THE REPUBLIC OF UGANDA

Verified
Verified
Verified
Verified

ANNUAL REPORT OF THE AUDITOR GENERAL

TO PARLIAMENT FOR THE
AUDIT YEAR ENDED
3 1 ST D E C E M B E R 2 0 2 4

CONSOLIDATED AUDIT FINDINGS

REPORT OF THE AUDITOR GENERAL TO PARLIAMENT
FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2024

OFFICE OF THE AUDITOR GENERAL

UGANDA

DECEMBER, 2024

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TABLE OF CONTENTS
PAGE
LIST OF TABLES, FIGURES, APPENDICES AND ANNEXURES .................................................................. v
LIST OF ACRONYMS ........................................................................................................................... ix
GLOSSARY OF TERMS ....................................................................................................................... xii
FOREWORD ......................................................................................................................................xiii
INTRODUCTION ............................................................................................................................... 14
Mandate ........................................................................................................................................... 14
Purpose of the Report ....................................................................................................................... 14
Developments during the audit year ................................................................................................... 15
Summary of Audit Results ................................................................................................................. 16
PART I: REPORTS ON CONSOLIDATED FINANCIAL STATEMENTS ........................................................ 19
SECTION 1: REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED FINANCIAL STATEMENTS OF
THE GOVERNMENT OF THE REPUBLIC OF UGANDA FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2024 19
1.1 Rollout of Asset Management and Reporting ............................................................................ 20
1.2 Non-Performing Receivables - UGX.0.919Tn ............................................................................ 20
1.3 Continued Increase in Payables .............................................................................................. 21
1.4 Management of Letters of Credit ............................................................................................. 21
1.5 Classified Expenditure ............................................................................................................ 22
1.6 Slow recovery of Accumulated Arrears of Revenue ................................................................... 22
1.7 Implementation of the Roadmap to Accrual Accounting ............................................................ 23
1.8 Pension and Gratuity Supplementary releases without requests from Accounting Officers ........... 23
1.9 Review of Share Purchase in M/s ROKO Construction Ltd ......................................................... 26
1.10 Irregular purchase of shares by Government ........................................................................... 27
1.11 Review of Investment in M/s Dei-Biopharma Ltd - UGX.723.4Bn ............................................... 28
SECTION 2: REPORT ON THE AUDIT OF COMPLIANCE WITH THE RELEVANT REGULATORY FRAMEWORK29
1.12 Special Audit on the Pension and Gratuity Payroll ..................................................................... 30
1.13 Implementation of the Parish Development Model ................................................................... 32
1.14 Procurement Management ...................................................................................................... 34
SECTION 3: REPORT ON PERFORMANCE EVALUATION ....................................................................... 38
1.15 Review of Fiscal Administration ............................................................................................... 38
1.16 Review of Grants ................................................................................................................... 40
1.17 Review of sovereign credit indicators....................................................................................... 42
1.18 Loan Performance and Absorption ........................................................................................... 46
SECTION 4: REVIEW OF THE CONSOLIDATED SUMMARY STATEMENT OF FINANCIAL PERFORMANCE OF
PUBLIC CORPORATIONS AND STATE ENTERPRISES FOR THE YEAR ENDED 30TH JUNE 2024 ................ 49

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PART II: KEY FINDINGS FROM PROGRAMME AUDITS ......................................................................... 64
2.1 Specific Programme Key Audit Findings ................................................................................... 64
2.1.1 Human Capital Development Program ..................................................................................... 64
2.1.2 Integrated Transport Infrastructure and Services Program ....................................................... 69
2.1.3 Mineral Development Programme ........................................................................................... 71
2.1.4 Sustainable Development of Petroleum Resources ................................................................... 72
2.1.5 Sustainable Energy Development Programme .......................................................................... 73
2.1.6 Agro-Industrialisation Programme ........................................................................................... 75
2.1.7 Administration of Justice Programme ...................................................................................... 78
2.1.8 Governance and Security Programme ...................................................................................... 82
2.1.9 Regional Balance Development Programme ............................................................................. 84
2.1.10 Public Sector Transformation Programme ................................................................................ 85
2.1.11 Community Mobilization & Sensitization Program ..................................................................... 86
2.1.12 Climate Change, Natural Resources, Environment & Water Management Programme ................. 87
2.1.13 Development Plan Implementation Programme ........................................................................ 88
2.1.14 Innovation, Technology Developments and Transfer Programmes ............................................. 94
2.1.15 Tourism Development Programme .......................................................................................... 95
2.1.16 Digital Transformation Programme .......................................................................................... 96
2.1.17 Sustainable Urbanisation and Housing Programme ................................................................... 98
2.1.18 Manufacturing Programme ..................................................................................................... 98
2.2 Observations from other Compliance Areas .............................................................................. 99
PART III: VALUE FOR MONEY AND ENGINEERING AUDITS ............................................................... 152
3.1 Value for Money Audits ........................................................................................................ 152
3.2 Engineering/Public Works Audits ........................................................................................... 225
PART IV: INFORMATION SYSTEMS, FORENSIC AND SPECIAL AUDITS ............................................... 247
4.1 Information Systems Audits .................................................................................................. 247
4.2 Forensic Audits .................................................................................................................... 273
4.3 Special Audits ...................................................................................................................... 274
PART V: HIGHLIGHTS FROM LOCAL GOVERNMENT AUDITS .............................................................. 277
5.1 Focus Areas ......................................................................................................................... 277
5.2 Highlights from Audit of Lower Local Governments for the period 2021/22 .............................. 295
5.3 Audit of Secondary Schools and Tertiary Institutions .............................................................. 300
PART VI: AUDIT OF TREASURY MEMORANDA .................................................................................. 307
6.1 Treasury Memoranda Backlogs ............................................................................................. 307
6.2 Treasury Memoranda Audits in Progress ................................................................................ 309
APPENDICES................................................................................................................................... 310

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ANNEXURES ................................................................................................................................... 318

iv
LIST OF TABLES, FIGURES, APPENDICES AND ANNEXURES

TABLES
PAGE
Table 1: Summary of Audit Performance for the audit year .................................................................. 17
Table 2: Summary of Current Year Audit Opinions .............................................................................. 17
Table 3: Trend of Opinions over the FYs ............................................................................................. 18
Table 4: Supplementary expenditure not requested by Accounting Officers .......................................... 23
Table 5: Performance of the Resource Envelope ................................................................................. 38
Table 6: Government Expenditure Budget .......................................................................................... 38
Table 7: Government budget performance per spending category ........................................................ 39
Table 8: Unabsorbed funds by two Grant Projects ............................................................................... 41
Table 9: Progress of construction of the Aquaculture Parks .................................................................. 42
Table 10: Debt to GDP ratio over the years ........................................................................................ 43
Table 11: Interest to total revenue ratio ............................................................................................. 45
Table 12: Fiscal deficit to GDP ratio .................................................................................................... 45
Table 13: Showing Loan Absorption ................................................................................................... 46
Table 14: Commitment fees paid over the years ................................................................................. 48
Table 15: Public Corporations, State Enterprises and Companies not consolidated ................................ 49
Table 16: Profitability of Public Corporation and State Enterprises ........................................................ 52
Table 17: Operating Margin of Public Corporation and State Enterprises ............................................... 54
Table 18: Returns on Assets .............................................................................................................. 57
Table 19: Liquidity Assessment .......................................................................................................... 60
Table 20: Debt Analysis ..................................................................................................................... 62
Table 21: Planned roll-out of TELA ..................................................................................................... 68
Table 22: Usage of TELA by the Schools ............................................................................................. 68
Table 23: Performance for different categories of Court Cases ............................................................. 80
Table 24: Revenue Collection for the past two Financial Years ............................................................. 89
Table 25: External Debt ..................................................................................................................... 89
Table 26: Discharge of tax disputes over the years ............................................................................. 92
Table 27: Budget and releases for the period .................................................................................... 100
Table 28: Funds diverted ................................................................................................................. 101
Table 29: Misclassified expenditure .................................................................................................. 101
Table 30: Overpayment of gratuity................................................................................................... 102
Table 31: Pensioners who had not yet accessed the payroll ............................................................... 106
Table 32: Employees expected to retire in the next 10 years ............................................................. 111
Table 33: Total Budgets, Releases and Expenditure for PDM for FY 2023/24 ...................................... 118

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Table 34: Alignment of work plans to the Pillar action plans .............................................................. 120
Table 35: Under release of PDM SACCO Funds ................................................................................. 123
Table 36: Administrative Funds to other MDAs .................................................................................. 124
Table 37: Payment of Parish Chiefs’ Allowances ................................................................................ 125
Table 38: Cumulative capitalization and disbursements of PRF to households ..................................... 126
Table 39: Allocation criteria for the Parish Revolving Funds ............................................................... 128
Table 40: Allocation of PDM to Special Interest Groups ..................................................................... 129
Table 41: Contradictions in the Implementation of PDM Activities ...................................................... 133
Table 42: Multiple funding of Beneficiaries ........................................................................................ 136
Table 43: Implementation of PDMIS Modules ................................................................................... 138
Table 44: Utilisation of the Wendi Mobile Platform by HLGs and KCCA ................................................ 139
Table 45: PDM SACCOs using the Wendi Mobile Platform .................................................................. 139
Table 46: Multiple Loans by same individuals .................................................................................... 142
Table 47: Unfunded SACCOs............................................................................................................ 145
Table 48: PDM Data collection and Registration ................................................................................ 146
Table 49: Data Variances in TIMS/DMS and that communicated to URA ............................................. 183
Table 50: Performance of Local revenue ........................................................................................... 205
Table 51: Engineering /Public Works audits during the period of Reporting ......................................... 225
Table 52: Design and planning inadequacies noted ........................................................................... 226
Table 53: Procurement issues noted................................................................................................. 227
Table 54: Status of the Performance Securities as at the time of audit ............................................... 228
Table 55: Delays in the implementation of the works ........................................................................ 229
Table 56: Delays to complete works and uncharged/forfeited liquidated damages............................... 229
Table 57: Summary of irregular/unjustified/questionable payments/ certifications ............................... 230
Table 58: Observed defects in the different project sites ................................................................... 232
Table 59: Non-adherence to environmental, health, social and safety measures ................................. 233
Table 60: Material testing and quality control inadequacies noted ...................................................... 234
Table 61: Concrete elements that failed the minimum test strength requirements ............................... 234
Table 62: Summary of the laboratory test results for the sampled materials ....................................... 235
Table 63: Overpayments/over certifications noted ............................................................................. 236
Table 64: Supervision inadequacies noted ........................................................................................ 237
Table 65: Inadequacies in Planning and Design ................................................................................ 237
Table 66: Procurement Issues ......................................................................................................... 238
Table 67: Inadequacies in Contract Formulation................................................................................ 239
Table 68: Delayed Engagement of Supervising Consultants ............................................................... 240
Table 69: Unjustified/Irregular Payments.......................................................................................... 240

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Table 70: Observed Defects/Omissions ............................................................................................. 241
Table 71: Quality Control Omissions ................................................................................................. 241
Table 72: Quality of Works and Materials ......................................................................................... 242
Table 73: Observed Non-Conformances ............................................................................................ 242
Table 74: Forensic Investigations conducted by OAG ........................................................................ 273
Table 75: Special Audits conducted .................................................................................................. 274
Table 76: Special audits on Valuations and Verifications .................................................................... 275
Table 77: Inconsistencies in UPE enrolment figures ........................................................................... 280
Table 78: UPE Capitation Grants unit costs ....................................................................................... 280
Table 79: LGs that failed to utilize UgIFT funds ................................................................................. 291
Table 80: Partially and non-implemented UgIFT infrastructural facilities ............................................. 292
Table 81: Government projects on untitled Land ............................................................................... 292
Table 82: LLG without Strategic Plans .............................................................................................. 296
Table 83: LLGs’ Revenue performance ............................................................................................. 296
Table 84: Absorption of Funds in LLGs ............................................................................................. 297
Table 85: Release of DDEG Grant .................................................................................................... 298
Table 86: Showing category of entities per Treasury Memoranda ....................................................... 307
Table 87: Summary of Treasury Memoranda implementation status ................................................... 309

FIGURES
PAGE
Figure 1: Total Audit Population and Planned Audits for 2024 .............................................................. 16
Figure 2: Debt to GDP ratio ............................................................................................................... 44
Figure 3: Status of Implementation of Processes of Curriculum Reform ................................................ 67
Figure 4: Garbage collected in Cities and Municipalities ....................................................................... 87
Figure 5: External Debt by Category ................................................................................................... 90
Figure 6: Projected pension increase in the next 10 years.................................................................. 112
Figure 7: Allocation of the initial budget by expenditure category ....................................................... 114
Figure 8: Implementation Status of FMP Recommendations ............................................................... 212
Figure 9: Implementation of recommendations by Microfinance Support Centre .................................. 216
Figure 10: Implementation Status of the VODP Recommendations ..................................................... 222

APPENDICES
PAGE
Appendix 1: Public Corporations and State Enterprises supposed to be Consolidated ........................... 310
Appendix 2: Inconsistencies in the submitted information .................................................................. 312
Appendix 3: Procurement budgets for entities on e-GP ...................................................................... 315

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Appendix 4: Details of other procurement Observations .................................................................... 317

ANNEXURES

Annexure 1: Summary of Entity Findings for MDAs and Projects ........................................................ 318
Annexure 2: The Consolidated Financial Statements of the Government of the Republic of Uganda for
the financial year ended 30 June 2024 ......................................................................... 564
th

Annexure 3: The Consolidated Summary Statement of Financial Performance of Public Corporations and
State Enterprises for year ended 30th June 2024 ............................................................. 565

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LIST OF ACRONYMS

ACRONYM MEANING
AFROSAI-E African Organization of English-Speaking Supreme Audit Institutions
AG Auditor General
AO Accounting Officer
BIMS Building Industry Management System
Bn Billion
BoU Bank of Uganda
CAR Combined Audit Report
CBC Competency-Based Curriculum
CGV Chief Government Valuer
CMTs Contract Management Teams
DCIC Directorate of Citizenship and Immigration Control
DDEG District Discretionary Equalization Grant
DMFAS Debt Management and Financial Analysis System
DSCs District Service Commissions
DWSSCG District Water Supply and Sanitation Conditional Grant
EACOP East African Crude Oil Pipeline
ECCMIS Electronic Court Case Management Information System
EFRIS Electronic Fiscal Receipting and Invoicing System
e-GP Electronic Government Procurement
E-LogRev Electronic Local Government Revenue Collection System
EMHS Essential Medicines and Health Supplies
EPS Express Penalty Scheme
ERC Enumeration and Registration Committee
FY Financial Year
G2B Government to Business
GDP Gross Domestic Product
GMS Grants Management System
GoU Government of Uganda
HCs Health Centres
HCMS Human Capital Management System
HLGs Higher Local Governments
ICT Information Communication Technology
IDA International Development Association
IESBA International Ethics Standards Board for Accountants
IFMS Integrated Financial Management System
IGFTRP Intergovernmental Fiscal Transfers Reform Program
IMCMHH Inter-Ministerial Committee on Menstrual Health and Hygiene
INTOSAI International Organization of Supreme Audit Institutions
IP Intellectual property
IRAS Integrated Revenue Management System
IS Information Systems
ISSAIs International Standards of Supreme Audit Institutions
KCCA Kampala Capital City Authority
KIS Kalangala Infrastructure Services
KOPGT Kalangala Oil Palm Growers Trust
LCs Letters of Credit
LEGS Local Economic Growth Support
LGRMIS Local Government Revenue Collection and Management System

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ACRONYM MEANING
LLGs Lower Local Governments
LST Local Service Tax
MDAs Ministries, Departments and Agencies
MEPS Minimum Energy Performance Standards
MHHM Menstrual Health and Hygiene Management
MIDAS Migration Information and Data Analysis System
MOFPED Ministry of Finance, Planning, and Economic Development
MoICT&NG Ministry of Information, Communications Technology and National Guidance
MoPS Ministry of Public Service
MoU Memoranda of Understanding
MSC Microfinance Support Centre
MTEF Medium Term Expenditure Framework
NAA National Audit Act
NBI National Backbone Infrastructure
NCDC National Curriculum Development Centre
NDP National Development Plan
NEC National Enterprises Corporation
NFASS National Food and Agricultural Statistical System
NMS National Medical Stores
NPA National Planning Authority
NPDRI National Petroleum Data Repository Infrastructure
NTR Non-Tax Revenue
NWSC National Water and Sewerage Corporation
OAG Office of the Auditor General
OSH Occupational Safety and Health
PAPs Project Affected Persons
PDCs Parish Development Committees
PDE Procuring and Disposing Entity
PDM Parish Development Model
PDMF Public Debt Management Framework
PDMIS Parish Development Model Information System
PFMA Public Finance Management Act
PFMR Public Finance Management Regulations
PIMS Project Implementation Management System
PISCES Personal Identification Secure Comparison and Evaluation System
PPC Physical Planning Committee
PPDA Public Procurement and Disposal of Public Assets Authority
PRF Parish Revolving Fund
PS/ST Permanent Secretary/Secretary to the Treasury
PSC Public Service Commission
RAPEX Rationalization of Government Agencies and Public Expenditure
SACCOs Savings and Credit Cooperative Societies
SDGs Sustainable Development Goals
SORA Shared Overall Risk Assessment
TAI Treasury Accounting Instructions
TELA Teacher Effectiveness and Learner Achievement System
TIN Tax Identification Number
Tn Trillion
TRT Technical Review Team
UBoS Uganda Bureau of Statistics

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ACRONYM MEANING
UDLS Uganda Driver Licensing System
UgIFT Uganda Intergovernmental Fiscal Transfer
UGX Uganda Shillings
ULRC Uganda Law Reform Commission
UNOC Uganda National Oil Company
UNRA Uganda National Roads Authority
URA Uganda Revenue Authority
URF Uganda Road Fund
URMCHSIP Uganda Reproductive Maternal and Child Health Service Improvement Project
USD United States Dollars
USMID Uganda Support for Municipal Infrastructure Development
USMID Uganda Support to Municipal Infrastructure Development
UTL Uganda Telecom Limited
UWEP Uganda Women Empowerment Project
VFM Value for Money
YLP Youth Livelihood Program

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GLOSSARY OF TERMS
TERM DEFINITION
Classified Expenditure The expenses and commitments incurred by an authorised agency for the
collection and dissemination of information related to national security interests
Contingent Liability A potential liability that may occur depending on the outcome of an uncertain
future event.
Domestic Arrears Domestic arrears refer to short-term debts incurred by Governments against
unpaid procurement invoices for supply of goods and services during the
financial year
External Debt Portion of a country's debt that was borrowed from foreign lenders including
commercial banks, Governments or international financial institutions.
Garnishee order A form of enforcing a judgment debt against a creditor to recover money.
Nugatory Expenditure Expenditure that does not achieve any result
Off-budget financing Off-budget refers to expenditure that is not funded through the budget
Recruitment Refers to the process of attracting, screening, selecting, and on boarding a
qualified person for a job, provided by an employer in another territory and the
preparation for their departure
Revolving Fund A fund that is continually replenished as withdrawals are made

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FOREWORD

This being my maiden Audit Report to Parliament, allow me to extend my gratitude to His
Excellency, the President of the Republic of Uganda, and the Parliament of Uganda for
entrusting me with the responsibility to lead the Office of the Auditor General. I also wish to
acknowledge my predecessor, the Auditor General Emeritus, Mr. Muwanga John F.S, for his
dedicated service to the country and his invaluable contributions to the development of financial
management in the public sector.

In accordance with my audit mandate, as stipulated under Article 163 of the Constitution of the
Republic of Uganda, 1995 and further amplified in the National Audit Act Cap. 170, I hereby
present my Annual Audit Report on the Government of Uganda Consolidated Financial
Statements, as well as the Financial Performance of Public Corporations and State Enterprises.

In line with the mandate, I audited the financial statements of 176 Ministries, Departments and
Agencies (MDAs), 64 Public Corporations and State Enterprises, 179 Projects, 1,344 Local
Governments and 743 Secondary Schools and Tertiary Institutions.

As part of my Office’s strategic objective to enhance the relevance of audits for improved
transparency, accountability, and service delivery, I undertook three (3) thematic audits focused
on: the Implementation of the Approved Budget, the Parish Development Model, and the
Management of the Pension Payroll. The latter was a follow-up to the Salary Payroll Report
issued the previous year.

Additionally, I undertook audits in response to stakeholder needs and emerging issues,

including 256 special audits and investigations, 29 Value for Money audits, 10 Information
System audits and 6 Engineering audits. Individual reports were issued in this regard.

In the pursuit of improving the quality of audits and ensuring that they add value to society, my
Office remains committed to enhancing quality control mechanisms and capacity-building
initiatives to meet international auditing standards and, above all, to respond to the
expectations of stakeholders.

I extend my sincere thanks to the Rt. Hon. Speaker of Parliament, the Finance, Planning and
Economic Development Committee, and the Accountability Committees for their support,
insights, and contributions towards improving the quality of audit reports. I commit to
continuing my support to the Parliamentary Oversight Committees during their discussions of
my audit findings.

I also express my appreciation to all stakeholders for the invaluable support rendered to my
office during the audit year. Finally, I thank my dedicated staff for their hard work, unwavering
commitment, and endurance throughout the audit year.

Edward Akol
AUDITOR GENERAL
31st December, 2024

xiii
INTRODUCTION

Mandate

In accordance with Article 163(3) of the 1995 Constitution of the Republic of Uganda, Sections
12 and 18 of the National Audit Act (NAA), Cap. 170, and the Public Finance Management Act
(PFMA), Cap. 171, I am required to audit and report on the public accounts of Uganda and all
public offices, including the Courts, Central and Local Government Administrations, Universities,
Public Institutions of like nature and any Public Corporations or other bodies established by Acts
of Parliament.

Section 12(b) of the NAA, requires my office to perform a range of audits, including Financial,
Value for Money, Engineering, Information Systems, Special, Government Investment
Procurements, Treasury Memoranda, Gender and Environment audits, as well as audits related
to any project or activity involving public funds. Additionally, Classified Expenditure audits are
conducted to ensure the transparency and proper use of public resources.

In compliance with Article 163(4) of the Constitution, I am required to audit and submit
accounts to Parliament annually for the year immediately preceding. This report is submitted in
compliance with the constitutional provision.

Purpose of the Report

The purpose of this report is to provide a summary of audit results for the audits that I
undertook from January to December 2024. These include;

(i) A report and Opinion of the Auditor General on the

a) Government of Uganda Consolidated Financial Statements of the Government of

the Republic of Uganda for the financial year ended 30th June 2024.
b) The Consolidated Summary Statement of Financial Performance of Public
Corporations and State Enterprises for the financial year ended 30th June 2024.

(ii) A summary of audit results from performance evaluation of Ministries, Departments,

Agencies, Commissions, Statutory Corporations and Local Governments.

(iii) A summary of audit results from audit of compliance with relevant regulatory
frameworks.

(iv) A summary of audit findings from other specialized audits, including Special audit Report
on Gratuity payments and Pension Payroll, Value for Money Audits, Special Audits, IT
and Engineering Audits conducted during the year.

(v) Status of implementation of the Treasury Memorandum.

14
Developments during the audit year

a) Combined Audit Report Approach

The Office of the Auditor General’s Strategic Objective is to conduct relevant and high impact
audits that enhance service delivery and stakeholder satisfaction. In line with this objective, the
OAG introduced the Combined Audit Report (CAR) this audit year.

The CAR is a comprehensive report that includes several sections: a financial audit report, key
findings on compliance with regulatory frameworks, an evaluation of the entity's performance,
and summaries of findings from other audit types such as Value for Money (VFM), Information
Systems (IS), and special audits, if applicable to the audited entity or project.

b) Rationalization of Government Agencies and Public Expenditure

On 22nd February 2021, the Government introduced the Rationalization of Government Agencies
and Public Expenditure (RAPEX) reform to enhance efficiency and effectiveness in service
delivery. The reform focused on reorganizing government institutions by adjusting mandates,
functions, strategies, and structures. Its main objectives were to eliminate duplications and
overlaps, reduce wasteful expenditure, and achieve both short-term and long-term savings.

The reform involved merging, mainstreaming and transferring the functions of several
government entities/institutions.

In the 2024 audit year, government agencies were rationalized, requiring a review of their
"going concern" status during the audit, as outlined in section 5.2 of the Treasury Accounting
Instructions, 2017. The "going concern" concept assumes that an entity will be able to operate
for the foreseable future, at least for the next 12 months. However, due to RAPEX, there were
significant concerns about the affected entities' ability to continue delivering services as before.

As a result, for entities where mergers had already been completed (i.e., before the end of FY
2023/24), I have reported on the appropriateness of the financial statements' presentation and
disclosure of their assets and liabilities.

For entities identified for merger but not yet concluded, I audited the financial statements for
the FY ending June 2024. Since the majority were set to cease operations on 1st October 2024,
I plan to conduct closure audits from January 2025 for the 3-month period ending 30th
September 2024. During these audits, I will assess compliance with the RAPEX reporting
guidelines issued by the Accountant General.

c) Citation of the Laws

The Uganda Law Reform Commission (ULRC), in line with its mandate, revised and updated the
Statute Book by preparing the 7th Revised Edition of the Principal Laws of Uganda. This process
involved updating, reorganizing, and consolidating all statutes from Independence up to 31st
December 2023 into a single statute book, commonly known as "The Red Volume."

15
The Revised Edition came into effect on 1st July 2024. As a result, when consolidating this
Report and compiling the individual entity/project audit reports for the FY 2023/24, the Auditor
General took the revised citations into account.

Summary of Audit Results

i) General Performance

At the beginning of the year, 2024, I undertook the Shared Overall Risk Assessment (SORA) to
determine audits and audit types to be undertaken. Out of the total audit population of 16,878
entities, I profiled 3,186 (19%), constituting approximately UGX.52.4Tn (99%) of the total GoU
initial approved budget of UGX.52.7Tn. Figure 1 below refers;

Figure 1: Total Audit Population and Planned Audits for 2024

Source: SORA Profiling results and analysis of audits undertaken at year end

•
As shown in Figure 1 above, I planned to undertake 3,002 audits, constituting UGX.52.3Tn
(approximately 99%) of the total initial government budget of UGX.52.7Tn. The planned audits
included 629 financial audits of MDAs, Public Corporations & State Enterprises, Districts and
Projects; 380 other audit types; 1,234 Lower Local Governments; and 759 selected Secondary
Schools & Tertiary Institutions.

By the end of the audit year (December 2024), 2,832 (94%) of the planned audits were
concluded and reported on, as detailed in Table below;

16
Table 1: Summary of Audit Performance for the audit year
SN Type of Entity/Audit Planned Audits Actual Audits in
Performance Progress
1 MDAs 162 156 6
2 Public Corporations & State Enterprises 70 64 6
3 Projects 179 179 0
4 Funds 6 5 1
5 Classified entities 39 7 32
6 Districts 135 124 11
7 Regional Referral Hospitals 16 15 1
8 Municipal Councils and Cities 41 36 5
9 Divisions 20 16 4
10 Lower Local Governments 1,234 1,168 66
11 Schools/Tertiary institutions 759 743 16
12 VFM Studies 33 29 4
13 Forensics/Special Audit 260 256 4
14 Engineering Audits 10 6 4
15 IS Audits 10 10 0
16 PSAs 9 0 9
17 International Audits 5 5 0
18 Treasury Memoranda 14 13 1
Total 3,002 2,832 170
Source: SORA Profiling results and analysis of audits undertaken at year end

The finalization of the 170 audits was delayed due to resource constraints caused by the
Pension and Gratuity Payroll Special Audit. The requirement for the entire audit staff to focus on
these Audit, limited the time available to conduct other planned audits.

The delayed audits will be completed between January and March 2025, and the findings
thereon will be included in the Consolidated Report for December 2025.

ii) Summary of Opinions

Of the financial audits concluded, the 579 Audit Opinions for the MDAs; Public Corporations &
State Enterprises; Projects; Funds; Districts; Cities and Municipalities and Regional Referral
Hospitals were analysed to ascertain the trend over the years. The table below refers;

Table 2: Summary of Current Year Audit Opinions

SN Type of Entity/Audit Un-qualified Qualified Adverse Disclaimer
1 MDAs 152 3 1 0
2 Public Corporations & State Enterprises 62 2 0 0
3 Projects 179 0 0 0
4 Funds 4 1 0 0
5 Districts 117 7 0 0
6 Regional Referral Hospitals 15 0 0 0

17
 SN Type of Entity/Audit Un-qualified Qualified Adverse Disclaimer
7 Municipal Councils and Cities 34 2 0 0
Total 563 15 1 0

From the above analysis, 563 (97.2%) entities had Unqualified Opinions, 15 (2.6%) had
Qualified Opinions while 1 (0.2%) entity had Adverse Opinion. No entity received a disclaimer of
Opinion.

The trend of the Audit Opinions over the years is shown in table below;

Table 3: Trend of Opinions over the FYs

SN Type of Opinion 2023/24 2022/23 2021/22 2020/21

1 Unqualified 563 613 654 502

2 Qualified 15 10 13 27
3 Adverse 1 0 1 0
4 Disclaimer 0 2 1 0
Total 579 625 669 529

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PART I: REPORTS ON CONSOLIDATED FINANCIAL STATEMENTS

SECTION 1: REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED

FINANCIAL STATEMENTS OF THE GOVERNMENT OF THE REPUBLIC OF
UGANDA FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2024

THE RT. HON. SPEAKER OF PARLIAMENT

Opinion

I have audited the accompanying Consolidated Financial Statements of the Government of the
Republic of Uganda, which comprise the Statement of Financial Position as at 30th June 2024,
the Statement of Financial Performance, the Statement of Changes in Equity, and the
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 accompanying financial statements of the Consolidated Financial Statements
of the Government of the Republic of Uganda for the financial year ended 30th June 2024 are
prepared, in all material respects, in accordance with Section 49 of the Public Finance
Management Act (PFMA), Cap 171, and the Financial Reporting Guide, 2024.

Basis for Opinion

I conducted my audit in accordance with the 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 Treasury in accordance with the Constitution of the Republic of Uganda
1995 (as amended), the National Audit Act, Cap 170, 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.

Key Audit Matter

Key audit matters are those matters that, in my professional judgment, were of most
significance in my audit of the financial statements of the current period. I have determined
that there are no key audit matters to communicate in my report.

Emphasis of Matter

Without qualifying my opinion, I would like to draw the readers’ attention to the following
matters which have been disclosed under Notes 19, 20, 23 and 24 to the financial statements;

19
1.1 Rollout of Asset Management and Reporting

During the Financial Year (FY) 2023/24, the Government rolled out the recognition of
non-current asset values in the financial statements using the historical cost method.
The Accountant General guided Accounting Officers to form Valuation Committees and
value all non-current assets using simplified valuation guidelines.

I noted that during the FY, Government reported consolidated non-current assets
amounting to UGX.107.076Tn, comprised of non-produced assets (UGX.61.075Tn) and
produced assets (UGX.46.0Tn), excluding capital investments. The assets increased by
UGX.80.807Tn (307%) from the previous year’s balance of UGX.26.269Tn.

I noted that the Valuation Committees were not competent to make reliable estimates.
These assets have therefore been recognized at historical costs using available
information and stipulated asset management framework and guidelines provided by the
Accountant General.

This initial recognition phase shall be followed by asset validation and revaluation to
arrive at fair values for all tangible assets recognized in the financial statements of the
individual Ministries, Departments, Agencies and Local Governments, as well as the
Consolidated Financial Statements of Government. The asset validation is a work in
progress and is expected to continue through the 2024/2025 Financial Year, after which
the asset valuation will be initiated.

The Accounting Officer explained that the validation exercise of the non-current assets
will be undertaken in the FY 2024/2025 after which a revaluation process for different
asset classes would be initiated and subsequently tested for impairment.

Recommendation

I advised the Accountant General to follow through with the validation and valuation
processes to enhance the integrity, transparency and accountability of the financial
statements.

1.2 Non-Performing Receivables - UGX.0.919Tn

Included in the receivables under Note 20 are loans to private and state enterprises of
UGX.7.7Tn, which includes non-performing receivables of UGX.0.919Tn and have not
been performing for over 20 years. A provision of bad debts of UGX.0.247Tn has been
made in this regard.

The amounts appear irrecoverable and hence, overstating the receivables. I further
noted that some of the private enterprises no longer exist and those that are still
existing do not recognize the liability in their financial statements. Under the
circumstances, the non-performing receivables in question may not be recoverable.

The Accounting Officer explained that attempts to seek write-off approval from the
Attorney General and Parliament had not yielded results.

20
 Recommendation

I advised the Accounting Officer to continue engaging the relevant stakeholders to

explore ways of recovering the amounts or initiate the process of write-off for the
dissolved companies. In addition, for existing entities, government should explore the
possibility of turning the outstanding amounts into equity.

1.3 Continued Increase in Payables

I reviewed the statement of financial position and the disclosure on Note 25 and noted
an increase in payables from UGX.10.502Tn in the FY 2022/2023 to UGX.13.814Tn by
the end of FY 2023/2024, an increase of 31.54%.

Further analysis revealed that new payables accrued stood at UGX.6.639Tn compared to
only UGX.3.679Tn paid during the year.

This indicates that the rate at which Government contracts domestic arrears is much
higher than the rate of payment, leading to continued accumulation of domestic arrears.
This may be attributed to failure to enforce the budget commitment control guidelines.

The Accounting Officer attributed the increasing payables to inadequate budgeting, cash
flow constraints and competing Government demands.

Recommendation

I advised the PS/ST to ensure adequate budgeting for domestic arrears and enhance
enforcement of commitment control to ensure sustainability.

1.4 Management of Letters of Credit

Disclosed under Note 19 are prepayments and advances of UGX.1.472Tn which

comprised of Letters of Credit of UGX.223.23Bn, Other prepayments of UGX.478.865Bn
and Advances of UGX.770.161Bn.

I however noted that some Letters of Credit worth UGX.219.98Bn, were classified under
Other prepayments and Advances. In addition, 101 letters of credit worth UGX.154.84Bn
had not performed for more than a year, out of which 80 letters of credit worth
UGX.124Bn (80.1%) had not performed for 2 years. Further, the Government incurred
UGX.3Bn as a cost for renewals, extensions and commissions for letters of credit. I
observed that there was no strict policy guidance on management of letters of credit,
extensions, and renewals.

The delays in the performance of LCs, holds up financial resources for other priority
activities, besides the avoidable extra costs incurred in renewals and extensions.

The Accounting Officer explained that a circular was issued in 2022, guiding on the
management of LCs which includes balances to be returned to the source account in

21
 case of non-performance after three months, among others. However, I noted that the
circular had not been enforced.

Recommendation

I advised the Accountant General to review the classification of letters of credit and the
current policies to ensure enforceability to optimize resources.

1.5 Classified Expenditure

As disclosed under Note 8, a total of UGX.1.271Tn relates to classified expenditure,

while under Note 26, a total of UGX.1.672Tn relates to classified assets acquired during
the year. In compliance with Section 23 of the Public Finance Management Act, Cap 171
(Classified Expenditure), this expenditure is audited separately and a separate audit
report issued.

Other Matter

I consider it necessary to communicate the following matters other than those presented or
disclosed in the financial statements;

1.6 Slow recovery of Accumulated Arrears of Revenue

Paragraph 10.13.2 of the Treasury Instructions, 2017, requires Accounting Officers or

receivers of revenue authorized by the Secretary to the Treasury, to allow credit facilities
to ensure that written instructions are issued for the issuance of invoices, collecting and
reporting of outstanding revenue and maintaining debtor’s records. Reference to the
authority of the Secretary to the Treasury shall be indicated in all invoice Registers and
debtors’ records maintained for the purpose.

Analysis of the arrears of revenue revealed the following;

i) Out of arrears of revenue (NTR) as at 30th June 2023 worth UGX.0.475Tn, only
UGX.0.107Tn was collected during the year, leaving UGX.0.367Tn (77.4%)
uncollected for two consecutive years as of 30th June 2024.
ii) A total of 45 votes had accumulated arrears of revenue from previous financial
years of UGX.0.077Tn, with zero collections/recoveries made during the year.
iii) By 30th June 2024, the entities had accumulated arrears of revenue amounting to
UGX.0.722Tn.

Continued accumulation of arrears of revenue deprives Government, of the much-

needed financial resources and may result in loss of public funds.

The Accounting Officer attributed the occurrence to inadequate policy guidelines in

recognizing doubtful debts and uncollectible arrears.

22
 Recommendation

I advised the PS/ST to implement an effective policy to manage revenue and the
resulting receivables.

1.7 Implementation of the Roadmap to Accrual Accounting

The Government is continuing to transition its accounting and financial reporting to the
accrual basis of accounting based on the International Public Sector Accounting
Standards (IPSASs), to enhance the comprehensiveness, timeliness and quality of
financial information for decision-making.

I noted that a phased implementation approach was adopted following a revised

roadmap for the transition. During the financial year under review, the Asset Accounting
Policy and Guidelines for all non-current assets aligned with GAAP and GoU legal
framework were adopted. However, I noted there was no clear roadmap towards
achieving adherence to the IPSAS.

Due to the lack of a clear road map, I was not able to assess the adoption of the IPSASs
project.

The Accounting Officer explained that the Accrual Roadmap which was issued was a
living document and will be revised from time to time, to ensure comprehensiveness
during the phased implementation of Accrual Accounting.

However, the roadmap was not shared for evaluation during the audit.

Recommendation

I advised the Accountant General to develop, implement and monitor an Accrual

Roadmap with clear milestones towards achieving full adoption of the IPSAS standards.

1.8 Pension and Gratuity Supplementary releases without requests from

Accounting Officers

Regulation 18 (2) of the Public Finance Management Regulations (PFMR) 2016, requires
that an Accounting Officer who intends to spend money as supplementary expenditure
shall request the Minister's approval in writing.

I noted that 185 entities received supplementary funding worth UGX.382Bn for pension
and gratuity expenditures in FY 2023/2024, without any written requests from the
Accounting Officers, as summarized in the table below;

Table 4: Supplementary expenditure not requested by Accounting Officers

Sn Number of Pension Gratuity Total Amounts
beneficiary entities (UGX Bn) (UGX Bn) (UGX Bn)
1 8 MDAs 15.209 0.793 16.002
2 177 LGs 179.918 186.080 365.998
Total 382
Source: OAG analysis

23
 Although the MoFPED provided the schedules of requests for the supplementary budget,
they were not reconciled with the actual amount received by the respective MDAs and
LGs.

The practice of granting supplementary funds to MDAs and LGs without their formal
requests is irregular and contravenes the Public Finance Management Regulations. It
also undermines internal controls regarding the management of public funds as well as
preventing the Accounting Officers from taking responsibility.

In his submission, the Accounting Officer explained that after estimates submission in
2023/24, it was observed that some statutory obligations, such as transfers to Local
Governments and subventions, were underfunded due to budget cuts, leading to
inadequate Pension and Gratuity allocations for several institutions, majorly LGs. He
further explained that a supplementary budget was issued in Quarter One of FY
2023/24, to align the allocations with MoPS recommendations.

Recommendation

I advised the PS/ST to ensure that supplementary requests are obtained from
Accounting Officers before they are compiled and sent to Parliament for Appropriation,
to promote compliance and accountability.

Other Information

The Accounting Officer is responsible for the other information. The other information
comprises the statement of responsibilities, a statement from the Hon. Minister of Finance,
Planning and Economic Development, a statement from the Secretary to the Treasury, a
statement from the Accountant General, and other supplementary information. The other
information does not include the financial statements and my auditors’ report thereon.

My opinion on the financial statements does not cover the other information and I do not
express an audit opinion or any form of assurance conclusion thereon.

In connection with my audit of the financial statements, my responsibility is to read the other
information and, in doing so, consider whether the other information is materially consistent
with the financial statements, or my knowledge obtained in the audit, or otherwise appears to
be materially misstated. If, based on the work I have performed, I conclude that there is a
material misstatement of this other information; I am required to report that fact. I have
nothing to report in this regard.

Management’s Responsibilities for the Financial Statements

Under Article 164 of the Constitution of the Republic of Uganda, and Section 43 of the Public
Finance Management Act, Cap 171, the Accounting Officer is accountable to Parliament for the
funds and resources of the Government of Uganda. The Accountant General is appointed as the
Accounting Officer and Receiver of Revenue for the Consolidated Fund.

24
The Accountant General is therefore responsible for the preparation of financial statements in
accordance with the requirements of the Public Finance Management Act, Cap 171, and the
Financial Reporting Guide 2024, and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material
misstatements, whether due to fraud or error. In preparing the financial statements, the
Accountant General is responsible for assessing the Government’s ability to continue delivering
its mandate, disclosing, as applicable, matters related to affecting the delivery of the mandate
of the Government of Uganda and using the Financial Reporting Guide, 2024, unless the
Accountant General has a realistic alternative to the contrary. The Accountant General is
responsible for overseeing the Government’s financial reporting process.

In preparing the financial statements, the Accountant General is responsible for assessing the
Government’s ability to continue delivering its mandate, disclosing, as applicable, matters
related to affecting the delivery of the mandate of the Government of Uganda and using the
Financial Reporting Guide, 2024, unless the Accountant General has a realistic alternative to the
contrary.

The Accountant General is responsible for overseeing the Government’s financial reporting
process.

Auditor's Responsibilities for the Audit of the Financial Statements

My objectives are to obtain reasonable assurance about whether the consolidated financial
statements of government as a whole are free from material misstatement, whether due to
fraud or error and to issue an auditor’s report that includes my opinion. Reasonable assurance
is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISSAIs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.

As part of an audit in accordance with ISSAIs, I exercise professional judgement and maintain
professional skepticism throughout the audit. I also;

 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 to design audit

procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Government’s internal control.

 Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by the management.

25
 Conclude on the appropriateness of management's use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the
Government’s ability to deliver its mandate. If I conclude that a material uncertainty
exists, I am required to draw attention in my auditor's report to the related disclosures
in the financial statements or, if such disclosures are inadequate, to modify my opinion.
My conclusions are based on the audit evidence obtained up to the date of my auditor's
report. However, future events or conditions may cause the Government to fail to deliver
its mandate.

 Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves 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 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 18 (1) of the National Audit Act (NAA), Cap 170, I report to you,
based on my work described on the audit of Financial Statements that, except for the matters
described in Sections 2 and 3, and those raised below, whose effect has been considered in
forming my opinion on the 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.

1.9 Review of Share Purchase in M/s ROKO Construction Ltd

On 21st July 2022, the Parliament of Uganda passed a resolution authorizing the
Government to acquire 150,000 preference shares in M/S ROKO Construction Ltd worth
UGX.207.013Bn. I further noted that the Clerk to Parliament communicated to MoFPED
to pay UGX.207.13Bn, which was subsequently paid, resulting to an excess payment of
UGX.117Mn.

26
 A share subscription agreement was signed on the 28th day of July 2022 between
MoFPED on behalf of the Government of Uganda and the construction company.

A review of the share purchase process revealed the following:

1.10 Irregular purchase of shares by Government

Section 22(1) of the Public Finance Management Act Cap 171, states that a vote shall
not enter a contract, transaction, or agreement that binds the Government to a financial
commitment for more than one financial year or which results in a contingent liability,
except where the financial commitment or contingent liability is authorized by
Parliament.

Section 90 of the Companies Act Cap 106 further provides that a certificate, under the
common seal of the company or any other title evidencing securities under the Act or
any other law, specifying any shares held by any member shall be prima facie evidence
of title of the member to the shares.

A review of the company records at the Uganda Registration Services Bureau (URSB)
revealed the following:

a) The company, in a special resolution dated 8th October 2021 and filed at URSB
on 20th July 2022, resolved that the company creates preference redeemable
shares each valued at UGX.1,000,000 and issued at a premium of UGX.380,367
per share. The resolution also provided for the rights attached to the redeemable
shares.
b) In a subsequent resolution dated 22nd October 2021, and filed at URSB on 25th
July 2022, the company resolved that 150,000 preference redeemable shares of
UGX.1,000,000 issued at a premium of UGX.380,367 per share be allotted to the
Government of Uganda. In a special resolution of the company dated 22nd
October 2021 and filed with the URSB on 14th July 2022, the company resolved
to increase its share capital from UGX.15Bn to UGX.222.13Bn and to create
150,000 preference redeemable shares to be allotted to Government of Uganda.
c) The company filed an amended company Memorandum and Articles of
Association for the company with the URSB on 20th July 2022 in which the
company indicated its share capital as UGX.222.130Bn divided into 15,000
ordinary shares of UGX.1,000,000 each and 150,000 redeemable preference
shares issued at a premium of UGX.380,367 per share.

In light of the above, I noted that the process of purchase of shares and consequently
binding Government, had been completed before the approval of Parliament as noted by
the following facts.

i) The share certificate issued by the company for the 150,000 redeemable shares
for the Government, was issued on the 22nd day of October 2021.
ii) In a Company resolution made on the 22nd of October 2021 at an extraordinary
meeting, the company resolved that 150,000 preference redeemable shares, be
created and allotted to the Government of Uganda.

27
 iii) The company Return of Allotment for shares dated 22nd October 2021 provided
that 150,000 preference shares had been allotted to the Ministry of Finance,
Planning and Economic Development for an amount of UGX.207.13Bn.

This implied that the prior allotment and purchase of shares were done before
Parliament's approval. Furthermore, the failure to follow proper process by the entity
undermined the controls in place and may lead to legal disputes in future.

This may be attributed to lack of guidelines and procedures regarding Government

bailouts and investments. No management responses were provided in this regard.

Recommendation

I advised the PS/ST to review the transaction to mitigate any legal risk that may arise,
otherwise, strict adherence to Government procedures is required. Additionally, the
Government should put in place guidelines and clear procedures regarding Government
bailouts and investments.

1.11 Review of Investment in M/s Dei-Biopharma Ltd - UGX.723.4Bn

In April 2024, Parliament approved a supplementary budget of UGX.1.106Tn out of

which UGX.578.4Bn was meant to support a private company, M/s Dei-Biopharma Ltd,
to meet its debt obligations and operational requirements. This payment followed the
Government's initial investment in the company of UGX.70Bn which had been
appropriated in the Budget of FY 23/24, and UGX.75Bn which was further added in
December 2023. Cumulatively, the Government has so far invested UGX.723.4Bn as
financial support.

I reviewed the investment and observed the following;

i) There was no valuation report to establish the net worth of the company in
which Government was investing and as such, I could not confirm whether
Government received shares worth the value.
ii) I was not provided with the Shareholder’s agreement of the Government
investment in the company.
iii) The Government has yet to receive the share certificates of the company.

Recommendation

I advised the PS/ST to engage the Attorney General and the company to ensure that the
purchase agreement and share certificates are submitted to the MoFPEDto mitigate any
legal risk that may arise.

Edward Akol
AUDITOR GENERAL
31st December, 2024

28
SECTION 2: REPORT ON THE AUDIT OF COMPLIANCE WITH THE RELEVANT
REGULATORY FRAMEWORK

The Office of the Auditor-General conducted compliance audits on selected key subject matters.

The primary objective of the audit was to obtain sufficient and appropriate audit evidence to
form a conclusion on whether the Consolidated Financial Statements complied with the relevant
identified criteria.

My audit was conducted in accordance with the International Standards of Supreme Audit
Institutions (ISSAI 4000) on compliance auditing and it covered the following focus areas;

 Management of the Pension and Gratuity Payroll

 Management of the Parish Development Model
 Procurement Management

Relevant audit criteria

The criteria for the audit were based on Acts of Parliament, regulations, and manuals/guidelines
designed to ensure compliance with laws governing Pension and Gratuity, the Parish
Development Model and procurement management.

These include;

 Ministerial Statement on the PDM to Parliament

 PDM Governance and Operations Manual
 PPDA Act Cap 205, Regulations and Guidelines
 Pension Act, Cap 89 and Regulations.

Audit Methodology

My audit was conducted based on the information and records provided by MDAs and LGs.

In executing this audit, various approaches were exercised which included;

a) Document review;
b) Physical inspections;
c) Interviewing relevant officials;
d) Analyzing data provided; and
e) Physical headcount of pensioners and/or beneficiaries.

Audit Findings

The material findings with respect to the compliance criteria for the applicable subject matters
were reported in individual reports, which were issued separately. However, this section covers
findings that affect public policy on accountability and governance.

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1.12 Special Audit on the Pension and Gratuity Payroll

I undertook a special audit on gratuity and pension payroll management processes and
provided recommendations for improvements as requested by the Hon. Minister of
Finance, Planning and Economic Development.

The overall objective of the special audit was to establish the effectiveness of pension
and gratuity management processes, validate 72,285 pensioners/ beneficiaries on the
GoU pension payroll and recommend remedial measures. The special audit covered a
period from FY 2019/20 to 2023/24.

Below are the key findings;

i) I noted that out of 72,206 pensioners/beneficiaries validated on the Public

Service payroll, 61,199 (84.8%) were fully verified, 756 (1%) not verified, while,
10,251 (14.2%) did not show up. In addition, 4,538 individuals had not accessed
the pension payroll by the end of June 2024 and these were captured as new
records. Of these new records, 4,057 were verified and included in my
determination of the entities’ pension and gratuity estimates, while 481 were not
verified and therefore not included in my determination of the pension and
gratuity estimates.

ii) I noted that 1,502 pensioners/beneficiaries were overpaid gratuity benefits of

UGX.11.393Bn. These overpayments were in 19 MDAs and 115 LGs. This amount
is recoverable.

iii) I noted that 2,193 pensioners/beneficiaries were overpaid pension benefits of

UGX.8.98Bn in 23 MDAs and 104 LGs. This amount is also recoverable.

iv) I re-computed the expected pension and gratuity estimate for the year 2024/25
as UGX.974.664Bn, to cater for 80,963 confirmed pensioners/beneficiaries
including pension and gratuity arrears of UGX.74.245Bn and non-traditional
pensioners of UGX.33.732Bn and expected retirees for the FY 2024/2025. The
Government will require an additional source of UGX.42.894Bn to cater for all
pension, gratuity and arrears in the FY 2024/2025 compared to the total revised
budget for FY 2023/2024 of UGX.931.77Bn.

v) A total of 62 MDAs and 176 LGs had an initial approved pension, gratuity and
arrears budget of UGX.3Tn for the period under review, and also obtained
supplementary funds of UGX.0.17Tn (MDAs) and UGX.0.600Tn (LGs) resulting in
a revised budget of UGX.3.773Tn, out of which UGX.3.685Tn (98%) was
released resulting in a funding shortfall of UGX.0.088Tn (2%).

vi) Out of the funds released of UGX.3.685Tn, UGX.1.405Tn in 62 MDAs and

UGX.1.903Tn in 176 LGs were utilized, resulting in un-utilized funds of
UGX.0.38Tn (10%).

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vii) Funds amounting to UGX.14.630Bn in 19 MDAs and 36 LGs, were diverted to
other activities, while UGX.66.902Bn in 29 MDAs and 126 LGs was charged on
wrong account codes.

viii) I noted provisions in the Pension Act (Cap 89) that discriminate based on
gender. Specifically, Section 16(b) excludes husbands from benefiting from
pension assignments, while Section 20 of the Act only mentions widows and not
widowers. Additionally, marriage gratuity provisions in Sections 10 and 17
exclude men. These discriminatory practices violate the constitutional principle of
gender equality and fairness under the Constitution of Uganda.

ix) There is a contradiction between the Pension Act and the Succession Act (Cap
268) regarding the definition and scope of beneficiaries. While the Pension Act
focuses on widows and children, the Succession Act expands the category to
include other dependents.

x) I noted discrepancies in pension payments, particularly for retirees over 75 years

old. Some pensioners continued to receive reduced pensions beyond the
prescribed 15-year period, leading to an increased financial burden on the
government in terms of arrears.

xi) There was a gap in the Pension Act regarding retirees' ability to elect between a
full annuity or a commuted pension gratuity. The PSF 18 form did not provide
retirees with this option, inadvertently making the commuted pension gratuity
mandatory.

xii) Pension indexation remained a complex issue, with varying interpretations of

regulatory provisions and inconsistent implementation. The indexation of pension
based on inflation which should be annually was last done in 2021/2022 due to
insufficient funding.

xiii) The court ruling on employees who transferred from Uganda Posts and
Telecommunications Corporation (UPTC) to Uganda Telecom Limited (UTL) had
significant implications for pension computations on employees on the transfer of
service scheme. The ruling may affect the computation length of service where
there is a continuation of service and subsequently impact the calculation of
gratuity and pension.

xiv) Circumstances and reforms that impact the sustainability of the pension system
were identified and they include;

a) Early Retirement: The policy on early retirement, especially for employees

retiring at 45 years or younger, leads to long-term pension commitments
that could strain public resources.
b) Enhanced Pay for Science Employees: The recent salary increases for
science professionals resulted in an unintended incentive for early
retirement and an astronomical increase in pension and gratuity liabilities.

31
 c) The Administration of the Judiciary Act significantly enhanced pensionable
emoluments for judicial staff, leading to an exponential increase in
pension liabilities without a comprehensive impact assessment.

Recommendations

I advised;

i) The Ministry of Public Service to liaise with responsible stakeholders to ensure

that the laws and policies are harmonized to enhance efficiency and
effectiveness in pension management.

ii) The Ministry of Public Service to streamline pension indexation by expediting

action to operationalize the Cabinet decision to fast-track repeal of Regulation 5.
Also, annually compute the impact of Price indexation and engage the Ministry of
Finance, Planning and Economic Development to provide a budget to cater for
that increase.

iii) Government to undertake a comprehensive study on the sustainability pension

and gratuity reforms and take appropriate action. In addition, I advised the
Ministry of Public Service to engage all relevant stakeholders to fast-track the
pension reforms to ensure sustainability.

iv) The Ministry of Public Service to enforce strict timelines to ensure the migration
of all entities to a unified payroll management system, and expedite the full
implementation of HCMS, while simultaneously strengthening monitoring and
enforcement of compliance with HCMS controls. In addition, ensure completion
of the integration of HCM, PBS and the IFMS to automate reconciliation and
feedback.

v) The Ministry of Public Service and the Ministry of Finance to enhance internal
control systems to address disparities in computation of pension and gratuity and
to ensure the accuracy of payments of individual pensioners. Automation
processes and integration of the system are highly recommended.

1.13 Implementation of the Parish Development Model

The Parish Development Model (PDM) is a strategy for service delivery by the
Government of Uganda to improve the incomes and welfare of all Ugandans at the
household level by transforming 39% of households from a subsistence economy to a
money economy as approved by Parliament, whose outcomes will be measurable in the
FY 2024/2025 at the closure of the NDP III.

The PDM is implemented under seven (7) pillars and the primary pillar is the “Agriculture
Value Chain Development (Production, Storage, Processing, and Marketing)”. The other
pillars include: Infrastructure and Economic Services; Financial Inclusion; Social
Services; Community Mobilization and mindset change; Parish Development
Management Information System; and Governance and Administration. In the FY

32
2023/2024, Parliament appropriated UGX.1,107.487Bn for the PDM Programme, of
which UGX.1,059.4Bn was for the Parish Revolving Fund (PRF) to finance 10,594 PDM
SACCOs in 176 LGs and Kampala Capital City Authority (KCCA).

Below are the key observations from the thematic audit of the PDM:

i) I was not provided with evidence for the identification of 5,099 PDM parish/ward
priorities in 115 LGs, using the format prescribed in the guidelines for onward
submission to LLGs and HLGs. In addition, I did not obtain evidence that the 25
participating MDAs aligned their work plans to the pillar implementation action
plans.

ii) A review of the status of the PDM data collection from the Parish Development
Model Information System (PDMIS) National Household Registration Reports as
of April 2024, revealed that household-level data collection was at 79.93%
progress level, while the population registered was only at 46.30% progress
level. This data should have been the basis upon which the population would be
profiled to identify qualifying beneficiaries, as well as facilitate periodic reviews
and impact assessments.

iii) I noted that 2,985 PDM Savings and Credit Cooperative Societies (SACCOs) in
127 LGs, did not have registered offices on their documents; 567 PDM SACCOs in
41 LGs’ registered offices did not exist, while 2,898 PDM SACCOs in 121 LGs did
not have evidence of a signboard showing their names and address.

iv) Out of the expected seven (07) modules of the PDMIS, two (02) modules were
fully implemented, two (02) - modules were partially implemented, and 3
modules were not implemented. I further noted that the WENDI mobile
application platform used by SACCOs to receive funds, is yet to be integrated
with participating Government-owned banks.

Key policy Recommendations

i) The Accounting Officers of LGs should ensure that Parish Development

Committees (PDCs) and LLGs are trained in the prioritization and incorporation of
PDM activities in the budgets and work plans and ensure that all PDCs are fully
constituted and functional.

ii) The Accounting Officer of the Uganda Bureau of Statistics (UBOS) in liaison with
the Ministry of Information, Communications Technology and National Guidance
(MoICT&NG) and the PDM Secretariat, should integrate the results of the census
into the PDMIS data collection and registration module, to facilitate profiling and
identification of subsistence households.

iii) The PDM Secretariat should engage the Ministry of Finance, Planning and
Economic Development (MoFPED) for funding to establish offices. In the
meantime, the Accounting Officer should provide office space and cupboards at
the LLGs.

33
 iv) The Accounting Officer of MoICT&NG should engage the MoFPED, to allocate
additional funding to ensure full implementation of the PDMIS and integration of
the WENDI platform to all participating banks.

1.14 Procurement Management

The Government spending on procurement of goods and services is substantial. It is

essential that government procurements are undertaken with due regard to economy,
efficiency, transparency, accountability and fairness during the acquisition of goods and
services.

The Government of Uganda through the E-Procurement System has endeavoured to

automate the public procurement process which enables the interactions of Government
to business services (G2B). With the system, a number of Government entities have
moved their procurement processes in relation to the purchase of goods, works, services
and non-consultancy services online. This is in a bid to help the Government ensure the
efficiency of public procurement with the standardization of electronic documents,
supplier registration, goods and services information and to streamline public
procurement transactions for efficient government service delivery.

The following key findings were observed, the details of which were included in the
statutory entity reports issued;

i) Out of 72 entities, 11 (15%) undertook sixty-three (63) unplanned procurements

worth UGX.59.02Bn. There is a risk of such entities exceeding their procurement
budgets, potentially leading to domestic arrears. This was caused by poor
planning and budgeting.

The Accounting Officers explained that the procurements were initiated in prior
periods and completed in the current year and thus not included in the current
year’s plans.

ii) I noted the splitting of nineteen (19) procurements worth UGX.2.40Bn, without
following the criteria, contrary to Regulation 10 of the PPDA (Rules and Methods
for Procurement of Supplies, Works and Non-Consultancy Services) Regulations,
2023.

This was noted in five (7%) out of 72 sampled entities. Although the practice
reduces reliance on a single provider and may involve various expertise, there is
risk of collusion by suppliers, which undermines fair competition. In addition, the
entities lose out on cost efficiency from bulk buying.

iii) Irregular initiation of procurements was noted in 8 (11%) entities, where twenty-
one (21) procurements worth UGX.42.79Bn were undertaken. The procurements
lacked requirements such as approval from the Accounting Officer and
confirmation of availability of funds. There is risk of financial over commitment,
which leads to budgetary constraints in future periods thus impacting the
entities’ ability to deliver their mandates.

34
 The Accounting Officers attributed the above to the need to undertake
emergency procurement of critical goods and services.

iv) Seventy-nine (79) procurements worth UGX.25.45Bn were undertaken by 13

entities (18%) out of the sampled 72, without obtaining market prices to support
the estimated values of the procurements. This leads to award of contracts at
unreasonable and uneconomical prices.

v) I noted that 79 procurements worth UGX 1,062.45Bn in fourteen (14) entities

took an average of six (6) months from initiation to final contract signing.
Delayed procurements hinder timely service delivery and increase contract costs
through inflation/fluctuations in prices and/or exchange rates.

The Accounting Officers explained that the delays were due to delayed responses
from various stakeholders during the procurement process.

vi) Ten (10) entities, out of 72 procured 44 contracts worth UGX.47.13Bn without
requiring performance security. This exposes the entities to financial risk, when
contractors fail to fulfill their obligations and there isn’t any recourse to
recovering the funds, leading to projects being delayed or rendered incomplete.

vii) I noted 5 entities that undertook 14 procurement evaluation processes without

following the prescribed evaluation criteria as stipulated in the bidding
documents, contrary to regulation 5(1) for PPDA (Evaluation Regulations), 2023.
These procurements were worth UGX.2.93Bn.

This undermines fair competition, leading to perceptions of bias or favoritism in

contract awards. In addition, it exposes entities to legal challenges from
unsuccessful bidders, administrative reviews leading to delays in contract
implementation and additional costs in the form of legal fees.

viii) A review of the use of e-GP revealed the following:

a) There has been a delay in rolling out e-GP to government entities. Only
36 (33 MDAs and 3 LGs) out of the planned 200 MDAs/LGs (mediums
term planned entities) have been onboarded to the e-GP system,
representing 18%. These 36 entities are using the system partially due to
the incomplete development of the system.

b) Non-compliance with the Standard Bidding financial proposal format.

There was non-compliance with the standard pricing schedule provided
by the PPDA. I was not able to confirm how the amounts charged for
item were arrived at.

c) I noted that of the 2 proposed modules, all entities enrolled on the e-GP
System were using only the procurement module. The supplier and
oversight portals could not use or view the contents of the disposal
function.

35
 d) Failure by the System to generate Procurement Reports. A review of the
reporting functionality under the oversight module indicated that the
interface was not functional as it returned an error upon selection.
e) I noted procurements which were processed outside the e-GP System in
the 36 onboarded entities which undermines the Government’s
investments in ICT Systems.

As technology continues to evolve, the risk of the current e-GP system becoming
obsolete increases before other entities are onboarded. The slow implementation
negatively impacts on the intended service delivery and undermines the
attainment of the intended benefits, including enhanced transparency, efficiency
and cost savings.

Recommendations

 I advised the Accountant General to expedite the completion of the system

design and development and roll-out the implementation of the e-GP system to
other MDAs/LGs to realise the full potential of electronic procurement in
enhancing government efficiency, transparency, and accountability.

 I advised the Accounting Officers to;

i) Enhance procurement planning processes by undertaking comprehensive needs

assessments to ensure the procurement activities align with budget allocations.
In instances of departure from the procurement plans, the PDEs should review
and update the procurement plans accordingly.

ii) Avoid contract splitting, unless justifiable reasons for are explicitly documented
and approved.

iii) Ensure the PDEs undertake adequate procurement planning to avoid the
purported emergency procurements. In addition, the Accounting Officer should
strengthen controls on procurement initiation to enhance adherence to the
regulations.

iv) Ensure market assessments are done before procurement initiation to avoid
overestimation of costs of items/materials, which potentially lead to
overpayments.

v) Streamline the procurement processes and timely engage the various

stakeholders in the procurement process to reduce delays.

vi) Ensure that all contractors for supplies and works provide performance security
for all qualifying procurements to mitigate financial risks associated with non-
performance of contracts.

36
 vii) Enforce adherence to the evaluation criteria in the bidding documents to
promote transparency and fairness in the procurement process which builds trust
among bidders and the public.

 The Government should address the e-GP system failures and shortcomings to
achieve the intended benefits of the system, including enhanced transparency,
efficiency and cost savings.

Conclusion

The evidence obtained from the compliance audit of Government of Uganda on management of
the Government Pension and Gratuity Payroll, Parish Development Model and Procurement
management subject matters is sufficient and appropriate to provide a basis for my conclusion.

Based on the work performed described in this report, except for the findings stated above,
nothing has come to my attention that causes me to believe that the subject matters are not in
compliance, in all material respects, with the relevant criteria.

Edward Akol
AUDITOR GENERAL

31st December, 2024

37
SECTION 3: REPORT ON PERFORMANCE EVALUATION

In accordance with Schedule 2 of the Public Finance Management Act Cap 171 on the
presentation of financial statements, and Section 18 of the NAA Cap 170, I undertook an
evaluation of the Government’s actual performance in comparison with its planned activities
and outputs for the year as well as its mandate. This section presents the findings from the
evaluation of the performance.

1.15 Review of Fiscal Administration

1.15.1 Performance of the Resource Envelope - Revenue Performance

I reviewed the approved resource envelope/revenue estimates of the Government

for the FY 2023/2024 and noted that Government planned to raise UGX.52.737Tn to
fund its expenditures. This was later revised to UGX.56.247Tn. Details of the
performance of the resource envelope is shown in the table below;

Table 5: Performance of the Resource Envelope

Funding source Initial Revised Actual Variance %
Category budget budget realized (UGX Tn) Variance
(UGX Tn) (UGX Tn) (UGX Tn)
Domestic Tax revenue 27.424 27.424 25.620 1.804 6.58
sources Non-tax revenue 2.248 2.248 2.028 0.221 9.81
Domestic financing 3.163 6.663 5.885 0.778 11.68
Domestic 8.358 8.358 8.528 -0.170 (2.03)
refinancing
Local revenue 0.287 0.297.403 0.208 0.090 30.14
(AIA)
Other BOU 0.217 0.217 0.217 0.000 0
sources recapitalization of
securities
Drawdown on 0.002 0.002 0.002 0.000 0
savings of external
funding
External Grants 3.079 3.079 0.788 2.291 74.42
sources Loans 7.958. 7.958 3.835 4.123 51.81
Total 52.736.7 56.247 47.110 9.137
Source: OAG Analysis

As a result of the above resource envelope, I noted the following:

1.15.2 Performance of the expenditure budget

During the FY under review, the Government initially planned to spend a total of
UGX.52.737Tn, which was later revised to UGX.61.669Tn. This indicated that the
total expenditure supplementary budgets passed amounted to UGX.8.932Tn. The
summary distribution of the expenditure budget is shown in the table below;

Table 6: Government Expenditure Budget

Spending category Initial Revised Amount Amount
budget Budget Warranted Spent
(UGX “Tn”) (UGX “Tn”) (UGX “Tn”) (UGX “Tn”)
Central Government 47.269 55.179 43.993 42.560
(MDAs)
Local Government 5.468 6.490 6.179 6.121
Total 52.737 61.669 50.172 48.680
38
 From the table above, it is noted that MDAs accounted for 89.48% of the revised
budget, while LGs accounted for 10.52%.

Of the total planned expenditure budget by the Central Government (MDAs), only
79.73% of its revised budget was warranted, while Local Governments warranted
95.21% of their revised budget.

Of the total amount warranted, MDAs spent 96.74% of their warranted funds, while
Local Governments spent 99.06% of their warranted funds.

Failure to fully utilize availed warrants led to unimplemented activities which

negatively impacts service delivery across Government.

The PS/ST acknowledged the observations and attributed the performance to

shortfalls in actual revenue performance, delays in procurement processes and
project implementation challenges.

Recommendation

I implored the MoFPED to address the implementation bottlenecks that continue to

impede Accounting Officers from utilizing availed warrants, to enhance activity
implementation and therefore service delivery. In addition, I advised the PS/ST to
ensure that warrants issued are supported by prudent cash flow projections.

1.15.3 Un-funded approved budget

Section 14 (1) & (2) of the PFMA, Cap 171 requires that after approval of the annual
budget by Parliament, the Secretary to the Treasury shall issue the annual cash flow
plan of the Government, based on the procurement plans, work plans, and
recruitment plans approved by parliament. The annual cash flow plan shall form the
basis for the release of funds by the Accountant General to the Accounting Officers.

During the financial year 2023/2024, Parliament appropriated a total of

UGX.61.669Tn to finance Government expenditure as highlighted in the table
below;

Table 7: Government budget performance per spending category

Spending Revised budget Total warrants Variance % Unwarranted
category (UGX “Tn”) (UGX “Tn”) (UGX “Tn”) funds
MDAs 55.179 43.993 11.187 20.27
LGs 6.490 6.179 0.311 4.79
Total 61.669 50.172 11.498 18.64
Source: OAG analysis of the Government budget performance report

Out of the total revised budget of UGX.61.669Tn, UGX.11.498Tn was not warranted
representing 18.64% of the revised budget.

Failure to fully fund the revised budget affected the implementation of the planned
activities which were intended to contribute to the achievement of the NDP III and
Vision 2040. The detailed impact of this shortfall on the entity activities has been
reported in the individual entity reports.

39
 The PS/ST explained that the Government implements a cash flow budget and the
quarterly expenditure limits are issued based on revenue projections for the quarter.
However, sometimes the actual revenue deviates from the projections due to internal
and external economic shocks.

Recommendation

I advised the PS/ST to ensure that the warrants issued are supported by prudent
cash flow projections. In addition, I advised the PS/ST to enhance the Monitoring
and Evaluation mechanisms to ensure that budgets and cash flows are aligned.

1.15.4 Unfunded invoices at the close of the FY - UGX.11.121Tn

Paragraph 10.10.17 of the Treasury Instructions 2017, requires that “An Accounting
Officer will ensure that no payments due in any financial year remain unpaid at the
end of that year. Towards the close of each financial year, the Head of Finance and
Accounts function will take steps to obtain bills from any persons to whom money
may be due and submit payment vouchers for them to the appropriate Accounting
Officer for payment”.

From the analysis of the budget performance at the close of the financial year, I
noted that a total of UGX.11.121Tn worth of invoices remained unfunded by the
close of the financial year. The unfunded invoices are mainly comprised of Treasury
Operations (UGX.8.313Tn), MDAs and LGs (UGX.2.808Tn).

The unpaid debt obligations of Treasury Operations attract penalties by BoU and
accumulation of domestic arrears and associated costs.

The PS/ST explained that the Government operates a cash budget which takes into
account revenues received from 1st July to 30th June of the FY and invoices remain
unpaid due to shortfalls in revenue performance.

Recommendation

I advised the PS/ST to prudently manage the budget by devising strategies to reduce
Government expenditure in light of the revenue resource envelope, to ensure
compliance with the budget commitment control guidelines and sustainability.

1.16 Review of Grants

Section 42 (1) of the Public Finance Management Act, Cap 171 provides that the
Minister shall receive the monetary grants made to the Government or a vote by a
foreign government, international organisation or any other person.

A review of files and agreements shared revealed that for FY 23/24, the
Government entered into 10 grant agreements with a receivable amount of
USD.127.905Mn from 6 development partners.

I reviewed the performance of the grants and noted the following;

40
1.16.1 Failure to absorb Grant Funds

A review of the funded projects revealed that 2 grant projects were to close on
30/06/24 where the combined granted amount as per agreement was USD.87.171Mn
(UGX.0.325Tn). I noted that as of the close of FY 2023/2024, only USD.46.949Mn
had been absorbed by the different projects.

This meant that USD.40.223Mn an equivalent of UGX.149.895Bn remained

unabsorbed by the GoU even with the grant periods having elapsed. The table below
refers;

Table 8: Unabsorbed funds by two Grant Projects

SN Project Title Closing Commitment Disbursements Unabsorbed Unabsorbed
Date (USD) (USD) (USD) (UGX Bn)
1 Uganda Support
to Municipal
Infrastructure
Development
31/12/23 24.074 20.328 3.747 13.963
Program -
Additional
Financing
(USMID-AF)
2 Intergovernmental
Fiscal Transfers 30/06/24 63.097 26.621 36.476 135.932
Program (UgIFT)
Total 87.171 46.949 40.223 149.895

Under absorption implies that some activities or outputs were not implemented
denying the intended beneficiaries services. This further creates doubts about the
preparedness of the Government to utilise external funds at the time of signing
agreements.

There was no official response from the Accounting Officer in regard to this issue.

Recommendation

I advised the PS/ST to institute punitive measures to ensure that Accounting Officers
absorb the availed funds by implementing the activities for which grants were
received.

1.16.2 Construction of aquaculture parks by MAAIF

In my report to Parliament for the FY ended June 2022, I raised a concern about the
risks associated with failure to absorb grant funds under an agreement signed on
13th January 2017 No UG/FED/038-334 of EUR.10Mn Equivalent to UGX.0.040Tn.
The Grant was aimed at promoting environmentally sustainable commercial
aquaculture in Uganda. The Ministry of Agriculture, Animal Industry and Fisheries
(MAAIF) was designated as the beneficiary and supervising authority for the
purposes of this grant.

I observed that the execution period was set at 72 months from the commencement
of the grant. The implementation phase was fixed at 60 months, while the closure
phase was fixed at 12 months.
41
 The key Deliverables of the project were to design and build two aquaculture parks
namely;

i) A water-based cage aquaculture park at Mwena Landing site in Kalangala

district to produce major Tilapia fish at a contract price of EUR.1.184Mn
(equivalent to UGX.0.005Tn) of which EUR.0.355Mn (30%) (equivalent to
UGX.0.001Tn) was advanced to the contractor. However, the work remained
incomplete by the time of audit.
ii) A land-based aquaculture park at Taragoli landing site, in Apac District to
produce majorly catfish, at a contract value of EUR.1.495Mn (equivalent to
UGX.0.006Tn), of which EUR.448,412.04 (30%) (Equivalent to UGX.1.786Bn)
was advanced to the contractor. The contract became effective on 10th
January 2020, and was extended to 2023, but the work remained incomplete.
I noted that the advances made were not secured with any performance
guarantees.

The EU undertook an audit of the works to establish the extent of the physical works
done through an independent Engineer and noted the following;

Table 9: Progress of construction of the Aquaculture Parks

Project Name Project/contra Advance/ Observation
ct amount payments
Mwena Landing site in EUR.1.184Mn EUR.355,186 Value of work done
Kalangala district EUR.94,259.28
equivalent to 26.54% of
the advance paid.
Taragoli landing site in EUR.1.495Mn EUR.448,412.04 The value of work done
Apac District was EUR.47,188
equivalent to 10.5% of
the advance paid.

The designated land for the projects approximately 203.5 hectares (502.6 acres)
procured by MAAIF, was still untitled by the time of the audit in June 2024.

The failure to complete the projects and account for the advances may lead to loss
of public funds but also deprive the citizenry of the social and economic benefits of
the project.

The Accounting Officer explained that efforts to recover the funds from the
contractors had proved futile.

