THE REPUBLIC OF UGANDA

REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS

OF KAMPALA CAPITAL CITY AUTHORITY

FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2016

OFFICE OF THE AUDITOR GENERAL

UGANDA

ii

TABLE OF CONTENTS

LIST OF ACRONYMS .................................................................................................. iii

REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF KAMPALA

CAPITAL CITY AUTHORITY FOR THE YEAR ENDED 30TH JUNE, 2016 ............................. iv

1.0 INTRODUCTION ............................................................................................. 8

2.0 BACKGROUND INFORMATION .......................................................................... 8

3.0 ENTITY FINANCING ........................................................................................ 8

4.0 MANDATE AND 0BJECTIVES OF KCCA ............................................................... 9

5.0 AUDIT OBJECTIVES ........................................................................................ 9

6.0 AUDIT PROCEDURES PERFORMED ................................................................. 10

7.0 CATEGORIZATION AND SUMMARY OF FINDINGS ............................................ 11

7.1 Categorization of findings .............................................................................. 11

7.2 Summary of Findings ..................................................................................... 11

8.0 DETAILED FINDINGS..................................................................................... 12

8.1 Receivables .................................................................................................. 12

8.2 Legal costs ................................................................................................... 12

8.3 Revenue Shortfall .......................................................................................... 13

8.4 Property - Land titles ..................................................................................... 14

8.5 Payables....................................................................................................... 15

8.6 Youth Livelihood Programme .......................................................................... 17

8.7 Human Resource Management ....................................................................... 18

8.8 Budget performance ...................................................................................... 19

8.9 Field Inspections ........................................................................................... 24

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LIST OF ACRONYMS

Acronym Meaning

BLB Buganda Land Board

CDD Community Driven Development

DLB District Land Board

DPP Directorate Of Physical Planning

EFT Electronic Funds Transfer

IGG Inspectorate of Government

KCC Kampala City Council

KCCA Kampala Capital City Authority

KDLB Kampala District Land Board

MDA Ministries, Departments and Agencies

MOU Memorandum of Understanding

NSSF National Social Security Fund

NTR Non-Tax Revenue

PPDA Public Procurement and Disposal of Assets Authority

YIG Youth Interest Group

YLP Youth Livelihood Programme

PFMA Public Finance Management Act, 2015

TAIs Treasury Accounting Instructions

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REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF

KAMPALA CAPITAL CITY AUTHORITY

FOR THE YEAR ENDED 30TH JUNE, 2016

THE RT. HON. SPEAKER OF PARLIAMENT

I have audited the Financial Statements of Kampala Capital City Authority (KCCA) for the

year ended 30th June 2016. These financial statements comprise of the statement of

financial position, the statement of financial performance, statement of changes in equity

and cash flow statement together with other accompanying statements, notes and

accounting policies.

Management Responsibility

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 Kampala Capital City Authority.

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

accordance with the requirements of the KCCA Act 2010, and the International Public

Sector Accounting Standards (IPSAS) on Accrual basis of accounting and for such internal

controls as management determines is necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

My responsibility as required by Article 163 of the Constitution of the Republic of Uganda,

1995 (as amended) and Sections 13 and 19 of the National Audit Act, 2008 is to audit

and express an opinion on these statements based on my audit. I conducted the audit in

accordance with International Standards on Auditing. Those standards require that I

comply with the ethical requirements and plan and perform the audit to obtain

reasonable assurance whether the financial statements are free from material

misstatement.

An audit involves performing audit procedures to obtain evidence about the amounts and

disclosures in the financial statements as well as evidence supporting compliance with

relevant laws and regulations. The procedures selected depend on the Auditor’s judgment

including the assessment of risks of material misstatement of financial statements

whether due to fraud or error. In making those risk assessments, the Auditor considers

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internal control relevant to the entity’s preparation and fair presentation of financial

statements in order to design audit procedures that are appropriate in the circumstances

but not for purposes of expressing an opinion on the effectiveness of the entity’s internal

control. An audit also includes evaluating the appropriateness of accounting policies used

and the reasonableness of accounting estimates made by management as well as

evaluating the overall presentation of the financial statements. I believe that the audit

evidence I have obtained is sufficient and appropriate to provide a basis for my audit

opinion.

Part “A” of this report sets out my opinion on the financial statements. Part “B” which

forms an integral part of this report presents in detail all the significant audit findings

made during the audit which have been brought to the attention of management and

form part of my Annual Report to Parliament.

