, the Districts have gone
ahead to advertise and have the positions filled. However, there are positions
like that of District Engineer, which has failed to attract candidates. Some
districts have advertised more than three times consecutively with no success.
There are districts that do not easily attract staff because they are hard to
reach. Such districts may receive positive responses to adverts but there is a
high staff turns over. These included Bukwo, Kween, Namayingo, Buhweju,
Kalangala and Buvuma districts among others.
The Committee noted a weak and incompetent inspectorate department of
MoLG in supervision of accounting officers. The Committee also discovered
that a number of Accounting Officers were not up to the task; they are either
ignorant of their roles or incompetent.
Observations
The Committee observes that:
i. Low staffing levels against the approved staff structure is an indication of
poor service delivery. The individuals supposed to occupy positions in
the staff structure are each meant to provide a given service to the
population either directly or indirectly. Having fewer staff greatly impacts
on the quality of service.
ii. Keeping staff in acting capacity for more than six months demotivates
them and also compromises on service delivery because a staff in acting
position does not have confidence to make certain decisions.
iii. The qualification requirements for some jobs are too stringent to attract
qualified personnel. This is so in the case of a District Engineer where
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the requirement is a registered Engineer. The Committee observes that
the reality is that registered Engineers are on high demand in more
lucrative areas. Even in instances where they get registered while
working with a Local Government, they leave shortly after registration.
The Committee notes that the requirements for the position of District
Engineer should be revised to a level that qualifies to do the job but not
necessarily a registered Engineer. However, if the Ministry keeps the
position at the level of registered civil engineer then the emoluments
should be made competitive.
Recommendation
i. The Committee calls upon Government through the Ministry of Public
Service to allocate sufficient resources for Staff Wage Bill and lift the ban
on recruitment of staff in the District Local Governments.
ii. The Committee recommends and urges Government to have staff
recruited as per the staffing structures of the districts.
iii. There should be a review of the qualifications for the position of District
Engineers; and a commensurate remuneration be provided.
5. HEALTH
Section 2.1.2 of the Local Government Management and Service Delivery
(LGMSD) program manual states that LGs will deliver services in conformity to
the standards as dictated by the laws and regulations of Uganda and under
section 2.1.1.D health service delivery packages or minimum standards for
proper functioning of health centers were set as follows:
a) District Standards for Population service level.
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4. District Store for drugs At least one
The Ministry of Health set guidelines for the level of services to be delivered at
the different levels of Health Units in the Local Governments and this then
dictates on the infrastructure and personnel to be employed at the different
levels of Health Units.
The Audit report raised a number of queries in the Lower Local Governments
concerning the state of the Health Centers against those guidelines. In all the
instances the Health Centers in question fell far below the required standards.
Observations
The Committee observed a number of gaps in the Health service delivery
notably;
i. Low staffing levels especially in the lower Health centers for critical cadres
of midwives and nurses,
ii. Gross under funding of the health facilities for both operational funds and
recurrent budgets.
iii. Poor reconciliation on the type and amount of drugs sent by National
Medical Stores (NMS) and the Procurement Plans of the Health Centers
under push system operated by the (NMS). Under this system Health
Centers (HC) do not ask for particular medicines but receive some
unsolicited supplies from NMS.
iv. Drugs supplied with a short shelf life.
v. poor storage of drugs in many Health Centers;
vi. Expired drugs not being collected by NMS in time or disposed off in wrong
and dangerous places like Alyat Swamp where expired drugs from Aboke
Health Center IV were reported to have been dumped.
vii. Non-functionality of Constituency Health assemblies which are supposed to
play the oversight role in the health sub districts.
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viii. Non-functionality of ambulance facilities countrywide and where they were
functional, the HC can barely afford to maintain them.
ix. Lack of key personnel to run modern equipment like Radiographers.
x. Nonfunctional equipment including, X ray machines, out modeled dental
chairs as was observed in Kamuli Hospital;
xi. Non-functional maternity wards, theater operation tables and even those
that were found were not suitable for use by persons with disabilities as
was seen in Kiboga and Kawoolo Hospitals.
xii. Patients are congested in wards with some of them lying on the floors and
on the verandahs as was seen in Kitgum Hospital.
Recommendations
The Committee recommends that:
i. The Ministry of Health should ensure that Health Centers are adequately
facilitated in terms of budgetary resources and MFP&ED should remit
sufficient funds to the districts for maintenance of ambulances.
ii. The National Medical Stores should abolish the practice of push system and
should also collect expired drugs in time.
iii. Government should facilitate the attainment and implementation of the
standards it sets for the health sector in the country.
iv. Government should prioritize a complete renovation and rehabilitation of all
general hospitals in the country which are all dilapidated.
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The Committee was informed that some local Governments are in the process
of acquiring land titles but due to resource constraints, they can only acquire
them in a phased manner. Most of them have only acquired one or two land
titles in a Financial Year.
Observations
The Committee observed that:
i. Much as the acquisition of land titles is costly, a number of districts
have not prioritized the activity. Some of them like Kiryandongo District
have not even surveyed their lands so they do not know exactly how
much land belongs to them, Kitgum and Sembabule Districts do not
have a single land title.
ii. The Committee noted the lack of support to Local Government by the
Central Government specifically MLHUD in acquisition of land titles.
This was attributed to a lack of dedicated budget line or outright lack of
resources.
iii. The Committee noted varying cultural dictates surrounding land
acquisition.
Recommendations
The committee recommends that government should engage cultural and
religious institutions with a view of coming up with an amicable solution with
regard to land owned by institutions on which government has infrastructure
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7. LACK OF INFORMATION TECHNOLOGY (IT) POLICY
According to Regulation 110(1) Computer and Information Security of the
Local Governments Financial and Accounting Regulations, 2007 the Chief
Executive is required to designate an officer to ensure that adequate
Information and Communication Technology (ICT) policies are established and
are applied to enable adequate security and protection over computers and of
data held on computers or information systems operated by the Local
Government.
The Audit report cited a general lack of ICT Policies in a number of local
governments. The Committee was informed that the districts are in the process
of developing their ICT policies and in some of them like Koboko District; the
policy has already been approved by Council.
The Committee was also informed that the staff structures in the districts at
the time of audit did not provide for the position of ICT officer. However a new
structure was approved in September 2016 and among other things it provides
for the position of ICT Officer.
Observations
The Committee noted that today there cannot be efficiency in the operations of
any Government without the use of ICT; and that ICT across all Local
Governments must be uniform.
Recommendations
The Committee recommends that Accounting Officers;
i. Liaise with the Ministry of Information and Communication Technology
in the development of Information Technology policy for their respective
entities to ensure uniformity in all Government institutions.
ii. Urgently recruit Information Technology Officers for their administrative
units.
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8. IRREGULAR TAX LEVY
The Audit report highlighted an irregular tax levy by the districts called
Development Tax on Contracts at a rate of 2% in most districts amounting to
UGX 409,672,340. Sections 13(0) of Part IV of the fifth schedule of the Local
Government Act CAP 243 (as amended) requires any other source of revenue
that Council may wish to levy to be approved by the Minister before it is
assessed, levied and collected.
Observations
The Committee observed that:
i. Some districts continue to levy the irregular tax against the law.
ii. The tax was levied illegally as it has no locus in the law and affects
service delivery; since part of the development grants went into paying
the tax contrary to the intended objective.
Recommendations
The Committee recommends an immediate stop of collection of the tax levied
on development projects and no further levy should be made on development
grants.
9. UNSPENT BALANCES
The Audit report showed instances of unspent balances at the end of the
financial year. The Committee observed that this is a cross cutting problem
that originated from late releases by the Ministry of Finance, Planning and
Economic Development towards the end of the fourth quarter of the Financial
Year of the year under review. The Committee received reports that the
computer programs that enable the use of the released funds failed shortly
after the release was made towards the end of the last quarter.
Observations
The Committee observes that:
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i. The late release of funds is actually the reason for the unspent balances
at the end of the FY resulting into non-delivery of services to the
population.
ii. The committee noted ineffective preparations by the Accounting Officers
to utilize the funds.
iii. The Committee further noted that delayed release of funds was due to
non-accountability for the previous quarter.
Recommendations
i. The Committee advised Local Governments to prepare sufficiently and
adhere to their approved procurement plans among others for the
development grants and follow their budgets as approved to utilize funds
as soon as they are released.
ii. The Committee also recommends timely release of funds by the
Accountant General.
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fees can also be categorized as such.
ii. In the budget Call circular BPD 86/107/02 dated 29th January 2016,
paragraph 37 where the PS/ST advised that all outstanding property
rates on Government properties should be written off.
iii. The creation of new Districts and Municipalities in some areas has
curved out the productive areas away from the parent districts leaving
the later almost unviable. This can be cited in the case of Masaka
District that has been left with a shell of its old self, only able to collect
150,000,000 in Local Revenue in a Financial Year. In areas where
municipalities have been created the structural linkages are problematic.
The Municipalities are under the Districts but operate in an autonomous
manner and in most cases collect much more revenue than the district.
iv. The committee established that District and Municipality officials were
reluctant to collect taxes from some enterprises that would otherwise be
required to pay large amounts of taxes. The committee for example was
informed that it was a security risk to access modern farms in the
districts of Kiruhura, Ssembabule and Lyantonde. Other modern farms
in Mbarara, Gomba, Kiryandongo, Nwoya, Kyankwazi, Kanungu,
Rukungiri, Ntungamo, Mukono, Kabarole, Kayunga among others also
do not pay local taxes. Municipalities like Ishaka-Bushenyi, Jinja, Mbale,
Fort Portal, Mbarara, Lira, Hoima, Iganga and others are under collecting
and under declaring Local Revenue.
v. The Committee was informed that all revenues collected by the district
on behalf of the Center including Pay As You Earn (PAYE) and With
Holding Tax (WHT) are all passed over to URA leaving the districts with
very few revenue sources mainly market dues to support service delivery
by the district councils.
vi. The Committee also observed that districts like Moroto, Namayingo,
Kabale, Isingiro and Buhweju that would otherwise benefit from
Royalties from minerals were not paid due to incapacity by the line
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Ministry of Energy and Mineral Development to know the type and
quantity of minerals being mined either out of deliberate negligence or
outright corruption.
vii. Local Service Tax being limited to staff on the Government payroll yet the
law provides in Section 80 (1a) (b) of the Local Governments Act,
Amendment No.2, 2008 that local service tax to be levied on all persons
in gainful employment or who are practicing any profession. In some
districts even among the Government employees, not all the eligible staff
were taxed in the year under review.
viii. Wrangles in areas that constitute large revenue sources for the districts
and municipalities like markets and parks for taxis and buses. These
can be cited in the bus park wrangles in Bushenyi-Ishaka Municipality
and the markets in Mbarara, Mbale and Fort Portal among others.
ix. Laxity in the Office of Accounting Officers to ensure that all revenue
budgeted for is collected and many do not even keep Revenue Registers
x. Underestimation of revenue because properties have not been valued
and some revenue sources have not been explored.
xi. Under declaration of collected revenue like rental charges, market dues,
Taxi Parks.
Observations
The Committee observes that:
i. Under-collection of revenue in the districts and municipalities affects
service delivery.
ii. Local Government Councilors depend on Local Revenue to be able to
conduct business. Being the decision makers in the district, failure to
conduct council business puts district or municipality in disrepute.
iii. The MFP&ED does not have the mandate to write off debts that Uganda
Land Commission and other government agencies owe the Local
Governments without compensation.
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Recommendations
The Committee recommends that:
i. All districts and municipalities should expand their revenue bases and
tax all eligible areas;
ii. District and Municipal Councils should undertake regular tax
assessment to be able to collect the rightful taxes due to the Councils
iii. Put in place a proper enforcement unit.
iv. Uncollected Local Service Tax as reported in the year under review
should be recovered.
v. The Ministry of Finance should compensate the Local Governments
amounts equivalent to what the Uganda Land Commission owes them.
vi. The Ministry of Energy and Minerals Development should share
information on all licensed mines and make sure they share Royalties as
per the law.
vii. The Auditor General should conduct a special audit on Local Revenue
collection in Local Governments focusing on management, transparency,
capacity and compliance.
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Audit reported a number of instances where such taxes were not remitted to
Uganda Revenue Authority amounting to UGX. 79,276,908.
Observations
The committee notes that:
i. Non-compliance with the tax law may attract fines and penalties.
ii. It is negligent of accounting officers not to remit tax after the deduction.
iii. Non remittance of the taxes was noted to be an act of diversion of funds
by the districts and has led to non-delivery of services in the districts as
the district accounts were frozen by URA for example Kamuli and Iganga
District Local Government among others.
iv. The practice is a result of weakness in Internal Audit units in the
districts which would have otherwise detected flaws in the systems.
Recommendations
The committee recommends that:
i. Accounting officers should remit the tax deductions promptly on a
monthly basis.
ii. The accounting officers should be held liable for non-deduction and
remittance of taxes.
iii. URA should routinely interact with the tax entities for regular updates
on their obligations.
Also variously cited in the Auditor Generals Report is the numerous cases of
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non-disposal of local Government Assets for example the many grounded
vehicles in the Health Sector.
Observations
The Committee observes that noncompliance with the PPDA regulations
compromises value for money and fairness. It also gives way to conflict of
interest.
However the Auditor General reported non- compliance with the regulations in
a number of Local Governments.
Observations
In some districts it was observed that some asset register books were
maintained but contained entries which were not tallying with the property in
the district.
In the absence of the full details about fixed assets registers, the verification of
the items was rendered difficult. This could lead to misuse or theft of the Local
Government Assets without accountability.
Recommendation
The Committee recommends that all local governments should ensure that
28
they keep an up to date Assets Register.
Observation
The Committee notes that Accounting Officers must control all Government
resources and assets in the district. The absence of vehicle logbooks is an
indication of negligence on the part of the Accounting Officer.
Recommendation
Accounting Officers should ensure that they maintain vehicle movement log
books for all motor vehicle managed by them, failure of which administrative
sanctions should be evoked on them.
29
Observation
The committee observed that there were clear sanctions in place for the
violation of the commitment control by Accounting Officers; however the PS/ST
had not evoked them.
Recommendations
The Committee recommends that all the commitments should receive first call
on the budget and in future if the same happens the Accounting Officer will be
held liable and punished for the act.
16. RECEIVABLES
Section 2.3.2.3 of Local Governments Financial and Accounting Manual 2007,
requires Council to minimize debtors by following up the collection of debts in
a timely, systematic and vigorous manner. Outstanding debtors represent an
idle asset which hinders implementation of district activities.
Observations
i. The committee observed that in a number of districts there is laxity in the
collection of debts. The enforcement units are not asserting themselves
resulting into debtors ignoring their obligations to the local governments.
ii. In some instances the debts have stayed in the local government records for
so long that they have become uncollectable either arising from death or
otherwise.
Recommendations
i. The local Governments should strengthen their enforcement units and
ensure that all legally acceptable options are explored to ensure that the
debts are collected.
ii. In instances where the debtor is dead, the debt should be written off.
30
17. LACK OF FINANCIAL STATEMENTS IN HEALTH CENTERS AND UPE
SCHOOLS.
Regulation 62(4 & 5) of the Local Governments Financial and Accounting
Regulations, 2007 states that the officer in charge of a Health Unit shall
submit monthly financial statements to the sub-county and where the health
unit is unable to prepare the financial statements, assistance shall be sought
from the sub-accountant of the sub county and copies of the financial
statements to be copied to the District Chief Executive.
The Audit report noted a contravention of both sections 62 (4 &5) and Section
64 (4) in a number of Local Governments.
Observation
The Committee noted that in both instances the sub accountants from the
sub-counties did not supervise the preparation and production of the financial
statements and cashbooks. Failure to produce them is a failure of the sub-
accountant and in turn the Accounting Officer because he/she is supposed to
receive a periodic report.
Recommendation
The Committee recommends that:
i. The districts should make deliberate efforts to train the health center in-
charges and the school Head Teachers to learn how to prepare the
financial documents required of them.
ii. The Sub-County Sub Accountants should closely supervise the in-
charges of the Health Centers and the Head Teacher in the production of
the financial documents.