Recommendation

I advised the PS/ST to engage the Accounting Officer of MAAIF to institute measures
to recover the advances. Otherwise, the Accounting Officer and contract manager
should be held responsible for non-performance.

1.17 Review of sovereign credit indicators

Sovereign credit ratings are a condensed assessment of a government’s ability and

willingness to repay its public debt both in principal and in interest on time. They are
forward-looking qualitative measures of the probability of default.

42
 In undertaking the sovereign credit ratings, I used standards adopted by the Rating
Agencies which consider three elements.

 The national management capacity to acquire, utilize and repay debt

 The Economic Strength of the country, and
 The Financial strength of the country

However, the scope of my analysis only considered some indicators that measure the
financial strength of a country, which include the public debt to GDP ratio, domestic
debt interest payments to total revenues Ratio.

The financial strength parameter indicates the state of a country’s fiscal health and
ability to manage public resources efficiently. Strong financial strength indicators
contribute to higher sovereign credit ratings and investor confidence, while low
indicators can lead to reduced creditworthiness and higher borrowing costs.
The assessment is indicated below;

1.17.1 Public Debt to GDP Ratio - Assessment of debt sustainability

Debt to GDP ratio is a measure that compares what a country owes (total debt) and
what it produces (manufactures or a service provided). A lower ratio indicates better
debt sustainability, while a higher ratio suggests increased fiscal pressure and
potential challenges in meeting debt obligations.

Objective 1(a) of the National Charter for Fiscal Responsibility FY 2021/22 –

FY2025/26 provides that the total public debt in nominal terms is reduced to below
50% of GDP by the financial year 2025/26.

I undertook an analysis and re-computed the debt-to-GDP ratio over the years. It
was observed that the Debt - GDP ratio has increased from 40.21% in FY 2019/20 to
a peak of 47.86% in FY 2021/22, driven by rising borrowing due to the effects of
COVID-19 relative to GDP growth.

However, the ratio declined to 46.80% in FY 2022/23 and further to 46.17% in the
year under review. This recent trend is an indication of improvement in debt
sustainability, reflecting better fiscal management and economic growth. The table
and fig below refer;

Table 10: Debt to GDP ratio over the years

Financial Year GDP (UGX Bn) Total debt (UGX Bn) Debt to GDP ratio
2019/20 139,689 56,172 40.21
2020/21 148,310 69,202 46.66
2021/22 162,750 77,888 47.86
2022/23 183,004 85,640 46.80
2023/24 202,725 93,607.97 46.17

43
 Figure 2: Debt to GDP ratio

Source: Uganda Bureau of Statistics and DMFAS

The relatively flat linear debt-to-GDP ratio trend line indicates stability, where there is
consistency in the acquisition of debt and economic growth over the period analysed
while reducing the risk of unsustainable debt levels. It is also an indication of the
country’s capacity to lower the debt burden, which could pose risks in the event of
economic shocks indicated in the Fiscal risk statement.

Management explained that there were various measures that had been put in place
by the Government to ensure debt sustainability including; Improved Domestic
Revenue Mobilization, Adoption of a fiscal consolidation path, Supporting the private
sector through providing cheaper credit under the Uganda Development Bank,
Implementation of the Public Investment Financing Strategy, Investment in income
generating projects such as oil-related investment, industrial parks, Parish
Development model to facilitate economic growth. In addition, GoU intended to
control Government expenditure in the medium term through the implementation of
the fiscal consolidation agenda.

Recommendation

I advised the PSST to review and effectively manage the above initiatives to improve
performance.

1.17.2 Domestic debt interest payment to total revenue ratio - Assessment of the
domestic debt service burden

The Charter for Fiscal Responsibility for the period FY 2021/22 – FY 2025/26 under
objective 1(b) adopted the fiscal objective of reducing this ratio to 12.5% over the
period of this document.

This benchmark shows the proportion of the domestic revenue that goes into
servicing domestic interest costs. Since donor grants are inherently subject to
uncertainty, the interest cost of domestic debt is considered in relation to the
domestically raised component of the budget only. The table below shows the
assessment of the benchmark over the years;

44
 Table 11: Interest to total revenue ratio
Financial Total domestic Total Interest – % of Interest Benchmark
year Revenue, excluding UGX Bn to revenue
grants (UGX Bn)
2021/22 22.10 3.917 17.72 12.5
2022/23 25.909 4.632 17.88 12.5
2023/24 27.805 5.835 20.99 12.5

It has been established that the interest-to-revenue ratio target has been
overwhelmingly breached as evidenced above. It was noted that 20.99% of the revenue
being collected is being used to service interest payments.

This is gradually reducing the funds available for funding other critical Government
expenditures. I noted that the Government paid a total of UGX.2,310.295Bn in principal
debt repayment representing 8.31% of the domestic revenue collected in the year under
review.

High expenditure towards servicing the debt drains resources to provide services to the
citizenry.

The PS/ST explained that GoU is implementing the Domestic Revenue Mobilization
Strategy which will reduce the reliance on debt and is exploring new sources of non-
traditional financing options such as Public Private Partnership to grow domestic revenue
and subsequently reduce the ratio.

Recommendation

I advised the PS/ST to intensify efforts towards domestic revenue mobilization and
rationalization of expenditure to achieve the desired benchmark.

1.17.3 Fiscal deficit to GDP - Assessment of fiscal discipline

A fiscal deficit occurs when the Government's total expenditure exceeds its total revenue
including grants but excluding borrowing (external and domestic borrowing). This ratio
measures the size of a country's fiscal deficit relative to its GDP / how well the economy
is performing.

The National Charter for Fiscal Responsibility for the period FY 2021/22 – FY 2025/26
under objective 2(a) provided that the overall fiscal balance including grants should not
exceed a deficit of 4.6 percent of non-oil GDP in financial year 2023/24.

The table below shows the performance of this ratio over the years;

Table 12: Fiscal deficit to GDP ratio

FY Fiscal Deficit (UGX GDP (UGX Bn) Fiscal deficit to GDP ratio
Bn)
2021/22 21,057.56 162,750 12.94
2022/23 17,355.96 183,004 9.48
2023/24 16,081.42 202,725 7.93

45
 A high deficit-to-GDP is an indication of possible unsustainable Government spending
that may prompt debt accumulation, while a lower ratio suggests more disciplined fiscal
management.

The fiscal deficit to GDP ratio has shown a declining trend over the three financial years,
reducing from 12.94% in FY 2021/22 to 7.93% in FY 2023/24 as compared to the target
of 4.6%.

The continued presence of a big fiscal deficit still presents the need for prudent fiscal
policies to maintain long-term debt sustainability and achieve the set target.

The PS/ST explained that the Government would continue to pursue its fiscal
consolidation strategy to achieve the set targets.

Recommendation

I advised the PS/ST to intensify efforts to realize the fiscal consolidation strategy.

1.18 Loan Performance and Absorption

1.18.1 Loan absorption

Paragraph 2.2 of the Public Debt and Other Financial Liabilities Management Framework
FY 2023/24- FY 2027/28 requires the Government acquisition and utilization of public
debt and contingent liabilities to be Sustainable and transparent.

I analyzed 17 Government loans extracted from the Debt Management and Financial
Analysis System (DMFAS) from June 23 to December 2024, and noted a low
disbursement performance of different loans as shown in the table below;

Table 13: Showing Loan Absorption

Name Credito Date Closing Curren Loan Disburs Undisb Disbursem
r Name Signed date cy Amoun ed ursed ent
t - Mn - Mn Performan
- Mn ce (%)
Mbarara-Masaka KFW 21-Jun- 30-Jun-23 EUR 35.00 0.112 34.888 0.3
Transm. Line 18
Agago-Gulu KFW 30-Oct-19 30-Jun-24 EUR 40.00 18.029 21.971 45.07
Transmission
Line
Kampala City ADB 11-May- 31-Dec-24 USD 224.00 58.157 165.843 25.96
Roads Rehab Pjt 21
L.V Martime ADF 19-Jan-18 31-Dec-24 AFU 10.210 5.021 5.189 49.18
Communications
Kampala City ADF 11-May- 31-Dec-24 AFU 37.540 7.862 29.678 20.94
Roads Rehab Pjt 21
Masaka-Mbarara AFD 27-Apr- 31-Dec-24 EUR 37.10 0.121 36.979 0.33
Transmission 18
Masaka-Mbarara AFD 25-Jan-19 31-Dec-24 EUR 120.00 72.00 48.00 60.00
Water Corridor
Upgradg Of BADEA 19-Feb- 31-Dec-24 USD 11.500 2.828 8.672 24.59
Luwero- 17
Butalangu Rd

46
 Name Credito Date Closing Curren Loan Disburs Undisb Disbursem
r Name Signed date cy Amoun ed ursed ent
t - Mn - Mn Performan
- Mn ce (%)
Karamoja Infras. CDP 19-Aug- 31-Dec-24 EUR 10.00 5.00 5.00 50.00
Dev. Plan II 21
Inland Port at COMME 25-Apr- 31-Dec-24 EUR 31.671 15.135 16.53 47.79
Bukasa RZBANK 16
Solar Powered EXIM 28-Dec- 31-Dec-24 USD 30.00 11.631 18.369 38.77
Water Pumping BANK 20
OF
INDIA
Add. Finance To IDA 10-Jun- 31-Dec-24 SDR 174.500 77.685 96.815 44.52
Ugift 21
Food Security IDB 22-May- 31-Dec-24 USD 34.050 7.500 26.550 22.03
Thru Rice Prodn 13
Vocational Educ OPEC 23-Mar- 31-Dec-24 USD 14.300 7.303 6.997 51.07
Project 2 FUND 17
Luwero OPEC 28-Aug- 31-Dec-24 USD 11.500 3.754 7.746 32.64
Butalangu Road FUND 18
Namanve Kla UKEF 4-Dec-19 31-Dec-24 EUR 219.483 117.269 102.214 53.43
Industr & Biz
Park
Solar Pumping UKEF 12-Feb- 31-Dec-24 EUR 95.843 55.517 40.326 57.92
Systems 21
Source: OAG Analysis

From the table above, most loans will not be absorbed by the end of their tenure.
Unabsorbed loans attract commitment charges which increase the costs of servicing
debt. The intended objectives of the loan may not be met.

The Accounting Officer explained that most of the projects have had their timelines
extended to enable them to complete their planned activities. Most of the delays are
attributed to delayed procurement and delayed land acquisition.

However, it was not clear whether the project funding extension was at no cost.

Recommendation

I advised the MoFPED to develop strategies for enhancing loan absorption rates to
avoid having unabsorbed loan funds at the project closure. The strategies should include
punitive measures for non-performance.

1.18.2 Continued Payment of High Commitment Fees

A commitment fee is a fee charged by a lender and is associated with unused credit
lines or un-disbursed loans.

I noted an increase in un-disbursed loans amounting to UGX.1.890Tn, representing a

12.95% increase from the closing balance of UGX.14.6Tn in the FY 22/23 resulting in
payment of commitment fees totaling UGX.73.904Bn during the year under review, as
indicated in table below;

47
Table 14: Commitment fees paid over the years
Financial year Commitment fees Paid (UGX ’Bn) Percentage charge
2023/24 73.904 1.4%
2022/23 72.909 -6%
2021/22 77.524 -2%
2020/21 79.117 1%
2019/20 78.558 -10%
2018/19 87.766 140%
Total 469.778
Source: Treasury Operations Prior Years’ Audited Financial Statements

This increases Government expenditure on debt repayment. Commitment fees is a cost

of Government inefficiency, which has increased the cost of servicing debt.

The PS/ST explained that Government is implementing a Project Implementation

Management System (PIMS) to ensure project readiness and improve absorption of
funds.

Recommendation

I advised MoFPED to identify and resolve any bottlenecks hindering the smooth
implementation of projects/programs and activities to increase its loan/debt absorption
rates.

48
SECTION 4: REVIEW OF THE CONSOLIDATED SUMMARY STATEMENT OF FINANCIAL
PERFORMANCE OF PUBLIC CORPORATIONS AND STATE ENTERPRISES
FOR THE YEAR ENDED 30TH JUNE 2024

According to Section 2 of the Public Finance Management Act (PFMA) Cap 171; “A Public
Corporation means an authority established by an Act of Parliament other than a local
Government which receives a contribution from public funds, and any public body which in a
financial year receives any income from public funds”. Similarly, “A State Enterprise means a
body established under any Act other than the Company’s Act or a local Government council,
and a company registered under the company’s Act in which the Government or a state
enterprise has controlling interest”.

In line with the PFMA, Cap 171, I reviewed the Consolidated Summary Statement of the
Financial Performance of Public Corporations and State Enterprises for the financial year ended
30th June 2024, and noted the following;

a) Completeness of the Consolidated Summary Statement of Financial

Performance of Public Corporations and State Enterprises

Section 50(1c) of the Public Finance Management Act (PFMA), Cap 171 requires the Accountant
General, within three months after the end of each financial year, to prepare and submit to the
Minister responsible for Finance and the Auditor General the consolidated summary statement
of the financial performance of Public Corporations, State Enterprises and Companies where
Government has controlling interest.

Furthermore, Section 49(2) of PFMA, Cap 171 provides that, the Accounting Officer of a public
corporation shall, within two months after the end of each financial year, using the format
prescribed by the Accountant General, prepare and submit to the Accountant General, a
summary statement of financial performance of the public corporation and give a copy of the
summary statement to the Secretary to the Treasury.

I noted that fifty (50) public corporations and state enterprises were supposed to be
consolidated (Appendix 1 refers) in accordance with Section 50(1c) of the PFMA, Cap 171.
However, only thirty-four (34) entities were consolidated leaving sixteen (16) entities not
consolidated. Three (3) entities with subsidiaries including Uganda Development Corporation
(UDC), National Enterprises Corporation (NEC) and Uganda National Oil Company (UNOC) were
consolidated using group figures.

I further noted that, of the sixteen (16) entities that were not consolidated by the Accountant
General, thirteen (13) were disclosed and three (3) were not disclosed in the consolidated
summary statements. Table below refers;

Table 15: Public Corporations, State Enterprises and Companies not consolidated
SN Entities Disclosed in the Summary Statement
Entity Name Remark
1 UGMA Engineering Corporation Limited Cannot be traced
2 Enterprise Uganda Limited Company Limited by Guarantee
3 Nakivubo War Memorial Stadium Concession
4 Uganda Crane Industries Ltd. Not Availed

49
 SN Entities Disclosed in the Summary Statement
Entity Name Remark
5 Production Enterprises Corporation Limited Not Availed
6 Kampala Industries and Business Park Limited Not Availed
7 Science and Technology Equipment Production (Unit) Not Availed
Ltd
8 Housing Finance Investments Not Availed
9 Bujagali Energy Limited Concession
10 Dairy Corporation Limited Not Availed
11 Uganda Livestock Industries Limited Cannot be traced
12 Uganda Seeds Limited Indicated as sold off
13 Uganda Fisheries Enterprises Limited Not Availed
Entities not disclosed in the Summary Statement
14 Insurance Training college Not Availed
15 Uganda Telecommunications Corporation Limited Not Availed
(UTCL)
16 Uganda Hotel and Tourism Training Institute Not Availed

I further noted that Tropical Africa Bank Limited was disclosed on the list of state enterprises,
yet government has no controlling interest.

In the absence of the summary performance of the above-mentioned entities, the consolidated
summary statement of financial performance of public corporations and state enterprises does
not reflect the accurate status of government ownership and interest.

In addition, I noted that Government does not maintain a comprehensive database of Public
Corporations and State Enterprises to enable independent verification of the number of entities
consolidated in the summary statement.

In the absence of a comprehensive database, I was not able to ascertain the completeness of
the submitted consolidated summary statement of financial performance of public corporations
and state enterprises.

Management indicated that among the entities not consolidated are 2 state enterprises limited
by guarantee, 2 run as concessions and 12 which are either dormant or management cannot be
traced.

Recommendation

I advised the Accountant General to establish a comprehensive database for all Public
Corporations and State Enterprises which should capture information such as name of entity,
business/industry, location, shareholding, Directors, e-mail addresses, among others, to enable
easy traceability and independent verification.

b) Review of the Process of Consolidation of the Summary Statement of

Financial Performance of Public Corporations and State Enterprises

The process of consolidation of the summary statement of financial performance of public

corporations and state enterprises commences with the issuance of the request for submission

50
letter by the Accountant General to the consolidating entities. The Accounting Officers of the
respective entities submit entity summary statement of financial performance basing on
unaudited financial statements which are then used by the Accountant General to prepare the
initial Draft Consolidated Summary Statement.

I noted variances between amounts in the entity audited financial statements and the
corresponding amounts in the consolidated summary statement prepared by the Accountant
General, as shown in the Appendix 2.

The variances were partly attributed to the failure by entities to submit the adjusted summary
statement of financial performance after audit to the Accountant General. This was also
attributed to absence of the reporting guidelines to streamline the consolidation process.

Recommendation

I advised the Accountant General to consider issuing reporting guidelines to all consolidating
entities to streamline the consolidation process, to ensure that only audited and adjusted
amounts in the entity summary statements form a basis for the final consolidation.

c) Review of Financial Performance of Public Corporations and State Enterprises

I noted that out of the fifty (50) public corporations and state enterprises, fourty-one (41) are
for profit or with a commercial orientation while nine (9) are not for profit. Although public
corporations and state enterprises operate on commercial and service delivery mandates, the
for-profit enterprises and corporations are supposed to operate efficiently, make profits and pay
dividends to Government. Their financial performance is therefore of interest to Government.

As noted in my previous reports, the Government Consolidated Summary Statement of financial

performance of public corporations and State enterprises only reports on; government
shareholding, total income, total expenditure, dividends declared, retained earnings, and net
worth of entities. However, key performance assessment parameters, such as profitability,
return on assets, liquidity assessment, and debt analysis are not reported on. As a result, I
computed these ratios using audited financial statements for further analysis of performance of
Public Corporations and State Enterprises.

I assessed a total of twenty (20) entities out of the 41 profit or commercial oriented public
corporations and state enterprises. The subsidiaries under NEC were assessed independently
instead of as a group. For UDC’s subsidiaries, only Nile Hotel International Limited was included
in the assessment.

From the financial performance analysis undertaken, I noted the following:

1) Profitability of Enterprises

I analysed profitability of twenty (20) public corporations and state enterprises and noted that
thirteen (13) made profits/surplus in the year under review, with Uganda Electricity
Transmission Company Limited (UETCL) (UGX.82.25Bn), Uganda Electricity Generation
Company (UEGCL) (UGX.54.28Bn) and Uganda Civil Aviation Authority (UGX.32Bn)

51
outperforming the rest of the assessed entities. Profits for National Housing and Construction
Company Limited reduced by 90.5% from UGX.34.59Bn reported in the previous year to
UGX.3.27Bn. On the other hand, Uganda Printing and Publishing Corporation, which had made
a loss of UGX.3.07Bn the previous year, posted profits of UGX.1.04Bn in the year under review.

In addition, a number of state enterprises and corporations, including Kilembe Mines Limited,
Uganda Electricity Distribution Company, Uganda Railways Corporation, and NEC Farm Katonga
Limited, reported increased losses compared to the last year’s figures. In contrast, the Uganda
National Oil Company and Uganda National Airlines Company Limited, although still incurring
losses, managed to reduce their deficits by 78.4% and 26.5% respectively, implying improved
revenue generation and effective cost management. Table below refers.

Losses affect the entities’ ability to meet future obligations and/or make investments.

Table 16: Profitability of Public Corporation and State Enterprises

No. Entity 2023/ 2022/ % Management’s Response
24 23 Increa
se/De
crease
(UGX ’Bn)
1. Uganda Electricity 82.25 94.9 -13.36 The company continues to implement policies and
Transmission actions that ensure sustainable and consistent
Company profitable position of the company.
2. Uganda Electricity 54.28 33.99 60 Whereas in the context of an electricity generating
Generation Company growth in profitability signifies financial
Company health and sustainable operations as well as its
capacity to undertake future projects, the Accounting
Officer indicated that the profit will be absorbed by the
loan repayment.
3. Uganda Civil 32 39.58 -19 This reduction is primarily attributed to a sharp
Aviation Authority increase in operating expenses from UGX.248.554Bn
to UGX.295.618Bn.
4. Mandela National 18.66 2.32 701 This increment was largely due to the receiving
Stadium additional government support for renovation and
upgrade to complete phase one of UGX
17,760,000,000 in form of a subvention from Ministry
of Education and Sports (MOES).
5. NEC Luwero 10.65 8.05 32.3 No Management response
Industries Limited
6. NEC Construction 5.46 4.89 11.7 No Management response
Works &
Engineering
Limited
7. NEC AGRO SMC 4.34 3.69 17.7 No Management response
Limited
8. National Housing 3.27 34.59 -90.5 In line with the current company strategy, the
and Construction Company improved the business model from over
Company Limited reliance on long term construction and sale of
residential houses to a blended business model of
more sustainable business units in the rental market
segment along with construction and consultancy
services that match short term reporting requirements
and performance outlook.
9. Insurance Training 1.824 1.881 -3 To drive growth, management sets increasingly
College ambitious revenue targets and develops strategies for

52
No. Entity 2023/ 2022/ % Management’s Response
24 23 Increa
se/De
crease
(UGX ’Bn)
efficient cost management through regular
performance monitoring.
10. Uganda Printing 1.04 -3.07 -133.9 The performance was attributed to the good
and Publishing marketing strategies that were put in place to reverse
Corporation the previous poor performance.
11. Nile Hotel 1.02 0.92 11 The increase in profits was attributed to the recovery
International of the company and accommodation activities that
Limited resulted in an increase in revenue for the
concessionaire.
12. Uganda Property 0.638 1.094 -41.7 The company filled crucial positions of Head of Finance
Holdings Limited and Operations, Company Secretary and Human
Resource Officer leading to increase in staff costs from
UGX.2.269Bn to UGX.2.527Bn.
13. NEC Uzima Limited 0.52 0.16 225 No Management response
14. NEC Farm Katonga (1.9) (0.07) 2614 Management has developed a plan to have more
Limited mothers produce own bulls and heifers and that they
are introducing quick maturing breeds with higher
percentage of live weight on the farm using artificial
insemination.
15. Uganda National (3.78) (17.51) -78.4 The company represents the State’s commercial
Oil Company interests in the petroleum sub-sector across several
projects that are still in the development phase and
are not generating any revenue until
maturity/commissioning. However, the new mandate
as the sole importer of petroleum products will greatly
improve performance.
16. Uganda Air Cargo (8.21) (10) -17.9 The principal revenue generating asset, the Hercules
Corporation L-100-30 aircraft has been grounded at Jordan
Aeronautical systems company (JAC) from November
2022 to date and hence not contributing to the
earnings of the Corporation for more than two (2)
years. While the aircraft was grounded, it was
discovered that it needed an Avionics upgrade in line
with the civil aviation regulations. In addition, the
Corporation has not received the anticipated
capitalization from MoDVA as approved by Cabinet.
Management has proposed several strategies to
improve revenue performance.
17. Uganda Electricity (10.92) (2.18) 401 The regulator has continued to disallow lease rental
Distribution fees in the tariff yet the company incurred
Company depreciation arising from assets in use by Umeme Ltd.
This had a long-term effect on the operational
efficiency and financial sustainability of the business
since there were limited resources to enable
continuous repair of the network.
18. Kilembe Mines (21.35) (2.39) 793 The shareholders were negotiating with a strategic
Limited partner to redevelop the company’s production assets
and restore profitability. Current losses are attributed
to historical issues, including legal cases and asset
damage from natural calamities, which are expected to
be resolved once the partnership is finalized.
19. Uganda Railways (36.34) (35.6) 2.1 Management reviewed the previous strategic plan and
Corporation identified key focus areas to improve revenue and

53
 No. Entity 2023/ 2022/ % Management’s Response
24 23 Increa
se/De
crease
(UGX ’Bn)
profitability, including pricing strategies, asset re-
prioritization, and disposal of obsolete assets.
20. Uganda National (237.85) (323.6) -26.5 Management is in the process of developing a new
Airlines Company ten-year strategy hinged on financial sustainability,
Limited operational efficiency, learning and development, and
stakeholder engagement. The corresponding initiatives
are geared towards revenue enhancement and better
cost control.

Recommendation

I advised the entities to develop clear strategies to improve operations and adopt efficient
financial management practices to lower operating costs and increase revenue generation.
MoFPED should consider recapitalizing the most affected entities to revamp their operations.

2) Operating Margin

I analysed the Operating margin of sixteen (16) public corporations and state enterprises to
measures the extent to which they were able to meet their operating costs, while remaining
profitable and I noted that only Mandela National Stadium Limited, Nile Hotel International
Limited, NEC - Luwero Industries Limited, NEC Farm Katonga Limited, UEGCL and Uganda
Property Holdings Limited had operating margin higher than 15% which was considered good.
However, NEC - Luwero Industries Limited and Uganda Property Holdings Limited posted
reduced operating margins by 9.3% and 4.3% respectively from the previous year.

I further noted that despite having operating margin lower than 15%, the operating margins of;
Uganda National Oil Company, Uganda National Airlines Company Limited and Kilembe Mines
Limited had improved by over 18% from the prior year while operating margins of; UEDCL,
UETCL, Uganda Civil Aviation Authority and Uganda Railways Corporation had further declined
from the previous year. Table below refers.

A decreased operating margin may indicate potential challenges to the company in covering
operating costs, which poses a risk to the company’s financial stability. This also presents
challenges in reinvestment for growth.

Table 17: Operating Margin of Public Corporation and State Enterprises

N Entity Operating Margin Increase/ Management response
o (%) Decrease
2023/2 2022/2
4 3
1. Mandela National 88.96 43 45.6 No Management response
Stadium Limited
2. Nile Hotel 54 30 24 The performance attained was attributed to a
International reduction in expenses by 30% (from UGX1.984Bn
Limited to UGX1.435Bn) and increased gross income by
9% (from UGX2.841Bn to UGX3.092Bn).

54
N Entity Operating Margin Increase/ Management response
o (%) Decrease
2023/2 2022/2
4 3
3. NEC - Luwero 40.1 49.4 -9.3 The profitability of the Company’s core products is
Industries Limited dependent on several factors including supply
chain disruptions of the key inputs, mainly
imported raw materials. It was also affected by
the price inelasticity of the products in the sense
that the prices to our key clients cannot easily be
increased.

4. NEC Farm 34.4 -2.2 36.6 No Management response

Katonga Limited
5. Uganda Electricity 28.5 22.4 6.1 82% of the revenue was ringfenced for loan
Generation repayments and therefore the Company remains
Company vulnerable with liquidity challenges.

6. Uganda Property 15.5 19.9 -4.3 The increase in operating expenses was mainly
Holdings Limited attributed to increase in staff recruitments and
professional fees for supervision of the project of
construction of warehouses in Tororo and designs
for Bugolobi project

7. Uganda Electricity 12 16.8 -4.8 The sections of the network taken over from
Distribution private concessions required significant
Company improvement due to high maintenance
requirements. Furthermore, constant repairs and
maintenance were also required yet the tariff
could not absorb all direct operating and
maintenance costs requested by the company.

8. Uganda Civil 10.2 12.3 -2.1 The nature of the industry that UCAA operates in
Aviation Authority requires the Authority to meet certain ICAO
standards while giving a service and complying
with certain regulations. That notwithstanding,
UCAA is cognizant of the dire need for financial
sustainability and the operations are geared to
that effect.

9. NEC Uzima 8.1 5.1 3 Although the Company registered an improvement

Limited of 6.2% from the previous year, there was still a
challenge of high cost of raw materials, and this
takes the largest portion of revenue generated.

10. Uganda Electricity 7.36 9.04 -1.68 The company continues to negotiate with GoU
Transmission concerning conversion of debt for completed
Company projects into equity. Management wrote to PSST
formally requesting to convert loans into grants
and referred the matter to Accountant General.

11. NEC AGRO SMC 6.2 5.1 1.1 The main component of revenue is derived from
Limited food supply to the MODVA therefore, putting a
margin of 15% would make their prices
uncompetitive, hence loss of business. The
operating margin realized of 6.2% was as per the
competitive quoted prices during the year.

12. NEC Construction 4.4 5.9 -1.5 The drop in operating margin was mainly due to

55
 N Entity Operating Margin Increase/ Management response
o (%) Decrease
2023/2 2022/2
4 3
Works & our low pricing of the services. As a government
Engineering company, NEC- construction offers construction
Limited solutions to government at a low cost. This has
been a strategy tool towards entry in the
construction market and growth of the profile of
the company.
13. Uganda National -9 -46 37 The company represents the State’s commercial
Oil Company interests in the petroleum sub-sector across
several projects that are still in the development
phase and are not generating any revenue until
maturity/commissioning. However, the new
mandate as the sole importer of petroleum
products will greatly improve the Operating
Margin going forward.

14. Uganda National -67.17 -138.17 71 Management is in the process of developing a new
Airlines Company ten-year strategy hinged on financial
Limited sustainability, operational efficiency, learning and
development, and stakeholder engagement. The
corresponding initiatives are geared towards
revenue enhancement and better cost control.

15. Kilembe Mines -112 -131 19 KML’s core mining operations ceased in 1982, and
Limited its current role is the care and maintenance of
assets that have suffered losses due to outdated
infrastructure, machinery, and 1950s technology
prone to breakdowns. Spare parts are expensive
and must be custom ordered.

16. Uganda Railways -126.15 -98 -28.15 Management reviewed the previous strategic plan
Corporation and identified key focus areas to improve revenue
and profitability, including pricing strategies, asset
re-prioritization, and disposal of obsolete assets.

Recommendation

I advised the Accounting Officers of the affected entities to institute measures to improve their
respective Operating Margins through cost control, efficiency improvements, or revenue
enhancement tactics, without compromising the quality of products or services rendered.

3) Return on Assets

The Return on Assets (ROA) shows the percentage of how a company’s assets are generating
revenue. It measures management’s efficiency in using the enterprise’s assets to generate
earnings. Although companies that require large initial investments will generally have lower
return on assets, ROAs below 5% are generally considered inadequate.

I assessed the ROAs of twenty (20) enterprises/corporations and noted that five (5) entities
including NEC Luwero Industries Limited, Insurance Training College, NEC AGRO SMC Limited,
Mandela National Stadium and NEC Construction Works & Engineering Limited posted a

56
favourable ROA of over 5%. However, fifteen (15) enterprises/ corporations registered a poor
performance on ROA of below 5%. The worst performing enterprises were Kilembe Mines
Limited, NEC Farm Katonga Limited, Uganda National Airlines Company Limited, Uganda Air
Cargo Corporation, and Uganda Railways Corporation.

The noted performance was mainly attributed to underutilisation of the available machinery due
to frequent break downs, high operating costs, and a non-cost reflective tariff for the electricity
players. The table below refers.

Table 18: Returns on Assets

No. Entity Return On Asset Management response
(%)
2023/24 2022/23
1. NEC Luwero 13.2 14.9 The main reason for reduction in the ROA was the
Industries Limited increase in the asset base as seen from the statement of
Financial Position. This increase in assets was not directly
matched by increase in revenues as some of the revenue
had not been recognised yet.

2. Insurance Training 12 19 No response on performance

College
3. NEC AGRO SMC 11.5 13.7 The decreasing ROA is attributed to the advance payment
Limited on the Grain Storage, Milling and Supply equipment, which
increased the value of assets. Since there was no
significant increase in net profit after tax, the return on
assets decreased.

4. Mandela National 6.7 0.9 No Management response

Stadium
5. NEC Construction 5.5 4.4 No Management response
Works &
Engineering Limited
6. Uganda Electricity 3.7 5.3 ERA did not approve the asset recovery through
Distribution depreciation refunds which impacted financial
Company sustainability, however interventions are being
implemented to reduce commercial losses.

7. Uganda Printing 3 -8 This performance was attributed to underutilisation of the

and Publishing available machinery due to frequent break downs, high
Corporation operating costs, and reliance on outdated printing
equipment.

8. NEC Uzima Limited 2.8 1.4 With the introduction of three (3) production shifts, the
production efficiency is expected to improve, and this will
have a direct positive effect on return on assets.

9. Uganda Electricity 1.89 1.7 The company continues to fast track projects to
Transmission completion with a view of generating revenue and
Company increasing its Return on Assets.

10. Uganda Electricity 1.25 1.04 Strategies such as a revision of the license to provide for
Generation cost reflective tariff which is line with the average tariff
Company and allowing UEGCL to earn a reasonable return on
investment would improve the ROA.

11. Uganda Civil 0.79 0.84 The nature of the industry that UCAA operates in requires

57
No. Entity Return On Asset Management response
(%)
2023/24 2022/23
Aviation Authority the Authority to meet certain ICAO standards while giving
a service and complying with certain regulations. That
notwithstanding, UCAA is cognizant of the dire need for
financial sustainability and the operations are geared to
that effect.

12. Nile Hotel 0.61 0.36 Management is working with its associate and
International concessionaire to recover to pre-covid revenue levels
limited through collaborative marketing, and business reviews to
identify gaps for operational and investment
enhancements.

13. National Housing 0.6 6.3 The company is considering strategic disposal or
and Construction repurposing of non-productive holdings to improve overall
Company Limited returns.

14. Uganda Property 0.2 0.4 This is attributed to construction works costing
Holdings Limited UGX.5.68Bn which did not contribute to the income and
profits of the year hence decline in return on investments.

15. Uganda National Oil -0.3 -1.7 Upon commissioning of UNOC’s projects, the company will
Company commence generating revenues from its assets and will
therefore be in position to improve its Return on Assets.

16. Uganda Railways -0.93 -0.82 Plans are underway to enhance the utilization of high-
Corporation value underutilized assets, with significant investments
being made, such as the $328M URC Capacity Building
Project and the rehabilitation of the Tororo-Gulu railway
line, which began in FY 2023/24. Future initiatives,
including property development, will further improve asset
utilization and the return on assets ratio.

17. Uganda Air Cargo -6 Three (03) of the four (04) aircrafts have been
Corporation deregistered and awaiting disposal. The only registered
aircraft is at the hanger in Amman Jordan for “B” check
maintenance and awaits commencement of Avionics
upgrade.

18. Uganda National -21.92 -32.75 Management is in the process of developing a new ten-
Airlines Company year strategy hinged on financial sustainability, operational
Limited efficiency, learning and development, and stakeholder
engagement. The corresponding initiatives are geared
towards revenue enhancement and better cost control.

19. NEC Farm Katonga -21 -0.6 It takes a minimum of two and a half years to sell an
Limited offspring from a cow. This period is a long business cycle
and usually affects the return on assets.

20. Kilembe Mines -57 -6 The power generation facility was halted early in the
Limited financial year due to safety concerns over its 70-year-old
infrastructure, with refurbishment planned through a
strategic investor partnership.

58
This implies that the Companies/Corporations are not generating enough income from the use
of their assets.

I advised the entities to institute mechanisms to increase income generation from use of their
assets and institute cost management strategies.

4) Dividends

I noted that only Housing Finance Bank Limited declared dividends of UGX.32.56Bn in the year
under review up from UGX.29.23Bn declared in the prior year. Out of the declared dividends,
government received UGX.14.37Bn during the year higher than UGX.10.07Bn received in the
prior year.

I further noted that although some companies were making significant amounts of profits, they
were not paying dividends to Government. Examples included UETCL, UEGCL, NEC and Post
Bank among others.

The enterprises attributed the non-payment of dividends to retention of funds to fund planned
investments/projects.

I advised the Accountant General to ensure that entities operationalise dividend policies that
provide for equitable allocation of profits to investment as well as shareholders.

5) Liquidity Assessment

I analysed the ability of Public Corporations and State enterprises to meet their short-term
financial obligations by comparing the current assets and current liabilities using the Current
Ratio analysis. Generally, the ratio of Current Assets to Current Liabilities between 1.5 and 2 is
desirable, although acceptable current ratios vary between different industries or sectors.

I noted that eleven (11) entities were above the ideal threshold, implying that they can meet
their liabilities as they fall due. However, out of the eleven (11) entities, five (5) had excessively
higher current ratios of 5 and above, these included NEC Farm Katonga Limited, Uganda Air
Cargo Corporation, Mandela National Stadium, NEC AGRO SMC Limited, and UEDCL. The very
high current ratio implies that the Companies are not efficiently utilizing their current assets or
short-term financing facilities.

Seven (7) entities had ratios below 1.5 and may have a challenge of paying their obligations as
and when they fall due, these included Uganda Printing and Publishing Corporation, Uganda
National Airlines Company Limited, Nile Hotel international limited, NEC Construction Works &
Engineering Limited, Uganda Railways Corporation, Kilembe Mines Limited and UEGCL. The
table below refers.

59
Table 19: Liquidity Assessment
No Entity Current Ratio Management response
2023/24 2022/23
1. NEC Farm 143 39.1 This performance was attributed to maturity of the
Katonga Limited investment in fixed deposits.

2. Uganda Air Cargo 10 3.1 The high liquidity ratio was due to failure to absorb the
Corporation funds (UGX.34.78Bn) as a result of late release of funds
and failure to utilise the funds to carry out the Avionic
upgrade. In addition, the Corporation changed the
strategy from leasing the aircrafts to undertaking a joint
venture with Alpha MBM and as a result, the funds that
were meant for leasing remained as cash balances.
3. Mandela National 5.6 45.7 No management response
Stadium
4. NEC AGRO SMC 5.4 3.8 The nature of business the company is engaged in as
Limited payments by the main clients (Uganda Prison Services and
Ministry of Defense and Veteran Affairs) are received on a
quarterly basis whereas, the company settles suppliers
monthly. This results in the need to keep cash available to
settle suppliers at the same time accumulating debtors for
a period of three to six months.

5. Uganda Electricity 5.03 12.49 There have been continuous engagements with Ministry of
Distribution Finance to settle the pension receivable and the
Company outstanding GOU bills.

6. Insurance Training 4.3 3.9 The entity’s current assets are largely comprised of unit
College trust investments, temporarily held and shall be liquidated
to facilitate land acquisition. Upon liquidation, the asset
ratio is expected to revert to acceptable standards.

7. Uganda Property 3.6 12.3 The reduction in the ration is due to growth in the
Holdings Limited payables from UGX.0.550Bn on 30th June, 2023 to
UGX.1.89Bn on 30th June 2024 as a result of an isolated
creditor Company owed UGX.1.57Bn at the end of the
year.

8. Uganda Civil Aviation 3.36 4.47 The nature of the industry that UCAA operates in requires
Authority the Authority to meet certain ICAO standards while giving
a service and complying with certain regulations. That
notwithstanding, UCAA is cognizant of the dire need for
financial sustainability and the operations are geared to
that effect.

9. Uganda Electricity 2.17 2.02 The available funds are not excess in nature however
Transmission tagged and committed to several disbursements/activities
Company pending conclusion of the relevant processes under way
like procurements, RAP processes, fixed funds on bank
accounts for treasury management purposes.

10. NEC Luwero 1.8 23.2 Management will continue to institute measures to
Industries Limited enhance reduction of liabilities and collection of debts.

11. NEC Uzima 1.8 2.4 No management response

Limited
12. Uganda Printing 1.4 1.4 The accumulation of the receivables was mainly from the
and Publishing delayed payments from the MDAs who contribute the

60
 No Entity Current Ratio Management response
2023/24 2022/23
Corporation highest percentage of the overall receivables.

13. Uganda National 1.42 1.38 Management is in the process of developing a new ten-
Airlines Company year strategy hinged on: financial sustainability,
Limited operational efficiency, learning and development, and
stakeholder engagement.

14. Nile Hotel 1.32 1.09 The Company bills concession fees within the first month
International of each quarter, except for the year-end concession which
Limited involves the reconciliation of amounts outstanding or
overpaid based on audited financial statements, which
may delay the closure process. Otherwise, the receivables
are paid within a reasonable time by the concessionaire.

15. NEC Construction 1.2 1.1 The low liquidity ratio was caused by the advance
Works & payments received close to the end of the financial year.
Engineering The utilisation of the advanced funds while executing the
Limited projects has since improved the liquidity ratio of the
company.

16. Uganda Railways 0.72 0.99 Management is prioritizing better-working capital

Corporation management by reducing debtor days through strict credit
policy enforcement, optimizing inventory and supply chain
processes, and enhancing accounts payable management.

17. Kilembe Mines 0.6 1.5 The Company has engaged a rental debt collector and
Limited sought shareholder funding through the Board to settle
outstanding liabilities, aiming to improve the current ratio
and provide a fresh start for KML while negotiations with
the strategic investor continue.

18. Uganda Electricity 0.35 0.21 The Company has continued to pursue the collection of
Generation Company the long outstanding receivables from UETCL, as well as
continued efforts to pursue the financial sustainability
agenda for the energy sector to provide a cost reflective
tariff.

Recommendation

I advised the Accounting Officers of the affected institutions to strengthen their

treasury/working capital management strategies to ensure speedy collection of debts and
reduction of liabilities.

6) Debt Analysis

Public Corporations and State Enterprises should be able to meet their short and long-term debt
obligations. Gearing (debt) ratio measures the proportion of the enterprises’ assets that are
financed by debt. Although the risk levels vary from industry to industry, a debt ratio of more
than 50% is considered undesirable.

Eight (8) out of the thirteen (13) Public Corporations and State enterprises assessed had debt
ratios of less than 50% implying that owners’ equity was sufficient to cover total debt except for

61
five (5) enterprises which had a debt ratio above 50%. These include National Water and
Sewerage Corporation, UETCL, UEDCL, NEC Construction Works & Engineering Limited and
UEGCL. The table below refers.

The above was majorly attributed to inadequate funding required to repay outstanding loan
obligations.

Table 20: Debt Analysis

No Entity Debt Ratio (%) Management’s Response

2023/24 2022/23
1. National Housing 0.03 0.04 NHCC has prioritized maintaining a conservative capital
and Construction structure to reduce the risk of financial distress. In
Company Limited addition, NHCC is also prioritizing generating steady and
(F/Ss June 2020) predictable cash flows from rental income and structured
house sales to maintain operational stability.

2. NEC Farm 0.21 1.11 No management response

Katonga Limited
3. Uganda Railways 3.81 1.69 No management response
Corporation
4. NEC AGRO SMC 13.6 27 No management response
Limited
5. NEC Luwero 18.1 1.3 Most of the company’s assets are financed by other
Industries sources other than debt.
Limited
6. Uganda National 20.09 13.56 No management response
Airlines Company
Limited
7. NEC Uzima 24.3 51 No management response
Limited
8. Uganda Civil 38.29 37.42 No management response
Aviation
Authority
9. National Water 55 66.95 The Corporation is implementing several water projects
and Sewerage across the country. The slight increase in the ratio was due
Corporation to additional loan disbursements during the year. All our
Market Finance loans are performing well.

10. Uganda 55 66.09 The undesirable ratio is attributed to the on-lent loans for
Electricity International Development Agency (IDA), EXIM Bank of
Transmission China, African Development Bank (ADB) and Japanese
Company International Cooperation Agency (JICA).

11. Uganda 70.4 82.55 Umeme continuously made investments leading to an

Electricity increase in Financial Liability which government is
Distribution supposed to pay in accordance with section 12 of the
Company Support Agreement. In addition, management is working
with the Ministry of Finance and Economic Development to
secure external funding for the buyout amount.

12. NEC Construction 79 86.3 The undesirable debt ratio was caused by advance
Works & payments received towards the execution of some projects
Engineering that which remained unutilized by close of the financial
Limited year.

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 No Entity Debt Ratio (%) Management’s Response

2023/24 2022/23
13. Uganda 88.7 88 UEGCL cannot substantially make the loan repayments
Electricity given the challenges surrounding the plants, the energy
Generation billing, the low dispatch for Karuma, the water weed, the
Company water levels all impacting on the revenues for the plants
from time to time. Additionally, Isimba still has defects
which must be worked on which will lead to shut down of
some of its units further impacting its revenue.

Recommendation

I advised the enterprises with higher debt ratios to review their debt-to-equity mix and keep an
appropriate balance to ensure financial stability.

Overall Conclusion/Recommendation

Government established public corporations and state enterprises with an objective of ensuring
efficient and effective management of government operations while delivering services to the
citizens. I noted that 67% of the assessed companies made profits while 33% were not making
profits, thus affecting their return on assets, ability to pay dividends to Government, and ability
to settle their obligations as they fall due. Unprofitable companies should put in place strategies
to improve their performance and deliver to the expectations of Government. In addition,
Government should develop appropriate financial and non-financial performance assessment
indicators for each category of Public Corporations and State Enterprises to enable
comprehensive and standardised performance assessment.

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PART II: KEY FINDINGS FROM PROGRAMME AUDITS

2.1 Specific Programme Key Audit Findings

2.1.1 Human Capital Development Program

a) Expired Drugs

During the financial year under review, CoviD-19 vaccines, ARVs, test kits and related
supplies amounting to UGX.316.65Bn were declared expired and non-viable. This is in
addition to the expiries worth UGX.33Bn for the previous financial year, implying an
increase of almost 860% in one year. This is wastage of government resources which
would otherwise have been utilised for other pressing needs.

The expiry of medicines leads to financial loss to government directly negatively

impacting on service delivery as evidenced in the deficits in meeting the health facilities
Essential Medicines and Health Supplies (EMHS) demands.

Recommendation

I advised the Accounting Officer of National Medical Stores (NMS) to appropriately

budget for the EMHS in line with the demand to avoid over stocking of drugs and
ensure adequate and timely distribution and delivery of drugs and health supplies to
the respective health facilities.

b) Under distribution of medicines and medical supplies to Health

facilities in the country

The health facilities’ budgets for EMHS are run by the NMS and during the year the
whole budget of UGX.562.545Bn for the financial year was fully warranted. However,
the comparison of the EMHS delivered to the health facilities indicated that NMS
distributed EMHS worth UGX.503.398Bn leading to an under distribution of
UGX.59.147Bn representing 89.5% performance. I assessed deliveries in 3,546 health
facilities and noted that;

i) 342 facilities received fully their budgeted deliveries worth UGX.239.582Bn.

ii) 3,204 facilities received supplies below the budgeted amounts by
UGX.59.148Bn.
iii) Out of the 3,204 facilities that had under distributions in (b) above, 177
facilities received less than 70% of their budget(s) by UGX.33.756Bn.

The under deliveries lead to stock outs and hence affect health service delivery to the
citizens.

The Accounting Officer explained that the failure to deliver was occasioned by MoFPED
to fund the distribution of the essential medicines and medical supplies.

64
Recommendation

Management of NMS was advised to always liaise with MoFPED to ensure timely
availability of funds to enable full and timely distribution of EMHS to the health facilities
to avoid wastage and expiry of the much needed drugs.

c) Under utilisation and Nonfunctional Medical Equipment in Hospitals

I noted under utilisation of various medical equipments in various hospitals as indicated

below;

i) Mulago National referral Hospital has an Intensive Care Unit with a bed
Capacity of 27 Beds but currently only 15 beds are occupied which is 56%
occupancy due to lack of professional health care staff.
ii) In other 5 hospitals of Butabika, Kiruddu, Kawempe, China Naguru, and
Women Specialised Hospitals, various critical equipment are non functional. In
Entebbe, Kisenyi HCIV, MUK Hospital Kasangati HCIV there were instances
where ICU beds, patient monitors and oxygen concetrators are not being
utilised yet functional due to absence of medical personel.

The under-utilisation and non-functionality of medical equipment was attributed to lack

of enough trained personel to run the complex equipment as well as indequate space
to fix these equipment.

Inadequate use of medical equipment impairs on service delivery due to limited

diagnosis.

Recommendation

I advised management of the respective hospitals to consider training staff in the

operation of the various complex equipment and follow-up with the Ministry of Finance
to provide funding to expand space to install the various equipment to enhance
operational efficiency.

d) Inadequate funding for maintenance of medical equipment

Section 6.4.5 of the GoU Asset Management Framework & Guidelines states that all
Accounting Officers with assets shall prepare a maintenance budget each year in
accordance with Paragraph 16.9.1 of Treasury Instructions. This budget is informed by
the vote assets strategic plan and maintenance plan prepared by the Accounting
Officers. The budget shall indicate the maintenance activities to be carried out, their
timing and costs. The budget shall be realistic and take into consideration the condition
and age of the asset. Additionally, section 1.0 (paragraph 2) of the National medical
equipment policy (2009), adequate operation and daily maintenance budgets should be
allocated to Health Facilities.

I reviewed the approved budget and equipment maintenance plans and noted that the
Health Infrastructure Department (HID) of the Ministry of Health requires

65
approximately UGX.20Bn for the maintenance of all medical equipment. However, only
UGX.1.8Bn was allocated in the budget. Consequently, the department lacks the
capacity to maintain all medical equipment, except for specialized equipment whose
maintenance is embedded in the framework contracts with the respective service
providers who originally supplied the machines.

The Ministry of Health did not secure extra funding for the maintenance of medical
equipment delivered during the COVID-19 period.

This funding shortfall leads to the breakdown of medical equipment, negatively

impacting the healthcare delivery system. The inability to maintain equipment reduces
the availability and reliability of medical services, potentially compromising patient care
and safety.

The Accounting Officer explained that the Ministry of Health has always presented this
budget requirement to Ministry of Finance, Planning and Econimc Development as an
Unfunded priority. The same has been presented to the Health committee of
Parliament. However, the funding has never been increased from the UGX.1.8Bn,
despite additional sophisticated medical equipment, such as; CT scanners, MRI
scanners, ICU equipment, High capacity medical oxygen plants, laboratory equipment
that were recently procured, installed and commissioned in the Hospitals across the
country.

Ministry of Health shall continue to request and engage the Ministry of Finance to
increase the maintenance budget for medical equipment across the country.

Recommendation

I advised the Accounting Officer to follow-up on securing increased funding for the
maintenance of medical equipment through engagement with the Ministry of Finance
and Parliament to address the critical funding gap.

e) Preparedness for the adoption of Higher Secondary Curriculum

The National Curriculum Development Centre (NCDC) is mandated by NCDC Act, CAP
135, to ensure that educational content is relevant, effective, and aligned with
contemporary educational needs.

In 2020, the Ministry of Education and Sports implemented the Competency-Based

Curriculum (CBC) for the New Lower Secondary Curriculum, which necessitated a
revision of the Higher Secondary Curriculum. In addition, the revision necessitated
teachers to be equipped to teach a complete learning area because outcomes-based
curriculum also requires a revised, skill-oriented approach to assessment to support
learning and reward achievement at all levels.

I reviewed the extent to which the two had been implemented and noted that;

66
i) The development of the Higher Secondary Curriculum by NCDC was
incomplete. Out of the requisite 19 processes outlined for curriculum reform,
only 6 were complete, 3 were in progress, while 10 had not been undertaken,
as illustrated in Fig below;

Figure 3: Status of Implementation of Processes of Curriculum Reform

Completed
Processes
Completed
31%
Processes
In progress
Not done
53%
Not done

In progress
16%

The pending processes included Fine tuning the adapted syllabuses with input from the
Quality Assurance and Publishing Department; Language editing; Laying out and type
setting the materials; Developing assessment modalities for the adapted curriculum;
Printing the approved curriculum for the 29 subjects and distribution; Fine tuning the
teacher training strategy; and Interpreting the developed curriculum for the teachers
and other selected stakeholders.

ii) Despite the plan to train 130,055 secondary school teachers, only 81,495
(63%) were trained over a five-year span, implying a shortfall of 48,560 (37%)
teachers.

With only two months to the commencement of the school term, the above challenges,
pose significant implications for the 2024 senior four candidates, particularly those who
were instructed and assessed using the Competency-Based Curriculum.

Recommendation

I advised NCDC to expedite the pending processes and ensure that the revised Higher
Secondary Curriculum is completed, approved and implemented to meet the
educational needs of students and achieve the envisaged long-term educational
outcomes. In addition, NCDC in liaison with MoES should enhance the training efforts,
including considering online courses to reach the remaining untrained teachers.

f) Review of the Acquisition and Rollout of the Teacher Effectiveness

and Learner Achievement (TELA) System by the Ministry of Finance,
Planning and Economic Development

The Government of Uganda represented by the Ministry of Finance Planning and

Economic Development (MoFPED) through the Resource Enhancement and
Accountability Programme (REAP) hired consultancy services for the Rollout of the

67
Teacher Effectiveness and Learner Achievement System (TELA) to enhance timely
effectiveness in support of the centralized monitoring and supervision of educational
service delivery and quality in schools and certificate-awarding institutions. The
Planned roll-out is summarized in the table below;

Table 21: Planned roll-out of TELA

SN Schools and Certificate Awarding Institutions Number Phase
1. Primary Government Aided 10,599 One
2. Secondary Government Aided 1,344 One
3. Government Certificate Awarding Institution 154 One
4. Private Schools and certificate-awarding Institutions 20,000 Two
5. Total 32,097

An assessment of the initiatives and usage of the TELA platform over the year revealed
significant underutilization.

i) Only 32% of institutions including primary schools, secondary schools, and

certification-awarding institutions are actively using the solution, despite the
100% rollout of phase one of TELA, as summarized in the table below;

Table 22: Usage of TELA by the Schools

SN Category Targeted Number Number %ge Variance Management
Number Enrolled Utilizing Utilisati (A-C) response on
(A) (B) (c) on Utilisation as
at 30th October
2024
1 Primary 10,599 12,451 3,922 31% 8,529 6,214 which
Schools was 50%
2 Secondary 1,344 1,332 541 41% 791 765 which was
Schools 57%
3 Tertiary 154 149 33 22% 116 46 which was
Schools 31%
Total 12,097 13,932 4,496 32% 9,436

ii) The rollout of TELA system in Private schools revealed that, private schools
were not yet covered in the rollout of the project, with only 127 private schools
and institutions (0.64%) out of the planned 20,000 private schools.

If the system is well implemented, it would iron out issues related to enrollment, and
absenteeism by teachers and administrators, identify those who are teaching in more
than one school of institutions and subsequently feed into payroll management in
schools.

Management of the project explained that MoES had devised methods to enhance the
use of TELA. They created WhatsApp groups per LG and assigned support officers who
share performance reports weekly, which creates pressure for improvement. Equally,
the utilization of TELA has been incorporated in the assessment of performance
indicators for LGs under the OPM’s office.

68
 Recommendation

I advised the Accounting Officer to enhance strategies and establish robust monitoring
and Evaluation to achieve the intended project objectives.

2.1.2 Integrated Transport Infrastructure and Services Program

a) Unpaid arrears for Road and Bridge Construction Projects

As of 30th June 2024, arrears amounting to UGX.798.97Bn relating to road and bridge
construction projects remained unpaid for road and bridge construction projects. These
arrears include UGX.789.48Bn under the Uganda National Roads Authority (UNRA) and
UGX.9.49Bn under the Ministry of Works and Transport (MoWT).

The above indicates inadequate budgeting practices and exposes the Government to
potential litigation and financial penalties due to delayed payments. For instance, UNRA
incurred interest charges totalling UGX.27.66Bn on overdue Interim Payment
Certificates (IPCs) that were not settled within the agreed timelines. These delays
resulted in an average daily interest payment of UGX.0.075Bn and a monthly loss of
UGX.2.305Bn. These interest costs were unbudgeted for during the financial year and
diverted critical funds away from UNRA’s core mandate of executing road construction
projects.

Recommendations

I advised the Accounting Officers to;

 Engage with the Ministry of Finance, Planning, and Economic Development

(MoFPED) to secure funding for clearing outstanding payables.
 Strengthen budgeting processes to provide for domestic arrears, mitigate
interest costs, and implement structured arrears settlement plans to prioritize
payments, and minimize contractors’ disruptions.

b) Unpaid Liabilities for Project-Affected Persons under the MOWT and

UNRA

The audit revealed unpaid liabilities totaling UGX.3.491Tn as of 18th October 2024 for
Project Affected Persons (PAPs) under land acquisition programs managed by the
Uganda National Roads Authority (UNRA) and the Ministry of Works and Transport
(MoWT).

Failure to settle these compensations poses risks to project timelines and may result in
additional administrative costs for reassessments and potential litigation by affected
PAPs, further escalating project expenses.

69
Recommendations

I advised the Accounting Officers;

 Urgently liaise with the Ministry of Finance, Planning, and Economic
Development (MoFPED) to prioritize the release of funds for outstanding
compensation.
 Develop clear timelines and actionable plans to ensure prompt compensation of
all outstanding PAPs, thereby avoiding further delays and mitigating associated
costs.

c) Accumulation of Commitment Fees due to Undisbursed Project Funds

The audit revealed that undisbursed funds for various government projects have
resulted in the accumulation of significant commitment fees, totaling
USD.21,568,332.16 and UA 1,444,813.87 as of 30th June 2024. These fees represent
avoidable financial costs incurred by the government for funds committed but not
utilized.

The accumulation of such fees places an unnecessary financial burden on the

government, diverting resources from critical development initiatives.

Recommendation

I advised the Accounting Officer to implement measures to ensure the timely

disbursement and utilization of project funds to minimize the accumulation of
commitment fees and avoid further financial losses.

d) Inadequate Funding for Rehabilitation of Security Roads in Karamoja

Sub-region

In response to a Cabinet directive, the Ministry of Finance, Planning, and Economic

Development (MoFPED) was tasked with allocating UGX.699.63Bn to the Ministry of
Works and Transport (MoWT) for the rehabilitation of 2,058.6 km of security roads in
the Karamoja Sub-region and surrounding areas to curb cattle rustling and improve
connectivity. However, as of FY 2022/2023, only UGX.25Bn (3.57% of the required
funds) had been released, leaving a funding gap of UGX.674.64Bn.

The delay in funding has stalled the project, undermining efforts to enhance security,
improve connectivity, and reduce poverty in Karamoja and other targeted sub-regions,
as envisioned in the National Development Plan III (NDP III).

Recommendation

I advised the Accounting Officer of MoWT to intensify engagements with MoFPED to

prioritize the release of the remaining funds. Additionally, a phased implementation
approach should be adopted to initiate work on critical sections of the road network
using the available resources, ensuring progress while awaiting full funding.

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 e) Significant Cost Escalation and Payment Shortfall on Busega-Mpigi
Expressway

The Busega-Mpigi Expressway project is facing significant shortcomings in technical

preparation and funding management. Initially contracted at UGX.547.5Bn without
adequate detailed designs, subsequent revisions escalated the project cost to
UGX.1.35Tn by March 2023. By May 2024, the original contract funds for civil works
were fully depleted, with physical progress at only 40.86%, and certified works worth
UGX.30.8Bn remained unpaid, posing risks of delayed payments and legal claims.

As of July 2024, progress had reached just 42.28%, falling short of targets, with the
completion date extended to September 2027. Delayed payments, unplanned costs,
and funding shortfalls threaten timely completion and cost containment.

Recommendation

I advised the Accounting Officer to expedite efforts to secure additional funding to

meet contract obligations and reduce risks of payment delays and contractor
accumulation of interest claims on delayed payments.

2.1.3 Mineral Development Programme

a) Mineral Management

The National Development Plan (NDP) III emphasizes the importance of sustainable
mineral development for economic growth and revenue generation. However, a review
of the subsector operations revealed the following institutional inadequacies which
threaten to undermine the NDP objectives;

i) Gold exports valued at USD 3.014 billion (approximately UGX.11Tn) were made
without obtaining the necessary export permits from the Minister of Energy as
required by Section 149 of the Mining and Minerals Act Cap. 159. The practice
undermines the regulatory framework and leads to loss of government revenue.
For example, the unpaid export levies have accumulated to UGX.68.842Bn.

ii) The mineral rent fees of UGX.439Bn, which were due from exploration and
mining companies, remained outstanding as of 30th June 2024, contrary to
Section 50(1.b) of the Mining and Minerals Act Cap.159.

iii) Section 180(4) of the Mining and Minerals Act Cap. 159, requires royalties to be
distributed among the Central Government (70%), Local Governments (15%),
Sub-County or Town Councils (10%), and owners or lawful occupiers of land
subject to mineral rights (5%). I noted that the Mineral Royalties’ sharing fund
account in MEMD received UGX.5.69Bn, in addition to the closing amount from
the previous period of UGX.1.36Bn, adding up to UGX.7.05Bn. I noted that only
UGX.3.14Bn (45%) was distributed to the beneficiaries, leaving an outstanding
balance of UGX.3.91Bn.

71
 The above weaknesses were attributed to inadequate enforcement of laws and weak
collaboration, among key players.

Recommendations

I advised the Accounting Officer of MEMD to;

 Strengthen collaboration with the Uganda Revenue Authority to enhance the

monitoring and enforcement of the export permit requirements.
 Institute follow-up mechanism to monitor outstanding payments of mineral rent
fees and strengthen enforcement for non-compliant license holders. Consider
invoking the penalty clauses on culpable mineral exporters, in line with section
149(5) of the Mining and Mineral Act.
 Ensure that the bottlenecks leading to non-remittance of royalties are resolved
so that the intended beneficiaries of the mineral royalties receive their due
share.

2.1.4 Sustainable Development of Petroleum Resources

a) Status of Petroleum Development

The Government set November 2025 as the date for first oil export via the Tanga Port.
The declaration is aligned with Uganda’s Vision 2040, which aims to leverage the natural
resources to accelerate socio-economic development. I reviewed the progress of the
development operations and noted the following;

i) Whereas the Uganda Commercial Oil Production Plans had set a target of drilling
451 wells, the Field Development Plan (FDP) designated only 177 (approximately
39%) as necessary for the initial phase of oil production targeted for November
2025. By the time of this report (November 2024), only 94 (53%) wells out of
the designated number had been drilled.

ii) In terms of the construction of the enabling facilities, the Tilenga and King Fisher
Development Area (KFDA) projects had not achieved the planned targets. By
November 2024, Tilenga’s actual progress was 42% compared to the planned
51%, while for KFDA, the actual progress was 88% compared to the planned
91%. The analysis of the components contributing to overall progress revealed
that most of the progress related to procurement of materials, engineering and
site logistics, while actual construction works were at 8.5%.

iii) The compensation of Project Affected Persons (PAPs) for the East African Crude
Oil Pipeline (EACOP) was substantially complete and construction works had
commenced. However, implementation progress by September 2024 was at 40%
compared to the target of 42%, with delays noted in pipeline and marine
terminal construction.

iv) The Kabalega Industrial Park electricity substation is scheduled for completion on
December 15, 2025. I, however, noted that the original design lacked a 132 kV

72
 line bay, required by EACOP to provide electricity for heating the oil during
transportation.

v) The completion of the airport runway by November 2024 was a major milestone.
However, critical infrastructure like the cargo terminal and 240 MW power
substation were still incomplete.

vi) The establishment of a National Petroleum Data Repository Infrastructure

(NPDRI) is essential for efficient and effective management of petroleum data
relating to exploration, development, production, and utilization of oil and gas
resources in the country. The total funding required for NPDRI is UGX.133.5Bn,
but to date, the government has only allocated UGX.7.5Bn. The under funding
has stalled the project progress, currently at 37%. Only the seismic data tape
storage and transcription system are complete.

The various responsible Accounting Officers indicated that good progress was being
made albeit with logistical challenges as well as complexities in design works,
procurements and funding constraints.

Recommendations

 I advised the Accounting Officer of PAU to enhance regulatory oversight to

ensure timely and cost-efficient completion of all critical projects, including the
drilling operations, oil extraction facilities, the EACOP, and the supporting
infrastructure managed by other government institutions.

 I advised the Accounting Officer of UNOC to engage relevant stakeholders to

secure additional funding for the Kabalega Industrial Park and other supporting
infrastructure. Coordination with relevant entities should be enhanced to fast-
track the completion of critical facilities, including the cargo terminal and power
substation, to ensure readiness for first oil.

 The MEMD should formulate and communicate contingency plans for

stakeholders to address potential delays in oil supply chain. The plans should
prioritize timely completion of all interdependent projects to safeguard the
financial viability of the sector and ensure the realization of first oil targets.

 The MoFPED should allocate additional funding for the establishment of the
NPDRI to ensure timely completion of all critical components.

2.1.5 Sustainable Energy Development Programme

a) Access to Electricity

In FY 2023/24, the electricity generation capacity of the country increased to 2,005 MW

due to the synchronization of the 600 MW Karuma Hydro Power Plant (HPP) onto the
national grid. This is 67% of the NDP III capacity target of 2996.8 MW.

73
I also noted that the completion of the Gulu-Agago and Kole-Gulu-Nebbi-Arua
transmission lines had increased the transmission grid coverage by 18% from 4,218
circuit-km to 4,962 circuit-km.

Despite the progress realised, the following observations were noted;

i) Out of the total generation capacity of 2,005 MW, the peak demand is only
1,025.69 MW (as of August 2024), implying a surplus of 979.31 MW. The unused
capacity suggests demand-side dynamics and/or infrastructure limitations.
ii) Uganda Vision 2040, set targets of 60% electricity access by 2027 and 80% by
2030. As of June 2024, only 57% of the population had access to electricity
(19% of grid and 38% off grid), with 36% in the rural areas. The current
statistics raise concerns about the low grid access and the likelihood of achieving
the targets outlined in Vision 2040.

Recommendations

I advised the Accounting Officer of MEMD to;

 Enhance the electricity scale up projects to increase domestic and commercial

consumption, connect the industrial hubs so that the surplus power reaches the
underserved areas.
 Invest in expanding and modernizing distribution networks, including both grid
extension and decentralized solutions for rural communities like mini-grids and
solar home systems.

b) Energy Transition

To support the objectives of Energy Transition by 2030, the NDP III stipulated a review
of three key laws, namely the Electricity Act, the Atomic Energy Act, and legislation for
geothermal development and the establishment of three regulatory frameworks, in
addition to addressing the human resource gap.

The MEMD had made progress in establishing the Minimum Energy Performance
Standards (MEPS) and developing a framework for net metering by the end of
December 2024, which is commendable. However, I noted the following;

i) The amendments to the Electricity Act, the Atomic Energy Act, and the legislation
for geothermal development were incomplete. There is risk of not achieving a
cohesive and comprehensive legal framework for energy sector transformation,
which may hinder the development and utilization of Uganda's geothermal
resources.
ii) The country had a total human resource gap of 6,118 Scientists spread over 17
professions. Of these, only 5 (29%) professions with a staffing requirement of
2,295 (37%) professionals could be trained by the universities in Uganda.

The above raises concerns about the country’s capacity to achieve Energy Transition
objectives effectively.

74
 Management indicated that consultation with key stakeholders to complete the
necessary legislation and to recruit the required staff were underway.

Recommendation

I advised the Accounting Officer of MEMD to prioritize the completion of review and
amendment of the key laws and to expedite the enactment of the geothermal
legislation. In addition, training initiatives should be undertaken to ensure provision of
the human capital required to meet the energy transition objectives.

2.1.6 Agro-Industrialisation Programme

a) Management of the Naigombwa Irrigation Scheme and the Project
Affected Persons under ENREP

In February 2023, MAAIF contracted a Joint venture company to construct Kitumbezi

multipurpose dam and develop Igogero-Naigombwa Irrigation Scheme in Bugiri and
Bugweri Districts respectively at a total cost of UGX.100.3Bn to be completed by
November 2024. Before commencement of the project, the Government was supposed
to have secured 5,500Ha of un-encumbered land through compensation at
UGX.28.987Bn.

At the time of writing my report, MAAIF had made payments worth UGX.15Bn and
physical progress of works was estimated to be at only 4.8%. The delayed progress of
the project was attributed to the following shortcomings:

i) A total of 2,214 PAPs (61%) with claims worth UGX.8.6Bn from 42 villages were
not compensated out of the planned 2,540 PAPs. These should have been paid
before the construction of the dam and irrigation scheme.

ii) I further noted that 819 PAPs with claims worth UGX.081Bn from 17 villages in
Bugiri District had not been verified. These claimants remained on the site and
therefore the project could not take off.

iii) The contractor was advanced UGX.15Bn to mobilize sufficient equipment for
execution of the works. However, only 15 (32%) of the expected 47 units of
equipment were on site, some of which were non-functional.

iv) Despite the contractor being advanced UGX.15Bn, efforts to have the contractor
execute the works have yielded no result because the contractor filed a
complaint with the Dispute Resolution Board.

v) At the time of my report, the development partner had declined to provide an

extension beyond 30th June 2024 due to the unsatisfactory progress of the
works. This has resulted in the accumulation of arrears of UGX.89.1Bn, inform of
signed commitments.

vi) Equipment worth UGX.0.758Bn which includes wheel combined harvester,

tractors and planters, paddy rice seedling trays and walking tractors were

75
 procured on the premise that the dam and irrigation scheme would be completed
and the equipment deployed. However, these equipment were lying idle at the
Ministry’s yard.

Delays to compensate PAPs and low progress of works has resulted in an annual
avoidable cost to government of UGX.8.62Bn. This has also delayed the delivery of
services.

Recommendation

The MAAIF should compensate all PAPs to secure land and allow finalization of pending
works by the successor project.

b) Performance of the National Oil Seed Project Under MAAIF

The National Oil seed Project is supporting farmers in 81 districts to increase production
and productivity in soya bean, ground nuts, sunflower, sesame. The project is in its
fourth year of implementation. During the year, the project embarked on the
procurement of private service providers to provide extension services alongside NARO
and MUK at a cost of UGX.47.5Bn for a period up to 2025/2026 an activity that should
have been done in the second year.

At the time of writing this report, the procurement process had been cancelled by PPDA
citing irregularities. This has affected the execution of project activities as indicated
below;

i) Farmers have not accessed certified seed varieties for sunflower, groundnuts and
sesame except for Soya bean.

ii) Funds meant for research related activities were disbursed late to NARO and
MUK for the two seasons. This affected the development of certified seed
varieties.

iii) The delivery of inputs to the final beneficiary took 30 to 60 days, which was
longer than the expected 30 days before the planting date or date of application.
Late delivery of inputs to the farmers heavily affected planting timelines.

iv) There were few Local Seed Businesses (LSB) to provide certified seeds to the
farmers. Failure to access good quality agricultural inputs affects the quality of
the yield harvested.

v) Farmers were not sensitized on climate smart agriculture technologies such as

the use of tolerant and resistant varieties, timely planting, use of clean planting
materials, Irrigation systems by NARO. This limits awareness and uptake of the
new technologies.

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vi) After the delivery, the Soya bean plants seasons 2023B & 2024A, the plants were
attached by the webworm, which affected productivity. However, there was no
follow-up by MUK to support the farmers.

vii) Ten (10) procurement for key project activities worth UGX.11.3Bn were not
undertaken despite release and availability of funds. Key among these were
weather stations, consultancies and vehicles for monitoring and supervision of
project activities.

The above challenges will affect the performance of the project and result in time
extensions and increased project costs.

Recommendation

I advised the Accounting Officer to address the above challenges to improve the
performance of the project.

c) Performance of the National Oil Seed Project Under MOLG

The National Oil seed Project is supporting farmers in 81 districts through providing
support to market linkage infrastructure in the oil seed sector. The project is funded by
IFAD and GoU through MoLG at a cost of USD.67.5Mn. The Project became effective on
17th December 2019 and is expected to end on 31st March 2029. To date a sum of
UGX.18.32Bn had been disbursed out of the expected UGX.111.98Bn.

I reviewed the implementation of the project and noted that the critical project activities
had not been implemented four (4) years into the project lifetime.

i) Feasibility studies and engineering designs for 1,495 Km of roads worth

UGX.5.5Bn under the second batch were not yet undertaken, awaiting clearance
of the procurement from IFAD.

ii) Environmental and Social Impact Assessments for 1,495Km worth UGX.3.2Bn
were not yet undertaken due to delays in designing the second batch of roads.

iii) Community awareness and social mobilization in all the 81 districts worth
UGX.0.89Bn had not commenced which may result in conflicts with PAPs and
further delays.

iv) Construction and supervision of 1,000Km of road works worth UGX.56.56Bn

under the first batch had not commenced due to inadequate preparedness for
project implementation.

The above challenges will affect the performance of the project and result in time
extensions and an increase in project costs.

Recommendation

I advised the Accounting Officer to address the above challenges to improve the
performance of the project.

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2.1.7 Administration of Justice Programme
a) Case Management and Disposal
1) Case back logs under the Judiciary

Judiciary is an arm of the Government under the doctrine of separation of powers. It is

established under Article 126 of the Constitution of the Republic of Uganda, 1995.

The Judiciary is mandated to administer justice through resolving disputes between

individuals (civil cases) and between the state and individuals (criminal cases), interpret
and uphold the Constitution and the laws of Uganda, Promote the rule of law and
safeguard human rights of individuals and groups, Initiate, develop and implement
training programmes for the development of the Judiciary staff, Contribute to the
enforcement of law and order, enroll and license advocates, license and discipline Court
Bailiffs, maintain custody of laws enacted and disseminate legal literature, collect and
account for government revenue from the courts, and introduce modalities for
alternative dispute resolution (ADR) to reduce the burden of cases on the courts.

I assessed Judiciary’s performance on cases disposal and made the following

observations;

i) A review of 878 case files of civil suits completed in the year 2024 revealed that
781 (89%) had been completed within the stipulated 24 months, while 97 case
files (11%) took between two (2) years to 14 years to be completed. In addition,
a review of a sample of 889 case files of criminal cases completed in the year
2024 revealed that 706 cases (79%) were concluded within the stipulated 12
months, while 183 cases (21%) took anywhere from one (1) year to as long as
22 years to conclude.

ii) I reviewed a sample of the performance statistics for plea bargains in the
Judiciary and observed that the overall uptake and success of the mechanism
need further improvement. For instance, within the selected court performance, I
found that plea-bargains’ success varied from a performance of 0% to as high as
100% within the year.

iii) I reviewed the statistics on mediations to assess their performance and observed
a similar pattern of low performance. Overall, the clearance rates for cases
referred to mediation were 21%, while significantly low performance was
observed at higher courts.

iv) I observed that the average length on remand for petty offences was 2.7 months
against a recommended duration of two (2) months, and six (6) months for
capital offences. A review of the average time spent on remand shows that over
1,722 petty offenders spent between seven (7) to 12 months on remand, while
over 1,313 capital offenders not yet committed to the High Court spent an
average of seven (7) to 12 months on remand, all partly attributed to slow
judicial processes to conclude cases.