PART ‘‘A’’

Opinion

In my opinion, the financial statements present fairly, in all material respects the financial

position of Kampala Capital City Authority as at 30th June, 2016 and its financial

performance and cash flows for the year then ended in accordance with the International

Public Sector Accounting Standards (IPSAs) and the KCCA Act 2010.

Report on other legal requirements

As required by the Kampala Capital City Authority Act, 2010 and the National Audit Act,

2008:

i. I have obtained all the information and explanations, which to the best of my

knowledge and belief were necessary for the purpose of my audit.

ii. In my opinion, proper books of account have been kept by the Authority, so far as

appears from my examination of those books; and

iii. The statement of financial position and statement of financial performance are in

agreement with the books of account.

Emphasis of Matter

Without qualifying my opinion, attention is drawn to the following matters that are

described in Note 4, Note 12 and Schedule L1 in the financial statements and also in

paragraph 8.1 and 8.2 of my report:

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Outstanding receivables

The trade and other receivables amounted to UGX.53,014,155,403 as at the close of the

financial year. The uncollected outstanding receivables may eventually necessitate writing

off the debts thus causing financial loss to the Authority. This would impact on the cash

flows of the Authority.

Legal costs

Management recognized a provision for legal liabilities amounting to UGX.26,719,950,359

and also disclosed contingent legal liabilities amounting to UGX.100,789,450,678 as at

30th June 2016. These legal costs relate to various civil cases filed against the Authority,

and currently pending before the courts of law. There is a possibility that these costs

may severely constrain the implementation of the Authority’s planned activities, should

the liabilities crystallize.

John F.S. Muwanga

AUDITOR GENERAL

KAMPALA

22nd December, 2016

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REPORT OF THE AUDITOR GENERAL AND

SUPPLEMENTARY INFORMATION

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“PART B”

DETAILED REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS

OF KAMPALA CAPITAL CITY AUTHORITY FOR THE YEAR ENDED 30TH JUNE, 2016

This Section outlines the detailed audit findings, management responses, and my

recommendations in respect thereof.

1.0 INTRODUCTION

Article 163 (3) of the Constitution of the Republic of Uganda, 1995 (as amended)

requires me to audit and report on the public accounts of Uganda and all public

offices including the courts, the central and local government administrations,

universities, and public institutions of the like nature and any public corporation or

other bodies or organizations established by an Act of Parliament. Accordingly, I

carried out the audit of Kampala Capital City Authority (KCCA) to enable me report to

Parliament.

2.0 BACKGROUND INFORMATION

Kampala Capital City Authority was enacted by Kampala Capital City Act 2010. The

Authority is a body corporate with perpetual succession and may sue and be sued in

its corporate name. It is located at city hall on Plot 1-3 Sir Apollo Kaggwa road,

Kampala Capital City. The Authority’s vision is’’ to be a vibrant and sustainable City’’

while the Mission is ‘’to deliver Quality service to the City “

3.0 ENTITY FINANCING

The Authority was financed by grants from Central Government, donor funds and

locally generated revenue. Grants totaling to UGX.207,778,350,016 from Central

Government were received while, UGX.111,951,019,783 was received as funding

from development partners (including KIIP2 project UGX.85,461,894,928 and

Uganda Road Fund UGX.14,738,725,987, among others). Cash collections from Non-

tax revenue amounted to UGX. 84,927,640,611 and UGX.76,734,694 was collected

from Miscellaneous revenue. Out of the total funding received of UGX.

404,733,745,104, the Authority spent UGX.286,971,524,720 and this constituted

70% of the revenue received.

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4.0 MANDATE AND 0BJECTIVES OF KCCA

The core mandate is enshrined in section 7 (1-4) of the Kampala Capital City

Authority Act, 2010 and are;

(i) To provide for Administration of Kampala by the Central Government;

(ii) To provide for the Territorial Boundary of Kampala;

(iii) To Provide for the Development of Kampala Capital City;

(iv) To Establish a Kampala Capital City Authority as the Governing Body of the

city;

(v) To Provide for the composition and Election of Members of the Authority;

(vi) To Provide for the removal of members from the Authority;

(vii) To provide for the Functions and Powers of the Authority;

(viii) To provide for the election and removal of the Lord Mayor and Deputy Lord

Mayor;

(ix) To Provide for the Appointment, Powers and Functions of an Executive Director

and Deputy Executive Director of the Authority;

(x) To provide for Lower urban councils under the Authority;

(xi) To provide devolution by the Authority of Functions and Services;

(xii) To provide for a metropolitan Physical Planning Authority for Kampala and

adjacent Districts;

(xii) To provide for the power of the Minister to veto decisions of the Authority in

certain circumstances and for related matters.”