31
18. UNACCOUNTED FOR FUNDS
The auditor general noted there were three types of unaccounted funds;
i. Incompletely vouched expenditure
ii. Missing vouchers
iii. Administrative advances not accounted for by the officers
Observation
The Committee observes that in instances where the accountabilities were
either not submitted or were not satisfactory, the funds should be recovered.
32
Recommendation
The Committee recommends a refund of UGX 666,946,574.
Observations
The Committee observes that:
i. There is evidence of discussing Government business in the
Associations. This can be cited in the fact that some responses on
the Auditor Generals Reports are identical.
33
iv. The practice of spending Government resources to facilitate private
Associations is irregular and must stop. The PS/ST reiterated this
position. The Permanent Secretary, Ministry of Public Service and
the Permanent Secretary, Ministry of Local Government also
agreed.
vi. If the Associations are to exist for some positive reasons, then the
Ministry of Public Service should draw up guidelines for them
Recommendations
The Committee recommends that:
i. The Associations be disbanded forthwith;
ii. All allowances paid to local government funds to attend the
Associations should be recovered;
iii. The role of the Ministry of Local Government in condoning the
activities of the Association well knowing they broke some
established rules should be investigated.
34
save for the DPP who is empowered to direct the Police to carry out
investigations on its behalf and report the findings.
Observations
Recommendations
35
laws prescribing financial control and accountability measures for
compliance by all Local Governments and imposing regular audit
requirements and procedures for Local Governments.
Section 87(1) (a) and (e) require the Auditor General to give the report of
the audited accounts of every Local Government Authority to Parliament
and to the Local Government Public Accounts Committee.
Section 88(7) and (8) provide that a local government public accounts
committee (DPAC) shall examine the reports of the Auditor General, Chief
Internal Auditor and any reports of commissions of inquiry and shall
submit its report to the council and to the Minister responsible for Local
Governments who shall lay the report before Parliament.
The Act goes ahead to empower the DPAC to recommend to Police, arrest
suspects in respect of cases involving corruption or abuse of authority of
a Public Officer.
Rule 170 (1) and (3) of the Rules of Procedure of Parliament establishes
LGAC and assigns it the function of examining the audited accounts in
36
relation to the report laid before Parliament and in relation to the DPAC
report.
Observations
iv. Given the powers given to the DPAC in the consideration of the
Auditor Generals report, and that of LGAC, there is a likelihood of
a possibility of double jeopardy against persons who may be
affected by the findings of both Committees.
37
vi. The Minister of Local Government has not for all this time laid any
report of the DPAC to Parliament as required by section 87 of the
Local Governments Act, since the enactment of that Act.
Recommendations
38
PART 2
SPECIFIC ENTITIES
1. ADJUMANI DISTRICT
The District prequalification list for supply of stationary has 3 firms. However a
review of procurements of stationary for Adjumani Hospital worth UGX.
10,609,950 revealed that stationary was directly procured from one supplier
Ms. Grand Hope Enterprises without competition.
39
Regulations.
Observations
i. The Accounting Officer failed to provide sufficient explanation.
ii. Direct procurement under unclear circumstances is attributable to
corrupt tendencies
Recommendations
i. The Committee recommends that the Auditor Generals advice requiring
the District to adhere to the Procurement laws be upheld.
ii. That the Accounting Officer is reprimanded for violating the procurement
laws.
2. ARUA DISTRICT
40
Query 5.3 Management of Information and Communications Technology
It was observed that the district did not designate an officer to be in charge of
ICT management nor had an ICT policy been developed to guide the use of IT
equipment and the software.
3. KOBOKO DISTRICT
Query 5.1Procurement
Observations
i. There was in place a Memorandum of Understanding between the
District and UNHCR which had a project Partnership procurement
provision, but the district contravened it.
41
ii. The Accounting Officer admitted the anomaly and took the responsibility
for deviating from the procurement guidelines.
Recommendation
The Committee recommends that the Accounting Officer be cautioned.
Query 5.1.2: Failure to witness bid opening and closing by the contracts
Committee
Audit reported that opening and closing of bids for procurements worth UGX.
939,110,472 were not witnessed by a member of the contracts committee and
the forms were not signed by any member of the Procurement and Disposal
Unit (PDU).
Observations
The Committee observes that there was negligence on the part of the
procurement officer.
Recommendation
The Committee recommends that the procurement officer be cautioned for
violating the procurement procedures.
Audit reported an irregular award of contracts where the lowest bidder quoting
UGX. 82,205,000 was not awarded the tender but instead it was awarded to
the runner up who quoted UGX. 83,368,000.
The Committee was informed that the problem arose from a lack of capacity of
the Procurement Officer. The Accounting Officer said the Procurement Officer
was cautioned and an investigation into the matter instituted. He highlighted
the conclusion of the investigation that confirmed that the contract was
42
awarded to the wrong contractor.
Observation
The Committee observed that the procurement regulations were flaunted
Recommendation
i. The procurement officer should always adhere to procurement
procedures.
ii. The Accounting Officer should write a warning letter to the procurement
officer who has continued to error.
Audit reported that members of the Evaluation Committee did not sign
evaluation reports for five (5) procurements totaling to UGX. 374,435,870.
Observations
The Committee observed that:
i. The Procurement officer overrode controls in the procurement process.
ii. Laxity in procurement is a potential cause of litigation against the
district.
Recommendation
The Committee recommends that the Accounting Officer withdraws the acting
instructions from the current acting Procurement officer for the laxity,
irresponsibility, incompetence.
43
For observations and recommendations refer to crosscutting issue paragraph 4
of this report.
The Auditor General reported that Koboko District did not have an IT Policy.
44
4. MARACHA DISTRICT
i. Two Officers namely Mr. Dricile and a Mr. Wadia diverted funds to other
uses and funds are being recovered from them.
ii. The matter was handled by the IGG and some funds recovered but they
were not remitted to the entity.
Observations
The Committee observed that there was no evidence that the IGG remitted
funds back to the Consolidated Fund.
Recommendations
i. the Committee recommends that the Accounting Officer continues
recovering funds from Mr. John Dricile until such a time when full
45
recovery of the funds is realized;
ii. The Committee recommends that the Accounting Officer advises Council
to re-appropriate recovered funds to finance the intended purpose.
46
It was observed that UGX.4,626,040 was paid to the contractor. However,
physical inspection of the sites revealed that the contractor abandoned the
works at walling.
5. MOYO DISTRICT
Observations
The Committee observed that:
i. The vouchers were with the Inspectorate of Government at the time of
audit but were later returned and they were given to the Auditors on 5th
December 2015.
ii. The Auditor General cleared the vouchers but they await findings from
the IGG before they can drop the query.
iii. As the Auditor General had cleared the receipts then the financial
accountability cleared the query.
47
Recommendation
The Committee recommends that query be dropped.
The Accounting Officer informed the Committee that at the time of audit
Vouchers were presented to the auditors but the accountability was not yet
ready because work was still ongoing under Force Account. The Funds are now
accounted for and evidence of accountability was submitted to the Committee.
Observations
The Committee observed that:
i. The explanation is not satisfactory because Audit was done in June
2015.
ii. It is not the responsibility of the District to pay drivers of hired
equipment, and if the drivers were Government staff then they should
not have been paid more than what the standing orders provide for.
iii. There might have been double payment.
iv. There was variation in the rate paid for Safari Day Allowance for the
same individual.
v. The Engineer failed to account for the 25 million shillings.
48
Recommendations
i. The Committee recommends that the Accounting Officer recovers the
money from the District Engineer.
ii. The matter be investigated further with a view to establishing if there
was fraud among the district engineer and the Chief Finance Officer.
Query 5.4.1 Periodic road maintenance of Laropi- Palorinya (15 Km) Road.
The Committee was informed that work was completed and the Contractor was
given a payment certificate.
Observations
The Committee was concerned that:
49
i. the Engineer made a submission for payment to the Accounting Officer
yet he knew that the bulk of the work was undone.
ii. The fact that the works were extended over two financial years means
the citizens were denied service.
iii. The Committee was suspicious with the motive the Engineer who had
initially misled the Committee when he informed the committee that the
works were done under the Road Fund, but later changed that it was
funded under the PRDP.
Recommendation
The Committee recommends that the Accounting Officer reprimands the
Engineer in accordance with the Government regulations for improper
conduct.
The Committee was informed that the work is completed and the facility is now
occupied.
50
288,323,699 was collected leading to uncollected revenue of UGX76,931,170
representing 21% of the budgeted Local Revenue.
The Accounting Officer explained that the district has agreed to make a refund
to the program while the matter continues to be pursued.
The Committee was informed that:
i. The funds were misappropriated bya oneMr. Mario Drasiku Origa.
ii. The district refunded the money to Baylor.
Observations
The Committee observes that the Accounting Officer did not do all that is in his
means to recover the funds from the concerned officials.
Recommendations
i. The Committee recommends that the Accounting Officer recovers the
UGX.7,617,700 from the District Health Officer within 2 months.
ii. Legal action should be initiated against the officers concerned.
51
to carry out official activities remained unaccounted for at the time of audit.
The Accounting Officer explained that the funds that remained unaccounted
for relate to on-going activities in the works and production departments.
The Committee was informed that the outstanding advances were overstated
by UGX.1 Million as the actual figure is Shs.10,873,000.
Observations
The Committee observed that:
i. The funds were accounted for much later after audit which was contrary
to the Regulations.
ii. Only accountability worth UGX. 2,869,000 being advance to Grace Alum
(UGX. 520,000) and Kermu Stephen (UGX. 2,349,000) and was
acknowledged by the Committee.
Recommendations
The Committee recommends that the Accounting Officer recovers the UGX
9,004,000 that remained un-accounted for, immediately.
52
7. YUMBE DISTRICT LOCAL GOVERNMENT
53
unserviceable through normal wear and tear, they shall be written off
accordingly. A board of surveys should be convened to examine and
recommend their boarding off.
8. ZOMBO DISTRICT
Query 5.1: Grants Released but not Credited to the District General Fund
Account.
A reconciliation of Cash Release/Treasury Credit Advices slip from Ministry of
Finance, Planning and Economic Development against the District General
Fund Account revealed that UGX. 200,363,048 purportedly released to the
district was not credited on the district General Fund Account.
54
The Accounting Officer explained that the matter was noted during
reconciliation of the releases from the treasury and clarification was sought
from the Permanent Secretary/Secretary to the Treasury on the two credit
advices by the district. However, no response was provided and the money had
not been received on the district account by end of year.
In the circumstance, there is a risk that the funds could have been diverted.
The Committee was informed that the funds were released but they did not get
to the account of Zombo District. The same happened the previous year as
well.
On another occasion the Account of Zombo District was credited with UGX. 89
million, which money was not meant for the District and it had to be returned.
Observation
The Committee observed that the Accounting Officer should have copied his
letter to the Auditor General, Permanent Secretary Ministry of Local
Government and the Local Government Accounts Committee of Parliament.
Recommendation
The Committee directed the Accounting Officer to follow up on the matter and
report back to the Committee by 30th November 2016.
55
UGX.103,983,283 to Uganda Revenue Authority. Consequently, Uganda
Revenue Authority penalized Council to the tune of UGX 164,770,101 out of
which UGX.44,163,857 was in respect of penalty and UGX.16,622,962
interest.
Observations
The Committee observes that penalty arose from negligence by the Accounting
Officer.
Recommendation
The Committee recommends that the Accounting Officer refunds the UGX
60,000,000 paid out due to the penalty and interest on the noncompliance
with tax laws.
Audit inspection carried out on the 4th of August 2015 revealed that seven of
the projects taken over had not been completed.
The Accounting Officer explained that the contractors moved to other sites
prior to completing their contracts and later had cash flow shortages but added
that memoranda of Understandings (MOUs) were signed between the IGG, the
District and the contractor guarantying completion of the works. However the
process has been slow and it was observed that inferior materials had been
used on majority of the sites.
The Committee was informed that some of the projects were completed in 2015
at their original costs while others resulted in additional costs which
cumulatively amount to UGX. 48,162,000.
56
Observations
The Committee observed that delayed works denies services to the people.
Recommendations
The Committee recommends that:
i. The Works supervisor was held responsible for the delayed works.
ii. The committee recommends that officer the Works Supervisor (Mr.
Charles Muswa) be interdicted and full investigation be carried out into
the work in these projects.
Observations
The Committee did not receive accountabilities for Unegiu Samuel Obeling;
Ongiera Sam Ajoga, Amandu Ofoyuru Tom, Aneniwu (weeding), Olum Lamber,
Ocunga, Opaki, Ocaki and Openjuru.
Recommendations
The Committee recommends that the Accounting Officer recovers the UGX.
8,852,000 being unaccounted for funds from the staff herein above mentioned.
57
returned to the Consolidated Fund at the time of audit contrary to the
regulations.
The district signed a contract agreement with M/s. Six Way General
Engineering on the 21st of May 2013 for opening and rehabilitation of Palwo
P/S - Agingo Chapel road at a contract sum of UGX. 185,410,540. The works
were to be completed within (2 months) effective 21st May 2013 to 22nd August
2013.
58
Query 5.9: Un-validated Staff Payroll
Audit conducted a validation exercise where Ernst and Young Certified Public
Accountants were appointed to do the work on the Auditor Generals behalf.
Audit observed that the 118 staff had missed the payroll validation exercise.
9. MASAKA DISTRICT
Query 5.1: Overpayment of Salaries
A review of the payroll revealed that the district overpaid salaries worth
UGX.6,701,833 to various officers.
59
Observations
The Committee was satisfied with the rest of the accountabilities except for the
funds advanced to the DEO amounting to UGX.682,000 for activities of the
association of DEOs. The Committee noted that the Association is not a formal
organization and therefore Government funds cannot be used for its activities.
Recommendations
The Committee recommends that the Accounting Officer recovers the
UGX.682,000 from the DEO.
The Committee was informed that all the funds were transferred. The problem
was that the acknowledgement receipts had not yet been received and were not
given to the auditors.
The Accounting Officer provided the evidence of the transfers to the
Committee.
Observations
The Committee was satisfied with the evidence of the transfers to the Sub-
Counties.
Recommendations
The Committee recommends that:
i. In future Accounting Officer should provide all the information to the
auditors to avoid such queries;
60
ii. The query be dropped.
Observation
The Committee was satisfied with the evidence given.
Recommendation
The Committee recommends that the query be dropped.
61
The Committee was presented with pictorial evidence of the works.
Observation
i. The Committee observed that the accountabilities were doubtful.
ii. The accounting officer admitted that his officers were not competent
enough to carry their tasks and so had failed him.
iii. The committee noted that the accounting officer was not in charge and
incompetent.
Recommendation
i. The Committee recommends the Accounting Officer recovers all the
62
funds from the officers;
ii. The Committee recommends that the appointing authority takes interest
in the officers conduct;
iii. Its further recommended that key officers including the district planner,
Procurement Officer, District Engineer, District Education Officer be
investigated on how they were recruited as the exhibited low levels of
competency;
iv. Further investigation be done on doubtful accountability provided by the
district to the Committee.
The Accounting Officer submitted the fuel vouchers and receipts to the
Committee.
Observation
The fuel vouchers and receipts were doubtful and they were not tallying.
Recommendation
The Committee recommends that the Accounting Officer recovers
UGX.7,946,250 from the officers in the different departments for they did not
63
account for the use thereof.
The Accounting Officer explained that most of these funds were utilised for the
training of staff in the lower Local Government.
Observation
The Committee was satisfied with the evidence.
Recommendation
The Committee recommends that the query be dropped.
64
only 21 (34%) positions were filled leaving 41 (66%) posts vacant.
However, the Accounting Officer made efforts to ensure that expenditure in the
water sector were in conformity with the sector guidelines and other relevant
laws and regulations.
Committee Observation
The documents provided did not tally and were therefore doubtful.
65
Recommendation
The committee recommends that the Accounting Officer recovers the UGX
21,044,661 over expenditure from the water officer immediately.