78
2) Case backlogs under the Judicial Service Commission

The Judicial Service Commission (JSC) typically handles complaints through a structured
process that involves receipt of the complaint, preliminary evaluation, investigation,
hearing and final decision-making by the Full Commission. I reviewed the performance
of complaints handling by the JSC and noted that;

i) Whereas preliminary evaluation of complaints is expected to take one (1) day,

the JSC often takes longer than the planned timeframe and has accumulated a
backlog of complaints awaiting evaluation. Additionally, JSC did not maintain
summary records of complaints received and evaluated, which prevented me
from assessing the performance of the Commission in complaints evaluation.

ii) The Investigations Department handled only 54% of the cases received from the
evaluation unit under the Directorate of Disciplinary Affairs. Out of the 154
complaints received during the year, the Complaints Investigation Team
investigated and recommended further action for only 84 cases, resulting in a
backlog of investigation cases.

iii) I observed that out of the 198 cases received by the Disciplinary Committee, only
106 were scheduled and heard, reflecting a performance rate of 53%. This
partial performance resulted in a backlog of cases yet to be heard. In contrast,
the full Commission’s performance during the year was a 100% clearance rate of
the cases it received.

3) Case backlogs under the Uganda Human Rights Commission

The Uganda Human Rights Commission (UHRC) was established under the 1995
Constitution of the Republic of Uganda. The decision to establish a permanent body to
monitor the human rights situation in the country was in recognition of Uganda’s violent
and turbulent history that had been characterized by arbitrary arrests, detention without
trial, torture and brutal repression with impunity on the part of security organs during
the pre and post-independence era.

Article 52 (1) of the Uganda Constitution outlines the core function of the Commission to
investigate, at its own initiative or upon receiving a complaint from an individual or
group of the violation of any human right. I assessed the performance of UHRC on
handling of complaints and made the following observations;

i) For the financial year 2023/2024, the Commission was able to conclusively
investigate 531 complaints out of a total of 917, representing a 60%
performance.

ii) A review of 100 files revealed delays of more than one year, with some
complaints going up to 10 years before the completion of investigations. The
Commission had not started on the investigation of 90 out of 681 cases (13.2%)
for over five (5) years.

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iii) I analysed the disposal of complaints by the UHRC tribunal in the financial year
2023/2024 and noted that out of 1,325 cases brought forward, only 171 (13%)
cases were closed.

iv) I noted that files spent an average of four (4) years at the tribunal between the
first hearing and the last tribunal decision, and more than 97% of the total cases
pending at the tribunal level were six years old or more.

4) Case backlogs under the Office of the Directorate of Public

Prosecutions

I reviewed the annual casework performance report for the FY 2023/2024 to establish
the management of prosecution cases during the year under review. The report
analyses the General Casework performance for the financial year 2023-24, focusing on
key metrics related to criminal cases prosecuted, new cases pursued, and stakeholder
engagement. The report evaluates performance against established targets and
identifies reasons for variances. I noted the following from the review;

According to the report, the ODPP did not meet any of the annual targets for the
different cases that were examined. The table below refers;

Table 23: Performance for different categories of Court Cases

Quarter Description Criminal New New Criminal New Criminal Criminal
cases criminal Cases Cases Cases
prosecuted cases Sanctioned for Committed Handled
pursued Prosecution for Trial to Through
High Court Prosecution-
Led
Q1 Target 50,000 30,000 20,000 1,250 30
Actual 57,321 28,448 18,467 547 16
Variance -7,321 1,552 1,533 703 14
Q2 Target 50,000 30,000 20,000 1,250 40
Actual 45,901 23,346 14,818 613 56
Variance 4,099 6,654 5,182 637 -16
Q3 Target 50,000 30,000 20,000 1,250 40
Actual 51,786 24,512 15,585 399 22
Variance -1,786 5,488 4,415 851 18
Q4 Target 50,000 30,000 20,000 1,250 40
Actual 40,648 21,687 12,139 437 15
Variance 9,352 8,313 7,861 813 25
Total Target 200,000 120,000 80,000 5,000 150
Actual 195,656 97,993 61,009 1,996 109
Variance 4,344 22,007 18,991 3,004 41
Source: ODPP Annual Casework Performance Report

The report attributed the shortfall to performance problems within the ODPP, including
poor investigations, high case dismissals and inadequate data collection, as detailed
below;

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i) Inadequate Data Collection

The audit highlighted inadequate data collection practices due to the PROCAMIS
system not being fully implemented across all stations. This lack of
comprehensive implementation has led to inaccurate reporting and an inability to
effectively track cases, particularly in the areas of cybercrime and prosecution-
led investigations. Consequently, this hampers performance assessment and
informed decision-making based on data.

ii) High Case Dismissals under Daily Hearing Project

A significant challenge noted during the audit is the high rate of case dismissals
within the Daily Hearing Project. The primary cause was the ineffective service of
witnesses, often exacerbated by the relocation of witnesses to untraceable
locations. This situation undermines the project's objective to expedite justice,
resulting in increased dismissals that diminish public confidence in the judicial
process and lead to wasted resources.

iii) Poor Investigations

The audit also revealed that poor investigation practices, characterized by

inadequate retrieval of forensic evidence and a lack of corroborative evidence,
have contributed to case collapses. Such inadequacies are especially problematic
in cases lacking eyewitness accounts. The result is a diminished success rate in
prosecutions, which could allow offenders to evade justice.

iv) Delayed release of funds for sessions

The delays in facilitating court sessions were primarily due to budget cuts and
the delayed release of funds. This situation has led to reduced case disposal
rates and fewer concluded cases. Consequently, there is an increasing backlog of
cases, posing potential legal implications for unaddressed matters.

v) Lack of Office Equipment

A further finding from the audit is the lack of essential office equipment, which
stems from insufficient funding for office supplies and equipment. This deficit has
led to delays in case processing, particularly during plea bargain sessions. The
resulting inefficiencies in administrative tasks have a detrimental impact on
overall case management.

Recommendations

I advised MoFPED to increase financial resource allocations, ensure coordinated efforts

within and across institutions, build capacity for staff and leverage technology to support
data management to improve public confidence in the management of justice.

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 b) NIRA’s Readiness for Mass Enrolment and Renewal of National IDs

National Identification and Registration Authority (NIRA) officially began registering

Ugandans and issuing National Identity Cards with a 10-year validity in 2014 to establish
a centralised and comprehensive database of all individuals living in Uganda. Ten (10)
years later, in 2024, the initial batch of IDs were set to expire, and in response, NIRA
launched a mass enrolment and renewal exercise to replace all expiring IDs and to
provide an updated register for the upcoming 2026 elections. I assessed NIRA’s
preparedness for this exercise and made the following observations;

i) NIRA budgeted to receive UGX.600.17Bn for implementing the mass enrolment

and ID renewal over the two financial years 2022/23 and 2023/24. However,
only UGX.262.05Bn was warranted resulting in a shortfall of UGX.338.12Bn,
which is 56% of the budget.

ii) Out of the UGX.262.05Bn that was received, only UGX.38.06Bn was spent while
the balance of UGX.223.99Bn was held in letters of credit. The funds in LCs were
meant for the acquisition of systems and equipment to be used in the
registration which was yet to be delivered.

iii) NIRA had planned to recruit 13,787 temporary staff to support this activity. At
the time of the report only 25 staff had been appointed, 11,595 staff passed final
interviews but were not yet issued with appointment letters while 2,192 staff had
not yet been recruited.

iv) NIRA planned to have citizens living abroad pre-register online or at the nearest
embassy and some registration kits were allocated for the purpose. However,
there was no budget and timelines allocated for this exercise. Due to this,
citizens abroad may not participate in the 2026 elections.

Recommendation

I advised the Accounting Officer to institute mechanisms to track and monitor the
utilisation of the unabsorbed funds and fast track the recruitment of staff to support the
exercise. Further, Government should develop a clear plan for the timely registration of
diaspora citizens and provide the required resources.

2.1.8 Governance and Security Programme

a) Implementation of the Roadmap for the 2025-2026 General Elections

In preparation for the 2026 general elections, the Electoral Commission issued a road
map containing timelines for all activities leading to the general elections.

The Commission was supposed to implement Phase-1 of the road which comprised of 14
key activities worth UGX.75Bn by 30th June 2024, key among which were re-organisation
of polling stations, recruitment of election supervisors, voter education, digitalization of
election documents, procurement of specialised equipment among others. However, at
the time of my report (December 2024) only one activity (demarcating election areas)

82
worth UGX.9.52Bn had been fully completed. The other 13 activities were on-going but
significantly behind schedule due to underfunding.

Delayed implementation of Phase-I activities will affect the commencement date for the
next phases and ultimately distort the implementation of the road map.

Recommendation

I advised the Accounting Officer to engage MoFPED and Parliament for the required
funds and fast-track the implementation of all pending activities.

b) Challenges in Missions Abroad

Uganda’s missions and Embassies are mandated to promote and strengthen Uganda’s
interests and image abroad. I inspected 37 missions and noted the following cross
cutting challenges in their operations.

i) Twenty-three (23) Missions received UGX.12.81Bn from programmes for which

they have no contribution as per the NDP-III programme allocation. This matter
has been discussed with NPA and PS-MOFA and will be rectified to improve the
alignment to the programme objectives in NDP-IV.

ii) Twelve (12) missions recruited 144 local staff who earned a total of
UGX.14.07Bn during the year without approval by the Permanent Secretary of
MoFA which was contrary to Section (A-a) paragraph 9(f) of the Public Service
Standing Orders.

iii) Seven (7) Missions paid out UGX.1.30Bn to Mission officials travelling from their
duty stations to undertake mission activities within the host country using rates
for travel abroad to cater for their allowances. This was due to lack of clarity on
which rates to use in such circumstances from MoPS.

iv) Twenty-eight (28) Missions were not availed capital development funds despite
the urgent need for funds to replace old furniture, procure ICT equipment, utility
vehicles, undertake repairs and refurbishment of Chanceries and the
Ambassador’s residences among others. This has affected Uganda’s image
abroad.

v) On-going construction projects in 12 Missions were behind schedule. The

Contract Management Teams (CMTs) and Accounting Officers promised to
enhance contract supervision and monitoring to avoid further delays.

vi) Uganda is currently under cautionary sanctions of the African Union due to its
outstanding contribution to the African Union amounting to UGX.13.5Bn and as
such, it is prohibited from speaking on any matter on the agenda of the African
Union under Rule 23(1) of the AU financial rules (FR).

The above matters were brought to the attention of PS-MoFA for appropriate redress.

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2.1.9 Regional Balance Development Programme
a) Processing and Approval of Physical Development Permissions

In order to improve on the efficiency of the process of applications for development

permission and permits, KCCA under the Directorate of Physical Planning introduced the
Smart Permit to be used for receipt and processing of development applications. In
addition, the Directorate of Engineering and Technical Services uses the Building
Industry Management System (BIMS) to handle online application, processing and
approval of building permits.

An assessment of the turnaround time to process development applications was

undertaken on a sample of 252 development applications received over a period of two
(2) years. The following were observed;

i) It took an average of 117 working days from receipt of the application to making
a decision (approve/reject/defer) by the Physical Planning Committee (PPC)
following the recommendation by the Technical Review Team (TRT).

ii) The Technical Review Team took an average of 132 working days to advise PPC
on the decision taken on an application. Worse still, 38 development applications
had not left the TRT stage for more than 147 working days.

The above delays were caused by;

i) The Authority did not have a client charter which stipulates the average time that
should be taken by the TRT and PPC to process and make decisions on
applications.

ii) The BIMs and the smart permit system were not Integrated which affected the
time for processing of applications.

iii) Despite having the automation, the processes of review, issuance of comments,
decision making and communication of review comments to the applicant was
manually done due to the unstable smart permit system which worsened the
delays.

iv) Due to the manual processing of applications, it is difficult to track processing

time and as such long outstanding applications cannot be identified and flagged.

v) The TRT and PPC do not promptly follow-up on the comments made on the
applications which further delays resolving the deferred cases.

vi) The directorate is understaffed by 71% with 46 positions vacant. This affects the
capacity of the directorate to undertake field inspections prior to approval of the
development applications.

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 vii) The directorate of Physical Planning does not have designated vehicles for pre-
approval inspections and currently uses pool vehicles for field activities
depending on availability.

The long turnaround times have encouraged illegal developments and increased the
costs of development control (compliance enforcement). Further this has affected
revenue performance. From my analysis KCCA collected UGX.15.9Bn in the last three
years, however more revenue could have been collected had it not been for these
inefficiencies.

The Accounting Officer explained that the Directorate of Physical Planning is migrating
to the Integrated Revenue Administration System (IRAS), which has a Physical Planning
module that covers all the Permits issued by the directorate. IRAS is already integrated
with NIRA; URA; URSB; and IFMS. KCCA has written to the MoLHUD requesting for
integration with the Land Information System and are in talks with the National Building
Review Board (NBRB) to integrate with Building Industry Management System (BIMS).

Recommendation

I advised the Accounting Officer to review the entire process flow and fast track the
migration to the IRAS system so that the current automation challenges are addressed.

2.1.10 Public Sector Transformation Programme

a) Progress of Implementation of the Rationalisation of Government
Agencies and Public Expenditure

Government of Uganda embarked on the Rationalisation of Government Agencies and

Public Expenditure (RAPEX) to eliminate structural and functional duplications and
overlaps, reduce wasteful expenditure and realise short- and long-term savings. I
reviewed the rationalisation process and observed the following;

i) Out of the 41 Bills that gave effect to RAPEX, 36 Bills affecting 43 institutions,
had been passed by Parliament, while four (4) affecting 7 institutions were
pending legislation in Parliament.
ii) Forty-three (43) entities have either been merged, mainstreamed, or transferred
to their parent Ministries.

Engagement with various Accounting Officers of the affected entities revealed the
following challenges;

i) There was no clear strategy regarding the staff from the rationalised entities will
be absorbed within the Parent Ministries and this has affected staff morale.

ii) Although the Accountant General has issued guidance on transfer of assets and
liabilities by the rationalized entities, some entities were having challenges in
transferring cash and inventory.

85
 iii) Whereas there is a general roadmap by the Ministry of Public Service, I found
that the Parent Ministries had not developed a re-organisation strategy to realise
the merger. The legal instruments (and laws) to realise the merger are yet to be
approved by Parliament. Similarly, the financial implication of the merger is yet
to be presented by the Ministry of Finance to Parliament for approval.

iv) I observed that, although staff had been given short-term contracts to December
2024, the criteria for the roles, or staff who will be retained, and those that will
be retired have not been decided and communicated. This lack of clarity has
created uncertainty and affected staff morale.

v) I noted that some of the rationalised entities have board members with running
contracts far beyond the transition period. However, no clear arrangements exist
on how the boards will be dissolved.

vi) There were notable delays in the validation, recruitment and placement of staff
for institutions whose boards had not been fully constituted or were not fully
prepared for the activity such as NPA, UWA and UFZEPA.

vii) Some of the Institutions which have finalized validation have not paid salaries to
the employees who have been absorbed in the Parent entities such as URSB.

My engagement with the Accounting Officer of MoPS revealed that clear guidance had
been developed and disseminated to the affected entities. This indicates a lack of
awareness by the affected Accounting Officers regarding the MoPS guidance.

Recommendation

I advised the Accounting Officer of MoPS to undertake sensitization and awareness

engagements with the affected Accounting Officers to support smooth transition and
implementation of the RAPEX process.

2.1.11 Community Mobilization & Sensitization Program

a) Low Absorption of GROW Project Funds

The Generating Growth Opportunities and Productivity for Women Enterprises (GROW)
project implemented by the MoGLSD, aims at providing entrepreneurial services to
enable female entrepreneurs to grow their enterprises in targeted locations, including
host and refugee districts.

The project worth USD.217Mn is funded by the World Bank and became effective on
20th January 2023. It targets to benefit over 60,000 female owned enterprises
including 3,000 refugee-owned business, 280,000 women entrepreneurs and
employees including 42,000 refugees, 14,000 host community members and 1.6 million
indirect beneficiaries.

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 Out of the total disbursement of UGX.52.18Bn, only UGX.10.96Bn (21%) was
expended, resulting in an unspent balance of UGX.41.22Bn. The unspent funds were
still held on the Project bank accounts by the time of this report.

The low absorption was attributed to the delays to develop manuals and recruit staff.
In addition, MoGLSD had not yet trained and sensitised beneficiaries.

The Accounting Officer explained that training and sensitization of the women
entrepreneurs would commence in February 2025, since the development of the
curriculum was concluded.

Recommendation

I advised the Accounting Officer to expedite the training and sensitization programs to
ensure that the beneficiaries can apply and thereafter utilize the funds for their
enterprises.

2.1.12 Climate Change, Natural Resources, Environment & Water Management

Programme
a) Solid Waste Management

During the implementation of the USMID-AF project, significant interventions in solid

waste management were undertaken, resulting in improvements in disposal across
participating Cities and Municipalities.

I noted that solid waste management is still a challenge in the Cities and Municipalities.
The quantities disposed-off remain low compared to the volumes generated. In the 3-
year period (2021/22 - 2023/24), only 37% of the total 4,034,740 tonnes of the
generated solid waste was collected and disposed off, as illustrated in Fig below;

Figure 4: Garbage collected in Cities and Municipalities

Garbage Collection in Cities and Municipalities

1,509,730

4,034,740

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 Specifically, the Cities collected and disposed off 1,109,833 tonnes (34.4%) of the
planned 3,222,277 tonnes of waste generated, while the Municipalities collected and
disposed off 399,897 tonnes (50%) of the generated 812,462 tonnes.

The best performing were Fort-Portal City and Soroti City which collected and disposed
off 86% of the garbage collected in their respective jurisdictions, followed by Kamuli MC,
with a performance of 79%. The worst performing administrative units were Lira City,
Tororo MC and Kitgum MC, whose performance was 10%, 28% and 30% respectively.

I noted a gap in policy and infrastructure development. The MoLHUD had not developed
a national solid waste management policy and had not implemented plans for resilient
infrastructure and waste recycling. This hampers Solid Waste Management coordinating
efforts in the Cities and Municipalities.

Recommendation

I advised the Accounting Officer of MoLHUD to expedite the development of the policy
to ensure a comprehensive approach to solid waste management in the Cities and
Municipalities to improve and secure environmental resilience and public health.

b) Delayed settlement of water Bills by Government entities

It was observed that National Water and Sewerage Corporation (NWSC) had receivables
of UGX.355Bn. Out of the figure, UGX.72.5Bn (20%) relates to unpaid bills by
government Ministries, Departments and Agencies (MDAs). Some unpaid bills have been
outstanding for more than two (2) years.

The above was brought to attention of government in which the PS/ST (referenced ISS
58/255/01 dated 21st February 2023) committed to settle verified water bills totalling to
UGX.43.1Bn, starting with UGX.12.8Bn in FY 2023/24 and the balance in the next 4
years. I however noted that the PS/ST did not fulfil the commitment to settle the
outstanding water bills.

The above creates financial strain on NWSC, limiting its ability to invest in infrastructure,
maintenance, and service expansion, which adversely affect the quality and reliability of
water supply services.

Recommendation

I advised the management of the Corporation to continue engaging the PS/ST to honour
the commitment made and settle the debts owed by MDAs.

2.1.13 Development Plan Implementation Programme

a) Revenue collection by Uganda Revenue Authority

I undertook a trend analysis of revenue collected in the last two financial years and
noted that collections increased by 8% in the financial year 2023/2024. Details are in
Table below;

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Table 24: Revenue Collection for the past two Financial Years
Revenue Category 30th June 2024 30th June 2023 Revenue
UGX Bn UGX Bn Growth
rates
Customs and Excise Taxes 8,160.096 7,711.015 6%
Value Added Tax 7,800.111 7,291.843 7%
Taxes on Gains, Profits, Fees and Licenses 10,221.045 9,151.937 12%
Non-Tax Revenue 1,573.389 1,471.969 7%
Petroleum Revenue 184.056 124.965 47%
Total Gross Revenue Collections 27,938.697 25,751.729 8%

From the above table, the Authority’s actual gross revenue collection was
UGX.27,938.694Bn compared to UGX.25,751.729Bn for the FY 2022/2023. The
performance represents an average revenue growth of 8%.

The upward trend in revenue collections is partly attributed to increased compliance

levels among the taxpayers arising from improved tax administration by the tax body.

Despite the above growth (in comparison with the prior financial year), the Authority,
however, registered a revenue shortfall of UGX.1,917.470Bn (6.5%) against the current
year’s target of UGX.29,856.164Bn.

The failure to attain the set revenue target affects the overall revenue performance and
cash flow performance of the Government.

Recommendation

I advised Management to enhance its initiatives to grow revenue collections and meet
the set revenue targets sustainably.

b) Management of Public Debt by MoFPED

Uganda’s external debt as at 30th June 2024, made up of Multilateral Creditors, Bilateral
Creditors and Commercial Banks, increased by 2.21% in overall during the year. The
national debt remained high at UGX.54.365Tn (FY 2023/24) from 53.19Tn (FY 2022/23).

The table and fig below illustrate;

Table 25: External Debt

Financier FY 2022/23 FY 2023/24 % Change
UGX Bn UGX Bn
Commercial banks 7,145.582 6,438.874 (9.89)
Bilateral creditors 12,982.109 12,774.758 (1.60)
Multi-lateral creditors 33,063.500 35,152.316 6.32
Total 53,191.191 54,365.948 2.21

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 Figure 5: External Debt by Category

Source: DMFAS

The increase in the country’s external debt portfolio was majorly attributed to a
significant rise in debt from Multilateral Creditors, which increased from UGX.33,063.5Bn
to UGX.35,152.3Bn (6.32%).

It can also be noted that, debt from Commercial Banks reduced by 9.9%, dropping from
UGX.7,145.582Bn to UGX.6,438.874Bn. Similarly, debt from Bilateral Creditors reduced
from UGX.12,982.109Bn to UGX.12,774.758Bn in the FY 2023/24.

The continued increase in external debt could in the long run, strain Uganda’s fiscal
sustainability and limit resources available for domestic spending.

Management attributed the performance to the reduction in financing from bilateral

creditors is primarily attributed to a shift away from concessional financing towards
Export Credit Agency (ECA) financing, where bilateral creditors are increasingly opting to
support their exporters.

Recommendation

I advised the MoFPED to review and enhance its medium-term debt management
strategy to reduce reliance on debt and ensure sustainability as it embarks on
implementation of the NDP IV.

c) Management of Revenue collections from Telecom Companies by

Uganda Revenue Authority - Assurance consultancy services for audit
of Telecoms

Uganda Revenue Authority on 31st May 2023 signed a contract with M/s Safaritech
Limited Company incorporated in Kenya for the provision of Consultancy Services for the

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Audit of Telecoms at a contract price of UGX.15.7Bn and an additional 5% revenue
share of the new revenue recovered by URA from the audit and paid to URA.

The contract was expected to run for 18 months ending on 30th November 2024. The
terms of reference included reliability and completeness of all revenues declared by the
sector players; establishing the tax due, and knowledge transfer to 15 URA staff telecom
Auditors. By September 2023, the entire contract amount had been paid.

A review of the contract implementation revealed the following;

1) Evidence of delivery of Hardware and Software components

UGX.11.4Bn equivalent to USD.3Mn (72%) was allocated to the procurement of

hardware and software and URA had not verified whether the items were procured as
per the terms of the contract. The contract indicated that the equipment would be
handed over at the end of the contract. There is a risk that the equipment procured may
not be appropriate and as such URA may receive inferior and unusable equipment at the
end of the contract.

2) Delays in the implementation of the consultancy

The contract was expected to end by 30th November 2024, however, the vendor was still
in the process of obtaining necessary information from Airtel Uganda, there were no
reports or updates on audits of other telecoms, including Smart Telecom, Roke Telecom,
Liquid Telecom, Lyca Mobile, among others. There was no evidence that knowledge
transfer terms of reference had been delivered casting doubt on the sustainability of the
intervention.

3) Potential violation of the Data Protection provisions

I observed that the consultancy is being conducted in Kenya and the data sets being
transmitted include personal information that may be misused.
Recommendations

I advised the Uganda Revenue Authority to;

 Fast-track the delivery by ensuring that the telecom companies submit the
required data sets to expedite the process.
 Institute robust monitoring of the consultancy to ensure expeditious delivery of
the contract.
 Enhance the contract provisions to ensure data protection provisions are adhered
to.

d) Potential revenue loss arising from the misclassification of

concentrates as pre-mixes by Uganda Revenue Authority

According to the East African Community Customs Union common external tariff,
Harmonized Commodity Description and Coding System (Version 2022) the animal
premixes used in the manufacture of animal and poultry feeds are coded under

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2309.90.10 and attract import duty of 0% per kilogram, while the other preparations of
a kind used in animal feeding are coded under 2309.90.90 attracting the import duty of
10% per kilogram.

Generally, the pre-mixes are used in small amounts in poultry to provide critical micro-
nutrients (vitamins, minerals) or additives needed for optimal health and productivity
while animal concentrates focus on macro-nutrients (energy and protein) and make up a
significant part of the poultry diet.

A review of the data extracted from ASYCUDA customs system relating to preparations
of a kind used in animal feeding revealed the following;

i) One thousand two (1202) instances involving imported consignments being

regarded as animal premixes to be used in the manufacture of animal and
poultry feeds and coded under customs code 2309.90.10 and attracting import
duty of 0% per kilogram as opposed to being considered as concentrates (other
preparations of a kind used in animal feeding) coded under customs 2309.90.90
attracting the import duty of 10% per kilogram.
ii) The 372 importers were exempted from import duty and VAT on importation
arising from the classification of animal concentrates as premixes resulting in a
loss of Government Revenue.

Management explained that a new proposal has been made to the EAC Sectoral Council
on Trade, Industry, Finance and Investment (SCTIFI) to provide clarity and
harmonization of the provisions of the EAC Common External Tariff, but clarity has not
been provided yet.

Recommendation

I advised the Commissioner General to continue engaging the EAC Sectoral Council on
Trade, Industry, Finance and Investment to streamline the classification of animal feeds
to avert the potential revenue loss to the Government. In addition, the above
misclassification intended to avoid taxes should be investigated.

e) Delays in discharging tax disputes under the Tax Appeals Tribunal

I analysed the trend of cases under the Tax Appeals Tribunal and observed that
whereas the tax appeal cases are increasing, the cases being handled have remained
low, as indicated in the table below;

Table 26: Discharge of tax disputes over the years

SN Tax Case 2021/22 2022/23 2023/24
Category
No. of Amount No of Amount No of Amount
Cases (UGX Cases (UGX Cases (UGX
’Bn) ’Bn) ’Bn)
1 Ruled 85 289.36 19 5.615 30 45.35
2 Consented 95 404.42 91 45.90 95 155.57
3 Remitted 10 71.12 6 3.536 3 2.84

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 SN Tax Case 2021/22 2022/23 2023/24
Category
No. of Amount No of Amount No of Amount
Cases (UGX Cases (UGX Cases (UGX
’Bn) ’Bn) ’Bn)
4 Withdrawals 25 19.88 40 17.13 32 15.23
5 Pending 163 356.64 212 331.9 398 1,058.15
TOTAL 378 1141.42 368 404.081 558 1,277.1
4

I noted that the appeal increased by 108% and the effective rate was 5.37% based on
the ruling made by the tribunal.

Management attributed the performance to inadequate Tribunal Members who heard the
case and the aggressive tax assessment regime. The current Tribunal members stand at
7.

Recommendations

I advised management of URA to;

 Engage the Minister responsible to increase the number of Tax Tribunals and to
institute measures to reduce the number of case backlogs.
 Improve the effectiveness of the Alternative Dispute Resolution processes and
enhance tax education to reduce the number of tax cases escalated to the Tax
Tribunal.

f) Implementation of the PDMIS by the Ministry of Information,

Communications Technology and National Guidance

During the year, I reviewed the Parish Development Management Information System
(PDMIS) and noted that the PDMIS was required to cover seven pillars. At its full
implementation, the system will have; the registration & data collection, Production,
Processing and Marketing, Infrastructure, Financial inclusion module, Social Services,
Community mobilization & mindset change, and Monitoring and Evaluation (M&E)
modules.
The implementation started in FY 2021/22, with the Registration & data collection,
Financial Inclusion, and Monitoring & Evaluation modules in the first phase.
A review of the system revealed the following;

i) Out of 7 modules; 2 were fully implemented, 2 partially implemented, while 3

were not implemented and key objectives of the implemented modules were
achieved.

ii) Out of the total 10,594, 9,366 (88.4%) PDM SACCOs had been onboarded onto
the Wendi platform.

iii) UGX.41.7Bn had been disbursed through the PDMIS to beneficiaries, outside the
Wendi Platform, contrary to the guidelines.

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 iv) The Ministry of ICT is trying to interface Wendi platform with other existing core
banking systems while the MoFPED is only integrating with Post Bank through
the Wendi platform and all other Government and supervised financial
institutions banks should utilize the Wendi platform from Post Bank.

v) As at 28th November 2024, 174 out of 176 HLGs including KCCA were included
on the system with a variance of 2 not included.

Management explained that the Pillar Manager at MoICT&NG explained that the pending
activities had not been carried out due to insufficient funding and that management
opted for a phased mode of implementation to sequentially have all the unimplemented
modules accomplished.

Recommendation

The Ministry of MoICT&NG should engage the MoFPED and other stakeholders to secure
funding for the full implementation and maintenance of the system.

2.1.14 Innovation, Technology Developments and Transfer Programmes

a) Regulation/Management of Research Activities

The Uganda National Council for Science and Technology (UNCST) is mandated to
regulate Science, Technology and Innovation in the Country. Over the last seven (7)
years, the government has invested UGX.7321Bn in development of research
infrastructure.

In the last three (3) years, Government has provided UGX.23.99Bn (27%) of the
required UGX.88.3Bn to fund research related activities to supplement the infrastructure.
This underfunding has affected the effectiveness of research regulation and oversight as
highlighted below;

i) The country currently has no National Science Innovation and Technology

agenda and Technology transfer guidelines since expiry of the previous in 2018.

ii) Some of the entities involved in research did not have the Research Ethics
Committee (REC) to conduct continuous review of research projects. As a result,
research conducted by these entities was not regulated.

iii) Out of 2,592 registered and approved research protocols, UNCST only monitored
96 (3.8%) research protocols with compliance levels at only 20% on average.

iv) Only 57% of the research actors did not have knowledge on the research
clearance process in Uganda. Further, 66% did not have the capacity to
successfully manage research projects due to limited sensitization.
v) The various IT systems that support research were not yet integrated, which
affected efficiency with which research data can be shared, kept, accessed and
disseminated.

1
NSTEI project. UGX.435Bn, Kiira motors UGX.223Bn, NEC-Kakooge UGX.74Bn

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 vi) I further noted that UNCST deviated from its mandate of regulating research and
procured 214 pieces of construction equipment worth UGX.148.2Bn for renting in
May 2022. At the time of this report, 105 equipment worth UGX.72.45Bn were
still parked and idle at the parking yard in Lyantonde, Namanve and Rwebitete.

As a result of the above challenges, research and innovation in the country is being
undertaken in an uncoordinated manner and its regulation is not effective.

Recommendation

I advised MoFPED to prioritise funding for regulation of research and innovation in the
country.

2.1.15 Tourism Development Programme

a) Backlogs in Uganda Wildlife Authority Cases resulting from conflict of
wildlife and communities

Uganda wildlife Authority (UWA) has over 100 civil and criminal cases relating to attacks
of wild animals on persons and communities around the national parks and conservation
centres, as well as illegal activities by illegal entrants into the protected areas.

From the reviews of availed cases, I observed that some had been on ongoing for over
15 years.

There is an increased backlog of cases annually which may overstretch the entity’s
budget if not well managed. Long outstanding cases infringe on the individual and
community rights.

The Accounting Officer explained that management continues to engage the relevant
stakeholders, including the Principal Judge regarding long outstanding cases.

Recommendation

I advised the Accounting Officer of UWA to follow-up with the relevant stakeholders to
clear the backlogs and compensate individuals and communities affected.

b) Delayed disbursements and lack of accountability for revenue shared

with Local Governments by Uganda Wildlife Authority

Section 65 (4) of the UWA Act 2019, Act Cap 315, states that the Board shall authorize
the Executive Director to pay twenty per cent of the park entry fees collected from
wildlife protected area to the local Government of the area surrounding the wildlife
protected area from which the fees were collected as a conditional grant. The aim of this
arrangement is to manage the human wildlife conflicts and livelihood improvement of
the communities surrounding the protected areas.

During the audit, I noted that the Executive Director had disbursed UGX.1.539Bn in
respect of revenue sharing to 12 District Local Governments surrounding Queen
Elizabeth area. However, the outstanding revenue share of 20% meant for disbursement

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 to the surrounding communities in National parks increased from UGX.7.444Bn to
UGX.16.602Bn as at 30th June 2024.

Delayed disbursement of revenue share contravenes the law and denies the surrounding
communities services. In addition, it may lead to erosion of community trust, increased
poaching and other illegal activities around the parks and conservation centers, thereby
affecting sustainability of tourism.

The Accounting Officer explained that in compliance with the Wildlife Act, the Revenue
Sharing (RS) scheme and regulations, 2022, funds are released after receiving
accountability for previous releases and approval of project proposals generated by
community members. The undisbursed funds were due to lack of accountabilities.

Recommendation

I advise the Accounting Officer of UWA to establish a simplified community-based

accountability framework to guide, monitor and enforce accountability to ensure
compliance with the requirements of the law.

c) Failure to establish the Tourism Fund by the Uganda Tourism Board

Section 20 (1) and (2) of the Uganda Tourism Act, Cap 82 requires UTB to establish a
Tourism Development Fund in a bank approved by the Minister of Tourism, where all
income and monies of the Board shall be deposited.

To the contrary, I noted that the Fund had not yet been established by the Board and
there was no verifiable effort to indicate a move towards that direction.

The failure to establish the Tourism Fund was attributed to management’s laxity and
undermines the furtherance of the objectives and functions of the Board as envisaged
by the Tourism Act.

Management explained that the Ministry is in the process of revising the Tourism Legal
Framework to provide a framework for the Tourism Fund.

Recommendation

I advised the Accounting Officer, in consultation with the relevant stakeholders, to

expedite the setting up of a Tourism Fund to mobilise revenues for further developments
in the Tourism Sector.

2.1.16 Digital Transformation Programme

a) Failure to Charge 2% Gross Annual Revenue for Registered Television
Stations and FM Radio Stations by Uganda Communications
Commission

The UCC New License framework on fees and fines under General Notice No. 977 of
2017 imposes a 2% levy on television and radio operators.

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However, I noted that UCC has not enforced the payment of a 2% gross annual levy on
the licensed Television and FM radio operators. As a result, none of the licensed
Television and FM radio operators has been assessed and revenue collected.

Failure to collect a 2% Gross Annual Revenue levy from the operators deprives the
Commission of revenue and realization of the objectives in the sector. It also scales back
the amount of money received by the Consolidated Fund hence trimming the national
resource envelope.

The Accounting Officer explained that the Broadcasters appealed the levy to the Minister
of ICT and National Guidance and that the appeal has not yet been resolved. The
Commission is currently reviewing the Communications Act and a proposal for a
separate levy tier for broadcasters has been incorporated.

Recommendation

I advised the Accounting Officer to comply with the provisions of the law and institute a
mechanism to levy a charge on the GAR of these operators.

b) Management of NBI/EGI by the National Information Technology

Authority of Uganda

The Authority reported revenue from exchange transactions of UGX.24.223Bn. Some of

the services the Authority offers include; a) Internet Bandwidth, b) NBI Leased capacity,
c) Dark Fibre utilization, and d) Certification of IT services and product providers. The
NBI/EGI commercialization contract provided for 50%: 50% sales revenue collected
sharing between NITA-U and M/s Soliton Telmec Uganda Ltd. My review of the
management of the NBI/EGI revealed the following;

i) 366 sites without signed acceptance of Memoranda of Understanding and Service

Level Agreements were allocated more bandwidth than the signed capacity. In
addition, the signed capacity is what is billed and over-delivered bandwidth is not
billed. This implies that the over-delivered bandwidth of 5,781 Mbps, which was
valued at UGX.9.864Bn was not billed.
ii) Out of the 719.47 Kilometers of dark fibre rolled out in the country, only 15%
(108.67 Kilometres) of dark fibre service was provided to 6 MDAs compared to
the 85% (610.8 kilometres) provided to 7 private customers.
iii) 9 MDAs and LGs that had applied for accessing the NBI/EGI or upgrading their
internet bandwidth had not been connected for periods as long as six months
and others for more than one year.

The Accounting Officer explained that the challenge stems from the limited budgets
allocated by the connected MDAs. These budgets are insufficient to adequately cater to
the ideal bandwidth required to support their operations. He further explained that to
mitigate this, NITA-U has continued to provide support to these MDAs by utilizing the
available buffer capacity from the bulk Internet procured for the Government.

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 Recommendation

I advised the Accounting Officer to prioritize and maximize the utilization of NBI/EGI
services by agencies as a way of promoting the digital transformation agenda of the
Government and reducing revenue loss.

2.1.17 Sustainable Urbanisation and Housing Programme

a) Undercapitalization of the NHCCL

Sustainable Development Goal (SDG) 11 aims to make cities and human settlements
inclusive, safe, resilient, and sustainable. The SDG emphasizes the urgent need for a
comprehensive approach to urban housing crisis, including providing varied housing
options and equitable access to basic services.

The National Housing and Construction Company Limited (NHCCL) is a key institution
tasked with implementing housing development programs in the country. According to
the NHCCL Strategic Plan, 2018 - 2022, the country has a national housing shortage
estimated at 1.6 million housing units.

To produce mass and affordable housing, NHCCL resolved to capitalize the company to
a tune of UGX.231.5Bn through a rights issue, in which the Government of Uganda
(GoU) would contribute UGX.118Bn.

In the year under review, the government allocated only UGX.30Bn (25%) of the
expected GoU contribution. As a result of the undercapitalization of the NHCCL, only
1,474 (2.12%) out of the planned 69,288 units were constructed during the strategic
plan period.

Management stated that the matter of undercapitalization had been brought to the
attention of Parliament which recommended budget provision. In addition,
engagements with MoFPED were ongoing to secure the necessary funds for housing.

Recommendation

I advised the Accounting Officer to continue engaging the relevant stakeholders for
increased funding to undertake housing projects to reduce housing shortage in the
country.

2.1.18 Manufacturing Programme

a) Outdated Standards and Delayed Approval of standards by Uganda
National Bureau of Standards

The National Standards Council is mandated by Section 15(1) of the UNBS Act CAP 210
to establish and declare specifications for any commodity or for the manufacture,
production, processing, treatment or performance of any commodity to be a standard
specification.

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 However, I noted 75 standards that had been presented to the Council for approval
but have not been approved due to lack of Council. The Council was disbanded by the
line minister during the year.

In addition, a review of the standards catalogue as of November 2024 revealed the

existence of 1,139 standards that were due for renewal to meet the current operational
environment. I noted that the outdated standards relate to the frequently used items
such as Petroleum, petrochemical and natural gas industries - Lubrication, shaft-sealing
and control-oil systems and auxiliaries, Insulated flasks, and Maize grain among others.

This could lead to sub-standard commodities being imported into the country since
they do not have a mandatory standard to be tested against.

Recommendation

I advised the Accounting Officer to liaise with the Minister to ensure that the Council is
constituted so that pending standards are approved and outdated quality standards
reviewed.

2.2 Observations from other Compliance Areas

During the financial year, I conducted audits on other compliance areas whose summary
findings are provided here.

2.2.1 Special Audit of the Pension and Gratuity Payroll

Introduction

In a letter dated 29th November 2022 and referenced HRM 155/222/02, the Hon.
Minister of Finance, Planning and Economic Development requested the Auditor General
to conduct a special audit on the Salary, gratuity and pension payroll management
processes and provide recommendations for improvements.

Pursuant to Article 163 of the Constitution of the Republic of Uganda, 1995 (as
amended) and Sections 13 and 22 of the National Audit Act (NAA) Cap 170, I undertook
a special audit on the payroll for active staff in the 2023 Audit year and completed it. I
commenced the pension and gratuity payroll under the Pensions Act, Cap 89 in the
current audit year, 2024.

The overall objective of the special audit was to establish the effectiveness of pension
and gratuity management processes and recommend remedial measures. The special
audit covered a period from FY 2019/20 to 2023/24.

I carried out the Special audit in a total of 238 entities (comprised of 62 Ministries,
Departments and Agencies (MDAs) and 176 Local Governments). The key findings
arising from the special audit on the pension payroll and gratuity management are
below:

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2.2.1.1 Funding of Pension, Gratuity and Arrears

62 MDAs and 176 LGs had an initial approved pension, gratuity and arrears budget of
UGX.3Tn for the period under review, and also obtained supplementary funds of
UGX.170.422 Bn (MDAs) and 600.269 Bn (LGs) resulting in a revised budget of
UGX.3.773 Tn out of which UGX.3.685 Tn (98%) was released resulting into a funding
shortfall of UGX.0.088Tn (2%), as shown in table below;

Table 27: Budget and releases for the period

Particulars FYs
2019/20 2020/21 2021/22 2022/23 2023/24 Total
Amounts in UGX’Bn
Total Initial Budget (A) 519.96 574.57 592.65 750.80 564.24 3,002.22
Total Supplementary (B) 64.24 75.10 45.10 218.72 367.53 770.69
Total Revised Budget (C) 584.21 649.67 632.17 969.52 931.77 3,772.92
Total Warrant/Release (D) 569.06 637.87 621.64 935.64 915.49 3,685.30
Amount not released (E=C-D) 15.14 11.79 10.52 33.88 16.28 87.62
Total %age performance 97% 98% 98% 97% 98% 98%
(D/C) *100
Source: OAG Analysis

Funding shortfalls led to the accumulation of arrears. Over funding ties up funds which
would have been used to deliver other public services.

The Accounting Officers attributed the shortfall to inadequate release of funds and
overfunding to release of supplementary funds without the Accounting Officers’
requests.

Recommendation

I advised the Ministry of Finance, Planning and Economic Development to ensure the
release of funds in accordance with the appropriation. In addition, all supplementary
budgets should be supported by appropriate requests to enhance accountability and
responsibility as required by PFMA.

2.2.1.2 Absorption of pension and gratuity funds

Out of the total funds released of UGX.3.685Tn, UGX.1.405Tn to 62 MDAs and

UGX.1.903Tn to 176 LGs was utilized resulting in un-utilized funds of UGX.0.38Tn. The
under-absorption of released funds resulted in non-payment of pensioners and
accumulation of arrears.

2.2.1.3 Diversion of pension and gratuity funds

Paragraph 10.4.1 of the Treasury Instructions, 2017 requires that in reviewing payment
requests, an Accounting Officer shall have a primary responsibility of ensuring that there
is no mischarge and diversion of funds through wrong coding of transactions. An
Accounting Officer shall be held personally liable for any wrong charge accounts used for
expenditure incurred by his or her vote.

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 I noted that 19 MDAs and 36 LGs diverted funds amounting to UGX.14.63Bn for pension
and gratuity to other activities as summarized in table below;

Table 28: Funds diverted

Particulars Number 2019/20 2020/21 2021/22 2022/23 2023/24 Total
MDAs 19 0.139 0.363 6.810 2.912 1.391 11.613
LGs 26 1.701 0.423 0.158 0.391 0.345 3.018
Total 55 1.840 0.786 6.968 3.303 1.735 14.630

The diversion of funds meant for pension and gratuity affects the livelihoods of the
intended beneficiaries.

Recommendation

I advised Accounting Officers to comply with the budget controls. I also advised the
PS/ST to cause the affected Accounting Officers to explain the anomaly and take
appropriate action.

2.2.1.4 Misclassification of pension and gratuity expenditure

Section 7.10.3 of the Treasury Instructions 2017 stipulates that the chart of accounts
provides a basis for a uniform budget classification and execution. Therefore, it is
mandatory for all votes to use the coding structure to budget and execute the budget.
By implication, the entities must charge expenditure to the appropriate code during
budgeting and execution.

I noted that pension and gratuity funds for 29 MDAs and 126 LGs amounting to
UGX.66.902Bn were charged on incorrect account codes of salary, pension, gratuity and
salary/pension/gratuity arrears. Table below refers;

Table 29: Misclassified expenditure

Particulars Number Total (UGX)
MDAs 29 22,474,584,055
LGs 126 44,427,189,711
Total 155 66,901,773,766

Misclassification of funds distorts budget performance assessment and monitoring as

well as misstates the financial statements.

Recommendation

The Accounting Officers should ensure that wage, pension and gratuity expenditure is
charged on the appropriate codes or ensure appropriate authorisation.

2.2.1.5 Over payment of Gratuity

A re-computation of gratuity benefits for pensioners/beneficiaries in 19 MDAs and 115

LGs revealed an over payment of UGX.11.393Bn to 1,502 pensioners, as summarised in
table below;

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 Table 30: Overpayment of gratuity
Particulars Number Total number Total Total Total
of of pensioners recomputed gratuity gratuity
entities / beneficiaries gratuity paid overpaid
(UGX’Bn) (UGX’Bn) (UGX’Bn)
MDAs 19 142 11.623 14.963 3.340
LGs 115 1,360 46.44 54.54 8.05
Total 134 1,502 58.063 69.503 11.39

The overpayments were because of wrong computations, system errors and in some
instances intentional. A forensic investigation was carried out on some of the
overpayments in Ministry of Water and Environment and a separate report issued to the
Criminal Investigations Directorate of Uganda Police and the Inspector General of
Government.

The overpaid amount to existing pensioners is recoverable, while for non-existing

pensioners is a financial loss to Government.

Recommendations

I advised the Accounting Officers to;

 Recover the overpaid gratuity from existing pensioners by adjusting the monthly
pension.
 Liaise with anti corruption agencies and conduct investigations into
overpayments for non-existing pensioners and take appropriate action.

2.2.1.6 Gaps and inconsistencies in the Pension Act Cap 89

The pension Act, Cap 89 was a key document reviewed in undertaking the special audit
on pension and gratuity payroll. I noted areas that require Government attention to
enhance effectiveness of pension and gratuity management sustainably. These include;

a) Discrimination of Beneficiaries by Sex

Article 21 clause (1) of the Constitution of the Republic of Uganda provides that all
persons are equal before and under the law in all spheres of political, economic, social
and cultural life and in every other respect and shall enjoy equal protection of the law.
I reviewed the Pension Act Cap 89 provisions and observed areas that require review as
indicated below;

 Section 16 (b) of the Pension Act Cap 89 as amended provides that pension is
not assignable except by an order of any court for the payment of periodic sums
of money towards the maintenance of the wife, former wife, or minor child of the
officer to whom the pension, gratuity or other allowance has been granted. This
provision is segregative and does not cater for the husband. It creates a scenario
where the pension benefits for the husbands are assignable as per provisions but
excludes the pension earned by the wives hence creating conflict originating

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 from gender among family members. The provision is inconsistent with the
Constitution.

 Furthermore, Section 20 also makes mention of a widow as a beneficiary and a

widower is not included, while Sections 10 and 17 (first schedule) provide for
marriage gratuity which only includes women while men are excluded.

As indicated above, husbands are excluded from the beneficiaries rendering the
provisions discriminatory contrary to the Constitution.

b) Unharmonized Policies/ Laws on Beneficiaries to Estates

I noted that the Pension Act Cap 89 under Sections 18, 19 and 20 refers to spouses,
widows and children as the beneficiaries. However, Section 25 of the Succession Act Cap
268, provides that all property in an intestate estate devolves upon the personal
representative of the deceased upon trust for those persons entitled to the property
under this Act. In addition, Section 27 of the Succession Act further provides for the
mechanisms of distribution of the deceased’s property referring to spouse, lineal
dependents, dependent relatives and the customary heir.

The intended beneficiaries under the Pension Act and The Succession Act vary. This may
create conflict and lengthy adjudication for the intended beneficiaries to access the
benefits of the deceased. The intention of the Pension Act was to benefit the widow and
children whereas the Succession Act broadens it to cater for members mentioned in the
Will or as specified in the Act in the case of intestacy.

The Accounting Officer of the Ministry of Public Service acknowledged the issues and
explained that the Ministry is addressing discriminatory provisions through the Pensions
Act Amendments under the "Public Service Pension Fund Bill, 2024," to make it more
gender-responsive.

Recommendation

I advised the Ministry of Public Service to engage all the key stakeholders and expedite
the enactment of the Public Service Pension Fund Bill 2024.

2.2.1.7 Lack of Policy Guidelines on payment of full pension

Section 30(1) of the Pension Act Cap 89 provides that any officer to whom a pension is
granted under the Act may, at his or her option exercisable not later than the day
immediately preceding the date of his or her retirement from the public service, or at
such later date as the pensions authority may in any special case approve, be paid in
lieu of such pension, a pension at the rate of two-thirds or any greater fraction of such
pension together with a gratuity equal to fifteen times the amount of the reduction so
made in the pension.

In addition, Section (L-D) paragraph 3 of the Public Standing Orders 2021 provides that
a public officer has the option to receive all his or her pension as an annuity or to

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 commute a third (1/3) of his or her pension for a 15-year period and receive it as a lump
sum at retirement.

From the above provisions, the pension entitlements covered a period of 15 years. The
Government, in practice adopted a policy of paying benefits as 1/3 in commuted pension
gratuity and the remaining 2/3 as reduced monthly pension running for 15 years.
Whereas the assumption on limiting the age to the 75th anniversary was based on the
life expectancy by the time, it has been observed that several pensioners have clocked
and exceeded the 75th birthday and continued to be on the payroll. However, the
Pension Act and regulations do not provide clear guidance on whether the pensioner
continues receiving reduced pension amounts or the pensioner, upon clocking 75 years
is entitled to revert to full pension.

As a result, different Accounting Officers have applied the above provisions differently.
Some have maintained the reduced pension depriving some pensioners of their would-
be full pension annuity, while on the contrary, several other Accounting Officers have
provided full pension to those who have turned 75 years, leading to an increased
pension burden on Government.

The Attorney General in a letter dated 02nd May 2023 and referenced CA No.40/2015 to
the PS/ST advised that there was no provision in the Pensions Act which provided for full
pension and therefore the pensioners were not entitled to full pensions.

I noted that despite the Attorney General’s advice, there is still a practice of providing
full pension to pensioners who had attained more than 15 years after retirement.

This practice of paying unauthorized full pension increases the pension burden on the
Government.

Recommendation

I advised the Ministry of Public Service to liaise with the relevant authorities to provide
policy guidance to all Accounting Officers in this regard. I also advised that the practice
should be stopped in the meantime.

2.2.1.8 Guidance on the election of retirees to receive either CPG or Annuity

Section 30 (1) Pension Act Cap 89 states that any officer to whom a pension is granted
under the Act may, at his or her option exercisable not later than the day immediately
preceding the date of his or her retirement from the public service, or at such later date
as the pensions authority may in any special case approve, be paid in lieu of such
pension a pension at the rate of two-thirds or any greater fraction of such pension
together with a gratuity equal to fifteen times the amount of the reduction so made in
the pension.

In addition, Section (L-D) paragraph 3 of the Public Standing Orders 2021 provides that
a public officer has the option to receive all his or her pension as an annuity or to

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 commute a third (1/3) of his or her pension for a 15-year period and receive it as a lump
sum at retirement.

However, the PSF Form 18, used for mandatory retirement excludes an option for the
retiree /pensioner to elect or to choose a pension annuity or commuted pension gratuity
as required by law. Impliedly the Commuted Pension Gratuity was adopted as a policy
and became compulsory for all pensioners contrary to the provisions of the Pension Act.

Recommendation

I advised the Ministry of Public Service to review the current Form in tandem with the
provisions of the Pension Act or make amendments to the provisions of the Standing
Orders 2021.

2.2.1.9 Pension Indexation

The Permanent Secretary MoPS in a letter dated 07th May 2024 and Ref. COM
096/153/01 Vol.13 clarified that regulation 5 of the Pensions Regulations provides a
formula for calculating indexation from July 1988. This was provided to cater for
currency devaluation, which covers July 1988 to December 2001. However, the
regulation remained open since it did not specify the end date. This has been construed
by many beneficiaries to mean wage indexation as well as Pension indexation. In the
same letter, it indicates that the Attorney General guided the Pensions Authority to
repeal Regulation 5 of the Pension Regulations since it is inconsistent with Article 254(2)
of the Constitution. This repeal was subsequently approved by Cabinet.

The Circular Standing Instruction No.4 of 1994 issued by the Head of Civil Service led to
Pension indexation to wage from 1994 to 2018. This was not authorized as changes
were not part of the Pension Amendment Statute of 1994. This implies that some
Accounting Officers may have indexed Pensions for the period indicated which was not
covered by the scope.

Relatedly, it was further noted that the Circular Standing Instruction No.7 of 2018
introduced the pension Price indexation, and the Circular Letter dated August 2021
communicated pension adjustments for the FY 2019/2020 and FY 2020/2021.

The subsequent financial year was not indexed, hence the pension due was understated.

The Accounting Officer of the Ministry of Public Service explained that Pension and
Gratuity remained under-funded, and the Ministry has recommended prioritization of the
reform of the Public Service Pension Scheme to ensure it is fully funded and self-
financing, and does not depend on the Treasury.

Recommendations

I advised the Ministry of Public Service to;

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  Streamline pension indexation by expediting action to operationalize the Cabinet
decision to fast-track repeal of Regulation 5.
 Annually compute the amount due resulting from Pension indexation and engage
the Ministry of Finance to provide a budget to cater for that increase.

2.2.1.10 Management of UTL case-implications

During the verification of the terminal benefits/ pensions of former employees of Uganda
Posts and Telecommunications Corporation (UPTC), which were done in accordance with
the orders of the Court of Appeal in respect to Civil Appeal No. 230 of 2013 and No. 10
of 2014 and Civil Suit No. 135 of 2003, I observed that there were 9 employees who had
crossed from Uganda Posts and Telecommunications Corporation to Uganda Telecom
Limited (UTL) and served 3 years before their retirement. In that judgement, it was
decided that the Public Enterprise Reform and Divestiture Act Cap 78 Section 31 protects
the employee contracts and as such;

 There was a continuation of service when the employees transferred their

services from UPTC to Uganda Telecom Ltd.
 The figure used in determining the last pay was the last pay in UTL which was
not pensionable emoluments.

It is worth noting that this ruling was not appealed. This implies all employees who
transfer services from the Pensionable Service to other Government service without a
break in service, may use their last pay in the new employment in the computation of
the gratuity and pension.

Recommendation

The impact of this ruling requires scrutiny and policy guidance by the Attorney General,
especially for those employees who retired under the Public Enterprise Reform and
Divestiture Act Cap 78 to ensure sustainability.

2.2.1.11 Long outstanding unpaid pensioners

During the Audit, I noted over 5,649 pensioners who had not accessed the payroll of
which some had taken over 20 years as summarized in the table below;

Table 31: Pensioners who had not yet accessed the payroll
Period 1-5 Years 6-10 years 11-15 years 15-20 years Above 20 years Total
No. of
2,878 972 700 549 550 5,649
pensioners

I also observed that some people retire and join the pension payroll immediately as
required.

This may be attributed to the lack of a proper database of retired employees by the
respective organizations, insufficient funding and prioritization of pension payments to
those who can follow up.

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 As a result, some pensioners have remained unpaid despite having served a qualifying
service period or met the conditions under the Pensions Act. This has caused anguish
and suffering for pensioners, and some have died without enjoying their pension
benefits.

Recommendation

I advised the Accounting Officers to institute measures to ensure that all pensioners are
promptly paid as required.

2.2.1.12 Un-updated records for former employees

During the audit, I noted that there was poor record-keeping of pensioners' files in 236
LGs and MDAs. Some files lacked key information relating to appointments, confirmation
and promotions among others. Where the pensioner had a break in service, it was not
properly documented, and the transfer of service file was incomplete.

In addition, the files had gathered dust and may not be kept for a long time as required
by the Ministry of Public Service which requires such files to be kept permanently.

This was partly attributed to a lack of appropriate Records Officers, lack of storage space
and generally not prioritizing record keeping. This may have resulted in some pensioners
not timely accessing the pension payroll which undermines the rights of the pensioners.

Recommendation

I advised the Ministry of Public Service to institute measures to ensure that all records
are uploaded in the records management systems and the systems integrated with HCM
and other critical systems to ensure completeness and regular update of pension data.

2.2.1.13 Sustainability considerations in pension management

a) Sustainability of Early Retirement

Section 10(1) (e) of the Pension Act Cap 89 provides that on medical evidence, to the
satisfaction of the pension’s authority, that he or she is incapable because of any
infirmity of mind or body of discharging the duties of his or her office and that the
infirmity is likely to be permanent. Section 10(2) of the same Act states that a pension,
gratuity or other allowance shall be paid to an officer who retires on the attainment of
the age of forty-five years if he or she has served for a continuous period of ten years or
more. Section 28 of the Pension Act Cap 89 provides that if an officer holding a
pensionable office retires from public service in consequence of the abolition of his or
her office or for the purpose of facilitating improvement in the organization or the
department to which he or she belongs is entitled to a pension from the date of abolition
of office.
As indicated in the above provisions, a person who retires at 45 years and below
becomes pensionable till death. This implies that a person who retires and subsequently
engages in gainful employment continues to access pension till death.

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Relatedly, with improved living conditions, life expectancy has generally improved. Out
of the provisional 64,275 validated pensioners, there are 10,641 (16.6%) pensioners
who are above 75 years of which 30 are above 100 years. Therefore, a pensioner who
retired at 45 years and has lived up to 75 years would have received pension payments
for 30 years. Additionally, there are 7,466 (11.6%) pensioners who retired early as per
provisional validation results.

This may become unsustainable as the conditions of living and life expectancy improve.
This may accumulate pressure on Government resources and excessively increase the
pension bill and in the long run, affect the implementation of other Government
activities since the funds will be committed to paying pension.

The Accounting Officer explained that Early retirement from the Public Service is
permitted by law governing employment in the Public Service and it is employees’
constitutional rights and freedoms to seek employment or exit from service. I concurred
with the assertion but noted that if there are no reforms in this area, pension
management will remain unsustainable.

Recommendation

I advised the MoPS that policies on early retirement should be reviewed and new
reforms introduced to ensure sustainability.

b) Cost implications of enhanced pay for science employees

Following the Government’s decision to increase salaries for scientists, their salaries
were subsequently increased accordingly. This move was aimed at attracting and
retaining critical talents, as well as the importance of science and innovation, in driving
the country’s development.

However, I did not obtain evidence that there was a comprehensive analysis of the cost
implication of the increased wages and the resultant exponential increment in the
pension liability.

In addition, it has been observed that some science employees who had served and
qualified for early retirement had since retired, as a result of the increase. In essence,
the increase appears to have become an incentive for early retirement. I further
analysed two (2) salary scales of an Officer and a Commissioner for Science and Arts
who had served for 30 years (360 months) to determine the effect of the increase in the
salaries on pension and gratuity and observed the following;

i) Scenario One

I compared the position of Education Officer (Teacher) for science (U4-PTEACHSC) and
non-science (U4-PTEACHLWR) payments to determine the effect on their retirement
benefits. I noted that an officer with science qualifications earns UGX.4,000,000 whereas
an arts Teacher earns UGX.1,078,162. The following was observed;

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 a) The science teacher will get UGX.172,800,000, while the Arts teacher will get
UGX.46,576,598 as gratuity payments at the end of service.
b) The science teacher will get UGX.1,920,000, while the Arts teacher will get
UGX.517,518 as a monthly Reduced pension.
c) The reduced monthly pension of a science teacher of UGX.1,920,000 is more
than twice the net pay of a serving Arts teacher of the same scale.

ii) Scenario Two

Relatedly, I compared the Position of a Commissioner for Science (U1SE-1 SC) and non-
science (U1SE-1), payments to determine the effect on their retirement benefits. I noted
that an officer with science qualifications earns UGX.10,622,398, whereas one with arts
qualifications earns UGX.1,859,451. I noted the following;

a) The science officer will get UGX.462,711,657, while the Arts officer will get
UGX.80,774,551 as gratuity payments at the end of service.
b) The science officer will get UGX.5,141,241, while the Arts officer will get
UGX.897,495 as a monthly Reduced pension.
c) The Reduced monthly pension of a science officer of UGX.5,141,241 is more than
thrice the net pay of a serving Arts officer of the same scale.

If the discrepancies are not addressed and managed, the increment for science officers
may be an incentive for early retirement, create disharmony within public service and
the Pension liability may not be sustainable.

Recommendation

There is need for Government to conduct a study to review the salary schemes
alongside the terms and conditions of service for in-service officers and inform the
pension reforms to ensure sustainability.

2.2.1.14 Delays in Public Service Pension Reforms

The Public Service has been in the process of introducing reforms in the pension sector.
The Public Service Pensions Fund Bill, 2023 was introduced on 14th March 2023 and
aimed at implementing a mandatory contribution system for public servants' pensions.
However, the bill underwent significant changes during the committee review,
prompting the decision to withdraw it.

Under the proposed legislation, every public servant would be required to contribute five
per cent of their gross salary to the pension fund each month, while the Government's
contribution would be reduced to 10 per cent of the employee's gross salary. This
reform will ensure sustainability of Pension management in the public service and
provide funds for investment.

However, the process has been delayed. The delays in the process retards efforts aimed
at providing a solution to the escalating Government pension liability.

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 Recommendation

I advised the Ministry of Public Service to continue to engage all stakeholders to fast-
track the reforms.

2.2.1.15 Implementation of the Administration of the Judiciary Act Cap 4

Following the enactment of the Administration of the Judiciary Act, Cap 4 and
subsequent implementation of the provisions therein, several reforms have been
introduced including reforms relating to staff rules and pay structure including
retirement benefits.

The new reforms;

a) Redefined a Judicial Officer to include all personnel involved in the dispensation

of justice. Previously, it included Judges of the High Court and above;
b) The pensionable emoluments of the Judicial staff were reviewed and enhanced;
and
c) Redefined the CPG and Pension computation in accordance with the Judicial Act
Cap 4.

However, the impact of the enhanced pensionable emoluments on the computation of

gratuity and pension appears not to have been assessed. The impact includes;

i) The new pension re-computation does not consider the length of service. This
implies that a Judicial Officer who has served for 40 years and one who has
served for 10 years will earn the same monthly pension contrary to the principles
of equity.
ii) Review of the already retired Judicial Officers' pension and gratuity based on the
enhanced emoluments.
iii) The enhanced pensionable emoluments exponentially increased the pension
liability.
iv) Expansion of the Court system to improve access to the Court services to deliver
Justice implies recruiting more staff and increasing the number of Judicial Staff.

The re-definition of Judicial Officers, enhanced emoluments, and the choice of

retirement scheme to Pension scheme increases the Pension liability exponentially.

I analysed the Judicial salary pay structure before and after the salary enhancement,
assuming a period of service of 36 years and observed that the increment of the pension
ranges from 39% - 234%.

The Accounting Officer of the Ministry of Public Service concurred with the observation
and explained that the revision has created a precedence which other services such as
Uganda Peoples Defence Forces is advocating for, and that there is need for urgent
intervention by Cabinet and Parliament to address the identified issues.

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 Recommendation

I advised the MoPS to undertake a comprehensive study on the sustainability of the

reforms, specifically on the retirement benefits for the Judicial Officers and take
appropriate action.

2.2.1.16 Analysis of increase of Pension up to year 2034

In my last year’s report on the validation of public service employees, I established that
there were 356,602 employees who were verified on the active payroll. An analysis of
this payroll was conducted to establish the number of staff who will be retiring in the
next 10 years and computed the expected cost of pension and gratuity. The analysis
was to project the additional pension and gratuity costs that will be required.

From the analysis, the number of people retiring will increase by an average of 12%
annually, for the next 10 years. It is projected that by the end of FY 2033/34, the
pension bill will increase by UGX.4.6Tn, from the FY 2023/24 budgeted annual pension
bill of UGX.1.2Tn. The projection excludes Uganda Peoples Defence Forces (UPDF). The
trend may not be sustainable if pension reforms are not fast-tracked.

The analysis revealed that 77,116 employees were slated for retirement within the next
10 years as shown in the table below;

Table 32: Employees expected to retire in the next 10 years

Sn Year of Estimated number Estimated total annual Projected cumulative
Retirement of retirees per increase of the pension total pension liability
year bill (UGX Bn) (UGX Bn)
1 2025 5,310 296.54 296.54
2 2026 5,256 289.56 586.09
3 2027 5,588 321.01 907.10
4 2028 8,708 446.55 1,353.65
5 2029 8,425 455.45 1,809.10
6 2030 8,850 554.65 2,363.76
7 2031 5,668 381.09 2,744.85
8 2032 10,287 623.17 3,368.02
9 2033 8,066 516.19 3,884.20
10 2034 10,958 674.49 4,558.69
Total 77,116 4,558.7
OAG analysis

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 Figure 6: Projected pension increase in the next 10 years

If the exponential increase in the pension bill is not managed, it will become
unsustainable and create a strain on national resources.

The Accounting Officer concurred with the observation and noted the findings are
consistent with the actuarial valuation of the Public Service Pension Scheme by Zamara
Actuaries, Administrators & Consultants Ltd in 2022.

Recommendation

I advised the Ministry of Public Service to engage all relevant stakeholders to fast-track
the pension reforms to ensure sustainability.

2.2.1.17 The Information System (IS) audit of the Human Capital Management
System (HCMS) Pension Management

Reference is made to the earlier HCMs Information Systems audit which was conducted
and a report issued in 2023. A number of issues were raised relating to pension payroll
management. During the current audit, the following specific issues in regard to
Pension, have been established to still be outstanding;

a) Weaknesses in the implementation of Wage Budgetary Controls

I identified weaknesses in the wage budgetary controls within the HCMS, particularly in
the Establishment Management Control module. Despite the system's capability to
manage wage and structure data, budget estimates for wages, pensions, and gratuities
were prepared outside the system.

This was due to delays in integrating HCMS with the Programme Budgeting System
(PBS), the continued operation of parallel systems (IPPS and HCMS), and direct wage
payments through IFMS outside payroll management.

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Recommendations

I advised the Ministry of Public Service to;

 Enforce strict timelines for migrating all entities to a single payroll management
system.
 Expedite the full implementation of HCMS.
 Enhance system interfaces for seamless data flow.
 Strengthen monitoring and enforcement of compliance with HCMS controls.

b) Incomplete Integration of HCMS and IFMS

The audit revealed that the integration between HCMS and IFMS is incomplete. Although
HCMS sends invoice files to IFMS, the processed payment information is not relayed
back to HCMS, resulting in one-way data sharing.

This limitation hinders the generation of payroll reconciliation reports.

Management attributed the delay to the recent upgrade of IFMS and noted that full
integration is still pending. The Accounting Officer indicated that the full integration and
functionality enhancement is anticipated to be completed by 31st December 2024.

Recommendation

I advised the Ministry of Public Service to continue with the initiative and ensure
completion of a two-way integration between HCMS and IFMS to facilitate accurate
payroll reconciliation.

c) Failure to update records of deceased civil servants on HCMS

I established that the integration between NIRA and HCMS, as outlined in a 2018 MOU,
had been implemented. However, records of deceased civil servants are not
automatically updated leading to inaccuracies in employee data.

The failure to promptly update records of deceased civil servants may lead to delayed
deletion and continued salary/pension payments. This could result in financial loss to
Government.

Recommendation

I advised the Ministry of Public Service to engage NIRA and other stakeholders to
enhance the integration between NIRA systems and HCMS, particularly for updating
records of deceased Government employees.

d) Delayed Deactivation of IPPS user accounts of retired officers

Section 4.1.5 of the Ministry of Public Service Information Security Guideline of February
2023 in summary states that IPPS information systems must possess tools to store and

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 monitor security breaches, failures, and inappropriate system usage. They should
maintain audit logs containing specific data like user IDs, login/logout times, terminal
details, and successful/unsuccessful system and data access attempts.

Contrary to the above provision, I reviewed transaction logs on the IPPS and noted
cases of user accounts of retired officers that were not deactivated immediately at the
point of retirement. Further, some of these accounts of retired officers were used to
make changes/approvals on the payroll after the date of retirement of the users.

Failure to deactivate accounts of users on the system can lead to fraudulent transactions
approved through accounts of the retired officers.

Recommendation

I advised the Ministry of Public Service to ensure prompt deactivation of accounts of

users on the IPPS/HCM upon retirement.

2.2.2 Performance of the Approved Budget

Introduction

Parliament appropriated an initial revenue and expenditure budget of UGX.52.737Tn for

the financial year 2023/2024. The expenditure budget was to be spent as follows;
UGX.18.951Tn (36%) on Treasury operations, UGX.14.356Tn (27%) on capital
development, UGX.12.138Tn (23%) on non-wage recurrent expenditure, and
UGX.7.289Tn (14%) on wage, as shown in the fig below;

Figure 7: Allocation of the initial budget by expenditure category

Source: OAG analysis of the FY 2023/2024 budget

The expenditure budget was revised through a supplementary appropriation of

UGX.8.932Tn to UGX.61.669Tn. Out of UGX.61.669Tn, a sum of UGX.55.179Tn2 was
allocated to Central Government Votes and the balance of UGX.6.490Tn3 was allocated

2
This figure include financing to MDAs and project financing
3
This figure includes financing to LGs and AIA for LGs

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 to the Local Governments. However, the revenue budget was only revised by
UGX.3.510Tn to UGX.56.247Tn.

The following observations were made from my review of the performance of the budget.

2.2.2.1 Revenues, expenditure and implementation of activities

i) Government had a total revised revenue budget of UGX.56.247Tn however

UGX.47.110Tn (84%) was realized resulting in a revenue shortfall of
UGX.9.137Tn. This affected the ability of the Government to finance the
implementation of planned activities and negatively affects the credibility of the
Government budget.

ii) The government had a total revised expenditure budget of UGX.61.669Tn out of
which UGX.50.172Tn was warranted resulting in an unfunded budget of
UGX.11.498Tn representing 18.64% underperformance.

iii) Out of the total availed warrants of UGX.50.172Tn, Government only spent
UGX.48.68Tn leaving a balance of UGX.1.492Tn as unutilized warrants
representing 3% underperformance. This was attributed to: insufficient funds on
the Consolidated Fund account, cancelled invoices, unimplemented activities by
MDAs and LGs as well as late releases among others.

The failure to fully fund the revised budget and underutilization of warrants affected
implementation of planned activities.

Recommendation

I advised MoFPED to put in place strategies to ensure that the budget is funded as
appropriated and all planned activities implemented.

2.2.2.2 Planned activities and service delivery by MDAs and LGs

i) I sampled 1,028 outputs with a total expenditure of UGX.6.832Tn from a sample

98 MDAs to assess the extent of implementation of planned activities. Out of the
1,028 outputs, 485 (47%) outputs worth UGX.2.658Tn were fully implemented,
520 outputs (51%) worth UGX.4.076Tn were partially implemented, while 23
(2%) outputs worth UGX.97Bn were not implemented at all.

ii) Similarly, I assessed the extent of implementation of a sample of 1,433 outputs

worth UGX.1.602Tn in 133 LGs and noted that 991 (69%) outputs worth
UGX.729.30Bn were fully implemented, 400 (28%) outputs worth UGX.873.18Bn
were partially implemented while 42 (3%) outputs were not implemented.

iii) I analysed a sample of 183 activities worth UGX.1.337Tn in 31 MDAs to assess if

there was adequate service delivery to the citizens from the activities that were
implemented and noted that; 138 activities worth UGX.1.290Tn had delayed and
were therefore behind schedule, 17 activities worth UGX.25.205Bn had quality

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 deficiencies while 25 activities worth UGX.21.439Bn were completed but were
not functional.

iv) Similarly, 45 projects worth UGX.52.39Bn in 32 LGs were not completed within
the expected contract duration and were behind schedule by between two (2)
and 32 months which resulted in delayed service delivery. Construction projects
worth in four (4) LGs worth UGX.3.96Bn were completed but not in use.

v) Twenty (20) LGs had a total supplementary funding of UGX.164.5Bn however,

out of this, only UGX.119.17Bn was approved by the respective
District/City/Municipal Councils as required by the regulations, implying that the
balance of UGX.45.33Bn was not approved.

vi) Thirty-eight (38) LGs received total supplementary funding of UGX.233.94Bn out
of which UGX.131.08Bn (56%) was not requested for by the respective
Accounting Officers.

vii) Twenty-six (26) LGs did not utilize all the supplementary funds received. Out of
the supplementary funds of UGX.243.94Bn received, only UGX.191.10Bn (78%)
was utilized leaving UGX.52.83Bn un-utilized as at the end of the financial year

The failure to fully implement planned activities was due to repurposing of funds,
delayed procurements, weaknesses in contract management, delayed funding, among
others.

This affected the achievement of government budget priorities and service delivery to
the citizens. In addition, anomalies in the management of the supplementary budgets
distorts budget execution and affects credibility of the budget.

Recommendation

I advised the Accounting Officers to enhance contract supervision and ensure that
procurements are undertaken in a timely manner. Further the Accounting Officers were
advised to adhere to the regulations regarding management of supplementary funds.

2.2.2.3 Performance of sample projects

i) I compared the total cumulative disbursements for a sample of 46 projects

against the planned disbursements and noted that out of the expected
disbursement of UGX.11.837Tn, a total of UGX.7.285Tn (62%) had been
disbursed resulting in under-disbursement of UGX.4.551Tn.

ii) Out of the 46 sampled projects, 31 projects expected to receive GoU counterpart
funding amounting to UGX.1.22Tn to support project implementation. However,
only UGX.947Bn (78%) had been disbursed resulting in undisbursed counterpart
funding of UGX.282.34Bn representing 22% under-performance.