5.0 AUDIT OBJECTIVES

The audit was carried out in accordance with International Standards on Auditing

and accordingly included a review of the accounting records and agreed procedures

as was considered necessary. In conducting my reviews, special attention was paid

to establish whether:-

a. The financial statements have been prepared in accordance with consistently

applied Accounting Policies and fairly present the revenues and expenditures

for the period and of the financial position as at the end of the period.

b. All funds were utilized with due attention to economy and efficiency and only

for the purposes for which the funds were provided.

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c. Goods and services financed have been procured in accordance with the

Government of Uganda procurement regulations.

d. To evaluate and obtain a sufficient understanding of the internal control

structure of the organization, assess control risk and identify reportable

conditions, including material internal control weaknesses.

e. The Management was in compliance with the Government of Uganda

financial regulations.

f. All necessary supporting documents, records and accounts have been kept

in respect of all activities, and are in agreement with the financial statements

presented.

6.0 AUDIT PROCEDURES PERFORMED

The following audit procedures were undertaken:-

(a) Revenue

Obtained schedules of all revenues collected and reconciled the amounts to the

cashbooks and bank statements.

(b) Expenditure

The Authority payments vouchers were examined for proper authorization,

eligibility and budgetary provision, accountability and support documentation.

(c) Internal Control System

Reviewed the internal control system and its operations to establish whether

sound controls were applied throughout the period audited.

(d) Procurement

Reviewed the procurement of goods and services by the Authority during the

period under review and reconciled with the approved procurement plan.

(e) Fixed Assets Management

Reviewed the use and management of the assets of the Authority during the

period audited.

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(f) Authority’s Financial Statements

Examined, on a test basis, evidence supporting the amounts and disclosures in

the financial statements; assessed the accounting principles used and

significant estimates made by management; as well as evaluating the overall

financial statement presentation.

7.0 CATEGORIZATION AND SUMMARY OF FINDINGS

7.1 Categorization of findings

The following system of profiling of the audit findings is used to better prioritize the

implementation of audit recommendations:

No Category Description

1 High significance Has a significant/material impact, has a high likelihood of

reoccurrence, and in the opinion of the Auditor General, it

requires urgent remedial action. It is a matter of high risk or

high stakeholder interest.

2 Moderate significance Has a moderate impact, has a likelihood of reoccurrence,

and in the opinion of the Auditor General, it requires

remedial action. It is a matter of medium risk or moderate

stakeholder interest.

3 Low significance Has a low impact, has a remote likelihood of reoccurrence,

and in the opinion of the Auditor General, may not require

much attention, though its remediation may add value to the

entity. It is a matter of low risk or low stakeholder interest.

7.2 Summary of Findings

No Finding Significance

8.1 Receivables High

8.2 Legal costs High

8.3 Revenue Shortfall High

8.4 Property - Land titles High

8.5 Payables High

8.6 Youth Livelihood Programme (YLP) High

8.7 Human Resource Management High

8.8 Budget performance Moderate

8.9 Field inspections Moderate

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8.0 DETAILED FINDINGS

8.1 Receivables

Outstanding trade and other receivables

The trade and other receivables presented in the statement of financial position

decreased from UGX.77,007,788,342 to UGX.53,014,155,403 (representing 31%

decrease from the previous year’s balance). Out of the receivables amount it was

noted that property rates decreased from UGX.66,396,029,910 to

UGX.42,043,077,310 while ground rent decreased from UGX.13,993,742,152 to

UGX.13,469,029,766. The uncollected outstanding receivables may eventually

necessitate writing off the debts thus causing financial loss to the Authority.

Management explained that the Authority has instituted debt recovery initiatives like

reorganizing ground rent lease records, intensifying issuance of tax invoices,

issuance of demand letters, verifying of property records, updating the tax legers

and intensifying sensitization and engagement of tax payers.

I await a further decrease of the receivable positon given the initiatives of the

Accounting Officers in collecting the outstanding receivables.

8.2 Legal costs

During the year under review, the Authority budgeted UGX.6,099,000,000 for legal

costs. However, a review of payments revealed that the Authority spent funds

totaling UGX.11,799,768,822 thus exceeding the budgeted expenditure by

UGX.5,700,768,822 (93%).

