OFFICE OF THE AUDITOR GENERAL THE REPUBLIC OF UGANDA€¦ · Kadama-kibuku-buseta 21.2 21.2 Kibuku-saala-kirika 16.5 16.5 Tirinyi-bumiza-bulangira 10.3 10.3 kadama-kabweri-kakutu

OFFICE OF THE AUDITOR GENERAL

THE REPUBLIC OF UGANDA

REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS

OF KIBUKU DISTRICT LOCAL GOVERNMENT

FOR THE YEAR ENDED 30TH JUNE 2018

OFFICE OF THE AUDITOR GENERAL

UGANDA

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Table of Contents

Opinion .................................................................................................................................................... 1

Key Audit Matters ................................................................................................................................... 2

1.0 Performance of Youth Livelihood Programme ........................................................................... 2

1.1 Funding of the Programme ......................................................................................................... 2

1.2 Non-compliance with the Repayment Schedule ........................................................................ 3

1.3 Transfer of recovered funds to the recovery account in BOU. ................................................... 3

1.4 Inspection of Performance of Youth projects ............................................................................. 3

a) Nabiswa Youth Unisex Hair Dressing Project ....................................................................... 3

b) Kadama Township Bakery ....................................................................................................... 3

2.0 Implementation of the Uganda Road Fund ................................................................................ 4

Status of implementation ....................................................................................................................... 5

a) Routine manual maintenance ......................................................................................................... 5

i) Kadama-molokochomo-kaderuna road .......................................................................................... 6

b) Routine mechanized maintenance ................................................................................................. 6

i) Kabweri swamp, kadama- kabweri- kakutu road ........................................................................... 6

c) Periodic maintenance ..................................................................................................................... 7

Emphasis of matter ................................................................................................................................. 7

3.0 Pension arrears ........................................................................................................................... 8

Other Matter ........................................................................................................................................... 8

4.0 Double transfer of UWEP funds .................................................................................................. 8

5.0 Staffing ........................................................................................................................................ 8

5.1 Staffing Gaps ............................................................................................................................... 8

5.2 Irregular Payment of Salaries to Retired Staff ............................................................................ 9

Other Information ................................................................................................................................... 9

Management Responsibilities for the Financial Statements ................................................................ 10

Auditor General’s Responsibilities for the audit of the Financial Statements ...................................... 10

Other Reporting Responsibilities .......................................................................................................... 12

REPORT ON THE AUDIT OF COMPLIANCE WITH LEGISLATION ............................................................. 12

6.0 Natural Resources ..................................................................................................................... 12

6.1 Lack of Certificate of Ownership of Wetlands .......................................................................... 12

6.2 Unlicensed Activities in Wet Lands ........................................................................................... 13

6.3 Mismanagement of the District’s Natural Resources ............................................................... 13

7.0 Asset Management ................................................................................................................... 14

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7.1 Lack of Land Titles ..................................................................................................................... 14

8.0 STATUS OF BASIC MEDICAL EQUIPMENT.................................................................................. 14

8.1 Poor condition of medical equipment ...................................................................................... 14

8.2 Lack of skilled personnel to manage medical equipment ........................................................ 15

8.3 Non-disposal of obsolete equipment ....................................................................................... 15

9.0 Procurements and Works ......................................................................................................... 16

9.1 Slitting, drilling and installation of bore holes- ......................................................................... 16

10.0 Capitation Grant ........................................................................................................................ 17

10.1 Failure to meet minimum required Standards of UPE Schools ................................................ 17

11.0 Governance and Oversight ....................................................................................................... 17

11.1 Evaluation of Internal Audit function........................................................................................ 17

Appendices ............................................................................................................................................ 18

Appendix 1: The YLP Repayment Schedule ........................................................................................... 18

Appendix 2: Irregular Payment of Salaries to Retired Staff .................................................................. 21

Appendix 3: Status of basic medical equipment ................................................................................... 22

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LIST OF ACRONYMS

GOU Government of Uganda

IESBA International Ethics Standards Board for Accountants Code of Ethics for Professional

Accountants

INTOSAI International Organization of Supreme Audit Institutions

ISSA International Standards on Auditing

MoGLSD Ministry of Gender, Labour and Social Development

YLP Youth Livelihood Programme

YIG Youth Interest Group

PFMA Public Finance Management Act, 2015

TAI Treasury Accounting Instructions

UGX Uganda Shillings

LGFAR Local Government Financial and Accounting regulations

F/Y Financial Year

NEA National Environment Act

NAA National Audit Act

UWEP Uganda Women Entrepreneurship Programme

ULA Uganda Land Act

LGA Local Governments Act

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REPORT OF THE AUDITOR GENERAL ON THE AUDIT OF FINANCIAL STATEMENTS

OF KIBUKU DISTRICT LOCAL GOVERNMENT

FOR THE YEAR ENDED 30TH JUNE, 2018

THE RT. HON. SPEAKER OF PARLIAMENT

Opinion

I have audited the accompanying financial statements of Kibuku District Local Government

which comprise the statement of Financial Position as at 30th June 2018, and the Statement

of Financial Performance, Statement of Changes in Equity and Statement of Cash Flows

together with other accompanying statements for the year then ended, and notes to the

financial statements, including a summary of significant accounting policies.

In my opinion, the financial statements of Kibuku District Local Government for the year

ended 30th June 2018 are prepared, in all material respects, in accordance with Section 51

of the Public Finance Management, 2015 and the Local Governments Financial and

Accounting Manual, 2007.

