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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
ii
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
iii
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
iv
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.
2
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
10
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
12
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
15
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
and Selling Project 29.06.2015 4,657,000 31.10.2015 2,363,130 112,530 2,406,400 2,250,600
-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
applicable Amount Recovered Amount due Remarks
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
applicable Amount Recovered Amount due Remarks
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
and Selling Project 16.06.2015 4,703,266 30.08.2015 3,137,679 149,413 1,715,000 2,988,266
-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
and Selling Project 16.06.2015 6,000,000 30.10.2015 2,215,500 105,500 3,890,000 2,110,000
-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
and Selling Project 16.06.2015 5,000,000 30.11.2015 3,727,500 177,500 1,450,000 3,550,000
-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
applicable Amount Recovered Amount due Remarks
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
NAME OF EQUIPMENT QUANTITY AVAILA
BLE MISSING USE/PURPOSE EXISTANCE CONDITION REMARKS
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
NAME OF EQUIPMENT QUANTITY AVAILA
BLE MISSING USE/PURPOSE EXISTANCE CONDITION REMARKS
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
NAME OF EQUIPMENT QUANTITY AVAILA
BLE MISSING USE/PURPOSE EXISTANCE CONDITION REMARKS
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
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