A review of the statement of financial position revealed that management disclosed a

sum of UGX.26,719,950,359 as provision for legal costs for the period under review.

This represents a decline of provisions on legal costs by UGX.1,428,482,773 (5%)

from the prior year. It was also noted that taxes and interest costs on a number of

these cases were yet to be determined by court. There is a possibility for further

increases in the legal costs payable.

Furthermore Management disclosed possible/contingent liabilities amounting to

UGX.100,789,450,678 in the financial statements an indication that there is a

possibility that the legal costs may severely constrain the activities of the Authority

in the near future. Delays by the Authority to offset interest bearing judgments in a

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timely manner may lead to incurring more penalties in terms of interests arising from

delayed payments.

Management explained that the excess expenditure on legal costs during the year

was due to Garnishee Orders placed on the revenue collection accounts and the

delay to settle interest bearing judgments in a timely manner, majorly due to

inadequate funding provisions.

I advised Management to prioritize payments for legal costs which have high interest

clauses with a view of avoiding nugatory expenditure.

8.3 Revenue Shortfall

8.3.1 Under-collections of revenue

The Uganda Government Financial regulations, 2003 section 2.15.1 (i) requires the

Accounting officer to ensure that there are efficient and effective arrangements for

revenue collection from the public. It was observed that the Authority planned to

collect Revenue of UGX.111,080,000,000 during the year under review. However, it

was noted that only UGX.84,927,640,611 was collected representing a revenue

shortfall of UGX.26,152,359,390 (24%). Refer to the table below. Under-collection of

revenue affects the entity ability to perform its intended activities.

REVENUE

SOURCE

ACTUAL 2015/16 TARGET 2015/16 PERFORMANCE%

Business License 13,539,641,854 20,041,872,874 68

Property rates 20,265,048,851 23,433,322,361 86

Rent and Rates 4,483,346,408 7,445,091,185 60

Road User Fees 18,660,261,822 28,120,749,498 66

Advertising 1,407,997,150 3,008,400,220 47

Markets 2,187,439,687 2,537,875,380 86

Land fees 3,927,280,805 7,698,058,949 51

Building fees 2,482,902,972 3,498,866,276 71

Local service Tax 11,442,020,609 11,371,928,618 101

Local Hotel Tax 2,329,522,115 2,362,609,457 99

Other Revenue

Sources

3,103,249,585 1,561,225,183 199

Value Added Tax

(VAT)

1,098,928,753

Gross total

collections

84,927,640,611 111,080,000,000 76

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Management explained that the budgeted forecasts included revenue from various

Ministries, Departments and Agencies of Government. However, the PS/ST under

the budget call circular dated 26th January 2016 waived all arrears MDAs owed to

Local Government to a tune of UGX.21billion. Going forward, KCCA has instituted

mechanisms to meet budget forecasts like collecting data for property valuation,

engaging political leaders to enhance revenue mobilization, creating of new grades

for trading licenses to cater for businesses which previously were not paying,

automating of the revenue database to enhance billing efficiency and recruiting of

staff to conduct door to door revenue registration.

I await the outcome of Management’s efforts to enhance revenue performance.

8.3.2 Shortfall in Government Grant

It was observed that the Authority estimated to receive UGX.160,548,184,124 grants

from the Central Government during the year under review. However, only

UGX.126,515,323,029 was received creating a short fall of UGX.34,032,861,095.

Failure by Government to release all budgeted funds to the Authority stalled

implementation of some programs thereby denying services to the beneficiary

communities.

Management explained that the short fall in release of budgeted funds by

Government affected implementation of planned activities for the year especially

construction works. Management has continuously engaged Government to release

all budgeted funds in order to fully implement the approved Work Plans and a

response from PS/ST is awaited.

I advised Management to continuously engage Ministry of Finance, Planning and

Economic Development for the deficit and ensure that planned activities are fully

funded.

8.4 Property - Land titles

A review of the entity property inventory as at 30th June, 2016 revealed that some

titles were not yet in possession of the Authority. This was attributed to some titles

pending mutation and there were delays in getting land title from Uganda Land

Commission, Kampala District Land Board and Buganda Land board while others

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were caveated. Delays in acquiring land titles may result in to loss of property and

subsequent increases in litigation costs.

Management explained that the delay in acquiring land titles was partly due to

shortfall in Non-Tax Revenue collections to enable settling land fees and titling

charges of UGX.881,000,000. Arrangements have been made to have this settled in

3rd quarter of this financial year (2016/17). Management further explained that the

rest of the titles are pending at the Ministry of Lands which the KCCA Land

Management Unit will follow up with the office of the Commissioner Land

Registration to secure the issuance of the titles.