Basis for Opinion

I conducted my audit in accordance with International Standards of Supreme Audit Institutions

(ISSAIs). My responsibilities under those standards are further described in the Auditor’s

Responsibilities for the Audit of the Financial Statements section of my report. I am

independent of the District in accordance with the Constitution of the Republic of Uganda

(1995) as amended, the National Audit Act, 2008, the International Organization of Supreme

Audit Institutions (INTOSAI) Code of Ethics, the International Ethics Standards Board for

Accountants Code of Ethics for Professional Accountants (Parts A and B) (IESBA Code), and

other independence requirements applicable to performing audits of Financial Statements in

Uganda. I have fulfilled my other ethical responsibilities in accordance with the IESBA Code,

and in accordance with other ethical requirements applicable to performing audits in Uganda. I

believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis

for my opinion.

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Key Audit Matters

Key audit matters are those matters that, in my professional judgment, were of most

significance in my audit of the financial statements of the current period. These matters

were addressed in the context of my audit of the financial statements taken as a whole, and

in forming my opinion thereon, and I do not provide a separate opinion on these matters; I

have determined the matters described below as key audit matters to be communicated in

my report:

1.0 Performance of Youth Livelihood Programme

The Youth Livelihood Programme (YLP) is a Government Programme being imple-

mented under the Ministry of Gender, Labour and Social Development (MoGLSD).

The programme, which started in the financial year 2013-2014, was to respond to

the existing challenge of unemployment among the Youths.

The programme, which is implemented through the District provides support to the

vulnerable youth in form of revolving funds for skills development projects and

income generating activities initiated by youth groups.

The audit focused on an amount of UGX.225,663,659 disbursed in the Financial Year

2014/2015 whose recovery period of three years had expired by 30th June 2018. The

audit procedures performed focused on ascertaining the following;

Whether all funds budgeted for YLP during the period under review were actually

released and used only for the programme.

Whether all funds advanced to the youth groups were repaid in accordance with

the agreed repayment schedule and to establish reasons for failure or delays to

repay the funds.

Whether all funds recovered during the period under review were transferred to

the revolving fund account in Bank of Uganda to be disbursed to other Youth

Livelihood Groups (YLGs) in accordance with the revolving funding model and

Whether on a sample basis the funded projects do exist and are operating.

I made the following observations;

1.1 Funding of the Programme

A review of the approved budget for the YLP programme revealed that the District

had budgeted for a total amount of UGX.225,663,659 for the financial year

2014/2015 and the budgeted funds were released. Consequently, all the projected

projects/youth interest groups were funded.

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1.2 Non-compliance with the Repayment Schedule

It was observed that whereas the groups funded in 2014/2015 were expected to

have repaid a total amount of UGX.225,663,659 (Interest inclusive) by close of the

financial year 2017/2018, only UGX.41,382,400 was collected leaving a balance of

UGX.193,495,322 (18.3%) outstanding as shown in appendix 1.

I further noted that 8 out of the 38 groups that benefitted during that year had not

made any repayments so far. Failure to repay in a timely manner implies that other

eligible groups were unable to access the funds since this is a revolving fund. The

Accounting Officer attributed this matter to misappropriation of project funds by the

youth groups and that they have been handed over to police for investigation.

I advised the Accounting Officer to ensure that the matter is followed up to its logical

conclusion.

1.3 Transfer of recovered funds to the recovery account in BOU.

A review of the bank statements of YLP collection accounts revealed that the

collected amount of UGX.41,382,400 had been transferred to the National Revolving

Fund Collection Account by the end of the financial year 2017/18.

1.4 Inspection of Performance of Youth projects

Physical inspection was carried out on two selected projects namely Nabiswa Youth

Unisex Hair Dressing Project and Kadama Township Bakery (2014/2015) to ascertain

whether they were in existence and executed in accordance with the operational

guidelines.

The following observations were made;

a) Nabiswa Youth Unisex Hair Dressing Project

The group received UGX.7,070,004, however, it was observed that the ladies’ section

had closed and only men’s section was operating rendering the equipment idle.

b) Kadama Township Bakery

The group received UGX.11,200,000. However, it was observed that no repayment

had so far been made. The treasurer had disappeared with the money and the

project was abandoned.

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2.0 Implementation of the Uganda Road Fund

Section 45 (3) of the Public Finance Management Act, 2015 states that “An

Accounting Officer shall enter into an annual budget performance contract with the

Secretary to the Treasury which shall bind the Accounting Officer to deliver on the

activities in the work plan of the vote for a Financial year, submitted under section

13 (15) of the said Act”.

Regulation 18(3) of the Local Governments Financial and Accounting regulations

2007 requires budget estimates to be based on objectives to be achieved for the

financial year and during implementation, effort to be made to achieve the agreed

objectives or targets as per the programme of Council.

It has been observed over years that planned and budgeted for activities of a

number of Local Governments are not implemented thereby affecting service

delivery.

During the overall office wide planning, I identified risks such as inadequate release

of funds and failure to undertake budget monitoring and supervision that are likely to

be the causes of failure to implement the planned activities under Uganda road fund.

The focus was put on the planned major outputs under Uganda Road Fund which

greatly impact on service delivery in the Local Governments.

Consequently, I developed specific audit procedures which included ascertaining

whether;

The budgeted URF releases for Local Governments for the year under review were

actually received ;

The planned URF outputs were achieved;

The monitoring and supervision was carried out by reviewing reports to assess

performance.