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 iii) I assessed the extent of implementation of a sample of 428 project activities
worth UGX.6.49Tn and observed that 137 (32%) activities worth UGX.2.411Tn
were fully implemented, 109 (25%) activities worth UGX.3.56Tn were partially
implemented while 182 (43%) activities worth UGX.522Bn were not implemented
at all.

iv) I analyzed a sample of 135 project activities worth UGX.1.592Tn to assess if the
activities were implemented in a timely manner, were of acceptable quality and if
the completed facilities/structures were functional. I noted that 120
activities/facilities worth UGX.1.544Tn had delayed and were behind schedule, 11
facilities worth UGX.44.753Bn were completed but were not functional, while
four (04) facilities worth UGX.3.603Bn had quality deficiencies which affected
their utilization and service delivery.

The above shortcomings were caused by, inadequate project preparedness, delayed
compensation of PAPs, repurposing of funds, weaknesses in contract supervision,
delayed commencement of projects, inadequate capacity of contractors, delayed
handover of sites, delayed recruitment of the required caliber of staff among others.

Failure to deliver expected services to beneficiaries negates the purpose for which
project funds were borrowed and negatively affects achievement of project objectives.

Recommendation

I advised MoFPED to ensure that funding is only provided to projects that are ready,
enhance contract supervision and monitoring, ensure timely compensation of PAPs and
implementation of other project activities.

2.2.2.4 Programmatic approach to planning and budgeting

The government took a decision to undertake planning and budgeting using the
programmatic approach. Over the last four (4) years, some milestones were achieved
towards the full transition from the sector approach to programmes. I, however,
observed that the following challenges still exist which will continue to affect the full
adoption of the approach if not addressed.

i) Failure to implement proposed programme specific reforms. At the time of this

report, NPA had proposed 24 programme specific reforms out of which only one
(1) had been fully implemented, three (3) were partially implemented while 20
reforms were not implemented at all by the programme heads.

ii) The Public Finance Management Act, Cap 171, is yet to be revised to align it to
the programmatic approach. This means that entity budget framework papers
(BFPs) are still presented to and reviewed by sectoral committees of Parliament.
Further, programme secretariats are currently not included in the approval of the
entity BFPs.

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 iii) Entities continue to submit requests for supplementary funding to the Minister of
Finance without going through the Programme secretariats. This contradicts the
principle of having programme resources allocated by the programme
secretariats and distorts implementation of the programme budgets.

iv) Planners in a number of entities were yet to fully conceptualize the programmatic
approach to planning and budgeting. This continues to affect the proper
alignment of entity work plans and budgets to the programme PIAPs.

Recommendation

I advised MoFPED to address the above short comings to ensure full adoption of the
programmatic approach to planning and budgeting.

I have issued a separate detailed audit report on Budget Performance.

2.2.3 MANAGEMENT OF THE PARISH DEVELOPMENT MODEL

Introduction

The Parish Development Model (PDM) is a strategy for service delivery by the
Government of Uganda to improve the incomes and welfare of all Ugandans at the
household level by transforming 39% of households from a subsistence economy to a
money economy as approved by Parliament. According to the PDM Policy Framework
2022, the outcomes of the strategy will be measured in the FY 2024/2025 at the closure
of the NDP III.

The strategy is implemented under seven (7) pillars, and the primary pillar is the
“Agriculture Value Chain Development (Production, Storage, Processing, and
Marketing)”. The other six pillars which support the primary pillar include: Infrastructure
and Economic Services; Financial Inclusion (FI); Social Services; Community Mobilization
and Mind-set Change; Parish Development Management Information System (PDMIS);
and Governance and Administration.

In the FY 2023/2024, Parliament appropriated UGX.1,097.633Bn for the PDM

Programme, of which UGX.1,059.4Bn was for the Parish Revolving Fund (PRF) to finance
10,594 PDM SACCOs in 176 LGs and Kampala Capital City Authority (KCCA). Each
SACCO is supposed to receive UGX.100Mn in a financial year to develop and implement
viable community led income generating enterprises. In addition, a sum of
UGX.38.233Bn was appropriated to specific entities to support implementation of the
programme as indicated in the table below;

Table 33: Total Budgets, Releases and Expenditure for PDM for FY 2023/24
Vote Vote Name Activity Budget Release (UGX Expenditure
(UGX ’Bn) ’Bn) (UGX ’Bn)
008 LGs (PRF –  Revolving Fund 1,059.400 1,059.400 1,058.750
MoFPED)
Sub-total 1,059.400 1,059.400 1,058.750
008 MoFPED  PDM loan Processing 17.997 17.997 17.618

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 Vote Vote Name Activity Budget Release (UGX Expenditure
(UGX ’Bn) ’Bn) (UGX ’Bn)
and Parish Chiefs
bicycle and rent of
offices.
011 MoLG  PDM Secretariat and 12.317 12.317 11.986
support to
coordination
020 MoICT&NG  IT Support to PDM 4.481 4.392 4.392
(Equipment and
operations)
143 UBOS  PDM Services (Data 1.900 1.900 1.900
collection and
validation)
122 KCCA  Administration 1.538 1.538 1.538
Sub-total 38.233 38.144 37.434
Grand Total 1,097.633 1,097.544 1,096.184

With the exception of Pillar 3, which is funded separately under MoFPED for direct
disbursement of Parish Revolving Fund (PRF) to PDM SACCOs, the other pillars are
funded under existing government institutional arrangements where MDAs and LGs must
align their plans, interventions and budgets for implementation of the PDM.

In the FYs 2021/2022 and 2022/23, I carried out an assessment on government’s

preparedness and implementation of PDM Strategy, respectively.

In the period under review, I designed audit procedures to;

 Establish whether MDA&LGs’ planning and budgeting processes are aligned to

the implementation of the PDM strategy,
 Assess whether the Pillar 3 - Financial Inclusion Pillar has been implemented in
accordance with the PDM policy and guidelines,
 Assess whether all the 7 modules of the PDMIS have been implemented in
accordance with the requirements of the PDM policy and guidelines,
 Assess the monitoring and evaluation framework of the PDM, and
 Follow-up on Government’s institutional arrangements necessary for
implementation of the PDM and their functionality.

The following positive observations were noted;

i) All the approved budget of UGX.1,059.40Bn for PRF for disbursement to the
planned 10,594 PDM SACCOs was realized and UGX.1,058.37Bn (99.9%) was
transferred to PDM SACCOs.
ii) Enterprise specific trainings by local Subject Matter Specialists/experts were
carried out for most of the SACCOs.

I noted the following key observations as areas of improvement;

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2.2.3.1 Planning and Budgeting

Paragraph 6.4 of Parish Development Model (PDM) policy framework, March 2022 on the
financing strategy requires all Ministries, Departments, Agencies and Local Governments
(MDALGs), to align their plans, interventions and budgets to the implementation of the
PDM to be funded under the existing arrangements.

I reviewed the approved work plans and budgets of 176 LGs, KCCA and 25 participating
MDAs and noted the following;

a) Alignment of MDA Work Plans and Budgets to the PDM

A comparison of the PDM Working Group Activity Implementation Action Plans with the
25 MDAs’ approved budgets and work plans revealed that;

 Six (6) out of the seven (7) Pillar Working Groups did not have approved pillar
implementation action plans. Only the Infrastructure and economic services Pillar
had an action plan.
 Twenty-five (25) participating MDAs did not align their work plans to the pillar
action plans. This made it difficult for the 25 participating MDAs to align their
budgets and work plans to the PDM. The summary in the table below refers;

Table 34: Alignment of work plans to the Pillar action plans

SN Pillar Lead entity Participating Sectors
responsible
1. Agriculture value chain MAAIF with MoTIC, MoTWA, MoFA, MoLHUD, NPA,
development MoTIC as co-chair OPM, MoLG, MoWE, and MEMD
2. Financial inclusion MoFPED with MAAIF, OPM, NPA, OWC, MoLG, ICT,
MoTIC as co-chair Internal Affairs and Min of Presidency
3. Social services MOES (lead), MoWE, MoLHUD, MoPS, OPM, Gender,
MOH (co-chair) MoLG, OWC, Internal Affairs and Min of
Presidency
4. Community MGLSD ICT, MoLG, OWC, OPM, MoFPED, MoIA
mobilization and mind- and OP
set change
5. Parish-based ICT UBoS, MoDA, Security, OPM, MAAIF, NPA,
Management OWC, MoLG, Internal Affairs and Min of
Information System Presidency
(PBIS)
6. Governance and MOLG MoFPED, MoKCCMA, Local Gov
administration MoPS – co-chair Association, IGG, OP.
Source: OAG review of PDM Operational Guidelines

 Pillar 2 Working Group implementation action plan existed but not all the targets
were quantified and costed. This made it difficult for the ten (10) participating
MDAs to align their budgets and work plans to the Working Group action plan for
effective implementation of the PDM.

Failure to align the MDA budgets and work plans to the PDM hinders the achievement of
pillar objectives.

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The Accounting Officers promised to align the MDA budgets and work plans with the
PDM action plans after undertaking training and capacity building of their staff.

Recommendations

 The Accounting Officers of the Pillar Lead Entity Working Groups should ensure
that the pillar working group implementation action plans are prepared and the
MDA work plans and budgets are aligned to these action plans.
 The PDM Secretariat should sensitize MDAs and LGs on the bottom-up approach
of identification of PDM priorities to ensure alignment to the PDM.

b) Alignments of the LG Work Plans and Budgets to the PDM

Paragraph 1.7 of the Users Handbook for the Parish Revolving Fund (PRF) under PDM
Pillar 3 - Financial Inclusion (Version: October 2022) requires all LGs through their
respective Core Implementation Teams, to align their plans, interventions and budgets
to the implementation of the PDM. In addition, Paragraph 3.4 of the Implementation
Guidelines for PDM, 2021 requires PDCs to identify and prioritize social services needed
at parish level and share them for approval and consolidation at the Sub County and
district levels.

I analyzed the process of identification of parish/wards priorities in 115 LGs out of 139
sampled LGs and noted that out of 5,865 parishes/wards, 5,099 did not provide
evidence for the identification of priorities and only 169 provided evidence using the
format prescribed in Annex 1 of the Guidelines for onward submission to the
divisions/Sub-counties and Municipal Council/District.

Failure to identify priorities from the parishes/wards hinders LGs from aligning their
budgets and work plans to PDM activities thus affecting the achievement of the PDM
objective of improving the incomes and welfare of all Ugandans at the household level.

The Accounting Officers attributed this to;

• Inadequate guidance to Local Governments on the prioritization of PDM activities

in the budgets and work plans.
• Use of a different mode of identification of priorities through consultative budget
conference instead of the stipulated procedure in the PDM guidelines.
• Non-functional PDCs to guide the identification of PDM priorities.

Recommendations

 The PDM Secretariat in liaison with MoFPED and NPA should issue harmonized
and comprehensive guidelines on the identification and alignment of parish/ward
priorities in the LGs budgets and work plans.
 The Accounting Officers of LGs should;
 Ensure that PDCs and LLGs are trained in the identification of parish/ward
priorities, which should be aligned to the LG’s budgets and workplans.
 Ensure that all PDCs are fully constituted and functional.

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2.2.3.2 Funding and Utilization of PDM Funds
a) Funding
i) Administrative and PRF funds

A review of the PDM funds release revealed the following;

 All the approved budget of UGX.1,059.40Bn for PRF for disbursement to the
planned 10,594 PDM SACCOs was realized.
 Out of an approved budget of UGX.38.233Bn (excluding PRF) for PDM
administrative and support activities in five (5) MDAs and KCCA that received
direct funding, UGX.38.144Bn (99.8%) was released, resulting in a deficit of
UGX.0.089Bn (0.2%). As a result, consultancy services under Parish
Development Model equipment was not fully implemented.

The Accounting Officer of MoICT&NG explained this was out of the entity’s control.

Recommendation

MoFPED should prioritize the funding of PDM activities.

ii) Late Release of PRF Funds to PDM SACCOs

Paragraph 6 of the circular on the implementation of financial inclusion activities under

the parish development model during the stabilization phase ref: EDP 86/103/02 vol.3
dated 8th January 2024 states that capitalization of PDM SACCOs will commence in
quarter 3 with the transfer of UGX.50 million per SACCO and the balance of UGX.50
million transferred in Quarter 4.

I noted that;

 No funds were disbursed to any of the 10,594 SACCOs in quarter 3 yet

UGX.529.250Bn was expected.
 Only 10,582 out of the 10,594 SACCOs received UGX.529.100Bn in quarter 4
instead of UGX.529.250Bn of the expected disbursements in quarter 3.
 10,586 SACCOs received the second disbursement of PRF in the first week of
July of FY 2024/25 instead of quarter 4 of FY 2023/2024. This was late given
that it was outside the financial year. Of these, seven (07) SACCOs did not
receive any PRF in FY 2023/24 but received all the PRF of UGX.0.700Bn in
quarter 1 of the subsequent FY 2024/2025. This showed inconsistencies in the
release of funds contrary to the guidance.

Consequently, there was delayed disbursement to SACCO beneficiaries which affected

the intended timely transformation of the subsistence households into the money
economy.

The Accounting Officers of LGs explained this was out of their control.
MoFPED attributed the late release to cash flow challenges towards the end of the FY
and the failure of the PDM SACCOs to absorb earlier releases held in bank accounts. In

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addition, MoFPED explained that the PDM Policy Committee had resolved that PDM
funds be transferred from MoFPED to the SACCOs in January 2025 and June 2025, to
align with the planting seasons.

Recommendations

 The Accounting Officers of LGs should ensure that PDM SACCOs disburse PRF to
households timely.
 MoFPED should ensure timely release in the subsequent periods.

iii) Under release of PRF to PDM SACCOs

Paragraph 6 of the circular on the implementation of financial inclusion activities under

the parish development model during the stabilization phase ref: EDP 86/103/02 vol.3
dated 8th January 2024 states that capitalization of PDM SACCOs will commence in
quarter 3 with the transfer of UGX.50 million per SACCO and the balance of UGX.50
million transferred in Quarter 4.

I noted that 3 PDM SACCOs received UGX.0.150Bn out of the expected amount of
UGX.0.300Bn leading to under-release of UGX.0.150Bn, as summarized in the table
below;

Table 35: Under release of PDM SACCO Funds

SN Supplier Vote PDM SACCO Name PRF Amount Amount of Variance
. No Name Expected in PRF
FY Received
Amounts in UGX
1 1037736 Isingiro Katanoga - 100,000,000 50,000,000 50,000,000
DLG Nyamuyanja PDM
SACCO
2 1041190 Zombo Zulume-Athuma PDM 100,000,000 50,000,000 50,000,000
DLG SACCO LTD
3 1041442 Zombo Zingili Ward-Paidha 100,000,000 50,000,000 50,000,000
DLG PDM SACCO LTD
Total 300,000,000 150,000,000 150,000,000

Consequently, there were inadequate funds to disbursement to SACCO beneficiaries

which undermines the objective of the PDM.

MoFPED attributed this to errors during the change of the affected SACCOs’ receiving
accounts from the bank to the Wendi wallet, which caused the funds to bounce. In
addition, MoFPED explained that the affected PDM SACCOs would be capitalized in the
subsequent period.

Recommendations

 Accounting Officers of LGs should ensure that the right information about SACCO
Bank account details is submitted to the MoFPED to ensure timely release of
funds.
 MoFPED should ensure that the arrears are paid in the subsequent release to the
SACCOs.

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b) Utilization of Parish Development Model Funds
i) Administrative Funds - Other MDAs

 Out of the total receipts of UGX.38.144Bn for PDM administrative and support
activities in five (05) MDAs and KCCA that received direct funding, UGX.37.434Bn
(98%) was spent, resulting to un-utilized funds of UGX.0.71Bn (2%).

Table 36: Administrative Funds to other MDAs

Vote Vote Name Activity Release Expenditure
(UGX’Bn) (UGX’Bn)
008 MoFPED PDM loan Processing and Parish Chiefs 17.997 17.618
bicycle and rent of offices.
011 MoLG PDM Secretariat and support to 12.317 11.986
coordination
020 MoICT&NG IT Support to PDM (Equipment and 4.392 4.392
operations)
143 UBoS PDM Services (Data collection and 1.900 1.900
validation)
122 KCCA Administration 1.538 1.538
Grand Total 38.144 37.434

The funds that were not absorbed were meant for wages for the PDM Secretariat and
payment of parish chief allowances which were partially implemented.

 It was noted that UGX.1.9Bn budgeted under UBoS and meant for data collection
and training of data collectors was reallocated to the National Population and
Housing Census Data collection and analysis. However, the results from the 2024
census had not been integrated into the PDMIS. MoFPED explained that a
steering committee had been established to review and guide on the applicability
of the 2024 Census results in the PDMIS.
 I further noted that out of UGX.11.081Bn spent under MoLG, UGX.5.75Bn was
re-purposed and spent on other Ministry PDM related activities as a result of re-
prioritization as guided by the Cabinet and the National Policy Committee.

Failure to utilize PDM funds for administrative costs and coordination of PDM activities
may undermine the achievement of the PDM objective.

Recommendations

 Accounting Officers should ensure the recruitment of parish chiefs and furnish
the right information to MoFPED for release of funds.
 PDM Secretariat should assess whether the vacant positions should be filled to
enable utilization of the funds.
 PDM Secretariat, UBoS, MoICT&NG and MoFPED should fast-track the process of
integrating 2024 census results into the PDMIS.
 The Ministry of Local Government should roll-over the un-implemented activities
from which funds were re-purposed.

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ii) Administrative Funds - Parish Chief Allowances

Paragraph 4(h) of the of the Circular on the Implementation of the Financial Inclusion
Pillar of the Parish Development Model in the stabilization phase from the PSST dated 8th
January 2024 ref: EDP103/86/02 vol.3 requires payment of UGX.100,000 per month
(UGX.1,200,000 p.a) per parish chief as allowance for rent and bicycle repair.

I noted that in the FY 2023/24 MoFPED budgeted and received UGX.12.700Bn for PDM
Parish Chiefs bicycle repair and rent of offices (which was later reallocated to pay parish
chiefs allowances). Out of expected amount to be paid of UGX.12.700Bn, UGX.12.277Bn
(97%) was paid to parish chiefs leading to underpayment of UGX.0.422Bn. Out of the
UGX.0.422Bn, a sum of UGX.0.137Bn related to 114 parish chiefs who were not paid at
all. A summary is in the table below;

Table 37: Payment of Parish Chiefs’ Allowances

Amount (UGX)
Detail Q1 Q2 Q3 Q4 Total
Expected 3,174,900,000 3,174,900,000 3,174,900,000 3,174,900,000 12,699,600,000
Actual 3,113,200,000 3,052,500,000 3,057,600,000 3,054,000,000 12,277,300,000
Variance 61,700,000 122,400,000 117,300,000 120,900,000 422,300,000
Source: OAG Analysis of MoFPED Parish Chief Allowances data

Failure to facilitate the parish chiefs affects the provision of technical guidance to the
PDM enterprise groups and SACCOs as well as ensuring compliance with the PDM
guidelines and regular update of data on the PDMIS.

MoFPED explained that the respective LGs had not submitted details for the 114 parish
chiefs that were not paid while, others were not appointed as substantive parish chiefs
as per the payroll review. He further added that the responsibility of payment had been
shifted to the respective LGs in the subsequent period.

Recommendation

The Accounting Officers of LGs should engage MoPS and MoFPED for additional wage
and ensure that substantive parish chiefs are recruited and monitored.

iii) Parish Revolving Funds

a) Transfer of Parish Revolving Funds to PDM SACCOs

Out of UGX.1,059.40Bn for PRF in respect of 10,594 PDM SACCOs, UGX.1,058.37

(99.9%) was transferred to 10,589 PDM SACCOs resulting in un-remitted funds of
UGX.0.650Bn (0.1%). The un-remitted funds were meant for the three (3) PDM SACCOs
that did not receive the second instalment of PRF, and five (5) parishes that had not met
the capitalization requirement.

MoFPED explained that Accounting Officers of the affected LGs had confirmed that the
five (5) parishes were non-existent.

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Recommendation

The Ministry of Local Government should verify the existence of the five (5) parishes and
if found to be non-existent should notify MoFPED to exclude them from the budget.

b) Disbursement of Parish Revolving Fund (PRF) to the Households

Paragraph of the Users Handbook for the Parish Revolving Fund (PRF) under PDM Pillar
3 - Financial Inclusion (October 2022) stipulates that the money for each Parish under
the PRF shall be disbursed directly from the Consolidated Fund to the PDM SACCO Bank
account solely for on-lending to subsistence households in the parish who are members
of a registered PDM Enterprise Group in that parish.

My review of the MoFPED capitalization and the PRF disbursement reports as at 31st
December 2024, revealed that out of the total cumulative transfers from FY 2021/22 to
2023/24 of UGX.2.197Tn, a sum of UGX.2.138 (97.23%) had been disbursed as
summarized in the table below;

Table 38: Cumulative capitalization and disbursements of PRF to households

SN Details FY 2023/24 Cumulative up to Dec 2024
(UGX’ Tn) (UGX’ Tn)
1. Capitalization 1.058 2.197
2. PRF disbursement 1.014 2.138
3. Percentage Rate of 95.81% 97.23%
Disbursement
4. Number of Beneficiaries (in 2.199
Millions)
Source: OAG analysis of MoFPED capitalization and the PRF disbursement reports

From my physical inspection of 7,114 sampled PDM SACCOs in 116 LGs, I noted that
since the inception of the PDM in FY 2021/22, UGX.0.708Bn (79%) out of the PRF
received of UGX.0.902Bn had been disbursed leaving UGX.0.192Bn (21%) not disbursed
by end of the financial year 2023/2024.

I further noted that 212 inspected PDM SACCOs in 14 LGs could not account for PRF of
UGX.1.544Bn received and withdrawn from their bank accounts. The amount had not
been disbursed to households by the time of my audit.

The failure to account for the Parish Revolving Fund (PRF) coupled with the low rate of
disbursement may undermine the achievement of the pillar objective of eradicating
poverty.

The Accounting Officers of LGs attributed the shortcoming to late release of funds by
MoFPED, challenges associated with limited network access and lack of ICT gadgets for
loan processing on the PDMIS. In addition, Accounting Officers explained that the
transition from the manual systems to PDMIS and Wendi application caused delays.
However, MoFPED attributed the late release to cash flow challenges and under
absorption by SACCOs.

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Recommendations

 MoFPED should ensure timely release of funds to PDM SACCOs.

 The Accounting Officer of MoICT&NG should ensure that the challenges
associated with the PDMIS are resolved.

c) Implementation of Funded Projects

Paragraph 32 (b) PDM - A LG Guide for Supporting Households & Enterprise Groups in
Accessing Loans Under the PRF (Guide No.2), January 2023 states that a PRF has been
established to ensure loans, of up to UGX.1Mn per household, are provided to
subsistence households through a special type of a multi-purpose cooperative called the
PDM SACCO. Each loan under the PRF shall mainly be used for purchasing capital inputs
and operational expenditures e.g. seeds, fertilizers, acaricides, veterinary drugs etc.

I reviewed loan files and carried out physical inspections, and observed the following;

 A total of 342 beneficiaries in 253 PDM SACCOs in 50 LGs had implemented

ineligible projects.
 A total of 170 beneficiaries in 124 PDM SACCOs in 37 LGs had non-existent
projects.
 A total of 1,004 beneficiaries who received PRF of UGX.1Bn did not account for
funds received of UGX.0.286Bn in terms of support documentation.

Implementation of ineligible projects and non-existent projects undermines the

achievement of PDM objectives.

The Accounting Officers of LGs attributed this to;

 Unfavorable seasonal variations for the particular funded projects

 Contradicting guidelines on flagship projects
 Delayed release of funds by MoFPED.
 Limited land in the urban settings
 Inflexible District/urban flagship projects

MoFPED explained that a tool to facilitate real-time monitoring of the funded

beneficiaries and their projects had been developed. In addition, MoFPED explained that
in the FY2024/25 funds would be released in two tranches, in January and June 2025.

Recommendations

 MoFPED should ensure timely release of funds to PDM SACCOs in accordance

with the new disbursement cycle. In addition, MoFPED should fast track the roll-
out of the monitoring tool.
 The Accounting Officers of LGs should;
 Engage the PDM Secretariat to harmonize the guidance on enterprise
selection.
 Improve supervision and monitoring to ensure that implementation is as
planned.

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 The PDM Secretariat should review the implementation guidelines to allow
flexibility in selection of flagship projects.

d) Matching of Disbursement of Funds to Households with Planting

Seasons

Paragraph 6 of the circular on the implementation of financial inclusion activities under

the parish development model during the stabilization phase ref: EDP 86/103/02 vol.3
dated 8th January 2024 provided that capitalization of PDM SACCOs would commence in
quarter 3 of FY 2023/24 to align with the next planting season as such UGX.50 million,
per PDM SACCOs would be transferred in quarter 3 and the balance of UGX.50 million
shall be transferred to the PDM SACCOs in quarter 4.

I noted that 26,525 PRF beneficiaries inspected in 69 LGs who were engaged in various
crop production projects received funds out of the planting seasons.

This may lead to low yields for those that planted late and diversion/misuse of funds for
those who did not plant.

The Accounting Officers of LGs attributed this to late release of funds to PDM SACCOs by
MoFPED.

MoFPED explained that beginning with the FY 2024/25 funds would be released in two
tranches, in January and June 2025 to favor both crop and non-crop beneficiaries.

Recommendation

MoFPED should ensure timely release of funds to PDM SACCOs in line with the proposed
new funds transfer cycle.

e) Failure to follow the prescribed allocation criteria for Special Interest

Groups

Paragraph 4.1.3 of the Users Handbook for the Parish Revolving Fund (PRF) under PDM
Pillar 3 - Financial Inclusion October 2022 prescribes the allocation criteria which should
be adopted in the utilization of the Parish Revolving Funds by Special Interest Groups as
follows;

Table 39: Allocation criteria for the Parish Revolving Funds

SN Category Description Required
allocation
1. Women All women from the age of 18 years 30%
2. Youth All persons aged between 18 to 30 years 30%
3. Persons with Persons with a substantial functional limitation in their daily life 10%
Disabilities activities caused by physical, mental or sensory impairment and
environment barriers.
4. Older Persons Women and men, aged 60 years and above 10%
5. Men/General Others 20%
Community
Total 100%

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 I noted that out of the 7,114 SACCOs in 99 LGs;

 A total of 1,034 SACCOs did not meet the requirement for Women.
 A total of 1,181 SACCOs did not meet the requirement for the Youth.
 A total of 1,230 SACCOs did not meet the requirement for the Persons with
Disabilities.
 A total of 1,110 SACCOs did not meet the requirement for Older Persons.
 A total of 1,142 SACCOs did not meet the requirements for men.

A summary is in the table below.

Table 40: Allocation of PDM to Special Interest Groups

Categories NO of SACCOs No of SACCOs No of SACCOs Total Number of
meeting the Below the above the SACCOs that did not
required required required meet the
minimum minimum minimum requirement
(A) (B) (C) (D)=(B+C)
Women 373 451 583 1,034
Youth 275 903 278 1,181
Persons with 229 1,147 83 1,230
Disabilities
Older Persons 347 798 312 1,110
Men 326 576 566 1,142
Source: OAG Analysis of SACCO disbursements

This limits the inclusion of all categories of subsistence households which undermines
the achievement of the pillar objective of eradicating poverty.

The Accounting Officers of LGs explained that some categories do not have the required
numbers as per the guidelines while others showed more interests than other special
interest groups.

Recommendation

The PDM Secretariat should provide guidance in such circumstances and amend the
guidelines where necessary to allow for flexibility in the allocation criteria.

2.2.3.3 PDM Governance and Administrative Structures

The PDM Governance Structures are guided under: Paragraph 2.1, 2.3, 4.1 & 22 of the
Governance and Administration Pillar Operations Manual, February 2022; Paragraph 21
of the PDM - A Local Government (LG) Guide for Supporting Households & Enterprise,
January 2023; Paragraph 2.6.4 & 3.0 of the PDM Users’ Handbook for PRF under Pillar 3,
(22nd version, October 2022); and Paragraph 91 of the PDM, Guide 2.

I reviewed the existence and functionality of the PDM governance and administrative
structures at the National level, Local Government and KCCA level, Parish and SACCO
level and made the following observations;

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a) Implementation of the National Policy Committee Resolutions

Paragraph 2.1 of the Governance and Administration Pillar Operations Manual, February
2022, stipulates that the NPC, chaired by His Excellency (HE) the President, shall provide
overall policy direction to the PDM, oversee, guide the operationalization of the
programmes and ensure alignment with NDP III and NRM Manifesto. The Committee will
convene at least once a quarter.

I was not availed with records of the NPC resolutions made to ascertain the status of
implementation of resolutions. I could not establish whether the resolutions made were
implemented.

The Accounting Officer of MoLG explained that the resolutions are always in the cabinet
minute extract and management would endeavour to extract the minutes.

Recommendation

The National Coordinator PDM Secretariat should ensure that the resolutions are
extracted and maintained by the Secretariat for follow-up.

b) Functionality of the Pillar Working Groups

PDM Pillar Working Groups should review, propose amendments to the Operational
Guidelines and respective Pillars Manuals, and to assist in the alignment of plans and
budgets of MDAs to the PDM.

I reviewed the operations of the pillar working groups and noted the following;

i) Pillar 4 - Social Services, and Pillar 6 - Parish Based Management Information

System (PDMIS) did not have approved pillar manuals.
ii) I noted that all the seven (7) pillar working groups did not have evidence to
indicate that they held regular meetings.
iii) Pillar 1 - Agriculture value chain development, did not undertake a review of the
operational guidelines due to failure to convene pillar meetings.
iv) All the 7 Pillar working groups did not submit the required number of quarterly
performance reports to the PDM Secretariat as required but provided bi-annual
reports.

Failure to develop pillar manuals, convene regular meetings and monitor Pillar
performance may hinder the alignment of plans and budgets of MDAs to the PDM.

The Accounting Officers of the Pillar lead agencies attributed this to inadequate funding.

Recommendation

The Accounting Officers of the Pillar lead agencies should engage the PDM Secretariat
and MoFPED to ensure that the required funding is provided for proper functioning of
the Pillar Working Groups.

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c) Unfilled Parish Chiefs and Town Agent Positions

In the letter to all Local Government Chief Administrative Officers dated 7th October
2021 ref: BPD103/155/01 from the PSST indicated that the requirement of parish
chiefs/Town Agents was a pre-requisite for effective implementation of the PDM and
accordingly funds were appropriated for this purpose in the FY 2021/22. The deadline
for recruitment was therefore set to have been completed by 30th September 2021 and
extended to 31st October 2021.

I noted that 3,959 (97%) Parish Chiefs and Town agent positions out of the required
4,098 in a sample of 62 LGs were filled, leaving 139 (3%) positions unfilled.

The failure to recruit Parish Chiefs and Town agent limits the provision of technical
guidance to the PDM enterprise groups and SACCOs as well as ensuring compliance with
the PDM guidelines and regular update of data on the PDMIS.

The Accounting Officers attributed this to the ban on recruitment and inadequate wage
bill.

Recommendation

The Accounting Officers of the LGs should engage MoPS for clearance to recruit and
MoFPED for allocation of funds.

d) Existence and Functionality of SACCO Committees and Sub Committees

The PDM Operational Guidelines from MAAIF provides that the Executive Committee of
the PDM SACCO shall constitute the Production, Marketing, Finance & Investment and
the Business Development Services Sub-Committees.

I noted that a total of 2,190 PDM SACCOs in 96 LGs either did not constitute the
supervisory, executive committees as well as the Loan, Production, Marketing, Business
Development services, or the Finance and investment sub-Committees.

This could lead to mismanagement of the SACCOs due to lack of appropriate oversight
by the committees.

The Accounting Officers of LGs attributed this to;

 Inadequate resources to fund all the required committees.

 Unclear and conflicting guidelines on Implementation of PDM.
 The production and marketing, Business Development services, Finance,
planning and investment were inactive because efforts were put on disbursement
of PRF to SACCOs which was the role of the loans committee.

Recommendation

The Accounting Officers should ensure that Commercial Officers support the boards to
constitute the required committees and Sub-committees.

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e) Agriculture Extension Services

Paragraph 3.1.1 of the MAAIF PDM operational guidelines on knowledge/extension

services for crop, animal husbandry and fisheries provides that Government extension
services are expected to support and guide farmers in making decisions on; the
technological options, management of the various technologies, farming system, types
of products and their demand, quality specifications, sources of inputs and sell of
products, resource use and marketing, relevant and reliable knowledge and information,
and feasible off-farm income generation options.

Furthermore, the Government would employ three extension staff at the local
government (sub-County) level in the areas of livestock, crops and fisheries on
permanent and pensionable terms to provide advice to mixed farmers producing a range
of enterprises.

I noted the following;

 Staffing

Out of the required extension staff positions in 135 LGs of 5,874, 2,561 (44%)
had been filled leading to a shortfall of 3,324 (57%).

I further noted that the staff structure in the MCs did not provide for positions of
Agriculture extension officers at the LLG (Division) level. This constrains the
implementation of PDM activities at the Division level.

 Adequacy of resources (means of transport)

Section 3.1 of the compendium of costed service delivery standards for Local
Governments, August 2023 on extension worker tools and equipment requires
each extension worker to be equipped with motorcycle, helmet and protective
clothes.

However, I noted that 1,035 out of the 2,561 existing extension workers in 135
LGs did not have motorcycles.

 Professional certification of extension workers

Paragraph 3.1.1 of the MAAIF PDM operational guidelines provides that MAAIF
will develop and institutionalize a professional certificate course to equip
extension workers with practical skills, which will be a requirement to provide
extension services at the Parish level.

However, I noted that 2,561 extension staff in 135 LGs did not have professional
certificates to provide extension services.

Inadequate staffing and resources (transport), and lack of professional certification of

extension staff limits the reach of extension services which affects on-farm production.

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The Accounting Officers of LGs explained that the staffing gaps existed because of ban
on recruitment while, the lack of resources was attributed to limited funding. They
further explained that they are unaware of the professionalization initiative by MAAIF.

Recommendations

 MAAIF should retool Extension Workers to support and guide farmers in making
decisions on the technological options, management of the various technologies,
among others.
 MAAIF should develop strategies to ensure professional certification of extension
workers is achieved.

f) Guidance on the implementation of PDM activities

The PDM Governance Structures are guided under: Paragraph 22 of the Governance and
Administration Pillar Operations Manual, February 2022 requires PDM Pillar Working
Groups to review, propose amendments to the Operational Guidelines and respective
Pillars Manuals.

In addition, the PDM Secretariat should review and update PDM guidelines for approval
by the NPC.

I reviewed the PDM implementation guidelines, operational manuals and circulars, and
noted the following contradictions;

Table 41: Contradictions in the Implementation of PDM Activities

SN PDM implementation Contradictions Implication Management
guidelines, Response
operational manuals
and circulars
1. PDM Operational List of priority Distorts the The PDM
Guidelines Pillar 1. commodities as selected implementation National
by each local of the program Coordinator
government based on and undermines explained that
ecological advantages. the achievement the Secretariat
of the PDM was preparing a
Circular on the Qualifying project along objectives. paper for
implementation of the agricultural value Cabinet to
financial inclusion chain and in line with address these
activities under the the priority PDM contradictions.
parish development enterprises i.e. poultry,
model during the fish, diary, coffee,
stabilization phase, 8th piggery, fruits and food
January 2024. crops.

2. Circular on the Paragraph 2(e) The use of the The PDM

implementation of Ensuring, effective use village vetting National
financial inclusion of digital systems mainly committees Coordinator
activities under the PDMIS and Mobile undermines the explained that
parish development wallets to support need of the data although the
model during the beneficiary collection and use of PDMIS

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 SN PDM implementation Contradictions Implication Management
guidelines, Response
operational manuals
and circulars
stabilization phase, 8th identification. household for identification
January 2024. profiling in the and selection, it
Paragraph 8(a) (iii) PDMIS. is planned that
provides that an eligible the village
borrower must be from vetting meetings
a subsistence and PDMIS
household, as would be used
determined at the concurrently to
community meetings complement
where applicants are each other.
vetted by the village
residents.
3. Paragraph 3 of the MoICT is trying to There is role The PDM
letter from the PSST integrate with other ambiguity National
dated 5th April 2024 existing core banking between the Coordinator
ref: EDP103/86/02 systems while the parties. explained that
vol.3 stated that MoFPED is only the promotion of
Government had integrating with post the use of
adopted a policy to bank through the Wendi Government
use the Wendi mobile platform and all other Banks through
wallet to disburse government and Wendi
funds to PDM supervised financial Application was
beneficiaries and that institutions banks should patriotic move
all supervised financial utilize the Wendi to benefit
institutions were to platform through post Government
integrate with the bank. owned Banks
wallet application and also limit
through Post Bank. capital flight.

Paragraph 4.2 of the

Pillar-No. 6 - The
Parish Development
Management
Information System
(PDMIS) Operation
Manual requires
system Development
(all 7 modules) to
include integration to
existing systems.

The Accounting Officers of LGs explained that these contradictions delayed the
implementation of PDM activities. However, the Accounting Officer of MoLG explained
that contradictions are reconciled through subsequent circulars that become an integral
part of guidance to the PDM implementers.

134
 Recommendation

The PDM Secretariat and the Pillar Working Groups should coordinate the revision and
update of the existing guidelines and going forward should offer timely clarity in such
circumstances.

2.2.3.4 PDM SACCO Operations

Paragraph 2.3 (C) of the operational manual; Paragraph 3.7 & 3.8 of the users’
handbook for the parish revolving fund (PRF) Under PDM pillar 3 - Financial Inclusion,
October 2022; Instruction 10.1.6 (a-h) of the Treasury instructions, 2017; Paragraph
4.1.1 of the Parish Development model users handbook under the parish revolving fund;
Annex 2 of PDM - A Local Government Guide for Supporting Households & Enterprise
Groups in Accessing Loans under the PRF (Guide No.2), January 2023; and the guidance
letter from the PDM National Coordinator ref: HRM/133/292/01 of 5th June 2023 require
that;

I made the following observations;

a) Selection and Implementation of Prioritized/Flagship Projects

Each Parish shall select flagship projects that will benefit all interested subsistence
households in a participatory manner as guided by the Commercial Officer, Community
Development Officer (CDO) and relevant sector experts.

 A total of 313 parishes in 19 LGs did not select any flagship projects contrary to
the guidelines.
 A total of 1,213 parishes in 80 LGs selected flagship projects that were
inconsistent with the LG selected priority commodities.
 A total of 30,900 Farmer households/individuals implemented projects not from
the priority commodity list.

Failure to select and implement prioritized projects may undermine the achievement of
the pillar objectives.

The Accounting Officers of LGs attributed this to;

 Contradicting guidelines on recommended flagship projects and enterprise

selection from MoLG, and MAAIF.
 Non-consultative selection criteria for flagship projects which could not match
specific enterprise conditions.
 Some flagship projects were not suitable for the selected LGs and urban centres.
 Delayed release of guidelines after selection of flagship projects.
 Failure by the community to appreciate the principles of the PDM.
 Limited options given by MAAIF yet LGs have various viable commodity projects.

MoFPED explained that a tool to facilitate real-time monitoring of the funded

beneficiaries and their projects had been developed.

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Recommendations

 The PDM Secretariat should harmonize the various guidance on flagship projects
and enterprise selection.
 The Accounting Officers should liaise with the MAAIF to ensure that selected LG
commodity lists that are consistent with the ecological advantages of the regions.
 MAAIF should review the LG commodity list in consultation with the LGs to
increase the selection options.
 MoFPED should fast-track the roll-out of the PDM monitoring tool.

b) Multiple Funding of Beneficiaries from the PDM and Emyooga Wealth

Creation Programmes

Paragraph 8(b) of the circular on the implementation of the Financial Inclusion Pillar of
the Parish Development Model in the stabilization phase from the PSST dated 8th
January 2024 ref: EDP103/86/02 vol.3 requires that households/individuals who have
benefited from Emyooga should not benefit from PRF loans.

Out of a sample of 6,679 Emyooga beneficiaries’ data from 13 HLGs availed for review,
608 beneficiaries of PRF amounting to UGX.0.603Bn had also obtained UGX.1.025Bn
from the Emyooga Program as summarized in the table below;

Table 42: Multiple funding of Beneficiaries

SN Category Number Emyooga PRF Amount
Amount (UGX) (UGX)
1. Same NIN, Same Telephone No. and 81 128,324,150 78,780,000
Same Name
2. Same NIN and Name 80 114,693,500 78,600,000
3. Same Telephone No. and Name 381 662,663,450 379,550,000
4. Same Telephone No. and Different 66 119,346,250 65,650,000
Name
Total 608 1,025,027,350 602,580,000

This eliminates other would-be beneficiaries from the program hence undermining the
objectives of other wealth creation initiatives. Besides the mentioned individuals may not
be able to repay the amounts obtained.

The Accounting Officers of LGs explained that the beneficiaries were applying through
other LGs, making it difficult to track them.

MoFPED and PDM Secretariat attributed this to implementation of Emyooga programme

on a manual system thus making it difficult to reconcile beneficiaries from the two
programmes.

Recommendation

MoFPED should establish a digitalized centralized database of all wealth creation

program beneficiaries to detect and prevent duplicate beneficiaries.

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c) Insurance Policy for Farming Enterprises

For farming enterprises, the borrower must obtain an agriculture insurance policy under
the Uganda Agriculture Insurance Scheme (UAIS).

I noted that a total of 19,693 PRF beneficiaries who carried out farming enterprises in
1,817 PDM SACCOs in 119 LGs did not obtain agricultural insurance policies from UAIS.

Lack of recourse in form of insurance will expose the farming enterprises to the adverse
effects of climate change and may result in failure to recover the loan funds.

The Accounting Officers of LGs attributed this to inadequate guidance on Agricultural

insurance and insufficient funds disbursed to each PRF beneficiary to register with the
Uganda Agriculture Insurance Scheme (UAIS).

Recommendation

The PDM Secretariat should provide adequate guidance on provision of Agricultural

insurance to PDM farmers.

d) Existence of Registered Offices and Signboard

Section 20(1 & 2) of the Cooperative Societies Act Cap 112 provides that;

 Every registered society shall have a registered address to which notices

and communications may be sent and shall send to the registrar notice of
every change of address within one month of the change.
 Every registered society shall display its name and address on a signboard
in a conspicuous position outside its place of business.

I noted the following;

 A total of 2,985 PDM SACCOs in 127 LGs did not have registered offices on
their documents.
 A total of 567 PDM SACCOs in 41 LGs’ registered offices did not exist.
 A total of 2,898 PDM SACCOs in 121 LGs did not have evidence of a sign
board showing their names and address.

The Accounting Officers of LGs attributed this to limited funding to establish these
offices. They further indicated that the SACCOs were operating mainly under the homes
of the chairpersons, under trees at the premises of public institutions and others were
renting from trading centres.

Recommendation

The PDM Secretariat should engage the MoFPED on modalities of establishing SACCO
offices. In the meantime, the Accounting Officers of LGs should provide office space and
cupboards at the LLG establishments.

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2.2.3.5 Implementation of the PDMIS

Paragraph 2 of the PDM Pillar-No. 6 - The Parish Development Management Information

System (PDMIS) Operation Manual stipulates that;

 The PDMIS shall be a modular system covering all seven pillars of the PDM. At its
full implementation, it shall have; the registration & data collection, Production,
Processing and Marketing, Infrastructure, Financial inclusion module, Social
Services, Community mobilization & mind-set change, and Monitoring and
Evaluation (M&E) modules.
 The MoICT&NG will implement the system in a phased approach starting in FY
2021/22, with the Registration & data collection, Financial Inclusion, and
Monitoring & Evaluation modules in the first phase.

a) Status of Implementation of the PDMIS Modules

The first modules shall be rolled out to a further 6720 parishes in the first half of
2022/2023. In the second half of 2022/23 the modules for Agro-processing,
Infrastructure development, Services and mind set change shall be developed. Rollout of
all modules shall be done to parishes in the second half of 2022/23. Project staff shall
continuously be trained on how to use the system.

I reviewed the implementation of the PDMIS and noted the following;

Out of seven (07) modules; two (02) modules were fully implemented, two (02) -
modules were partially implemented, and 3 modules were not implemented as
summarized in the table below.

Table 43: Implementation of PDMIS Modules

SN PDMIS Modules Expected year Status of Functionality
of completion Implementation
1. Data Collection and Registration 2022 Rolled out Partial data
collection
2. Financial Inclusion 2023 Rolled out Functional
3. Monitoring and Evaluation 2023 Not rolled out Not functional
4. Citizen Participation Information 2023 Not rolled out Not functional
System
5. Product, processing & Marketing 2023 Not developed Not functional
6. Infrastructure 2023 Not developed Not functional
7. Social Services 2023 Not developed Not functional
Source: Pillar 6 - The PDMIS Operation Manual and OAG Analysis

Failure to develop all the 7 modules undermines the PDMIS’s envisaged objective of
offering end to end supervisory, management and monitoring functions of the entire
PDM programme therefore affecting the achievement of the PDM objectives.

The Accounting Officer of MoICT&NG attributed this to insufficient funding that

compelled them to use the phased mode of implementation to sequentially have all the
unimplemented modules accomplished.

138
Recommendation

The Accounting Officer of MoICT&NG should engage the MoFPED to allocate additional
funding to ensure full implementation of the PDMIS.

b) Utilization of the Wendi Mobile Application Platform

Paragraph 3 of the letter from the PSST dated 5th April 2024 ref: EDP103/86/02 vol.3
stated that Government had adopted a policy to use the Wendi mobile wallet as
payment platform to disburse funds to PDM beneficiaries through Government owned
banks and all participating private financial institutions.

The letter also stipulated that more than 6,000 PDM SACCOs had been on-boarded and
the remaining SACCOs would be migrated on to Wendi before close of the FY 2023/24.

I noted the following from the analysis of MoFPED PDM SACCO transfer data as at
August 2024;

 Out of the 176 HLGs and KCCA expected to utilize the Wendi mobile application
platform, 66 HLGs had all their PDM SACCOs paying through the Wendi, 78 HLGs
had some of the PDM SACCOs paying through wendi, while 32 HLGs and KCCA
did not pay through Wendi. A summary is in the table below;

Table 44: Utilisation of the Wendi Mobile Platform by HLGs and KCCA
SN Category Number of HLGs
1 Fully on Wendi 66
2 Partially on Wendi 78
3 Not on Wendi 33
Total 177
Source: OAG Analysis of MoFPED PDM SACCO data

 Out of the 13 supervised financial institutions participating in the financial

inclusion pillar, only 3 financial institutions had connected (integrated) to the
Wendi mobile application platform, while 10 had not connected (integrated) to
the platform.
 Out of 10,589 PDM SACCOs that received PRF in FY 2023/24, a total of 4,013
(38%) received funds amounting to UGX.401Bn outside the Wendi mobile
platform. Included in these are 49 PDM SACCOs that received PRF outside the
Wendi mobile application platform yet they had accounts in participating
Government owned banks which had already connected (integrated) with Wendi.
Details in the table below;

Table 45: PDM SACCOs using the Wendi Mobile Platform

SN Bank Name Nature of Account Number
of PDM
SACCOs
1 Absa Bank Uganda Limited Not on Wendi 12
2 Bank Of Africa Uganda Limited Not on Wendi 37
3 Centenary Rural Development Bank Limited Not on Wendi 1,719

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 SN Bank Name Nature of Account Number
of PDM
SACCOs
4 DFCU Bank Limited Not on Wendi 474
5 Diamond Trust Bank Uganda Limited Not on Wendi 9
6 Equity Bank Uganda Limited Not on Wendi 107
7 Finance Trust Bank Uganda Not on Wendi 188
8 Housing Finance Bank Uganda Limited Not on Wendi 46
Wendi Account 721
9 Kenya Commercial Bank Uganda Limited Not on Wendi 11
10 Opportunity Bank Uganda Limited Not on Wendi 482
11 Postbank Uganda Limited Wendi Account 5,345
12 Pride Microfinance Limited Wendi Account 963
Not on Wendi 3
13 Stanbic Bank Uganda Limited Not on Wendi 472
Total 10,589
Source: OAG Analysis of MoFPED PDM SACCO data

By the end of FY 2023/24, 4,013 (38%) SACCOs out of the targeted 10,589 had not
been on-boarded on the Wendi platform.

The benefits of Wendi which include; convenience, security, lower transaction costs,
transparency and ease of tracking the PDM funds was undermined.

MoFPED explained that all Government owned financial institutions had on-boarded on
to the Wendi platform and encouraged the other participating financial institutions to on-
board. MoFPED further explained that some Government owned financial institutions had
less coverage country-wide.

Recommendations

 MoFPED to ensure that all participating banks are integrated on the Wendi
Platform as per the Cabinet directive. In addition, MoFPED should ensure that
Post Bank increases the country-wide agency coverage of the Wendi mobile
application platform.
 Accounting Officers of LGs and KCCA must ensure that PDM SACCOs and
members are on-boarded on the Wendi platform.
 The PDM SACCO executive should ensure that payments to beneficiaries are
made through the SACCOs’ mobile wallet.

c) Review of the PDMIS Integration with Existing Systems

Paragraph 4.2 of the Pillar-No. 6 - The Parish Development Management Information

System (PDMIS) Operation Manual states that the PDMIS development and rollout to all
Parishes across the country requires the following activities provides that the PDMIS
development and rollout to all Parishes across the country requires system Development
(all 7 modules) including integration to existing systems.

140
The inception report for the registration and data collection module and the financial
inclusion modules by the contractor dated 26th May 2022 indicated the following external
integrations were supposed to be implemented;

 NIRA for National Identification verification,

 Uganda Registration Services Bureau (URSB),
 Agricultural Insurance Service Providers,
 Mail servers,
 IFMS for approved PDM SACCOs capitalization,
 Commercial banks,
 Ministry of Trade, Industry and Cooperatives (MoTIC) for approval of PDM
SACCOs.

I reviewed the status of integration at the time of the audit and noted the following;

 Only four (04) banks (Centenary, Postbank, Housing Finance, and Pride
Microfinance banks) out of the 13 supervised participating banks had completed
the two-way integration with the PDMIS financial inclusion module, while the
integration with Stanbic Bank was still in progress, with user acceptance tests
not yet conducted. Integrations with the other 9 supervised participating banks
had not been effected. Further the Accounting Officer of MoICT&NG explained
that integration with NIRA, mail servers, Agricultural Insurance Service Providers
had been completed.

 Integrations with IFMS and MoTIC had also not been implemented.

The Accounting Officer of MoICT&NG explained that MoFPED had not yet provided the
Application Programming Interface (API) to facilitate the integration of the PDMIS with
the IFMS. The Accounting Officer explained that the integration with Equity Bank,
Stanbic Bank and Opportunity Bank were completed but would be commissioned to
production once MoFPED signs the integration MoUs.

The Accounting Officer of MoICT&NG further explained that they had not integrated with
MoTIC because MoTIC did not have a system to integrate with. However, MoICT&NG
had developed a component within the FIS module.

I noted that Government had adopted a policy to use the Wendi mobile wallet as a
payment platform to disburse funds to PDM beneficiaries through Government owned
banks and all participating private financial institutions. With introduction of the Wendi
mobile wallet, the two-way integration of the PDMIS with Commercial Banks conflicts the
implementation of the Wendi payment system.

Recommendations

 The Accounting Officer of MoICT&NG should engage the stakeholders to ensure

complete integration of the PDMIS with the existing systems.
 MoFPED and MoICT&NG should harmonize the integration of PDMIS and Wendi
with Commercial Banks.

141
d) Review of PDMIS Records
i) Multiple loan approvals of the same individuals

Review of the loan’s disbursement report revealed that there were multiple payments to
the same household/ individuals. I observed the following;

I noted multiple loan approvals and payments to 902 individuals who received loans
amounting UGX.0.896Bn as summarized in the following table;

Table 46: Multiple Loans by same individuals

SN. Category No. of Total loan
household/ amount (UGX)
individuals
1. Duplicate NIN, same Name, same phone number 50 49,800,000
2. Duplicate NIN, Same Name, different phone number 800 795,200,000
3. Duplicate NIN, different name, different phone 52 50,720,000
number
Total 902 895,720,000

Multiple loan disbursements deny potential beneficiaries obtaining from PDM funds
hence undermining the PDM objectives.

ii) Multiple Approval of loans to the Same Households

Paragraph 3.4 of the Users Handbook for the Parish Revolving Fund (PRF) Under PDM
Pillar 3 - Financial Inclusion, October 2022 provides a loan size for each household
including charges and insurance, not to exceed UGX.1million shillings per household. For
avoidance of doubt, a household is defined as an individual (including single people who
live alone) or group of persons that live together, cook together and eat together.

I noted from my review of PDMIS records, that loans amounting to UGX.10.432Bn for
5,710 households were approved multiple times through 10,646 individuals.

Multiple loan disbursements of PRF to the same household denies potential beneficiaries
from obtaining PDM funds hence undermining the PDM objectives.

iii) Loans Approvals for Members of Un-registered Enterprise Groups

Paragraph 4.1.7 (b) of the Users Handbook for the Parish Revolving Fund (PRF) Under
PDM Pillar 3 - Financial Inclusion, October 2022 provides that the guarantors are the
Enterprise Group members. The members are known third parties who encourage the
borrower to meet their loan obligation, beside fear of social backlash.

My review of the PDMIS records revealed that UGX.0.826Bn was approved for 832
beneficiaries yet they were from un-registered enterprise groups.

This would make it difficult to enforce recovery in the event a member defaults given
that group members are co-guarantors to the loan beneficiaries.

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 iv) Existence of Loan Amounts below UGX.1Mn in the PDMIS

Paragraph 4 (a) of the circular on the implementation of financial inclusion activities

under the parish development model during the stabilization phase ref: EDP 86/103/02
vol.3 dated 8th January 2024 provides that the loan amount for each borrower should
UGX.1Mn.

I noted that a total of UGX.8.611Bn loan amounts to 13,844 beneficiaries in 94 LGs

whose individual loan amount were less than UGX.1Mn were captured in the PDMIS.

Regarding all the issues raised during the review of the PDMIS records, the Accounting
Officers of LGs explained that they did not have the mechanism to track whether
beneficiaries from the same households had already applied and received PRF funds.
The Accounting Officer of MoICT&NG attributed the shortcoming to;

 Disbursements by LGs that had earlier been made outside the PDMIS but later
advised by the PS/ST in the January 8th 2024 circular, to capture those records in
the system. During capture of backlog entries, the system revealed that some
households had two or even more individuals who had received funds. While
there were multiple approvals, these were not paid through the system.
 Loan top-ups after the Cabinet directive that each household must receive
UGX.1Mn hence creating duplicate entries.

However, I noted that the loan data report extract provided by MoICT&NG could not
show the distinction between top-up loans and new loans.

The Accounting Officer of MoICT&NG explained that the controls were effective going
forward.

MoFPED explained that the President, during his wealth creation tour in the Sebei sub-
region, ordered the PDM Secretariat and relevant authorities to investigate the issue of
approval and disbursement of loans that are below UGX.1Mn. Going forward, the Wendi
wallet has been configured to ensure that all PDM loans are exactly UGX.1Mn.

Recommendation

The Accounting Officers of LGs and MoICT&NG should institute corrective measures to
address the identified gaps in PDMIS, including making thorough data clean-up in the
PDMIS.

2.2.3.6 Monitoring and Evaluation Framework

Paragraph 7.2 of the Implementation Guidelines for the Parish Development Model,
February 2022 states that;

 The Government shall develop PDM Results Framework which should at higher
level make it possible for the PDM to feed into the Industrialization Policy, the
NDP III Framework; and the National Vision.
 The M&E tools shall entail the annual reports to the PDM National Policy
Committee.

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  The M&E tools shall entail a National Survey every two years, to measure
progress of the PDM.

I reviewed the Monitoring and Evaluation Framework and noted that;

i) The PDM Results Framework had not been developed hence there were no
performance indices for the Parish based subnational level outcome results for
each Pillar which makes it difficult to track implementation progress.
ii) The National Survey to measure progress of the PDM was not carried out.
iii) The Government Annual Performance Report (GAPR) from the Office of the
Prime Minister did not mainstream PDM into the report.

The above shortcomings will make it difficult to measure the outcomes of the strategy in
the FY 2024/2025 at the closure of the NDP III and going forward.

The PDM Coordinator explained that the Secretariat together with other stakeholders
was in the process of developing the Monitoring and Evaluation Framework.

Recommendation

The PDM Secretariat should fast track the development of the PDM Result Framework
that will enable the monitoring and evaluation of the strategy.

2.2.3.7 Follow-up on Risks identified in prior year Audit

a) Creation of vulnerability index databases

Paragraph 4.1 of the Parish Development Model Pillar 2 - Infrastructure and economic
services operation Manual, May 2023, provided that the vulnerability index should be
calculated using information obtained on the PDMIS in the area of existing status,
economic activities, security requirements, geographical location, population, existing
similar development programs, among others. Each activity lead Ministry (MoWT, MoLG,
MoWE, MoEMD, ICT&NG, and MoLHUD) would develop its formula for calculating the
Parish Vulnerability Index, which would be submitted to the Pillar Working Group for
approval. The vulnerability index should be utilized at the PDM activity planning stage.

The seven (7) activity lead ministries did not develop the formula to calculate the Parish
vulnerability index. The Parishes that urgently needed social services may not have been
prioritized during pillar activity selection.

Parishes with urgently needed social services (projects) may not be prioritized during
pillar activity selection.
The Accounting Officers attributed this to the incomplete data collection and registration.

Recommendation

The Accounting Officers of MoWT, MoLG, MoWE, MoEMD, MoICT&NG, and MoLHUD
should ensure that the respective vulnerability index formulae are developed and
approved.

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 b) Exclusion of Parish/Wards in MOFPED PDM Plans/Budgets

I noted that MoFPED maintained a parish database of 10,594 as a basis for funding PDM
SACCOs in the FYs 2022/2023 and 2023/24. However, the list of gazetted administrative
units as at June 2022 from the MoLG indicated 10,717 parishes, thus leading to a
variance of 123 excluded parishes.

Omission of gazetted parishes/wards excludes them from benefiting from the PRF
funding which undermines the PDM objective and distorts the planning and budgeting
for the programme. As a result, the PDM objective of eradicating poverty may not be
achieved, thus affecting economic transformation.

The Accounting Officer of MoFPED explained that the PDM budget for the affected
financial years in question, was informed by a schedule of 10,594 gazetted parishes in
176 Local Governments and Kampala Capital City Authority submitted by Ministry of
Local Government (MoLG) therefore this was the official list used by MoFPED for PDM
payments.

The PDM Coordinator explained that MoFPED and MOLG are reconciling the number of
gazetted and operationalized parishes.

Recommendation

The Accounting Officers of MoFPED and MoLG should expedite the reconciliation of the
number of parishes to align the budgeting for PDM SACCOs with the number of gazetted
and operational parishes/wards.

c) Un-funded Parishes

Analysis of MoFPED’s payment file for the FY 2023/24 indicated that UGX.1,058.750Bn
had been paid to a total of 10,589 SACCOs out of the anticipated 10,594, implying that
five (5) parishes with expected PRF of UGX.0.500Bn were not paid as shown in the table
below;

Table 47: Unfunded SACCOs

SN. Name of HLG Parish Name Expected PRF
(UGX ’Mn)
1. 1 Moroto Nadunget 100,000,000
2. 2 Yumbe Kanabu 100,000,000
3. 3 Otuke Okwang Trading Center 100,000,000
4. 4 Kapelebyong Kapelebyong 100,000,000
5. 5 Bushenyi Kitwe 100,000,000
Total 500,000,000

As a result, the objectives of the PDM in the five (5) parishes were not achieved.
MoFPED explained that the Accounting Officers of the affected LGs had confirmed that
the five (5) parishes were not operational.

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Recommendation

The Ministry of Local Government should verify the existence of the five (5) parishes and
if found to be non-existent should notify MoFPED to exclude them from the budget.

d) Delayed Completion of PDM data collection

According to the PDM implementation road map for UBoS, data collection was jointly
launched by Uganda Bureau of Statistics (UBoS) and Ministry of Information
Communication Technology and National Guidance (MOICT& NG) in 181 HLGs on 6th
June 2022 and was expected to be concluded on 31st July 2022. The data collection
exercise was carried out by a mix of parish Chiefs/Town agents and other recruited
officials with good understanding of the community, literate, public servant and
possessing a SMART phone, with UBoS’s role being review of the questionnaires and
advising the MOICT on data collection.

Paragraph 30 of the Circular on the Implementation of the Financial Inclusion Pillar of

the Parish Development Model in the stabilization phase from the PSST dated 8th
January 2024 ref: EDP103/86/02 vol.3 states that Accounting Officers should prioritize
100% data collection/household registration in order to have in place a complete Parish
Register by the end of January 2024.

However, a review of the status of the PDM data collection as reviewed from the PDMIS
National Household Registration Reports as of April 2024 revealed the following
anomalies;

 Household level data collection was at 79.93% progress level.

 Population registered was only at 46.30% progress level.

Details are in the table below;

Table 48: PDM Data collection and Registration

Details Expected Actual Number Percentage Covered
Number %
Number of Households Registered 9,800,000 7,832,965 79.93
Total Population Registered 48,931,207 22,654,113 46.30
Number of Villages Profiled 71,572 8,216 11.48
Source: Analysis of data from PDMIS Registration module

This data should have been the basis upon which the population would be profiled to
identify qualifying beneficiaries, as well as facilitate periodic reviews and impact
assessments. It should be noted that the criteria/algorithm for identifying Subsistence
Households was suspended and development of the vulnerability indices was not carried
out due to lack of appropriate data.

The Accounting Officer of UBoS explained that the budgeted funds for PDM Services had
been reallocated to the National Population and Housing Census Data collection and
analysis. However, the results from the 2024 census had not been integrated into the

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PDMIS. MoFPED explained that a steering committee had been established to review
and guide on the applicability of the 2024 Census results in the PDMIS.

The Accounting Officer of MoICT&NG attributed the delay in completion of data

collection to inadequate funds and lack of gadgets. In addition, the Accounting Officer
explained that the gadgets had since been secured from UBoS after the 2024 census
exercise and that their distribution to parish chiefs was ongoing. The Accounting Officer
of MoICT&NG further explained that the pillar working group technical team including
UBoS had already initiated working on census data sharing to form a complete baseline
for PDM.

Recommendation

The Accounting Officer of UBoS in liaison with the MoICT and the PDM Secretariat
should integrate the results of the census into the PDMIS data collection and registration
module to facilitate profiling and identification of subsistence households.

e) Licensing of PDM SACCOs Under the Microfinance Institutions Money

Lenders Act

A SACCO shall not carry on the business of provision of financial services to its members
unless it is a registered society and licensed under this Act or it is operating on a
probationary period pending registration under the Cooperatives Societies Act or it has
applied for a licence under this Act.

10,589 SACCOs that received PRF funding in the FY 2023/24 were not licensed to take
on the business of lending under Microfinance Institutions money lenders act.

As a result, enforcement of recovery of PRF funds from beneficiaries by the PDM

SACCOs may be legally challenged leading to loss of funds.

The Accounting Officers of LGs explained that the SACCOs were still under the
probationary period and there was delayed release of guidance on licensing of PDM
SACCOs by the PDM Secretariat. However, on verification I noted that the two (02) year
probationary period had elapsed.

Recommendation

The Accounting Officers of LGs to engage the PDM secretariat to ensure that the
SACCOs are registered as per requirements of the cooperative Act.

f) Registration of Enterprise Groups as Community Based Organizations

The PDM Enterprise Groups shall be registered by the Community Development Officers
at the Sub-County, as a Community Based Organization. A copy of the certificate of
Registration of the Enterprise Group (together with details of the members of the Group)
shall be sent to the Chairperson of the PDM SACCO and to the DCO.

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 6,181 Enterprise groups in 460 PDM SACCOs in 18 LGs were not registered by the
Community Development Officers at the Sub County as Community Based Organizations
(CBOs).

Irregularities in registration of Enterprise Groups could lead to loss of PRF due to;
funding illegitimate, Enterprises.

The Accounting Officers attributed this to scepticism by the community that led to non-
responsiveness and inadequate funding for printing certificates.

Recommendations

The Accounting Officers of LGs should ensure that;

 The communities are sensitized on the reality and importance of the programme.
 Adequate budget allocations to facilitate printing of certificates.

Conclusion

The Government envisaged that the adoption of the Parish Development Model (PDM)
strategy would improve service delivery and the incomes and welfare of all Ugandans at
the household level by transforming 39% of households from a subsistence economy to
a money economy.

Whereas a lot has been done to implement the strategy, there are still notable areas
that require improvement and as such Government should consider implementing the
recommendations in this report to address the challenges highlighted above for better
management of the PDM.

2.2.4 Audit of Procurement Management

Introduction

Government spending on procurement of goods and services is substantial. It is

therefore essential that the government procurement is well managed. In this regard,
the Electronic Government Procurement (e-GP) was introduced in 2016, aimed at
automating the public procurement processes to enable the interaction of Government
to business (G2B) services. The Government entities’ procurement processes, in relation
to the purchase of goods, works, services and non-consultancy services are to be
undertaken online.

The e-GP aims to standardize the electronic documents, supplier registration, provide
information on goods and services and encourage online bidding and procurement
management. All these should engender transparency, efficiency, and accountability in
government procurement processes.

The medium-term plan was to roll out e-GP to 200 entities, however, only 36 entities
have been onboarded on the system. The system has also undergone various updates
aimed at serving the stakeholders involved in public procurement better. I undertook a

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review of procurement management in 72 entities, 36 of which were on e-GP and had
planned procurements worth UGX.10.58Tn. The other 36 entities were still on the legacy
system. I noted the following;

Key Findings

i) There has been a delay in rolling out e-GP to government entities. Only 36 (33
MDAs and 3 LGs) out of the planned 200 MDAs/LGs (mediums term planned
entities) have been on boarded to the e-GP system, representing 18%.

I further noted that some of the 36 entities are using the system partially due to
the incomplete development of the system. Consequently, some procurement
activities are done outside the system, thereby limiting the transparency the
system was acquired to achieve.

As technology continues to evolve, the risk of the current e-GP system becoming
obsolete increases before other entities are onboarded. The slow implementation
negatively impacts on the intended service delivery and undermines the
attainment of the intended benefits, including enhanced transparency, efficiency
and cost savings.
The Accounting Officer explained that the slow rate of roll out of the system was
initially due to unjustified high costs demanded by the vendor for change
requests from Government. He indicated that a new vendor was sourced for
system development and enhancement in June 2020 with delivery schedules. He
further added that the development contract with the new vendor expired on 4th
December 2024 and alternative options for system development, enhancement
and roll out were being discussed by Management with a new roll out date of
July 1, 2025.

ii) Out of 72 entities, 11 (15%) undertook sixty-three (63) unplanned procurements

worth UGX.59.02Bn. There is a risk of such entities exceeding their procurement
budgets, potentially leading to domestic arrears. This was caused by poor
planning and budgeting.

The Accounting Officers explained that the procurements were initiated in prior
periods and completed in the current year and thus not included in the current
year’s plans.

iii) I noted the splitting of nineteen (19) procurements worth UGX.2.40Bn, without
following the criteria, contrary to Regulation 10 of the PPDA (Rules and Methods
for Procurement of Supplies, Works and Non-Consultancy Services) Regulations,
2023.
This was noted in five (7%) out of 72 sampled entities. Although the practice
reduces reliance on a single provider and may involve various expertise, there is
risk of collusion by suppliers, which undermines fair competition. In addition, the
entities lose out on cost efficiency from bulk buying.

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iv) Irregular initiation of procurements was noted in 8 (11%) entities, where twenty-
one (21) procurements worth UGX.42.79Bn were undertaken. The procurements
lacked requirements such as approval from the Accounting Officer and
confirmation of availability of funds. There is risk of financial over commitment,
which leads to budgetary constraints in future periods thus impacting the
entities’ ability to deliver their mandates.

The Accounting Officers attributed the above to the need to undertake

emergency procurement of critical goods and services.

v) Seventy-nine (79) procurements worth UGX.25.45Bn were undertaken by 13

entities (18%) out of the sampled 72, without obtaining market prices to support
the estimated values of the procurements. This leads to award of contracts at
unreasonable and uneconomical prices.

vi) I noted that 79 procurements worth UGX 1,062.45Bn in fourteen (14) entities
took an average of six (6) months from initiation to final contract signing.
Delayed procurements hinder timely service delivery and increase contract costs
through inflation/fluctuations in prices and/or exchange rates.

The Accounting Officers explained that the delays were due to delayed responses
from various stakeholders during the procurement process.

vii) Ten (10) entities, out of 72 procured 44 contracts worth UGX.47.13Bn without
requiring performance security. This exposes the entities to financial risk, when
contractors fail to fulfill their obligations and there isn’t any recourse to
recovering the funds, leading to projects being delayed or rendered incomplete.

viii) I noted 5 entities that undertook 14 procurement evaluation processes without

following the prescribed evaluation criteria as stipulated in the bidding
documents, contrary to regulation 5(1) for PPDA (Evaluation Regulations), 2023.
These procurements were worth UGX.2.93Bn.

This undermines fair competition, leading to perceptions of bias or favoritism in

contract awards. In addition, it exposes entities to legal challenges from
unsuccessful bidders, administrative reviews leading to delays in contract
implementation and additional costs in the form of legal fees.

Recommendations

i) I advised the Accountant General to expedite the completion of the system

design and development and roll-out the implementation of the e-GP system to
other MDAs/LGs to realise the full potential of electronic procurement in
enhancing government efficiency, transparency, and accountability.

ii) The Accounting Officers should enhance procurement planning processes by

undertaking comprehensive needs assessments to ensure the procurement
activities align with budget allocations. In instances of departure from the

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 procurement plans, the PDEs should review and update the procurement plans
accordingly.

iii) I advised the Accounting Officers to adhere to the regulations on contract

splitting, unless justifiable reasons for are explicitly documented and approved.

iv) I advised the Accounting Officers to ensure the PDEs undertake adequate
procurement planning to avoid the purported emergency procurements. In
addition, the Accounting Officer should strengthen controls on procurement
initiation to enhance adherence to the regulations.

v) I advised the Accounting Officers to ensure market assessments are done before
procurement initiation to avoid overestimation of costs of items/materials, which
potentially lead to overpayments.

vi) I advised the Accounting Officers to streamline the procurement processes and
timely engage the various stakeholders in the procurement process to reduce
delays.

vii) I advised the Accounting Officers in future to ensure that all contractors for
supplies and works that are subject to this requirement, provide performance
security to mitigate financial risks associated with non-performance of contracts.

viii) I advised the Accounting Officers to enforce adherence to the evaluation criteria
in the bidding documents to promote transparency and fairness in the
procurement process which builds trust among bidders and the public.

Conclusion

While the introduction of e-GP represents a significant step toward digitalizing government
procurements, further efforts are required to overcome the existing challenges and roll out the
system's benefits across all government entities to enhance transparency, competitiveness and
accountability in Government procurement processes.

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PART III: VALUE FOR MONEY AND ENGINEERING AUDITS

3.1 Value for Money Audits

During the year, I undertook 29 Value for Money (VFM) audits on a broad range of
Government programs, in fulfilment of my mandate enshrined in Article 163(3) (b) of
the Constitution of the Republic of Uganda 1995 and amplified in Section 21 of the
National Audit Act Cap. 170. The audits were completed, and the detailed individual
reports were issued to respective government entities.

Eight (8) were follow-up on implementation of recommendations of Value for Money

audits undertaken in earlier years, while 21 relate to audits completed during the year.
The summaries below present key findings from the VFM reports;

3.1.1 Implementation of the National ICT Initiatives Support Program by the

Ministry of Information & Communications Technology and National Guidance

Introduction

Information Communication Technology has become a transformative dimension of

service delivery and a key driver of social and economic development. In the National
Development Plan (NDP III), Uganda committed to increasing government services
online to 80% by 2024/25, through an overarching digital Vision for Uganda, whose aim
is to align Information and Communication Technology (ICT) investments in the various
sectors in a manner that will improve the country’s Global ICT indices for purposes of
attracting investors.

Despite Government’s emphasis on local ICT Innovation and commercialisation, Uganda

is still heavily reliant on importation of ICT solutions. This reliance on imported ICT
solutions is not only financially costly but deprives local innovators of the opportunity to
provide locally developed ICT solutions as a means of participating in the country’s
economic development. In 2017, the Government through the Ministry of ICT and
National Guidance embarked on a National ICT Initiatives Support Program (NIISP) to
create an ICT ecosystem which provides local innovators with the necessary financial,
technical and infrastructure resources to incubate, develop and market their products in
Uganda, the East African Region and beyond.

I undertook a Value for Money Audit, to assess the effectiveness of the implementation
of the Program in attaining the objectives and outcomes identified at the start of
implementation.

Key Audit Findings

Audit noted the following achievements by the Ministry of Information and

Communication Technology and National Guidance (MoICT) in implementation of the
National ICT Initiatives Support Program (NIISP);

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(i) A National ICT Innovation Hub was constructed in Nakawa at a cost of
UGX.11.14Bn to provide free office space, internet and technical support
necessary for local ICT innovators to develop their products. The National ICT
Innovation Hub employs 7 staff. The Ministry equally set up regional hubs at
Muni, Soroti and Kabale Universities at a combined cost of UGX.750 Mn to
provide the same services to innovators across the Country.

(ii) An online system for managing applications from innovators and assessing their
applications was developed for enhanced accountability and transparency of the
innovator selection process.

(iii) Seven (7) local innovation hubs namely, Innovation Village, Outbox, Makerere
Innovation and Incubation Centre (MIIC), Techbuzz, Resilient Africa Network,
Hive Colab and CAMTech, were engaged by MoICT as NIISP implementation
partners to provide support to innovators.

(iv) Eight (8) locally developed ICT systems namely; EMIS, E-poster, Electronic
Document Management System, Academic Information Management System
(AIMS), Caucus, Online Business Registration System, Electronic Government
Procurement System and Integrated Health Management Information System
were deployed for use by different MDAs to solve problems related to digitization
of procurement processes, document management, online business registration,
online learning plus student experience management by universities.