I wait the outcome of Management’s efforts over the matter.

8.5 Payables

8.5.1 Trade creditors

A review of the payables schedule Note 10(a) revealed that payables decreased from

UGX.36,070,594,330 in the previous year to UGX.26,022,099,966 as at 30th June

2016. Further analysis revealed the following:

UGX.19,071,029,856 out of the trade payables of UGX.22,681,902,519 had not

been paid at the time of the audit (5 months after the year-end) which indicates

a slack in debt management. The outstanding trade payables included cleaning

services for health centers, air tickets and legal costs.

Out of the opening balance of severance package of UGX.359,012,330, the

Authority only paid UGX.11,780,268 leaving a balance of UGX.347,232,062 as at

30th June 2016.

Failure to pay off suppliers and severance package beneficiaries may result in to

litigation costs.

8.5.2 Outstanding Statutory obligations

A review of the other payables ledgers in Note 10(b) of the financial statement

revealed that the Authority had not remitted statutory deductions like PAYE, VAT and

NSSF as detailed below;

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i. Non remittance of National Social Security contribution

Section 11 of the National Social Security Fund Act states that every contributing

employer shall, for every month during which he or she pays wages to an eligible

employee, pay to the Fund, within fifteen days next following the last day of the

month for which the relevant wages are paid, a standard contribution of 15%

calculated on the total wages paid during that month to that employee.

A review of the financial statements revealed that out of UGX.1,470,398,113 of

NSSF payable as at 30th June 2016, only UGX.1,271,717,003 was paid leaving an

outstanding amounting of UGX.198,681,110 (14%) 5 months after the year end.

Delayed remittances deny the employees the right to earn interest on contributions

for the months. Furthermore, delayed remittances can lead to penalties from the

statutory agency.

ii. Non-remittance of PAYE and VAT

Section 124(1) of the Income Tax Act requires a withholding agent to pay to the

Commissioner any tax that has been withheld or that should have been withheld

under this section within fifteen days after the end of the month in which the

payment subject to withholding tax was made by the withholding agent.

I noted that out of URA payables of UGX.9,227,431,839 as at 30th June, 2016 only

UGX.6,337,972,440 had been paid at the time of audit (5 months after the year-end)

leaving an outstanding balance of UGX.2,889,459,399 (31%). Violation of the

Income Tax laws attracts fines and penalties thus reducing funding for planned

activities.

Management explained that the delay to settle outstanding creditors was due to

shortfall in funding from Government, Non Tax Revenue Collections and Garnishee

Orders however arrangements were being made to settle the pending obligations in

3rd quarter of the financial year 2016/17.

I advised management to liaise with PS/ST on funding of the budget of the entity,

among other initiatives being pursued. I await the outcome of these efforts to clear

the outstanding payables.

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8.6 Youth Livelihood Programme

The youth livelihood Programme (YLP) is a rolling government of Uganda

Programme, targeting the poor and un-employment in all the districts in Uganda.

The programme is being implemented under the Ministry of Gender, Labour and

Social Development. The funds for the programme are advances to the Youth

Interest Group (YIG) in form of a revolving fund in order to increase outreach and

enhance sustainability of the programme. A review of project reports and

accountability revealed the following issues;

8.6.1 Low absorption

During the year under review, KCCA received a sum of UGX.500,898,870 for

subsequent disbursement to the youth groups. It was however observed that at the

end of the year only 34 groups out of the expected 47 had benefited from the total

disbursements of UGX.182,039,949 which represents 36.34% of the total actual

release thus leaving a balance of UGX.308,145,036 on the account at end of the

year. There is a risk that the program is not achieving its objectives.

Management explained that the low absorption of funds was majorly due to the fact

that KCCA received funds three months to end of the financial year and the process

of identifying beneficiary groups up to the level of disbursement is quite lengthy.

Management further explained that most youth groups delayed to open bank

accounts; some groups submitted unsatisfactory accountabilities while others

withdrew from the project due to disagreements within the groups and as such funds

were automatically recovered.

I advised the Accounting Officer continue sensitizing the youth in order to boost

funds absorption by the beneficiary communities.

8.6.2 Low recovery and management of funds

The review of the project reports indicated that funds were advanced to the youth in

form of a revolving funds and recovery is supposed to be effected within one year

after which a service fee of 5% is charged on the outstanding loan after one year.