Based on the procedures performed, the following observations were made;

During the year under review, the district planned to undertake routine manual

maintenance, routine mechanized maintenance, periodic maintenance and

emergency activities on several district roads using Road Gangs and the Force

Account mechanism respectively. The total budget for the planned activities

amounted to UGX.237,499,824. However, the district received UGX.212,497,604

resulting into a deficit of UGX.25,002,220. The excess/deficit constituted 11% of the

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budgeted amount. In his response, the Accounting Officer explained fewer funds

were received than expected.

The Accounting Officer is advised to continue lobbying the Government for sufficient

funding.

Status of implementation

A review of planned outputs against actual performance revealed that planned

outputs were not fully achieved as shown in the table below;

ROAD PLANNED

DIST (KM)

ACTUAL DIST

DONE ( KM)

Routine manual maintenance

Kadama-kibuku-buseta 21.2 21.2

Kibuku-saala-kirika 16.5 16.5

Tirinyi-bumiza-bulangira 10.3 10.3

kadama-kabweri-kakutu 13.4 13.4

Kadama-molokochomo-kaderuna 7.4 7.4

Midiri-buseta 3.8 3.8

72.6 72.6

Routine mechanized maintenance

Kadama-kabweri-kakutu 13.4 13.4

Kadama-molokochomo-kaderuna 7.4 7.4

Midiri-buseta 3.8 3.8

24.6 24.6

a) Routine manual maintenance

A total of 72.6 kms at an estimated cost of UGX.176,205,642 was planned to be

undertaken as shown in the table below;

Activity Planned output

Amount Budgeted

(UGX))

CULVERT LINES 4 88,632,443

ROADS

Kadama-kibuku-buseta 21.2 km 25,572,339

Kibuku-saala-kirika 16.5 km km 19,903,000

Tirinyi-bumiza-bulangira 10.3 km 12,424,297

kadama-kabweri-kakutu 13.4 km 16,163,648

Kadama-molokochomo-

kaderuna 7.4 km 8,926,194

Midiri-buseta 3.8 km 4,583,721

72.6 176,205,642

However, audit revealed that the projected 72.6kms i.e. 100% were actually

undertaken at a cost of UGX.151,332,453 i.e. 86% of the budget; thus

UGX.24,873,189 i.e. 14% saving on the budget.

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On inspection, it was observed that;

i) Kadama-molokochomo-kaderuna road

An amount of UGX.8,191,000 was incurred on road works of Kadama-molokochomo-

kaderuna road for 7.4km. The works involved reshaping, graveling and stone

pitching of kaigongo swamp along the same road.

Inspection of the works however revealed that there were no side drains, poorly

compacted murram along various culvert lines, deep port holes already developing

causing water logging in the road as shown in the pictures below;

This could be attributed to poor drainage. The Accounting Officer explained that the

roads in question were maintained only that the state in which they were at was as a

result of the heavy rains which destroyed the roads forming potholes on the carriage

way.

I advised the Accounting Officer to ensure that all roads in poor state are scheduled

for routine maintainance to ensure equal distribution of services in the whole district.

b) Routine mechanized maintenance

A total of 24.6kms at an estimated cost of UGX.48,144,340 was planned to be

undertaken. Audit revealed that the 24.6kms i.e. 100% as budgeted were fully

implemented within the projected cost. There was no shortfall.

ROAD Planned output (KM) Amount spent

Kadama-kabweri-kakutu 13.4 23,081,966

Kadama-molokochomo-kaderuna 7.4 16,450,876

Midiri-buseta 3.8 8,611,498

24.6 48,144,340

On inspection, it was observed that;

i) Kabweri swamp, kadama- kabweri- kakutu road

An amount of UGX.23,470,000 was incurred on road works of Kabweri swamp,

kadama- kabweri- kakutu road for 13km. These included reshaping, graveling and

spot gravelling, head walls and culvert installation.

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Audit Inspection revealed that there were no side drains, poorly compacted marram

being washed away

Deep pot-holes already developing causing water logging in the road as shown in the

pictures below;

The Accounting Officer explained that the roads in question were maintained only

that the state in which they were at was as a result of the heavy rains which

destroyed the roads forming potholes on the carriage way.

I advised the Accounting Officer to ensure that all roads in poor state should be

scheduled for routine maintainance to ensure equal distribution of services in the

whole district.

c) Periodic maintenance

A total of 10.5kms at an estimated cost of UGX.13,149,842 was planned to be

undertaken. However, audit revealed that the projected 10.5kms were actually

undertaken at a cost of UGX.13,020,811.

ROAD

Planned output

(Kms) Amount spent (UGX.)

wooli-namuyangu-kiyalyo 5 7,329,031

deke-likitoni-nankokoli-nabuli 5.5 5,820,811

10.5 13,149,842

The Accounting Officer explained that the funds were properly utilized and output

achieved.

Emphasis of matter

Without qualifying my opinion, I draw attention to the following matter disclosed in

the Statement of Outstanding Commitments on Page 33 in the financial statements.

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3.0 Pension arrears

I noted that the district had not paid UGX.289,988,267 in respect to salary, pension

and gratuity Failure to make timely payments is contrary to the Pensions Act and

negatively affects the welfare of the pensioners.

Other Matter

In addition to the matters raised above, I consider it necessary to communicate the

following matters other than those presented or disclosed in the financial statements.