Despite the achievements above, the audit identified areas of improvement that need to
be addressed as indicated below;

i) Non-Achievement of program outputs

The Ministry set out to achieve 5 outputs through the program namely;

 To provide systematic and sustainable support to national ICT innovators,

 To establish and operationalize ICT innovation parks,
 To promote ICT products, services and solutions for improved service delivery
using digital marketplaces as part of a wider digital ecosystem,
 To promote local electronics manufacturing and assembly, and
 Program Management.

The Audit established that none (0) was fully attained, four (4) were partially attained
and the promotion of local electronics manufacturing and assembly was not
implemented at all. In addition, the Program targeted to improve Uganda’s global
innovation index ranking from 99th /128 in 2017 to 75th /128 in 2022 and to create 2.3
million jobs, however, by 2023 Global ICT index had declined to 121st/132 countries.
Equally, only 570 out of the targeted 2.3 million new jobs were created.

ii) Lack of an enabling legal environment

The Program lacked the requisite legal framework as the ICT innovation and
manufacturing policy and Program implementation guidelines among other key policy

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tools were not developed. This was because the development of the required legislative
instruments and review of existing laws to foster effective program implementation was
not prioritised.

iii) Non-existent Governance structures

Out of the eight (8) program implementation support committees namely Program
Steering Committee (PSC), Program Management Unit (PMU), Innovation technical
support (Selection) Committee, Monitoring & Evaluation (M&E) committee, Procurement
and contracts committee, Financial and Audit committee, Publicity, Branding, and
Marketing committee and Legal and Intellectual Property Rights (IPR) Committee which
were supposed to form the back bone of the program’s governance structure, only one
(selection committee) was formed.

iv) Limited Support to local innovators

Under the Program, MoICT & NG had a target of supporting 500 local innovators during
the five financial years of Program implementation i.e. 2017/2018 to 2021/2022. Despite
receiving a total of 1,902 applications for financial support from qualifying local
innovators, only 115 innovators (representing 23 percent of the target) were selected to
benefit under the NIISP Program.

v) Development and use of developed innovations/products

Out of a sample of 50 innovators interacted with during the audit, only 45 reached the
development stages of their products. However, of the 45 completed products, only 24
(53 percent) were deployed and being used at the time of audit. Various products were
still under incubation despite the time lag after receipt of funds. There is thus no value
for money obtained from those products. This is attributed to the Ministry’s inability to
connect innovators to the respective MDAs and private players whose input and funding
were crucial to the completion and deployment of their innovations.

vi) Lack of Customization of training and research support to innovators

There was no customisation of research and training support given to innovators directly
by the Ministry and/or through the innovation hubs contrary to implementation
guidelines. Given the unique nature of each innovation, the absence of customised
support undermined the effectiveness of the research and training interventions.

vii) Non-Establishment of ICT parks

The two (2) ICT parks expected to be established under the NIISP Program for a
combined sum of UGX.13.8Bn were not established. Instead, an innovation hub at
Nakawa, with fewer benefits (like facilities and technical support) to innovators than a
park was constructed and equipped at a total cost of UGX.11.145Bn. Three other
regional innovation hubs were equipped under the Program at Kabale, Muni and Soroti
Universities at a combined cost of UGX.750Mn. This was attributed to unrealistic cost
estimations leading to under budgeting for the parks.

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viii) Limited Program monitoring and evaluation

The Ministry of ICT & NG did not conduct Baseline studies to establish the status of five
(5) key Program indicators before Program commencement. In the absence of this
baseline information, there were no yardsticks against which indicator information
obtained from monitoring and evaluation can be evaluated to assess the extent of
achieving of Program objectives.

In addition, only four (4) out of the targeted 28 M&E reports were produced,
representing 14% performance. The produced reports also focused on only 45 out of
the 115 innovators and captured information on only 9 out of the 50 indicators designed
to assess MoICT & NG’s performance under the program.

These anomalies were attributed to the Ministry’s failure to constitute an M&E

committee for the program.

Key Recommendations

I advise the Accounting Officer of MoICT & NG to implement the following

recommendations to enable Government maximise benefits obtained from the Program;

i) Legal environment reviews and reforms

Take part and encourage a government-wide evaluation and development of laws,

regulations and legal tools to enable Government’s prioritization of locally developed ICT
solutions and innovations.

ii) Program funding structure reforms

In a bid to enhance innovator accountability and responsibility for the funds given to
them, the Program should explore the option of funding innovators using grants and
adopt a loan scheme where the funds are advanced as loans which are repayable after a
pre-agreed time period.

Alternatively, to boost funding and increase private sector participation, a guarantee

scheme, where government insures private sector investors who provide funding to
innovators against losses attributable to selected innovations can be explored.

iii) Sustainability assessment and prioritization

Engage developers and innovators whose products could not be sustained beyond the
support received under the Program. The engagement should focus on identifying the
root cause of each innovator’s failure to sustain their innovation beyond the Program
support period and finding practical alternatives and solutions.

iv) Innovator and innovation database creation

Create a database for innovators and innovations that can be made accessible to all
stakeholders for future reference, funding or innovation purchase.

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 v) Post M&E framework

Engage UBOS and other stakeholders for indicator data such as job creation in the ICT
sector and IT products uptake which will be useful in performing a retrospective
evaluation of the Program’s performance over the years of its implementation i.e.
2017/18 to 2021/22.

Overall Audit Conclusion

Despite commendable efforts and achievements registered under the NIISP, there is still
insignificant progress towards creating a systematic and sustainable enabling
environment for: nurturing, promoting and uptake of locally developed ICT innovation
for socio-economic development. Whereas conditions such as the fast-paced
technological evolution, existence of competitive international solutions with wide
integration capabilities and budget cuts are beyond the control of MoICT & NG, the audit
noted inefficiencies in implementation of the NIISP. The Program’s success was
undermined by the non-prioritization of supporting legal and governance structures,
non-implementation of some key planned Program activities, failure to provide
customised non-financial support to innovators plus selective follow up and reporting of
the Program M&E function.

3.1.2 Promotion and uptake of Improved Agricultural Varieties by the Ministry of

Agriculture, Animal Industry and Fisheries

Introduction

The Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) through its variety
release committee has approved and released various improved agricultural
varieties/technologies to the market. In the last three years, 68 plant candidate lines
were submitted to the variety release Committee out of which 48 plant candidate lines
were approved, multiplied and subsequently released to the farmers.4 In addition,
MAAIF developed and piloted the National Food and Agricultural Statistical System
(NFASS) and e-extension systems to track and maintain performance statistics. Further,
98 seed companies were certified to multiply and distribute certified seed, while 833
agro input dealers were licensed to provide inputs to farmers in the last three (3) years
of 2020/2021, 2021/2022 and 2022/2023.

I carried out a Value for Money audit and observed that despite the above
achievements, there were areas that needed attention to promote the uptake of
improved crop varieties/technologies. Below are the key findings and recommendations
for the Government to implement.

Key Audit Findings

(i) Performance reports were manually produced by all the district production
departments. The manual data collection templates were not standardised and

4
Compendium of Technologies developed by NARO 2012-2022

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 interlinked to the National Food and Agricultural Statistical System (NFASS) to
enable real time monitoring and evaluation of improved varieties. Currently, the
Ministry has embarked on piloting the e-extension system in only 74 out of the
135 districts.

(ii) Farmers could not fully adopt the improved seed varieties due to the limited
number of seed breeders and distributors which has resulted in relatively high
price at which the farmers buy the improved varieties. The variance in average
prices between what the farmers were willing to pay and the average market
price of the varieties was more than 50% in 9 of the 15 varieties analysed which
affected uptake of the varieties by the farmers.

(iii) Currently, the Ministry has only 20 substantive inspectors against the ideal
number of 71 superintending over the entire country. This has resulted in the
Ministry delegating enforcement responsibility to the extension workers who are
already inadequate for their function. This has affected the capacity of the
Ministry to undertake regular inspections to ensure that the market is free from
uncertified varieties.

(iv) Sensitization of extension workers by MAAIF to support farmers was last

undertaken in 2018. Similarly, no sensitization of farmers by extension workers
on the improved varieties was undertaken in the previous three (3) year period
hence limiting dissemination of knowledge about the new crop varieties.

(v) The existing institutional coordination frameworks between MAAIF, NARO and
Extension services were not functional to support joint planning for the
promotional activities. This affected the effectiveness of promotional activities.

Key Recommendations

The Accounting Officer is advised to;

i) Fast track the full roll out of the e-extension system which is interlinked to the
NFASS in all the 135 District Local Governments to enable real time monitoring
and evaluation of performance of improved varieties.

ii) Explore options for increasing the number of seed breeders and distributors to
lower the breeding and distribution costs and ultimately the price of the
improved seed.

iii) Engage MoPS to recruit more inspectors and extension workers to address the
current shortage to undertake more seasonal inspections.

iv) Ensure that sensitization is prioritized at planning and budgeting. In addition, the
Ministry should expedite the engagement with NARO and its ZARDIs to
supplement the Ministry’s sensitization activities.

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 v) Enhance and fully operationalize the existing institutional coordination
frameworks which will improve coordination amongst the three (3) key entities.
In addition, NARO should enhance dissemination of information through the
ZARDIs where the interaction between the key stakeholders is coordinated by
extension workers.

Overall Audit Conclusion

The MAIIF, through the Variety Release Committee approved various improved crop
varieties/technologies developed by NARO. Despite the approval and release of
improved varieties, the audit established that largely the measures put in place to
promote the uptake of these crop varieties have not achieved the desired outcome due
to; incomplete and unreliable performance statistics for decision making, relatively high
prices at which the agro-dealers sell seed, inadequate enforcement inspections, limited
sensitization for extension workers and farmers about new crop varieties, ineffective
monitoring and evaluation of performance and inadequate coordination between the key
players responsible for promoting the uptake of improved crop varieties.

The audit has made recommendations which if implemented, will improve the promotion
and uptake of new crop varieties/technologies by farmers.

3.1.3 The Regulation of the Dairy Industry in Uganda by Dairy Development

Authority

Introduction

The Dairy Development Authority (DDA) has undertaken measures to regulate the dairy
industry, which has increased milk production by 37% from 2.81 billion litres in the FY
2020/21, to 3.85 billion litres in the FY 2022/23. In addition, the measures have resulted
in improved domestic consumption from 46 litres to 64 litres per capita, an increase in
the number of registered dairy processors from 130 in 2022, to 160 in 2024, an increase
in number of milk collection centres from 483 in year 2022, to 729 in the year 2023,
while milk coolers have increased over time from 355 with a capacity of 1.5 million litres
in 2016, to 791 in 2023 with a capacity of 2.8 million litres.

Furthermore, there has been improved compliance of milk and milk products to
international standards which has increased the export value from USD.102.6Mn in
2021/22, to USD.264.5Mn in 2022/23.

Despite these achievements, some gaps were identified during the audit as detailed
below;

Key Audit Findings

i) The current regulations being used by DDA are inadequate to effectively regulate
the dairy industry. The regulations were last updated in 2015, which is nine (9)
years ago. The draft revised regulations were still with the MoJCA and MAAIF,
awaiting completion of the RAPEX process.

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ii) DDA lacked adequate statistics on licenses withdrawn, premises closed, and dairy
products destroyed/recalled due to absence of a comprehensive system at the
regional offices to enable capturing and consolidation of the performance
statistics. This has affected planning and performance assessment for regulatory
activities.

iii) 60 (28%) dairy handlers inspected were operating without licenses due to limited
inspection coverage by the 19 out of the ideal 28 DDA inspectors. These
handlers were operating from unhygienic places and dealing in unprocessed milk
which exposes the public to health risks.

iv) 92 (44%) of the 211 registered dairy handlers inspected were not adhering to
the DDA set standards of hygiene. The handlers were using non-food grade
materials, operating in unhygienic conditions. This further exposes the public to
the risk of consuming unhealthy and unsafe dairy products.

v) The current enforcements, market surveillance and follow-up inspections were

inadequate to cover production and handling of the milk before it is delivered to
the collection centres because DDA relies on the services of the Directorate of
Animal Production under MAAIF which is not undertaken.

vi) 66 (76%) out of 87 recommendations by DDA inspectors were not followed by

DDA due to limited staff and the high staff turnover in anticipation of RAPEX.
This negates the purpose for conducting the inspections.

vii) Two (2) out of six (6) milk sheds did not have dairy laboratories. The four (4)
operational laboratories were not adequately equipped. In addition, the National
Dairy Laboratory was not accredited by UNBS. This influences the quality of milk
and milk products.

viii) Dairy products for 27 (69%) out of 39 sampled processors were not certified by
UNBS due to the lengthy certification process. Operating without UNBS
certification may result in public health risks.

Key Recommendations

The Accounting Officer is advised to;

i) Follow-up with MoJCA and MAAIF with a view of having the draft regulations
approved without further delay.

ii) Improve the quality of the data capture system at the regional offices to ensure
that performance statistics are collected and consolidated in a timely manner.

iii) Enhance the sensitisation of the diary handlers on the benefits of registration
and licencing going forward as well as liaising with MoFPED and MoPs to address
the challenges of old fleet and understaffing.

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 iv) Enhance the quality of inspections undertaken by its inspectors to ensure that
only dairy handlers that meet the criteria are registered.

v) Engage with the Directorate of Animal Production and come up with a

mechanism through which on farm activities are inspected.

vi) Liaise with MoPs and ensure that the vacant positions for inspectors are filled
and replacements for the staff who left the organisation.

vii) Prioritise the equipping of the four (4) laboratories, putting in place laboratories
in the two (2) milk sheds without laboratories.

viii) Enhance the co-ordination between DDA and UNBS to ensure that licensed dairy
handlers obtain certification in a timely manner.

Overall Audit Conclusion

The Dairy Development Authority plays a crucial role in overseeing and regulating the
dairy industry. Whereas the Authority has made significant efforts in regulating the
industry, there are areas that require attention if the regulatory function is to be more
effective. These areas include gaps in the existing legal framework, non-registration of
all dairy handlers, limited enforcements and surveillance and inadequate follow-up on
implementation of inspection recommendations among others. These challenges, if not
addressed, can hinder the full realization of the regulatory objectives set by the DDA.

The audit has made recommendations which, if implemented, will improve the
regulatory effectiveness of DDA in the dairy sector.

3.1.4 Supervision of District Service Commissions by the Public Service Commission

Introduction

The Public Service Commission (PSC) is mandated to supervise the operations of the
District Service Commissions (DSCs) to ensure that they execute their mandate in an
efficient and effective manner. The department of guidance and monitoring at the PSC,
which is responsible for the supervision of the DSCs, is 96% staffed and has been fully
funded. In addition, the Commission had received, considered and taken a decision
(approve or reject) on all the applications for approval of members of DSCs and as such
the Commission did not have any backlogs. PSC had also planned to undertake induction
trainings for 600 members, but inducted 875 members, representing a performance of
146%.

I carried out a Value for Money audit on the supervision by PSC of the DSCs and
observed that despite the above achievements, there were areas that needed
improvement to enhance the supervision of DSCs by the PSC. Below are the key findings
and recommendations for government to consider;

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Key Audit Findings

i) Out of the 135 districts, 130 (representing 98%) had District Service
Commissions with the required quorum of between three (3) to five (5) members
to conduct business. Five (5) districts had less than the required quorum due to
delays to nominate members to replace those who died or whose contracts had
expired. This affected the performance of these DSCs.

ii) Five (5) DSCs had backlogs due to the insufficient number of sittings, failure by
Chief Administrative Officers (CAOs) to make submissions for consideration by
the DSCs in time and the low local revenue from which the activities of DSCs are
funded. As a result, UGX.30.6Bn meant for recruitments, confirmations and
promotions in the various districts was returned to the consolidated fund, over
the four (4) year period.

iii) The PSC did not undertake needs assessment in all DSCs before conducting
trainings because the activity was not prioritised in the annual work plans and
budgets. As a result, the trainings were not informed by the capacity gaps and
training needs of the DSC members.

iv) Nine (9) out of the 135 DSCs were not inducted at all in the last four (4) years
which affected the effectiveness in executing their mandates. In addition, PSC
undertook refresher trainings for only 261 members out of the planned 285 due
to the high turnover of the DSC secretaries since the majority are appointed in
acting capacity.

v) The PSC undertook only four (4) stakeholder engagements out of the planned
seven (7) for the period under review due to failure to jointly undertake such
related engagements with other government entities.

vi) Performance assessments were undertaken by PSC in only 85 (33%) out of the
planned 260 while no performance assessment was undertaken in 59 districts in
the four (4) years under review. Further, although the existing e-recruitment
system can accommodate a module through which performance assessment
processes can be automated, the assessment tool used by the Commission was
manual which affected the ease with which performance information can be
accessed and analysed.

vii) Only 62 (46%) out of 135 DSCs were monitored by the PSC in the period under
review, due to an ineffective monitoring and evaluation unit, to routinely monitor
and identify challenges faced by DSCs.

viii) 75% of the sampled appeals took more than six (6) months to be disposed of,
due to delays in obtaining legal guidance from Solicitor General and delays by
the CAOs to provide additional information to support the process of appeals
handling using the existing manual appeals handling system. This denied the
applicants timely redress of their complaints and resulted in loss of trust in the
process.

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ix) Despite the existence of the Service Commission’s forum, there was minimal
effort by the three (3) Commissions (PSC, HSC, and ESC) to handle cross cutting
supervisory activities due to inactivity of the forum. This resulted in duplication of
activities and sometimes issuance of contradictory guidelines to DSCs.

Key Audit Recommendations

I advised the Accounting Officer to;

i) Follow up with all the DSCs that had less than five (5) members and ensure that
they are fully constituted with the mandatory five (5) members to be able to
conduct business.

ii) Engage MoFPED to identify an alternative funding mechanism for DSC activities
to address the funding shortfalls rather than relying on the uncertain and low
local revenues collected by the districts.

iii) Ensure that going forward, detailed needs assessments are prioritised in the
Commission’s work plans and budgets and once funds are released, this activity
should be undertaken.

iv) Ensure that going forward, regional inductions, refresher trainings and
mentorships are prioritised in the Commission’s work plans and budgets such
that once resources are provided, this activity is undertaken in a timely manner.
In addition, the PSC should engage Ministry of Local Government and Districts to
explore the option of substantively appointing secretaries of the DSCs to address
the challenge of the high turnover.

v) Explore the option of having joint stakeholder engagements with Ministry of

Local Government and Ministry of Finance, Planning and Economic Development,
which hold regular and routine regional engagements/workshops with the same
stakeholders to leverage on the attendance of the targeted stakeholders.

vi) Explore adding a module on the e-recruitment IT system, to facilitate automation

of all processes of guidance and monitoring department including the
performance assessment of the DSCs.

vii) Prioritise constituting and involving the monitoring and evaluation unit in the
work plans and budgets going forward such that once funds are released, this
activity is implemented.

viii) Automate the appeals handling process and ensure that the system does not
allow submission of appeals without complete supporting documents. In
addition, the Accounting Officer should explore the option of hiring an internal
legal officer to handle legal matters arising out of the processing and disposal of
appeals.

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 ix) Engage the ESC and HSC to revive the Service Commission’s forum to enhance
coordination among the three (3) Commissions.

Overall Audit Conclusion

The PSC has endeavored to supervise the DSCs and ensure that they execute their
mandate. The audit has revealed areas that require attention from the PSC to improve
the performance of the DSCs. These areas, if addressed, will improve the supervision of
DSCs by PSC, leading to enhanced local governance and administrative efficiency.

3.1.5 Effectiveness of the Implementation of the Investing in Forests and Protected

Areas for Climate-Smart Development Project by the Ministry of Water and
Environment, National Forestry Authority and Uganda Wildlife Authority

Introduction

Uganda's forests, covering approximately 13% of the country's land area, are vital
ecosystems that support diverse wildlife and provide essential services for local
communities. The forestry sector has been crucial for Uganda's economy, contributing
3.5% to the Gross Domestic Product (GDP) annually between 2016 and 2019, while also
providing energy for 88% of the population and supporting 1 million jobs. Recognizing
the importance of sustainable forest management, Uganda has committed to increasing
its forest cover from 11.5% in 2021 to 21% by 2030 as part of its updated Nationally
Determined Contributions under the Paris Agreement. In addition, a wide range of
tourism products including forest hikes, mountain climbing, gorilla tracking, and bird
watching among others are offered in wild reserves and National Parks across the
country.

The "Investing in Forests and Protected Areas for Climate-Smart Development" (IFPA-
CD) project, a 6-year project (2020 to 30th June 2026) with total funding of United
States Dollar (USD 148.2Mn) from the World Bank and USD 30Mn from the Ugandan
government, aims to enhance forest management and conservation efforts. This
initiative is critical given the alarming rate of deforestation in Uganda, which has seen
forest cover decline from 24% in 1990 to just 9% by 2018 due to population growth,
urbanization, and increased demand for biomass fuel threatening biodiversity and
climate resilience.

The project has four components, namely (i)Improved management of protected areas,
(ii) Increased revenues and jobs from forests and wildlife protected areas, (iii) Enhanced
tree cover in refugee-hosting areas, and (iv) Effective project management and
monitoring. These are implemented by the Ministry of Water and Environment, (MWE)
National Forestry Authority (NFA) and Uganda Wildlife Authority (UWA).

Implementation of the project has encountered significant delays, starting from its
signing by the World Bank on 20th March 2020, to its official launch in March 2022.
Procurement delays have further affected many project activities due to the back-and-
forth reviews between the World Bank and project implementing agencies. Additionally,
the underutilization of funds raises concerns regarding the likelihood of meeting project

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objectives within the remaining timeframe of one and a half years, as the project is set
to conclude by 30th June 2026.

Key Audit Findings

Status of implementation

To achieve the project's goal of enhancing the sustainable management of forests and
protected areas while increasing community benefits from these resources in targeted
landscapes, the following outcomes have been accomplished;

a) Infrastructure and equipment

UWA Constructed of 27 km of electric fencing (18 km in Queen Elizabeth National Park,

and 9 km in Murchison Falls National Park, built of a 10 km buffalo wall at Gisozi,
Gitenderi, and Rukongi sites along the boundary of Mgahinga National Park as well as
employing 340 community members. On the other hand, NFA procured a bulldozer and
a tipper lorry as well as 28 motorcycles to enhance monitoring of Central Forest
Reserves.

b) Community Involvement

Over 4,000 energy-saving stoves and 370 rainwater tanks were provided, benefiting
communities around protected areas by UWA, and procurement of 5,940 beehives with
essential equipment to support livelihoods of people surrounding forest reserves by NFA.

c) Forest Restoration

NFA restored an area of 1,745 hectares in Bugoma, Kagombe and Rwensambya Central
Forest reserves as well as enriching 3,284 hectares of forest land with 982,878 seedlings
since inception, and demarcation of 106.48 km of boundaries in Central Forest Reserves
to enhance forest protection.

Despite the reported progress above, implementation challenges were noted. These
included;

i) Funding and Absorption

The IFPA-CD project has encountered significant challenges related to fund absorption,
with only 33.9% of the disbursed USD 43.5 million utilized as of September 30, 2024.
The underutilization primarily stems from delays in procurement approvals and
prolonged review processes between implementing agencies and the World Bank.
Component 3, aimed at improving landscape management in refugee-hosting areas,
exhibited the least absorption at just 1.4%, while Component 4, focusing on project
management, had the highest absorption rate of 69.6%.

Activities such as Construction and renovation of staff houses, design and construction
of jetty docking area Eco gates, construction of a picnic site in Bwindi Impenetrable

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National Park, Agroforestry supply, and establishment of fuel woodlots in refugee host
districts, among others are pending implementation.

ii) Activity implementation delays

Several planned activities under Component 1 have not yet been implemented due to
various delays. For instance, the construction of staff housing for both the Uganda
Wildlife Authority (UWA) and National Forestry Authority (NFA) has faced nine-month
delays awaiting approvals from necessary regulatory bodies. Additionally, strategies for
managing invasive species have been significantly delayed by over 25 months due to
over quotation of costs by the contractor. These delays not only affect fund absorption
but also pose a risk to achievement of project objectives.

iii) Community Engagement and Support Limitations

While some community engagement activities such as reducing human-wildlife conflicts

through infrastructure improvements have been successful, beneficiary feedback
indicates dissatisfaction with the level of support provided. Water harvesting tanks
often serve multiple households, leading to rapid depletion during dry periods, and
energy-efficient stoves require longer cooking times than traditional methods.
Furthermore, manual invasive species removal is costly and unsustainable in the long
term. To enhance project outcomes, it is essential to create channels for beneficiary
feedback and provide advanced tools for invasive species management, ensuring that
community needs are adequately addressed, and sustainability is prioritized.

iv) Monitoring and Reporting

Effective monitoring structures were in place, including quarterly reporting and a mid-
term review. However, delays in data consolidation, updating of the Results Framework
and submission impeded timely decision-making.

Key Recommendations

i) I advised the Accounting Officer of the Ministry of Water and Environment in

collaboration with other implementing agencies of National Forestry Authority
and Uganda Wildlife Authority to implement the following measures to enable
attainment of benefits from implementation of the IFPA-CD project.

ii) Enhance Monthly Progress Reviews to facilitate close monitoring of fund

utilization and ensure timely completion of project activities.

iii) Streamline procurement processes and implement strategies for quicker

approvals, including pre-emptive consultations with necessary regulatory bodies
such as National Environmental Authority (NEMA) and the Solicitor General's
office, to minimise procurement delays.

iv) Develop a strategy to fast-track completion of delayed activities, such as the

establishment of agroforestry systems, fuel woodlots, and community forest

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 regulations. Prioritize activities that have the most significant impact on reducing
deforestation and supporting community livelihoods.

v) Strengthen community engagement for beneficiaries to provide feedback on

project activities, allowing for continuous improvement based on community
experiences.

vi) Enhance Follow-Up Mechanisms through the development and enforcement of

systematic follow-up procedures to address recommendations from monitoring
reports and World Bank missions promptly.

Overall Audit Conclusion

While the Investing in Forests and Protected Areas for Climate Smart
Development project shows promise in enhancing forest management, increasing
economic benefits from tourism, and improving community engagement, significant
challenges remain especially in the form of procurement delays, low community needs
assessment and feedback, coordination and routine monitoring of the project.
Addressing these issues through adaptive management strategies will be crucial for
achieving the project's long-term objectives. Continued investment in monitoring,
stakeholder and community engagement, and resource allocation will be necessary to
maximize the project's impact on Uganda's forest ecosystems and local communities.

3.1.6 Management of Work Permit Processes by the Directorate of Citizenship and

Immigration Control

Introduction

A work permit is a legal document issued to foreigners who seek to invest, carry on
business, work and reside in the host country. Worldwide countries regulate foreign
workers through the issuance of work permits to control the entry, stay and exit of
foreign workers. If unregulated, migrant labour creates competition for the local work
force for the few available jobs. In Uganda, the regulation of migrant labour is through
issuance and monitoring of work-permits by the Directorate of Citizenship and
Immigration Control (DCIC).

Despite all the controls put in place by DCIC to issue and monitor work permits, several
migrant workers are in Uganda illegally and doing jobs which should be reserved for
locals, especially in the informal sector, where jobs do not require professional
experience and qualifications. As a result, local businessmen have expressed their
displeasure about the existence to illegal foreigners. In 2011, there was a strike by
traders, under Kampala City Traders Association, expressing their disappointment at
foreigners carrying out petty trades in Uganda.

In the last two financial years, there has been a notable increase in the number of work
permits issued by the Directorate from 11,229 in FY 2020/21 to 14,185 in FY 2021/22,
which is an increase of 26% in a period of one year. Despite this, there was no evidence
of a corresponding increase in resources for the monitoring of expatriates. It is against

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this background that the Office of the Auditor General decided to undertake a value for
money study on the management of work permits by DCIC.

I observed that DCIC undertook various interventions to improve the management of

work permits and achieved notable milestones and effective performance. These include
amending the Uganda Citizenship and Immigration Control Act to align with the evolving
needs of the Directorate, engaging with stakeholders, decentralisation of immigration
services to regional offices, and investment in information systems such as the e-
immigration system, Migration Information and Data Analysis System (MIDAS), and
Personal Identification Secure Comparison and Evaluation System (PISCES) to simplify
the application, processing, issuance, and monitoring of work permits. Furthermore,
DCIC has recruited additional staff to enhance service delivery and ensure more efficient
and accessible work permit management. Despite the notable performance, the
following were observed;

Key Audit Findings

i) DCIC does not follow-up to confirm whether employers appoint local

counterparts to be trained, and neither does the Directorate assess whether
skilled foreign nationals train and mentor Ugandans. This has affected the
transfer of skills to Ugandans.

ii) I noted several instances in the last three years where foreign nationals did not
leave the country following the expiry of their work permits. For instance, 6,035
work permits expired and were cancelled, 5,048 (85%) of these expired and
cancelled work permits did not leave the country. The continued stay of foreign
nationals with expired or cancelled permits has resulted in illegal employment of
foreign nationals and loss of revenue.

iii) Whereas 102 foreign nationals were fined for overstaying their work permits in
the period from July 2019 to June 2023, their respective employers were not
fined for knowingly employing foreign nationals without valid entry permits. As a
result, fines estimated at UGX.306Mn were not collected, resulting in loss of
revenue to the Government.

iv) The Directorate still faces some challenges while using the e-Immigration
system, including limited coverage of the system, absence of key roles, failure to
provide real-time notifications on over stayers, delays to migrate legacy data,
and limited reporting capabilities. Without implementing the system's full
functionality, DCIC may not realise value for money from the investment in the
system over its lifetime.

v) The enforcement efforts of compliance with the class of permit issued were
inadequate. For instance, a review of six (6) monthly investigation reports
revealed 11 cases of non-compliance to the class of permit issued to the foreign
workers. As a result, many work permit holders are employed in jobs outside
their class of work permits, which has contributed to unemployment in some job
categories where Ugandans are qualified to work.

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vi) There are several foreign nationals working or running private businesses in
Uganda without valid work-permits. DCIC identifies foreign nationals working
without permits and over the three years, the Directorate has deported 2,403
foreigners working without valid permits and regularized 1,969 others. However,
this makes up a small proportion of the total number of foreign nationals
irregularly working in Uganda. The failure to fully identify and apprehend
immigrants working without work permits has contributed to increasing
unemployment among citizens.

vii) Only 30% of the applications for work-permits were processed within the
required time of seven (7) days during the period from 01st July 2018 to 30th
June 2023. It took 24 days to process and reach a final decision to approve or
reject an application. The delays in processing work permits have resulted in
delays in bringing in the required skills and expertise from foreign nationals,
which negatively affects business investments and contributes to the irregular
employment of foreign nationals.

viii) DCIC lacks a comprehensive policy framework to guide the employment of

foreign nationals in Uganda, which has affected efforts to combat the irregular
employment of foreign nationals.

ix) The draft migration policy under development had a number of gaps. For
instance, it lacks a clear definition of a skilled worker, quotas to show the
number of foreign nationals to be issued with permits per category of
employment, and job categories protected in the policy for the citizens, among
others. This has affected efforts to manage work permits and attain lasting
benefits from skilled foreign nationals.

x) There was inadequate coordination among some key stakeholders in the

management of work-permits. For instance, there were no joint-risk analyses
and enforcement by the various stakeholders, among others. This has resulted in
the failure to effectively control the number and category of jobs that foreigners
hold, limit the number of renewals and enforce the exit of foreigners following
expiry of their permits.

Key Recommendations

The following are my key recommendations;

i) Management should develop mechanisms of monitoring and ensuring skills

transfer from foreign nationals to local counterparts.

ii) DCIC should enhance its capacity to enforce the timely exit of foreign nationals
by increasing staffing, training and other logistical resources for the relevant
departments.

iii) DCIC should fast track the interface between the enforcement and permit
issuance functions to enable simultaneous fining of the employees and
employers of foreign nationals that have overstayed their work permits.

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 iv) DCIC should implement system enhancements to ensure that all the additional
functionality is used without further delays.

v) Fast track the integration process of the e-immigration system and other
stakeholder systems to provide alerts on change of permit class so as to enable
the quick identification of immigrants who violate their work-permits.

vi) Management should put in place mechanisms to systematically capture and

record information of all foreign nationals resident in Uganda and empower
Uganda’s foreign missions to screen and issue G2-class work-permits to foreign
nationals intending to work in Uganda before their arrival in the country.

vii) Management should automate the permit processing system to send alerts to
applicants when queries have been raised or applications are deferred, thereby
minimizing the delays taken to respond.

viii) DCIC should ensure that a policy framework is quickly developed and approved
for implementation.

ix) The Directorate should further improve the draft immigration policy by consulting
widely with all stakeholders to ensure that all key interests are considered and
addressed by this policy.

x) The Directorate should enhance its coordination mechanism with the various
stakeholders and should include a provision for measuring the effectiveness of
such cooperation using Key Performance Indicators.

Overall Conclusion

Although DCIC has undertaken steps to enhance the effectiveness of management of

work permits, there is still need to address the weaknesses identified in the current
processes if the overall objective of the management of work permits is to be achieved.
DCIC needs to improve its automation of both regional offices and the gazetted border
points, monitor the transfer of skills, enforce exit upon expiry of work permits, reduce
revenue leakages, enforce compliance of permit class and minimize entry of illegal
migrants into the country.

3.1.7 Supervision of Districts by the Ministry of Local Government

Introduction

The Ministry of Local Government (MoLG) is mandated under section 105 of the Local
Governments Act Cap 138 to guide, inspect, monitor and coordinate local governments
to ensure compliance with the provision of the laws. The Ministry shoulders this
responsibility through direct supervision of local government and coordination of the
technical support activities offered by line ministries to ensure the implementation of
national policies and adherence to performance standards in each local government.

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This includes monitoring performance and harmonising and coordinating with different
departments within the local government structure. My preliminary assessment of the
performance of MoLG in executing this mandate revealed that in the last three years,
some achievements have been made, which include developing an inspection checklist
which was approved by the ministry to guide inspections and compiling a repository of
cross-cutting findings regarding supervision of districts. Despite these achievements, the
following were observed;

Key Audit Findings

i) The Ministry did not undertake a comprehensive needs assessment before

undertaking training in the three-year period under reviewed.

ii) Out of the 5,054 elected leaders in 135 districts, only 2,250 (44%) leaders were
inducted despite receiving all the budgeted funds.

iii) The Ministry did not maintain a comprehensive database on the trainings
undertaken. I therefore carried out field inspection and noted that training was
conducted in only 14 of the 30 districts sampled. The training was majorly
carried out in IT systems initiated by MoFPED.

iv) No training was undertaken in emerging areas such as disaster management,

climate change, and refugee management, which are the most pertinent areas in
Local Governments.

v) MoLG is not actively involved in the local government performance assessment

process undertaken by OPM. The Ministry’s role is limited to performance
improvement planning and follow up on the results of the national assessments.

vi) Out of the expected 58 support visits to the 20 worst performing districts, the
Ministry only conducted 25 visits. In addition, MoLG made 56 support visits to
districts that were not among the worst performing which implies that the results
of the LGPA do not inform the MoLGs support supervision.

vii) Out of 369 planned inspections, 233 (73%) were not undertaken. Out of the 136
(27%) inspections that were undertaken, only 22 inspection reports were
prepared, which affects the effectiveness of the supervision.

viii) The Ministry does not undertake adequate follow up of the extent to which
inspection recommendations were implemented due to more supervisors than
inspectors to conduct the inspection with a ratio of 4 supervisors to one
inspector.

ix) Review of the inspection reports revealed that the inspectors did not assess all
the required parameters provided in the approved checklist, which compromises
the quality of inspections and their impact on service delivery.

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 x) There is currently no coordination framework through which MoLG and other
MDAs, such as OPM, MoPs, and MoWE handle related issues affecting service
delivery at the districts.

Key recommendations

The following are my key recommendations;

i) Ensure that going forward, detailed training needs assessments are planned for
in the Ministry’s work plans and once funds are released, the activity is
undertaken.

ii) Ensure that induction is done for all newly elected political leaders and the funds
provided for induction are not re-purposed for other activities.

iii) Ensure that the training work plans and activities are aligned to the capacity
building policy. Further, the Accounting Officer should ensure that funds provided
for training are not repurposed to other ministry activities.

iv) Play a more active role in the entire performance assessment process of local
government. In addition, MoLG should engage OPM to have the assessment
criteria and methodology reviewed and improved to make it more acceptable to
all parties involved.

v) Ensure that the districts selected for support supervision are informed by the
results of the national assessment. In addition, follow-up should be undertaken
on the recommendations from the support supervisions.

vi) Ensure that funds provided for inspection are not repurposed to other Ministry
activities. In addition, the Ministry should explore the option of inspecting
districts on a rotation basis and revisiting the inspection staff structure to have
more inspectors doing the inspection than supervisors.

vii) Ensure that the inspections cover all the areas provided for in the approved
inspection checklist.

viii) Put in place a functional and robust institutional framework through which MoLG
coordinates with other stakeholders involved in supervision of districts. In
addition, MoLG should automate the supervision processes to enhance the
coordination with other players.

3.1.8 Evaluation of Implementation of the Health Facilities Programme under the

Uganda Intergovernmental Fiscal Transfer Programme in the Health Sector,
implemented by Ministry of Health

Introduction

The Uganda Intergovernmental Fiscal Transfer (UgIFT) Program for Results is a

Government of Uganda (GoU) Program financed by the World Bank to support the

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implementation of the Intergovernmental Fiscal Transfer Reform Program. The original
UgIFT was approved by the World Bank Board on 27th June 2017 and declared effective
on 29th May 2019 through Program for Results (PforR) instrument with an overall
allocation of credit of SDR 145.9 Million (USD 200 million equivalent) from the
International Development Association (IDA).

The main objective of audit was to assess the performance of the UgIFT program
interventions in improving access to and quality of health services, as well as
strengthening health system capacity in underserved local governments. The
interventions included upgrade of HC IIs to HC III and construction of new HC IIIs,
operationalization of these HC IIIs and transitioning of refugee serving health center
IIIs.

Key Findings

The program has achieved significant progress, completing 247 health facilities (65%) of
planned construction projects. Of these, 231 Health facilities (97%) are now operational.
In addition, a total of 1,949 staff were recruited for the newly constructed and upgraded
facilities against a target of 1,260, and an additional 7,755 health workers for the least-
staffed local governments against a target of 5,273.

There were however noted areas of improvement in the program implementation

including:

i) As of November 2024, out of the revised plan for 340 HC II upgrades, 242
(72%) were completed, 79 (23%) were ongoing, and 15 (5%) had stalled, while
of the 31 planned new HC IIIs, 5 (16%) were completed, 25 (81%) were
ongoing, and 1 (3%) had stalled; delays across projects ranged from 23 to 77
months.

ii) From the UgiFT monitoring reports out of the 247 completed HC IIIs, 231 (94%)
were operational; however, field inspections and interviews at 54 selected HC
IIIs revealed that only 22 (41%) were operational while 32 (59%) were non-
operational. Additionally, from the reports, 212 (86%) had received cold chain
equipment, 208 (84%) maternity equipment, and 188 (76%) laboratory
equipment. Inspections at 46 completed HC IIIs found six facilities under-
equipped, lacking vital items like centrifuges, refrigerators, and microscopes.

iii) 229 (93%) out of 247 completed health facilities had been reported to have
received drug kits aligned with the requirements for a Health Centre III.
Inspections revealed that 6 out of 46 facilities (13%) are still receiving drug kits
intended for Health Centre IIs (HC IIs) instead of Health Centre IIIs (HC IIIs).

iv) From the report, of the 250 HC IIs that were upgraded to HC IIIs between FY
2018/19 and 2021/22, 231 had a reliable power supply. Inspections and
interviews with Health facility in-charges in 46 completed Health Centre IIIs
visited indicated that only 30 (63%) had a reliable power source. The remaining

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 17 (36%) were experiencing challenges with the reliability of power connections
especially those using solar.

v) Sustainability of health infrastructure remains a challenge, with only 136 of the

250 health facilities constructed between 2018/19 and 2020/21 having Operation
and Maintenance (O&M) plans, and inspections of 47 completed facilities
revealing the absence of dedicated O&M budgets; additionally, 12 of the 46
completed HC IIIs visited were critically understaffed, with either only one
midwife, one clinical officer, or none at all.

vi) Of the 13 refugee-hosting districts visited, only 5 DHOs (Yumbe, Obongi,

Adjumani, Terego, and Kikuube) were aware of the UgIFT intervention to
transition humanitarian partner-run Health Centre IIIs, but none had prepared
an integrated refugee response plan; by October 2024, 120 health workers had
been recruited for 17 transitioned facilities in Yumbe, Obongi, Adjumani, and
Terego, while no recruitment had occurred in the remaining 9 districts.

vii) The HMIS data for the 247 completed facilities indicates a positive trend over the
three years (2021/22, 2022/23, and 2023/24) in key health service delivery
outcomes, including an increase in deliveries, live births, antenatal care visits,
and immunizations.

Recommendations

I advised the Accounting Officer of MoH to:

i) Strengthen oversight mechanisms by assigning dedicated monitoring teams to

track construction progress, enforce performance contracts with contractors, and
address delays by promptly replacing non-performing contractors.

ii) Coordinated with the Ministry of Energy and Mineral development as well as the
National Water for Sewerage Corporation to ensure the electricity and water
connections of completed facilities are established.

iii) Follow up with National Medical Stores to upgrade the essential medicines
package of the completed facilities to that of a HC III to ensure quality of service
delivery at these facilities.

iv) Set up a mechanism for monitoring the implementation of the operation and
maintenance plans for health infrastructure to preserve the sustainability of this
significant investment in the health sector.
v) Establish a monitoring framework to track the progress of recruitment and
deployment for the upgraded and newly constructed HC IIIs across the local
governments.

vi) Ensure that the CAOs and DHOs of the refugee-hosting districts are sensitised
and engaged in preparation and execution of the health transition plans to
ensure a smooth transition process.

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 Overall Audit Conclusion

The UgIFT program in the Health Sector has made notable progress in improving access
to healthcare services in underserved and refugee-hosting districts. These efforts have
positively impacted maternal and child health services, as evidenced by increased
deliveries, antenatal visits, and immunization rates. This positive trend implies that the
establishment of these health centre IIIs has increased access to and utilisation of
health services by the surrounding communities. However, the quality of health care is
compromised by non-availability of medical equipment, unreliable utilities and the
staffing gaps at these health facilities. Addressing these staffing and infrastructure gaps
will be critical to ensuring that the program not only expands access but also supports
quality of care at the facilities.

3.1.9 Evaluation of the Seed School Programme under the Uganda

Intergovernmental Fiscal Transfer Program in the Education Sector,
implemented by Ministry of Education and Sports
Introduction

The Government of Uganda (GoU), in collaboration with the World Bank (WB), has been
implementing the Uganda Intergovernmental Fiscal Transfer (UgIFT) Program for
Results to strengthen local government service delivery. Within the education sector,
UgIFT focused on (i) constructing and operationalizing seed secondary schools in
underserved sub-counties, and (ii) transitioning selected refugee-serving primary schools
into government management to improve education quality and equity.

The program reversed the erosion of fiscal transfers to local governments, expanded
secondary access, and enhanced the equity of funding. However, it continued to face
gaps in infrastructure, staffing, oversight, and coordination, thereby affecting the timely
and effective delivery of project outcomes.

A notable achievement arising from implementation of the programme since 2023 is that
both boys and girls experienced an increase in enrolment, reflecting improved access to
secondary education facilitated by the establishment of seed secondary schools.
Enrolment grew by 47.5% in 2023 and a further 18.5% in 2024, reflecting the success
of seed schools in improving accessibility for learners within their communities. Notably,
the proportion of girls enrolled also increased, rising from 45.2% of total enrolment in
2022 to 47.8% in 2023, and further to 49.8% in 2024. This upward trend underscores
the pivotal role of seed schools in promoting gender equity by providing greater
educational opportunities for girls in underserved communities, key findings arising from
the programme evaluation are detailed below;

Key Findings

i) Progress of Construction of the seed secondary schools

Out of the 259 planned seed schools, 104 seed schools (40.2%) have been completed,
116 seed schools (44.8%) are still under construction, 12 schools (4.6%) are stalled,
and 27 schools (10.4%) have not yet started construction as of October 2024.

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ii) Staffing shortages in the Seed secondary schools

Staffing levels in most schools remain below the approved Ministry of Education and
Sports (MoES) standards, with only 10.3% of schools fully staffed with staffing
shortages more prevalent in critical subjects like Sciences, Mathematics, and Geography.

iii) Utilization of key infrastructure

Field inspections conducted at 37 seed secondary schools revealed gaps in the

availability and functionality of critical infrastructure such as classrooms, teacher
accommodations, laboratories, libraries and playgrounds. These deficiencies hinder the
program’s goal of providing equitable access to quality education and perpetuate
disparities in learning outcomes, particularly in underserved regions.

iv) Access to utilities

46% of the schools lacked electricity; 41% of schools experienced intermittent

electricity; 35% of the schools experienced intermittent access to clean water; 8% of
the schools lacked access to clean water. In addition, only 38% of schools had reliable
internet access, 14% experienced intermittent connectivity, and 49% had no access to
the internet at all.

v) Utilization of Information Management Systems

TELA (Teacher Effectiveness and Learner Achievement) and E-Inspection system usage
remained inadequate (33.5% and 35% respectively), impeding accountability, timely
intervention, and effective data-driven decision-making.

vi) Learner Enrollment and Academic Performance

The total enrolment numbers across the new seed secondary schools showed an overall
increase of 74.7% over the years between 2022 and 2024. Although enrolment soared,
academic results/quality continued to trail national averages, due to persistent resource
and teaching capacity constraints.

vii) Status of Transitioning Refugee-Serving Primary Schools

UgIFT program targeted to recruit 1,969 teachers across 51 refugee-serving primary

schools, only 627 teachers (31.8%) had been recruited as of November 2024. The lack
of focus on recruiting teachers for refugee-serving primary schools has caused
shortages, with schools reporting teacher-to-pupil ratios as high as 1:435 contrary to the
planned 1:53.

Recommendations

I advised the Accounting Officer of the MoES to:

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i) Strengthen oversight mechanisms by assigning dedicated monitoring teams to
track construction progress, enforce performance contracts with contractors, and
address delays by promptly replacing non-performing contractors.

ii) Prioritize and fast-track recruitment for teaching positions in seed secondary
schools, particularly for specialized subjects to ensure adequate subject coverage
across all seed schools.

iii) Collaborate with local governments to address utility gaps, ensuring reliable
electricity, water, and internet connectivity in all operational seed schools by
allocating targeted funding.

iv) Improve contractor supervision and strengthen oversight mechanisms to ensure

that school infrastructure projects, including laboratories, libraries, and teacher
accommodations, are completed on time and meet quality standards by the time
the schools are operational.

v) Strengthen enforcement mechanisms to ensure all operational schools adopt and

utilize the TELA and E-Inspection systems, providing clear guidelines and
monitoring frameworks for compliance.

vi) Conduct regular capacity-building programs for school administrators and

inspectors to enhance their understanding and effective use of IIS modules.

vii) Develop strategic plans for scalable expansion of seed secondary schools,
allowing for the addition of infrastructure, staff, and resources as learner
enrolment increases.

viii) Establish a monitoring framework to track and enforce teacher recruitment

progress in refugee-serving schools.

Overall Audit Conclusion

The Uganda Intergovernmental Fiscal Transfer (UgIFT) Program in the education sector
has significantly expanded access to secondary education by constructing and
operationalizing seed secondary schools in underserved areas and transitioning refugee-
serving primary schools to government management. Despite notable achievements,
such as increased enrolment and improvements in gender equity, the program faces
persistent challenges, including delays in school construction, staffing shortages,
inadequate infrastructure and utilities, and limited adoption of critical monitoring
systems like TELA and E-Inspection. These issues undermine the program’s goals of
equitable access to quality education and improved learning outcomes. To fully realize
its potential, the program requires strengthened oversight, accelerated recruitment of
qualified teachers, enhanced infrastructure functionality, and improved accountability
measures, ensuring the long-term sustainability and success of these critical
interventions.

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3.1.10 Impact Evaluation of the Micro-Scale Irrigation Programme under the Uganda
Intergovernmental Fiscal Transfer Program in the Agriculture Sector,
implemented by Ministry of Agriculture Animal Industry and Fisheries

Introduction

The Government of Uganda, with World Bank support, implements the Uganda
Intergovernmental Fiscal Transfer (UgIFT) program to enhance local government service
delivery. Initially focused on Education and Health, UgIFT was expanded in 2020
through Additional Financing of US$300 million to include Water, Environment, and
Micro-Irrigation, integrating refugee services into local government systems. The
program aims to improve funding adequacy, equity, and management for these sectors.
Originally set to end in FY 2023/24, it was restructured and extended to December
2025. The Program Development Objective emphasizes equitable and effective LG
service delivery in targeted sectors, including support for refugees and host
communities.

I undertook a Value for Money audit to assess the impact of the micro-scale irrigation
intervention under the UgIFT Program as a means of support to farmers for purchase
and use of micro-scale irrigation technology. Key areas of focus included the installation
and utilisation of irrigation technology for small holder farmers practicing agriculture on
2.5 acres with a co-payment system of funding. The audit also assessed factors that are
causing the observed impact of the program. This involved evaluating the performance
of the district local governments in implementing support activities such as sensitization
and training of farmers, establishment of demonstration farms and farmer field schools,
farm visits and other post-installation support.

The audit assessed the implementation of UgIFT programme interventions in the

Agricultural sector across beneficiary districts over the period FY 2020/21 to 2023/24,
capturing both Phase 1 and Phase 2 of the program.

Key Findings

i) The micro-scale irrigation intervention has had a positive impact on the value
earned by farmers per acre of land for the farmers that received irrigation
equipment under the UgIFT program compared to the farmers that expressed
interest but have not yet received irrigation equipment between FY 2020/21 and
FY 2023/24. Through sensitivity analysis it was observed that total farmland size,
use of; fertilizers, certified seed, application of pesticides, attending farmer
demonstration farm trainings and level of education were significant predictors
for revenue of farmers.

ii) Of the 5,580 planned installations as per the revised plan, 3,142 (56.31%) have
been completed 187 of the 318 Demonstration farms have been set up and only
40 of the intended 1,425 Farmer Field Schools have been set up.

iii) In Financial Year 2022/23, the 40 Phase 1 Districts achieved 825 micro scale
irrigation equipment installations against 2,783 target installations with a total

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 expenditure of UGX.24,920,783,987. Out of the 825 micro scale irrigation
equipment installations against the total spent of UGX.24,920,783,987, the
average unit cost of setting up the irrigation equipment was calculated to be
UGX.30,207,011 for an average of 2.5 acres. I noted that the average unit cost
of the irrigation equipment varies among districts. This variation was attributed
to district-specific challenges in availability of suppliers of similar irrigation
systems and the nature of irrigation systems designs

iv) I noted from the payment schedule to the contractors under micro scale
irrigation project that a total of UGX.13,553,630,755 had been spent on payment
of VAT to contractors, contrary to the provision in the VAT Act which provides
that VAT on donor funded projects is deemed to have been paid by the
Government. Since the average cost of reaching one beneficiary farmer was
UGX.30,207,011, the opportunity cost of the VAT paid is that 448 potential
beneficiaries were deprived of the opportunity to benefit from the installation of
irrigation equipment because districts had to pay the aforementioned VAT on a
project where VAT was deemed to be paid.

v) I noted that 199 out of the 344 beneficiary farmers (57.85%) owned less than
12.5 acres of farmland implying that the remaining 145 farmers (42.15%) owned
more than 12.5 acres of farmland and these farmers were already engaged in
commercial farming before receiving the system. Additionally, the uptake by
female farmers is low at 19% due to the lack of land and financial capacity to co-
fund the program.

vi) The farmer attendance of farmer field schools and demonstration farms is low at
17.4% and 43% respectively and as a result, farmers who did not attend
achieved lower yields and revenues as they were not well trained and sensitized
on the choice of irrigation system, how to operate and maintain it as well as
other effective agronomic practices. I noted that only 42% of the interviewed
beneficiary farmers had received training from the demonstration sites before
acquiring the irrigation equipment while 57% received irrigation equipment
without prior training on its use at a demonstration farm. Consequently, 70% of
the farmers who admitted to never attending the trainings faced challenges with
functionality and usage of their systems.

Recommendations

I advised the Accounting Officer of MAAIF to:

i) Prioritise the provision of farmer training on demonstration farms to ensure the

enhancement of good agronomical practices.

ii) Review the program to ensure that it targets the actual intended beneficiaries
who are smallholder farmers to support them to transition from subsistence
farming to commercial agriculture and to ensure that future co-payment
programs have detailed assessments regarding affordability by intended
beneficiaries prior to the roll out of the program.

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 iii) Expedite establishment of Farmer Field Schools and Demonstration Farms in
each of the beneficiary District Local Governments to facilitate training and
knowledge sharing in irrigation technologies and agronomical practices.

iv) Support the District Local Governments in creating linkages with the suppliers of
irrigation equipment to ensure that they are easily accessible to the beneficiary
farmers for timely maintenance and repairs farmers.

Overall Audit Conclusion

The Micro-Scale Irrigation Program under the Uganda Intergovernmental Fiscal Transfer
(UgIFT) has demonstrated significant potential to uplift smallholder farmers by
increasing productivity and income through enhanced irrigation practices. While
achieving commendable progress in installations and benefits to participating farmers,
the program faced notable challenges in equitable beneficiary targeting, cost variations,
and inadequate training. The impact assessment revealed positive gains for beneficiaries
in income per acre, but disparities in regional impact and farmer participation hindered
uniform success. Addressing these challenges through improved targeting, expanded
training initiatives, and resolving operational inefficiencies will be crucial for maximizing
the program's sustainable impact and fostering agricultural transformation.

3.1.11 The Management of Public Debt by the Ministry of Finance Planning And
Economic Development

Introduction

Uganda, Public debt management is provided under Article 160(2) of the 1995
Constitution of the Republic of Uganda and amplified by the Public Finance Management
Act Cap 171. Uganda’s Debt stock has been increasing in the last 6 years (FY 2018/19-
2023/24), from USD12.55Bn in FY 2018/2019 to USD25.59Bn in FY 2023/2024, an
increase of 104%. The increase is attributed to multiple factors, such as a shift in
spending toward Infrastructure development and the impact of the COVID-19 pandemic.
Before the pandemic, public debt was 35.1% of GDP in FY 2018/2019 but increased to
48.4% in FY 2021/2022. Debt has since been on a downward trend, reducing to 46.9%
in FY 2022/23 and then to 46.8% in FY 2023/24. It is, however, projected to increase to
slightly over 50% by end of June 2025, following a number of expenditure pressures in
FY 2024/25.

Consequently, Uganda’s overall risk of debt distress has shifted from low to moderate
level and Fitch, a credit rating agency, has revised Uganda’s credit rating from B+ Stable
to a negative outlook.

Furthermore, development partners are now closely monitoring the countries’ borrowing
capacity in areas such as debt management, fiscal sustainability and debt transparency.
Given the importance of public debt to the financing of the country’s economy, and the
current debt position of the country, I found it pertinent to undertake a study on public
debt management by the Government. The main objective of the study was to review

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the management of Public Debt to establish the effectiveness and efficiency of the Public
Debt as a source of financing for Government projects and programs.

Key Findings

The following are the summary key findings of the audit;

i) Uganda’s Debt stock for the period under review, has had an upward movement/
increase from USD12.55Bn in FY 2018/19 to USD25.59Bn in FY 2023/24,
representing 104% increase over the six Financial Years.

ii) The Debt service cost as a portion of the National budget in the FY 2023-2024
was UGX.18.56Tn (35%) of the annual National Budget of UGX.52Tn. This
increased from UGX.8.85Tn (27%) in FY 2018/19 out of an annual budget of
UGX.32.7Tn.

iii) It cost Government UGX.1,371.38Bn in interest payments for loans acquired

through external sources for the FY ended June 2024. This represents 151%
upward trend over the last six FYs from UGX.545.91Bn in FY 2018/19.

iv) I noted that fifteen (15) out of the 49 loan funded projects included in the
Project Implementation Plan between FY 2018/19 and FY 2023/24 were
implemented without having both the Pre-feasibility and the detailed feasibility
studies.

v) The current loan approval processes are so lengthy with duplicated responsibility
centres. I noted that the average time taken during the loan approval process
was approximately 756 days, which is over a two-year period.

vi) Notable delays were noted in declaring Government loans effective from the date
of loan signature. Twenty-seven (27) out of eighty-two (82) externally financed
projects listed in the Report had delays ranging from five (05) months to twenty-
four (24) months between the signature date and declarations of effectiveness.

vii) There is a growing number of non-performing government loans meant to

Finance Government projects and programs. A total of five (05) credit facilities
were non-performing. The funds have not been used and the Government is
incurring costs in terms of interest repayments, Commitment fees and associated
penalties.

viii) There was a downward trend in Commitment fees paid by the Government on
Undrawn loan funds. The Government paid UGX.73.82Bn in Commitment fees for
the FY ended 30th June 2024 down from UGX.90.64Bn (23%) in FY 2018/2019.

ix) There are notable delays in the completion of the Public Debt Funded Projects.
The projects are completed past the target periods upon securing extensions
with the funders. The delays ranged from one (1) year to ten (10) years. A total
of fifty-two (52) projects were observed to have been significantly delayed.

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x) The government obtained two (2) non-concessional loans for FY 22/23
amounting to USD.739Mn for budget support instead of Infrastructure
development.

xi) It cost Government UGX.5.564Bn in penalty charges for the cancellation of a loan
obtained from AFD meant for the Muzizi Hydropower plant project alone. And for
the period under review, two loans worth USD 156 Million were cancelled.

Recommendations

I advised that;

i) The MoFPED should become more conscious in contracting new debt to finance
the budget deficit, Government should also increase its revenue mobilization
strategies if a balanced budget is to be realized thus reducing the reliance on
debt.

ii) The Government should invest in more productive sectors of the economy to
increase its domestic revenues, which will in turn be utilized to service debt. The
increase in income will reduce the portion of the national budget utilized to
service debt.

iii) The Minister for Finance Planning and Economic Development should obtain
loans from cheaper sources as this helps to lower the cost of debt incurred in
interest rates payments for Government loans.

iv) Feasibility studies should be undertaken for all projects that the Government
intends to finance through Public Debt as this helps to assess the viability of
undertaking such projects and to determine any associated risks of the proposed
projects.

v) The PS/ST should develop and implement a framework in consultation with all
stakeholders in the value chain to ensure that all functions related to the
Government loan approval processes are approved within the timelines set in the
framework.
vi) Government should endeavor to prioritize and timely fulfil conditions precedent
to the declaration of the loans effective such that loan-funded projects can be
executed on time.

vii) As for the non-performing loans, the Ministry of Finance and the implementing
Government agencies should ensure that loan funds are drawn as scheduled in
the loan agreements to implement the intended project activities to save
Government from paying commitment fees on undrawn amounts.

viii) The project implementing Government Agencies are encouraged to draw the
loan funds as scheduled to avoid payment of commitment fees on any undrawn
loan funds by the Government. This in turn reduces the cost of public debt.

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 ix) The Ministry for Finance, Planning and Economic Development should enhance
its monitoring role of all debt-funded projects to improve the feedback
mechanism and timely implementation to achieve value for money for the
borrowed funds.

x) MoFPED should prioritize the acquisition of cheaper concessional external loans

to finance its budget deficits as compared to the more expensive domestic
borrowing which has a crowding-out effect on the local investors and
Government should be more cautious in contracting new debt if it is to achieve
debt at sustainable levels.

xi) The Minister for Finance, Planning and economic Development should undertake
thorough feasibility studies to ascertain the viability of projects before
government’s commitment in obtaining financing is approved, especially through
debt.

Overall Conclusion

Uganda’s overall risk of debt distress remains medium hence, public debt may be
sustainable in the medium term as evidenced by the liquidity indicators set by the World
Bank and IMF. As such, the Government is encouraged to be more cautious in
contracting new debt in the future, increase its revenue mobilization and continue to
rationalize its expenditure to maintain sustainable debt levels.

3.1.12 The Management of Revenue Collections from the Telecommunications Sector

by Uganda Revenue Authority and Uganda Communications Commission

Introduction

One of the key objectives in Uganda’s development agenda as stipulated in the National
Development Plan (NDP) III is strengthening the mobilization of resources for the NDP
implementation. This requires concerted efforts in mobilizing resources from all facets of
the economy.

The NDP III has Digital Transformation as one of its programs, aimed at increasing the
penetration of ICT services. The ICT Sector remains one of the greatest contributors to
Uganda’s GDP (9%) and Social and Economic Development. MTN and Airtel are among
the largest taxpayers in the country.

I carried out a value-for-money audit on the Management of Revenue from the Telecom
Sector in Uganda to examine the extent to which revenue assurance practices by URA
and UCC have led to the effective collection of revenue from the Telecom Sector. The
revenue streams (taxes) included Local Excise Duty, Value Added Tax, Corporate
Income Tax and Withholding tax that covered prepaid voice (airtime), prepaid internet
(data), mobile money-related charges and charges on international calls.

Key Findings

The following are the summary key findings of the audit;

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i) The Government of Uganda procured the Telecommunications Intelligent
Network Monitoring System (TIMS) and Data Monitoring System (DMS) for
security purposes but was later adopted to provide revenue assurance from the
telecom sector.

ii) Several revenue streams were not captured by the TIMS and DMS. These include
post-paid voice, post-paid internet data, value-added services, and agent
commissions, among others. The failure to capture the information resulted from
the non-provision of Enterprise Resource Planning (ERP) files by the Telecom
Operators.

iii) There were notable variances between data extracted from the TIMS/DMS and
communicated to URA and reported in the tax returns of the Telecom Operators.
This was mainly attributed to delayed and non-provision of business operation
rules and applicable charges used by the operators to the TIMS and DMS
management team. Some of the variances are shown below;

Table 49: Data Variances in TIMS/DMS and that communicated to URA

Services/Products MTN U Limited/ MTN AIRTEL U Ltd/ Airtel
Mobile Money Mobile Commerce
Prepaid Voice 14% 1%
Mobile Data -31% 4%
Mobile Money Withdrawals 3% -8%
Revenue from Mobile Money Transfer 32% 17%
Fees
International Incoming Calls 10% -25%

iv) Whereas the TIMS and DMS were envisioned to capture all telecom-related
revenues, several operators were not onboarded on the TIMS and DMS. These
included operators for the provision of internet services apart from MTN and
Airtel.

v) There was no clear data-sharing framework between all the stakeholders

involved in the process of assurance of revenues from the telecom sector. These
include;

a) Guidelines for sharing information between the Telecoms TIMS and DMS
Management.
b) Guidelines for sharing information between the TIMs and DMS
Management and URA, UCC and other stakeholders.

vi) The TIMS and DMS have not been optimally utilized. I noted that telecom
operators are now evolving and not only are they providing the ordinary services
of voice and internet but are now providing other services such as insurance,
loans, banking, fees payments, merchant payments (MTN Momo and Airtel
Money Pay), payments for utilities and other fintech services. As a result, the
telecom conpanies are rich with transaction data that would be very useful for

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 taxation purposes. If TMS and DMS are adequately optimized, they can be used
to provide assurance of the above services.

vii) Over the past years, insufficient measures have been taken to guard against
base erosion and profit shifting (transfer pricing) by the large Mobile Telecom
Operators as the bulk of their expenses are related to party transactions. I noted
that over the last three years, UGX 2.4 Trillion has been paid for various goods
and services to related companies. Management noted that Transfer pricing
audits were ongoing.

viii) There were no specific telecom sector compliance initiatives by URA, such as an
industry compliance manual and return examination checklist for its employees
to follow during the assessment among others.

ix) Of all the returns submitted by the Telecom operators, only the Excise Duty
return was customized to the characteristics of the sector. Other returns such as
VAT and Corporate Income Tax were not customized.

Key Recommendations

I advised the Accounting Officers of Uganda Revenue Authority and Uganda

Communications Commission to;

i) Develop a framework to define and streamline business operation rules and

ensure timely sharing, reconciliation and oversight to enhance efficiency and
effectiveness in revenue mobilization.

ii) Ensure that all revenue streams and telecom operators are monitored by the
TIMs and DMS.

iii) Ensure that Enterprise Resource Planning files are captured in TIMS and DMS to
ensure complete revenue assurance.

iv) Consider having engagements with the vendors of TIMS to explore ways in which
it can be extended to other non-telecom revenue streams to ensure optimal
usage of the system and enhance revenue mobilization.

v) Ensure that any changes in the business operations such as bonus airtime,
combo bundles and other promotion packages are communicated in advance by
the MNOs with detailed start and anticipated end periods.

vi) Enhance its capacity to carry out Transfer Pricing Audits for Mobile Network
Operators to guard against base erosion and profit shifting.

vii) Customize returns for tax heads like VAT, Withholding Tax and Corporation
Income Tax to reduce the reconciliations to be made upon receipt of returns.

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 viii) Put in place specific industry tax compliance manuals related to the Telecom
Sector. The Authority should also put in place a return examination checklist to
guide staff on what tax compliance activities are to be performed in regard to the
Telecom sector.

ix) Ensure that the units managing assurance of revenue from the telecom sector
are adequately staffed and that they receive proper training. The steering
committee should be designated with the responsibility of ensuring that all key
players acquire skills to operate and maintain the TIMS and DMS system to
reduce reliance on the vendor.

x) Have the Steering Committe bring together all stakeholders to regularly track the
progress and milestones of the contract, resolve any existing bottlenecks and
advise the accounting officer responsible on actions to be taken to realise value
for money.

Overall Conclusion

There is adequate technology to ensure reliable assessment and assurance of revenue

from the telecom sector. However, several bottlenecks have hindered the Government’s
potential to fully harness the benefits of the available technology in increasing revenue
mobilization. Some of the major bottlenecks include delayed provision of business rules
by telecom operators, non-provision of ERP files by Telecom Operators, and insufficient
training and knowledge transfer to URA staff among others. The Government is advised
to address the above bottlenecks and heighten its efforts in monitoring the revenue of
the telecom operators and the reconciliation of the taxes due to the Government.

3.1.13 Government of Uganda’s efforts, through Ministry of Education and Sports to

support the management of Menstrual Health and Hygiene in Primary and
Secondary Schools

Introduction

Menstrual hygiene entails the use of clean menstrual management products to soak
menstrual discharge by adolescent girls and women, changeable in privacy as required,
alongside access to water, soap, and disposable methods. Menstrual health and hygiene
(MHH) include the broader systemic factors that link menstruation with health, well-
being, gender equality, education, equity, empowerment, and rights.

The Ministry of Education and Sports (MoES) through the gender unit is responsible for
promoting MHH in schools and provides guidance on programming menstrual health and
hygiene management (MHHM) in schools.

However, several studies by academic scholars have cited challenges with MHHM as the
main reason for girls being absent from school. These included lack of sanitary pads,
poor disposal mechanisms for menstrual materials, embarrassment and fear of teasing
related to menstruation by mainly boys, absence of water and separate toilet facilities
for girls in many schools.

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Considering the above concerns, I undertook a Value for Money Audit to assess
Government of Uganda’s efforts, through the MoES, to support MHHM in Primary and
Secondary schools (both government and private).

Key Findings

From interviews/surveys held, audit noted that 64% of the female learners (138 out of
216) indicated that they had been absent from school or class because of menstruation.
The main reasons given include:

i) Harmful myths and cultural beliefs

There are harmful myths and cultural beliefs that have affected the menstrual health
and hygiene of female learners leading to fear, stigma and use of unhealthy and unsafe
practices during menstruation and shying away from schools. This is more prevalent in
the Eastern and Northern regions of Uganda.

ii) Lack of menstrual materials and sanitation facilities

a) There is non-prioritization of the establishment of water, sanitation and

hygiene facilities in schools by the District Local Governments.
b) 22 of the 48 schools visited (46%) did not provide any emergency pads
and other MHHM support for female learners and they lacked access to
water and appropriate sanitation and menstrual disposal facilities.

iii) Ineffective governance and support structure

Inter-Ministerial Committee on Menstrual Health and Hygiene (IMCMHH) which was

formed to spearhead the MHHM agenda at the national level is ineffective as there are
gaps in the resource mobilization and planning for MHHM at national, district and school
levels:

a) The Gender Unit spends only 10% of its GoU budget and none of it donor
budget on MHHM activities;
b) There is limited parental involvement in the provision of MH support,
whereby parents are not providing enough pads, underwear and
guidance on menstrual hygiene, which leads to the girls being absent
from school.

iv) Lack of Capacity building and sensitisation

a) There is inadequate capacity building for senior women and senior men
teachers (SMT) to provide adequate MHHM support to female learners.
As a result of the limited capacity of the SMT to perform their role, there
is also limited involvement of male learners in MHHM education and
training.
b) MoES has not conducted sensitisations for the Parents Teachers
Associations (PTAs) and the School Management Committees (SMCs) for

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 any of the schools visited. Similarly, there is no national and global
knowledge hub for MH information in place limiting access to accurate
information about menstrual health especially on how girls prepare for
and manage their periods. This further leads to the spread of harmful
myths and misconceptions.

v) Inadequate Monitoring, Supervision and Reporting

a) There is inadequate monitoring, supervision, and reporting of MHH in

government primary and secondary schools. The monitoring and
inspections were majorly in government schools. The district local
governments (primary schools) and the Directorate of Education
Standards (Secondary Schools) did not inspect private schools over the
period under review.
b) The school inspection tools used have no MHHM specific indicators to
allow school inspectors at the local Governments (undertaking inspections
in primary schools) and at DES (undertaking inspections in secondary
schools) to capture information on MHHM practices.

Key Recommendations

The Accounting Officer of MoES should:

i) Prioritise the dissemination of guidelines, policies and manuals on MHHM to

district local governments, schools and other relevant key stakeholders as well as
orientation of key stakeholders on the guidelines, policies and manuals to foster
implementation.

ii) Work closely with MoFPED and the National Curriculum Development Centre to
ensure that funding is secured for the review of the primary curriculum and that
the review process considers the integration of menstrual hygiene and hygiene
messages.

iii) Set up a mechanism of monitoring the functionality and effectiveness of the

inter-ministerial committee for MHH to ensure that it achieves the key
deliverables as per the Terms of Reference.

iv) Work closely with the Ministry of Water and Environment and the District Local
Governments to ensure that projects that are implementing piped water systems
in the country prioritize connections at schools and other education institutions to
ensure that learners have a reliable access to water within the school premises.

v) Provide specific guidance to the District Local Governments on how they can
maximize the use of the education sector development grant to construct
sanitation facilities that are engendered and supportive of menstrual hygiene as
per the revised construction designs for pit latrines in schools.

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 vi) Follow up with DLGs and the Directorate of Education Standards on a regular
basis to ensure that they plan for and conduct inspections in Private primary and
secondary schools that comprehensively assess and provide feedback on the
appropriateness of the water, sanitation and menstrual disposal facilities in those
schools.

vii) Ensure that the Gender Unit works closely with other departments of the MoES
such as the departments of Guidance and Counselling, Basic Education and
Secondary, Special Needs Education, Health/HIV Unit, to continuously
incorporate MHHM topics in the agenda for teacher trainings to build their
capacity to take on the role of Senior Woman Teacher or Senior Man Teacher.

viii) Prioritise the MHH awareness activities in the budgeting and planning process of
the Ministry, especially the orientation sessions for the PTAs and SMC on MHM;
the development of social behaviour change communication strategy for MHH
and; development of a national and global knowledge hub for menstrual
hygiene.

ix) Undertake review of the existing Basic Requirements and Minimum Standards
and inspection tools and systems to provide for MHM specific indicators and
allow information and data collection, analysis and reporting on MHM.

Overall Audit Conclusion

Proper Menstrual health and hygiene management is key for ensuring a safe and
conducive learning environment for learners at school. Government of Uganda, through
the Ministry of Education and Sports, has made efforts to develop guidelines and
manuals that govern menstrual health and hygiene in schools. However, there are still
gaps in resource mobilization and planning for MHHM with no or poor sanitation
facilities, lack of capacity building of senior women teachers and senior men teachers on
MHHM; limited awareness creation and; inadequate monitoring and inspections of
schools that is focused on MHHM. This has resulted in absenteeism amongst girls and
reduced their learning time.

Addressing these gaps will go a long way in reducing absenteeism among female
learners, improving their participation in learning activities at school and supporting
them to achieve better learning outcomes.

3.1.14 Monitoring and Enforcement of air Quality Standards in selected cities in

Uganda by the National Environment Management Authority

Introduction

Air quality is a critical aspect of environmental management as it influences human

health and environmental sustainability. It is compromised when contaminants are
introduced into the atmosphere, disrupting the chemical composition, rendering it
unsafe. Pollutants such as particulate matter (PM), gases, and total volatile organic
compounds significantly degrade air quality. Health problems arise from short- and long-

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term exposure to these pollutants. PM2.5, the most prevalent and harmful air pollutant,
penetrates the respiratory system and enters the bloodstream, contributing to higher
incidence of asthma, stroke, heart disease, lung disease, and cancer, among other
complications.

Uganda's Constitution guarantees the right to a clean and healthy environment, aligning
with its commitment to Agenda 2030, which includes targets to reduce air pollution-
related deaths and illnesses (SDG 3.9.1) and minimising the environmental impact of
cities through improved air quality (SDG 11.6.2).

The National Environment Management Authority (NEMA) is Uganda's primary regulatory

agency for environmental management, including monitoring and enforcement of air
quality standards. NEMA’s mandate is to safeguard environmental and public health by
ensuring compliance with air quality standards through inspections, enforcement, and
sensitisation for compliance, in collaboration with various stakeholders.