Observation
The Committee was satisfied with the evidence.
Recommendation
The Committee recommends that the query be dropped.
66
The Accounting Officer submitted the accountabilities to the Committee.
Observation
The figures in the receipts presented did not tally with the query
Recommendation
The Committee recommends that Accounting Officer recovers the UGX
2,405,000 that was not accounted for immediately.
67
Observations
The Committee was satisfied with the accountabilities.
Recommendations
The Committee recommends that the query be dropped.
Observation.
The Accounting Officer and the procurement officer were negligent towards
compliance with the procurement regulations.
Recommendation
The Committee recommends that the accounting officer, procurement officer
and water officer be held liable and be reprimanded for negligence and
violation of the procurement regulations.
68
The Accounting Officer informed the Committee that the commitments built up
due to insufficient funds. The district is progressively clearing them and so far
a total of UGX. 30,008,916 has been cleared.
Observation
The committee notes that government undertakings are guided by the
commitment control system in place.
Recommendation
The committee recommends that accounting officer is reprimanded for
committing the district outside the commitment control system.
The Committee was informed that City tyres was picked from PPDA register of
service providers for 2014/2015. The direct procurement was approved by the
District Procurement Committee for carpets, building materials and labour for
renovating the main administration block. A copy of the Contracts Committee
decision sheet was submitted to the Committee.
Observation
The committee notes that PPDA allows for a company prequalified to bid for
supply of goods and service subject to competition, however in this case only
one company was invited instead of at least two or three companies contrary to
the regulations.
69
Recommendation
i. The Committee recommends that Procurement Officer is cautioned for
failing to guide on the procurement regulations and processes.
ii. The Committee recommends that the query be dropped.
Observations
The Committee observed that there may be dual accountability on this item.
The Budget of the District should be crosschecked with the budget of Uganda
Bureau of Statistics (UBOS) to rule out dual accountability.
The district staff showed negligence.
Recommendation
The Committee recommends for reconciliation of the accounts of the district
and UBOS.
70
Query 5.5: Lack of a fully Constituted District Service Commission
Audit reported that during the period under review, the District Service
Commission was not fully constituted since it was composed of only 3
members out of the approved 5 with no chairperson.
The Accounting Officer informed the Committee that this was because council
had forwarded the names of the nominees to Public Service Commission had
been rejected.
Observations
The committee observed that the District Service Commission is now fully
constituted and operational.
Recommendation
The Committee recommends that the query be dropped.
This hinders the provision of quality services to the schools in the district
71
The Accounting Officer informed the Committee that the District Education
Officer and the Chief Administrative Officer had communicated to the Ministry
of Education, Science Technology and Sports about the shortfall. The
subsequent transfers of funds to the schools did not have a shortfall, however
the earlier shortfall was not recovered.
Observations
The shortfall in allocations to the schools disadvantaged the schools and must
be made good.
Recommendations
i. The Committee directed the Accounting Officer to follow up for the
refund.
ii. The Committee recommended that the query stands
iii. The Committee undertook to follow up the matter with the Ministry of
Education and Sports.
72
18. KALANGALA DISTRICT
73
get salaries amounting to UGX 20,092,881 and were instead paid UGX
42,194,772 resulting into overpayment of UGX 22,101,891.
The Committee was informed that the affected staffs were genuine and the
Accounting Officer presented evidence of submission to the Ministry of Public
Service on the erroneous deletions.
Observation
The Committee was satisfied with the evidence presented.
Recommendations
i. The Committee recommends that the query be dropped.
ii. The Committee advised the Accounting Officer to always copy letters on
matters relating to Accountability to the Auditor General.
74
8,848,463 was not accounted for. Following the Auditors advice, he wrote to
the responsible officers, they did attach accountabilities, minutes and activity
reports.
Observations
i. The Committee observed that some payments were irregular. For
example, departmental meetings are routine activities at the
workstation for which allowances should not be paid.
ii. Some accountability were doubtful for example a receipt indicating
that the fuel bought was meant to last for 2 days;
iii. For GAVI some activities were paid for in September three Months
after closure of the Financial Year.
iv. There were some payments made without authorization from the
Accounting Officer;
v. The advances were already outside the one month period when they
should be accounted for.
Recommendation
i. The committee recommends that the Accounting Officer recovers all
the funds that were paid without authority, immediately.
ii. Failure to recover the money the accounting Officer be held liable.
Observations
The Committee Observed that:
i. The vouchers except the one for Cheque No. 297 were dated within the
75
Financial Year 2014/15 and yet audit was conducted in September
2015. They were therefore available at the time of audit.
ii. The committee noted that district officials were breaking down the
procurements into small portions and buying the items from random
suppliers with intent to abuse the provision of micro purchases under
the PPDA law, thus allowing small purchases below one million to be
done without going through the procurement processes.
iii. Internal Audit did not verify the receipts and they did not even pass
through stores.
iv. The receipts for Fuel worth UGX 1,000,000 under Health were fictitious
with a Voucher date being 27th June 2014, request date being 30th June
2014, and Payment date 28th June 2014.
v. The payment under Voucher number 295 amounting to UGX. 2,314,570
was payment to Victoria, a company that was not prequalified. However
they were informed that the vehicle was procured through the Ministry of
Local Government as a guarantor and it maintains a Ministry of Local
Government number plate until the district has fully paid up. It is this
agreement that binds the district to use Victoria Motors for maintaining
the vehicle.
vi. The Committee observed that the procurement law supersedes the
agreement with the Ministry of Local Government, and so the Accounting
Officer and the Chief Finance Officer acted in breach of the law.
vii. The payment of fuel worth UGX. 1,200,000 to the Clerk to Council was
suspicious.
Recommendations
i. The committee recommends that the district should adhere to the
procurement laws and always conduct procurements as prescribed in
the law.
ii. The committee recommends that the Accounting Officer should recover
76
the UGX 1,000,000 that was advanced to Time Petrol Station under
Health Primary Health Care.
iii. The committee recommends that the Accounting Officer and the Chief
Finance Officer be reprimanded for breaching the procurement laws with
regard to dealings with Victoria Motors.
On the other hand, Mukono District owes Buikwe District UGX 431,262,500=
in respect of land and other dues collected but not remitted to Buikwe District.
Observation
MOLG should always ensure that all issues are properly ironed out at the
separation of two local governments when a new one is created from an already
existing one.
Recommendation
The Committee recommends that the two districts of Mukono and Buikwe meet
to harmonize and resolve the matter under the guidance of the Permanent
Secretary, Ministry of Local Government.
77
The Accounting Officer acknowledged that the water contained some particles
on physical observation. However, upon successful water quality analysis by
National Water and Sewerage Corporation (NWSC) the source showed
satisfactory physio-chemical and bacteriological characteristics which are
commensurate with the National Standards for portable water quality analysis
and advised the community to use the water for both domestic and livestock
accordingly.
Additionally the sector also followed up with the contractor to try and eliminate
the shinny particles. The contractor complied by blowing the well for 3 hours
and the water cleared. This was followed by a water analysis test by the water
sector.
The Accounting Officer submitted the certificate from NWSC and the water
analysis reports.
Observation
The Committee is satisfied with the explanation.
Recommendation
The Committee recommends that the query be dropped.
78
Query 5.7: Kawolo Hospital
i. Outstanding Electricity Bill
The power tariffs are rising yearly for instance in 2011, a unit was at
UGX. 405 and current unit is UGX. 764.20 and yet the PHC funding was
reduced from UGX 174million in 2010 to UGX. 152,622,000.
Observations
The committee notes that government hospitals are billed at a special rate for
power and water.
i. Water Source
The Accounting Officer acknowledged that at the time of audit the hospital did
not have running water.
However, the management of NWSC installed a line along the old line with 3
stand pipes to provide water and the hospital management added more stand
pipes in the hospital quarters.
The hospital also has solar driven borehole donated by Water for All which
supplements the current water supply though not enough.
79
Most of the water challenges were to be addressed in the coming renovation of
the hospital.
The hospital does not receive Capital Development Fund to execute such works
and on a sad note, it is not one of the objectives of the impending renovation.
Several equipment were kept outside due to limited storage space thus items
on the verandah.
It is true that the Hospital does not have enough storage space, this is because
the available stores cannot accommodate whatever is received and that is why
some equipment remained outside the verandahs.
This challenge was captured in the renovation plan where it is expected that
the store will be expanded.
Audit reported that the x-ray services at the hospital were not registered with
the Atomic Energy Council.
The Accounting Officer reported that the x-ray machine is still not registered
with the Atomic Energy Council. This is because the Hospital does not have a
qualified Radiographer which is one of the requirements for registration.
Audited reported that the hospital did not have a qualified Radiographer.
80
The Accounting Officer said that the hospital still does not have a
Radiographer but the wage has now been provided for Recruitment of a
Radiographer for the financial year 2016/17.
Observation
Recommendation
The Committee recommends that the Accounting Officer should ensure that
the use of a volunteer Radiographer at Kawolo Hospital is stopped forth with;
subject to the passing of a council resolution on the matter and proper
guidelines being set up.
Audit noted that, drug orders made by Kawolo hospital were not fully honored
by National Medical Stores.
The Accounting Officer said that indeed the hospital has short supply of drugs
and sundries and this has been attributed to:
Drug vote being reduced in FY 2014/15 from 460m to 360m today and this
means less drugs and sundries.
81
The number of patients has increased over this period.
Audit found a complete set of solar panels supplied to the hospital in 2013
uninstalled and other equipment lying on the verandah.
The Accounting Officer informed the committee that the system consists of
equipment for boiling water and was supplied by the Ministry of Health in
2012. He confirmed that the equipment has not yet been installed. He provided
the Committee with evidence of his efforts to follow-up with the Ministry of
Health but reported that no feedback has been obtained
Recommendation
i. The committee recommends an overhaul renovation of the hospital
ii. The committee recommends that the Hospital be up graded to a regional
hospital given the nature of operations the hospital handles.
iii. The committee recommends a special grant for all district hospitals
82
20. BUTAMBALA DISTRICT
Observation
The Committee observes that it is dangerous to keep people with infectious
83
diseases in the same ward as other patients even with good air circulation
because the others too might get infected.
Recommendation
The Committee recommends that:
i. Patients with infectious diseases should be referred to Hospitals
that are properly equipped to handle them;
ii. The Accounting Officer should immediately inform the Ministry of
Health of the lack of an isolation unit at the Hospital.
iii. The Accounting Officer immediately come up with a method of
isolating patients with infectious diseases.
The Accounting Officer explained that the hospital follows a very clear system
of waste segregation as recommended by the Ministry of Health. Waste Bins
with different designated colors are placed in every ward. However at the time
of audit, the operational incinerator was too small and the hospital would
directly burn its waste.
The Committee was informed that the second incinerator has been repaired
and both incinerators are now working. The hospital is engaging Green Label a
company contracted by the Ministry of Health under an USAID project to
collect medical waste. In Butambala District however, Green Label only works
in Kyabadaza Health Center.
84
of this report.
85
arrears amounting to UGX.143,507,454, gratuity for political leaders
amounting to UGX.2,358,720 and employee costs amounting to
UGX.170,820,839 by the close of the year under review.
Observation
The Committee observes that Poor road drainage leads to wearing off of roads
to run-off water thus shortening the road life span.
86
Recommendation
The Committee recommends that all Road works attention should be paid to
drainage and the first call on routine maintenance of roads under the road
fund should be drainage.
87
policy based on the regulations.
The Committee was informed that ateam has been instituted to draft a risk
management policy for consideration by the relevant organs of council.
Recommendation
The Committee advised the Accounting Officer to expedite the formulation of
the Risk Management Policy.
Observation
The Committee observed that:
i. The CAO received the management letter before December 2015 but did
not act on the matter till April 2016.
ii. It was anomalous for the CAO to spend the money without approval of
the supplementary from council;
iii. It was anomalous to forward the supplementary to the district without
88
the necessary documentation;
Recommendations:
i. The Ministry of Finance, Planning and Economic Development should
ensure that all supplementary provisions to the different Local
Governments are accompanied with the necessary documentation.
ii. The Accounting Officer takes responsibility for spending the
supplementary without authority from Council and be cautioned for
negligence of duty.
Query5.2: Payables
89
to poor service delivery.
The Accounting Officer attributed the high turnover to remoteness of the
district, characterized by poor communication network, poor working
conditions, inadequate facilities and food insecurity. The Accounting Officer
further explained that the Ministry of Public Service had been contacted to
designate the district a hard to reach area but no response had been received
by the district.
The parts of the district affected are Nakaseke North constituency in the Sub
Counties of Kinoni, Ngoma, Kinyogoga and some parts of Wakyato sub
country. The District is still following up with Ministry of Public Service to have
the mentioned areas designated as hard to reach.
Observation
The Committee observed that given the facts given by the Accounting Officer
the affected parts of the District and not the entire District should be
designated hard to reach areas.
Recommendation
The Committee recommends that:
i. The Ministry of Public Service should urgently designate Nakaseke North
Constituency a hard to reach area.
ii. The query be dropped.
90
For observations and recommendations refer to crosscutting issue paragraph 17
of this report.
Observation
The Committee observed that:
i. The District did not have a roads Committee in the Year under review.
ii. The decisions that should have been made by the Roads Committee were
unilaterally made by the District Engineer.
iii. the documents presented to the Committee indicate that UGX 1.5 Billion
was spent on Road works yet the District was given an allocation of
UGX.1billion.
Recommendation
The Committee recommends that:
i. The Accounting Officer reprimands the District Engineer for constituting
himself into a district roads committee;
91
ii. The committee recommends that the Accounting Officer and the District
Engineer are interdicted and investigated for the discrepancies in the
accountability for the funds;
iii. The committee recommends that the District does not access more funds
from the road fund before constitution of a Roads Committee.
The Accounting Officer informed the Committee that fresh water quality tests
and surveillance for Kayunga village boreholes, Nakawungu village borehole
and Kyalushebeka village borehole were made and water found satisfactory
and safe for human consumption and the contractors were given certificates of
completion.
Observation
The Committee observed that:
i. The contractors report had no address, no date or no signature.
ii. The report was on a Nakaseke District Letter Head which is a
Government letter head.
Recommendation
The Committee upholds the query.
92
of this report.
The Accounting Officer explained that efforts to recover carried over losses
totaling to UGX 19,962,950 were futile as no status report was received from
police and the officers involved in the scam cannot be traced. The process of
writing off this loss was ongoing. The Accounting Officer further explained that
the recent loss of UGX 30,152,650 was investigated internally, and it led to
interdiction of two officers and the matter was submitted to police for further
investigations.
The Officers entered into a pre-bargaining plea to pay the funds to Bank of
Uganda. It is claimed that they have paid up in two installments but the
Accounting Officer has only seen one receipt of the first installment of UGX.
9,000,000 which according to him looks doubtful.
He has not got the second receipt.
Observation
The Committee was concerned that the District could fail to have addresses of
people who have worked with them yet Government keeps files for all its
employees;
The Committee observed that:
93
i. the loses are an indication of weak internal control systems.
ii. Since the interdicted people have owned up to the embezzlement and
even refunded the money, they should not still be on interdiction but
rather dismissed. The continuation of paying them half their salary
monthly is misuse of Government funds;
Recommendation
i. The Committee recommends an expeditious conclusion of the handling
of the case
ii. The Committee recommends that the CID follows up the matter with a
view to:
Prosecute these people.
Cause the submission of the receipt of the second payment to Bank of
Uganda to the Committee.
A review of the payroll verification reports by the Senior Personnel Officer (SPO)
revealed that the district had unpaid arrears for the months of May and June
2015 totalling to UGX 203,101,945.
94
who were transferred to the Ministry of Internal Affairs and other service
providers.
He informed the Committee that for the Prisons and Police Officers the district
has collected all their details and submitted them to the Ministry of Public
Service for clearance.
In regard to the Service Providers, they have paid 17.5million, verified credit
worth 45.5 million and have 70.4 million not yet identified.
He said for the 70.4 million that is not yet cleared, he is going to put a notice
in the newspapers asking them to report to the district with evidence of
supplying services to the district. The evidence will be verified and if genuine
they will be paid. The credits that will remain unclaimed will be written off.