4.0 Double transfer of UWEP funds

It was observed that on 9th May 2018 the District received UGX.167,027,481 relating

to UWEP from Ministry of Gender, Labour and Social Development (MGLSD). The

MGLSD in a letter dated 9th May, 2018 requested the district to return

UGX.86,128.000 that was purportedly sent erroneously. However, there was no

acknowledgement receipt from the MGLSD regarding the funds. The Accounting

Officer explained that there was double transfer of UWEP funds and that the excess

funds were returned to MGLSD Account.

I advised the Accounting Officer to follow up the matter and obtain the necessary

acknowledgement.

5.0 Staffing

5.1 Staffing Gaps

The district council has an approved structure of 1,862 staff. However, out of the

approved positions, only 1,347 positions were filled leaving 515 vacant representing

28% of the approved structure as shown in a table below;

DEPARTMENT APPROVED FILLED VACANT %VAC

Traditional Staff 259 149 110 42%

Extension workers 80 16 64 80%

Town councils 290 24 266 92%

Health staff 247 188 59 24%

Education staff primary 986 970 16 2%

TOTAL 1862 1347 515 28%

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Understaffing overstretches the available staff beyond their capacity, creates job-

related stress to the fewer staff and negatively affects the level of public service

delivery to the community. This was attributed to limited wage bill and a ban on

recruitment by the Ministry of Public Service.

I advised the Accounting Officer to continue engaging the Ministries of Public

Service, Local Government and Finance Planning and Economic Development to

address the challenge.

5.2 Irregular Payment of Salaries to Retired Staff

Section B-a (12) of the Public Service Standing Orders, 2010 requires that the

payment to public officers be stopped immediately the officer ceases providing his

services to the Government under whatsoever conditions including death. It was

observed that UGX.21,289,117 was irregularly paid to the retired staff as shown in

appendix 2. This indicates weak controls in the payroll management system and

may lead to loss of public funds. The Accounting Officer explained that council made

efforts to delete the names but the system continued reflecting them until when they

were finally deleted.

I advised the Accounting Officer to have recoveries made and to ensure that

adequate controls are implemented to avoid such lapses.

Other Information

The Accounting Officer is responsible for the other information. The other

information comprises the statement of responsibilities of the Accounting Officer and

the commentaries by the Head of Accounts and the Accounting Officer, and other

supplementary information. The other information does not include the financial

statements and my auditors’ report thereon. My opinion on the financial statements

does not cover the other information and I do not express an audit opinion or any

form of assurance conclusion thereon.

In connection with my audit of the financial statements, my responsibility is to read

the other information and, in doing so, consider whether the other information is

materially consistent with the financial statements or my knowledge obtained in the

audit, or otherwise appears to be materially misstated. If, based on the work I have

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performed, I conclude that there is a material misstatement of this other information,

I am required to report that fact. I have nothing to report in this regard.

Management Responsibilities for the Financial Statements

Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended)

and Section 45 of the Public Finance Management Act, 2015, the Accounting Officer

is accountable to Parliament for the funds and resources of Kibuku District Local

Government.

The Accounting Officer is also responsible for the preparation of financial statements

in accordance with the requirements of the Local Governments Financial and

Accounting Manual, 2007 and the Public Finance Management Act 2015 and for such

internal control as management determines necessary to enable the preparation of

financial statements that are free from material misstatement whether due to fraud

or error.

In preparing the financial statements, the Accounting Officer is responsible for

assessing the District’s ability to continue as a going concern, disclosing, as

applicable, matters related to going concern and using the going concern basis of

accounting, unless the unless the Accounting Officer has a realistic alternative to the

contrary.

The Accounting Officer is responsible for overseeing the District’s financial reporting

process.

Auditor General’s Responsibilities for the audit of the Financial Statements

My objectives are to obtain reasonable assurance about whether the financial

statements as a whole are free from material misstatement, whether due to fraud or

error, and to issue an auditor’s report that includes my opinion. Reasonable

assurance is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with ISSAIs will always detect a material misstatement,

when it exists. Misstatements can arise from fraud or error and are considered

material if, individually or in aggregate, they could reasonably be expected to

influence the economic decisions of users, taken on the basis of these financial

statements.

As part of an audit in accordance with ISSAIs, I exercise professional judgement and

maintain professional scepticism throughout the audit. I also:-

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Identify and assess the risks of material misstatement of the financial statements,

whether due to fraud or error, design and perform audit procedures responsive to

those risks, and obtain audit evidence that is sufficient and appropriate to provide a

basis for my opinion. The risk of not detecting a material misstatement resulting

from fraud is higher than for one resulting from error, as fraud may involve collusion,

forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design

audit procedures that are appropriate in the circumstances, but not for the purpose

of expressing an opinion on the effectiveness of the entity’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by the management.

Conclude on the appropriateness of management’s use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material

uncertainty exists related to events or conditions that may cast significant doubt on

the entity’s ability to continue as a going concern. If I conclude that a material

uncertainty exists, I am required to draw attention in my auditor’s report to the

related disclosures in the financial statements or, if such disclosures are inadequate,

to modify my opinion. My conclusions are based on the audit evidence obtained up

to the date of my auditor’s report. However, future events or conditions may cause

the entity to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements,

including the disclosures, and whether the financial statements represent the

underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Accounting Officer regarding, among other matters, the planned

scope and timing of the audit and significant audit findings, including any significant

deficiencies in internal control that I identify during my audit.

I also provide the Accounting Officer with a statement that I have complied with relevant

ethical requirements regarding independence, and to communicate with them all

relationships and other matters that may reasonably be thought to bear on my

independence, and where applicable, related safeguards.