Despite these commitments, Uganda faces severe air quality challenges due to rapid
urbanisation, industrialisation, and a lack of comprehensive monitoring and enforcement
mechanisms. Emissions from manufacturing industries, poorly maintained vehicles,
waste burning, dust from unpaved roads, and other human activities contribute to
deteriorating air quality. Reports indicated that Uganda’s annual average PM2.5
concentration reached approximately 50 µg/m³, exceeding the WHO guideline of 10
µg/m³. This problem was reportedly severe in cities and industrialised areas, leading to
respiratory diseases, including a national asthma prevalence of 11.02% and an air
pollution-associated mortality rate of 27.3 per 1,000 people.

In light of the above concerns, I undertook a Value for Money Audit to assess the
performance of NEMA in monitoring and enforcing air quality standards in selected cities
towards promotion of a clean and healthy environment.

Key Findings

i) High Pollution levels exceeding WHO and National Standards

The annual average air quality PM2.5 concentrations in the selected cities consistently
exceeded the WHO and national set safe limits for the period under review. This
pollution, primarily attributed to transportation, industrial emissions, and waste/biomass
burning, was notably worse during drier months and peaked during rush hour traffic,
highlighting the impact of human activity. Furthermore, air quality was significantly
poorer in business areas with higher traffic and industrial activity compared to less
congested residential zones.

ii) Inadequate monitoring equipment

The availability of air quality monitoring equipment is inadequate, with most (75%) of
the operational stationary air quality monitors concentrated in Kampala, leaving
monitoring gaps in the other cities in Uganda. This hinders comprehensive air quality
assessments across the country.

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iii) Non-functional Monitors

Out of the 162 installed air quality monitors in the selected cities, only 121 were
operational, with significant downtime challenges. This leads to data gaps and
compromises the accuracy of air quality assessments.

iv) Inadequate pre-export and periodic vehicle inspections

Pre-export inspections, conducted by Uganda National Bureau of Standards (UNBS) have

continued to rely on outdated standards, that do not address key pollutants like PM2.5
and oxides of nitrogen, as required under the Euro 4 framework adopted by the East
African Community. In addition, periodic vehicle inspections by the Ministry of Works
and Transport were not conducted for the review period. This allows high-emitting
vehicles to operate unchecked, contributing to elevated levels of air pollution.

v) Ineffective enforcement by NEMA

NEMA has not effectively enforced the requirement for factories to install emission
monitors and report on their air quality stack emission levels contrary to the law.
Inspections are limited, facilitating unchecked industrial emissions.

vi) Limited Public Awareness

Public awareness of air quality issues was limited, with only two out of the nine selected
cities having conducted outreach programmes. This limits voluntary compliance and
personal efforts to reduce exposure to air pollution.

Key Recommendations

The Accounting Officer of NEMA, in collaboration with the lead agencies, should:

i) Develop a National Air quality monitoring programme and centralised database

to streamline countrywide air quality monitoring, reporting, forecasting and
impact-assessment.

ii) Fast track the implementation of the adopted East African Community vehicle
exhaust emissions Standards (Euro 4 equivalent), for pre-export and periodic
inspection of motor vehicles.

iii) Invoke the penalty clauses provided in the National Environment Act, Cap. 181
and National Environment (Air Quality Standards) Regulations, 2024, to enforce
compliance with air quality standards.

iv) Conduct a risk assessment of registered factories to prioritize routine inspections

of high-risk polluters.

v) Automate air quality management systems to facilitate swift identification, follow-

up and actions on non-compliance.

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 vi) Include specified interventions for air quality awareness in the approved work
plans and budgets and incorporate air quality issues in all training/sensitisation
programmes conducted.

vii) Prioritise development of the National Environment Action Plan, including air
quality management measures, and support adoption or adaptation of the same
by cities and other local governments, with clear strategies for resource
mobilisation for establishment and operation of adequate systems for air quality
monitoring, reporting, enforcement and public sensitisation.

viii) Enhance public access to up-to-date air quality information through varied
methods including displays on the NEMA website.

Overall Audit Conclusion

NEMA, in collaboration with lead agencies, has established a legal framework for air
quality monitoring and enforcement, developed monitoring networks through
partnerships, and initiated public awareness campaigns. However, compliance with air
quality standards remains inadequate due to limited monitoring infrastructure,
concentrated mainly in Kampala, leaving cities like Hoima and Mbale unserved. Reliance
on independent operators, resource and staffing shortages, and non-functional
environmental committees have further weakened enforcement efforts. Public
awareness initiatives have been limited in coverage, heavily reliant on digital platforms,
and dependent on development partners, limiting their impact. As a result, major
pollution sources, including transportation, industrial emissions, and waste burning,
operate with minimal regulation. Consequently, the annual and daily average PM2.5
concentrations consistently exceeded WHO and national set safe limits for the period
under review, posing serious risks to public health and the environment.

3.1.15 Monitoring and Assessment of Available Ground and Surface Water Resources
by the Ministry of Water and Environment

Introduction

Uganda's water resources encompass both surface and groundwater sources. Surface
water includes major lakes like Victoria, Kyoga, Albert, George, and Edward, as well as
wetlands and rivers such as the Nile, Katonga, Semliki, and Malaba. Groundwater
resources comprise fractured basement aquifers, regolith aquifers, and sedimentary
aquifers.

Water resources are critical to Uganda’s economic growth, public health, and climate
resilience. However, the increasing threats posed by climate change, including erratic
rainfall, prolonged droughts, and severe flooding, have heightened the need for effective
monitoring and management of water resources. The Directorate of Water Resources
Management (DWRM) in the Ministry of Water and Environment is responsible for
managing and developing water resources of Uganda in an integrated and sustainable
manner to provide water of adequate quantity and quality for all social and economic
needs for the present and future generations. The Directorate comprises four

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departments of which the Department of Water Resources Monitoring and Assessment
(DWRMA) is tasked with providing reliable data on water resources to inform planning
and ensure sustainable usage.

Despite the department's efforts, significant gaps remain in monitoring infrastructure,

data quality, and resources, compromising the country's ability to adapt to climate-
related water challenges. In light of this, I conducted a Value for Money (VFM) audit
whose objective was to assess the measures implemented by DWRMA in providing
reliable data on ground and surface water resources for climate change adaptation.

Key Findings

I found that the DWRMA had expanded its network from 88 to 243 ground and surface
water monitoring stations since 2005, enhancing data collection capacity. Introduction of
telemetry at 56 of these stations enabled real-time data transmission, crucial for flood
forecasting and disaster management. In addition, partnerships with entities like Uganda
National Meteorological Authority (UNMA) and the Nile Basin Initiative have bolstered
data sharing and disaster preparedness.

However, I identified the following challenges and areas of improvement:

i) Insufficient Monitoring Stations Coverage

a) Critical climate-vulnerable regions such as Karamoja, Rwenzori, and the

Cattle Corridor are underserved.
b) 43% of groundwater stations and 49% of surface water stations are non-
functional due to vandalism, resource constraints, and equipment failure.

ii) Data Gaps and Inaccuracies

a) Manual data collection processes are inconsistent, with errors in observer

records and missing data in critical zones, undermining the reliability of
data for planning and disaster response.
b) Manual data collection is hindered by logistical challenges, with observers
trekking long distances to have the data collected.

iii) Guidelines and Standards

Operational manuals and guidelines lack alignment with international standards like the
World Meteorological Organisation (WMO) Technical Regulations, limiting their utility in
climate adaptation. Key gaps include the absence of dedicated climate-sensitive
parameters, flexible monitoring frequencies, and updated methodologies.

iv) Limited Modelling and Forecasting

a) The modelling and forecasting unit operates with only 8 staff against the
required 18 and lacks essential IT tools like specialized modelling
software and cloud computing infrastructure.

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 b) Climate change modelling is confined to donor-funded projects,
undermining its ability to sustain long-term initiatives.

v) Weak Dissemination Mechanisms

a) Key stakeholders including the Office of the Prime Minister, Uganda

National Roads Authority, Ministry of Health and District Local
Governments often lack timely access to water resource data.
b) Public awareness campaigns to curb vandalism and promote sustainable
water use are infrequent.

Key Recommendations

The Accounting Officer of the Ministry of Water and Environment is advised to:

i) Expand and Upgrade Monitoring Infrastructure

Prioritise establishing new stations in climate-vulnerable regions and allocating resources

for rehabilitating of the non-functional stations.

ii) Enhance Data Quality and Accuracy

Increase supervisory visits to monitoring stations from quarterly to monthly and provide
training and adequate stipends to gauge observers to improve reliability.

iii) Align Guidelines with International Standards

Ensure review of policies, plans and manuals in included in the Ministry’s Strategic and
annualised plans, and liaise with the Ministry of Finance, Planning and Economic
Development to secure appropriate funding for the implementation of the road map
towards attaining alignment with WMO standards.

iv) Bolster Modelling and Forecasting Capacity

Secure funding to operationalize the Modelling and Forecasting Unit with specialized
software and IT tools and integrate climate change modelling into annual work plans
and budgets.

v) Improve Dissemination and Stakeholder Engagement

a) Ensure that the Water and Environment Information System becomes

fully functional within the planned timelines and that staff and
stakeholders are adequately trained in its use.
b) Address the current data collection gaps by rehabilitating non-functional
monitoring stations and expanding sensitization and outreach programs
to cover all 17 catchments, which will ensure that stakeholders, including
local governments, researchers, and disaster preparedness agencies,

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 receive reliable and comprehensive water resource information to support
effective decision-making and planning.

c) Streamline and simplify the data approval process by decentralizing

approvals to Water Management Zones for routine data requests.
Additionally, the Accounting Officer should ensure that guidelines are put
in place to specify which data types require centralized approval and
which can be approved at the zone level.

Overall Audit Conclusion

The DWRMA has made significant progress in expanding Uganda’s water monitoring
network and leveraging real-time data for disaster preparedness. However, gaps in
monitoring coverage, data quality, and resource allocation hinder its ability to produce
reliable data for effective climate change adaptation and disaster risk response.

Strengthening institutional capacity, aligning processes with international standards,

ensuring timely data dissemination, and raising public awareness of water resource
monitoring are crucial for enabling the department to contribute effectively to the
sustainable management of water resources amid climate challenges.

3.1.16 Regulation of Secondary Education in Uganda by the Ministry of Education

and Sports

Introduction

Article 30 of the Constitution of the Republic of Uganda, 1995 as amended provides for
all persons to have a right to education. Furthermore, Uganda’s Vision 2040 recognizes
the provision of secondary school education as a human right and emphasizes character
formation and talent development. The Ministry of Education and Sports (MoES) has
overtime, developed policies and guidelines to help in regulation of secondary education.

I undertook a value for money audit (VFM) on regulation of secondary schools by the
ministry of education and sports. The study was carried out in 73 government,
government aided and private schools across the different regions of Uganda (Northern,
West Nile, central, Eastern, Western and Southwestern), over a period of 3 years –
2021/2022, 2022/2023 & 2023/2024. The main objective was to assess the extent to
which MoES has enforced the existing laws and regulations in secondary school
education. Below are the key findings;

Key Findings

i) Out of a sample of seventy-three (73) schools comprising 28 private, 30 USE and

15 government aided, I noted that one (1) out of twenty-eight (28) private
secondary schools was not licensed. Although the same school was not licensed,
it existed in the education management information system (EMIS). The Ministry
indicated that while the department for private schools and institutions has 3,186
secondary schools in their records, EMIS has 6,000. This is because the data

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 availed by the private schools and institutions department does not include
unlicensed schools.

ii) Thirty-one (31) of the sampled higher local governments did not have education
development plans clearly indicating the planned distribution of secondary
schools in the local government.

iii) Out of the 73 schools, 26 did not have evidence of lawful occupation of
premises. Of the twenty-six (26) schools, nine (9) are private schools, twelve
(12) are universal secondary schools (USE) while five (5) are government aided.

iv) Thirty-seven (37) and 55 secondary schools did not have building plans and
occupational permits respectively contrary to the guidelines.

v) Twelve (12) of the 35 rural schools and 23 of the 38 urban schools fulfilled the
minimum acreage of 10 and 5 acres respectively.

vi) All the head teachers of the 73 sampled schools had more than five (5) years of
continuous teaching experience and had registration certificates. However, 84
teachers in both government and private schools were not registered with the
Ministry of education and sports.

vii) All schools visited had the required minimum number of teachers on full-time
basis and the required number of science teachers. However, out of the 73
schools visited, 5 schools had teachers without appointment letters or contracts.

viii) Eighteen (18) schools did not have boards of governors. 8 of these were
government schools whose boards had expired while 10 were private schools
whose owners were handling the board roles.

ix) Out of the 55 schools that had boards, 12 schools had illegal boards of governors
that were not approved by the Minister while 43 schools had their boards of
governors approved by the minister.

x) There were five (5) schools that had never been visited by any of the three
stakeholders in the period under review. As a result of inadequate support
supervision Seven (7) private schools had changed ownership and location
without notifying the district or Ministry of education and sports.

xi) Some of the government schools that receive funding in terms of salaries for
teachers, support for infrastructure and textbooks continue to charge fees.
Though the education ACT allows voluntary contributions to respond to
emergencies, the ACT does not spell out what constitutes emergencies.

xii) Out of the 2,636 teachers in the sampled government aided and USE schools,
631 teachers had stayed at one duty station for more than 5 years and 509
teachers had stayed for more than 10 years.

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 xiii) Out of the sampled 73 schools, none of them met all the prescribed ratios in
terms of: classroom to students, desk to students, latrine stance to students,
staff accommodation to school, teachers to students.

xiv) Out of the 73 schools sampled, 68 schools indicated that their EMIS data was not
updated in the system. Only 5 had their EMIS data updated. In addition, in a
sample of 22 schools with a total enrolment of 20,405 had only 18,394 students
on EMIS while 2,011 students were not updated on the system.

Key Recommendations

I advised the MoES to;

i) Ensure that there is coordination between the Ministry departments and the
relevant stakeholders in data management and enforcement of the laws,
regulations and guidelines. This will enhance licensing and registration of
schools, deployment of teaching staff, regulating school fees and overall
governance of the schools.

ii) Provide guidelines regarding voluntary fees contributions and what constitutes
emergencies in the context of schools.

Overall Conclusion

In conclusion, addressing the inadequacies is crucial for the MoES to fulfil its mandate
effectively. By focusing on improving the implementation and enforcement of the
policies, guidelines and the laws, data collection and management, stakeholder
engagement, infrastructure development and support supervision, the ministry can
create a more supportive and effective secondary education system that aligns with the
outcomes envisaged in the constitution and Vision 2040.

3.1.17 Effectiveness of Provision of Railway Services by Uganda Railways

Corporation
Introduction

The provision of railway services in Uganda, is a responsibility of the Uganda Railways

Corporation (URC), a body corporate established by the URC Act Cap. 216. The services
provided by URC include freight, passenger, warehousing and terminal services as well
as marine services, as an extension of the railway line using train ferries to roll on and
roll off goods in transit for cross border transportation.

The Government of Uganda has prioritized the development of reliable and resilient
railway infrastructure to reduce transport costs, enhance interconnectivity, and support
economic growth, aligning with Sustainable Development Goal (SDG) 9.1 and
commitments under Uganda’s third National Development Plan-NDP III (FY 2020–2025).
However, only 269 (21%) of Uganda's 1,266 km railway network is operational, leading
to over-reliance on road transport, increased transport costs, road deterioration, traffic
congestion, and safety concerns. Theft, vandalism, and public encroachment on railway

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land reserves further hinder operations, requiring costly repairs and compensation.
Additionally, limited investment in the railway network, due to high initial costs, has left
over 90% of the traffic along the northern corridor (Malaba - Kampala railway line)
carried by road, with a mere 7% being moved by rail because of poor infrastructure.

In response to these challenges, the Office of the Auditor General conducted a Value for
Money Audit to assess the mechanisms undertaken by URC in the provision of railway
services (carriage of passengers and goods) during the financial years; 2020/21 to
2022/23. Below are the summarised key findings and recommendations.

Key Audit Findings

i) Although the targeted number of commuter passengers was set at 3,178,174 for
the three-year period, the number of passengers transported was 837,528,
resulting in a significant performance gap of 2,340,646, representing a 73.6%
shortfall from the target.

ii) I noted that whereas URC had established a process of recording and reporting
the actual revenue attributable to passenger services, there was no
corresponding process or system in place to track complete actual unit costs
related to the management of these services.

iii) A comparison of actual passenger revenue and estimated passenger costs

revealed that the passenger revenue generated cannot cover the estimated
operational costs resulting in revenue losses of approximately UGX.1.179Bn in
the period audited.

iv) The budgeted cargo freight volume in the period reviewed totaled 1,318,066
tons although URC fell short of this target, transporting only 689,908 tons. This
represents a significant shortfall of 47.66% compared to the projected volume.

v) Despite the availability of demand, I noted URC's inability to fulfil the entire
demand for import and export freight services. URC only delivered 255,527
Metric Tonnes (MT) out of 411,837MT of orders, equating to 62% of confirmed
import and export cargo orders.

vi) Out of 1,420 wagons owned by URC, during the wagon census conducted in April
2023, only 646 were fit (in good condition) while 774 were not in good condition
of which 198 were scrap. Out of 51 locomotives owned, only 11 were active.
Only 2 ferries/motor vessels out of 5 were in use.

vii) The maintenance budget for rolling stock and permanent ways was funded by
only 35%. In addition, maintenance schedules were not adhered to as
maintenance was reactive subject to availability of funds.

viii) A review of train schedules from January 2022 to June 2023 revealed that only
735 trains (67%) of the 1,100 recorded trips departed on time, 58 trains (5%)
departed early, 200 trains (18%) were delayed, and 107 trains (10%) were not

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 deployed as planned. The train delays were majorly due to limited crew,
unavailability of fuel, and locomotive failures, among others.

ix) A complete database of customer complaints could not be obtained as the

resolution of complaints was done on a one-on-one basis between the client and
their relationship manager. However, out of the sampled 8 customer complaints,
5 were related to delayed cargo delivery. Additionally, I noted that there was low
customer retention.

x) URC uses translogic system based in Kenya, to monitor cargo and train
movements, a system inherited after the Rift valley Railways (RVR) concession.
Control officers manually update train arrival times on manual control charts
after phone communications with locomotive drivers.

xi) There were staffing gaps of 404 of which 297 (73.5%) were in the technical
departments of Mechanical and Civil Engineering as well as Operations which
resulted in inadequate skillset to run critical components of railway services.

Key Recommendations

I advised the Accounting Officer to;

i) Engage the Ministry of Works and Transport and the Ministry of Finance,
Planning and Economic Development to secure funding to increase the
availability and variety of specialized rail transportation wagons to meet customer
demands and reduce revenue loss due to unmet cargo orders.

ii) Implement a dynamic budgeting model that incorporates past performance data
to create more accurate and realistic passenger and cargo service targets.

iii) Establish a comprehensive cost-tracking system for tracking complete actual

operational costs associated with passenger and cargo services to enable a more
accurate assessment of profitability and cost-efficiency. This will facilitate the
identification of cost drivers and potential cost-saving opportunities.

iv) Develop and implement strategic plans to revamp and upgrade ferry services to
take advantage of potential benefits or opportunities within the regional
transportation network across Lake Victoria.

v) Establish a structured and regular maintenance schedule for railway

infrastructure to prevent degradation and ensure operational reliability.

vi) Establish a centralized system for recording, tracking, and resolving customer
complaints. Regularly analyze customer feedback to identify areas for
improvement and communicate proactively with passengers regarding delays
and service disruptions.

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 vii) Prioritize investment under the AfDB Project to modernize train control, cargo
monitoring, and communication systems.

viii) Consider recruiting qualified personnel to fill critical vacancies in the technical
departments, particularly in Mechanical and Civil Engineering as well as
Operations.

Overall Audit Conclusion

The URC faces numerous challenges that affect its ability to provide reliable and
effective railway passenger and cargo services. These issues, which cut across multiple
areas, include the poor condition of railway infrastructure and rolling stock, inadequate
customer service mechanisms, lack of management information systems, limited staff
capacity, inadequate maintenance and stakeholder coordination. To address these
challenges and improve the performance of URC, a holistic approach encompassing
enhanced resource allocation, robust training and capacity-building programs, improved
asset management and maintenance and strengthened stakeholder coordination is
essential.

3.1.18 The Local Economic Growth Support Project Implemented by the Ministry of
Local Government and beneficiary District Local Governments

Introduction

The Local Economic Growth Support (LEGS) Project was initiated in 2019 to enhance
agricultural production and productivity and improve household income and livelihoods
through investments in water and market access infrastructure, agricultural value chain
development and enhanced access to rural financing.

The Project which was implemented by the Ministry of Local Government as the lead
Executing agency supported 17 Districts to rehabilitate community access Roads and
construct Market Facilities, Agro-Processing Facilities, Bulking and Storage Facilities, Milk
Collection Centres, Infrastructure to provide Farmers with Water for Production and
Consumption among others. The project also enabled farmers to access affordable Rural
Financing for Agro-Inputs, Value Addition Technologies, Bulk Transport Facilities and
Machinery.

I conducted a Value for Money Audit to assess the extent to which the implementation
of the LEGS project by the Ministry of Local Government has delivered the intended
outputs.

Key Findings

By 30th June 2024, the project was able to complete some infrastructure projects as
planned and these are: 2 valley dams, 3 piped water systems, 157km of Community
access roads, 2 multi-purpose bulking centres, 1 milk collection centre, 4 Agro
Processing Facilities and Restoration of natural resources in Kibuku, Kumi and Kyenjojo.
The project also completed training of 150 artisans on construction of Biogas units,

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institutional energy saving cook stoves and molding of household energy saving cook
stoves and 90 technicians were trained in artificial insemination techniques. Additionally,
247 groups across the country benefited from component B of the project receiving a
total of UGX.13.754Bn through Islamic financing.

Key Findings

However, I also established that there were areas that require improvement, as
highlighted below:

i) There was delayed completion of infrastructure projects and this affected: all 6
irrigation schemes and valley dams planned for completion by 30th June 2024, 10
out of 13 projects for water for domestic use, 32 out of 44 planned projects for
post-harvest handling. Additionally, 120 out of a target of 210 technicians were
not trained in Artificial Insemination techniques.

ii) The project did not set up community management committees for 5 Road works
in Katakwi, Gomba, Alebtong and Nakaseke. Similarly, the projects had not set
up Water User Associations, Water Boards and partnerships with the private
sector to sustainably run the project after handover. This affected ownership of
the projects among the surrounding communities to guarantee sustainability of
the roads.

iii) I noted that fees were not being collected from the users of completed storage
and bulking facilities to sustain maintenance of the facilities. There were also no
MoUs signed with the users to indicate their responsibilities towards
sustainability.

iv) I noted that, due to delays in accountability, funds worth USD.6Mn for islamic
financing had not yet been disbursed to Micro finance Support centre by 30th
June 2024; five years after project commencement. The implementation of
project activities was thus curtailed. As a result, appraised applications
amounting to UGX.18.969Bn from 314 groups remained unfunded as 30th June
2024.

v) In the FY 2019/20, the project spent UGX.3.28Bn which was deemed ineligible.
Although, the money was later refunded to the LEGS project account on 7th
September 2021 which was more than 2 years after disbursement, it denied bona
fide applicants the opportunity to benefit timely from the project. It also led to
the withholding of disbursements by IsDB pending refunds of the affected funds.

vi) Beneficiary groups experienced delayed processing of their applications for

financing with delays ranging from 6 months to 2 years, contrary to the
recommended 21 days.

vii) As at 30th June 2024, an amount of UGX 10.1Bn was outstanding in on lent loans
of which UGX.4.61Bn (46%) related to overdue loan amounts for periods ranging

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 from a month to over a year. There is a risk that these amounts may not be paid
back thereby affecting the revolving and availability of funds to other applicants.

viii) From the LEGS loans collection report, as at 30th June 2024, MSC had collections
totalling UGX.5.27Bn out of the total disbursed loans of UGX.13.75Bn. These
collections were not re-disbursed as a revolving fund despite there being 314
groups from various districts which had applied for loans but had not been
financed.

ix) Interest worth UGX.270.2M was charged to the final beneficiaries contrary to
Islamic financing guidelines.

x) I noted that MSC in some instances directly selected, appraised and disbursed
funds to 26 groups amounting to UGX.1.42Bn in Buikwe, Nwoya and Alebtong
districts without the involvement of the district team.

xi) I also observed that the project spent UGX.1.16Bn over a period of 3 years to
undertake a mid-term evaluation of the project. However, it had not produced a
report showing the level of achievement of project outcomes and objectives.

Key Recommendations

I advised the Accounting Officer of the Ministry of Local Government to;

i) Support and skill the procurement department to ensure that they can deliver all
planned procurements on time.

ii) Prevail over contractors who have surpassed project completion deadlines.

iii) Ensure that, for all interventions of the ministry, adequate consultations are
undertaken with all key stakeholders to avoid costly changes to on-going
projects.

iv) Ensure that all procured AI kits are delivered to the trained technicians for use

v) Undertake assessments of the need for refresher training and support of the
trained techniques to ensure that skills acquired are not lost overtime.

vi) Expedite the procurement and distribution of motorcycles to cooperatives as

planned.

vii) Ensure sustainability by formation of all Community user committees for all roads
and water sources constructed and conduct regular monitoring and support to
enhance their effectiveness.

viii) Support MSC to recover long outstanding loans and increase uptake through
revolving the recovered amounts.

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 ix) Institute a system of collecting data to evaluate project outcomes.

x) Dedicate specific staff to perform loan appraisals, monitoring, Islamic finance

training and sensitisation in the underserved districts. The training consultant
(Islamic University in Uganda) should provide the groups not yet funded with the
necessary support to enable them to qualify for loans under the project.

xi) Make deliberate efforts to enhance loan disbursement to under-served districts.

For projects not meeting the criteria, MSC should liaise with the District
Community Development Officers to support the groups and prepare them to
qualify for funding.

Overall Audit Conclusion

The project experienced delays towards the achievement of many planned outputs. By
30th June 2024, many infrastructure projects had not been completed while some had
not yet commenced. Rural affordable financing to farmers’ groups was also delayed as
guidelines were not followed, lent funds were not recovered, and there were delays in
processing applications, while the funds recovered were not lent to other applicants.
This implies that, for the five years of the project from 2019/20 to 2023/24, intended
beneficiaries continued to experience key bottlenecks which the project set out to
address such as limited availability of water for consumption and production, challenges
in post-harvest handling, access to markets and accessibility to affordable financing.

As a result of the failure to undertake the Mid-Term Evaluation, the project was not able
to institute timely measures to address its implementation challenges which eventually
necessitated a project extension up to December of 2025. The project management
needs to institute measures to fast-track the implementation of all remaining activities to
ensure realization of the intended benefits to the target beneficiaries.

3.1.19 Scaling and Commercialization of Research Outputs in Makerere, MUST and

Busitema Public Universities

Introduction

Research plays a crucial role in addressing societal challenges by converting knowledge

into technologies and strategies. The NDP III emphasizes the importance of Research
and Innovation to foster economic growth, enhance competitiveness, and contribute to
the achievement of the Sustainable Development Goals (SDGs). Public universities, as
outlined in Uganda’s Universities and Other Tertiary Institutions Act, are responsible for
education, research, and learning. Despite the various initiatives in promoting research
in universities the translation of research outputs into scalable innovations from
universities remains low.

This performance audit assessed the effectiveness of public universities in Uganda in

transforming research outputs into scalable innovations for commercialization and policy
change. The audit focused on evaluating the research project closure procedures,

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dissemination activities, intellectual property protection, and incubation frameworks to
determine their role in enabling the scaling of innovations.

Key Findings

The findings below highlighted several challenges that hinder the successful
transformation of research into commercially viable innovations and policy solutions;

i) The audit revealed that public universities lacked centralized systems for tracking
completed research, except for Makerere University’s recent initiative in the
Research Innovation Fund (MAK-RIF), leading to difficulty in identifying research
outputs with potential for innovation and scaling.

ii) The post-research management work plans were lacking due to uncertainties
about the impact and funding for scaling, causing valuable research findings to
remain underutilized, particularly at Makerere University, where externally
funded projects are left unmanaged by the institution.

iii) Research dissemination processes were fragmented across university units, with
outputs primarily viewed as the property of individual researchers rather than
being systematically shared and promoted by the universities. Universities were
not actively promoting or disseminating research findings to potential users or
markets. The lack of coordinated dissemination has limited engagement with
industry partners and relevant stakeholders, mainly remaining confined within
the academic domain and thus hindering the uptake of research findings.

iv) Intellectual property (IP) management was another challenge, with university
policies on IP rights and benefit-sharing limiting innovation and external
collaborations. The policies were seen as regressive, preventing the promotion of
individual innovations.

Key Recommendations

I advise and recommend that public universities improve research output management
by;

i) Adopting and updating software systems for research output management,

tracking, and reporting.

ii) Developing closure frameworks for both internally and externally funded
research.

iii) Setting realistic research project timelines, addressing procurement and ethical
review delays that feature majority of the research.

iv) Creating centralized strategies for research output management and

dissemination that integrate efforts at various units of the university.

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 v) Establish standardized IP ownership policies and provide IP protection training to
encourage and promote awareness amongst the innovators.

vi) Offering targeted training on research dissemination and presentation for

broader audiences. Explore additional funding for dissemination activities.

vii) Implement research capacity-building programs to foster a balanced research

environment.

viii) Fostering collaboration with the private sector, media, government, and industry
for commercialization and incubation.

ix) Invest in innovative ecosystems and raise awareness about incubation processes.

Overall Audit Conclusion

Overall, the audit concludes that weaknesses in research commercialization practices,

such as poor coordination, limited institutional involvement in dissemination, and
restrictive IP policies, prevent public universities from exploiting the full potential of
research outputs. The current researcher-led model of scaling innovations, coupled with
limited financial and structural capacity, hinders the universities' ability to drive scalable
solutions and contribute to national development goals.

3.1.20 The effectiveness of Local Revenue Mobilization and Collection in selected

Municipalities in Central Region

Introduction

Local Governments (LGs) are mandated by the Local Government Act, Cap 138 to collect
revenue which is used to implement service delivery activities. Local revenue refers to
the income collected by Local Government entities through various taxes, fees, and
levies that are imposed within their jurisdiction to finance their operations and services.

Local revenue mobilization refers to the process of organizing or preparing taxpayers

through raising awareness about taxes to generate funds to implement planned service
delivery activities, while Local revenue collection is the process of collecting money owed
to the Local Government in line with the applicable tax laws.

Local Governments have continued to grapple with local revenue shortfalls

consequently, the Ministry of Local Government introduced interventions through
automation of tax administration system which has seen an improvement in local
revenue collections.

The team undertook an analysis of the local revenue collections in four revenue sources
i.e. Business licences, property tax, Local service tax and Local Hotel tax in six selected
municipalities for the period between FY 2020/2021 to FY 2022/2023 and noted an
improvement in local revenue performance from 52% to 68%, as shown in the table
below;

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Table 50: Performance of Local revenue
Local revenue Financial Years Total
sources 2020/21 2021/22 2022/23 performance
(UGX ’Bn) (UGX ’Bn) (UGX ’Bn) (UGX ’Bn)
Business Budget 10.250 8.807 8.544 27.601
Licenses Actual 4.618 6.923 6.599 18.140
(A)
Variance 5.632 1.884 1.945 9.461
%age 45 79 77 66
Property Tax Budget 8.965 13.018 17.152 39.136
(B) Actual 4.505 8.454 10.242 23.201
Variance 4.460 4.564 6.911 15.935
%age 50 65 60 59
Local Service Budget 2.011 2.622 3.422 8.056
Tax (C) Actual 1.899 2.593 3.067 7.559
Variance 0.112 0.030 0.355 0.497
%age 94 99 90 94
Local Hotel Tax Budget 0.356 0.918 1.404 2.679
(D) Actual 0.162 0.608 0.934 1.705
Variance 0.194 0.310 0.470 0.974
%age 46 66 67 64
Total Total 21.583 25.366 30.523 77.472
Performance Budget
(A+B+C+D) Total Actual 11.185 18.578 20.842 50.605
Total 10.398 6.788 9.681 26.867
Variance
Total %age 52 73 68 65
Source: OAG analysis

Despite the improvements, the overall performance was low when compared to the
budget.

In light of the above concerns, I conducted a Value for Money Audit to assess the
effectiveness of local revenue mobilization and collection in selected Municipalities in the
central region. These Municipalities include Makindye Ssabagabo, Entebbe, Kira,
Mukono, Nansana and Mityana.

Below is a summary of the key findings

Key Findings

i) The team noted an improvement in revenue collections in the six Municipalities

from UGX.11.185Bn in FY 2020/21 to UGX.20.842Bn in FY 2022/23, representing
a 73% increase which was attributed to the automation of revenue
administration systems. Despite the upward trend, the Municipalities continued
to experience several shortcomings.

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ii) Despite a notable LST performance of 94% posted over the three (3) year
period, I noted that 2 out of the 4 categories of LST were not assessed for tax
purposes in all the six (6) Municipal Councils. This implies that the LST revenue
targets set over the three (3) year period were below the LST revenue potential
of Makindye Ssabagabo, Entebbe, Kira, Mukono, Nansana and Mityana.

iii) For the LST category of self-employed and practicing professionals, the team
noted that in three (3) Municipal Councils of Mityana, Makindye Ssabagabo and
Nansana out of six (6) sampled, LST and trading licenses were not separated at
the point of assessment which complicated the process of confirming whether
LST was either being assessed or adequately collected. I further noted that five
(5) out of the six (6) Municipal Councils based their revenue estimates for LST on
prior year records.

iv) For the persons in gainful employment category under Local Service Tax (LST),
all the six (6) Municipalities lacked adequate records of residents for tax
purposes. As a result, Councils only relied on payrolls submitted by employers to
make assessments.

v) The study noted that the MCs of Makindye Ssabagabo, Kira, Nansana and
Mityana lacked an Enumeration and Registration Committee (ERC) to guide the
enumeration and registration exercise for tax purposes.

vi) The Municipal Councils of Entebbe, Nansana, Mityana and Mukono out of the six
(6) sampled did not fill the Enumeration and Registration of Hotels, Lodges and
Guest Houses (ERHL&GH) forms to capture relevant data such as list of hotels,
number of rooms per hotel/lodge, and chargeable rates.

vii) It was noted that revenue from Boda-boda riders, although gazetted was not
being assessed by the Municipal Councils of Makindye Ssabagabo, Entebbe, Kira,
Mukono, Nansana and Mityana.

viii) The team noted that three (3) Municipalities of Mukono, Nansana and Makindye
Ssabagabo did not plan to conduct sensitization at the Division level and
consequently, there was a 11% decline in the number of taxpayers registered
annually from 39,684 in FY 2020/21 to 28,511 in FY 2021/22 representing a
taxpayer decline of 11,173 (28%)

ix) Five (5) out of the six (6) Municipal Councils sampled had gaps in infrastructure
meant to facilitate revenue mobilization and collection. Specifically, some
Divisions did not have vehicles or motorcycles to facilitate Town Agents in
enforcement thereby affecting enforcement activities.

x) The arrears of revenue for the Municipalities of Makindye Ssabagabo, Entebbe,

Mukono, and Nansana out of the six (6) MCs sampled over the three years under
review had an upward trend. Analysis of the data shows that by the end of FY
2022/2023, the MCs had recovered less than 50% of their respective cumulative
arrears over the three-year period under review. We also noted that the

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 Accounting Officers did not have a clear strategy on how to recover these
arrears.

Key Recommendations

I advised the Accounting Officers of Makindye Ssabagabo, Kira, Mukono, Nansana,

Entebbe and Mityana to;

i) Ensure that enforcement budgets are funded as approved by Council to ensure

uninterrupted mobilization and collection activities.

ii) Formulate and operationalize the LST assessment committee to obtain data
about persons in gainful employment, self-employed professionals and artisans
eligible for LST, using the Local Councils (LCI & LCII). In addition, the
Accounting Officer should ensure that no practitioner is allowed to undertake any
work within the LG without proof of LST payment.

iii) Develop a training program to equip Town Agents on the basic principles of tax
administration to maximize revenue assessment. In addition, the Accounting
Officer should engage the MoPS to consider revising the structure to provide for
additional Town Agents to support assessment activities.

iv) Engage the MoLG and other key stakeholders to develop a comprehensive
database to curb individuals who evade taxes by changing their area of
operation.

v) Formulate and operationalize the ERC to obtain data about persons in gainful
employment, self-employed professionals and artisans eligible for LST.

vi) Come up with practical strategies on how to obtain data on hotels/lodges and
liaise with other stakeholders such as the Local Councils (LC’s), Gombolola,
Internal Security Organization (GISO) to support the enforcement activities.

vii) Seek clarity from the Attorney General on whether the presidential directive is
applicable to municipalities outside the KCCA jurisdiction. In addition, the
Ministry of Local Government should engage cabinet on the matter to provide
clear guidance;

viii) Engage Council to devise strategies to ensure that adequate revenue is realized
to fund mobilization and collection activities.

ix) Expedite the retooling of the revenue department to support the revenue
mobilization and collection activities with the support received from GKMA
Program.

x) Collaborate with the Councils to come up with strategies aimed at recovering the
outstanding arrears. In addition, management should make a comprehensive
assessment/revaluation of the outstanding balances to ascertain the collectability

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 of the arrears and establish the actual position of the outstanding arrears for the
MC.

Overall Audit Conclusion

The study shows that the effectiveness of local revenue mobilization still faces a number
of challenges in local revenue enumeration, assessment, sensitization, enforcement and
collection in the selected Municipalities of Makindye Ssabagabo, Entebbe, Kira, Mukono,
Nansana and Mityana which have negatively continued to affect the achievement of
planned revenue targets. It had been envisioned that local revenue projections were
bound to improve as a result of increased level of business activities, local development
initiatives, expansion of real estate development, industrialization and the increased
rural-urban migration. With this potential, the Municipal Councils can still narrow the
performance gaps identified by implementing the proposed recommendations to address
the challenges.

3.1.21 Follow up Report on the Value for Money Audit on Enforcement of

Occupational Safety and Health Activities by the Department of Occupational
Safety and Health under the Ministry of Gender, Labour and Social
Development

Introduction

In December 2016, the Auditor General submitted a report to Parliament regarding the
enforcement of Occupational Safety and Health (OSH) by the department of OSH in the
Ministry of Gender Labour and Social Development (MoGLSD). The report provided
detailed findings with underlying causes and recommendations to facilitate effective
enforcement of OSH activities at workplaces in the country. The highlighted performance
gaps in OSH enforcement were identified in the systems and processes such as workplace
registration and equipment certification, workplace inspection, monitoring and
coordination mechanisms, and OSH training and awareness.

Scope of the follow-up

The previous audit covered three (3) Financial Years (FYs) starting from 2012/13 to
2014/15 and was published in 2016. The follow-up thus evaluated progress made by the
Ministry of Gender, Labour and Social Development (MoGLSD) and roles played by other
stakeholders such as the Public and Private workplaces, and worker’s representatives in
implementing audit recommendations from 2016 to-date.

Summary of the extent of implementation of the Recommendations in the

Previous Audit Report by the MoGLSD

I noted that MoGLSD has made efforts to implement the Auditor General’s
recommendations, which resulted in policy review and development, to facilitate
effective enforcement of OSH to improve the working conditions for all Ugandans in the
country. Out of eighteen (18) audit recommendations made in my 2016 report;

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i) 1 (6%) was fully implemented;
ii) 6 (33%) were partially implemented; and
iii) 11 (61%) of the recommendations were not implemented

MoGLSD has registered some progress in the enforcement of occupational safety and
health at workplaces as indicated below;

i) Developed and in the process of reviewing more Laws, Policies, guidelines and
Regulations to improve enforcement of Occupational safety and health at
workplaces in the country.

ii) Upgraded the Occupational Safety and Health Management Information System
(OSHMIS) to an online web-based system with five modules streamlining OSH
processes to enable generation of equipment and plant examination certificates,
building and architectural plan approval, and generation of workplace inspection,
plant and equipment examination reports.

iii) Created storage space for all available inspection equipment and an inventory
management system that provides for authorization of equipment use to guard
against misuse through damage, theft or loss.

iv) Recruited OSH inspectors to enhance the enforcement of OSH Act requirements
at workplaces. The staffing increased from eighteen (18) in 2016 to twenty-five
(25) inspectors representing an increase of 38.9% by 2024. This has increased
inspections and registration of workplaces in the country over the follow-up
period to 2,149 workplaces. In addition, non-taxable income through workplace
registration, plant and equipment examination/ certification has grown from an
average of UGX.0.3 Bn to UGX.1.2 Bn annually during the financial years under
audit.

v) Promoted OSH awareness and sensitization in the country annually on every 28th
April during the national celebrations of the world day for safety and health at
work. This has created some level of awareness about the requirements of the
OSH Act, Cap. 231 and its regulations among a section of employers in the
country.

vi) Procured inspection equipment/ tools during the follow-up period to facilitate
effective and efficient workplace inspection, plant and equipment examination to
enable making of evidence-based recommendations for corrective actions by
inspected workplaces in the country.

However, there are still some unimplemented recommendations such as;

i) Creating extensive and sustained sensitization about the importance of

workplace registration and equipment certification.

a) The follow-up audit noted that workplace registration was still low, as
2,149 workplaces had been registered at the end of 2023, representing

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 0.215% of the estimated one million workplaces in the country, which is
a 0.1% increase from the 2016 reported statistic of registered
workplaces.

b) There was an increase in delays to renew workplace registration

certificates since 2016, which ranged from 1-300 days to the current 1-
931 days representing a 210% increase.

ii) Developing and implementing systematic risk assessment criteria to identify and
assess OSH hazards and prioritize workplaces for inspection to enable the
Ministry to provide assurance that the available resources are used efficiently to
carry out the most critical inspections, and

iii) Putting in place mechanisms to maximize the number and impact of workplace
inspections through informed planning for inspections and equipment. There was
lack of capacity, for example;

a) The current ratio of inspectors to workers in Uganda is 1:452,000

contrary to the recommended 1: 40,000 ratio of inspectors to workers as
per the International Labour organization (ILO) standard.

b) Out of 102 required inspection equipment, the department possessed

only 16 (15.7%) equipment with 86 (84%) critical inspection equipment
missing to support evidence-based inspections. Out of the 25 staff, only 1
senior occupational hygienist had training in use of tools.

c) Out of a sample of 94 Government owned lifts, 39 (41%) had never been

examined and certified for use whereas 55 (59%) had delays of
certification renewal ranging from 12 to 156 months contrary to the
recommended bi-annual certification period. Similarly, out of the 160
privately owned lifts, 23 (14%) had been examined and certified for use,
12 (8%) had never been examined and certified at all, and 125 (78%)
had delays of certification renewal ranging from 12 to 144 months.

iv) Out of the upgraded four (04) OSHMIS system modules, only 01 (workplace
registration and certification) was fully operational and the 03 had technical
challenges. There was also low utilization of the OSHMIS by inspectors to
generate inspection reports due to inadequate training by the consultant and
limited enforcement by management.

v) Despite the strategic intent set forth in the MoGLSD Strategic Plan (2020/21 -
2024/25) and recommendations from the 2016 Auditor General’s report, MoGLSD
faces substantial challenges in finalizing critical OSH legislation and regulations.
By the time of audit, only 14% of the proposed legislations have been enacted,
with 49% in draft stages awaiting executive approval and 37% still uninitiated.

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 Overall Conclusion

Therefore, the Auditor General's 2016 recommendations remain largely unimplemented,

and consequently, performance risks continue to manifest as evidenced by increased
occupational accidents and injuries, unsafe working environment, inadequate
enforcement of Occupational safety and Health Act Cap. 231 among others. Although
MoGLSD has made progress by upgrading its information systems, recruiting additional
inspectors, and developing policies and guidelines, the absence of finalized OSH
legislation limits its capacity to enforce compliance effectively.

3.1.22 Follow up Report on the Value for Money Audit on the Implementation of Fuel
Marking Programmed by the Ministry of Energy and Mineral Development

Introduction

In March 2014, the Auditor General submitted a report to Parliament on the

Implementation of the Fuel Marking Programme (FMP) by the Ministry of Energy and
Mineral Development (MEMD). The report provided detailed findings with underlying
causes and recommendations to facilitate effective implementation of the fuel marking
programme in the country. The audit highlighted performance gaps in the FMP
implementation in relation to the programme systems and processes such as import
inspection, procurement of marking agent, field monitoring of fuel outlets, marking fees,
stakeholder coordination, Petroleum information system, standards development,
availability and maintenance of the laboratory equipment.

Scope of the follow-up

The previous audit covered three (3) Financial Years (FY) starting from 2010/11 to
2012/13 and was published in 2014. The follow-up audit evaluated progress made by
the MEMD and roles played by key stakeholders such as the Uganda National Bureau of
Standards (UNBS) and Uganda Revenue Authority (URA) in implementing audit
recommendations from 2014 to 2024.

Summary of the extent of implementation of the recommendations in the

previous Audit Report by MEMD

I noted that MEMD made efforts to implement the AG’s recommendations that resulted
in policy review and development to facilitate effective implementation of FMP in the
country. The implementation status for the twelve (12) audit recommendations made in
the AG’s report of 2014, is indicated in the Figure below;

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Figure 8: Implementation Status of FMP Recommendations

Source: OAG analysis of MEMD responses and supporting evidence

It can be observed from the figure above that 8% of the recommendations from the
AG’s report had been overtaken by events (no longer practicable), 33.3% partially
implemented, and 58.3% were fully implemented.

The follow up further noted persistent weaknesses in the implementation of the FMP
such as failure to conduct investigations on failed tests, non implementation of some
Modules in the National Petroleum Information System (NPIS), Non-functional key
equipment at the central testing lab, and poor laboratory conditions at Busia, Malaba
and Mutukula border points.

Despite the above weaknesses, MEMD has registered progress in the implementation of
the FMP. I noted that MEMD;

i) Routinely conducts on-spot fuel monitoring at various petrol stations in the

country. As of 30th June, 2024, out of 5,118 retail station outlets recorded in the
data system, the monitoring coverage was on average 87.5% per month. In
addition, the Programme conducts fuel quality tests at the designated border
entry points, namely, Busia, Mutukula and Malaba, to ensure that the imported
fuel conforms to the required quality standards.

ii) Procured a marking agent SICPA Global Fluids Integrity in accordance with the
PPDA Act Cap. 205 to carryout marker doping of Petrol (PMS), Diesel (AGO) and
Kerosene (BIK) destined for the local market. Therefore, the compliance level
with respect to Petrol (PMS) and Diesel (AGO) has increased at an average of
99.2% for monitoring done at least once a month according to the annual
performance report during the FY 2023/2024.

iii) Developed and operationalised the National Petroleum Information System

(NPIS) that is used by the Ministry to capture data on downstream petroleum
activities to address stakeholder information needs.

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 iv) Developed 596 standards in consultation with UNBS that have been gazetted and
operationalized to aid in the Fuel marking processes. Some of the developed
standards include Standard Test Methods for Chemical Analysis of Copper
Alloys, Standard Test Methods for Copper in Water, Standard Practice for
Sampling and Handling of Fuels for Volatility Measurement, among others.

v) Acquired a laboratory recognition certification (No. UNBS/LRS/0030) from UNBS

on 25th July, 2022 to demonstrate the technical competence and operation of a
laboratory quality management system of the MEMD-downstream petroleum
testing laboratory to perform tests.

vi) Procured and equipped ten (10) mobile testing vehicles to conduct on spot
sample testing of fuel quality at various fuel retail stations and calibration of fuel
pumps to ensure accuracy of measurements and value for money.

vii) Equipped the central laboratory with the necessary equipment and apparatus to
the acceptable standards and this has facilitated the testing of petroleum
products leading to a National average compliance rate of 99.2% for monthly
monitoring as of 30th June 2024.

Overall Conclusion

The MEMD has demonstrated commitment to addressing the AG’s recommendations

from 2014, with notable progress in the implementation of the FMP. The report reveals
that out of twelve recommendations, seven (58.3%) were fully implemented, four
(33.3%) partially implemented, and 1 (8%) was overtaken by events.

This indicates a significant effort by MEMD to enhance the effectiveness of the FMP,
despite some areas requiring further attention such as failure to conduct investigations
on failed tests registered in the central laboratory for the products that had initially
passed the preliminary tests, inefficiency of the NPIS and poor laboratory conditions at
the border points. Overall, the MEMD's actions reflect a strong dedication to improving
fuel quality and regulatory practices. However, continued efforts are necessary to fully
implement all recommendations and address any remaining gaps to ensure the
Programme's sustained success and effectiveness.

3.1.23 Follow up Report on the Value for Money audit on the Management of
Accommodation by Uganda Police Force

Introduction

In December 2012, the Office of the Auditor General (OAG) issued a report on the
Management of Accommodation by Uganda Police Force (UPF).

Key issues noted and recommendations made in the said report included among others,
the insufficient residential and office accommodation for the Police staff, which stood at
a ratio of 1 house accommodating 2 police officers with most families sharing small
rooms in housing units and uniports which are dilapidated. In addition, the hygienic

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conditions in most of the places of accommodation were found to be disgraceful,
characterized by old faulty sewerage and water systems, poor electrical installations and
absence of systematic garbage disposal mechanism.

Scope of the follow-up

The previous audit covered three (3) financial years starting from July 2008 to June
2011 and the report was published in February 2012. The overall objective of the follow
up was to assess the extent to which UPF acted on the findings and implemented
recommendations in the previous audit report of the management of accommodation
challenge from 2012 to date (2024).

Summary of the extent of implementation of the recommendations in the

previous Audit Report by the UPF

I observed that the UPF has made efforts towards implementing the AG’s
recommendations regarding the management of Accommodation in the Police Force. I
noted that all the twelve (12) audit recommendations made by the AG in his previous
report have been partially implemented.

The following achievements have been observed following audit review of the previous
report issued in 2012 towards management of accommodation in the UPF;

i) As of November 2024, the UPF had made significant strides in addressing the
housing crisis in the Police Force. This progress is evidenced by the completion of
numerous housing projects, including 420 apartments in Naguru and additional
units across various regions.
ii) The reliance on in-house engineering support from the Police Force has notably
accelerated project timelines, reducing construction periods from 2-3 years to 6-
8 months.

However, despite these advancements, challenges still exist in regard to the provision of
housing accommodation in the UPF, as explained below;

i) At the time of reporting (November 2024), 53.1% of the 38,460 entitled officers
had no adequate accommodation. Consequently, many officers were forced to
live in substandard conditions that pose safety risks, highlighting a persistent
housing crisis exacerbated by ongoing recruitment efforts aimed at achieving an
UN-recommended police-to-population ratio.

ii) Funding constraints continue to impede progress, with delays in disbursement

affecting the completion of vital construction projects. The need for more
housing units is urgent, particularly as recruitment efforts continue to increase.

iii) While initiatives have been launched to clear unauthorized occupants from
barracks and improve management practices through enforcement of Standard
Operating Procedures, these measures have not fully resolved the
accommodation issues faced by police personnel.

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 Overall Conclusion

The management of accommodation for police officers in Uganda reflects a continuous

progress in addressing key challenges to achieving their desired goals. The report
reveals that all the 12 key recommendations (100%) were partially implemented.

While the UPF has demonstrated a commitment to improving housing conditions through
ongoing construction and renovation projects, significant gaps remain. Addressing the
funding challenges and enhancing management practices are crucial in ensuring all
entitled officers access safe and adequate housing.

Continued investment and strategic planning are essential to meeting the growing
demands of the force and improving the overall welfare for police personnel in the
country.

3.1.24 Follow up Report on the Status of Implementation of Audit Recommendations

for the Value for Money audit on the Management of the Loan Portfolio by the
Microfinance Support Centre

Introduction

In March 2014, the Auditor General published a report on the Management of the Loan
Portfolio by the Microfinance Support Centre (MSC) Ltd. The report highlighted key
findings and provided recommendations relating to the appraisal of special loan
programmes, monitoring and tracking of loans, loan defaults, recovery of delinquent
loans, portfolio growth, cost benefit analysis of operating zones, capacity building for
MSC clients, and follow on loans.

The OAG decided to undertake a follow-up of the 2014 Audit to assess the extent of
implementation of the audit recommendations, given that the extent to which MSC
addressed the issues raised would have a bearing on improvements in the
implementation of their mandate of extending affordable Micro-credit funds to qualifying
Ugandans with a focus on Agriculture and the active poor and, offering Business
Development Services to build capacity in enterprise and financial management.

Summary of status of implementation of Auditor General’s Recommendations

of the Previous Audit Report and actions taken by MSC

I noted that MSC had made efforts towards implementing the Auditor General’s
recommendations, resulting in improvements in the Performance of the Loan Portfolio at
Microfinance Support Centre. Out of the 18 key audit recommendations made in my
2014 report, 3 (17%) were fully implemented; 7 (39%) were partially implemented; 4
(22%) were not implemented and, 4 (22%) were overtaken by events

A summary presentation of the status of implementation of the audit recommendations

is indicated in the Figure below;

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Figure 9: Implementation of recommendations by Microfinance Support Centre

Source: OAG analysis and verification of MSC responses and supporting evidence

Although there was improvement in several areas including a reduction in the number of
written off loans, enhanced record keeping by the SACCOs, development of field visit
guides, improved cost benefit analysis and increased capacity building for SACCOs, I
noted performance gaps and weaknesses in the management of the loan portfolio at
MSC as follows;

i) MSC set new targets to increase the loan portfolio from UGX.180Bn in 2020/21
to UGX.675Bn in 2023/24. The Loan portfolio instead dropped significantly from
the realised amounts of UGX.104.65Bn (57%) in the FY 2020/21 to
UGX.159.11Bn (23.5%) in 2023/24.

ii) The tracking of the recovery status of loans from various categories such as
special loans, secured loans, and unsecured loans is still not effective.

iii) Although the credit policy provides for unrecovered loans exceeding 90 days to
be forwarded to Debt recovery for legal action, we noted significant loans with
arrears of periods ranging from 670 to 1,720 days.

iv) Although MSC had employed various strategies to recover previously written off
loans, the recovery was still low, averaging 5% per year. Should this rate persist,
it could take MSC approximately 19 years to recover the entire amount of
UGX.18.814Bn that was written off, assuming no further write-offs in the
subsequent years.

v) Client feedback and reporting back mechanisms need improvement as clients do

not receive written advisory notes following MSC's monitoring visits, instead,
findings and key issues on their loan uptakes are discussed verbally with
members, with no formal feedback provided to aid tracking of progress made by
the SACCOs.

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 vi) I noted cases of clients that obtained two or more follow-on loans whilst having
other loans in defaults, contrary to the guidelines. In one region sampled, for the
month of September 2024, 15 clients had 2 and/or more loans in default
amounting to UGX.1.564Bn.

Specific Recommendations

The Accounting Officer of the MSC should;

i) Prepare an action plan to address and implement all recommendations that were
partially and not implemented.
ii) Continue with implementation of the agreed actions that have led to improved
management of the Loan Portfolio at MSC.

3.1.25 Follow up Report on the Status of Implementation of Audit Recommendations

on the Value for Money audit on the Management of Sewerage in Urban Areas
by National Water and Sewerage Corporation

Introduction

In March 2015, the OAG issued a VFM Audit Report on the Management of Sewerage in
Urban Areas by National Water and Sewerage Corporation (NWSC) and submitted the
report to Parliament. Key issues noted and recommendations made in the said report
related to the access to sewerage services, quality of the effluent discharged, effluent
discharge permission, maintenance of treatment infrastructure (Inspection of the
Treatment Infrastructure, Maintenance of operational records/data) Engagement and
Coordination with other stakeholders.

The OAG resolved to undertake a follow-up of the 2015 audit to examine the corrective
actions taken by NWSC to adequately address the recommendations and remedy the
underlying problems that were identified during the previous audit. Following that,
recommendations were made with the goal of addressing any outstanding issues that
had been identified.

Scope of the follow-up

The previous audit covered the three (3) FYs 2011/12 to 2013/14. The follow-up hence
evaluated progress made by the NWSC in implementing audit recommendations from FY
2014/2015 to-date.

Summary of status of implementation of Auditor General’s Recommendations

of the Previous Audit Report and actions taken by NWSC

The NWSC made efforts to implement the Auditor General’s recommendations, resulting
in improvements in the management of sewage services in urban areas. Of the six (06)
key audit recommendations:

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i) 5 (83%) recommendations were partially implemented, while
ii) 1 (17%) recommendation regarding obtaining of effluent discharge permits was
not implemented by the time of audit (July 2024).

The following achievements and positive efforts towards management of sewerage

services in urban areas by NWSC have been observed from the follow up;

i) Restructuring the Department of Sewerage Services into a full directorate

charged with the management of sewerage services in the country.
ii) Expansion of the sewerage services infrastructure thus leading to an increase in
sewer connections from 20,355 in FY 2015/16 to 28,703 connections in FY
2022/23.
iii) Improvement in desludging of the pond systems and maintenance of the sewage
facilities.
iv) Obtaining sewage discharge permits for 17.6% of the treatment plants.

Despite the above progress, a few challenges still need to be addressed to achieve
efficient and effective management of sewerage services in the urban areas by NWSC;

i) The effluent discharge from three sewage treatment plants (Mbarara, Masindi
and Hoima) still does not meet the standards for faecal coliforms.
ii) NWSC was unable to secure valid effluent discharge permits for fifteen (15)
sewage treatment infrastructure, representing 83%. There were ongoing
challenges with the storage and easy retrieval of documentation at thirteen (13)
of the plants.
iii) NWSC faces challenges with land encroachment and vandalism of the sewerage
infrastructure.

Overall Conclusion

The management of NWSC has demonstrated commendable commitment in addressing

the AG’s recommendations from 2015 with notable progress made in the management
of sewage services in urban areas. The report reveals that out of the 6 key
recommendations, 83% were partially implemented and 17% not implemented. Overall,
NWSC's actions reflect a strong effort towards addressing the need to efficiently and
effectively manage provision of sewerage services in urban areas in Uganda, however,
continued efforts are still necessary to fully implement all recommendations.

Specific Recommendations

The Accounting Officer of NWSC should;

i) Prepare an action plan on how to address and implement all recommendations

that are partially or not implemented.
ii) Liaise with the Ministry of Water and Environment to secure valid effluent
discharge permits for all sewage infrastructure.
iii) Liaise with KCCA, Local Governments and Ministry of Water and Environment to
ensure full implementation of the recommendations that are collaborative.

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3.1.26 Follow up Report on the Implementation of Audit Recommendations on the
Value for Money audit on the Facilitation and Promotion of Export Trade by
Uganda Export Promotion Board

Introduction

In December 2018, the OAG issued a report on the Facilitation and Promotion of export
trade by Uganda Export Promotion Board (UEPB) and submitted a report to Parliament.
The key issues noted and recommendations made in the said report related to
spearheading efforts to put in place a coordination mechanism with the different sector
players, exploring alternative ways of obtaining information about external markets
rather than relying on Embassies and Missions by regularly subscribing to online market
and buyer information sources, engaging with the relevant stakeholders to ensure that
activities such as evaluation studies and surveys and regular meetings with exporters are
planned for, funded and implemented, developing comprehensive training plans as a
guide for implementing activities aimed at building the capacity of the exporters.

The OAG decided to undertake a follow-up of the 2018 audit given that the extent to
which the Board addressed the issues raised would have a bearing on improvements in
the facilitation and promotion of export trade in Uganda. Following that,
recommendations were made with the goal of addressing any outstanding issues that
had been identified.

Scope of the follow-up

The previous audit covered three (3) FYs 2015/16 to 2017/18 and was mainly done at
UEPB headquarters.

The follow up thus focused on the initiatives undertaken by UEPB in response to

recommendations of the AG in the 2018 Audit report, aimed at facilitating the
development, promotion and coordination of export related activities that support the
development of export trade from 2018 to 2024.

Summary of status of implementation of Auditor General’s Recommendations

of the Previous Audit Report and actions taken by UEPB

It was noted that UEPB had made efforts to implement the Auditor General’s
recommendations, resulting in improvements in Export promotion in Uganda. Out of the
5 key audit recommendations made in the AG’s report of 2018;

i) 1 (20%) were fully implemented.

ii) 2 (40%) were partially implemented.
iii) 2 (40%) were not implemented,

The following achievements and positive efforts towards promotion of export trade
made by UEPB was observed from the follow up;

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i) Export growth (both goods and services) was at an average of 8% per annum
over the past 5-year period (2019 - 2023) from USD.6.171Bn in 2019 to USD.9Bn
in 2023.
ii) The development of a client management system that facilitates online
registration and export readiness assessment of exporters has been implemented
by UEPB.
iii) UEPB has formulated a National Export Coordination Committee with
membership from several MDAs, such as Ministry of Finance and Economic
Development, Ministry of Trade and Industry and Uganda Investment Authority.
iv) Market studies in the Democratic Republic of Congo and South Korea have been
undertaken to assess export promotion and trade opportunities

The above demonstrates the significant efforts by UEPB to pursue initiatives aimed at
promotion of export trade in Uganda, however opportunities still exist for further
improvements. The following challenges are still existent;

i) Barriers to free trade (Market entry) created by Uganda’s target markets like
Kenya and Tanzania for products like milk and sugar have continued to slow
down the country’s production and productivity efforts.
ii) High cost of finance, which makes the cost of doing business high, yet majority
of Uganda’s export businesses are Micro-, small and medium-sized enterprises.
iii) International trade dynamics resulting from effects of COVID-19 pandemic as
well as the geo-political conflicts in Europe and the Middle East.
iv) High transportation costs that majorly affect horticulture exports as airfreight
charges remain relatively high hence making Uganda's products uncompetitive in
the export markets.

Overall Conclusion

The UEPB has demonstrated commitment to addressing the AG’s recommendations from
2018 with notable progress in the implementation of the export promotion and trade
opportunities. The report reveals that out of the 5 key recommendations, 20% were fully
implemented, 40% were partially implemented, and 40% was not implemented.

Overall, UEPB's actions reflect a strong effort towards increasing Uganda’s export trade.
However, continued efforts are necessary to fully implement all recommendations and
address any remaining gaps to ensure the export promotion drive and expansion of
trade opportunities are achieved.

Specific Recommendations

The Accounting Officer of UEPB should;

i) Prepare an action plan to address and implement all recommendations that are
partially and not implemented.
ii) Liaise with Ministry of Trade Industry and Cooperatives (MoTIC), Ministry of
Finance Planning and Economic Development (MoFPED), Ministry of Agriculture
Animal Industry and Fisheries (MAAIF), UNBS and URA to ensure full

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 implementation of the recommendations that are collaborative like improved
quality of exports, provision of export finance and the usage of cheaper transport
routes like the lake and railway lines.

3.1.27 Follow up Report on the Value for Money Audit on the Implementation of the
Vegetable Oil Development Project by the Ministry of Agriculture, Animal
Industry and Fisheries
Introduction

In March 2014, the Auditor General issued a report to Parliament on the implementation
of the Vegetable Oil Development Project (VODP) by the Ministry of Agriculture, Animal
Industry and Fisheries (MAIIF). The report highlighted key issues and provided
recommendations relating to delays in project implementation, delays in disbursement of
funds for project activities, weaknesses in management of the Kalangala Oil Palm
Growers Trust (KOPGT) loan portfolio, provision of production inputs, provision of
extension services, market linkages and adaptive research. The recommendations aimed
at addressing the identified performance gaps to enhance the Project’s performance and
similar future projects implemented by MAIIF.

The Office of the Auditor General (OAG) undertook a follow-up of the 2014 audit report,
to assess the extent of implementation of the audit recommendations to improve the
performance of vegetable oil projects and interventions implemented by MAAIF.
Following that, follow-up recommendations were made to address any outstanding
issues.

Scope of the follow-up

The previous audit covered fourteen (14) financial years starting from 1998/99 to
2011/12 and the report was issued in 2014. The follow-up thus evaluated progress
made by MAAIF, VODP, and its successor projects VODP 2, National Oil Palm Project
(NOPP), National Oil Seed Project (NOSP), and other key stakeholders in implementing
audit recommendations from 2014 to-date.

Summary of the extent of implementation of the recommendations in the

previous Audit Report and actions taken by MAAIF, VODP, VODP 2, NOPP, and
NOSP

I noted that the Ministry, through VODP and its successor projects VODP 2, NOPP, and
NOSP had made efforts to implement the AG’s recommendations. The implementation
status for the seventeen (17) audit recommendations made in the AG’s report of 2014,
is indicated in the Figure below;

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 Figure 10: Implementation Status of the VODP Recommendations

Source: Source: OAG analysis of MAAIF, NOPP and NOSP responses and supporting evidence

Specifically, it was noted that following the 2014 audit, MAAIF through VODP and its
successor projects had managed to fully implement only four (4) of the seventeen audit
recommendations. Major challenges remain in the timely implementation of project
activities, disbursement and utilisation of project funds, and provision of farm inputs to
farmers. The Local Seeds Business model under VODP 2, only focused on large farmers
leaving out many small farmers. These continue to hinder production and value addition
in the vegetable oil industry.

3.1.28 Follow up Report on the Status of Implementation of Audit Recommendations

on the Value for Money audit on Management of Blood Transfusion Services
by the Uganda Blood Transfusion Services

Introduction

In March 2013, the AG issued a report to Parliament on Management of Blood

Transfusion Services by Uganda Blood Transfusion Services (UBTS). The audit report
highlighted key problems in management of blood transfusion services, such as absence
of accreditation and certification of the transfusion services; difficulties in meeting blood
collection targets, inaccurate tracking of blood requirements, and ensuring appropriate
use of blood and blood products; and deficiencies in quality management, training,
blood-component therapy, and infrastructure development. These gaps hindered UBTS
performance in providing essential blood transfusion services to the country. The report
made recommendations for addressing the identified performance gaps to enhance
UBTS’ performance in providing blood transfusion services.

The OAG undertook a follow-up of the 2013 audit report to assess the extent of
implementation of the audit recommendations, given that the extent to which UBTS
addressed the issues would have a bearing on provision and access to blood transfusion
services in the country.

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 Scope of the follow-up

The previous audit covered the operations of UBTS in the three (3) FYs of 2009/10,
2010/11, and 2011/12, and was published in March 2013. The audit involved visiting all
the Seven (7) regional blood banks and selected three (3) out of six (6) Blood Centres in
the various regions of Uganda to evaluate the performance of UBTS in providing safe
and adequate quantities of blood and blood products to all hospitals and HCIVs for the
management of patients throughout the country. The follow-up therefore examined the
progress made by UBTS in implementing the 2013 Value for Money audit
recommendations from 2013 to-date.

Summary of status of implementation of Auditor General’s Recommendations

of the 2013 Audit Report and actions taken by UBTS

It was noted that UBTS has made minimal progress in the implementation of the 2013
Value for Money audit recommendations. Out of the twenty-eight (28) audit
recommendations in the AG’s report of 2013;

i) 23 (82%) were partially implemented, while

ii) 5 (18%) of the recommendations were not implemented at all.

I noted some improvements in documentation through the Blood Safety Information

System and enhancements in blood component to whole blood ratio. However, major
challenges remain, notably in obtaining accreditation for most of the Regional Blood
Banks, failure to achieve the World Health Organisation’s recommended blood collection
target of 1% of the population and lacking functional Hospital Transfusion Committees.
UBTS still struggles to effectively meet blood demand, maintain quality standards, and to
ensure appropriate use of blood and blood products. These challenges compromise
UBTS’ capacity to provide safe and adequate blood transfusion services across the
country.

Therefore, in subsequent risk profiling assessments by my office, I will consider UBTS

for possible Value for Money audits to examine the systemic and operational
inefficiencies hindering it from realising its full potential.

3.1.29 Assessment of the effectiveness of Legal, Regulatory and Institutional

Frameworks in Uganda to curb Illicit Financial Flows in the Management of
Revenue from the Extractive Industry in Uganda

Background

In the 51st African Organization of English-Speaking Supreme Audit Institutions

(AFROSAI-E) Governing Board Meeting held in Windhoek-Namibia in 2016, Supreme
Audit Institutions were called upon to emerging issues where their contribution is
indispensable. Due to the importance of the need to address Illicit Financial
Flows (IFFs), AFROSAI-E sanctioned a study in April 2023, involving twelve (12)
Supreme Audit Institutions, in which a Memorandum of Understanding was signed, to
conduct a “Coordinated Audit on IFFs with a focus on tax revenue mobilization.”

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IFFs are illegal movements of money or capital from one country to another. According
to Global Financial Integrity, IFFs are aided by lack of good governance in the mining
sector due to weak state institutions and growing corruption. According to the World
Bank, the IFFs reduce domestic resources and tax revenue needed to fund poverty-
reducing programs and infrastructure in developing countries.

Introduction

In accordance with the Uganda Bureau of Statistics, GDP from Mining in Uganda was at
a record low of UGX.65.69Bn in 2011. Since then, the mining industry’s GDP has been
increasing progressively. The GDP increased from UGX.412.11Bn in the first quarter to
UGX.1,144.12Bn in the second quarter of 2023, an increase of 178%. The potential of
the mining sector’s contribution to Uganda’s GDP may be affected by IFFs, perpetuated
through money laundering, cash smuggling, drug trade, and tax evasion for eventual
use in illegal activities such as organized crime and terrorism.

In Uganda, the study assessed the effectiveness of the legal, regulatory, and institutional
frameworks in curbing IFFs in the extractive industry in Uganda. I undertook the study
in three institutions namely, Ministry of Energy and Mineral Development (MEMD),
Uganda Revenue Authority (URA) and Financial Intelligence Authority (FIA). These
institutions are at the core of management of revenues from the extractive industry and
in curbing IFFs in Uganda. The summary of my key findings from the coordinated audit
on IFFs are presented below;

Summary of Key Findings

i) The laws and regulations are generally up to date to curb IFFs in revenue
mobilization in the extractive industry. However, Uganda should continue to
refine and strengthen its legal framework and ensure strict implementation of
the laws to strengthen the fight against IFFs and promote sustainable revenue
mobilization from the extractive industry for National development.

ii) The MEMD, URA and FIA, play a collaborative role in the prevention and
detection of illicit financial flows in Uganda. This therefore requires an inter-
institutional working arrangement to aid in the prevention and detection of illicit
financial flows in the extractive industry in the country.

iii) The laws enacted considered various aspects such as transfer pricing regulations,
control of illicit financial flows, anti-money laundering provisions, cross-border
monitoring, and strong mechanisms, which are collectively vital in the detection,
prevention, and deterrence of IFFs in the extractive industry in Uganda. The
implementation of the instituted mechanisms should be carried out
collaboratively and bring on board other relevant agencies to enable Uganda to
comply with the International Conference on the Great Lakes Region (ICGLR)
Mineral Certification Scheme and prevent potential revenue losses.

iv) Whereas Uganda has instituted multiple mechanisms, such as the enactment of
relevant laws, regulations and undertaken national risk assessment on anti-

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 money laundering and financing of terrorism, it was observed that various
mechanisms, such as operationalization of the Uganda National Mining Company
(UNMC), development of a model agreement for future agreements, non-tax
assessment of certain minerals and certification of the 3TG (Tin, Tantalum,
Tungsten and Gold) designated minerals products had not been fully
implemented.

3.2 Engineering/Public Works Audits

I undertook and completed seven (07) Engineering /Public Works audits during the
period of reporting. Of these, three (03) were special audits whose reports were issued
to the requestors. The table below provides a summary of the engineering audits
undertaken;

Table 51: Engineering /Public Works audits during the period of Reporting
S/N Engineering/Public Works Audits No. of No. of Value of Value of No. of
Entities Projects Contracts Contracts Reports
Audited /Works /Works
(Roads, Audited Audited
Building, (UGX) Bn (USD)
Bridges, Mn
Sports
Fields)
1 Engineering Audit on a Selected 11 11 57.63 12
Sample of Infrastructure Projects
Implemented by Refugee Hosting
District Local Governments Under the
Uganda Support to Municipal
Infrastructure Development,
Additional Financing (USMID-AF)
Program

2 Value for Money Audit/Assessment on 9 18 50.28 10

Selected Infrastructure Projects
Implemented by Entities Participating
in The Greater Kampala Metropolitan
Area (GKMA) Urban Development
Program

3 Value for Money Audit/Assessment on 22 91 711.64 23

Selected Urban Infrastructure
Projects
Implemented by the Uganda Support
to
Municipal Infrastructure Development
Additional Financing Program
(USMID-AF) Participating Municipal
Councils and Cities

4 Engineering audit of a selected 1 3 629.82 1

sample of infrastructure projects
implemented by URC in the FY
2023/24

5 Special Audit on Alleged 1 4 1.29 1

Mismanagement of Maintenance

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 S/N Engineering/Public Works Audits No. of No. of Value of Value of No. of
Entities Projects Contracts Contracts Reports
Audited /Works /Works
(Roads, Audited Audited
Building, (UGX) Bn (USD)
Bridges, Mn
Sports
Fields)
Funds Released by Uganda Road
Fund to Entebbe Municipal Council for
Financial Years 2020/21 and 2021/22

6 Special Audit of the International 2 1 379.7 1

Specialized Hospital of Uganda –
Lubowa

7 Special Engineering Audit on Ten 1 10 15.62 10

Selected Infrastructure Facilities
Implemented Under the Uganda
Health Systems Support Project
(UHSSP)

Total 47 138 1450.66 395.32 58

The Key Findings are presented below;

Engineering Audit on Selected Sample of Infrastructure Projects

Implemented by Refugee Hosting District Local Governments Under the
Uganda Support to Municipal Infrastructure Development, Additional
Financing (USMID-AF) Program

A total of 64 projects worth UGX.160.438Bn were implemented across the eleven (11)
refugee hosting districts selected for the USMID-AF program.

I conducted an engineering audit on one project with the highest contract sum in each
of the 11 Districts, these projects comprised of Roads, Bridges, Buildings and sports
facility projects. Accordingly, a total of 11 projects worth UGX.57.634Bn representing
35.9% of the total value of projects implemented were audited.

Below is a summary of key findings and observations resulting from the engineering
audit;

1) Inadequacies in Design and Planning

I reviewed the design and planning documentation and noted the following inadequacies
in ten (10) DLGs as detailed in the table below;

Table 52: Design and planning inadequacies noted

SN DLG Design and Planning Inadequacies Noted
1 Adjumani  Underestimation and omission of key items in the contract BoQs worth
UGX.2.473Bn.
2 Arua  Inadequate geotechnical investigations
 The bar bending schedule was inconsistent with the design drawings.