I noted that the Authority made cumulative disbursements of UGX.1,222,349,899 to

139 groups appraised from the inception of the project up to 30th June 2016.

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However, only UGX.186,359,751 was recovered which represents only 12.1%

recovery rate. Failure to recover funds disbursed to groups denies other potential

beneficiaries of funds to improve their livelihoods.

Management explained that the set guidelines had issues specifically related to

recovery but pledged to liaise with Ministry of Gender and Social development to

improve on the Youth Livelihood Programme guidelines.

I await the outcome of Management’s efforts to enhance the benefits of the Youth

livelihood Programme in Kampala.

8.7 Human Resource Management

8.7.1 Unapproved Human Resource Manual

Section 45(2) of the Public Finance and Management Act 2015 requires an

accounting officer to put in place effective systems of risk management and internal

controls in respect of all resources and transactions.

It was observed that the Human Resource policy was still in draft form pending

approval. Operating without approved human resource policy may result in irregular

recruitments and selective application of human resource standards may not apply to

all staff thus hindering achievement of the Authority’s strategic objectives.

Management stated that the proposed KCCA Human Resource Manual was submitted

to the Ministry of Public Service for compliance assurance with the applicable

laws, regulations and approval as per the mandate given to the Ministry under KCC

Act 2010 section 25 (4). Management is continuously engaging with the Ministry to

ensure that the Human resource Manual is approved.

I await the outcome of Management’s efforts to have the Human resource Manual

approved.

8.7.2 Staffing

I noted that the KCCA appointed overstaff on temporary basis to perform duties in

various departments whose contracts were renewable every three to four months.

Some of the officers were in senior positions.

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Having temporary staff in senior positions may demotivate them and they may pay

less attention to risk control since they are not certain of their future.

Management explained that the main reason for appointment of staff on temporary

appointment was the cap on recruitment that arose from the failure by the Ministry

of Finance to confirm funds to facilitate the appointment of staff on permanent

terms. Going forward, plans are underway to start filling vacant positions in January

2017 upon confirmation of availability of funds.

I advised management to liaise with MOFPED for the required funding to ensure the

filling of its structure for purposes of meetings its mandate. I await further action by

Management.

8.8 Budget performance

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). Budget

estimates are based on outputs to be achieved for the financial year and during

implementation, effort is required to be made to achieve the agreed objectives or

targets of the entity within the availed resources.

The budget performance for the year under review revealed that some targets were

partially or not achieved despite release of funds to the vote functions as indicated

below:

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Vote

function output

Item

description

Planned

outputs/Quantity

Amount (UGX)

budgeted

Amount

released (UGX)

Actual output/

Quantity

Remarks

Vote Function:

0105 Urban Commercial

and Production

Services

Output: 010503

Market Access for Urban

Agriculture

1,188 Number of small

scale urban farmers

introduced to new technologies

1,188 Number of

farmers supported with inputs and knowledge

2,359,000,000 1,289,0000,000 A total of 566

individuals received

training on various aspects of vegetable

production

A total of 1,277

farmers were

introduced to new technologies

Whereas the number of

farmers introduced new technologies Less than half

of the planned activities(566) was performed

Output: 010580 Urban Market

Construction

Purchase land to

construct more markets(Kasubi market)

7,500,000,000 5,384,959,355 Part payment of USAFI

market made Registration of USAFI

Market vendors: The

activity was not

carried out due to an urgent need to

register street vendors working along Allen

Road. Registration will

be done in Quarter 1 of the new financial

year 2016/17)

A partial payment to

USAFI market was done because government

released for that purpose.

The Purchase of Kasubi

Market was not done due

to shortfalls in NTR collections.

Vote Function:

0204 Urban Planning,

Security and Land Use

Programme 09

Physical Planning

Output: 020403

Slum Development

and Improvement

Carrying out a slums

improvement needs

assessment. Preparing project

Proposal for slums

improvement. Identifying partners to

work with in slums

342,000,000 204,000,000 Activities related to

slum development

were in the current year were kick started.

The activities included profiling, needs

assessments among

others

I noted that this activity

requires significant

funding (USD 12m) but because of limitation in

funding partial implementation of activity

was done.

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improvement Management should

prioritize slum

development activities in order to attain the much

needed slum

improvement in the city.

Project 1253 Kampala Road

Rehabilitation

Output: 040675 Purchase of

Motor Vehicles

and Other Transport

Equipment

Transport equipment

purchased including; pick-up for drainage

works and motor

cycles.