From the matters communicated with the Accounting Officer, I determine those matters that

were of most significance in the audit of the financial statements of the current period and

are therefore the key audit matters. I describe these matters in my auditor’s report unless

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law or regulation precludes public disclosure about the matter or when, in extremely rare

circumstances, I determine that a matter should not be communicated in my report because

the adverse consequences of doing so would reasonably be expected to outweigh the public

interest benefits of such communication.

Other Reporting Responsibilities

In accordance with Section 19 (1) of the National Audit Act, 2008, I report to you, based on

my work described on the audit of Financial Statements, that; except for the matters raised

in compliance with legislation section below, and whose effect has been considered in

forming my opinion on financial statements, the activities, financial transactions and

information reflected in the financial statements that have come to my notice during the

audit, are in all material respects, in compliance with the authorities which govern them.

REPORT ON THE AUDIT OF COMPLIANCE WITH LEGISLATION

The material findings in respect of the compliance criteria for the applicable subject matters

are as follows;

6.0 Natural Resources

A review of management of natural resources in form of land, forest reserves and

wetlands in the district during the audit of the financial year 2017/2018 revealed the

following shortcomings:

6.1 Lack of Certificate of Ownership of Wetlands

Section 45 (1) of the Uganda Land Act, 1998 (as emended) requires a government

or local government to hold in trust for the people and protect, wetlands among

other natural resources for the common good of the citizens of Uganda.

Documentation review revealed that the District is responsible for various wetlands

including; River Mpologoma, Saala, Limoto and Gololo Wetlands. However, I was

not availed with certificates of ownership of the wetlands for verification.

Lack of legal ownership of the wet lands exposes them to the risks of encroachment

and misuse resulting into environmental degradation. The Accounting Officer

explained that the process of acquiring titles was hampered by financial constraints.

I advised the Accounting Officer to ensure that the wetlands are surveyed and issued

with titles in the names of the District.

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6.2 Unlicensed Activities in Wet Lands

According to Section 37(3) of the National Environment Act, the authority may, in

consultation with the lead agency and the district environment committee, declare

any wetland to be a protected wetland, thereby excluding or limiting human activities

in that wetland while Sec.36 provides for restrictions on the use of wetlands and

requires a person to obtain written approval from the authority given in consultation

with the lead agency.

Audit inspection revealed that there were unlicenced activities carried out on various

wetlands and forests in form of cultivations, constructions, and brick making

deforestation, sand mining, waste dumping and massive encroachment. The

continued illegal practices in the wetlands will have adverse effects on the

environment. In his response, the Accounting Officer explained that the district has

started the process of forest and wetland demarcation, and the environment

protection force has so far evicted over 600 farmers who had encroached on limoto

wetland and the wetland is fully restored.

I advised the Accounting Officer to initiate measures to ensure that activities in the

wetlands are lawful.

6.3 Mismanagement of the District’s Natural Resources

The Second Schedule part 2 of the Local Governments Act prescribes the mandate of

Districts. Under section 15, the functions and services for which District Councils are

responsible include; assisting the Government to preserve the environment through

protection of forests, wetlands, lake shores streams and prevention of environmental

degradation.

Section 44 of the Land Act Chapter 227- Control of environmentally sensitive areas,

requires the Government or a Local Government to hold in trust for the people and

protect natural lakes, rivers, ground water, natural ponds, natural streams, wetlands,

forest reserves, national parks and any other land reserved for ecological and tourist

purposes for the common good of the citizens of Uganda.

However, review of documents, records and inspections of the district natural

resources including; forests, wetlands both permanent and seasonal, streams, rivers

and lakes revealed the following issues;

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The district has four forest reserves that include Limoto Local Forest Reserve,

Goligoli Local Forest Reserve, Kabuna Local Forest Reserve and Saala Central Forest

Reserve. Inspection revealed that these have suffered encroachment by local people

and their boundaries are not clearly demarcated.

The main wetlands included River mpologoma, Saala, limoto and Gololo Wetlands.

Inspection revealed illegal activities like crop cultivation, rice farming, sand mining,

charcoal burning and brick making. It was further observed that wetland users were

not licensed and there were no clear boundaries or demarcation of the wetland.

The encroachments coupled with inadequate monitoring and supervision caused

adverse impacts, such as a decline in water quality, loss of habitat (both aquatic and

terrestrial), disruption of equilibrium (or naturally stable) conditions, loss of flood

attenuation, or reduction of ecological processes.

I advised the Accounting Officer to ensure that natural resources are managed in a

sustainable manner.

7.0 Asset Management

7.1 Lack of Land Titles

Regulation 58(4) of LGFAR, 2007 requires all properties and assets of local

governments to be registered and titles issued. However, it was observed that the

Council does not have a land title for the land where its headquarters are located.

Consequently, Council risks losing this land to the encroachers.

The Accounting Officer explained that the Land in question was reported to Inspector

General of Government for intervention and they are awaiting a report.

I advised the Accounting Officer to ensure that all council land is titled and that

illegal occupants vacate the land.

8.0 STATUS OF BASIC MEDICAL EQUIPMENT

A review of the status of the basic medical equipment at Kibuku HCIV revealed the

following issues;

8.1 Poor condition of medical equipment

Section 5.17 of the Service standards & Service delivery standards for the Health

Sector, 2016 requires that medical equipment is available and properly maintained to

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meet the needs of the patient population. However, a review of the department

reports and audit inspection revealed that a number of medical equipment is

obsolete, faulty and not in fair condition as shown appendix 3. Consequently,

patients are referred to distant health facilities to receive the same services putting

their lives at risk. This was attributed to inadequate funding of the health units and

lack of replacement plan by the Health Centre.