Observation
The Committee observed that:
i. It is not normal for a company to supply an entity and not claim for its
payment for a long period of time. The Committee is of the view that
many of the unclaimed credits are fictitious.
ii. The committee noted on review of records that the same companies were
supplying Nakaseka and Luwero districts and they were doubtful
iii. The District yet again portrays poor record keeping.
Recommendation
The Committee recommends that:
i. The claims be referred to Auditor General for scrutiny;
ii. Payments to the concerned creditors be stayed until a report from the
Auditor General
iii. The advert be run and unclaimed creditors written off.
95
Query8.4: Lack of Land Titles
Observation
The committee noted with concern that the project had difficult with guidelines
for its operationalization.
96
Recommendation
The Committee recommended that:
i. Priority should be given to more progressive groups
ii. The committee recommends that a thorough investigation be carried out
about the project implementation and a forensic audit to ensure
realization of the intended objectives of the project.
Observation
The age of Ugandans who have National Identity Cards is now clear and the
project should always use National Identity Cards to identify future
beneficiaries.
Recommendation
The Committee recommends that the query be dropped.
97
Instructional Materials to Schools
In order to improve proficiency levels at primary level education, the Ministry of
Education, Science, Technology and Sports (MoESTS) supplied instructional
materials like textbooks to various primary schools in Luweero District.
Interviews with the District Education Officer and Head Teachers from ten
schools, Nalinya, Kikube C/U, Lwantale, Busiika UMEA, Mazzi, Nakakono, St
Kalori Katagwe, Buyuki, Luwube and Wobulenzi UMEA Primary Schools
revealed the following;
98
The Committee observed that although the management of instructional
materials is vested with the Ministry of Education the Inspectors should get
more involved in the exercise.
Observation
i. It is irregular for the Ministry of Education and Sports to concentrate on
issuing books on non-examinable subjects as opposed to examinable
subjects;
ii. It is not proper for the Ministry of Education to exclude the District
Education Officer in any activity that involves his/her sector because
they are the officials answerable for anything that affects the sector in
the District.
Recommendation
i. Ministry of Education and Sports should give schools only relevant
books
ii. The Inspectorate department of the Ministry of Education should take
keen interest in censoring educational materials before their distribution
to the schools.
iii. MOESTS should always consult with the District Education Officer
before sending educational materials to the districts their activities in the
districts.
99
process revealed the following matters:
Cows allegedly supplied did not have identification tags and as such they
could not be differentiated from any other cows.
The Accounting Officer confirmed that 122 cows were procured and
distributed; noting that some of the beneficiaries did not have phone contacts
but they could be located through the Sub County Chiefs of the respective
localities.
Observation
i. The Committee observed that:
ii. the list of beneficiaries provided to the committee did not have 122
signatures;
iii. The entire list of beneficiaries seems to have been written and signed by
one individual.
Recommendation
The Committee upheld the query.
100
revealed that supplies were made to 7 Sub-counties. However, a review of the
inspection report of the Acting Senior Administrative Secretary for Kikyusa
Sub-County revealed that many of the plantations were dying. Consequently
the assessment of the beneficiaries capacity to manage the project was
rendered faulty.
The Accounting Officer, explained that the banana regime was being affected
by new diseases, and that the absence of Sub-County Agriculture extension
staff was affecting provision of the needed services to farmers. He informed the
Committee that the Problem was only in Kikyusa Sub-County out of the seven
sub-counties supplied and even there 60% of the plantations survived.
Observation
i. The Committee noted that the Focal Point Person did not do due
diligence before supplying the famers with the tissues.
ii. Banana Bacterial wilt is not a new disease so the Subject Matter
Specialist should have ensured that the tissue was clean and sensitized
the population against the problem.
Recommendation
The committee upheld the query.
101
Query 8.9: Management of Information Technology
Query 8.12: Dormant Creditors Accounts (Merge with the earlier query
on creditors).
A review of creditors schedule attached to the financial statements revealed
that a number of creditor accounts totaling to UGX143,680,680 remained
dormant during the year. Some of the creditors date as far back as 1996/1997
Financial Year.
102
This was attributed to failure by management to prioritise payment of
outstanding creditors in the budget. Dormant creditors lead to accumulation of
creditors and it exposes council to litigation costs from legal suits by overdue
creditors.
The Accounting Officer informed the Committee that the District has written to
the creditors to confirm their debts and are using the available resources to
clear the aged obligations. This process will continue as and when resources
become available.
Observation
The Committee observed that it is not fair for the District to hold up suppliers
money and reiterates the observation of the Auditor General that this
predisposes the district to litigation.
Recommendation
The Committee recommends that the district prioritizes the payment of
creditors.
103
remained unaccounted for at the year end, Consequently, the Auditor General
was not able to confirm that the funds were utilized for the intended purposes.
The Accounting Officer acknowledged that funds had not been accounted for
and he attributed it to the fact that officers had not accessed those funds at
the time of audit because the EFTs (Electronic Funds Transfers) delayed.
However, when the officers received the funds accountabilities were made,
evidence of which was presented to the Committee.
Observation
The Committee observed that the expenditure of fuel worthy 950,000 in
one sub-county is doubtful.
The Committee also found the practice of using of cash receipts for fuel
as opposed to a voucher system doubtful. This was exacerbated by the
fact that the receipts from the same petrol station varied in format. They
noted that the Government usually uses the voucher system.
Recommendation
The Committee rejected the cash receipts and recommends that the
Accounting Officer recovers the money.
Query5.3: Understaffing
The district has an approved structure of 292 staff. However, out of the
104
approved structure of 292 staff, only 193 positions were filled leaving 99 posts
vacant, representing 34% of the approved structure
The Accounting Officer confirmed that some documents were missing on the
procurement files but said they were now available and submitted them to the
Committee.
Observation
i. The Committee noted that among the documents given there were no
completion certificates and no payment details.
ii. There are no supervision and monitoring reports
105
The Committee noted that:
i. The Accounting Officer did not do his supervisory roles
ii. A Maize mill of UGX.28,000,000 was over priced
Recommendation
The Committee upheld the query.
106
audit contrary to the Regulations.
Observations
The Committee found the accountabilities doubtful and rejected them.
Recommendation
The Committee recommends that the Accounting Officer recovers the
UGX.70,357,900 .
The Committee was informed that the District did not have acknowledgement
receipts at the time of audit but had later remitted. They provided evidence.
Observation
The Committee was satisfied.
Recommendation
The Committee recommends that the query be dropped.
107
were not provided in the annual work-plan submitted and approved by Uganda
Road fund for the year under review.
The Accounting Officer explained that these roads were handled as emergency
cases and that Council approved this activity under greater Kisozi Livelihood
Road construction region. However, the Council minutes approving these
roads were not presented for audit verification.
The Committee was informed that it was ratified by Council and evidence was
given.
Observation
The Committee was satisfied with the explanation.
Recommendation
The Committee recommends that the query be dropped.
108
Query 5.6: Payments of VAT on Non- Tax Invoices
It was observed that, suppliers whose contract sums were VAT inclusive were
being paid without using tax invoices. There is a risk that the VAT paid on
supplies amounting to UGX.15, 868,208 may not have been remitted to the
Tax Authority.
Management explained that all prices quoted by service providers were VAT
inclusive. However, management did not provide evidence to confirm that the
service providers were VAT registered to justify inclusion of VAT in their
quotations.
Recommendation
The Committee upheld the audit advisory recommendation.
The Accounting Officer was advised to ensure that contract terms are duly
observed to avoid breach of contract.
Observation
The Committee noted with great concern that Gomba District has issues of
compliance with procurement laws arising from laxity or incompetence or both.
Recommendation
The Committee recommends that the advisory recommendation of the Auditor
General be upheld
109
Query 5.8: Staffing Gaps
The district has an approved structure of 419 staff. Out of the 419
approved posts, only 256 posts were filled, leaving a balance of 163 posts
vacant, representing 39% of the approved posts.
The water may not be fit for human consumption and the matter requires
urgent attention.
The Committee was informed that at the time of audit the borehole had just
been sunk but the water later cleared.
Observation
The Committee was satisfied with the explanation.
Recommendation
The Committee recommends that
District authorities should in future wait to obtain certificates of water quality
from NWSC before opening the water points for use.
110
There should be periodic tests after every six months..
111
ii. There was a report by a consultant before water sources were drilled;
and one after the water sources had developed problems;
iii. Inspection on the water sources was last done in May 2015;
Observations
Recommendations
The committee upholds the query.
112
island to another by pupils and teachers and expensive nature of island
environment to contractors. This limits achievement of the objective of
universal primary education.
The Accounting Officer attributed this situation to failure by the Central
Government
Observations
The Committee observes that the challenges facing the education sector in the
District are beyond the Accounting Officer.
Recommendations
113
of this report.
Observation
The Accounting officer did not present accountabilities for the funds.
Recommendation
The Committee recommends that the Accounting Officer recovers the
money.
114
The Accounting Officer explained that owing to the increase in the dollar
rate, the funds earlier planned became insufficient and the Accounting
Officer communicated to the MFP&ED on this matter.
The funds were released in the subsequent quota.
Evidence of the communication was presented to the Committee.
Observation
The Committee was satisfied with the evidence.
Recommendation:
The Committee recommends that the query be dropped.
115
For observations and recommendations refer to crosscutting issue paragraph 4
of this report.
The Accounting Officer explained that they were guided by the Bills of
Quantities in determining the payment.
Observation
The work had been completed in accordance with the contract.
Recommendation:
The Committee upheld the query and recommended that the Engineer
be cautioned.
116
Query 5.2: Failure to Deduct and Remit 6% Withholding Tax
The district did not remit an amount of UGX.11,365,378.
117
Query5.1.2: Salary Arrears Paid Without Supporting Records
An amount of UGX.14,600,581 was paid in salary arrears but could not
be verified.
Recommendation
The Committee upheld the query.
118
Recommendation
The Committee upheld the query.
Recommendation
The Committee upheld the query
119
For observations and recommendations refer to crosscutting issue paragraph 15
of this report.
Query 5.1 :Delays to Lay Budget Estimates before the District Council
It was observed that the budget estimates for the financial year 2014/2015
were not laid before District by the 15th day of June 2014 which was in
disregard of the law. It was also noted that UGX35,657,850 was incurred
without the vote on account approval.
A delay in the approval of budget estimates implies that there will be delays in
implementing District activities hence delays in service delivery. The
accounting officer attributed the delay to the Speakers refusal to convene a
meeting to consider the budget.
Recommendation
The Committee:
i. Upheld the Audit Recommendation that the Accounting Officer should
ensure that the budget law is strictly adhered to.
ii. Recommends that the query be dropped.
120
dismissal by the district were unlawful. The costs could have been avoided
had management taken due care in ensuring that the dismissal was lawful.
Accordingly the expenditure was nugatory.
The Accounting Officer admitted the shortcoming and attributed it to failure to
follow the logical legal provisions and safeguards.
Committee Recommendation
i. The Committee upheld audit recommendation that the Accounting
Officer should ensure due care in that appropriate decisions making to
avoid such nugatory expenditure.
ii. The committee recommends that the PS Local Government takes an
administrative sanction against the Accounting Officer for failure to
mitigate the loss incurred by Government.
121
with UBOS.
The Committee was informed that management made a follow up with UBOS
for reimbursement of the funds but the refund has not yet been received. In
November 2016 a UBOS staff visited the district to verify the claim but still
received no feedback.
Given the time taken and uncertainties of refund from UBOS, the District took
care of the affected project that is the Administration Block in the budget
under Local Revenue for FY 2016/17 as they continue to follow up with UBOS.
Observations
The Committee notes that district resources should not have been diverted to
implement UBOS activities.
Recommendation
i. The committee recommends that the Accounting Officer adheres to the
set financial regulations governing the management of public monies
ii. The Committee upholds the audit recommendation that theAccounting
Officer should in future ensure that conditional grants are not diverted
to unintended projects.
iii. The Committee recommends that the Accounting Officer continues to
follow up with UBOS.
122
conducted in such a manner as to maximize competition and achieve value for
money irrespective of the method of procurement used or the nature of the
works, services or supplies to be procured.
However, a review of the entity procurement records for the financial year
2014/15 revealed the following anomalies;
a) Wrongful Elimination of a Bidder
The Committee was informed that the bidder in question was disqualified
because he had some falsified documents.
Recommendation
The Committee upholds the Audit recommendation that the Accounting Officer
should ensure that the procurement regulations are adhered to so as to ensure
value for money.
123
are in place.
However, it was observed that user departments did not appoint contract
managers and did not prepare contract implementation plans. As a result
contractors were not closely monitored leading to unsatisfactory works in some
cases like the construction of a 3 classroom block at Kavule p/swhich had the
floor peeling off 2 times from the time of contract completion and some
contracts not being implemented.
The Committee was informed that the documents in question were there but
they were misfiled.
Recommendations
The Committee upheld the audit advisory that the Accounting Officer ensures
that user departments appoint contract supervisors and ensure contract
implementation plans are prepared as required by the procurement regulations
The Accounting officer indicated that he had taken note of the
recommendation.
124
of this report.
The assets register presented for examination lacked information pertaining to;
costs, location and dates of acquisition of the assets. Absence of the above
information impairs replacement planning, confirmation of existence of the
equipment and capital budgeting. Some of the assets that lack the above
details include; operating beds for the eye clinic, Refrigerators, computers and
vehicles.
Vehicles have been lying in the compound reportedly for more than 5 years
without being disposed off.
125
Query 5.2.1: Water Sector
Observation
The Committee was satisfied with the evidence.
Recommendation
The Committee recommends that the query be dropped.
126
financial constraints.
The Committee was informed that a water testing kit has now been bought and
more will be bought from the budget of FY 2016/17.
Observation
The Committee was satisfied with the explanation.
Recommendation
The committee recommends that the query be dropped.
127
establishment.
Observation
According to the new public service structure the query does not stand.
Recommendation
The committee recommends that the query be dropped.
The committee was informed that the missing receipts had been for UMEME
electricity payments done through Electronic Fund Transfer by Iganga
Hospital. The district has since shifted to YAKA for easy acquisition of
electricity receipts. Documentary evidence was presented to the committee
Observation
The Committee was satisfied with the explanation.
Recommendation
The Committee recommends that the query be dropped.
128
Query 5.2 Asset Management
The Accounting Officer explained that the district had joined hands with
National Forestry Authority to handle the issue.
Observation
The Committee acknowledged the efforts made by the accounting officer to
fight encroachers on the forest reserves.
Recommendation
The Committee upheld the query because the efforts free the forests of
129
encroachers is still on going.
130
of this report.
The Committee was informed that effective this FY the Internal Audit would
endeavor to review procurement procedures every quarter given that it is a
requirement of the PFMA, 2015.
Observation
The Committee noted that the Accounting Officer did not have any supporting
document.
Recommendation
The committee recommends that the query be upheld.
131
payment vouchers but the receipts were not seen by auditors. The affected
accountabilities were for people who went for capacity building but the
institutions did not give them receipts on time.
Observations
The Committee was not satisfied with accountability and concludes that the
documents are forged.
Recommendations
The Committee rejects the accountability and recommends that:
i. The query be upheld;
ii. Accounting Officer to recovers the UGX 2,841,000 from the Human
Resource Officer for negligence, the Accountant, the CFO and the
then Accounting Officer.
The Accounting Officer explained that the decision was made because the
works had to be completed in one month because the Financial Year was
coming to an end.
The Committee however found that the contract spilled over to the next
financial year.
The Committee upheld the advice of the Auditor General to avoid splitting of
132
procurements in future and to ensure compliance with the procurement law.
The Accounting Officer explained that other remedial actions had been taken
including deduction of 10% from the contractors first payment to compensate
for the performance security.
Recommendations
The Committee upholds the recommendation of the Auditor General to always
ensure that contractors fulfill their contract obligations.
Observation
The District needs to budget for both grants from the Central Government and
Locally generated revenue.