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 SN DLG Design and Planning Inadequacies Noted
 Failure to undertake hydrological investigations
 Omission of key work items worth UGX.563.9Mn.
3 Isingiro  The geotechnical investigations undertaken were based on only one
trial pit for each road.
 Neither traffic surveys nor axle load surveys for the roads to be
constructed were done.
 No hydrological investigations were conducted for the roads.
4 Kamwenge  No geotechnical investigations were undertaken.
 Inconsistences in the specifications and drawings.
5 Kiryandongo  Omission of approach slabs for box bridge.
6 Lamwo  Absence of specific geotechnical investigations at the locations of the
five box culverts.
 Omission of the structural analysis of the box structures in the design
report.
7 Madi-Okollo  No evidence of needs assessment.
 No evidence of undertaking geotechnical investigations.
 No design report.
8 Moyo  No evidence of undertaking geotechnical investigations.
9 Obongi  No design report.
 Incomplete Drawings
10 Yumbe  Absence of evidence of road drainage design.

Failure to undertake adequate and detailed plans and designs can lead to the
implementation of infrastructure that do not address the needs. Additionally, this can
lead to adoption of foundations and infrastructure designs that are not suitable for the
existing site conditions.

Recommendation

I advised the Accounting Officers to ensure that for future projects of similar nature,
detailed designs and plans in form of geotechnical investigations, hydrological are
conducted and properly documented.

2) Procurement Issues

I noted the following issues arising from my review of the procurement of the works
contractors in the six (6) DLGs of Adjumani, Arua, Kiryandongo, Madi-Okollo, Obongi
and Yumbe;

Table 53: Procurement issues noted

S/N DLG Procurement Issues Noted
1 Adjumani  Inadequate due diligence was undertaken on the contractor by
the Evaluation Committee.
 Unjustified cancellation of the initial procurement process.

2 Arua  Irregular inclusion of VAT component of UGX.911,822,962.

3 Kiryandongo  Absence of a breakdown of the Engineer’s Estimates.

 Inadequate due diligence undertaken on the contractor by the

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 S/N DLG Procurement Issues Noted
Evaluation Committee.
 Absence of a complete procurement file for the procurement of
the contract for additional works.
 Incomplete works contract for additional works.

4 Madi-Okollo  Absence of a breakdown of the Engineer’s Estimates.

 Unjustified inclusion of UGX.39,999,360 in the contract amount.
 Inadequate due diligence was undertaken on the contractor by
the Evaluation Committee.

5 Obongi  Unjustified Splitting of the procurement into two (02) phases.

6 Yumbe  Erroneous arithmetic checks during financial evaluation.

 Unjustified Splitting of procurements.

These procurement irregularities can lead to challenges during project implementation.

Recommendation

I advised the Accounting Officers to ensure that procurements undertaken do not

contravene the relevant procurement regulations and guidelines. Further more, the
anomalies observed should be avoided.

3) Expiry of Performance Securities Prior to Completion of Works

Apart from Madi-Okollo where the contractor failed to submit a performance security, I
established that performance securities submitted in eight (8) DLGs expired prior to the
completion of works contrary to the contract requirements. The table below refers;

Table 54: Status of the Performance Securities as at the time of audit

S/N DLG Status of the Performance Security as at the Time of Audit
1 Arua Expired nine (09) months prior to the revised completion date for the
works.
2 Isingiro Expired thirteen (13) months prior to the revised completion date for
the works.
3 Kiryandongo Expired nine (09) months prior to the completion date for the works.
4 Lamwo Expired five (05) months prior to the completion date for the works.
5 Madi-Okollo No performance security for the first contractor who was later
terminated.
6 Moyo Expired five (05) months prior to the revised completion date for the
works.
7 Obongi The performance guarantees submitted by the contractor for phase 1
and 2 works expired three (03) and five (05) months respectively
prior to the revised completion dates for the works.
8 Terego Expired eight (08) months prior to the completion date for the works.
9 Yumbe Expired eight (08) months prior to the revised completion date for the
works.

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Failure to maintain valid performance securities constitutes a fundamental breach of
contract and exposes the DLGs to the risk of financial loss in the event the contractors
fail to perform.

Recommendation

I advised the Accounting Officers to always ensure that contractors maintain valid
guarantees as contractually required.

4) Delayed Completion of Works and Unjustified Extension of Time

In five of the eleven DLGs, work completion was delayed by 28 to 163 days, warranting
liquidated damages of UGX.1,153,110,843.1, which were not charged as detailed in the
table below;

Table 55: Delays in the implementation of the works

S/N DLG Delay [days] Uncharged Liquidated Damages [UGX]
1 Isingiro 28 152,166,865.20
2 Kiryandongo 163 412,509,171.3
3 Madi-Okollo 56 61,509,168
4 Moyo 163 286,028,652
5 Terego 131 240,896,986.6
TOTAL 1,153,110,843.1

Of the remaining six DLGs without delays, five granted unjustified time extensions of
193 to 392 days, leading to forfeited liquidated damages of UGX 2,251,221,181.3. The
details for the unjustified extensions of time are presented in the table below;

Table 56: Delays to complete works and uncharged/forfeited liquidated damages

S/N DLG Unjustified extension of Forfeited Liquidated Damages
time [Days] [UGX]
1 Adjumani 275 1,187,105,095
2 Arua 392 557,773,771.30
3 Kamwenge 270 141,707,795
4 Madi-Okollo 193 109,837,800
5 Obongi 240 254,796,720
Total 2,251,221,181.3

Delayed completion of works denies the intended users timely usage of the
infrastructure and failure to charge damages, denies the Client compensation arising
from the delayed completion.

Recommendation

I advised the Accounting Officers to put measures in place to ensure that works are
always completed in time, failure of which liquidated damages are charged as per the
contract provisions.

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5) Irregular/Unjustified/Questionable Payments/Certifications

I reviewed payment documentation for the eleven (11) DLGs and noted various
payments totalling UGX.4,134,430,658.5 that I considered irregular, unjustified and/or
questionable due to either absence of documents supporting these payments, payments
being made against contractual provisions, use of wrong rates for payment or payments
made for unexecuted works as shown in the table below;

Table 57: Summary of irregular/unjustified/questionable payments/ certifications

SN DLG Irregular / Remarks
Unjustified /
Questionable
Payments [UGX]
1 Adjumani 286,250,000  Unsupported payment of UGX.286,250,000
relating to environmental, health, and social
safety activities.

2 Arua 917,556,333  Irregular advancement of UGX.294,158,867 to

the contractor.
 Irregular release of retention money of
UGX.250,891,466
 Unsupported payments of UGX.309,526,000 for
Preliminary and General items, UGX.34,980,000
for environmental studies and permits,
UGX.22,500,000 for additional foundation
investigation and UGX.5,500,000 for material
testing.
3 Isingiro 345,921,382  Irregular advancement of UGX.200,000,000 to
the contractor.
 Irregular release of retention money of
UGX.130,921,382.
 Unsupported payment of UGX.15,000,000 for an
environmental and social audit report, and
provision of sexual health and first aid clinic on
the main site compound fully furnished and
equipped.

4 Kamwenge 806,453,057  Irregular release of UGX.197,039,057 without as-

built drawings.
 Unsupported payments of UGX.447,739,000 for
concrete test cubes, samples, tests required by
the Engineer, and excess excavated material
among others, and UGX.11,000,000 for EHSS
activities.
 Questionable payment of UGX.150,675,000 for
imported gravel with no specifications.

5 Kiryandongo 416,161,941  Irregular release of UGX.239,252,850 without as-

built drawings.
 Unsupported payments of UGX.176,909,091 for
various environmental, social, health and safety
measures.

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 SN DLG Irregular / Remarks
Unjustified /
Questionable
Payments [UGX]
6 Lamwo 373,876,593  Irregular release of UGX.320,456,593 retention
money before submission and approval of as-built
drawings.
 Unsupported payments of UGX.27,500,000 for
relocation of services and special tests,
UGX.25,920,000 for environmental, social, health
and safety measures.

7 Madi-Okollo 724,122,557.5  Unsupported payment of 724,122,557.5 for

earthworks, and other playground facilities.

8 Moyo 155,514,326  Irregular release of UGX.143,014,326 before

submission and approval of as-built drawings.
 Unsupported payment of UGX.12,500,000 for
Safety Officer and Social Safeguard Specialist as
well as implementation of environmental and
health and social requirements.

9 Obongi 52,501,719  Unrecovered advance payment of

UGX.11,741,719
 Payment of UGX.35,260,000 for unexecuted
works.
 Unsupported payment of UGX.5,500,000 for
implementation of environmental, health and
social safety requirements.

10 Terego 26,072,750  Unsupported payment related material tests for

the Engineer, Training and Capacity
Building/Environment, Social and Community
officers, and Environmental, Health and Safety
activities.

11 Yumbe 30,000,000  Failure to apply discount of UGX.30,000,000 in

IPCs 1 and 2 offered by the contractor

Total 4,134,430,658.5

Irregular/unjustified payments expose the DLGs to the risk of financial loss.

Recommendation

I advised the Accounting Officers to conduct further review of these payments and take
appropriate action.

6) Inspection of Works

I inspected all the selected project sites in the eleven (11) DLGs between 05th August to
20th August 2024. During the physical inspection of the works, I observed the following
omissions and defects on the sites;

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Table 58: Observed defects in the different project sites
S/N DLG Observation
1 Adjumani Chamfered concrete encasing for cross and access culverts and eroded
fill at box culvert.
2 Arua Stockpiled sand on bridge deck, blocked weep holes, unbound stones at
wing wall edges and unpainted girders.
3 Isingiro Bleeding of bitumen, stripping of aggregates, insufficient backfill on
some of the access culverts, damaged end structures, honeycombs on
some of the concrete elements, etc.
4 Kamwenge Cracks in veranda, terrazzo work top, floors and timber roof members.
Missing shower heads, bench provision, access hatches, grout in tiles,
peeling of paint, blocked floor trap, rusted hoop iron, etc.
5 Kiryandongo erosion gulleys, scouring and wash away of wearing course, damaged
head wall on cross culvert, exposed top slab of box bridge, poor welding
of joints on the guard rails, erosion of backfill at culvert crossing,
missing guard rails on box culverts, disintegration of concrete end
structures etc.
6 Lamwo Cracks on head walls, silted drains and culverts outlets and inlets, poorly
compacted gravel material on road edges, erosion gulleys along fill
edges, unmarked signposts, developing potholes, etc.

7 Madi-Okollo Honey combing on some concrete elements and a deformed tank.

8 Moyo Unfinished paint works, un-protected rebar on the main building,
disconnected down pipes, unpainted ceiling areas, damaged wall at the
garbage area, unfinished drain works, broken ceiling eaves.
9 Obongi Poor workmanship of welds on the clinic door of the Administration
Block, poor workmanship of the lighting base (compound lighting),
vandalized main switches in the lockups, broken taps, peeling of paint,
cracks on apron slabs, blocked down pipe, missing locks on some
cabinets, etc.
10 Terego Ponding of water on paved surfaces, peeling of wall paints, silted catch
drains, uncovered inspection chambers for the VIP Latrines, etc.
11 Yumbe Rusted guard rails, missing bolts, honeycombing of surround concrete,
damaged aprons, uninstalled guardrails at the edges of the cross
culverts, cracks on concrete end structures, poorly jointed culverts,
erosion of the embankment and damaged the road edges, etc.

Defects if not rectified lead to faster deterioration of the infrastructure which reduces
their service life.

Recommendation

I advised the Accounting Officers to ensure that all the above observed defects and/or
omissions are rectified before project closure.

7) Implementation of Environmental, Health, Social and Safety Measures

All the eleven DLGs had challenges and inadequacies in the implementation of
environmental, health, social and safety measures as highlighted in table below;

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Table 59: Non-adherence to environmental, health, social and safety measures
S/N DLG Observation
1 Adjumani  Improper waste disposal, inadequate traffic control measures,
absence of warning signage for excavations.
2 Arua  Expiry of the Environmental and Social (ES) Guarantee nine (09)
months prior to the revised completion date.
3 Isingiro  Expiry of the Environmental and Social (ES) Guarantee thirteen (13)
months prior to the revised completion date.
 Spillage of bitumen in the contractor’s storage yard.
 Absence of firefighting equipment at the contractor’s yard.
 Inadequate PPEs.
4 Kamwenge  Expiry of the Environmental and Social (ES) Guarantee six (06)
months prior to the revised completion date
5 Kiryandongo  Expiry of the Environmental and Social (ES) Guarantee nine (09)
months prior to the revised completion date.
 Borrow pits at Ch. 5+450 LHS along Kololo-Laboke road and Ch.
12+360 RHS along Karuma-Okweche road were not re-instated.
6 Lamwo  Improper reinstatement of borrow pits at Ch. 23+100 and Ch.
9+100 resulting in water ponding and steep slopes respectively.
 Absence of several required permits and approvals such as
Certificate of Registration of Workplace, Surface Water Abstraction
Permit, Approval of Contractor’s Camp Layouts and Construction
Drawings, and ESIA approvals.
7 Madi-Okollo  Absence of ES performance security.
 Inadequate safety on site.
 Failure to conduct HIV/AIDS awareness programs.
8 Moyo  Absence of ES performance security.
9 Obongi  Expiry of the Environmental and Social performance security for
phase 1 works prior to completion.
 Absence of Environmental and Social performance security for
phase 2 works.
10 Terego  Expiry of the Environmental and Social (ES) Guarantee eight (08)
months prior to the completion of works.
 No evidence of Environmental approvals for auxiliary facilities and
Decommissioning plans, a site clinic and a Social Development
Officer.
11 Yumbe  Expiry of the Environmental and Social (ES) Guarantee seven (07)
months prior to the completion of works.
 The borrow pit at Ch. 2+000, RHS-offset of 2km along Ariwa-Akiiri
road was not re-instated.

Failure to implement adequate environmental, social, health and safety measures can
lead to environmental degradation as well as increasing the risk of injuries in the event
of accidents.

Recommendation

I advised the Accounting Officers to ensure that contractors fully implement all the
required environmental, health, social and safety measures during the execution of
works.

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8) Quality of Works and Materials
a) Material Testing and Quality Control

I reviewed the material testing and quality control documents and noted that nine (09)
of the eleven (11) DLGs had inadequacies in quality control and material testing as
detailed below;

Table 60: Material testing and quality control inadequacies noted

S/N DLG Materials and/or works not tested
1 Adjumani  Change of culvert bedding from CRR to an inferior material i.e.
sand.
 No tests undertaken on 900mm concrete culverts.
2 Arua  No test results undertaken on steel, sand and aggregates.
3 Isingiro  No test undertaken on sand, aggregates, bitumen, concrete,
gravel, culverts and subgrade layer.
4 Kamwenge  No test undertaken on sand, aggregates and steel.
 No specifications for gravel.
5 Kiryandongo  No tests undertaken on gravel, steel, pipe culverts, coarse
aggregates and sand.
6 Lamwo  No concrete mix designs, trial mixes, and crushing load tests for
pipe culverts
7 Madi-Okollo  No tests undertaken on bricks, blocks, steel bars, coarse
aggregates and sand.
8 Moyo  No tests undertaken on pavers, gravel and kerbstones.
9 Obongi  No tests undertaken on concrete, pavers, concrete pipe culverts,
and absence of manufacturer’s certificates for cement,
reinforcement, and iron sheets.
 No evidence of undertaking concrete mix designs.

Failure to undertake adequate material testing and quality control increases the risk of
use of substandard materials affecting the durability of the works.

Recommendation

I advised the Accounting Officers to always ensure that adequate testing is undertaken
on all materials used in the permanent works.

b) Concrete Members

I checked the quality of the concrete members on seven (07) of the eleven (11) DLGs
and noted that some of the tested concrete elements did not meet the minimum
compressive strength as detailed in the table below;

Table 61: Concrete elements that failed the minimum test strength requirements
SN DLG Failed Concrete Elements
1 Adjumani  Manhole at Ch.0+640 LHS on Administration Road.
 External wall on the box culvert at Ch. 0+250 on Market Road.
2 Arua  Abutment 1 and the 2 upstream wing walls for Enyau-1.
3 Isingiro  Culvert end-structures
4 Kiryandongo  Wing wall on the box culvert at Km 3+842 and the headwall of the

234
 SN DLG Failed Concrete Elements
box culvert at Km 3+944 on Kololo-Laboke road.
5 Lamwo  Top slab concrete for box culverts at Ch. 2+100 and Ch. 3+800.
6 Madi-Okollo  All the tested elements (slabs, columns and beams).
7 Yumbe  Head wall and walkways for box culvert at Ch. 4+000

Failure to meet the required concrete strength can compromise the functionality and
durability of the infrastructure.

Recommendation

I advised the Accounting Officers to conduct further tests on the failed concrete
elements and in the event of failure, take appropriate remedial measures.

c) Laboratory Tests

I collected samples of natural gravel, sand, coarse aggregates, concrete kerbs, steel
reinforcement from seven (07) of the eleven (11) DLGs and conducted laboratory tests
on these. The summary of the failed parameters per DLG is presented in the table
below;

Table 62: Summary of the laboratory test results for the sampled materials
SN DLG Material Tested Effects
Parameters that
Failed
1 Adjumani Gravel PI, LS,  High PI leads to slippery road
Concrete UCS surfaces especially in rainy
kerbs seasons.
Sand Chloride content,  High chloride content leads to
PSD faster corrosion of steel
Coarse PSD reinforcement in concrete.
aggregates  Poorly graded aggregate mix can
2 Arua Sand Chloride content, result into a loosely packed
Organic impurities, concrete mix which can lead to
PSD voids, segregation of the mix
Gravel CBR components and weak concrete.
Coarse PSD  Poor quality concrete elements
aggregates lead to weak infrastructure.
3 Isingiro chippings PSD
4 Kamwenge Pavers UCS
5 Kiryandongo Gravel SP, GC, PSD, CBR
6 Madi-Okollo Bricks UCS
Sand Chloride content,
PSD
Coarse PSD
aggregates
7 Yumbe Gravel SP, GC, CBR

235
Recommendation

I advised the Accounting Officers to put measures in place to ensure that all materials
used in the permanent works always meet the requirements.

9) Quantity Verifications

I undertook an analysis of the drawings availed to me and also physically measured

some of the executed work items to establish the consistency with which the supervision
team accurately measured the quantities during certification.

I noted inconsistencies in some of the quantities certified in all the sampled projects
resulting in overpayments equivalent to UGX.2.733Tn, as shown in the table below;

Table 63: Overpayments/over certifications noted

S/N DLG Project Overpayment
[UGX]
1 Adjumani Upgrading of Administration Road (1.43km), Market 231,477,509
Road (1.09km) and Illa Road (0.66km) to Bituminous
surface in Adjumani District
2 Arua Construction of 2 bridges: Enyau-1 on Odianyadri- 603,203,850
Congo road and Enyau-2 bridge on Awindiri-Ajono road
under USMID-AF
3 Isingiro Construction of Eight (8) Sealed Roads (7.09) km 271,886,808
Under USMID-AF
4 Kamwenge Construction of Market Shed and Taxi Park at Nkoma- 141,707,795
Katalyeba Town Council Under USMID-AF
5 Kiryandongo Construction of Alaro-Ongwalo-Yabwengi Road 301,858,740
(1.448km), Kololo-Laboke Road (11.842km) and
Karuma-Okweche-Alero Road (18.66km)
6 Lamwo Rehabilitation of Lamwo Town Council-Palabek Ogili 631,793,250
Sub-County Road (25.125km)
7 Madi-Okollo Construction of Play Field at the District Headquarters 52,845,300
8 Moyo Construction of Moyo Town Market in Moyo Town 60,312,032
Council in Moyo District
9 Obongi Construction of Ndirindiri Market Phase One and Two 176,342,169
10 Terego Construction of a Resource Centre at Leju Town 44,010,755
Council in Terego District
11 Yumbe Rehabilitation/Construction of Ariwa-Kiri Road 34.76km 218,288,913.04
Total 2,733,727,121.04

These overpayments if not recovered shall result in a financial loss to the projects.

Recommendation

I advised the Accounting Officers to ensure that the overpayments are recovered and
measures put in place to ensure that for future projects, payments are always made for
actual works done.

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10) Supervision of Works

An evaluation of supervision arrangements in the various DLGs revealed inadequacies,

as detailed in the table below;

Table 64: Supervision inadequacies noted

S/N Supervision inadequacy observed DLGs affected
1 Failure to prepare adequately detailed Adjumani, Arua, Isingiro, Kamwenge,
monthly progress reports. Kiryandongo, Lamwo, Madi-Okollo and
Yumbe
2 Failure to monitor personnel and Adjumani and Madi-Okollo
equipment mobilization of the contractor
3 Failure to implement a Contract Adjumani, Kiryandongo, Kiryandongo, Madi-
Management/Implementation Plan Okollo, Moyo and Yumbe
4 Failure to prepare measurement sheets Madi-Okollo, Moyo, Obongi and Yumbe
5 Failure to prepare minutes for site Arua and Moyo
meetings

Failure to adequately supervise the works can lead to implementation of works that do
not meet the required quality.

Recommendation

I advised the Accounting Officers to ensure that measures are put in place to ensure
that adequate supervision of future projects is undertaken.

Engineering Audit on a Selected Sample of Infrastructure Projects

Implemented by Uganda Railways Corporation

During the year, URC implemented four public works contracts totaling UGX.661.144Bn.
I conducted engineering audits on three railway projects valued at UGX.629.817Bn,
representing 95% of the total public works project value.

Below is a summary of key findings and observations resulting from the engineering
audit.

1) Planning and Design Inadequacies

A review of the planning and design documents for two projects revealed significant
inadequacies as shown below;

Table 65: Inadequacies in Planning and Design

S/N Contract Inadequacies
1 Refurbishment of Kampala  Provision of ramps thinner than recommended
Namanve Mukono railway  Omission of reinforcement in the ramps
line section (26.8Km)  Specification of different grades of concrete for
platform and access slabs
 Inadequate basis for removal of existing rails.
 Specification of use of G3 material for fill, yet this is
of low quality

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 S/N Contract Inadequacies
2 Rehabilitation of Mukono-  Reliance on un updated railway engineering manual
Malaba Railway Section  Inadequate condition assessment
 Absence of detailed design reports and drawings
 Anomalies in the preparation of BoQs and use of
ambiguous specifications.

Inadequate planning and design can lead to inappropriate interventions that fail to
address the functional requirements of the infrastructure.

Recommendation

I advised the Accounting Officer to ensure that designs are always comprehensively
reviewed for adequacy and to re-evaluate the identified issues to implement appropriate
corrective measures.

2) Procurement Issues

A review of the procurement processes for works contractors and design/supervision

consultants revealed several inadequacies summarized below;

Table 66: Procurement Issues

S/N Project Name Observation
1 Refurbishment of Kampala  Procurement documentation for supply of rails not
Namanve Mukono railway availed.
line section (26.8Km)  Procurement documentation for feasibility study by
the consultant not availed.
 Absence of detailed breakdown of the engineer’s
estimate
 Separation of rails from the works contract.
 Irregular variation of price for rails by 55.6%.

2 Rehabilitation of Mukono-  Procurement of contractor and supervising outside

Malaba Railway Section the procurement plan
 Inadequate justification for use of direct
procurement
 Unsupported increase of the estimated value for
rehabilitation

3 Rehabilitation of Tororo-Gulu  Inadequate justification for use of direct

railway line procurement

Procurement inadequacies risk engaging contractors and consultants at uncompetitive

rates, increasing project costs and reducing value for money.

Recommendation

I advised the Accounting Officer to ensure that all procurements adhere strictly to
relevant regulations and guidelines to enhance transparency, competitiveness, and cost
efficiency.

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3) Inadequacies in Contract Formulation

A review of works contracts for two projects revealed several inadequacies in their
formulation:

Table 67: Inadequacies in Contract Formulation

S/N Project Name Observation
1 Refurbishment of  Provision of insurance bond in lieu of withholding
Kampala Namanve retention
Mukono railway line  Failure to stipulate URC’s benefit from lending of its
section (26.8Km) equipment to works contractor.
2 Rehabilitation of Mukono-  Absence of penalties for late submission of updated
Malaba Railway Section work programs (SCC 36.3)
 Schedule of key personnel not part of the contract
(SCC14.1)
 Silence on schedule of key equipment to be deployed by
contractor (GCC 28.1)

Inadequate contract formulation limits the supervisor’s ability to oversee works

effectively, contributing to delays and poor-quality outcomes.

Recommendation

I advised the Accounting Officer to ensure that contracts are thoroughly reviewed by
technical personnel to eliminate clauses that hinder effective supervision and execution
of works.

4) Delayed Payments of Contractor’s Interim Payment Certificates

Delays in payments to contractors, ranging from 5 to 406 days, were noted for the
Mukono-Malaba railway section and Tororo-Gulu line projects. These payment delays
caused work suspension on the Tororo-Gulu line, leading to a potential monthly loss of
UGX.667,413,156 for URC.

Recommendation

I advised the Accounting Officer to ensure timely payment of contractors’ Interim

Payment Certificates (IPCs) to avoid project delays, financial losses, and disruptions in
progress.

5) Delayed Engagement the Supervising Consultants

A review of supervising consultants’ contracts revealed that consultants were engaged

after significant progress had already been made on the projects as detailed in the table
below;

239
Table 68: Delayed Engagement of Supervising Consultants
S/N Contract Project progress at
engagement of consultant (%)
1 Refurbishment of Kampala Namanve Mukono 90%
railway line section (26.8Km)
2 Rehabilitation of Mukono-Malaba Railway 70%
Section
3 Rehabilitation of Tororo-Gulu railway line 11%

Delayed engagement of supervising consultants hampers timely design reviews, issue

resolution, and quality assurance, potentially leading to wasteful expenditure and
compromised project quality.

Recommendation

I advised the Accounting Officer to ensure that supervising consultants are engaged
before the commencement of works to enhance project oversight and efficiency.

6) Unjustified/Irregular Payments

A review of two contracts revealed unjustified or irregular payments totaling

UGX.9,444,182,398.82 due to unsupported documentation and payments for items that
did not meet specifications as presented in the following table;

Table 69: Unjustified/Irregular Payments

SN Contract Unjustified/ Irregular Remarks
Payment (UGX)
1 Refurbishment of 9,320,737,640.42  Payment for level crossings
Kampala Namanve and ballast which did not
Mukono railway line conform to the specifications.
section (26.8Km)
3 Rehabilitation of 123,444,758.4  No agreement for provision of
Tororo-Gulu railway rental services between URC
line and the contractor
 No evidence of payment of
rent to URC.
Total 9,444,182,398.82

These irregular payments expose URC to potential financial loss.

Recommendation

I advised the Accounting Officer to review these payments thoroughly, ensure proper
documentation, and recover funds where necessary.

7) Inspection of the Works

Physical inspections of three railway project sites conducted between 6th and 18th
August 2024 revealed several defects, omissions, and deficiencies as summarised in the
table below;

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Table 70: Observed Defects/Omissions
SN Project Name Key Observations
1. Refurbishment of Kampala- Contaminated ballast, cracked sleepers, hanging rails,
Namanve-Mukono railway line vandalized turnout, missing bolts, seepage, erosion,
(26.8km) waterlogging, and debris in ballast.
2. Rehabilitation of Mukono- Ponding water, collapsed embankments, blocked
Malaba railway section culverts, broken sleepers, silt in turnouts, and missing
fasteners and parapets.
3. Rehabilitation of Tororo-Gulu Damaged rails, collapsed embankments, corroded rails,
railway line silted and blocked culverts, missing fasteners, and
erosion along the track.

The observed defects and omissions if not addressed, can compromise the aesthetics,
safety and functionality of the railway infrastructure.

Recommendation

I advised the Accounting Officers to address all observed defects and omissions and to
ensure adequate and timely maintenance of railway infrastructure components.

8) Quality Control of Works

An evaluation of quality control procedures identified omissions in material testing and
approvals for two of the three railway projects:

Table 71: Quality Control Omissions

SN Project Name Quality Control Omissions
1. Refurbishment of Kampala Namanve  C50 mix design not availed
Mukono railway line section (26.8Km)  Material approvals not availed

2. Rehabilitation of Mukono-Malaba  Ballast crushing strength and attrition value,

Railway Section loading test results for culvert class.

Failure to conduct necessary quality control procedures and tests before material use
increases the risk of incorporating substandard materials, compromising the quality and
durability of the works.

Recommendation

I advised the Accounting Officer to ensure that all materials are tested, results reviewed,
and approvals secured before incorporation into project works.

9) Quality of Works and Materials

Laboratory tests conducted on concrete culverts and construction materials from three
railway projects revealed failures in key quality parameters:

241
Table 72: Quality of Works and Materials
S/N Project Name Failures Observed
1. Refurbishment of Kampala Namanve  Compressive strength of 900mm
Mukono railway line section (26.8Km) culverts
 Ballast particle size distribution
2. Rehabilitation of Mukono-Malaba  Ballast (Aggregate) particle size
Railway Section distribution.
3 Rehabilitation of Tororo-Gulu railway  Ballast loose density and Particle size
line distribution

The use of materials that fail to meet specifications compromises the integrity and
durability of railway infrastructure.

Recommendation

I advised the Accounting Officer to ensure that non-compliant materials are excluded
from works to uphold project quality and standards.

10) Conformance of Works to Specifications and Drawings

A review and physical measurement of selected work items revealed that some items on
two of the three projects did not meet the required specifications as detailed below;

Table 73: Observed Non-Conformances

SN Contract Non-conformance
1 Refurbishment of Kampala  Railway cant at selected locations
Namanve Mukono railway  Sleeper spacing greater than specified
line section (26.8Km)  Thickness of ballast under the sleepers
 Ballasted profile width
 Culvert size and number of cells
 Length of some level crossings
 Transition between ballasted track and concrete track

2 Rehabilitation of Mukono-  Ballast thickness

Malaba Railway Section  Section dimension of vertical supports on steel bridge
parapets

Works that fail to meet specifications compromise the durability and functionality of
railway infrastructure.

Recommendation

I advised the Accounting Officer to ensure strict adherence to contractual specifications

during project execution to maintain quality and functionality.

11) Quantity Verifications

The audit of the project for the refurbishment of the Kampala-Namanve-Mukono railway
line section (26.8km) revealed inconsistencies in the quantities of works certified,
leading to overpayments amounting to UGX.4,634,770,900.5.

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If these overpayments are not recovered, they may result in a financial loss to the
project.

Recommendation

I advised the Accounting Officer to take immediate action to recover the overpayments
from the contractor and strengthen controls to prevent similar occurrences in the future.

12) Supervision of Works

An evaluation of supervision across three projects revealed significant inadequacies:

Poor quality progress reports were prepared by all supervision teams.

 On the Mukono-Malaba project, the Survey Assistant did not provide control
points to the contractor.
 The supervising consultant’s replacement for Inspector of Works on the Mukono-
Malaba project lacked the requisite six years of experience.
 The in-house supervision team for the Kampala–Mukono project lacked a
Materials Engineer.

Inadequate supervision can result in poor quality works, compromising the durability of
the infrastructure.

Recommendation

I advised the Accounting Officer to enhance the capacity of the technical team to
strengthen supervision and monitoring arrangements for ongoing and future works.

Value for Money Audit/Assessment on Selected Urban Infrastructure Projects

Implemented by Municipal Councils and Cities Participating in the Uganda
Support to Municipal Infrastructure Development Additional Financing
Program (USMID-AF)

Government of Uganda (GoU) represented by Ministry of Lands, Housing and Urban

Development (MoLHUD) secured an additional financing facility of USD 360 million from
the International Development Association (IDA/World Bank) to finance Uganda Support
to Municipal Infrastructure Development-Additional Financing (USMID-AF) Program.

The 22 Municipal Councils and Cities participating in the program include; Arua, Gulu,
Kitgum, Lira, Apac, Soroti, Moroto, Mbale, Tororo, Busia, Kamuli, Jinja, Lugazi, Entebbe,
Hoima, Mubende, Fort Portal, Kasese, Mbarara, Ntungamo, Kabale and Masaka.

I conducted an audit on 91 infrastructure projects with a total cost of UGX.711.640Bn

consisting of Roads and Building projects as summarized below;

a) 11 USMID funded projects carried over from the FY 2020/21 that were
incomplete during the previous audit.
b) 36 USMID funded projects implemented since FY 2021/22.

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c) 44 non-USMID projects consisting of two non-USMID projects from each LG
financed from URF, SFG, DDEG, TDG and implemented in the FY 2023/24.

Below is a summary of the key findings I noted, the details of which are included in the
consolidated audit report for the 22 Municipal Councils and the 22 individual reports
issued separately;

i) I undertook measurements on some of the executed work items and noted that
there were inconsistencies in some of the quantities certified resulting in
overpayments of UGX.1.651Bn on the USMID funded projects and
UGX.95.961Mn on the non USMID funded projects.

ii) I also noted that the Municipalities of Lugazi and Busia made payments above
certified amounts totaling to UGX.134.284Mn on the USMID funded projects
while Fort Portal City made a payment above the certified amount totaling to
UGX.7.583Mn on one of its non-USMID funded projects.

iii) On seven (7) USMID funded projects implemented in the Municipalities/Cities of

Hoima, Kasese, Lira, Kitgum and Lugazi, payments totalling UGX.2.367Bn were
made without necessary supporting documents. This lack of documentation
increases the risk of overpayments and payments for unexecuted activities.

iv) Out of the forty-seven (47) USMID funded projects that were assessed, only
three projects in the LGs of Masaka and Kabale were completed within the initial
intended completion period. Delayed completion of works denies intended users
timely usage of the completed infrastructure.

v) Complete material tests were availed for only 27 out of the 47 USMID funded
projects. Failure to undertake all the required tests increases the risk of use of
sub-standard materials as well as approval of sub-standard works, thus affecting
durability of the completed works.

vi) Out of 47 USMID-funded projects evaluated, evidence of full compliance with all
expected environmental protection measures was provided for 30 projects, while
evidence of full compliance with social and Occupational Safety and Health (OSH)
measures was provided for 40 projects. The failure to implement these measures
poses significant risks, including environmental degradation, social exploitation,
and workplace accidents.

vii) During the physical inspection of the USMID funded projects, I observed defects
on 21 projects. The defects included; broken walkway slabs, non-functional
street lights, damaged stone pitching, segregation in asphalt concrete, bleeding,
missing drainage covers, missing guard rail bolts. These defects if not promptly
corrected could compromise the durability and functionality of the completed
infrastructure.

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Recommendations

I advised the respective Accounting Officers to;

i) Ensure that the overpayments and payments made above the certified amounts
are recovered.
ii) Investigate the basis on which payments without supporting documents were
made and, if found unsatisfactory, ensure the necessary recoveries are made.
iii) Put in place measures to ensure that contractors complete works within the
intended completion dates
iv) Always ensure that supervision teams undertake all the expected tests for
materials and works during the implementation of the works.
v) Always ensure that contractors implement all the expected environmental, social
and OSH measures during the implementation of works.
vi) Ensure that the identified defects are promptly corrected.

Value for Money Audit/Assessment on Selected Infrastructure Projects

Implemented by Entities Participating in the Greater Kampala Metropolitan
Area (GKMA) Urban Development Program

The Government of Uganda, led by the Office of the President - Ministry of Kampala
Capital City and Metropolitan Affairs (MKCC&MA), is implementing the Greater Kampala
Metropolitan Area Urban Development Program (GKMA-UDP). The program spans five
fiscal years, beginning in 2023/24 and is being implemented in the nine GKMA
implementing entities of Kampala Capital City Authority (KCCA), the District Local
Governments of Wakiso, Mukono and Mpigi, and the Municipalities of Kira, Nansana,
Makindye-Ssabagabo, Mukono and Entebbe.

In line with the funding requirements, I conducted an audit/assessment on eighteen

(18) infrastructure projects comprising Roads and Building projects with a total cost of
UGX.50.284Bn implemented by Local Governments (LGs) participating in the GKMA
program. For the financial year 2023/24, no GKMA financed projects had commenced
and as such, I only focused on Non-GKMA financed projects.

Below is a summary of the key findings I noted, the details of which are included in the
consolidated audit report for the 9 entities and the 9 individual reports issued
separately;

i) Of the 18 assessed projects, 13 were completed within the initial timelines, while
3 experienced delays. For the remaining 2 projects, though still within their
execution timelines, schedule status could not be determined due to missing
work programs and progress reports. Delayed completion of works denies users
timely access to infrastructure, while the absence of work programs and progress
reports hinders stakeholders' ability to monitor project progress.

ii) I undertook measurements on some of the executed work items and noted that
there were inconsistencies in some of the quantities certified resulting in
overpayments of UGX.377,567,873.

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iii) Of the nine assessed entities, only Makindye-Ssabagabo MC, Nansana MC, and
Mukono DLG provided evidence of conducting all required material tests for their
projects. The other six entities either conducted partial tests or none at all,
increasing the risk of substandard materials affecting the quality and durability of
works.

iv) Defects were observed in all road projects across the nine entities, including
stripping, bleeding, potholes, rutting, alligator cracks, edge failures, disjointed
and collapsed culverts, poorly compacted gravel, and poorly filled culvert inlets.
For building projects, except for the KCCA project where earlier observed defects
were corrected, issues included broken tiles, poor grouting, uneven floors, split
timber, openings in ridges and door shutters, disjointed fascia boards, damaged
pin boards, and exposed bars in ground beams. If not promptly addressed, these
defects could impact infrastructure performance and functionality.

v) All entities provided environmental screening reports for their projects, except
KCCA, which provided none, and Makindye-Ssabagabo MC, which provided one
for a single project. Furthermore, the assessment of fulfilment of measures in the
screening reports showed that only Mukono DLG provided evidence of fulfilling
all measures, but only for one of its two projects. Without proper screening and
implementation of mitigation measures, projects risk causing adverse
environmental and social impacts, such as degradation, pollution, and harm to
communities.

Recommendations

I advised the respective Accounting Officers to;

i) Ensure timely completion of works and prepare, monitor, and document progress
through work programs and reports.
ii) The highlighted overpayments are recovered.
iii) Always ensure that supervision teams undertake all the expected tests for
materials and works during the implementation of the works.
iv) The observed defects are promptly corrected.
v) Ensure that environmental screening is undertaken, screening reports prepared
and measures proposed fully implemented.

I have issued separate Engineering/Public Works Audit reports.

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PART IV: INFORMATION SYSTEMS, FORENSIC AND SPECIAL AUDITS

This Section provides a summary of findings from Information Systems (IS), Special and
Forensic Audits.

4.1 Information Systems Audits

Introduction

Sections 13 and 22 of the National Audit Act Cap. 170, mandate the AG to audit all
Government investments and to carry out special audit engagements, which, among
others, include Information Technology (IT) Audits. In addition, Paragraph 18 of the
International Standards of Supreme Audit Institutions (ISSAI) 1315, requires external
auditors to consider whether the audited entity has responded adequately to the risks
arising from IT by establishing effective general IT and application controls and evaluate
whether these are effectively implemented to maintain the integrity of information and
the security of the data processed by such systems.

Furthermore, INTOSAI GUIDE 5100, requires SAIs to conduct thorough examination of

controls related to IS to ensure that internal IT controls that maintain confidentiality,
integrity, and availability of data have been adopted by public sector entities. Relatedly,
the transition by governments and public sector entities to computerized IS and
electronic processing triggered significant changes that present high-risk control
environment.

Based on my annual risk assessment, all Government Information Systems were

assessed and ranked in accordance with the OAG Risk Audit Framework.

Objectives of the IS Audits

The overall objective of the IS Audit was to evaluate the integrity, consistency, and
availability aspects of the system and data processes, mainly focusing on General,
Application, and specific controls.

These Audits were redacted to remove critical system sensitive information for purposes
of confidentiality and protecting the systems from external parties who may use audit
information for unauthorized access.

Audits Undertaken

Ten (10) IS audits were undertaken as separate audit engagements and separate
reports were issued to the Accounting Officers of the respective entities. Below are the
redacted executive summaries of the issued reports;

4.1.1 Integrated Revenue Administration System at the Local Government Finance

Commission

The Government of Uganda, represented by the Ministry of Finance Planning and

Economic Development (MoFPED) implicated the Integrated Revenue Management

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System (IRAS) in forty Local Governments as an upgrade of the Local Revenue
Database Management System initially used by the commission.

The IRAS offers a variety of modules and functions to support the local revenue
administration, namely, Taxpayer Registration, Revenue Management/ Administration,
Revenue Budgeting, Revenue Assessment/ Billing, Payment Processing and Receipting,
Accounting and Reporting, evaluation, e-physical planning, and General Features.

I undertook an audit of IRAS and other systems incidental to its operation covering a
period of six FYs from 2018/19 to 2023/24.

Key Findings

From the review of the IRAS, I noted several good practices that Management should
be commended for. The key ones include the following;

i) A review of the IRAS application indicated that it was implemented in 166 out of
176 higher Local Governments (i.e. 94.3%) and 2,102 out of 2,185 Lower Local
Governments (i.e. 96%) as of June 2024. In the past six financial years, a sum
of UGX.194Bn was collected through the IRAS solution where it is being
implemented.

ii) I noted that a total of 1,554,604 taxpayers were registered and active in the
IRAS solution, in the one hundred sixty-six (166) Local Governments where the
solution is being implemented.

iii) The average cost of implementing IRAS per site was about UGX.269Mn
(excluding VAT), with this cost covering a Higher Local Government (HLG)
including all its Lower Local Governments (LLGs). As such, the Government of
Uganda has approximately UGX.44.65Bn to implement IRAS in 166 sites (both
Higher and Lower Local Governments). Implementation of the IRAS model has
resulted in cost savings for the Government, due to the centralized nature of the
system, as well as the treatment of all LLGs as part of the Higher LG, in each
locality.

However, I noted some areas that require improvement. I proposed recommendations

that management should implement to improve the effectiveness of the implementation
of the IRAS, as indicated in the table below;

SN Area of Improvement Recommendation

1 The integration/interface with the I advised management to expedite the
Programme Budgeting System (PBS) was integration between the systems to
not implemented at the time of the audit. facilitate automated NTR budgeting
Consequently, the system lacks an processes, streamline operations, and
automated mechanism for enabling Non- enhance financial management.
Tax Revenue (NTR) budgeting processes in
the Lower Local Authorities.

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SN Area of Improvement Recommendation
2 I observed several disparate revenue I advised management to engage relevant
collection systems exist within the Local stakeholders to explore options for
Governments. The LGFC adopted the IRAS, streamlining or integrating the various
while the MoLG adopted the ELOGREV systems to enhance process efficiency,
system. Additionally, Kampala Capital City data accuracy, and security, and reduce
Authority (KCCA), under the Uganda operational costs.
Revenue Authority Tax Registration and
Expansion Project (TREP), deployed the E-
CITIE System. This has resulted in
increased maintenance costs and
duplication of services.

3 I noted that the LGFC lacked appropriate IT I advised management to expedite the
governance structures such as IT Steering establishment of IT governance
and Strategy Committees, which may lead structures, including IT Steering and
to misaligned investments. Strategy Committees, to align IT
strategies with organizational goals,
optimize IT resource utilization, and
ensure robust oversight of IT initiatives.

4 Despite the extensive rollout of the IRAS I advised Management to establish a fully-
solution and the presence of IT fledged IT department and develop the
infrastructure at the Commission, LGFC capacity to operate the system internally.
does not have a fully established IT
department. This may limit the realization of
the full benefits of the system.
5 Critical IT policies had not been approved I advised Management to adopt a
by the Commission, namely; Risk proactive approach to IT governance by
Management Policy, Security Policy, IT developing, approving, and maintaining a
Strategic Plan, and IT Policy. This may lead comprehensive set of IT policies.
to inconsistent application of IT procedures
and standards.

6 The Commission did not have an updated I advised Management to develop an IT

Disaster Recovery Plan. This may result in continuity and disaster Recovery Plan to
confusion and delays during recovery ensure that IT continues to serve the
efforts, in the event of a disaster. business under all circumstances.

7 I noted absence of an established process I advised Management to expedite the

for conducting system upgrades within establishment of a formal process for
LGFC. conducting system upgrades, to ensure
they are well-managed and adhere to
best practices.

8 LGFC lacks a formalized policy for granting I advised management to establish and
access to the system's database, implement a formalized policy for granting
compromising the security and integrity of access to the system's database to ensure
the database. This is due to the absence of security and integrity.
a formal policy and documented procedures
for user account creation and access
management.

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 SN Area of Improvement Recommendation
9 LGFC lacked documented network security I advised Management to expedite the
policies and procedures. There were no establishment of clear network access
guidelines governing network access, control guidelines, to ensure only
implementing data encryption, and authorized personnel can access the
responding to security incidents. network, and implement robust data
encryption and security incident response
protocols.

Conclusion

The LGFC has made significant progress in automating revenue management in Local
Governments through the implementation of the IRAS application. This has reduced the
manual processes, created efficiencies and improved revenue collection in Local
Governments. However, several areas of improvement have been identified in the
detailed audit findings that require immediate attention from Management, to enhance
the overall performance and sustainability of the system and revenue management.
Addressing these issues will optimize the benefits of the IT systems and ensure the
protection of information assets.

4.1.2 Electronic Court Case Management Information System at Judiciary

Introduction

The Electronic Court Case Management Information System (ECCMIS) is a fully-featured

system that automates and tracks all aspects of a case lifecycle, from initial filing
through disposition and the filing of appeals, for each party involved in any case type.

The system was designed based on the Judiciary business rules, requiring minimal
human intervention. It can facilitate the efficient and reliable collection, organization,
distribution, and retrieval of significant amounts of case-specific data as well as the
processing of payment of relevant court fees and fines. The system can generate
reports from the system for decision-making. The following are the key
processes/functions that the system facilitates: e-filing of cases, e-payment for the
applicable court fees, mobile phone access for case status inquiry/follow-up, e-
processing of cases, and reporting/analytics.

I undertook the audit of ECCMIS and other systems incidental to its operation covering
the period of 2 Years and 5 months from March 2022 to June 2024.

Below is a summary of my key findings;

Key Findings

Based on the review of the ECCMIS, I commend the Judiciary Management for several
practices, including but not limited to the following;

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i) The current implementation of the ECCMIS allows a litigant to perform multiple
tasks - such as preparing a suit, filing it, paying fees, downloading summons,
serving the defendant, filing a consent settlement, and recovering for the client -
without needing to visit the courthouse. This was not possible during the manual
file system era.
ii) It was noted that Management periodically conducts security awareness training
for its employees to mitigate risks associated with its information assets.
iii) The system is configured with notifications that alert both external and internal
users about the progress of their cases. This helps in enhancing transparency,
ensuring timely updates, and improving overall efficiency in case management.

However, I noted some areas that require improvement. I have proposed

recommendations, that management should implement to improve the effectiveness of
the implementation of the ECMMIS, as indicated in the table below;

SN Area of Improvement Recommendation

1 System Integration
The ECCMIS requirements documents, initial I advised management to expedite the
scope, and contract highlighted the need for completion of interfaces where progress
interfaces with other systems within and had already been made. For interfaces
outside the Judiciary. Apart from the URA where work had not yet started,
eTax system, other proposed integrations had management should initiate their
not yet been implemented by the time of this implementation promptly.
audit, potentially leading to inconsistencies in
data across government systems.

2 Manual Processes
Some case filing processes are still manual, I advised management to consider
such as the entry of subject matter amounts reconfiguring the ECCMIS to eliminate
and forwarding of cases, increasing the risk of unnecessary manual processes to
human error. achieve efficiency in court processes.

3 System Downtime
ECCMIS experienced frequent downtimes due I advised management to explore the
to reliance on a single Internet Service feasibility of contracting multiple ISPs
Provider (ISP) (i.e. NITA-U), resulting in along with multiple upstream providers
system unavailability during provider-related to reduce redundancy and ensure
issues and disrupting case processing. reliability.

4 NTR Reporting
There was a variance of UGX.5.6Bn between The Accounting Officer was advised to
the Non-Tax Revenue (NTR) recorded by expedite the rollout of ECCMIS, to all
ECCMIS and the revenue reported in the operational court stations across the
Judiciary financial statements for the period country to ensure comprehensive and
from 2020/21 to 2022/23, which undermines consistent recording of NTR in both
financial reporting accuracy. ECCMIS and the Financial Statements.

5 Service Level Agreement

No evidence of an Service Level Agreement The Accounting Officer was advised to
(SLA) between the IT department and user establish a formal Service Level
departments was presented, leading to Agreement (SLA) between the IT

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 SN Area of Improvement Recommendation
unclear performance metrics. department and user departments.

6 IT Staffing Gaps
Several vacant positions in the approved IT The Accounting Officer was advised to
staff structure resulted in insufficient staffing continue engaging relevant stakeholders
levels, to meet operational demands. to fill the vacant positions.

7 IT Continuity Plan The Accounting Officer was advised to

The Judiciary had not developed a formal IT expedite the review and approval of the
Continuity Plan, risking major operational Backup, Disaster Recovery, and Business
disruptions in the event of a disaster. Continuity Strategy.

8 Automated Payment Reconciliation

The system lacked automated payment The Accounting Officer was advised to
reconciliation, requiring manual verification prioritize the development and
and creating opportunities for fraudulent implementation of fully automated
activities. reconciliation functionality in ECCMIS.
9 Case Assignment and User Access
ECCMIS lacked adequate controls for I advised management to conduct a
assigning cases and restricting user access thorough review of staffing levels at all
based on roles and responsibilities, increasing court stations to ensure that there are
the risk of unauthorized access to sensitive sufficient personnel to handle the
data. designated roles without the need for
dual responsibilities.
10 Log Management Policy
The Judiciary lacked a comprehensive Log I advised management to prioritize the
Management Policy, and the location development of a comprehensive Log
intended for storing database audit trail logs Management Policy that outlines
was accessible to both database procedures for logging, storing, and
administrators and system developers, posing reviewing database activities as guided.
a significant risk.

Conclusion

The automation of court case management processes by the Judiciary has significantly
reduced manual procedures, created efficiencies, and improved revenue collection.
However, several areas for improvement have been identified requiring immediate
attention from Management to enhance the system's overall performance and
sustainability. Addressing these issues will optimize the IT system's benefits and ensure
the protection of information assets.

4.1.3 Express Penalty Scheme System at the Uganda Police Force

Introduction

The Express Penalty Scheme (EPS) System is used by the Traffic Directorate of Uganda
Police Force (UPF) in the management of revenue generated by the Uganda Police
through the issuance of tickets to the various motor vehicle users that commit offences
that have been listed in the Traffic and Road Safety Act. Cap 347. The EPS was first

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introduced in 2005 and was developed to enforce compliance with Traffic Regulations
and enforce discipline on roads in Uganda.

The EPS is integrated with the Uganda Driver Licensing System (UDLS), who are
mandated to issue driving permits on behalf of the Government. This integration is a
result of many drivers not possessing or/and forging driving permits which is an offence
under the Traffic and Road Act.

The Information Systems audit focused on the acquisition, deployment, and

management of the EPS System, the evaluation of general and specific controls applied
to the system and the overall environment since its inception. Emphasis was put on the
evaluation of IT Governance, Application Controls, Database Management Controls,
Operating System Management controls, Network Security Controls, and other general
controls.

I undertook the audit of EPS and other systems incidental to its operation covering 2
Years.

Below is a summary of my key findings of the audit;

Key Findings

Based on the review of the EPS system, I commend the Management of the UPF for
several commendable practices, including but not limited to the following;

i) The system's automation led to a 70% increase in revenue, a reduction in errors

in data entry, and improved reconciliation with the Uganda Revenue Authority
(URA) as Payment Registration Numbers (PRNs), were automatically generated
through the EPS system.
ii) The development of the EPS system was primarily handled by staff from the
UPF, with support from the Uganda Revenue Authority. The internal
development brought numerous positive outcomes, such as capacity building for
staff involved in the project, cost savings compared to hiring external vendors,
and full ownership of the application and its source code.

However, I noted some areas that require improvement as summarized below. I have
proposed recommendations, that Management should implement to improve the
effectiveness of the implementation of the EPS, as indicated in the table below;

SN Area of Improvement Recommendation

1. A business case for the project was neither I advised management to adopt the
prepared nor presented to any committee or practice of requiring a comprehensive
Management for review and approval. This business case for all proposed IT
implies that the EPS system was not thoroughly initiatives before committing
discussed or justified before its inception. resources.

2. The UPF had not implemented governance I advised management to expedite the
structures regarding IT Management despite development and finalization of the IT
their heavy reliance on IT resources to attain Digital Transformation Strategy,

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 SN Area of Improvement Recommendation
business objectives. This poses a risk of emphasizing IT Governance structures
misalignment of IT projects to the UPF's overall to ensure alignment of IT projects
strategic objectives. with UPF Strategic Objectives.

3. UPF did not have a separate approved ICT The accounting officer was tasked
Strategy to realize the goal of digitalizing with a standalone ICT Strategy to
processes. As a result, several ICT-related ensure focused and comprehensive
Strategic Objectives were not implemented or planning for IT initiatives and achieve
only partially implemented, leading to delays in digitalization goals.
the digitalization of processes.

4. The UPF did not have an approved ICT staff The accounting officer was tasked to
structure. As a result, most IT personnel carried expedite the approval and
out conflicting roles in their day-to-day implementation of a robust ICT staff
operations. structure with associated job
descriptions to improve service
delivery and segregation of duties.

5. The UPF did not have an IT security policy to The accounting officer was tasked to
guide Management in the protection of prioritize the approval and
information assets. This exposes the UPF implementation of the IT security
systems to security vulnerabilities like denial-of- policy to minimize risk and protect
service attacks, hacking, password cracking, information assets from security
and electronically engineered fraud. vulnerabilities like denial-of-service
attacks, hacking, password cracking,
and fraud.

6. The UPF systems were not integrated, resulting I advised management to expedite the
in manual or non-existent data sharing between integration of planned systems to
them. enhance efficiency and data
consistency across the organization.

7. The Force did not have both Business Continuity I advised management to fast-track
and Disaster Recovery Plans in place the approval and implementation of
encompassing business impact analysis, all key comprehensive Business Continuity
business functions and processes, roles, and Disaster Recovery Plans
responsibilities, and communication processes. (BCP/DRP) to prevent prolonged
This may lead to prolonged disruptions of business disruptions.
business.

Conclusion

I observed that the EPS System had enabled the Traffic and Road Safety Directorate of
the Uganda Police Force, to automate the punishment of traffic offenders in real-time,
by way of issuing fines and penalties with the view of enforcing driver discipline among
road users across the country. However, weaknesses still exist regarding IT governance,
system design and general controls. Given the criticality of the system, Management
should take appropriate and timely action to address the reported audit findings and
recommendations to ensure that confidentiality, availability and integrity of information

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 in the system are maintained, which will in turn enable the Uganda Police Force to meet
its objectives.

4.1.4 Parish Development Model Management Information System at the Ministry

of Information, Communication Technology and National Guidance

Introduction

The government of Uganda, through the Ministry of Ministry of Information,

Communication Technology and National Guidance, developed a Parish Development
Management Information System (PDMIS) to support the implementation of the Parish
Development Model (PDM), with the ultimate objective of improving accountability,
transparency, efficiency and effectiveness in service delivery.

The PDMIS was envisioned as an integrated system that seeks to support community
profiling, data collection, analysis, tabulation, storage, and dissemination at all levels.
This system will also enable the digitization of all processes across all the PDM pillars, to
support planning and decision-making at the grassroots and national level.

The PDMIS modules were implemented as stand-alone systems with specific

functionality for registration and data collection, financial inclusion, monitoring &
evaluation and citizen participation and information system.

I undertook the audit of PDMIS and other systems incidental to its operation covering 2
financial years. Below is a summary of my key findings of the audit;

Key Findings

From the review of the PDMIS, I noted several good practices which included the
following;

i) Management completed the integration of the PDMIS with some external

entities, including the National Identification and Registration Authority (NIRA),
the Insurance Consortium of Uganda (ICU), Centenary Bank, and Wendi (a
consortium of Postbank, Housing Finance, and Pride Microfinance banks).

ii) Additionally, the integration with Equity Bank, Stanbic Bank, and Opportunity
Bank is in the final stages of User Acceptance Testing (UAT). This demonstrates
significant progress in enhancing the system's connectivity and functionality.
Management continues to work towards further integrations, with the interface
and Application Programming Interface (API) for the Integrated Financial
Management System (IFMS) pending provision by the Ministry of Finance,
Planning, and Economic Development (MoFPED).

iii) As a result of the development and operationalization of the financial inclusion

and registration Module, a total of 10,594 SACCOs had been capitalized with
approximately UGX.2.1 trillion, as at 30th July 2024. Out of this amount,
UGX.1.357 trillion was initiated through the PDMIS, and UGX.1.135 trillion had

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 been approved and disbursed to 1,154,758 beneficiaries, via the PDMIS. This
demonstrates the significant impact of the initiative on enhancing the
functionality and effectiveness of the PDMIS in supporting the Parish
Development Model.

However, I noted some areas that require improvement. I have proposed

recommendations, that Management should implement to improve the effectiveness of
the implementation of the PDMIS, as indicated in the table below;

SN Key Finding Recommendation

1 Absence of Audit Review Functionality Management should build internal
The Lack of internal and external audit roles audit capacity and integrate it into the
during system development weakens control system implementation plan.
and could impact IT investment effectiveness. Management should also provide for
external audit access-only
functionality.

2 Failure to Undertake IT Risk Assessments Management is advised to customize

There was no IT risk management framework and tailor the IT risk management
or policy; risks were not monitored or managed framework to better fit the Ministry’s
effectively. needs.

3 Unfilled IT Positions Management is advised to engage

Out of 43 approved IT positions, 27 were relevant stakeholders to expedite the
vacant, including critical roles such as filling of vacant positions to ensure
Commissioner ICT and three Assistant effective staffing and operation.
Commissioners ICT, affecting leadership and
digital transformation goals.

4 Absence of IT Strategic Plan I advised management to develop a

The Ministry lacks a comprehensive standalone standalone IT strategic plan that aligns
IT strategy, leading to uncoordinated projects with the Ministry’s strategic objectives
and reactive decision-making. and facilitates resource management.
5 No IT Steering Committee Management should establish an
The absence of a high-level IT Steering entity-wide IT Steering Committee to
Committee results in misalignment with oversee and align IT initiatives
strategic objectives and potential resource comprehensively.
wastage.

6 No Independent Quality Assurance for Management is advised to conduct

PDMIS independent quality assurance
The lack of independent quality assurance assessments to ensure the system
could lead to system failures and non- meets requirements and industry
compliance with standards. standards.

7 Unsatisfactory Management of System Management is advised to come up

Upgrades and Changes with a policy that details the
There was no record of changes made to the procedures to be undertaken while
PDMIS modules, as well as approval of changes making changes to systems and
by the Accounting Officer and other key expedite the constitution of a change
business process owners of the PDMIS systems. management committee that will
The practice for change management was ad- govern the changes.

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 SN Key Finding Recommendation
hoc.
8 Errors in Loan Acquisition Reports Management should update the
I noted errors in the loan acquisition reports system with all information that
data such as an incomplete number of reflects all PDM beneficiaries'
beneficiaries captured on the Financial Inclusion transactions for centralized reporting
System (FIS) and Disbursed Capitalization purposes and consider setting up a
funds not captured in the FIS. task force to reconcile this information,
capture information to update the
system and enforce the usage of the
system.

Conclusion

I observed that while wide-ranging system controls have been implemented to enhance
the efficiency and effectiveness of the PDMIS operations, there are existing gaps that
have hindered its full utilization and its ability to serve as a real-time central repository,
for all information related to the Parish Development Model and the Parish Revolving
Fund. Given the critical role of the PDMIS in achieving the objectives of the Parish
Development Model, these gaps should be addressed promptly and comprehensively, to
enhance the confidentiality, availability, and integrity of PDM information. This will also
support the Ministry of Information Communications Technology and National Guidance,
in successfully realizing Pillar 6 of the PDM.

4.1.5 Grants Management System at the Uganda National Council for Science and
Technology

Introduction

The Uganda National Council for Science and Technology (UNCST) in partnership with
the Association of African Universities (AAU), under the support of the Science Granting
Council Initiative (SGCI) Africa undertook to upgrade the UNCST partial Online Research
Grants Management System, for the benefit and adoption of other Science Granting
Councils (SGCs) across sub-Saharan Africa.

The system scale-up was to cover the entire grants management cycle - from issuing
calls for research proposals to the preparation of project completion reports. This
scaled-up solution supports oversight, data capture, data management, data validation,
quality control, and regulatory compliance to research management in Uganda.

I reviewed the Grants Management System and other systems incidental to its
operations, the Audit scope of this audit encompassed a comprehensive review of the
system right from its initiation in the year 2017.

Below is a summary of my key findings.

Key Findings

I reviewed the Grants Management System (GMS) in UNCST and observed that
Management implemented virtualization technology, to utilize its available information

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technology resources to provide services. This has led to better utilization of hardware
and reduced the need for additional physical servers.

I, however, noted some areas that require improvement if UNCST were to utilize its
systems efficiently and effectively to achieve the intended purpose. I have proposed
recommendations, that Management should implement to improve the effectiveness of
the implementation of the system, as summarized in the table below;

SN Area of improvement Recommendation

1 The Grants Management System (GMS) The accounting officer was advised to
acquired in 2017 has been significantly conduct a comprehensive review of the
underutilized, due to the absence of system to assess alignment with current
innovation fund allocations, over the past and future business objectives.
five years, leading to a misalignment of IT
resources and wastage of funds.

2 There were no formal IT governance or IT I advised management to;

staff structures, leading to inefficient use  Establish IT governance structures and
of IT resources, potential security develop a clear IT staff structure.
vulnerabilities, and strategic misalignment,  Implement IT governance frameworks
which can hinder effective technology and risk management processes.
leverage.

3 The IT policy exists only in draft form and The Council was advised to prioritize the
has not been formally approved, leading formal review and approval of the existing
to inconsistencies in IT management IT policy, to ensure alignment with best
practices and increased vulnerability to practices and organizational objectives.
security breaches and compliance
challenges.

4 The ICT strategy has not been reviewed The Council was advised to evaluate the
or updated since its validity period ended current ICT infrastructure and develop an
in 2020, resulting in outdated technology updated ICT strategy aligned with current
infrastructure and misalignment with needs and future challenges.
organizational goals, hindering the ability
to respond to new technological trends.

5 There was a lack of robust mechanisms I advised management to implement proper

for actively monitoring IT operations IT Service Management practices and
against predefined service levels, leading internal SLAs, to ensure IT delivers
to operational discord, reduced service intended value.
quality, and missed improvement
opportunities.

6 The Business Continuity and Disaster I advised management to review and

Recovery Plan (BCP/DRP) remains in draft update the draft plan to cover all critical
format, leaving UNCST unprepared to areas and align with current organizational
manage disruptions effectively, potentially needs and external risks.
leading to prolonged downtime and
operational halts.

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 SN Area of improvement Recommendation
7 There was no Business Impact I advised management to undertake a
Assessment (BIA) conducted, leading to comprehensive Business Impact
inefficient resource allocation and potential Assessment to identify and analyze
shortages during a crisis, which can business functions and resources.
increase operational costs and risks during
business disruptions.

8 The Grants Management System (GMS) Implement stringent data type validation
lacks data type validation, leading to data controls to ensure only appropriate data
integrity problems and compromised types are accepted in each field.
reliability of reports and analytics,
impacting decision-making and
organizational performance.

9 Despite UNCST disbursing grants, there The Council should establish a mandatory
were no grant monitoring reports within process for creating and submitting detailed
the system, raising concerns about the grant monitoring reports for all current and
appropriate use of grant funds, potentially future grants.
leading to non-compliance with grant
agreements and misuse of funds.

Conclusion

I observed several areas for improvement in system design, general controls, and
specific controls, as highlighted in the detailed report. Given the criticality of this
system, addressing these areas is essential to enhance system efficiency, ensure
confidentiality, availability, and integrity of information, and enable the Council to
effectively execute its mandate.

4.1.6 Gorilla/Chimpanzee Reservation System at Uganda Wildlife Authority

Introduction

The Uganda Wildlife Authority (UWA) is a semi-autonomous Uganda Government

Agency with the mandate to conserve, manage, and regulate Uganda’s wildlife. The
Authority is further mandated to ensure sustainable management of wildlife resources
and supervise wildlife activities in Uganda, both within and outside the protected areas.

UWA implemented the smart card-based system in 2014 in 2014 across major National
Parks to handle Gorilla and Chimpanzee permit reservations and bookings.

However, the system was phased out during the COVID-19 lockdown in 2020 due to its
challenges and support issues. The Authority later attempted to replace the system by
contracting M/s MFI solutions at a contract price of UGX.300Mn with 30% (ie
UGX.90Mn) paid upfront. However, this did not take off due to several challenges, thus
the expenditure was wasted. Consequently, Management resolved to internally develop
an interim solution/system - the Gorilla/Chimpanzee Reservation System (Go-Chimp),

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which was put in operation from April 2022 until September 2023 when serious
challenges were reported.

Accordingly, I found it imperative to undertake the audit of the GoChimp system and
other systems incidental to its operation. The audit scope covered four FYs 2020/21 to
2023/24.

Below is a summary of my key findings;

Key Findings

From the review of the system, several commendable practices were identified. These
practices demonstrate the commitment of the management to ensuring the system's
effectiveness and efficiency. Notable among these were:

Management has effectively engaged with stakeholders throughout the implementation

of the new system (BARCS) that is replacing GoChimp. I noted that regular training
sessions were conducted to ensure that all users, including tour operators, park clerks,
and administrators, were well-versed in using the system. This will eventually lead to
better user adoption and minimize errors due to user misunderstanding.

In spite of the above, I noted some areas that require improvements. I have proposed
recommendations, which management should implement to improve the effectiveness
of the IT usage in the entity, as below;

SN Area of Improvement Recommendation

1 Tracked Permits with deposited amounts I advised management to
less than the total invoiced/activity reconcile the variances between
amounts the stipulated total activity
I noted that there were variances between the amounts and the amounts paid.
stipulated total activity amounts and the amounts
paid, totaling UGX.3,336,310 and USD.1,260,810
for bookings that were confirmed.
2 Irregularities in payment status of Tracked I advised management to review
Permits in the System the identified discrepancies and
I noted 1,264 tracked permits had neither a ensure they put in place system
recorded activity value nor a corresponding controls that ensure transparency
deposit amount. Additionally, 104 permits had a and accuracy of revenue
recorded activity value of USD 137,300 but lacked management.
corresponding deposit amounts.
3 Disparate/Disintegrated Systems I advised management to take
I noted a delay in the integration of the 15 steps to integrate its systems and
systems that UWA utilizes to fulfil its mandate, automate information sharing to
which hampers information sharing, seamless improve operational efficiency and
operations and full automation of the entity's reduce the occurrence of errors.
environment.
4 No segregation of duties I advised management to
I noted a Violation of the Principle of Segregation proactively strengthen internal

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SN Area of Improvement Recommendation
of duties and observed that UWA staff were controls, such as implementing
reserving gorilla permits as tour operators, while tighter controls over permit
other some staff members were found to be reservation systems and
undertaking full-time employment with tour conducting regular audits of
operators while still employed by UWA. employee activities, to mitigate
the risk of future incidents.
5 Irregularities in the acquisition of ICT I advised management to strictly
Systems at UWA adhere to the regulatory
These were: non-approval of the procurement framework and mitigate the risk
method by the contracts committee, failure to of non-compliance with the PPDA
conduct a market survey, retrospective submission Regulations.
of the N7 form to NITA-U, irregular receipt and
evaluation of a single bid and irregular extension
of the bid validity.
6 Irregularities in the Gorilla Permit I advised Management to review
Reservations the identified discrepancies and
These included unsupported cancellations, ensure they put in place systems
incomplete/missing Tour company details, controls that ensure transparency
unauthorized rescheduling of bookings, and accuracy in the new booking
incomplete deposits and discrepancies in the system.
confirmed bookings.
7 Rescheduling of already Cancelled Permits I advised management to review
and Rescheduling of already Tracked the identified discrepancies and
Permits enhance the system to
There were 25 instances where permits that were automatically lock permits that
previously cancelled were rescheduled and have been used for tracking,
instances where Permits that had already been preventing any further
used for gorilla or chimpanzee tracking activities rescheduling.
were found to be rescheduled.
8 Unsupported Complementary Permits I advised management to put in
I noted unsupported complimentary permits and place administrative controls in
unsanctioned issuance of Free Tracking Passes. the reservations process and
ensure strict adherence to ensure
there are no unauthorized
issuance of gorilla tracking
passes.
9 Financial Discrepancies in Permit I advised management to
Reservations and Purchases. consider the implementation of
I discovered non-compliance with the full payment stringent data validation rules at
requirement, incomplete payments for reserved the point of data entry to ensure
permits, unpopulated monetary fields and gaps all fields are populated with
with the system controls that allowed for such accurate and relevant information
irregularities. in the new system.
10 Weaknesses in the implementation of the I advised management to
Booking and Revenue Collection System consider addressing the gaps in
(BARCS) the new system to ensure full
The system had not yet achieved full automation, utilization of the same.
and the self-service module had not yet been
implemented.

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 Conclusion

The Management of UWA has made progress in automating the reservation and booking
(BARCS) processes, in their transition from the Smart Card, and Go-Chimp, to finally
implementing the BARCS information systems. This transition has to some extent
increased efficiency, and improved revenue collection. However, to fully realize the
potential of the BARCS system, several areas require immediate attention, especially the
increased manual processes. Enhancing the system's performance and sustainability will
not only optimize the benefits of automation but also ensure the continued protection of
UWA’s information assets.

4.1.7 Data Archiving Systems at the Ministry of Works and Transport

Introduction

The Government of Uganda through the Ministry of Works and Transport (MoWT)
entered a contract with M/s Face Technologies (Pty) on the 5th of November 2018 to
supply, Deliver and install the digital archiving system and re-modelling of storage space
under Phase 1 at the contract sum of UGX.3Bn. Five million Driving Permit records had
to be digitalised.

The Ministry of Works and Transport awarded another contract worth UGX.29Bn to M/S
Face Technology (PTY) Limited to undertake the archiving of the Uganda Driving
permits still outstanding at the end of phase 1, as archiving of motor vehicle registration
records at URA, remodeling of the Uganda railway main station and Uganda Revenue
Authority warehouse for motor vehicle records Kampala.

Relatedly, the Ministry of Works and Transport awarded an additional contract worth
UGX.22Bn to M/s TISCON Consultancy for a consultancy of the functional design and
supervision of the Motor Vehicle Registration System.

As a result, I undertook an audit on the Data Archiving Systems to establish whether

the system was safeguarding the entity’s assets, maintaining the integrity of stored and
communicated data, supporting the MoWT objectives effectively, operating efficiently,
and making recommendations for improvement of the system. The audit covered a
period of four and a half years (2019/2020 to December 2023/2024).

Below is a summary of my key findings of the audit.

Key Findings

From the view of the data archiving systems at The Ministry of Works and Transport
(MoWT), I noted that the MoWT had made significant progress in Motor Vehicle
registration as part of its mandate through the implementation of the Motor Vehicle
Archiving System application. This has reduced the manual processes, created
efficiencies, and improved e-tax revenue collection on Motor Vehicle Registration.

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However, I noted some areas that require improvement. I proposed recommendations,
that Management may implement to improve the effectiveness of the implementation of
the Data archiving system(s) and Motor Vehicle Registration, as indicated in the table
below;

SN Area of Improvement Recommendation

1. Although the need for IT strategic planning is I advised The Accounting Officer to
known by MoWT Management, IT planning is expedite the finalisation of an IT
performed on an as-needed basis in response Strategic Plan with due consideration
to a specific business requirement. The of the ongoing RAPEX aimed at
alignment of business requirements, streamlining the Ministry’s IT
applications and technology takes place investments.
reactively rather than by an organization-wide
strategy. The strategic risk position is identified
informally on a project-by-project basis.
Management explained that the strategic plan
development was in process.

2. The Ministry had decommissioned the archiving I advised Management to ensure that
systems without adherence to the system going forward the system
closure procedures; The systems include Phase decommission procedures are
1 of the contract for the Digital Archiving of documented and adhered to during
Driver permits between GoU and M/S Face the subsequent system decommission
Technology and Phase 2 of the Digital initiatives.
Archiving of driver permits and motor vehicle
records (GoU and M/S Face Technology).

3. I noted understaffing within the IT unit in the I advised the Accounting Officer to
Ministry, the IT unit establishment had nine continue engaging the relevant
positions in the Information Technology (IT) stakeholders such as the Ministry of
unit, these include the Principal IT Officer (1), Public Service, the Ministry of ICT and
Senior IT Officer (2), Senior Information National Guidance and the Ministry of
Scientist (1), IT Officer (4), and Librarian (1), Finance Planning and Economic
however, five positions are fully occupied and Development on the improvement of
five are still vacant. the wage bill and operationalization of
the new organisation structure.

4. There was the absence of an IT Steering I advised the Accounting Officer to

Committee despite the Ministry’s heavy IT expedite the composition of an IT
investments. The absence of an IT steering Steering Committee (or equivalent)
committee may be attributed to a lack of composed of executive, business and
appropriate IT policies and Governance IT management to guide the
framework. implementation of IT initiatives in the
Ministry.

5. Although the Ministry has implemented a I advised the Accounting Officer to

disaster recovery site, I established that the expedite the development of a
MoWT does not have both the Business Business Continuity Plan and Disaster
Continuity Plan (BCP) and the Disaster Recovery Plan to ensure that IT
Recovery Plan (DRP) to aid in the resumption continues to serve the business in
of business in the event of any disaster. whatever circumstances.