I advised the accounting officer to liaise with the Ministry of Health to ensure that

the matter is addressed.

8.2 Lack of skilled personnel to manage medical equipment

Health Sector Service Standards & Service Delivery Standards, 2016 Section 5.17.2

requires a health facility to ensure that a designated person supervises the

management of medical equipment in the health facility while Section 2.6.1 states

that a suitably qualified person is designated to manage storage, distribution and

control of equipment and supplies.

It was observed that Kibuku health centre IV lacked skilled staff to operate and

manage some of the medical equipment that are supposed to be used by an

Ophthalmiscit. The machines like Himoque and Chemistry analyser are also not in

use due to lack of reagents. Management attributed this to funding gaps and staff

ceiling which have limited the districts’ ability to recruit and fill the vacant posts as

well as sponsor medical staff to attain the required skills. Lack of skilled staff

required to handle and operate the specialist medical equipment leads to poor

diagnosis and increased costs due to poor handling of equipment.

The Accounting Officer is advised to engage the Ministry of Health for the necessary

support to address the above shortcomings in order to improve service delivery.

8.3 Non-disposal of obsolete equipment

Section 5.17.8 of the Health Sector Service standards & Service delivery standards,

2016 requires that, there is a disposal plan for medical equipment in accordance with

legislation. It was observed that, several equipment including other assets at the

Health Centre that were obsolete were piled in the store and there was no evidence

16

that the items would be disposed of in the near future as shown in Appendix 3.

This was attributed to lack of a disposal plan at the district for such obsolete items.

Non-disposal of obsolete equipment may lead to health hazards. According to the

Accounting Officer, the cost of repairing the equipment in question is more that 10%

of the cost hence will be recommended for disposal.

The matter requires urgent attention by the Accounting Officer.

9.0 Procurements and Works

9.1 Slitting, drilling and installation of bore holes-

On 4th September 2017 the district awarded a contract for drilling and installation of

8 bore holes under contract kibu/605/wrks/17-18/00004 worth UGX.220,471,200.

Inspection on 22.08.2018 at Namuyomba, Bumiza and Kituti revealed that the

boreholes are always breaking down forcing the community to undertake regular

repairs, with some having no soak pits

The water flow on Bumiza takes approximately a minute to start irrespective of the

pressure exerted on it.

Water in the soak pit is not flowing as required as shown in the pictures below;

The Accounting Officer explained that the frequent breakdown was due to miss

handling of the boreholes by the users most especially in areas where there’s high

influx of children. After construction, the responsibility of caring and handling minor

maintenance is in the hands of the users. He further indicated that it is only the

major repairs that are reported to the sector, which thereafter plans for such need.

He also indicated that the water sources are still in the defects liability period, the

contractor was notified on the need to come and rectify on the defects.

I await further action to address the matter.

17

10.0 Capitation Grant

10.1 Failure to meet minimum required Standards of UPE Schools

Paragraph 2.2.1 of the revised Local Governments Management and Service Delivery

(LGMSD) operational manual provides minimum service delivery package for a

primary school. Inspection of various UPE schools revealed that there was shortage

of teachers, inadequate and inferior latrine facilities, inadequate desks and

classrooms among others. These conditions negatively affect the academic

performance of the pupils.

The Accounting Officer admitted the challenges faced by UPE schools, but attributed

it to inadequate funding. He indicated that the district had set aside additional

funding from the DDEG allocation and that he had also encouraged Sub-counties to

allocate resources towards infrastructure improvement.

I await further action to address the matter.

11.0 Governance and Oversight

11.1 Evaluation of Internal Audit function

Section 90 of the Local Governments Act requires every district council to provide for

an Internal Audit department. However, a review of the function of internal audit

department revealed that the department is understaffed with only one (1) staff out

of the approved 2 staff. Lack of sufficient staff hampers the ability of the department

to fulfil its mandate of continuously checking and ensuring the internal controls are in

place and working effectively. The Accounting Officer explained that an internal

advert was made to fill the position of District Internal Auditor. The few applicants

received did not qualify to fill the position. Therefore, the District Service Commission

decided that the position be re-advertised.

I advised the Accounting Officer to ensure that the internal audit department is

adequately staffed for effective service delivery.

John F.S. Muwanga

AUDITOR GENERAL

KAMPALA

7th December, 2018

18

Appendices

Appendix 1: The YLP Repayment Schedule

Project name

Date of

disbursed

Amount

disbursed

Repayment

date

RECOVERABLE

AMOUNT

5% services fee

where

applicable Amount Recovered Amount due Remarks

Bubera Youth Hair Dressing

Project 29.06.2015 6,000,000 30.10.2015 4,935,000 235,000 1,300,000 4,700,000

recoveries still

on going

Bubulanga A Produce Buying and

Selling Project 17.06.2015 4,076,000 30.09.2015 4,279,800 203,800 4,076,000 -do-

Buganza Youth Dairy Heifer

Rearing Project 16.06.2015 6,780,000 30.03.2016 6,856,500 326,500 250,000 6,530,000

-do-

Buganza Youth Ground Nuts

Farming Project 16.06.2015 6,635,000 01.03.2016 6,126,750 291,750 800,000 5,835,000