The Committee was informed that the district collects UGX 80,000,000
annually.
Recommendations
The Committee recommends that:
133
The MoFPED should always release all the funds as appropriated by
Parliament.
The Committee was informed that it is now a practice that every vote controller
initials in the vote book to ascertain the availability and movement of funds.
Observation
The district was not maintaining the vote books as required by the regulations.
Recommendations
The Committee recommends that the District maintains a vote book for every
department to ensure proper control of expenditure.
134
Query 5.8.1: Education Sector
Inspection of Busiiro Shallow well Waibuga Sub County revealed that the water
quality is poor and it is dirty.
The Accounting Officer attributed the poor quality of water to the galvanized
pipes that were used.
The Committee was informed that Bunafu borehole was repaired by replacing
the pump bucket and it is currently functional.
For Busiiro Shallow well the contractor has just finished drilling another
shallow well in the same area.
Observation
The Committee was satisfied with the explanation.
Recommendation
The Committee recommended that the query be dropped.
135
42,050,716 and the contract completion date was June 2015.
The audit inspection revealed the following shortcomings:
The civil works had not been completed by the time of inspections in
August 2015
Medical equipment which were in the general ward before renovation
were dumped in the compound
There is no running water in the ward.
The Committee was informed that works were done in accordance with BOQs.
The three companies that were contracted to do different aspects of work at the
health center worked at different rates and the work spilled over.
Audit found that objective of finishing work in Financial Year not met.
Observation
The Committee observed that:
i. Procurement Officer together with Engineer lied before Committee and
presented false docs. Admitted rendering query on Splitting
Procurement Standing.
ii. They paid Contractor all the contract money without completion
certificate issued. It is irregular defaulted in both supervising and
procuring contractors
iii. The project manager should have supervised to ensure that contract is
completed.
Recommendation
For observations and recommendations refer to crosscutting issue paragraph 1.1
136
of this report.
137
For observations and recommendations refer to crosscutting issue paragraph 6
of this report.
An inspection of selected health centers revealed that the standards are not
met.
138
Taxes amounting to UGX 6,924,172 lacked acknowledged receipts by
Uganda Revenue Authority (URA).
It was observed that by the District was awarded a contract for the hire
of road equipment under force account mechanism at a contract sum of
UGX 25,072,231 using direct procurement.
139
Analysis of a sample of 10 schools revealed that the required minimum
education standards have not be attained.
Observation
Contracts were skewed due to conflict of interest.
Recommendation
The committee upheld the query
140
For observations and recommendations refer to crosscutting issue paragraph 11
of this report.
Budget Performance
141
The District budgeted to receive UGX 30,124,266,000 from treasury
during the year under review. However, only an amount UGX
21,153,157,744 was released leading to a short fall of UGX
8,971,108,256.
Observation
The Accounting Officer provided satisfactory evidence.
Recommendation
The committee recommends that the query be dropped.
142
Query 5.4.3: Non Delivery of Medical Supplies
UGX.510, 600,855 had been allocated to the District for supply of
medicines by the National Medical Stores. However, only UGX
391,469,967 worth of drugs was supplied. The balance of UGX
119,830,582 was not supplied.
143
However, there was no evidence that the supplementary was approved by
the District Council. The Accounting Officer had indicated that approval
was obtained but no minutes of council were presented for audit
verification.
The Accounting Officer presented the approval.
Observation
The committee was satisfied.
Recommendation
The Committee recommends that the query be dropped.
Audit observed that two officers received a total of UGX 11,013,969 post
the mandatory retirement age of 60.
144
For observations and recommendations refer to crosscutting issue paragraph 10
of this report.
145
41. KAYUNGA DISTRICT
146
For observations and recommendations refer to crosscutting issue paragraph 1.1
of this report.
Observation
The Committee was satisfied with accountability of UGX. 15,147,820
being payment of UGX. 14,807,820 to Shataman Contractor Limited and
UGX. 340,000 to Mirimo Godfrey.
Recommendation
The Committee recommends that:
i. Query on UGX. 15,147,820 be dropped.
ii. The balance of UGX. 4,558,000 be recovered.
147
The committee was informed that the other schools were refunding the
money in a phased manner, however Mukitale foundation was not.
Observation
The Committee received a copy of a letter from Mukitale Development
Foundation Senior Secondary Schooladdressed to the CAO of Bulisa
District undertaking to recover the money in three installments.
Recommendation
The Committee recommends that:
i. Bugungu and Biiso should enter into understanding with the
District with a clear schedule as to when to complete payment.
ii. Mukitale Foundation refunds the whole amount of UGX
25,092,455 to the district within this FY.
148
Conducting procurements outside the procurement plan may create
budget overruns resulting into accumulation of domestic arrears.
149
Recommendation
The Committee recommends that the query be dropped.
The Accounting Officer explained that in the financial year (2015/16) the
district plans to embark on the construction of the 1st phase of the
district stores and for the recruitment of the store keeper, permission
had to be sought from the Ministry of Public Service.
150
44. KAMWENGE DISTRICT
Observation
The Committee found that the Accounting Officer certified the faulty
expenditure.
The Committee observes that it was careless of the Accounting Officer to
certify a document he does not agree with.
Recommendation
The Committee directed that the Accounting Officer recovers the money
from himself with immediate effect amounting UGX 2,730,000,
151
Observation
The Committee observes that the Contracts Register still needs
reconciliation because it indicates that some contracts still have balances
yet they do not.
Recommendation
The Accounting Officer was directed to reconcile the register
However, the funds were instead used for purchasing goats thus
diversion of funds.
The Committee was informed that the changes were made at the
community level and that the goats are to be branded in the subsequent
work plan.
152
Observations
The Committee observed that:
i. For the Accounting Officer to plan on branding the goats is an
endorsement of the anomaly.
ii. The District should have revised work plan.
iii. Instead of reprimanding the community that erred they were being
rewarded for the misbehavior.
Recommendation
The Committee recommends that the matter be investigated with a view
to prosecution.
153
Query 5.7: Lack of Information Communication (ICT) Policy
For observations and recommendations refer to crosscutting issue paragraph 7
of this report.
Observation
The Committee observed that:
i. Accountability should be done within one month of receipt of the
funds.
ii. Management and staff have exuded laxity on matters of
accountability of advances.
Recommendation
The Committee recommends that:
i. The accountability being late, it be rejected.
ii. The Accounting officer recovers the money amounting UGX
9,839,000.
154
UGX.34,444,192. The hospital is at a risk of power disconnection.
The Accounting Officer attributed the outstanding bill to the the
expansion of the Hospital and said that efforts are being made by
management to have the Bills paid.
The Accounting Officer however noted that the utility bills became higher
after the renovations because new equipment was brought in and more
facilities like the New OPD and emergency units opened. This creates
more avenues for power consumption and as a result the PAF Non wage
which is released on a quarterly basis of UGX. 35,174,578/= is not
adequate to meet all the operational expenses of the hospital at the
moment.
The bill has however shot up to 100million arising from the fact tat the
renovations used hospital power. The District is in the process of sorting
out the problem with the Ministry of Health MOH.
155
For observations and recommendations refer to crosscutting issue paragraph 3.1
of this report.
Observation:
The committee was not satisfied with the accountability provided by the
Accounting Officer.
Recommendation:
The Committee recommends that the Accounting Officer recovers the
sum of UGX 12,735,000 that was not accounted for.
156
bank accounts by the district, leaving a balance of UGX 3139,098
outstanding.
Observation:
The Accounting Officer admitted the shortcoming and pledged to correct
it.
Recommendations:
The Accounting officer was cautioned and advised to keep reconciled
books at all times.
157
Query 5.6: Construction of 15 market stalls at Kyarusozi
A sum of UGX. 2,925,000 was queried arising from the use of iron sheets
of gauge 30 instead of gauge 28 that was recommended.
Observation
This was a sub standard service offered to the people of Kyenjojo.
Recommendations
i. Committee recommends that the Accounting Officer recovers the
sum of UGX 2,925,000 from the responsible officer
ii. Committee recommends that the Accounting Officer reprimands
the responsible officer for providing sub-standard service to the
people of Kyenjojo.
Observations
The committee was not satisfied with the explanation made by the
accounting officer.
Recommendation
The committee recommends that accounting officer recovers all the funds
158
amounting UGX 18,820,850.
Observations
The committee observed that the voucher was missing at the time of
audit and at the time of presentation to the committee a period of over
one year.
Recommendations
The committee recommends that accounting officer recovers funds
amounting UGX 6,500,000 immediately.
159
Query 5.5: Incomplete Works
160
48. BUNDIBUGYO DISTRICT
Observation
The committee noted there was no accountability presented to the
committee and all queries were referred to the former accounting officer.
The committee was not able to meet the former accounting officer as he
never turned up when he was summoned.
The committee observed that there was a general intrigue amongst staff
Recommendation
The committee recommends that all the funds be recovered from the
officers
Observation
There was no accountability for the entire amount of UGX. 146,338, 827
161
Recommendation
The Committee recommends that the Accounting Officer recovers the
entire amount totaling UGX. 146, 388,827 from the two officers; one
Mwesigye the former acting Chief Finance Officer and another Mugamba
Eria the former CAO.
Observations
The Accounting Officer did not provide satisfactory explanation to the
Committee.
Recommendations
The Committee recommends that the Accounting Officer recovers the
said UGX. 72,555,412 with immediate effect.
162
Query 5.5: Irregular Contract Variation
The contract for the construction of Mirami Sub County was varied from
UGX.123,806, 400 to UGX.194,450,332 representing 57% increase in
the original price, without the approval of PPDA.
The Accounting Officer was unable to respond to the query satisfactorily
in the absence of the procurement Officer.
Observations
The committee noted that this was a violation of the PPDA law.
Recommendations
The committee upholds the auditor generals recommendation
Observations
The committee was not satisfied with the explanation offered by the
Accounting Officer
Recommendations:
The committee upholds the query.
163
Query 5.8: Salary Arrears
A sum of UGX. 485,589,855 remained as outstanding salary arrears
For observations and recommendations refer to crosscutting issue paragraph 3.3
of this report.
49.MASINDI DISTRICT
The Accounting Officer informed the committee that out of the UGX.
164,614,967 that was paid in error, Shs 131,080,000 has so far been
recovered from staff as at 31st July 2016 and hope to complete the
recovery by 30th September 2016.
164
Query 5.2: Under Staffing
The district has an approved structure of 145 staff, However out of the
approved posts only 85 positions had been filled leaving a staffing gap of
60 positions representing 41% understaffing.
Observation
The Register is now maintained by the district and is satisfactory.
165
Recommendation
The committee advised the Accounting Officer to continue maintaining
the register, and dropped the query.
The district has an approved structure of 3,724 staff. Out of the 3,724
approved posts, only 2,868 posts were filled, leaving a balance of 875
posts vacant, representing 39% of the approved posts.
Observation:
Documents for 2,583,000/= were doubtful and thus the funds were not
satisfactorily accounted for.
Recommendations
The Accounting Officer was advised to recover the sum of UGX.
2,583,000.
166
audited and therefore accounted for as there missing vouchers.
Observations
The committee was satisfied with the vouchers presented.
Recommendations
The Committee recommends that the query be dropped
The Committee was informed that the machine is now lying idle at
hospital.
The Accounting Officer explained that he had since written to the
Minister of Health seeking for the Ministers intervention.
167
52. KASESE DISTRICT
Observation
The committee noted the mills could not be installed pending the needs
assessment.
Recommendation
The committee recommends that the query be dropped
168
Query 5.4: Failure to Raise Demand Notes
The Committee was informed that the administration failed to raise
demand notes for UGX. 167,284,497.
The Accounting Officer explained that efforts had been made to recover
the said monies.
Observation
The Committee received evidence to show the efforts taken however
whereas the committee was satisfied with the accountability for UGX.
25,407.146, a sum of UGX. 135,481,841 remained unaccounted for.
Recommendation
i. The committee advised the Accounting Officer to proceed with the
legal means of recovering that sum of money.
ii. The committee referred the matter to the CID to inquire into the
conduct of the Chief Finance Officer and to advise the committee
accordingly.
Observation
The committee was not convinced with the accountability presented on
the sum of UGX. 3,400,000.
169
Recommendation
The Committee recommends that the UGX3,400,000 be recovered.
Observation
This may have been intended to conceal procurements outside the
procurement plans
Recommendation
The Committee recommends that the Accounting Officer should be
cautioned.
170
the Accounting Officer explained to the Committee that this barrier had
been constructed and completed despite the delay at its initial stages.
The Accounting Officer explained that the district had eventually sorted
out and presented the said files for inspection of the Committee,
Observation
The Committee was satisfied with the explanation offered by the
Accounting Officer
Recommendation
The Committee recommends that the query be dropped.
171
Query 5.2: Untitled District Land
The Accounting Officer informed the Committee that the funds have now
been accounted for and submitted accountabilities to the Committee.
Observations
172
the officer in question was an Assistant Health Officer.
Recommendations
The Committee recommends that:
173
Query 5.3: Book Keeping in U.P.E Schools
For observations and recommendations refer to crosscutting issue paragraph 17
of this report.
Observation
The Committee was satisfied with the explanation.
Recommendation
The Committee upheld the auditor generals advice that the Accounting
Officer should always seek for approval of the excess expenditure from
the Council and strengthen commitment control system.
174
retired, died, and others to duplicated staff names while others lacked
Consequently, the district may have lost funds.
It was reported that UGX 133,844,871 was collected out of the budgeted
UGX.155,206,772resulting into a shortfall of UGX. 21,361,901.
175
approved staff of 315 only 113 (37%) are filled leaving a staffing gap of
338 198 (63%) vacancies.
Observations
The Committee observed that the accountabilities provided do not tally.
Recommendation
The Committee directed the accounting Officer to recover UGX.
4,500,000 from the responsible officers including the former Accounting
Officer with immediate effect.
176
For observations and recommendations refer to crosscutting issue paragraph 3.3
of this report.
177
bush in the compound and surroundings.
The school buildings and furniture were abandoned
without any security.
The Accounting Officer explained that the school lacked
sanitary facilities, housing and accommodation for
teachers and that these are planned for in the financial
year 2016/2017.
The Committee was informed that the Ministry of Education has not yet
taken over the school but the district has requested them to do so.
Observations
The Committee observed that:
i. The District of Kotido did not plan for the school before going into
construction.
ii. Leaving the school idle is wastage of Government resources since
substantial amount of money has already been sunk in there.
Recommendation
The Committee recommends that the District should continue following
up with the Ministry of Education and Sports to take over the school.
178
The Accounting Officer promised that the district will compel the
contractor to complete the remaining works before retention money is
paid.
Observation
The Accounting Officer failed to substantiate the extra payment.
Recommendation
The committee recommends that the accounting officer makes good of
the lose and the CID should investigate the matter.
Observation
The committee noted that the quality of works was not satisfactory
including the gutters fitted, no steel pipes among others.
Recommendation
The committee recommends that the accounting officer makes good of
the extra monies paid for no work done.
179
Query 5.5.5: Lack of Cash Books in School.
For observations and recommendations refer to crosscutting issue paragraph 17
of this report.
The Committee was informed that the assets will be disposed off in the
next 2 to 3 weeks.
Observation
The Committee observes that the assets have still not been disposed off.
Recommendation
The Committee upholds the query.
180
For observations and recommendations refer to crosscutting issue paragraph 4
of this report.
The committee was informed that the activities were still ongoing at the
time of audit but are now complete and the accountabilities were
submitted.
Observation
The Committee observed that the only valid accountabilities amount to
UGX. 6,292,000 being accountabilities for funds advanced to Kitimoe
D.A., Loput Calisto and accountabilities for remittances of withholding
Tax to URA.
Recommendation
The Committee recommends that the Accounting Officer should recover
UGX 26. 39million
181
Query 5.1: Service Delivery
The Accounting Officer explained that the grading was done on 9km but
due to heavy rains, the road could not be traced.
Observations
The committee finds the submission by the accounting officer suspect as
the road worked could not disappear without trace. The admission by the
accounting officer tantamount to fraud and wasteful expenditure.