150,000,000 37,500,000 Motorcycles were

procured to support on maintenances

Surveillance.

Pick up was not

procured.

I observed that due to

shortfall in NTR collections the

surveillance pick up was

not bought. Only Motorcycles were

procured.

Vote Function:

1005 Gender, Community

and Economic Development

Project 0115 LGMSD

(former LGDP)

Output:

080780 Health Infrastructure

Construction

Renovation of Kawaala

HCIV and expansion of

Maternity Ward and chain-link fencing at

Kawaala Health Centre IV.

Renovation of Kitebi HC

III, OPD block. Repair of wall and

ceiling of Pediatric

Ward at Komamboga

HC. Repair of roof, drainage

and face lifting of

Kisuggu Health Centre. Renovation of KCCA

Kisenyi Health Centre

IV Perimeter Wall and

Entrance Gate and Installation Step Up

100KVA Transformer at Kisenyi Health Centre

Expansion of OPD at

4,380,862,270 3,436,142,271 Upgrading and

Renovation of KCCA

Health Facilities Construction works

and upgrade of

Kawempe and Kiruddu Health centres to 170

bed hospitals is almost complete with works

at 98%.

Kisenyi HC IV;

Installation of the main gate completed

and Supplied 100KVA transformer by

UMEME. Small fittings

on leaking roofs clutters are also

completed. Kawaala HC III

Remodeling of

maternity ward commenced and is still

I observed that

Construction of Bukoto

H/C, Kiswa HC , Repair and drainage of Kisuggu

health centre was not done due to shortfall in

collections.

There is need to urgently

fund these projects in

order to improve the health services in the city

22

Kiswa HC III and

expansion of infrastructure at Bukoto

HC II for upgrade to HC

IV.

ongoing.

Output: 100551

Small scale business

promotion

200 Small scale

enterprises and CBOs

groups provided with CDD grant

1,376,416,260 768,659,319 150 groups were

supported with CDD

funds worth UGX.734,430,000. The

beneficiaries were

trained in pre award workshops, financial

management, project planning &

management,

leadership and group dynamics while 28

parish model networks were formed due to

limited budget releases. Pre-

disbursement training

held for all 150 groups.

50 groups were not given

funds due to lack of

funds.

24

Service delivery is hampered and the appropriating Authority’s objectives will not be

met.

Management explained that some planned activities were not implemented due to

revenue shortfall and Garnishee orders.

I advised Management to continue engaging MoFPED to fund the whole budget and

internally they should improve revenue collection efforts in order to achieve the

planned outputs.

8.9 Field Inspections

Field inspection of some KCCA primary schools and Health centres was conducted for

purposes of verifying the Authority’s undertakings in relation to its core objectives of

effective service delivery in the city.

8.9.1 Inspection of Health Centres

Inspection carried out at some of KCCA Health Centres revealed the following;

Land encroachment

Land not fenced

National Medical Stores supplying drugs which are about to expire.

Limited drug storage capacity

The health centre IIIs have meager budget of only UGX.45,426,300 per year for

medical supplies.

Detailed observations are in the table below:

Site Remarks Status

Komamboga

Health Centre

III

Land was encroached on by a

resident as it was not fenced

There is limited space in drug

stores hence boxes are piled up to

the ceiling which may affect the

durability of the drugs.

The health centre lacks staff

quarters/accommodation which

leads to delays by the medical

personnel to work on patients in

cases of emergencies.

I noted that National Medical

Stores supplied drugs that were

25

about to expire to the health

centres.

The health centre often

experienced drug stock outs due

to the limited annual budget of

UGX. 45,426,300 for drug supplies.

The children’s ward had developed

a crack. Due to safety concerns,

the ward is not used.

Kiswa Health

Centre III

The Health centre land was

encroached on by the residents.

The health centre lacked a

maternity ward.

There is limited space in drug

stores hence boxes are piled up to

the ceiling which may affect the

durability of the drugs.

National Medical Stores supplied

drugs which were about to expire

for example the HIV testing Kits

which were supplied in October

2016 were set to expire in

November 2016.

Expired drugs have not been

disposed of since 2014

The health centre often

experienced drug stock outs due

to the meager annual budget of

UGX 45,426,300 for drug supplies

yet the patient load is 600-750 per

day.

The picture shows the poor drug

storage on rusty shelves and piled

up boxes.

26

Kisugu Health

Centre

National Medical Stores supplied

drugs which were about to expire.