-do-

Bugwere Youth Goat Rearing

Project 17.06.2015 5,450,000 03.04.2016 1,066,800 50,800 4,434,000 1,016,000

-do-

Bukachera Youth Brick Making

Project 17.06.2015 5,008,000 28.02.2016 2,811,900 133,900 2,330,000 2,678,000

-do-

Bukatikoko Youth Dairy Cattle

Project 17.06.2015 9,788,000 30.04.2016 9,017,400 429,400 1,200,000 8,588,000

-do-

Bulalaka Youth Produce Buying

and Selling Project 16.06.2015 5,388,500 30.11.2015 4,439,925 211,425 1,160,000 4,228,500

-do-

Bulyampiti Youth Produce Buying


-do-

Bumiza Youth Bakery Project 16.06.2015 7,749,370 28.02.2016 7,842,839 373,469 280,000 7,469,370

-do-

Buseta I Youth Metal Fabrication

Project 29.06.2015 8,500,000 31.01.2016 8,347,500 397,500 550,000 7,950,000

-do-

Busiginyi Produce Buying and

Selling Project 16.06.2015 4,658,200 30.10.2015 1,846,110 87,910 2,900,000 1,758,200

-do-

19

Project name

Date of

disbursed

Amount

disbursed

Repayment

date

RECOVERABLE

AMOUNT

5% services fee

where


Buyamba Youth Produce Buying

& Selling 16.06.2015 5,000,000 30.12.2015 5,040,000 240,000 200,000 4,800,000

-do-

Bwibere Youth Improved Piggery

Rearing Project 16.06.2015 6,780,000 30.03.2016 5,869,500 279,500 1,190,000 5,590,000

-do-

Dokya Youth Improved Goat

Rearing Project 16.06.2015 6,100,000 31.12.2015 4,987,500 237,500 1,350,000 4,750,000

-do-

Kabusule B Youth Dairy Heifer

Rearing Project 16.06.2015 6,780,000 30.02.2016 7,119,000 339,000 6,780,000

-do-

Kadama Youth Produce Buying &

Selling 6,500,000 5,985,000 285,000 800,000 5,700,000

-do-

Kadoto Youth Produce Buying

and Selling Project 16.06.2015 5,000,000 23.06.2015 5,250,000 250,000 5,000,000

-do-

Kagumu Twekolele Youth

Tailoring Project 16.06.2015 6,751,175 05.01.2016 6,511,234 310,059 550,000 6,201,175

-do-

Kakunyumunyu Youth Bakery

Project 16.06.2015 6,293,029 30.11.2015 6,607,680 314,651 6,293,029

-do-

Kalampete Youth Galic Growing

Project 17.06.2015 5,600,000 4,686,150 223,150 1,137,000 4,463,000

-do-

Kasasira I Youth Empowered

Piggery Project 29.06.2015 5,980,000 31.12.2015 6,279,000 299,000 5,980,000

-do-

Kasasira Township Organic

Piggery Youth Project 16.06.2015 6,800,000 30.06.2016 6,100,500 290,500 990,000 5,810,000

-do-

Kategere Youth Salon Project 16.06.2015 5,042,000 30.10.2015 4,769,100 227,100 500,000 4,542,000

-do-

Katiryo I Youth Cattle Trade

Project 16.06.2015 5,048,000 30.10.2015 4,859,400 231,400 420,000 4,628,000

-do-

Kibuku Youth Turkey Rearing 16.06.2015 7,330,221 30.04.2015 6,804,232 324,011 850,000 6,480,221

-do-

20

Project name

Date of

disbursed

Amount

disbursed

Repayment

date

RECOVERABLE

AMOUNT

5% services fee

where


Project

Kwankira Youth Piggery Rearing

Project 16.06.2015 5,322,000 30.01.2016 5,588,100 266,100 5,322,000

-do-

Lyama Youth Produce Buying and

Selling Project 29.06.2015 5,000,000 23.06.2015 2,625,000 125,000 2,500,000 2,500,000

-do-

Nabikabala Youth Produce Buying


-do-

Nabuli Youth Animal Traction

Project 16.06.2015 6,280,000 30.01.2016 4,704,000 224,000 1,800,000 4,480,000

-do-

Nakitende Youth Animal Traction

Project 16.06.2015 6,285,000 30.10.2015 5,549,250 264,250 1,000,000 5,285,000

-do-

Nakooma Youth Goat Rearing

Project 29.06.2015 6,090,000 30.06.2016 6,079,500 289,500 300,000 5,790,000

-do-

Namiru Youth Tailoring and

Garment Cutting Project 16.06.2015 5,810,000 28.02.2106 5,365,500 255,500 700,000 5,110,000

-do-

Namuyonga II Youth Produce

Buying And Selling Project 17.06.2015 5,231,898 30.10.2015 2,941,993 140,095 2,430,000 2,801,898

-do-

Nankodo Youth Tailoring Project 29.06.2015 5,630,000 31.01.2016 5,911,500 281,500 5,630,000

-do-

Nansonko Youth Produce Buying


-do-

Natoto B Youth Piggery Project 16.06.2015 4,617,000 30.12.2015 4,847,850 230,850 4,617,000