The committee noted variance in the road length reportedly worked on by
the accounting officer as per the works purportedly certificate of
completion adduced indicating 21 kilometers as opposed to the contract
length of 15 kilometers.
The committee rejected the accountability based on the document
provided by the accounting officer.
182
Recommendations
The committee recommends that the accounting officer makes good of
the loss.
The Accounting Officer explained that recovery of the money from the
responsible staff was on-going.
Observation
The committee observed that the entire district was a hard to reach area
and it was unfair to isolate the town council and some sub counties
within the districts not to be hard to reach areas.
Recommendation
The committee recommends that:
i. All the districts approved by MoPS as hard to reach should include
the urban centers.
ii. The accounting officer recovers the UGX 51,301,008 from the non-
183
entitled officers.
Query 5.1.4: Payment to staff who died and those who transferred
service.
It was observed that a cumulative figure of UGX. 20,691,180 was paid to
some district staff who passed on and those who transferred service
because they were left on the wage bill for extra months after they left or
died.
Observation
The Committee noted the efforts to recover the funds
Recommendations
The accounting officer should continue with the recovery
184
of some donor funds and other government transfers from NAADS and
NUSAF grants that had been budgeted for.
The Committee was informed that:
i. An officer to handle revenue has been appointed;
ii. The district is working towards revenue enhancement so as to
improve on its capacity to bridge the gap between the funds needed
to implement District programs and the amount that is remitted
from the Center.
Observations
The Committee observed that there is need for the District to step up
revenue collections so as to bridge the gap between the funds needed to
implement District programs and the amount that is remitted from the
Center.
Recommendation
The Committee recommends that the Accounting Officer should conduct
revenue assessment and step up revenue collection as a matter of
urgency.
Observation
The Committee observed that only accountabilities for UGX. 8,207,000
were genuine. These were accountabilities from Omutos Edward, Oboi
Richard and Okiror.
185
Recommendation
The Committee recommends that the Accounting Officer recovers the
outstanding balance of UGX. 1,655,000.
Observation
The Committee observed that the explanation exonorates the District on
this matter.
Recommendation
The committee recommends that the query be dropped.
186
A review of the Bank of Uganda Salary Statement revealed that salaries
totalling to UGX 14,332,440 were paid to various staff without any
support documents and lacked mapping templates which are the source
documents for the Salary payments.
187
59. NAPAK DISTRICT LOCAL GOVERNMENT
188
Observation
The Committee was satisfied with the accountability worthUGX.
14,719,000.
Recommendation
The Committee recommends that the Accounting Officer recovers the
outstanding balance of UGX. 15,550,697.
Observation
The committee observed that the District had eventually recruited some
staff.
Delayed recruitment of staff was caused by the demand by the Ministry
to run joint advertisements for vacant positions.
Recommendation
The committee recommends that the Ministry of Public Service ensure
189
that monies intended to cater for salaries are remitted to the districts in
time.
Refer to the general observations on failure to absorb funds meant for
salaries
190
Query 5.2: Procurement Anomalies
Observation
The relevant officer did not appear before the committee for terminal
illness. He was later declared to have passed on
Recommendation
The Committee recommends that:
i. This funds be written off .
ii. The Accounting Officer be cautioned.
191
of this report.
Observations
The Committee was satisfied with the accountabilities.
Recommendation
The Committee recommends that the Accounting Officer recovers UGX.
560,000 from Opolot Martin.
192
For observations and recommendations refer to crosscutting issue paragraph 10
of this report.
Query 5.4.1 and 5.4.2: Idle Dental Machine and Theatre Equipment
The district paid UGX.16,000,000 for the supply of Dental Machine and
UGX. 34,670,000 for supply of an operating bed, Autoclave Machine and
Anaesthetic Machine to Ngora Health Centre IV.
However, the dental machine was still idle and packed 20 months after
delivery and the other machines were also still packed 2 months after
delivery.
Having functional equipment that are not in use denies the public the
needed service.
The Committee was informed that the theatre is now in place and the
machines are operational in the hospital. The machines had not been
connected because UMEME delayed to connect power.
Observations
The Committee observed that Ngora District did not plan properly to
syncronise the delivery of the machines with the power connection.
Recommendation
The Committee recommends that the query be dropped.
193
Query 5.4.3 Audit Inspection of Primary school facilities
The Committee was informed that the stores Assistant has now been
recruited, a store built and an up to date stores ledger kept.
Observation
The Committee was satisfied with the explanation.
Recommendation
The Committee recommends that the query be dropped.
194
Ogoloi-Ongoria Swamp at a cost of UGX. 45,381,000 funded by NUSAF
By the time of audit all the money had been paid.
The Accounting Officer explained that the district had anticipated more
financing from NUSAF to open the linking roads but the funding never
came.
The Committee was informed that the district has now got funds to
construct the linking roads under the NUSAF III water sheds projects.
The Accounting Officer submitted evidence of correspondences between
Kumi District and Prime Ministers Office and also the MOU between
Kumu District and NUSAF.
Observation
The Committee was satisfied with the explanation.
Recommendation
The Committee recommends that the query be dropped.
195
of this report.
Observations
The Committee was only satisfied with accountabilities worth UGX.
2,145,000 being accountabilities of funds advanced to Spike
Investments.
Recommendations
The Committee recommends that the outstanding balance of UGX.
6,716,000 be recovered by the Accounting Officer.
196
Disposal activities of the Procuring and Disposing entity.
Consequently, the district may not have obtained value for money.
Observation
The committee observed that the sum of UGX. 15,000,000 was paid
contrary to the laws of Uganda, allegedly for purchase of land at the
request of Uganda Prisons Service, and expected to be later by the
Prisons Authorities.
197
Recommendation
The Committee recommends that the Accounting Officer responsible for
the expenditure refunds the UGX 15,000,000 illegally paid for the
purchase.
Query 5.2
a) Shoddy work at Kerenga Health Center IV
For observations and recommendations refer to crosscutting issue paragraph 1.1
of this report.
Observation
Documents for the accountability were later retrieved and scrutinized to
the satisfaction of the committee.The IGG office was involved in the
inquiry into the matter and had taken all the documentation that was
required for accountability
Recommendation
The Committee recommends that the query be dropped
198
Query 5.4 Absence of deposit account for retention monies
Observation
The PFMA requires entities to return money at the end of the financial
year including retention fees.
Recommendation
There is need toamend the PFMA on the return of money at the end of
the financial year as it is not possible to pay retention fee within defect
liability period of the public works.
199
Query 5.5 UPE Schools
200
Query 5.6.2: Under Staffing
The District has an approved structure of 779 of both district and health
staff, but only 441 (56.7%) are filled leaving a staffing gap of 338 (43.3%)
vacancies
It was observed that UGX 199,666,448 was collected out of the budgeted
UGX. 299,098,000resulting into a shortfall of UGX. 99,431,552. This
201
constituted only 33% of the budgeted revenue.
42 staff members did not receive their salary arrears totalling to UGX.
83,296,727.
The district paid for 18 culverts at a total cost of UGX.3,060,000 for use
on various road works but they were abandoned on the road sides.
202
Projects worth UGX. 809,701,780 planned and undertaken during the
financial year and expected to have been completed before the closure
of the year were still on going at different stages or abandoned and
with some elements of substandard works noted.
The district has an approved structure of 157 staff, but only 74 (47%) are
filled leaving a staffing gap of 83 (53%) positions.
203
Unplanned procurements worth UGX. 62,693,684
204
by the end of 2014/2015 Financial Year.
UGX 18,406,716 was paid to non-validated employees.
205
Query 5.8 Lack of Land Titles
The district has an approved structure of 1346 positions, but only 959
(71%) are filled leaving a staffing gap of 387 (29%) positions.
206
posts were filled leaving a staff gap of 92(59%) posts.
207
68. AMUDAT DISTRICT
Observation
208
The Accounting Officer submitted the accountabilities to the Committee.
Observations
The Committee observed that the accounting officer accounted for the
funds though not within the one month as stipulated in the law.
Recommendations
The Committee recommends that the query be dropped, but caution be
administered to the Accounting Officer to in future ensure that funds are
accounted for within the statutory period..
5.3 Understaffing
The district has an approved structure of 126 staff. Out of the 126
approved posts, only 54 positions were filled, leaving 72 posts vacant,
representing 57% of the approved structure.
209
For observations and recommendations refer to crosscutting issue paragraph 4
of this report.
Observations
The Committee observed that:
i. There is a lot of laxity among the staff in the district on matters of
accountability.
ii. The Accounting Officer did not perform his supervisory role in
ensuring that the accountabilities were done properly.
iii. Some of the documents presented did not appear to be genuine.
Recommendations
The Committee:
i. Rejects the accountability;
ii. Recommends that the Accounting Officer recovers the money
within a period of one month from the date of adoption of this
recommendation.
iii. Recommends that the Accounting Officer be held liable for
noncompliance with the accounting regulations.
210
iv. The Committee referred the Accounting Officer, the Chief Finance
Officer and the Senior Commercial Officer, Mr. Richard Okello to
CIID over forged accountability documents of the UGX19,291,000.
v. The Committee further tasked the CID to investigate matters of
accountability in Amolatar District.
Observations
211
ii. The Accounting Officer disregarded the regulations and
the advice of the Auditor General.
Recommendations
The Committee was informed that the works were on going at the time of
audit.
Observations
212
Company Limited in Lira did not have quoted prices and left out
labor costs. This was upon a handwritten requisition from a
one Peterson Oyoo, for Assistant Engineering Officer.
iii. The Accounting Officer disregarded procurement procedures and
guidelines.
iv. The Accounting Officer did not give satisfactory explanation on the
fuel consumption for 20 days.
v. The committee observed that the capacity ofe general the staff of
Recommendations
213
of this report.
The Accounting Officer informed the Committee that the funds were not
fully accounted for as some officers had retired financial accountabilities
but not the technical accountabilities.
Observations
Recommendations
214
Query 5.2 Understaffing
The District has an approved structure of 146 staff. However, it was
observed that out of 146 posts, only 49 posts were filled leaving 97
vacant posts representing 66% of the establishment.
Observations
215
Recommendations
216
The Accounting Officer explained that Council was still awaiting the
outcome of the special audit being carried out by the District Internal
Auditor.
The Committee was informed that the affected staff are district
employees and their files were presented to the Committee as evidence of
their existence.
Observation
The Committee was concerned that the Accounting Officer did not give
Auditor General the said files at the time of audit.
ii. such behavior was attributed to negligence.
Recommendation
i. The Committee recommends that the Human Resource Officer and
the Accounting Officer should be held liable.
ii. The Accounting Officer should recover the UGX. 71,972,777 within
one month from the date of adoption of this recommendation.
217
The Chief Administrative Officer informed the Committee that the goods
in question were old tyres that should have been taken to the stores
when new ones were bought.
Observations
The Committee observed that it is the new tyres that did not pass
through the stores.
Recommendations
The Committee recommends that the query be dropped with caution to
the Accounting Officer.
218
finished. The documents were handed over to the Committee. The
certificate of completion has not yet been issued because it is still under
the defect period.
However, it was observed that the Technical school was not operational
in the district rendering the transfer fictitious. In previous audit reports,
it was reported that Operational Funds amounting to UGX.555,933,000
were transferred to the same Technical and firm School for the financial
years 2012/2013 and 2013/2014.
Observation
i. The committee established that the Institute was non existent
219
ii. The committee finds the release a ploy by the Ministry of finance,
planning and economic development to defraud government,
Recommendation
i. The committee finds the transaction suspect and accordingly
recommends that a thorough investigation be conducted.
Observations
i. The Committee observes that the Audit was done after the closure
of the Financial Year so the activities could not have still been on
going.
Recommendations
The Committee recommends that the Accounting Officer should recover
the money from the officers a total sum of UGX 67,849,000.
220
Query 5.3 Over Payments of Salaries
The district over paid salaries amounting to UGX.32,334,357.
221
The Accounting Officer informed the Committee that the monies have
now been accounted for except for two officers who have loans. He
provide evidence of the recoveries.
Observations
The Committee was satisfied with the evidence of recoveries.
Recommendations
The Committee recommends that the query be dropped except for the 2
officers.
222
overpayment of UGX.32,955,855. In addition, duplicate payments
amounting to UGX.8,419,256 were made to five staff.
Observations
The Committee observed that:
i. The fuel money was paid to Shell Malindi yet the receipt is for Shell
Lira which are two different petrol stations.
ii. In a number of instances private cars were fueled. The Committee
rejected the explanation that the private number plates
belonged to hired road equipment that were doing the road
works with permission from the Ministry of Works.
iii. The signatories on the fuel vouchers were not consistent. At one
point the same person signed on one voucher as an Accounting
Officer and on another as a driver.
Recommendation
The Committee recommends that the documents relating to this query were
doubtful and the matter was referred the supervising Engineer to the CIID.
223
Query 5.3. Non Remittance of Withholding Tax
For observations and recommendations refer to crosscutting issue paragraph
11 of this report.
Observations
The Committee observed that:
i. The committee asked the district to take stalk of donations from
development partners.
ii. The district must always record donations in its books.
Recommendation.
The committee recommends that District properly receives and records
the equipment accordingly.
224
81. APAC DISTRICT
Query5.1 Unaccounted for Funds
The Auditor General reported that a total of UGX.85,520,700 remained
unaccounted for by the end of year.
The Accounting Officer submitted a Distribution list for the ox ploughs.
The Committee was informed that the Production Officer who was the
focal Point Person in this transaction refused to come to the Committee
meeting.
Observations
The Committee observed that:
Recommendations
The Committee recommends that:
i. The Accounting Officer and the other officers involved be
investigated by CIID.
ii. The Accounting Officer recovers the money from the former
Accounting Officer, the Chief Finance Officer, the Production
Officer, the Procurement Officer and all other departmental
heads who were involved in this procurement.
225
Query 5.2: Unsupported Payment of Domestic Arrears
A review of cash flow statement revealed that domestic arrears paid
during the year amounted to UGX.3,789,821,272. However, the
supporting documents were not provided for audit. Besides the
Statement of Outstanding commitments as at 30th June 2014 on Page 50
of the Financial Statements shows a balance of only UGX.23,085,261.
In addition, the same statement of outstanding commitments reported
outstanding statement of UGX.200,698,807 by 30th June 2015 whereas a
schedule of accounts payable on page 52 reported a balance of
UGX.127,830,185 rendering the Financial Statement balances reported
misleading.
The Accounting Officer explained that there was a mix-up since monthly
arrears cleared within FY 2014/15 was added to the arrears of the
2013/14 for the year and they have separated the arrears of previous
financial year. There was however no change in the financial statements.
The Committee was informed that those were not domestic arrears but
rather errors that arose from the fact that the staff had not been trained
on how to use the IFMIS. In this case the payments were not
accompanied by source of revenue hence their reflection as domestic
arrears.
The Accounting Officer said reconciliations have since been made and
errors corrected.
Observation
There was incompetence by the Chief Finance Officer
Recommendation
The Committee recommends that the query be dropped.
226
During audit it was observed that reallocations amounting to
UGX.4,532,761,373 were made on four programs without authority and
proper reallocation warrants.
The Accounting Officer informed the Committee that this problem also
arose from the faulty accounts.
Observation
The committee noted that CFO was recalled from retirement and was of
advanced age unable to perform his duties effectively.
Recommendation
The Committee advised the Accounting Officer to:
i. The committee recommends that a substantive CFO be recruited.
ii. In future seek authority before reallocations are done.
iii. The district should prioritize training of staff in financial
management
227
It was observed that the district had unexpended balances of
UGX.1,812,072,691 of which UGX.1,765,395,052 was returnable to the
Consolidated Fund at the close of the year.
For Committee Observations and Recommendations refer to the
Crosscutting issue paragraph 9.
228
83. KOLE DISTRICT
A review of the payroll for the period July 2014 to October 2014 revealed
that the district did not levy, charge LST worth UGX.9,245,000 from
some of its staff.
229
For observations and recommendations refer to crosscutting issue paragraph 10
of this report.