The health centre often

experienced drug stock outs due

to the meager annual budget of

UGX.45,426,300 for drug supplies

yet the patient load is 700-800 per

day.

There are delays in collection of

expired drugs by National medical

stores.

Medical equipment in the stores

was not properly maintained.

Some of the expired drugs are

shown on the photos.

Kawaala HC

III

The health centre had high patient

load of 7,000-8,000 patients a

month with limited space, led to

congestion at the centre forced

Management to acquire cargo

containers and partitioned them

in to treatment rooms. However

the rooms lack enough ventilation,

for example setting up a TB unit

requires a more open environment.

The maternity ward had an

average of 450 deliveries per

month yet the ward has only 9

beds. Hence mothers at times are

discharged from the maternity

ward shortly after delivery before

full recovery to create space for

other expectant mothers.

Maternity ward above

27

There is no adequate space for

stores, thus some supplies were

stored in the patient’s waiting

rooms.

TB and ARVs drugs are well

stocked however the Health often

had stock outs for essential drugs

within two weeks after delivery due

to a meagre budget of UGX.

45,426,300 for drug suppliers.

Some Laboratory tests such as HB,

HCD and CDC for pregnant

mothers cannot be handled at the

center thus denying the community

quality service delivery.

The health centre also lacks vital

units such as X-ray, theater,

radiology and ultra-sound units.

The health centre lacks enough

toilets as the five stance toilets

were shared by all patients.

Container used as TB unit

Toilet shared by all patients

Kitebi HC III TB and ARVs drugs were well

stocked however the essential like

malaria drugs run out very fast. In

most cases they last about two

weeks after delivery.

The health centre lacks TB drugs

for the children.

The maternity unit had an

average of 260 mothers delivering

per month yet the unit had only 15

beds in the ward; this tends to

congestion and sometimes patients

have to sleep on the floor.

Mama kits were not enough to

cater for Maternity patients.

Patient load was 13,084 per month

and 156,071 annually.

28

The health centre lacks an

ambulance and Management often

assistance from Kawala HC III

whenever it had referral cases. The

annual budget for medical supplies

is UGX. 45,426,300 which is not

sufficient.

Failure to supply adequate drugs to health centres and poor storage of drugs denies

the beneficiary communities quality health services.

Management explained that the Authority was continuously engaging the Ministry of

Health to increase on the resource allocation to City Health centres in order to

support the ever increasing numbers of patients.

I await the outcome of Management’s efforts to have the resources allocation to

health centres increased.

8.9.2 Inspection of Schools

An inspection of a number of schools and the interviews carried out with Head

Teachers revealed the following;

Most schools did not have certificates of land titles

The School land was not fenced

There were staff shortfalls in some schools

Inadequate infrastructure such as staff quarters, classrooms and toilets

Details of the inspections are in the table below:

SCHOOL Remarks Status

Kalinabiri

Primary

School

The staff quarters

were dilapidated.

The dining hall is

incomplete.

In the last three years,

school achieved 112

first grades and 344

second grades out of a

total population of 477

candidates.

29

The school’s existence

is threatened as the

bonafide land lord

wants to dispose off

the land.

Ratios;

Teacher/Pupil 1:41

Classroom/Pupil 1:60

Toilet/Pupil 1:64

Luzira Church

of Uganda

Primary

School

The School enrollment

was 1312 pupils.

Classrooms and Seater

desks are not enough

because of the

overwhelming number

of pupils where by a

3-seater desk is

actually occupied by 6

pupils.

A number of seater

desks were broken.

Management installed

wire mashes instead

of glass windows

which may be

dangerous to the

pupils in case of an

emergency such as

fire outbreak in school.

Ratios;

Teacher/Pupil 1:64

Classroom/Pupil 1:103

Toilet/Pupil 1:84

30

Ntinda

Primary

School

The classroom block is

incomplete. Desks and

classrooms are not

enough for pupils as

school enrollment is

899.

Ratios;

Teacher/Pupil 1:46

Classroom/Pupil 1:67

Toilet/Pupil 1:41

Failure to improve the infrastructure for schools denies pupils and teachers a good

environment for learning.

Management stated that the Authority is committed to improving the school

infrastructure and secure titles within the approved budget. Management further

stated that Authority embarked on the process of rotating teachers in order to

improve the school’s teacher pupil ratio and consequently enhance their academic

performance.

I advised Management to prioritize funding to improve infrastructure in KCCA

schools.

31

APPENDIX 1

FINANCIAL STATEMENTS