-do-

Pulaka Kenya Produce Buying


-do-

225,663,659 193,495,322 9,214,063 41,382,400 184,281,259

21

Project name

Date of

disbursed

Amount

disbursed

Repayment

date

RECOVERABLE

AMOUNT

5% services fee

where


Appendix 2: Irregular Payment of Salaries to Retired Staff

NAME DATE OF RETIREMENT MONTH OFF THE PAYROLL

EXTRA MONTH ON

THE PAYROLL AMOUNT PAID TOTAL

MULABBI PONSIANUS 19.05.2018 still on the June payroll 1 537,837 537,837

NDIBOLA ROBERT 10.04.2018 -do- 2 555,100 1,110,200

NAMUBYA IRENE 19.03.2018 -do-

3 700,146 2,100,438

HASAKYA BEATRICE 25.01.2018 -do-

5 537,837 2,689,185

NYANGO ERINEST 14.02.2018 -do-

4 537,837 2,151,348

MULUGA JOHN BOSCO 15.01.2018 -do-

5 700,146 3,500,730

MUKENYE STEPHEN 30.01.2018 -do-

5 436,677 2,183,385

GONGOBERO WILSON 08.01.2018 -do-

5 237,069 1,185,345

KOLYANGA JOHN H 10.01.2018 -do-

5 413,158 2,065,790

AGURAMA MARGRET 30.11.2017 -do-

7 537,837

3,764,859

TOTAL 21,289,117

22

Appendix 3: Status of basic medical equipment

A. THEATRE

NAME OF EQUIPMENT QUANTITY AVAILA

BLE MISSING USE/PURPOSE EXISTANCE CONDITION REMARKS

C/s sets (caesarean sets) 5 3 2 For C-Section operations Yes functional

Oxygen cylinders (large

size) 3 2 1 For administration of Oxygen Yes functional

no oxygen key and

head

Hernia sets 4 2 2 For operation and management of

Hernia Yes functional

D&C sets 3 1 2 Used for dilatation and curettage Yes functional

MVA 3 0 3 For manual volume aspiration no the hospital doesn’t own

any

Ambu bag

1. Neonatal 2 1 1 Used to provide positive pressure

ventilation Yes functional

2. Adult 2 1 1 Used to provide positive pressure

ventilation Yes functional

Penguin sucker 2 1 1 Helps in clearing the babies airway Yes functional

Nasal oxygen prongs 10 0 10 Used to deliver supplementary oxygen no the hospital doesn’t own

any

Laparotomy set 2 1 1 Surgical incision into the abdomen for

evacuation or preparation for surgery Yes functional

Pulse oximeter 2 0 2 Non-invasive method for monitoring

oxygen levels no

the hospital doesn’t own

any

Suction machine

Boyle’s machine bp calf 5 1 4 For administering anaesthesia Yes functional

Anaesthetic trolley 1 0 1 For administering anaesthesia no the hospital doesn’t own

23



any

Oxygen concentrator 10 1 9 For administering oxygen Yes functional

Portable operating light 2 1 1 Provide light during operations Yes not- functional can be repaired

baby warmer 1 1 0 no skin temperature

sensor

Blood pressure

machines[bp] 2 1 1 Measuring pressure Yes functional

Autoclave

2. Non electric 1 0 1 Used for sterilization no the hospital doesn’t own

any

B. OPHTHALMIC DEPARTMENT- IDLE EQUIPMENT -NO STAFF

Slit lamp 1 1 Used for examining the interior of the

eye

Tonometer 2 2 Used to determine the intraocular

pressure

Ophthalmoscope 2 2 0 Majorly for the inspection of the

retina yes functional

no staff to operate

the equipment

Refraction set 2 2 Used in reflection and refraction

demonstrations

Lid rotation set 2 2 For examining and surgery of the eye

Loop (with lights and

battery) 3 3 Used in eye surgery

C. MATERNITY

24



Delivery sets 5 4 1 For the delivery of new born yes functional

Blood pressure

machines[bp] 5 0 5 Measuring blood pressure no

the health centre

borrows from the

theatre

Fetoscopes 10 2 8 Allow access to the foetus yes one functional, one not

functional broken

MVA sets (manual vacuum

aspiration sets) 2 3 -1 For manual volume aspiration yes not functional broken

Ultra sound scan machine

(basic) for obstetrics 1 1 0 Used for scanning yes not functional

worn out probe, and

cost for a new one is

same as buying the new

scan

Penguin sucker 5 3 2 Used for aspiration or cleaning of

mucus yes functional

Ambubag

1. Adult 2 1 1 Used to provide positive pressure

ventilation yes functional

2. Neonatal 3 1 2 Used to provide positive pressure

ventilation yes functional

Autoclave

2. Non electric 1 0 1 Used for sterilization no the hospital doesn’t own

any

LABORATORY

Refrigerator for reagents 1 1 0 Keep reagents below room

temperature yes functional

25



Blood bank refrigerator 1 0 1 Keeping blood at recommended

temperature no

the hospital doesn’t own

any

Microscopes 2 2 0 For microscopic examination of

samples yes

one functional, one not

functional

taken to mbale for

repair

Electric centrifuges (bench

top) 5 2 3 Separation of fluids from densities yes not functional broken

Autoclave (in wash up) 1 0 1 For sterilization no the hospital doesn’t own

any

Bunsen burner 1 0 1 For drying slides no the hospital doesn’t own

any

Chemistry analyser 1 1 0 For determination of the

concentration of analyses yes functional no reagents

26

Documents

OFFICE OF THE AUDITOR GENERAL THE REPUBLIC OF UGANDA€¦ · Kadama-kibuku-buseta 21.2 21.2 Kibuku-saala-kirika 16.5 16.5 Tirinyi-bumiza-bulangira 10.3 10.3 kadama-kabweri-kakutu