The Committee was informed that that the officers were informed of the
anomaly and letters to effect recoveries were written to them.
Recoveries of UGX. 3.9 million have so far been made and will be cleared
by the end of Financial Year 2016/17.
Observation
The Committee noted the progress of the deductions.
Recommendation
The Committee recommends that the recoveries be effected and
completed by the end of this Financial Year.
However, a review of the district cash book and bank statement revealed
that the district only received UGX.1,043,391 out of UGX.4,095,321 on
17th April 2015 leaving a balance of UGX.3,051,930 outstanding.
230
The Committee was informed that a follow up with the Ministry of Energy
and Mineral Development was done but to date the payments have not
been made.
Recommendation
The Committee upheld the query.
231
Query5.4 Unaccounted funds
UGX. 3,492,500 was advanced to a district employee to carry out official
activities remained unaccounted for by the time of audit.
The Accounting Officer explained that the unaccounted for funds were
advanced to a former District Engineer who resigned and that the matter
had been reported to Police.
Observation
The Committee observed that the work of Parliament in regard to audit
queries needs to be harmonized with the work of the IGG.
Recommendation.
The Committee recommends that the query should be dropped because
the Accounting Officer has no avenues of recovering the money from the
individual.
232
Query 5.7 Lack of Land Titles
233
of this report.
Query5.6: Education
Performance of UPE Schools
Education
a) Performance of UPE Schools
For observations and recommendations refer to crosscutting issue paragraph 2
of this report.
234
87. KIRUHURA DISTRICT
235
Query 5.4 Direct Procurements
The district procured supplies and services worth UGX.9,919,000 using
direct procurement method without justification and approval by the
contracts committee.
The Accounting Officer explained that the district did not have approved
providers for the procurements.
Observations
The Committee observed that:
i. the dates on the vouchers did not tally.
ii. The Accounting Officer flaunted the procurement procedures
Recommendations
The Accounting Officer should recover the UGX. 9,919,000 for which she
failed to account.
236
Query 5.7 Lack of Land Titles
237
Failure to deduct the required installments owed to financial institutions
is a breach of the loan agreements and may lead to litigation.
The committee was informed that the district no longer guarantees staff
loans so employees deal directly with the lending organizations.
Observations
The committee observed that there was no documentary evidence that
the district cancelled the guarantees to staff loans that were already
entered into or that the district had started honoring its obligations for
the loans it guaranteed. This could lead to litigation.
Recommendation
The committee upheld the audit query.
238
The district failed to deduct local service tax from staff for the year under
review amounting to UGX.10,875,000.
239
It was observed that procurements worth UGX.724,027,971undertaken
for Sub-counties were evaluated at the district without representation of
the sub-counties on the evaluation committee.
The Committee was informed that the framework contracts are now in
place and provided evidence.
240
Observation
The Committee was satisfied with the evidence.
Recommendation
The Committee recommends that the query be upheld.
241
For observations and recommendations refer to crosscutting issue paragraph 4
of this report.
242
Query 5.2: Under Staffing
The district had an appoved staff establishment of 918 positions.
However, out of the approved positions, only 483 (53%) positions were
filled leaving 435 (47%) posts vacant.
243
Query 5.4 : Non- compliance with statutory obligations
244
some employees did not access the payroll within the four weeks of
assumpting of duty which led to the accumulation of salary arrears
amounting to UGX.107,570,405.
245
Query 5.5: Expired Drugs
For observations and recommendations refer to crosscutting issue paragraph 5
of this report.
246
Query 5.4 Understaffing
The district has an approved structure of 2,664 staff. However, out of
the approved positions of 2,664 only 2,264 (85%) positions were filled
during the year leaving a balance of 400 (15%) positions vacant.
247
96. NTUNGAMO DISTRICT
248
of this report.
249
Query 5.5 Inadequate standards in Primary Schools
For observations and recommendations refer to crosscutting issue paragraph 2
of this report.
Observation
The Committee noted that evidence was not provided to the committee.
Recommendation
250
Query 5.2 Inconsistencies in Quarterly Salary budgets, Releases
and payments
An analysis of the districts annual wage budget of UGX 9,786,138,132
and the quarterly budgeted release of UGX 2,446,534,533 revealed
discrepancies between budgeted figures, quarterly releases, and actual
payments.
The Committee was informed that this arose from a number of staff,
mostly teachers who were deleted from the payroll due to loans well
above 50% of their salaries
Recommendations
The Committee upheld the query.
251
Query 5.3 Evaluation of Internal Audit Function
A review of the function of Internal Audit revealed the following
shortcomings;
i. Understaffing
Underfunding
Recommendation
The Committee upheld the query
The work of Internal Audit was not documented Audit Working Paper
Files rendering the conclusions unreliable.
Recommendation
The Committee upheld the query
252
Query 5.5 Assessment of the Performance of the Local
Governments Public Accounts Committee (LGPAC).
Section 16 of the Local Government Financial and Accounting Regualtion
2007 require that the Local Government Public Accounts Committee
(LGPAC) to examine the reports of the Auditor General, the need of
internal audit and any other reports of commision of enquiry and
produce a report for submission to Council and the Ministry. It was
however observed that no LGPAC, reports were submitted to the district
Council for consideration.
253
their scale were instead paid UGX.132,868,320 resulting into a salary
overpayment of UGX.32,654,439.
The Committee was informed that UGX 720,000 under Khanka Rogers
that wasnt accounted for was not for stationery, printing, binding,
photocopying and fuel but was for payment of allowances
Observations
The Committee observes that the documentation provided had
discrepancies and looked forged.
Recommendations
The Committee recommends that UGX 5, 935,000 be refunded by the
CFO and Internal Auditor.
Observation
The Committee observed that the documents submitted appeared forged
254
and suspect.
Recommendations
The Committee upheld the query.
255
inadquate funding due to poor local revenue base and budget cuts on
central government funds.
Recommendation
The Committee upheld the query
256
and 5 months down the road) despite the fact that the district had
budgeted UGX 29,500,000 for the activity. The delayed completion of the
process directly translates to loss of revenue to the district.
Recommendation
The Committee upheld the query.
Observation
The Committee noted that the Accounting Officer was unable to respond
to the query.
Recommendation
The committee recommends that the accounting officer recovers all the
monies UGX 4.965million
257
Query 5.2.2: Incompletely Vouched Expenditure
It was observed that a sum of UGX. 6,387,080lacked the necessary
supporting documents.
Observation
The Committee was not satisfied with the documents.
Recommendation
The Committee recommends that:
i. The query be upheld
ii. The Accounting Officer recovers the UGX 6.387million
258
Appollo was appointed to the Evaluation Committee for the rehabilitation
of community access roads.
Observation
Recommendation
Observation
Recommendation
Inspections were done on Majanji HC II, Masafu Hospital and other three
259
non functional health centers.
Observation
The Committee observed that no accountability documents were
260
submitted.
Recommendation
The committee upheld the query and therefore recovery be immediately
effected by the accounting officer
The Committee was informed that at the time of audit the headed audit
working papers were not in place though however the formatted working
papers were now in place and the audit capacity gap had now been filled
up with the recruitment of one extra examiner of accounts
261
Recommendation
The Committee recommends that the query be dropped.
262
Query 5.3 Un-clear Payment of Domestic Arrears
A review of the Cash flow statement indicated that the district paid
domestic arrears amounting to UGX.53,465,507 as domestic arrears.
However, no details in form of a schedule and evidence of existence of
arrears were not provided for audit verification.
The Accounting Officer explained that these were direct payments that
included payments to staff for their arrears but no supporting evidence
was provided for verification.
Observations
The Committee observes that whereas the Accounting Officer was aware
of the Local Government Act and its provisions on tax revenue, he did
not advise Council on the illegality of the tax.
The Committee further observes that the entity risked lawsuits brought
against it by contractors on account of illegality of a tax imposed on
them.
Recommendations
263
Query 5.4 Funds not Accounted for
Observations
The Committee observes that the documents submitted appeared forged
and suspect without any supporting documentation
Recommendations
The Committee recommends that the Accounting Officer to recover UGX
17, 464, 343 with immediate effect.
Recommendation
The Committee recommends that the Accounting Officer recovers the
funds with immediate effect
264
Observation
The missing vouchers were availed except the committee was not
satisfied with the voucher for a sum amount UGX 1,229,684.
Recommendation
The committee recommends that the accounting officer recovers the
whole amount of UGX 1,229,684 immediately.
265
103. KWEEN DISTRICT
Payment note 14 to the Cash flow statement shows that the district paid
a total of UGX.172, 896,375 as domestic arrears. However, the
supporting documents were not presented for audit verification rendering
expenditure doubtful.
The Accounting Officer explained that the arrears related to salaries but
no documentary evidence was availed for audit verification.
Observation
The Committee was satisfied with the documents
Recommendation
The Committee recommends that the query be dropped.
UGX 119,896,000 was budgeted for, but only UGX 74,947,000 was
266
realized leading to a shortfall of UGX 44,949,000.
Observation
The committee observes there was both lack of proper explanation and
supporting documents
Recommendation
The committee recommends that the accounting officer recovers the
whole amount of UGX 22,250,000
The responsible Officer that is the Procurement officer was not available
to respond.
Recommendation
The Committee directed that the Accounting Officer prevail upon the
procurement officer to respond or else refund the monies used worth
267
UGX 22,707,250.
Observations
The Committee found the accountability for UGX 13, 321,500 doubtful.
Recommendation
The Committee directed that the Accounting Officer recover the funds
amounting to UGX 13, 321,500 from the responsible officers
Observation
The Committee scrutinized the accountabilities presented and they were
doubtful.
268
Recommendation
The Committee recommends that the accounting Officer recovers the
total amount of UGX 53,369,800 immediately.
i.Under Funding
Out of the UGX 25,258,000 provided for in the budget, only UGX10,
183,000 was released representing only 40% of the budget. A weak
internal audit function undermines internal controls.
269
Internal Audit Manual, 2007. Failure to discuss and implement
recommendations of the internal audit renders its functionality
irrelevant.
The Accounting Officer admitted the shortcomings and promised to
discuss the reports and implement all the recommendations therein.
Observation
The Committee was not satisfied with the explanation
Committee Recommendations
The Committee upholds the query.
270
106. PALLISA DISTRICT
Observation
The Committee was not given a satisfactory explanation.
Recommendation
The committee recommends that the Accounting Officer recovers all the
funds from the officers with immediate effect amounting UGX.36,
657,650.
Observation
The Committee was not given a satisfactory explanation.
Recommendation
271
The committee recommends that the funds be recovered immediately
272
UGX.75,179,202.
Observation
The Committee was satisfied with the accountabilities execpt the one of
the RDC (Ms Ajilong Bessy)
Recommendation
The Committee recommends that the Accounting Officer recovers the
UGX 640,000 from the then RDC immediately.
273
The Committee was presented with accountabilities.
Observation
The Committee was not satisfied with the accountabilities.
Recommendations
The Committee recommends the accounting officer recovers the funds
immediately amounting to UGX. 80,342,500
Observation
The Committee was not provided with the relevant documents.
Recommendation
The Committee upheld
274
Query 5.5 Under Staffing
Observation
275
Recommendations
Observation
Recommendations
276
For observations and recommendations refer to crosscutting issue paragraph 6
of this report.
Vehicle movement log books were not availed for audit verification.
It was observed that out of the budgeted sum of UGX 926,982,743 only
UGX 460,239,253 was realized leading to a shortfall of UGX 466,743,490
representing 50.4%.
277
For observations and recommendations refer to crosscutting issue paragraph 10
of this report.
Observation
Recommendation
It was noted that the district accumulated salary arrears for employees
amounting to UGX315,193,294.
278
109. BUDAKA DISTRICT
Observation
Recommendation
The committee recommends that the accounting officer recovers all the
monies amounting UGX 18,124,000 with immediate effect.
The accounting officer and the chairman of the district are responsible
for enticing the staff with advance deposit.
Recommendation
279
The Committee was presented with vouchers for the expenditures.
Observation
The committee observed with serious concern the manner in which
public funds were being abused in Budaka district
Recommendation
i. Mr. Ndoboli and the CFO should refund UGX. 812,000 for
paying safari day allowance for a meeting held at their station.
ii. The Committee recommends that the Accounting Officer
recovers the UGX. 1,374,000 from
It was observed that the district constructed and completed Mugiti HC III
280
at a cost of UGX.292,468,766.
Ms. Buyela Building Contractors Ltd was awarded a contract for the
construction of staff house at Mugiti H/C III at a contract sum of UGX.
66,666,667. The project was scheduled to start on 15/07/2014 and be
completed by 15/02/2015.
However, at the time of the Audit inspection on 8th July 2014, UGX
41,350,551 (62%) had been paid to the contractor and the project was
still incomplete despite expiry of the period. Further there was no
evidence on file to show that approval of extension of the contract period
was granted.
281
Records had indicated that Gravel worth of UGX. 163,481,000
were purchased but there was no evidence of receipt.
Observations
Recommendation
282
The Committee recommends that the Accounting Officer recovers the
total amount of UGX 69,632,147 immediately.
Observation
The Committee was not satisfied with the vouchers.
Recommendation
The Committee recommends that the Accounting Officer recovers the
UGX. 42,481,410 immediately
283
The Accounting Officer did not submit any supporting documents.
Recommendations
The Committee recommends that:
i. The query be upheld .
ii.The Accounting Officer immediately recovers the UGX5,746,800.
284
Recommendation
The Committee upheld the query.
Wires and cables 1.5 and 2.5mm, single and twin, M/strand
were not installed in the entire building.
The Committee was informed that the contractor went back to the site
and provided a solar system with a six months guarantee.
285
111. MBALE DISTRICT
Observations
Recommendations
The Committee upheld the query to have the sum of UGX 13,831,850
recovered immediately.
286
Observations
The Committee observes that the Accountability was fraudulent.
Recommendations
The Committee recommends that:
i. The query be upheld.
ii. The Accounting Officer immediately recovers the UGX. 10,577850
It was observed that the District did not have a risk management policy
in place.
The Accounting Officer informed the Committee that the policy was
developed, tabled before council and approved.
Observation
The Committee was satisfied with the progress.
287
Recommendation
Inspection was carried out on a sample of projects carried out during the
Financial Year revealed that two projects namely; Construction of motor
bike ambulance shade at Bumadanda and Nakaloke HCIIs and
Construction of 5 stance lined pit latrine at Nabiiri Primary School had
been abandoned by the contractors before completion.
B. MUNICIPAL COUNCILS
1. ARUA MUNICIPALITY
288
For observations and recommendations refer to crosscutting issue paragraph 1.3
of this report.
It was observed that at time of inspection, the Council had spent UGX
489,783,196, however, according to the bills of quantities the f works had not
yet been completed.
Observation
The Committee learnt that the works have been ongoing for three years and
observed that for works on half a Km of road to run for 3 years and still remain
incomplete is unacceptable.
Recommendation
The Committee recommends that the matter be investigated with a view to
prosecution.
289
of this report.
The Accounting Officer explained that a team has been put in place to generate
the registers in the required format.
290
revenue registers.
iii. The arrears were compiled.
iv. In regard to rent arrears the Committee was informed that
there is controversy of the ownership of the estate. At some
point the Central Government claimed it but later it was
established that it belongs to council. At the time of the
uncertainity arrears accumulated.
v. The market had wrangles and revenue was lost.
vi. The Committee sought information about Mbana Properties and
was informed that It is firm that helps collect property rents
from UMEME
Observation
i. The Committee observes that the Accounting Officer takes
responsibility for the accumulation of rent arrears arising from
negligence.
ii. Contract terms with the tenants are not clear so there seems to
be connivance to defraud the Municipality of revenue.
iii. The Committee notes that there is under collection, under
estimation and under declaration of revenue.
iv. The Committee observes that there is laxity in the enforcement
unit.
Recommendation
The Committee recommends that:
i. The Accounting Officer takes responsibility for what should have been
collected coz of negligence.
ii. Law enforcement Officer be held responsible for non compliance and
sanctions must be put and evidence shown by November 30th 2016.
iii. The Accounting Officer should ensure that the enforcement unit
performs its role and all revenue arrears are collected. If need be the
291
debtors should be sanctioned.
iv. The Accounting Officer submits details of all companies contracted to
collect revenue and the council minutes awarding the contracts.
v. The Accounting Officer should ascertain how much revenue could have
been lost.
vi. The Auditor General should conduct a Special Audit on markets under
the World Bank.
The Accounting Officer informed the Committee that he noted the anomaly
after audit and he cautioned the Treasurer.
Observation
The Accounting Officer is responsible for the anomaly because he should have
supervised. Caution for such an offence is too lenient.
Recommendations
The Committee recommends that the Accounting Officer takes responsibility
for the anomaly
292
Query 5.4 Unsupported Salary Arrears
A total of UGX 4,867,366 was paid to employees as salary arrears. However,
the payments were not supported by approved claim forms.
The Accounting Officer explained that for the arrears paid without supporting
documents, recoveries shall be effected.
Observation
Payments without approved claims are irregular.
Recommendation
The Committee recommends that the Accounting Officer recovers the money
immediately.
293
establishment.
Observation
The Committee observed that MoLG should not obstruct district officials from
making independent decisions to buy motor vehicles of their choice as it had
been noted that the ministry had imposed on the council particular motor
vehicle which were also weak and the service of the vehicles were also directed.
Recommendation
The committee noted the whole scheme of motor vehicle loan by MoLG be
investigated
The Committee was informed that the Board of Survey did not attach values to
the vehicles, and others do not have log books.
294
For observations and recommendations refer to crosscutting issue paragraph 12
of this report.
3. KASESE MUNICIPALITY
Observation
The Committee received and looked through the voucher and found them
295
satisfactory
Recommendation
The Committee recommends that the query be dropped
4. LIRA MUNICIPALITY
Query 5.1 Unaccounted for expenditure
The Accounting Officer informed the Committee that all the accountability
documents were submitted to the Auditor General at the time of audit except
the attendance list for the field activity. The attendance lists were not
submitted because the Accounting Officer and his team did not know that they
were required for the accountability which was a field visit by staff who had
acknowledged receipt of the funds.
Observation
The Committee observed that:
i. The payments were irregular because the officers were paid safari day
allowances yet they were working in their duty station. According to the public
Service Rules, Safari Day allowance is paid to an officer when they work in the
field at a place of 20killometers away. The Officers in question were paid for
296
work done within the Municipality.
ii. that the voucher for the payment that was tendered to the Committee by the
Accounting Officer as evidence was dated three months after the closure of the
Financial Year.
iii. The Accounting Officer continued to flaunt the public service regulation
because by the date of this meeting they were still paying officers safari day
allowance even when the worked less than 20km away from their duty
stations.
iv. The committee was not satisfied with the accountabilities presented;
Recommendation
The committee recommends that the accounting officer recovers the funds
from the officers immediately
5. IGANGA MUNICIPALITY
Query 5.1 Unauthorized Bank Over drafts
Management obtained bank overdrafts without approval from council
totaling to UGX. 12,280,480.
297
The Accounting Officer communicated to the concerned Officers and secured
the council minutes that were not shown to the auditors.
Observation
The Committee observed that the explanation is not satisfactory and upheld
the advice of the Auditor General that in future the Accounting Officer should
ensure that councils accounts are not overdrawn without prior permission of
the Council.
Recommendation
The Committee recommends that:
i. The query stands.
ii. The committee recommends that the funds be recovered from the
Accounting officer and CFO.
The Committee was informed that the payables built up because of budget
cuts. The Accounting Officer submitted the list of outstanding payables
298
Query 5.4: Unaccounted for Funds
UGX. 13,733,000 remained unaccounted for at the end of the Financial Year.
The Committee was informed that the accountability has now been made
and the documents were submitted.
Observations
The documents presented for accountability were not satisfactory.
Recommendation
The Committee recommends that the UGX. 13,733,000 be recovered from the
responsible officers immediately.
299
Query 5.7 Lack of Land Titles
6. JINJA MUNICIPALITY
300
Query 5.2 Status of Uganda Support to Municipal Infrastructure
Development Program (USMID) Project Implementation
UGX.815,181,449 by the end of the Year under review. This arose from failure
to remit revenues to the lower local councils of Walukuba, Mpumudde
301
Audit found that the facilities in Walukuba Health Center IV, Mpumudde HC
IV,Jinja HC III,Kimaka HC II, Masese Port HC II, Masese III HC II, Kisima HC II
were not satisfactory.
A value for money audit was carried out on infrastructure projects in the
Municipality.
For observations and recommendations refer to crosscutting issue paragraph 1.1
and 1.2 of this report.
7. MUKONO MUNICIPALITY
The Accounting Officer informed the Committee that at the time of audit the
documents were there but there was a problem with the filing system.
Observation
The Committee observed that acknowledgement of payment was done on a
plain sheet of paper that is not stamped. The Committee observed that these
kinds of papers can very easily be forged and advised the Accounting Officer to
use letter heads for this purpose.
302
Recommendations
The Committee upheld the query.
The Accounting Officer informed the Committee that deductions had been
made and the evidence was provided.
The Committee was informed that Mukono Municipality paid the withholding
tax to Uganda Revenue Authority from other sources and deducted the money
from the contractors in the subsequent contract.
The tax receipts from Uganda Revenue Authority was presented to the
Committee.
Observations
i. The Committee observed that the fact that the Accounting Officer paid
the withholding tax from other sources of funding instead of claiming it
from the contractor with the intention of deducting it from the
subsequent payments from other contracts meant that he awarded the
next contract to these same contractors with out competitive bidding.
ii. The Committee was informed that IFMIS deducts withholding Tax
automatically. The Committee then questioned how the withholding Tax
would be deducted twice.
iii. The Committee noted that the contractors were not notified of the fact
that they owed Mukono Municipality Withholding Tax. This renders the
Municipalities action of paying off the withholding Tax to URA from
other sources instead of claiming it from the contractors suspicious.
303
iv. The Committee noted that of the 23 companies that did not pay
withholding tax only 8 have been given new contracts. The intention to recover
the withholding tax from the companies becomes even more doubtful.
v. The Committee further observed that the Accounting Officer in a number
of instances instead of advancing the money to companies that provided
services they paid individuals to evade tax.
Recommendations
The Committee recommended that the Accounting Officer should recover the
money from the emoluments of the Chief Finance Officer because:
i. He failed to recover the money that the Municipal Council paid to URA.
ii. Cannot explain where he got the funds from to pay URA.
iii. He failed to advise the Accounting Officer on this matter yet he is the
Principal Advisor on Financial matters.
A review of the municipality valuation roll for property rates indicated that the
chargeable amount from properties was UGX.9,512,935,000 and the tax
collectable was UGX.681,833,797. Audit however observed that the receivables
were disclosed at UGX 142,837,442, implying that the receivables were
understated by UGX.538,996,355. Furthermore, management did not budget
for collectable property tax.
304
For observations and recommendations refer to crosscutting issue paragraph 16
of this report.
Audit revealed that, during the year the Municipal Council paid
UGX.48,753,148 purportedly to settle outstanding utility bills. However, the
payments were not supported by utility bills nor utility ledgers.
The Accounting Officer informed the Committee that the money was spent on
other utilities; like money was utilized for fuel and firewood for road works.
Observations:
Recommendation
The committee recommends that accounting officer and line heads of
departments refunds the monies immediately.
305
Query 5.7 Management of Information Technology
For observations and recommendations refer to crosscutting issue paragraph 7
of this report.
.
Query 5.8 Service Delivery
Observation
The committee noted outright negligence by the stores manager denying the
population service delivery.
Recommendation
The Committee recommends that the stores personnel makes good of the
amount of UGX 3.186million immediately
8. ENTEBBE MUNICIPALITY
306
For observations and recommendations refer to crosscutting issue paragraph 10
of this report.
307
For observations and recommendations refer to crosscutting issue paragraph 4
of this report.
9. MASAKA MUNICIPALITY
Observations
The committee observed that the accounting officer had taken steps to recover
308
the money.
Recommendations
The Committee recommends that the recoveries should continue.
A value for money audit was carried out on infrastructure projects in the
Municipality.
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For observations and recommendations refer to crosscutting issue paragraph 1.1
and 1.2 of this report.
Observations
The Committee was satisfied with vouchers worth UGX. 41,374,987 but
vouchers worth UGX. 15,771,700 were not presented.
Committee Recommendations
The Committee recommends that the Accounting Officer should recover UGX.
15,771,700 immediately.
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by the time of audit.
Observations
The Committee observed that only UGX. 5,556,000 was accounted for. The
administrative study tour worth UGX. 23,000,000 was conducted but the
procurement process for the transport was irregular.
Recommendation
i. The Committee recommends that the balance of UGX. 17,665,000 be
recovered immediately.
ii. The Accounting Officer must adhere to procurement laws in the future.
Observation
The Committee was satisfied with the vouchers.
Recommendation
The Committee recommends that the query be dropped.
311
For observations and recommendations refer to crosscutting issue paragraph 15
of this report.
The Accounting Officer claimed that all missing documents had been retrieved
but did not present them for verification.
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Query 5.8Delayed Completion of Project
Observations
The accountabilities were doubtful.
Recommendations
The Committee upholds the query and therefore recommends the recovery of
UGX 33,288, 580 only from the respective officers.
313
Query 5.2 Missing Payment Vouchers
Expenditure totaling UGX 10,670,139 was not supported by payment
vouchers.
The Accounting Officer submitted the missing vouchers and they were verified
by the auditors.
Observations
The Committee was satisfied with the accountabilities.
Recommendations
The Committee recommends that the query be Dropped.
314
office block at a cost of UGX.77, 262,150. However, the entity used selective
bidding method instead of the open bidding method that was applicable.
315
Query 5.9 Lack of Land Titles
For observations and recommendations refer to crosscutting issue paragraph 6
of this report.
A value for money audit was carried out on infrastructure projects in the
Municipality.
Observations
The Committee was satisfied with the accountabilities but notes laxity on
matters of accountability on the part of the Accounting Officer and his staff.
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Recommendation
The committee recommends that the query be dropped.
Observation
The Committee noted that though some of the evidence given were on
photocopies, were satisfactory.
Recommendation
The committee was satisfied and recommend the query be dropped.
Recommendations
Committee upheld the query because evidence of a contract register was not
presented.
317
Consequently, there is a risk that the land could have been purchased at a
price higher than the market price resulting into loss on the part of the
Municipal Council.
The Committee directed the Accounting Officer to submit the valuation Report.
Observation
The committee observed that purchase of land by districts and municipal
councils was not guided by government valuer and this could be deliberate by
the officers to defraud councils.
A case in point is the purchase of land in the way of the standard gauge
railway project which was also under consideration for compensation by
Government.
Recommendation
The committee recommends that the accounting officer refunds the money
immediately.
318
Query 5.8. Value For Money Findings on Infrastructure Projects
A value for money audit was carried out on infrastructure projects in the
Municipality.
319
Query 5.4 Lack of Information Communication Technology Policy
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of this report.
A value for money audit was carried out on infrastructure projects in the
Municipality.
321
procurement rendering contractual obligations useless.
ii. The committee noted the Mbarara Municipal Council violated
known standards to give contracts for revenue collection not to take
more than one year however in the FY 2014/15, council committed
collection of revenue to a company for 5 years without review. The
committee was shocked to learn that had been the nature of MC
iii. The committee also noted that there was a racket of officers
dealing with other officers in Government to protect them in case of any
action.
iv. The committee also noted that in an attempt to review the
contract, it was flatly rejected by the contractor and when a substantive
accounting officer returned to office, he just signed the contract without
any due diligence
v. The officers responsible in this matter are the town clerk, the
treasure, procurement officer, revenue officer and assistant town clerk,
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For observations and recommendations refer to crosscutting issue paragraph 3.3
of this report.
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However, only 67 (59%) positions were filled leaving 47 (41%) posts vacant.
The Accounting Officer explained that Council had embarked on forming a risk
management committee that would formulate the policy.
The Committee was informed that a Committee was formed and are currently
making a draft.
Observation
The Committee was satisfied with the progress.
Recommendations
The Committee recommends that the query be dropped.
A value for money audit was carried out on infrastructure projects in the
Municipality.
324
368,793,306 (79%) was collected leading to under collection of UGX.
96,126,194 (21%).
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The Municipal Council had an approved staff establishment of 215 positions.
However, only 120 (56%) positions were filled leaving 95 (44%) posts vacant.
The Committee was informed that the Master Plan has now been approved and
it is on display.
Observation
The Committee observed that the master plan must fit in Ugandas national
development plan.
Recommendation
The Committee recommends that the query be dropped.
326
18. MOROTO MUNICIPALITY
Observations
The Accountabilities were falsified.
Recommendation
The Committee directed the Accounting Officer to recover all the
UGX.2,560,607
327
Query 5.4 Failure to prepare contract implementation plans
The Committee was informed that the Contract Implementation plan is now
being prepared.
The Accounting Officer explained that the money was used to settle creditors
who had mounted pressure on the Council and will be refunded.
The Committee was informed that the funds have been recovered and evidence
was submitted.
Observation
The Committee was satisfied with the recovery.
Recommendation
The Committee recommends that the query be dropped.
The Municipal Council failed to dispose of a number of assets that had been
recommended for disposal by the board of survey report of 2013/2014.
328
Consequently, some of the vehicles have been vandalized.
There is a risk that the condition of the items might deteriorate further.
A value for money audit was carried out on infrastructure projects in the
Municipality.
The Accounting Officer explained that Government did not release some funds
for projects like MATIP and donations from NEMA and Baylor.
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Observation
The Committee observed that the query is not the fault of the Municipality.
Recommendation
The Committee recommends that the query be dropped.
A review of the Bank of Uganda Salary Statement revealed that a total of UGX
8,468,015 was paid to various staff without supporting documents.
The Committee was informed that it arose from a systems error where the
Ministry of Finance had a different template from the one submitted by the
Municipality.
330
Observations
The Committee was not satisfied with the accountabilities.
Recommendations
The Committee directed the Accounting Officer to recover the money
amounting UGX 4,358,000.
331
Query 5.9 Grounded Motor Vehicles.
Audit inspection noted that some of the council vehicles are grounded at the
council yard without any hope of being repaired.
A value for money audit was carried out on infrastructure projects in the
Municipality.
332
Query 5.2 Non remittance of local Revenue:
The Committee was informed that the district administration had failed
to remit a sum of money constituting shared local revenue to the lower
local governments.
The Accounting Officer informed the Committee that some funds had
been remitted and more was due to be remitted.
Observations
The Committee was satisfied with the explanation.
Recommendations:
The Committee advised the Accounting Officer to remit the remaining
UGX. 29,000,000/= to the lower councils so as to improve on the service
delivery at those levels.
Recommendation
The Committee upheld the query.
333
For observations and recommendations refer to crosscutting issue paragraph 12
of this report.
Recommendation
The Committee upheld the query
334
A sum of UGX 26,084,928 remained unaccounted for at the end of the
Financial Year.
Observation
The Committee upheld the query because it was not satisfied with the
accountabilities.
Recommendation
The Committee recommends that the Accounting Officer recovers the funds
within one month.
Observation
The committee was satisfied with the documentation.
Recommendation
The Committee recommends that the query be dropped.
335
Query 5.4 Non-Compliance with statutory Obligations
Withholding tax amounting to UGX.17,828,297had not been remitted to URA
by close of the financial year.
336
For observations and recommendations refer to crosscutting issue paragraph 16
of this report.
The Committee was presented with the accountabilities. The Accounting Officer
noted that accountability issues arise from laxity and the people have been
cautioned.
Observations
The Committee was not satisfied with the accountability presented by the
accounting officer.
Recommendation
The committee recommends that the total sum of UGX 18,867,000 be
recovered from the officers by the accounting officer immediately.
337
For observations and recommendations refer to crosscutting issue paragraph 4
of this report.
The value for money audit carried out on infrastructure projects in the
Municipality were carried out.
6.0 Conclusion
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