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 SN Area of Improvement Recommendation
6. I noted delayed implementation of the motor I advised Management to expedite the
vehicle registration system, five months design and subsequent implementation
(September 2024) after the expected of the Motor Vehicle Registration for
implementation date, the Ministry is yet to the country to realize the envisaged
implement the solution, and the entity benefits.
continues to use the Uganda Revenue
Authority Electronic Tax System (e-Tax) to
execute its mandate of Motor Vehicle
Registration.

7. Whereas the contracts guide Intellectual I advised the Accounting Officer to

Property Rights, the contracts do not explicitly ensure that signed contracts for the
demand the ownership or transfer of the provision of IT systems extensively
source code of the system to the Government, address all aspects of Intellectual
restrictions on access to the source code, and Property Rights; including the
Source Code Escrow arrangements either ownership or transfer of the source
optional or mandatory. code, access to the source code, and
Source Code Escrow (whether Optional
/Mandatory).

8. M/s Tiscon Consultancy reported a total of I advised Management to put more

UGX.3,580,183 MV records archived during the effort into the independent internal
three quarters, the actual data on the system control system that will ensure that the
contained a total of UGX.5,119,931 MV records vendor performance reports are
for the same period hence resulting in a verified against the actual deliverables.
variance of UGX.1,539,748

Conclusion

The Ministry of Works and Transport (MoWT) made significant progress in Motor Vehicle
registration as part of its mandate through the implementation of the Motor Vehicle
Archiving System application. However, areas requiring improvement were identified in
the report, necessitating immediate attention from Management to enhance the overall
performance and sustainability of the system and Motor Vehicle Registration processes.
Addressing these issues optimized the benefits of the IT systems and ensured the
protection of the Government's information assets.

4.1.8 Electronic Local Government Revenue Management System of the Ministry of

Local Government

Introduction

The Ministry of Local Government (MoLG) in Uganda manages key programs, including
PRELNOR, MATIP, AGRI-LED, and TREP, aimed at improving local governance and
economic growth. As part of a tax reform strategy initiated in the fiscal year 2015/2016,
the government sought to boost domestic revenue by introducing automated systems
for tax collection and business registration. The Local Government Revenue Collection
and Management System (LGRMIS), known as E-LOGREV, was established to streamline

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taxpayer registration, assessments, e-payments, reconciliations, enforcement, reporting,
and integration with other government systems.

E-LOGREV serves as a web-based platform enabling clients to submit applications,

monitor application statuses, conduct self-assessments, register and track payments,
print payment advice forms, and access acknowledgements and notices. This system
enhances transparency and efficiency in local revenue management.

To ensure the effectiveness of E-LOGREV, evaluating its integrity, consistency, and

availability is crucial, focusing on General, Application, and Database controls. I found it
imperative to audit the Electronic Local Government Revenue Management System
(ELOGREV). I conducted a thorough review of the System Development Lifecycle
(SDLC) to ensure best practices in planning, design, implementation, and maintenance
were followed. The audit covered six financial years, from 2019/20 to 2023/2024.

Below is a summary of my key findings of the audit.

Key Findings

From the view of the ELOGREV, I noted achievements that Management should be
commended for such as the establishment of a standby call centre to address the user-
related challenges that arise from system usage; this has improved the system uptake
and usage by the Local Governments; a total of 347,261 taxpayers were registered and
active in the system in the Ten (10) Higher Local Governments and 61 Lower Local
Governments where the solution is implemented with valid contracts signed with the
system vendor.

However, I noted some areas that require improvements where I have proposed
recommendations that Management may implement to improve the effectiveness of the
implementation of the ELOGREV, as indicated in the table below;

SN Summary of the Findings Recommendation

1. ELOGREV has interfaced with URA E-Tax and Management should expedite
NIRA NSIS, but not with URSB, PBS, and engagements with relevant stakeholders
IFMS. This limits automation in taxpayer to secure necessary interfaces.
detail fetching, NTR reporting and budgeting
processes, resulting in inefficiencies.

2. The contract with M/s Tucksee Pty Limited Management should ensure future
does not clearly state the requirement for contracts explicitly specify source code
source code transfer to the Government, ownership to align with best practices
complicating future system maintenance, and enhance transparency and
updates or modifications. accountability.

3. The absence of IT governance structures Management should establish IT

such as IT Steering and Strategy Steering and Strategy Committees and
Committees, and the lack of SLAs with IT formulate SLAs and service charters to
vendors and user departments, may cause define clear performance metrics and
misalignment of IT investments with business ensure alignment with organizational
goals and hinder performance measurement. goals.

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SN Summary of the Findings Recommendation
4. Without formal master data management Management should expedite the
policies or procedures, vendor data development and implementation of
modifications are made ad-hoc, risking data master data management policies and
inconsistencies, errors, and security procedures to guide the vendor and
vulnerabilities. ensure data integrity.
5. No IT risk management policy is in place, and Management should develop and
internal audit activities are limited to physical implement an IT risk management
verification, leading to potential unchecked framework to conduct continuous risk
IT risks and vulnerabilities. assessments and enable internal audits
to address IT-related risks effectively.
6. The ELOGREV rollout cost per site is UGX Management should review and adjust
249.99 million, while IRAS treats Higher and the costing model to optimize resource
Lower LGs as single sites, resulting in cost utilization and minimize costs by
savings. The current model leads to high adopting a more unified and efficient
costs and resource duplication. approach.

7. ELOGREV, intended for widespread Management should continuously

deployment to enhance revenue engage relevant stakeholders to ensure
management in Local Government units, has enhanced and sustainable project
been implemented at only 71 out of 2,366 financing. The rollout of ELOGREV
sites since the 2014/2015 financial year. This should be harmonized with other
slow rollout limits the benefits of improved systems like ECITIE and IRAS to avoid
revenue collection, accountability, and duplication and resource wastage.
operational efficiency.

8. MoLG lacks key IT policies such as an IT Management should proactively develop

Strategic Plan, Risk Management Policy, and and maintain comprehensive IT policies,
Security Policy. Policies are developed and including Risk Management, Security,
communicated reactively and inconsistently, and IT Strategic Plans. Formal processes
leading to unmanaged IT-related issues, non- for policy development, review, and
compliance, and misalignment with communication should be established.
organizational goals.

9. MoLG lacks updated Disaster Recovery and Management should develop IT

Business Continuity Plans and has not continuity and disaster recovery plans,
conducted disaster simulations or trained establish critical teams and contacts for
staff on disaster management. This puts the disaster management, and regularly test
ministry at risk of significant disruption, data disaster recovery procedures to ensure
loss, and ineffective response during actual their effectiveness.
disasters.

10. ELOGREV implementation is funded by both Management should assess the status of
MoFPED and URA TREP, leading to potential revenue systems at LG sites to avoid
budget overestimation and duplication of budget slack and duplication.
payments. Budget projections do not Management should also expedite the
consider sites already covered by other harmonization of revenue management
revenue systems, risking resource wastage. systems in Local Governments to
prevent resource wastage.

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 Conclusion

The Ministry of Local Government (MoLG) made significant progress in automating

revenue management in Local Governments through the implementation of the
ELOGREV application, the initiative reduced manual processes, created efficiencies, and
improved revenue collection in Local Governments. However, the above concerns
require redress by management, especially the costing framework of establishing the
new sites.

4.1.9 The Billing System of National Water and Sewerage Corporation

Introduction

National Water and Sewerage Corporation (NWSC) leverages Management Information

Systems (MIS) to streamline its business operations and enhance decision-making
across key functional areas such as Financial Management, Inventory Management,
Customer Relations, Planned Preventive Maintenance (PPM) of static plant and
equipment, Procurement, and Human Resource Management, among others.

The revenue management ecosystem at NWSC combines both off-the-shelf solutions

and in-house innovations, reducing the cost-of-service delivery. Central to this
ecosystem is the Billing System, which integrates with several other systems to ensure
seamless operation. The key integrations are described below:

a) E-Water System

Acts as an interface connecting the NWSC Billing System with third-party revenue
collectors, including banks, mobile money agents, and telecom operators. This system
facilitates the real-time relay of customer bill payments into the NWSC Billing System.

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b) Customer Relationship Management System

The Customer Relationship Management System (CRM) empowers NWSC staff to log
and manage customer complaints, requests, and inquiries efficiently. The CRM
authenticates users through the Billing System credentials and provides updated
customer balances, contact details, and transaction histories.

c) On-Spot Mobile Application

A handheld device used by field staff for meter reading and on-spot bill generation.
Through an Application Programming Interface (API), it connects to the Billing System
to access and update customer account details, contact information, and balances.

d) SMS System

Handles outgoing notifications to NWSC customers. At the end of each billing cycle, SMS
messages are generated to inform customers of their total billing. The Billing System
updates the delivery status (sent or not sent) for tracking purposes.
e) IScala System

Supports NWSC’s finance and accounting functions. The Billing System sends
transaction summaries (e.g., billing, collections, account details) to IScala, which logs
successful data transfers in a dedicated table.

f) Email System

Used by the Billing System to send email notifications to both internal and external
stakeholders. For example, new connection notifications include the status of the
connection and other relevant updates.

g) EFRIS Integration

The Billing System interfaces with the Uganda Revenue Authority (URA) Electronic Fiscal
Receipting and Invoicing System (EFRIS) through an API. Transaction details for NWSC
invoices and bills are sent to EFRIS, which returns an FDN number that is then updated
in the Billing System database for compliance and tracking.

My review of the information systems at NWSC revealed some positive practices, as

noted below:

i) I noted that the IT Directorate's strategic plan is well-integrated into NWSC's

overall Strategic Direction and Corporate Plan. Furthermore, its implementation
is effectively guided through annual action plans, ensuring alignment with the
corporation's objectives.
ii) The NWSC IT Development team follows established development
methodologies. Additionally, the team has developed and adhered to custom
Software Development Guidelines, ensuring consistency and quality in their
processes.

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iii) The NWSC IT Departments have established performance measurement
frameworks that define target standards and service quality. These frameworks
are effectively utilized to track, monitor, and evaluate departmental
performance, service delivery, and overall quality of services provided.

In spite of the above, I noted some areas that require improvements. I have proposed
recommendations, which management should implement to improve the effectiveness
of the IT usage in the entity, as below;

SN Area of Improvement Recommendation

1. There was no IT Steering Committee which I advised Management to amend policies
may lead to misalignment of the IT to establish an IT Steering Committee
initiatives with strategic objectives. with representation from critical areas of
the corporation.
2. I observed that there were unfilled key IT Mobilize resources to expedite
positions leading to inefficiencies and recruitment as per the restructuring
potential failure to achieve strategic goals. framework, prioritizing critical positions.
3. There was no external independent quality Adopt both internal and external quality
assurance for IT projects. The reliance on assurance mechanisms for all major IT
in-house reviews risks delaying projects and projects.
having unmet system requirements.
4. Internally developed systems such as the I advised Management to establish a
Billing system and E-water were not clear policy for the capitalization and
disclosed as intangible assets even though amortization of internally developed
their value to the organisation is immense. systems.
This may lead to misstatement of the assets’
values in the financial statements.
5. I noted that IT systems were not patented, Develop a comprehensive patent policy
which risks loss of intellectual property and and update HR guidelines to protect
reduced motivation for innovation. intellectual property.
6. The Disaster Recovery and Business Finalize and implement unified BCPs,
Continuity Plans (BCP) were inadequate. I ensuring rigorous testing, training, and
noted the lack of a corporation-wide and stakeholder communication.
approved IT BCP which risks uncoordinated
recovery efforts.
7. Incomplete Backup of Critical Data: Backups Regularly review, update, and test
were outdated during a ransomware attack, backup policies to ensure data integrity
leading to data loss and manual restoration. and preparedness for future incidents.
8. Gaps in Post-Incident Procedures: Limited Enhance incident response protocols,
vigilance and failure to notify regulators risk ensure timely regulatory notifications,
repeated vulnerabilities and non-compliance. and conduct forensic reviews post-
incident.
9. Whereas requests for water connections are I advised Management to institute
supposed to be handled on a first come first measure to review all outstanding
serve basis and clients can expect a applications and take appropriate action
connection between 4 to 8 weeks, there
were delays in making the connections.
10. There was persistent reliance on estimation I advised Management to continue
of water meter readings instead of procuring and replacing faulty or
undertaking field meter readings, which defective meters promptly to maintain
leads to charging more or less than what the accurate billing.
customers consumed.

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 Conclusion/Recommendation

The Management of NWSC has made progress in integrating IT governance and

operations into the Corporation’s strategic direction. Notable efforts include the adoption
of internal quality assurance practices, the implementation of backup methodologies,
and the use of structured software development methodologies. These initiatives have
contributed to improving service delivery, aligning IT strategies with corporate goals,
and enhancing cybersecurity measures.

However, to fully capitalize on the potential of these advancements, several areas

require immediate attention, particularly the establishment of an IT Steering Committee,
addressing staffing gaps, and enhancing incident response and disaster recovery plans.
Strengthening these areas will ensure the sustainability of IT operations and further
protect NWSC's information assets, enabling the Corporation to meet its strategic
objectives effectively.

4.1.10 The Electronic Government Procurement System

Introduction

The Government of Uganda with support from the World Bank and other Development
Partners through PPDA, NITA-U and MoFPED initiated the Electronic Government
Procurement system (e-GP) in 2014 under the Regional Communication Infrastructure
Program (RICP). The aim of the system was to improve efficiency, transparency,
integrity and accountability in public procurement and disposal processes.

As a result of implementation challenges encountered by the contracted developer and

inspiration from other countries, the Government of Uganda requested the Ministry of
ICT and National Guidance to explore possibilities of locally developing the system
through the National ICT Initiatives Support Program (NIISP).

Eventually, M/S Honeycomb Technologies Ltd was contracted in 2020 and by the time
of the audit, the system had so far been fully developed and deployed across 36 entities
out of the envisaged 335 entities.

I undertook an audit of e-GP system and related system interfaces covering the period
since its inception.

Below is a summary of areas that require improvement. I have proposed

recommendations, that Management should implement to improve the viability of and
effectiveness of the implementation of the e-GP System, as indicated in the table below;

SN Key Finding Recommendation

1 Lack of a Comprehensive Business Case I advised Management to develop
Without a comprehensive business case, the and implement a comprehensive
Ministry risks poor decision-making, inefficient business case in future projects of
use of resources, and potential scope creep, like nature.
leading to increased costs and delays.

270
SN Key Finding Recommendation

2 Lack of a Business Impact Assessment I advised the e-GP Project Manager

Under the circumstances, the project faces to ensure that the project
substantial risks, arising from poor planning, implementation is anchored on a
operational disruptions, and unexpected costs. viable business impact analysis to
guarantee viability.

3 Non-compliance with the NIISP Guidelines I advised Management to always

Non-compliance with the National ICT Initiatives follow due approved procurement
Support Program (NIISP) guidelines exposed the process, laws and regulations in
Government to the risk of awarding a contract place.
for the development of the System, to a firm that
did not have experience in the same. Project
delays and persistent System failures are likely.

4 Unclear Ownership of the e-GP System I advised Management to heighten

Failure by the developer/vendor to hand over the efforts to ensure the handover of
System code creates limited access and the source code and prerequisites
significant control and operational issues, and and takeover of full control of the e-
the vendor’s continued backend access of the GP System.
System makes the matter even worse.

5 Failure to develop user manuals, guidelines I advised Management to engage

and other System documentation the Vendor to develop user manuals
The absence of well well-documented and for all user categories since it was
approved e-GP System user manual and part of the contract deliverables
guidelines undermines knowledge transfer and before the System handover.
promotes reliance on the vendor.

6 Failure to integrate with other Government I advised Management to follow up

Systems with the vendor to ensure that all
The vendor was paid UGX.385Mn for Systems the pending interfaces are
integration but did not complete the deliverable. implemented as per the contract.
The failure by the vendor hinders the
government from benefiting from the envisaged
benefits of the integration including seamless
information sharing among others.

7 Non-compliance with the Standard Bidding I advised Management to always

financial proposal format ensure that while undertaking
There was non-compliance with the standard procurements, the PPDA laws and
pricing schedule provided by the PPDA. I was not Regulations are strictly adhered to.
able to confirm how the amounts charged for The contract should be reviewed in
each item had been arrived at. this regard.

8 Irregular charging of Value Added Tax; I advised Management to ensure

UGX.1.057 Bn that VAT is not charged by vendors
The charging and payment of VAT was irregular. in future projects (home grown
The contract was overpriced and the VAT paid Systems development and
caused financial loss to Government. maintenance) of this nature. The
amount paid should be recovered

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SN Key Finding Recommendation
9 Delayed implementation and roll-out of the I advised Management to set
e-GP System realistic and achievable targets.
Delays in System roll out could lead to There is need to expedite the roll
technology obsolescence since the technology out.
used to develop the System could be out of life
before deployment, escalating operational costs.

10 Failure to operationalise the Report and I advised Management to ensure the

Disposal module vendor develops and deploys the
disposal module to ensure
a) Non-functional Disposal Module transparency in the procurement
I noted that of the 2 proposed modules, all process.
entities enrolled on the e-GP System were
using only the procurement module. The
supplier and oversight portals could not use or
view the contents of the disposal function.

b) Failure by the System to generate

Procurement Reports
A review of the reporting functionality under
the oversight module indicated that the
interface was not functional as it returned an
error upon selection.

11 Insufficient Internal and External Audit I advised Management to review the

Review Functionality existing oversight portal and make it
In the absence of a functional oversight portal, it functional.
becomes difficult for external oversight parties to
provide assurance the procurement processes in
the different entities across the Government.

12 Procurements processed outside the E-GP I advised Management to enforce

System the use of the e-GP System by
Failure to utilize the e-GP System undermines the ensuring that all the procurements
government’s investments in ICT Systems. undertaken in the rolled-out entities
are affected by the procurement
System.

13 Discrepancy between Rejected I advised Management to

Procurement Plans on e-GP and Payments expeditiously and wholly integrate
processed on the IFMS the e-GP and IFMS Systems to
This may lead to intentional bypass of the E-GP minimize human intervention as
System controls by the entity. much as possible.

14 Workflow discrepancies or procedural I advised Management to ensure full

bypass on the e-GP System oversight compliance with the e-GP workflows
This poses a risk of non-compliance with across all entities.
procurement laws, reduced accountability, and
operational inefficiencies.

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 Conclusion

I commend the Government's unwavering commitment to enhancing fairness,

transparency, and accountability in public procurement by automating key processes
and implementing the e-GP System across various MDAs.

Recognizing the vital role procurement plays in government service delivery and the
broader goal of streamlining the procurement process, it is imperative to address the
identified gaps promptly and thoroughly. This will ensure the confidentiality, availability,
and integrity of the e-GP system are upheld.

4.2 Forensic Audits

I am mandated under Article 163(3) of the Constitution of the Republic of Uganda, 1995
and Section 21 of the National Audit Act Cap 170, to undertake Forensic Audits. During
the audit year, I undertook eight (8) Forensic Investigations which were all concluded,
and the reports submitted to the requesters, as shown in the table below;

Table 74: Forensic Investigations conducted by OAG

SN Subject of Investigation Requester of Entity Under
Investigation Investigation
1 Forensic investigation report on transfer of Criminal Kaliro District Local
funds from Kaliro District Local Government Investigations Government
accounts to Kaliro District Civil Servant Directorate
SACCO’S Account No.9030006818411

2 Forensic investigation report on the alleged Criminal Kitagwenda District

corruption and embezzlement of funds in Investigations Local Government
Kitagwenda District Local Government in Directorate
Financial Year 2020/2021

3 Special audit report on the management of Criminal Jinja City

UPE Capitation Grant in Jinja City for the Investigations
Period 2019 To September 2022 Directorate

4 Forensic Investigation Audit Report on the Inspectorate of Uganda National

Training Costs for the Initial Cabin Crew Government Airline Company
Trainings made by Uganda National Airline Ltd
Company Limited (UNACL)

5 Forensic Audit on the Supply, delivery and Inspector General Uganda

Installation of two passenger lifts and of Government Communications
property management at Communications Commission
House

6 Forensic Investigation Report into the Criminal Nsambya

Alleged Embezzlement of Funds by the Investigations Carpentry, Joinery,
Directors of Nsambya Carpentry, Joinery, Directorate Craft and Training
Craft and Training Agency Agency

7 Investigation Report on Select Pension and Inspector General Ministry of Water

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 Gratuity Payments at Ministry of Water and of Government and Environment
Environment in Financial Years 2019/20 To
2022/23

8 Forensic Investigation Report into Criminal Buyaka Growers

Allegations of Corruption in War Loss Investigations Cooperative
Compensation to Buyaka Growers Directorate Society Ltd
Cooperative Society Ltd under Ministry of
Trade, Industry and Cooperatives during
Financial Years 2020/2021, 2021/2022, And
2022/2023

4.3 Special Audits

I am mandated under Article 163(3) of the Constitution of the Republic of Uganda, 1995
and Section 21 of the National Audit Act Cap 170, to undertake Special Audits. During
the audit year, I also undertook other special audits, which were all concluded and the
summaries are available in the Auditor General’s Report for each of the individual
entities. Below is a summary of the executed Special Audits;

Table 75: Special Audits conducted

SN Title of Special Audit Requester Of Entity Under
Special Audit Investigation
1 Special audit on allocation and utilization of Rt. Hon. 1st Deputy Office of the
funds warranted to MEACA for deputy Prime Prime Minister Prime Minister
Minister.

2 Special audit in NEC – verification of 94 former Permanent National

staff (Ref. PSST). Secretary/ Enterprise
Secretary to the Corporation
Treasury
3 Special Audit Report on the Verification of Permanent Mbale Municipal
terminal benefits and pension of 46 Former Secretary/ Council
Employees of Mbale Municipal Council in Secretary to the
Respect of HCCS No.12 Of 2007 Masette & Treasury
Others Vs Mbale Municipal Council of the High
Court of Uganda

4 Special Audit Report on Alleged Deputy Director Entebbe

Mismanagement of maintenance funds Economic Fraud Municipal Council
released by Uganda Road Fund to Entebbe and Anti-
Municipal Council for financial years 2020/21 Corruption,
and 2021/22 Directorate of
Criminal
Investigations.

5 Special Audit Report on the Management of Rt. Hon. Speaker of Uganda Civil
the Entebbe Airport Car Parking Management Parliament Aviation Authority

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 SN Title of Special Audit Requester Of Entity Under
Special Audit Investigation
System in Uganda Civil Aviation Authority
(UCAA)

6 Verification of the Contract Management Commissioner Uganda Revenue

Team's (CMT) responses to the Auditor General of Uganda Authority
General's review report on the Construction of Revenue Authority
the Uganda Revenue Authority Headquarters
Building Project

7 Report on Business Valuation of Soroti Fruits Rt. Hon. Prime Soroti Fruit Ltd
Ltd for period 31st December 2023 Minister

8 Report on the Verification of the Government Permanent Tropical Bank Ltd

of Uganda’s Share Holding in Tropical Bank Secretary/
Limited Secretary to the
Treasury
9 Special Audit Report on the Implementation of Permanent Ministry of
the Mtv Africa Music Awards (Mama) by the Secretary, Ministry Tourism, Wildlife
Ministry of Tourism, Wildlife and Antiquities in of Tourism, Wildlife and Antiquities
The Financial Year 2020/21 And 2021/22 and Antiquities

10 Special Audit Report on the Verification of the Attorney General M/S Krone
Compensation Claim By M/S Krone (U) Ltd Uganda Limited

In addition, I undertook a Special audit on Management of Pension and Gratuity

across all Government Agencies. The request was made by the Minister of Finance,
Planning and Economic Development. Along with the consolidated report, individual
audits reports have been issued on a total of 207 entities.

The findings from the Special audit have also been included in the statutory audits of
the individual entities for the financial year ended 30th June 2024 that I have submitted
to Parliament.

4.3.1 Other Special audits on Valuations and Verifications

I conducted four (4) other special audits on valuation and verification of claims and
below is the status;

Table 76: Special audits on Valuations and Verifications

SN Requester Basis of valuation/ verification Audit Status
1 Parliament of Special audit report on the Parliamentary Adhoc Report Issued
Uganda Committee findings regarding Bujagali Energy
Limited

2 PS - Ministry of Special Audit Report on the status of Pader-Abim Report Issued

Energy and Community Multi-Purpose Electric Co-Operative
Mineral Society Limited’s (PACMECS) Leased Assets and
Development Operations before Handover To UEDCL

275
3 PS - Ministry of Audit report on the electricity power lines and Report Issued
Energy and connections claims by service providers against
Mineral the defunct Rural Electrification Agency
Development

4 PS- Ministry of Special audit for the End of the Lease and On-going
Energy and Assignment Agreement between UMEME Limited
Mineral and Uganda Electricity Distribution Company
Development Limited

276
PART V: HIGHLIGHTS FROM LOCAL GOVERNMENT AUDITS

5.1 Focus Areas

5.1.1 Management of Health Centre IVs in Local Governments

Health Centre IV is a facility established at a county level to provide health services to a

population of approximately 100,000 people by providing emergency surgery and blood
transfusion services and the services offered at HC IIIs.

According to the Health Sub Programme Grant, Budget, and Implementation Guidelines
for Local Governments for FY 2023/24, the Public Service Standing Orders and the
Health Sector Service standards & Service delivery standards, 2016, LGs are required to
ensure that Health Facilities are adequately funded, staffed, have appropriate
infrastructure and facilities, and are adequately managed to provide primary health care.

I undertook an audit in a sample of 107 HCIVs in 104 HLGs during the FY 2023/24,
which received UGX.45.321Bn as conditional PHC grants to implement planned activities
for the provision of primary health care.

The following were my observations;

a) Funding and utilisation

 The Higher Local Governments (HLGs) audited allocated UGX.4.056Bn (10%) of

the PHC (Non-Wage Recurrent) subgrant to the District Health Office instead of
15%. In addition, 29 HLGs over allocated PHC subgrant to Health Facilities by
UGX.1.274Bn whereas 21 HLGs under allocated by UGX.0.804Bn.

 The HLGs audited allocated UGX.0.702Bn (5.2%) of the RBF subgrant to the
District Health Office instead of a maximum of 5%. In addition, 19 HLGs over
allocated RBF subgrant to Health Facilities by UGX.0.086Bn whereas 29 HLGs
under allocated by UGX.0.174Bn.

 1 HCIV in 1 HLG did not prepare annual work plans and budgets for the FY
2023/24 while 6 HCIVs in 6 HLGs prepared their work plans and budgets, which
were not wholly incorporated into the HLG's work plans and budgets.

 UGX.0.063Bn in 3 HCIVs in 3 HLGs was spent on ineligible activities while

UGX.0.153Bn was not accounted for.

 15 HLGs remitted UGX.2.473Bn to 41 Private Not For Profit (PNFP) health

centres without signing a memorandum of understanding. I further noted that 2
funded PNFPs in 2 HLGs were not included in the list of the would-be-funded
health facilities issued by MoH.

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b) Administration of HCIVs

 I noted that 13 health facilities in 4 HLGs that received PHC amounting to

UGX.0.302Bn were not included on the National Health Facility Master List. A
total of 66 staff paid wage of UGX.0.867Bn had been deployed in these non-
accredited health facilities.

 I noted that 93 HCIVs in 93 HLGs had not implemented the new structure as
approved by MoPS. Out of the approved old structure of 7,966 positions in 93
HCIVs in 93 HLGs, only 3,796 (47.7%) positions were filled leaving a gap of
4,170 (52.3%).

 7 HCIVs in did not have a record of the daily staff attendance. I further noted
that 204 staff in 16 HCIVs were absent from duty for an average of 88 days in
the year under review. These staff were paid UGX.0.610Bn for the period they
were absent.

 59 staff in 17 HCIVs who were on long-term study leave earning a salary of

UGX.1.499Bn per annum had not been bonded by the facilities/HLGs.

 I noted that 4 HCIVs in 4 HLGs either had expired or lacked health unit
management committees.

c) Health infrastructure and medical equipment

 I noted that out of the 355 counties in the country, only 211 (59%) had
established HCIVs leaving 144 counties without HCIVs.

 50 HCIVs in 50 HLGs did not have land titles for 275 acres of land on which
health infrastructure such as OPD, theatre, Male ward among others were
installed.

 81 HCIVs in 81 HLGs lacked 2,037 key medical equipment such as X-Ray

machine, Oxygen plant, Autoclave, blood bank, Operating theatre among others
that are required as a minimum to offer health services. I further noted that 54
HCIVs in 54 HLGs had not repaired 382 equipment that are key in the provision
of health services. This was attributed to underfunding, for instance;
UGX.0.131Bn was budgeted for maintenance and repairs but only UGX.0.058Bn
(4%) was received.

In addition, 62 HCIVs in 62 HLGs had 895 obsolete/non-repairable and hazardous

equipment that was due for disposal but had not been included in the disposal plan.

 I noted that 57 HCIVs in 54 HLGs had no designated person to manage the

storage, distribution, and control of medical equipment. I further noted that 25
HCIVs in 25 HLGs did not have appropriate safety gear for staff working in areas
such as the X-ray room, theatre and laboratory that are prone to safety hazards.

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 The failure to adequately staff, to fund, and equip health facilities leads to a decline in
healthcare quality, increased morbidity and mortality, and exacerbates healthcare
inequality, particularly for vulnerable populations. Overburdened healthcare workers
experience burnout, and emergency services become strained, while economic burdens
rise due to lost productivity and higher long-term healthcare costs.

Recommendation

The MoFPED should prioritize and increase funding for health centres, invest in modern
infrastructure and essential equipment, and address staffing shortages in the health
centres.

5.1.2 Management of Universal Primary Education Capitation Grants

The Government introduced Universal Primary Education (UPE) in 1996 with the primary
goal of providing free primary education to all school going children in the country. As
such, Government sends capitation grant to the beneficiary schools to purchase
scholastic materials handle emergency expenditures, facilitate co-curricular activities,
administration and school management.

I conducted an audit into the management of UPE capitation primary schools to assess
the extent of disbursement of the budgeted funds, adequacy and utilization of UPE
Capitation grants and its contribution to provision of quality education in Uganda. Below
are my key findings and recommendations.

a) Adequacy of Planning, Budgeting and Release of Capitation Grant

Planning and budgeting of UPE capitation grant is guided by UPE Implementation

Guidelines for Local Governments. Allocation of capitation budget for schools depends
on the verified enrolment figures. The rate per learner of UGX.20,000 and a fixed
amount of UGX.1,350,000 per school per year are used by both Ministry of Education
(MoE) and MoFPED to budget for the grant.

I noted the following;

 A review of the enrolment numbers in the Education Management Information

Systems (EMIS) and actual enrolment as per school records in the 1,111
sampled schools in 95 LGs revealed inconsistencies in enrolment figures whereby
85,785 pupils were on the head teachers’ enrolment but not on EMIS while,
73,971 pupils were on the EMIS enrolment but not on head teachers’ enrolment.

 I carried out a pupils’ head count during a physical inspection of 684 sampled
primary schools in 66 LGs and noted inconsistencies between enrolment figures
ascertained during my head count and those on EMIS and the head teachers’
records as summarized in the table below;

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Table 77: Inconsistencies in UPE enrolment figures
Number of Audit Head count Enrolment by Head teacher EMIS Enrolment as
Primary School between October as at End of term 1 2024 at May 2024
to November
684 664,103 681,464 811,993

 Based on EMIS enrolment of 5,944,226 pupils in 8,492 funded primary schools in

114 LGs and the IPF enrolment used by MoFPED to release funds, my re-
computations revealed that the expected UPE Capitation Grant was UGX.
131,866,919,933 out of which only UGX.125,115,445,928 was received leading
to an under receipt of UGX.7,018,433,477 in 91 schools and over receipt of
UGX.1,019,618,735 in 19 schools.

 I noted from inspected 2,762 schools in 36 LGs that the Special Needs Education
(SNE) grant was not released in those schools despite the requirements in the
guidelines which stated that schools with SNE learners should receive a variable
grant of UGX.22,000 per SNE learner.

 I noted that the rates that were being used in the budgeting and release of
capitation grant were revised as per the table below;

Table 78: UPE Capitation Grants unit costs

Particulars 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
(UGX) (UGX) (UGX) (UGX) (UGX)

Fixed grant per 1,350,000 1,350,000 1,350,000 1,350,000 1,350,000

school
Variable grant 12,000 17,000 17,000 20,000 20,000
per learner

A consideration of the time-value of money for the FY 2023/2024 in regard to the grant
rates per child based on the 2022/23 rate revealed that the appropriate fixed grant per
school for FY 2023/2024 was UGX.1,433,700 instead of UGX.1,350,000 and the variable
grant per learner was UGX.21,240 instead of UGX.20,000 as shown in the table below;

SN Particulars Present Annual Future value for 1 year Variance

value Interest ((FV) = PV × (1 + (i) ^t))
(2023/20 rate Where FV-Future value,
24) (2023/202 PV-Present value, i-
4) Interest rate & t-time
(A) (B) (A-B)
1 UPE Capitation 1,350,000 6.2% 1,350,000*(1+(6.2%)^(1)) 83,700
Fixed grant per = 1,433,700
school
2 UPE Capitation 20,000 6.2% 20,000*(1+(6.2%)^(1)) = 1,240
Variable grant 21,240
per learner

Inconsistencies affect planning and budgeting for capitation grants which eventually
affect service delivery whereas the inadequate funding per pupil affects the schools’
ability to manage their operational costs.

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The Accounting Officers attributed the inconsistencies in the enrolments to; Network
and system challenges that delay update on the system, duplicate entries that distort
the integrity of the data on EMIS, Lack of tool like smart phones, computers to facilitate
the input and update of data on the EMIS, capacity gaps among the head teachers of
primary schools who are responsible for updating information in the EMIS system and
Frequent movements in pupils’ numbers that are not updated on EMIS.

Recommendations

The Accounting Officer of MoES should;

 Identify solutions for the system bottlenecks and increase monitoring and
supervision to ensure that the EMIS is promptly updated.
 Engage MoFPED and Parliament to increase the unit provisions for capitation
grant.

b) Inadequate Number of Teachers at Primary Schools

Manpower planning and recruitment of teachers in primary schools is guided by the

Planning, Budgeting and Implementation Guidelines for Local Governments for the
Education and Sports Sector 2021. Furthermore, the basic minimum standards for
schools by the Ministry of Education and Sports require a Teacher to Pupil ratio of 1
teacher to 53 pupils.

I noted the following;

 A review of 136 LGs indicated that out of 111,101 primary school teachers on
the approved structure, 85,073 (77%) teachers were in post leading to a staffing
gap of 26,028 (23%) teachers.
 In a sample of 717 schools in 91 LGs, I compared the MoES Standard of teacher
to pupil ratio of 1:53 and established that the average ratio in the inspected
schools was 1:75 which was below the standard and implies that the teacher
pupil interaction was not conducive for effective learning.

The failure to have adequate staffing affects the effective delivery of education services
to pupils.

The Accounting Officers attributed this to inadequate wage and the ban on recruitment
of teachers.

Recommendation

The Accounting Officers of LGs should engage MoPS for clearance to recruit staff and
MoFPED for allocation of funds.

c) Other Education Service Delivery Standards

I review other education service delivery standards as indicated in the table below;

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 SN No. of No. of LGs Category Actual Recommended Ratio
Schools Ratio
1. 811 103 Classroom to Pupil 1:101 1 classroom for every
53 learners
2. 741 92 Pit Latrine to Pupil 1: 80 1 Pit Latrine for every
40 learners

I noted the following;

 In a sample of 811 schools in 103 LGs, I compared the MoES Standard of

Classroom to Pupil ratio of 1:53 and established that the average ratio in the
inspected schools was 1:101 which was below the standard and implies that the
classroom environment was not conducive for effective learning.
 In a sample of 741 schools in 92 LGs, I compared the MoES Standard of Pit
Latrine to Pupil ratio of 1:40 and established that the average ratio in the
inspected schools was 1:80 which was below the standard. This affects hygiene
and sanitation in schools.

The Accounting Officers attributed this to inadequate funding.

Recommendation

I advised the Accounting Officers to engage MoES, MoFPED and development partners
to provide additional funding to improve infrastructure in primary schools.

d) Physical Inspection of UPE School Structures

During physical inspection of the school structures between October and November
2024, I observed the following;

 Pit latrines in various schools in 45 LGs had been condemned and were not in
use thus affecting accessibility by the pupils and teachers.
 Classrooms in various schools in 54 LGs had old and dilapidated structures.

The Accounting Officers attributed this to inadequate funding

Recommendation

The Accounting Officers should engage MoES, MoFPED and development partners to
provide additional funding to improve infrastructure in primary schools.

5.1.3 Implementation of Road Maintenance Grant

In a bid to reduce the Roads rehabilitation backlog, Government decided in February

2023 to allocate a Road Rehabilitation Development Grant of One (1) Billion shillings to
each of the 176 Local Government (LGs) comprising of 135 Districts, 10 Cities and 31
Municipal Councils in the FY 2023/24.

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The Ministry of Works and Transport (MoWT) issued the “Works and Transport
Rehabilitation Grant Implementation Guidelines for FY 2023/24” in May 2023.
Furthermore, on 27th July 2023, Parliament passed a resolution to guide the
implementation of the Grant.

During the period under review, 176 LGs received a sum of UGX.176Bn in the financial
year.

I designed audit procedures to assess whether the utilization of the Road Maintenance
Grant was undertaken in accordance with the parliamentary resolution and the Road
Rehabilitation guidelines issued by MoWT.

The following were my observations;

a) Planning

I noted the implementation of the Grant was affected by conflicting guidelines issued by
the Ministry of Works and the Resolution of Parliament.

 In May 2023, the Ministry guided that 85% of the Grant should be allocated for
rehabilitation works and 15% for other operational expenses, which the LGs and
Ministry of Finance, Planning and Economic Development (MoFPED) had
considered during planning and budgeting.
 On 27th July 2023, Parliament resolved that 95% of the Grant funds should be
used for maintenance works and operational expenses of the grant should not
exceed 5%(UGX.50M), and strictly used for repair and maintenance of road
equipment.

I further noted that there were notable delays in submission of the Grant work plans to
URF/MoWT by 81 LGs ranging from 3 days to one-year.

I also noted work plans for 6 LGs were not approved by the respective DRCs. However,
my interactions with the Accounting Officers of the Cities and Municipalities revealed
that they did not have independent Road Committees due to lack of clarity in the law
and guidelines. Details are shown on the table below:

SN Nature Vote Code Entity Name

1 DLG 831 Dokolo District Local Government
2 DLG 857 Katakwi District Local Government
3 DLG 909 Ngora District Local Government
4 MC 717 Kumi Municipal Council
5 DLG 891 Mbale District Local Government
6 City 609 Mbarara City

The Accounting Officers explained that the notable delays in submission of the Grant
work plans to URF/MoWT were occasioned by;

 The conflicting guidelines.

 Delayed approval of work plans by the DRCs.

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Recommendations

The MoWT should;

 Ensure harmonization of the implementation guidelines with the Resolution of

Parliament for effective implementation of the Grant.
 Ensure timely issuance of implementation guidelines.

b) Utilization of the Road Maintenance Grant

I reviewed the budget performance of 140(80%) out of 176 LGs and noted that that out
of the approved budget of UGX.140Bn, UGX.139.968Bn was received. Analysis of the
expenditure of the LGs revealed that out of UGX.139.968Bn received, UGX.139.178Bn
(99%) was utilized by the end of the year, resulting in an under absorption of
UGX.0.789Bn (1%).

I noted that UGX.88Bn meant for Q3 and Q4 was released in May 2024 which led to
delayed implementation of the road activities within the financial year. This affected the
maintenance of the planned roads.

The Accounting Officers explained that this was mainly due to;

 The late release of the funds (in Quarter 4).

 Lack/ Inadequate Road equipment to implement works.
 Presence of heavy rains and the guidance of the MoWT to halt works during
heavy rains.

Recommendations

MoLG should;

 Re-equip districts with road units and plan to establish road units in the LGs
without road units.
 Capitalize the regional mechanical workshops and create more sub mechanical
workshops to effectively serve.
 Ensure timely release of the Grant funds.

c) Inspection of service delivery under the Road Maintenance Grant

I carried out physical inspections between October and December 2024 on a sample of
425 implemented road projects in the 140 LGs in the FY 2023/24. I further made an
analysis of 303 road projects implemented in 75 LGs and observed the following;

 Out of the sample of 303 roads worth UGX.35.820Bn inspected ,159 had
anomalies for instance; uninstalled culverts, unconstructed headwalls, silted
culverts, bushes on roadsides, among others.
 Out of the sampled 303 projects, 165 were Completed roads and 138 were
Incomplete works/ Ongoing road works.

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  In 3 LGs that is Kyenjojo, Bundibugyo and Mitooma DLGs, works worth
UGX.0.873Bn were executed outside the work plans.

The Accounting Officers attributed this to;

 Delayed release of funds from MoFPED

 Lack of road equipment
 Frequent breakdown of road equipment

Recommendations

The Accounting Officers should;

 Liaise with MoFPED to ensure timely release of funds.

 Liaise with the MoWT, URF and Parliament to provide for monitoring and
supervision under the grant.
 Recruit competent technical staff to undertake the works under the Grant.

5.1.4 District Water Supply and Sanitation Conditional Grant

The District Water Supply and Sanitation Conditional Grant (DWSSCG) is a government
program intended to realize Sustainable Development Goal (SDG) No.6, which is the
attainment of universal and equitable access to safe and affordable drinking water by
2030.

I sampled 104 districts out of 135 districts that received UGX.74.344Bn during the
financial year. The aim of the grant is to develop, rehabilitate and carry out major
repairs of rural water infrastructure to enable access to clean and safe water. The grant
also aims at funding the operation and maintenance of piped water systems in small
towns within a district.

I designed audit procedures to assess whether the utilization of the District Water
Supply and Sanitation Conditional Grant was implemented in accordance with the Grant
Guidelines and the effectiveness of implemented water infrastructure in improving
sustainable access to safe water by rural communities in Uganda.

The following were my observations;

a) Planning, Budgeting and Utilization of the Water Grant Funds

The planning, budgeting and utilization of the Water Grant funds are guided by the
District Rural Water Supply and Sanitation Conditional Grant Budget and Implementation
Guidelines for Local Governments, 2022.

I reviewed the planning, budgeting and utilization processes of the Grant in 104 districts
with a total budget of UGX.74.622Bn and noted the following;

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 In seven (7) districts, thirty-six (36) projects with a budget of UGX.2.187Bn were
not in the approved five-year Development Plans of the districts.
 In thirty-nine (39) districts, the planning process did not cater for seventy (70)
on-going UGIFT projects (seed schools and health centre upgrades).
 A total of 104 DLGs received UGX.74.344Bn out of UGX.74.622Bn budgeted
(99.6%) for the financial year 2023/24. Out of the funds received, the districts
spent UGX.72.789Bn (98%) leading to un-utilized funds of UGX.1.555Bn.

Failure to budget according to the prescribed allocation thresholds leads to wasteful

expenditure on non-priority activities which hinders achievement of intended grant
objectives.

The Accounting Officers explained that;

 Some areas lacked existing water sources.

 The water projects could not be planned due to insufficient funds allocation.
 Water sources will be provided after completion of the various constructions.
 The districts did not plan for the water sources on the assumption that the
UGIFT projects were fully funded with water sources
 There were previous futile drilling efforts due to very low water table.
 The funds that remained unutilized related to retention monies.

Recommendation

The Accounting Officers should ensure that the five-year district Development Plans
incorporate all projects envisaged in the respective districts.

b) Review of the Implementation of the Projects

I carried out physical inspections between September and November 2024 of 449 newly
constructed water facilities in fifty-three (53) districts and noted that 424
projects/facilities were functional, 11 projects were partially functional while 14
projects/facilities were not functional.

Relatedly, an analysis of the information extracted from the water management

information system of sixty-eight (68) districts revealed that 5,462 water facilities were
not functional while 4,975 were recommended for decommissioning.

Furthermore, I noted that 890 villages in twenty-seven (27) districts had non-functional/
decommissioned facilities and lacked alternative sources of water.

The Accounting Officers explained that;

 Some of the water sources were in the former IDP camps where improved piped
water supply was provided.
 Inadequate funding was the limiting factor for the supply of water to all villages.
 Rehabilitation and repair of some non-functional boreholes was prioritized in the
subsequent financial year.

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  The non-functional (not in use) water facilities were due to poor identification of
sites with less population.
 Some sites were in the cattle corridor/water stressed zones with challenges in
drilling water and were prone to contamination.
 The MIS system was not fully updated to show the correct functionality status.
 There was a policy shift that phased out the shallow well water sources which
were still on the water MIS system.

Recommendations

The Accounting Officers should;

 Engage MoWE to ensure update of the MIS system that reflects the actual water
sources in the district.
 Engage Government through MoWE for improved budget allocation.
 Ensure that preliminary feasibility studies are comprehensive to detect and
prevent early water source failures.

c) Minimum Quality Standards

Testing of the minimum quality standards is guided by the District Rural Water Supply
and Sanitation Conditional Grant Budget and Implementation Guidelines for Local
Governments, 2022. The Guidelines require the testing of all new water sources and
20% of the existing water sources annually.

I noted that;

 Thirty-four (34) districts lacked water quality testing kits.

 Only 2,757 (6%) out of 44,265 of the existing water sources in 44 districts were
tested while only 573 out of the 645 (89%) new water sources were tested.

Failure to fully comply with the testing requirements derails the overall objective of
ensuring access to safe and clean water for all. The water sources found to be
unsuitable for human consumption pose a direct health risk to the local population.

The Accounting Officers explained that;

 Due to low funding, water quality monitoring is done on water points which are
prone to contamination
 Testing less than 20% of the existing water sources was due to delayed
submission of the guidelines to the districts.
 The districts rely mainly on the low local revenue for testing existing facilities.

Recommendations

 MoWE should consider setting up regional water testing laboratories.

 Government through MoWE should encourage partnerships with educational
institutions/Universities and other sector players such as National Water and
Sewerage Corporation (NWSC) in undertaking water test activities.

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  The Accounting Officers should ensure that the district water departments and
district health departments work on preventive strategies to avoid continued
water contamination through human behaviour.
 Government should prioritize testing of existing water sources in the districts by
providing adequate funding to augment the local revenue sources.

5.1.5 Implementation of Uganda Support to Municipal Infrastructure Development,

Additional Financing Program

The Government through the Ministry of Lands, Housing and Urban Development
(MoLHUD) received additional financing from the World Bank/IDA to implement the
second phase of the Program (USMID Additional Financing-USMID-AF) for 5 years
starting 2018/19 to 2022/2023 and was extended for 12 Months to 30th June 2024 to
ensure completion of program projects.

The project supports 33 LGs of which 22 MCs/Cities and 11 Refugee hosting districts in
the following areas;

 To leverage institutional strengthening at the municipal LGs.

 To improve municipal urban infrastructure.
 Support to selected district LGs hosting refugees to improve planning, land
tenure security, and small-scale infrastructure investments.

Out of 33 LGs, I assessed performance in 24 LGs (72%) which received

UGX.1,219.676Bn (99%) out of UGX.1,232.554 Bn budgeted to implement the following
key activities over the five-year period;

 Constructions of civil works for selected infrastructure sub projects such as

roads, markets, mayors’ gardens, bridges, playgrounds.
 Renovation of selected infrastructure.
 Supply and installation of streetlights.

I designed audit procedures to assess whether the utilization of Uganda Support to

Municipal Infrastructure Development, Additional Financing (USMID-AF) Program was
done in accordance with the grant guidelines.

The following were my observations;

a) Planning, Funding and Absorption of USMID-AF Program

Uganda's legal framework supports participatory planning in local governments, with

MoLHUD assisting LGs in preparing infrastructure inventories to guide project
prioritization. Under USMID-AF, LGs will select impactful sub-projects annually, ensuring
alignment with development plans and approval by councils.

I reviewed the budget performance of LGs and noted the following;

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 Out of the availed amount of UGX.1219.676 Bn for USMID-AF activities, in 24
implementing LGs, UGX.755.904 Bn was spent by the entities during the period
under review leading to an under absorption of UGX.463.772Bn.

The Accounting Officers attributed the under absorption to;

 Slow implementation of works by contractors.

 Delays in the procurement processes that affected commencement of projects.
 Delayed release of Q4 funds by MoFPED.

Recommendations

The Accounting Officers should;

 Strengthen contract management processes.

 Streamline procurement processes to shorten the procurement process.
 Engage MoFPED to ensure timely release of project funds.

b) Implementation of program projects

I reviewed the implementation of program projects over the project period from
2018/2019 to 2023/2024 and noted that 12 LGs planned to implement 119 of projects
in the period. Of the planned projects, 59 (50%) with a total contract sum of
UGX.148.751Bn had been completed, 28 (23%) with a total contract sum of
UGX.23.636Bn projects had not been commenced while 32 (27%) with a total contract
sum of UGX.367.559Bn had been partially implemented.

In the financial year 2023/24 Program participating LGs spent UGX.321.554Bn on 42

ongoing projects and new projects. Through inspection of these projects, I noted the
following;

 28 (67%) out of 42 projects had poor workmanship such as cracks on

implemented structures, open culverts and manholes, poor external finishes.
 14 (33%) out of 42 projects were incomplete.

The Accounting Officers attributed this to slow progress of works by contractors, delay
in award of contracts and delayed in release of funds to contractors.

Recommendations

The Accounting Officers should;

 Implement stricter monitoring and evaluation mechanisms to ensure contractors

adhere to agreed timelines and milestones.
 Expedite procurement procedures to minimize delays in awarding contracts.
 Liaise with the Ministry of Finance to ensure timely release of funds to
contractors.

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 c) Sustainability of USMID-AF Program projects

The Program Operational Manual assigns MoLHUD, through the Project Support Team
(PST), the responsibility for program coordination and implementation, the Program will
provide resources for the preparation of follow-on program/ interventions that will
ensure sustainability of program to sustain results as USMID-AF program concludes.

An assessment of the sustainability of the USMID-AF program projects noted the

following:

 82 out of the 84 projects implemented in the 19 LGs did not have sustainability
plans.
 I noted that 14 LGs did not allocate any resources availed towards ensuring
program sustainability.
 5 sub-projects completed in the 4 LGs had defects such as clogged drainages,
non-functional solar lights, Paspalum alongside road not well maintained and
damaged road furniture.

The Accounting Officers attributed it to the limited resources at the LGs level making it
difficult to manage the costly maintenance of infrastructure.

Recommendations

The Accounting Officers should;

 Mainstream the LG budget to incorporate sustainability activities as guided by

Program.
 Develop and implement comprehensive sustainability plans for all completed
projects to ensure the long-term functionality of infrastructure.

5.1.6 Audit of Uganda Intergovernmental Fiscal Transfers 2023/2024

The Government of Uganda (GoU) established the Intergovernmental Fiscal Transfers

Reform Program (IGFTRP) to address challenges faced in financing Local government
service delivery across all decentralized service delivery.

This program was planned to be used for three main purposes: Education, the
renovation, construction and equipping of classrooms, construction of latrines,
laboratories and teachers’ housing, Health, Upgrading, construction, equipping of Health
Centre IIIs, maintenance, rehabilitation and expansion of health infrastructure and
Capacity development, to help improve local government management and service
delivery performance.

My audit focused on determining whether Uganda Intergovernmental Fiscal Transfers

(UgIFT) program was implemented in accordance with applicable laws, regulations and
guidelines. I reviewed to confirm whether the budgeted development grant for
education and health components of the program were fully released and on-time, the
released funds were utilised, ownership of land for the investment, the level of

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completion and functionality of the projects in achievement of service delivery objectives
of the program.

Below are the key findings;

a) Funding and absorption of UgIFT funds

I evaluated the funding and absorption levels in 97 LGs and noted that a total of
UGX.263.7Bn (99%) was received in 97 LGs, out of the budgeted UGX.267.3Bn.
Out of the funds received, the LGs spent UGX.174.4 (66%) by the end of the financial
year, resulting in an under absorption of UGX.89.3Bn.

A total of 89 LGs failed to spend UGX.89.3Bn of the released funds. 87 (98%) LGs failed
to spend UGX.86.8Bn (88%) of the released amount on education projects while 2 (2%)
LGs on Health projects, as shown in the table below;

Table 79: LGs that failed to utilize UgIFT funds

SN Project No of LGs Un utilized amount
1 Education (construction of seed schools) 87 86,856,707,699
2 Health (Upgrading of HC II to HC III and 2 2,478,350,441
Supply of medical Equipment.
Total 89 89,335,058,140

As a result, this delayed the provision of the planned education and health services to
the intended beneficiaries.

The Accounting Officers explained that under absorption was mainly due to delayed
release of funds by MoFPED, slow works by the contractors who have many sites,
delayed initiation and conclusion of the procurement process and works that did not
start in some Districts due to land issues.

Recommendations

 The Accounting Officers should liaise with MoFPED so that those funds are
released timely.
 The Accounting Officers should ensure that the procurement processes are
streamlined for timely implementation and robust due diligence undertaken to
attract competent contractors.
 The Accounting Officers should engage the relevant stakeholders, including
political leaders to have land issues resolved and process the land titles.

b) Delayed release of UgIFT funds

I noted that 36 LGs did not receive UgIFT funds timely and on average, it took 30 days
from the expected date of release. I further observed that 14 (39%) LGs received
funding in the 2nd quarter while 4 (11%) LGs received the UgiFT funds in the 3rd and 4th
quarter.

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The Accounting Officers explained that the delays were mainly caused by;

 The delays by MoFPED in issuing supplementary funding for UgIFT.

 It was beyond the districts’ control since funds are disbursed by MoFPED.

This resulted in partial/non implementation of 16 key infrastructural facilities in schools

and health centres.

Table 80: Partially and non-implemented UgIFT infrastructural facilities

SN Project No of partial/non
implemented facilities
1 Education (construction of seed schools). 13
2 Health (Upgrading of HC II to HC III and Supply 3
of medical equipment.
Total 16

Recommendation

The Accounting Officers should engage MoFPED on timely release of funds for timely
delivery of services.

c) Government investments in untitled Land

I observed that 67 LGs invested a total of UGX.247.4Bn on 1,128 acres of land without
evidence of ownership in terms of land titles, as shown in the table below;

Table 81: Government projects on untitled Land

SN Project No. of projects on Size (acres)
untitled land
1 Education (construction of seed schools) 108 986
2 Health (Upgrading of HC II to HC III and 69 142
Supply of medical
equipment
Total 177 1,128

There is a risk of loss of funds while settling land disputes including loss of the
infrastructure.

The Accounting Officer attributed this to inadequate funds to process land titles and the
institutional ownership of the land such as land belonging to faith based and traditional
institutions that prefer memorandum of understanding to transferring title.

Recommendation

The Accounting officers should fast-track the processing of land titles for UGiFT projects
and, going forward, desist from investing government funds on untitled land.

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 d) Completion and functionality of prior year projects (2022/23)

I conducted physical inspections of 132 projects in 72 LGs worth UGX. 194.46Bn

expected to be completed by the end of 30th June 2024 and in use for service delivery.

I noted the following;

 105 (80%) out of 132 projects in 57 LGs inspected were not completed while 5
projects in 4 LGs were abandoned, and works had stalled.
 22 completed projects in 15 LGs were not in use due to delayed commissioning
of completed projects and inadequate teachers to work in the schools and health
workers to operate the medical equipment because of a ban on recruitment.

Non completion/utilisation of infrastructure implies that program objectives of improving

health and education services were not achieved.

Recommendations

The Accounting Officers should;

 Engage MoPS to lift the recruitment ban to ensure that staff are recruited for the
newly constructed education and health facilities.
 Engage contractors and political leaders for timely commissioning of the
completed projects to improve health and education services in the districts.

5.1.7 Cross-cutting issues from Higher Local Governments

a) Recognition and Valuation of Assets

Disclosed in the financial statements of 130 Local Governments (LGs), under Note 26
(Property, Plant and Equipment) and Note 27 (Non-produced Assets) are amounts of
UGX.6,062Bn and UGX.4,551Bn respectively. The amounts indicate a significant
increase in the asset account balances of UGX.5,102Bn (531%) for Property, Plant and
Equipment and UGX.3,875Bn (573%) for Non-produced Assets.

The above was a result of a change in the accounting policy to full adoption of the
accrual basis of accounting, as guided by the Accountant General in the financial year
2023/24 as government commitment to adopt IPSAS.

I further noted that the significant increase in the asset balances was caused by new
additions in the year, whose values/cost, were based on management estimates as
guided by Accountant General. The estimates, however, were not guided by the
valuations of the Government Chief Valuer.

Recommendation

Accounting Officers should engage the Accountant General and Government Chief
Valuer, to ensure that the districts’ assets are re-valued in a phased manner over an
agreed period of time for correct recording of the assets at more realistic values.

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b) Long Outstanding YLP and UWEP Balances

Included in the statements of financial position and Note 22, of 127 LGs, is an
outstanding balance of UGX.143Bn in respect of Youth Livelihood Program (YLP) and
Uganda Women Empowerment Project (UWEP).

I noted that out of the previous year’s balance of UGX.131Bn, only a sum of UGX.8Bn
(6%) was collected during the year under review, indicating low recovery, thus
undermining the objectives of the programmes.

Accounting Officers attributed the failure to recover the outstanding amounts to;

 Disintegration of groups, that were advanced the programme funds, which could
not be traced and most of the business enterprises had since collapsed.
 Some funds were advanced to YLP groups in administrative units that have since
been absorbed by the newly created votes, making it challenging to enforce
collection due to the new jurisdiction protocols.

Recommendation

Accounting Officers should liaise with the Ministry of Gender, Labour and Social
Development (MoGLSD) to devise strategies that will enable full recovery of the
amounts due from the groups.

c) Understaffing

I compared the approved staff structure and the staff list and noted that in 45 HLGs,
out of the approved 30,287 staff positions, 20,888 (69%) were filled, leaving 9,399
(31%) positions vacant.

The vacant key positions included; Chief Finance Officers, Principal Finance Officers,
Senior Finance Officers and Senior Land Management Officer.

Understaffing overstretches the available staff beyond their capacity, creates job-
related stress and negatively affects the level of service delivery in the district.

Accounting Officers explained that the districts recruit on replacement basis, however,
recruitment to fill other positions will be done once the halt on recruitment is lifted.

Recommendation

Accounting Officers should engage the Ministry of Public Service (MoPs) and Ministry of
Finance, Planning and Economic Development (MoFPED) to fast-track recruitment.

d) Mischarge of Expenditure

Treasury Instruction No.10.10.16, 2017 states that all payments shall be fully coded
according to the chart of accounts codes to enhance expenditure classification and
reporting.

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 I noted that in 9 LGs, a sum of UGX.3.33Bn was incurred on item codes for which they
were not budgeted.

There is a risk that funds intended for planned activities could have been diverted to
other activities and there is a possibility of falsification of supporting documents.

Some of the Accounting Officers attributed the anomaly to failure by the PBS to capture
all codes as per chart of Accounts, while others did not provide a response.

Recommendation

Accounting Officers should ensure that expenditure is incurred on item codes for which
they were budgeted

e) Unaccounted for Funds

Instruction 10.1.6 (a- h) of the Treasury Instruction 2017 states that no payment shall
be made for goods, services and works outside properly authorized commitments and
without adequate supporting documents which are to include among others a signed
Contract/agreement, Certificates of completion of works, Goods Received Notes, Goods
Delivery Notes and any other documents in support of a payment.

A review of payment vouchers revealed that in 4 LGs, expenditure totaling UGX.0.67Bn

remained unaccounted at the close of the financial year. Specifically, there were no
activity reports, pre and post inspection reports or other evidence to confirm pull
implementation of the activity.

There is a risk that funds were misappropriated.

The Accounting Officers explained that by the time of audit, the accountabilities had
been filed in separate files. These, however, were not availed for audit verification.

Recommendation

I advised the Accounting Officers to always ensure that sufficient and appropriate
documentation is attached to the payments made. In the meantime, the unaccounted-
for funds should be recovered from the individual officers

5.2 Highlights from Audit of Lower Local Governments for the period 2021/22

I undertook financial audits in a total of 860 Lower Local Governments (LLGs), which
Included: Sub-counties, Town Councils and Municipal Divisions for the financial year
2021/22 and noted the following cross-cutting findings;

5.2.1 Lack of Strategic Plans

Contrary to Section 35(3) of the Local Government Act Cap 243, I noted that the 86
LLGs with a total budget of UGX.10.135Bn did not have strategic plans to indicate their
vision, mission, goals and objectives.

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 Table 82: LLG without Strategic Plans
Category Number Approved Budget (UGX’Bn)
Municipal Division 8 -
Sub-County 29 2.951
Town Council 49 7.184
Total 86 10.135
Source: OAG Analysis

As a result, activities budgeted and implemented might not have been in line with the
National Development Plan (NDP) III, thus denying the public the envisaged service
delivery.

The Accounting Officers attributed the above to limited capacity of staff at LLGs to
prepare strategic plans, and inadequate funding to source private consultancy services
to develop the strategic plans.

Recommendation

Accounting Officers should budget and ensure the Strategic plans are developed,
approved and followed while implementing government development programs which
are in line with the NDP.

5.2.2 Under realization of revenue budgets

During the financial year 2021/22, a total of 710 LLGs realised UGX.80.494Bn out of the
budgeted UGX.100.409Bn, representing 80% performance from the different revenue
sources, while UGX.19.915Bn remained un-collected, as summarized in the table below;

Table 83: LLGs’ Revenue performance

Category Budgeted Revenue Amount Realized Variance
(UGX’Bn) (UGX’Bn) (UGX’Bn)
Division 6.794 4.784 2.010
Sub-County 7.567 5.636 1.931
Town Council 86.048 70.074 15.974
Total 100.409 80.494 19.915
Source: OAG Analysis

The revenue shortfalls negatively affected the implementation of planned activities at

the LLGs.

The Accounting Officers attributed this to inadequate releases from the MoFPED,
especially under the Uganda Road Funds, DDEG, and the low local revenue collections
coupled with the failure by the Higher Local Governments to remit the due share of
revenue collected.

Recommendation

The Accounting Officers should put in place strategies to widen the local revenue base
for effective service delivery. In addition, the MoFPED and other government agencies
should ensure adequate release of budgeted funds to LLGs.

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5.2.3 Under absorption of realised funds

I noted that out of the total receipts for the financial year 2021/22 of UGX.68.747Bn, a
sum of UGX.63.020Bn (92%) was spent by 389 LLGs, resulting in an under absorption
of UGX.5.728Bn.

Table 84: Absorption of Funds in LLGs

Category Amount Realized Amount Spent Variance (UGX’Bn)
(UGX’Bn) (UGX’Bn)
Division 3.801 3.716 0.085
Sub-County 23.415 21.543 1.872
Town Council 41.531 37.761 3.771
Total 68.747 63.020 5.728
Source: OAG Analysis

Under absorption of released funds resulted in partial/non-implementation of planned

activities, thus affecting service delivery.

The Accounting Officers attributed this to delayed release of funds and slow progress of
contracted works.

Recommendation

The Accounting Officer should always ensure that funds are fully absorbed in
implementing planned activities. In addition, they should ensure proper planning of
works to be undertaken and strengthen contract management practices.

5.2.4 Implementation of quantified activities in the workplan

An assessment of 572 quantified activities with an expenditure of UGX.13.062Bn

sampled for assessment revealed the following;

 A total of 283 activities worth UGX.6.537Bn were fully implemented.

 A total of 147 activities worth UGX.4.951Bn were partially implemented
 A total of 141 activities worth UGX.1.573Bn were not implemented

The failure to implement all planned activities negatively affected service delivery.

The Accounting Officers explained that this was as result of receiving less than the
budgeted funds that could not support the implementation of all planned activities,
which would in some Quarters come in late.

Recommendation

The Accounting Officer should liaise with MoFPED to ensure adequate and timely release
of funds to enable the implementation of all planned activities.

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5.2.5 Implementation of District Discretionary Equalization Grant

The District Discretionary Equalization Grant (DDEG) is aimed at ensuring that funding is
focused on areas where services are behind (lagging) the national average standards,
both in the rural and urban areas.

I sampled 53 LLGs and reviewed their work plans and noted that out of the budgeted
UGX.2.987Bn, only UGX.2.163Bn (73%) was received, implying a shortfall of
UGX.0.824Bn, as detailed below;

Table 85: Release of DDEG Grant

Category Budgeted amount Funds released (UGX) Variance (UGX)
(UGX)
Town Council 2,987,650,025 2,163,538,851 824,111,174
Source: OAG Analysis

Underfunding under the Grant negatively affected the realisation of the intended
objective.

The Accounting Officers explained that this was a result of underfunding from the
Government.

Recommendation

The Accounting Officer should engage the MoLGs and MoFPED improved grant
allocations to enable LLGs to achieve the intended Grant objectives.

5.2.6 Implementation of Activities Under the Uganda Road Fund

Section 22 (a) of the Uganda Road Fund (URF) Act specifies that the Fund may be
applied for routine and periodic maintenance of public roads which include national,
district, urban roads and community access roads.

LLGs as sub agencies under the districts and municipal councils are responsible for the
maintenance of urban and community access roads.

A review of utilization of the Road Fund at LLGs revealed the following;

 I reviewed 76 LLGs and noted that out of the total budget of UGX.10.460Bn,
only UGX.6.394Bn (61.1%) was received resulting in a shortfall of UGX.4.065Bn
(38.9%).
 From a sample of 47 LLGs that received, UGX.5.986Bn for the maintenance of
2,126 Km of roads, UGX.3.927Bn was spent on maintenance of 1,276 Km of
roads resulting in an under absorption of UGX.2.058Bn.

Underfunding and low absorption of funds resulted in partial or non-implementation of

the planned 850Km road activities.

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 The Accounting Officers explained that this was caused by inadequate and late release
of funds at the end of the last quarter of the financial year.

Recommendation

The Accounting Officer should always utilize all released funds to implement the planned
activities. In addition, MoFPED should ensure adequate and timely release of road
funds.

5.2.7 Land Management

Instruction 16.13.11 of the Treasury Instruction, 2017 states that a government entity
shall be considered to have control for land if it has the title. If the government entity
does not have title to the land, the entity shall not be considered to have control.

A review of the land management processes at the LLGs indicated the following;

 I noted that 534 LLGs did not have land titles for the 2,262 pieces of land.
 I noted that 245 LLGs did not record 1,081 pieces of land in their respective
asset registers. This was contrary to Regulation 88 of the Local Governments
Finance and Accounting Regulations, 2007.

There is a risk of loss/encroachment on the LLGs land. In addition, there is a risk of

failure to track and monitor the pieces of land and may subsequently lead to loss of
land.

The Accounting Officers attributed the lack of land titles to lack of funds to undertake
the process of surveying the land and processing the land titles.

Recommendations

The Accounting Officer should;

 Ensure they plan and budget to undertake the processes of acquiring land titles.
 Ensure that all land owned by LLGs is recorded in the fixed asset registers.

5.2.8 Under Staffing

I carried out an assessment of the staffing levels at the LLGs and noted that out of the
approved staff structure of 22,053 positions in 767 LLGs, 9,414 positions (43%) were
filled leaving 12,639 (57%) vacant.

Understaffing affected effective delivery of services at LLGs.

The Accounting Officers explained that this was caused by a government ban on the
recruitment of new staff other than on replacement basis due to wage budget ceilings.

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 Recommendation

The Accounting Officers should continue to liaise with Ministry of Public Service and
MoFPED to come up with a plan of filling the vacant positions to enable effective service
delivery at LLGs.

5.3 Audit of Secondary Schools and Tertiary Institutions

5.3.1 Academic year ended 31st Dec 2021 and FY ended 30th June 2021

I undertook a financial audit of Secondary schools and Tertiary Institutions for the
academic year ended 31st December 2021 and financial year ended 30th June 2021
respectively and observed the following key findings that are also included in individual
entity reports:

a) Budget Performance
i) Under Budget performance

A review of Approved budget estimates of 202 schools revealed that they budgeted to
receive UGX.376,198,283,022 but only realised UGX.210,485,838,979 (56%) leading to
an underfunding of UGX.165,712,444,043 (44%).

The failure to realise all budgeted amounts affected the implementation of several
school activities.

The Accounting Officers mainly attributed this to the effects of Covid-19 that affected
incomes of parents making them unable to pay full fees.

Recommendation

The Accounting Officers should ensure realistic budgets are prepared and put in place
practical measures to collect all the budgeted funds. In addition, all unimplemented or
partially implemented activities should be rolled forward to the next financial year.

ii) Excess Budget Performance

A review of Approved budget estimates of 17 schools revealed that they budgeted to

receive UGX.27,498,109,152 but realised UGX.34,086,383,826(124%) leading to an
excess funding of UGX.6,588,274,674 (24%).

There is a risk that the excess funds collected were not declared and approved by the
respective school boards. As a result, oversight over expenditure of these funds was
impaired.

The Accounting Officers mainly attributed this to under budgeting of expected revenues.

Recommendations

The Accounting Officers should;

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 Ensure that realistic budgets are prepared considering all foreseeable factors
that could affect revenue and expenditure.
 Ensure that any excess funds realised are submitted to the school boards for
approval.

b) Accumulation of Receivables

Paragraph 4.6.3 (b) of the Simplified Guidelines on Budgeting, Accounting and

Reporting for Secondary Schools, 2017 states that money owed to the school represents
an asset that is idle, as it denies the school the opportunity of using the money to
provide services promptly.

I noted that receivables of UGX.23,063,008,924 had accumulated in 147 schools by the

end of the financial year.

The receivables represent an idle asset, which denied the schools the revenue required
to implement planned activities.

Recommendation

The Accounting Officer should put in place practical measures to collect the receivables
so that they are minimised as much as possible.

c) Accumulation of Domestic Arrears

Section 21(2) of the Public Finance Management Act, 2015 provides that a vote shall not
take any credit from any local company or body unless it has capacity to pay the
expenditure from the approved estimates as appropriated by Parliament for that
financial year.

I noted that Domestic arrears of UGX.31,878,628,751 had accumulated in 109 schools

by the end of the financial year.
Accumulation of payables damages the school’s creditworthiness and could lead to
litigation.

Recommendation

The Accounting Officers should desist from incurring expenses when they do not have
funds to clear such expenses. Furthermore, the Accounting Officers should give
respective items under domestic arrears first call in next financial year’s budget so that
they are promptly settled.

d) Lack of Land titles

Indicator 12(xiii) of the Basic Requirements and Minimum Standards Indicators for
Education Institutions, 2010 requires Schools to have land titles for the land on which
they are located.

301
I noted that 3 Schools did not have titles for the pieces of land in which they were
located.

There is a risk of loss of these pieces of land in case of encroachment or disputes.

The Accounting Officers mainly explained that the schools were located on land that
belonged to the Church and Muslim foundations.

Recommendation

The Accounting Officers should engage the MoES, MoFPED, Church foundations and
Muslim organisations to explore ways of allowing the schools to acquire the respective
land titles.

e) Under Staffing

Section 5 (g) of Education (Pre-primary, Primary and Post primary) Act, 2008 provides
that Government through its relevant agencies shall be responsible for recruitment,
deployment and promotion of both teaching and non-teaching staff.

A review of staff establishments of 7 Schools revealed that out of the 444 approved
staff positions, only 225 (51%) were filled leaving 219 (49%) vacancies.

Understaffing negatively affected effective provision of education services.

Recommendation

The Accounting Officers should liaise with the Ministry of Education and Sports, Ministry
of Public service as well as Ministry of Finance Planning and Economic development to
find a solution for this matter.

f) Lack of Strategic Plans

Guideline 2.3.8 of the Budgeting and implementation guidelines for Primary and
Secondary Schools, 2019 provides that at School level, School development plans have
to be made by School staff and approved by BOG containing practical actions aimed at
providing the minimum standards and basic requirements for ensuring that the Schools
are child friendly with necessary facilities and resources to enable Ugandan children –
girls and boys- of School going age to enter, remain and successfully complete the
Secondary cycle of education.

I noted that 56 schools did not have strategic plans to guide them plan achievement of
short term, medium term and long-term goals.

Non-existence of the school strategic plan affects effective planning and budgeting in
the short term and long term.

302
 Recommendation

The Accounting Officers should make budget provisions to prepare strategic plans to
guide school operations.

5.3.2 Academic year ended 31st Dec 2022 and FY ended 30th June 2022

I also undertook financial audits of Secondary schools and Tertiary Institutions for the
academic year ended 31st December 2022 and FY ended 30th June 2022 respectively
and observed the following key findings that are also included in individual entity
reports:

a) Budget Performance
i) Under Budget performance

A review of Approved budget estimates of 173 schools revealed that they budgeted to
receive UGX.401,381,692,377 but only realised UGX.325,853,039,933(81%) leading to
an underfunding of UGX.75,528,652,444 (19%).

Failure to realise all budgeted amounts negatively affected implementation of planned

school activities.

The Accounting Officers mainly attributed this to;

 effects of Covid-19 that affected the incomes of parents making them unable to
pay full fees.
 the decrease in enrolment of students that affected fees collection.

Recommendation

The Accounting Officers should ensure realistic budgets are prepared and put in place
practical measures to collect all the budgeted funds. In addition, all unimplemented or
partially implemented activities should be rolled forward to the next financial year.

ii) Excess Budget Performance

A review of Approved budget estimates of 50 schools revealed that they budgeted to

receive UGX.153,748,392,810 but realised UGX.170,275,770,322 (111%) leading to an
excess funding of UGX.16,527,377,512 (11%).

There is a risk that the excess funds collected were not declared and approved by the
respective school boards. As a result, oversight over expenditure of these funds was
impaired.

The Accounting Officers mainly attributed this to;

 increase in salaries of science teachers

 Under budgeting of expected revenues
 Increased enrolment of students than initially expected.

303
Recommendations

The Accounting Officers should;

 Ensure that realistic budgets are prepared considering all foreseeable factors
that could affect revenue and expenditure.
 ensure that any excess funds realised are submitted to the school boards for
approval.

b) Accumulation of Receivables

Paragraph 4.6.3 (b) of the Simplified Guidelines on Budgeting, Accounting and

Reporting for Secondary Schools, 2017 states that money owed to the school represents
an asset that is idle, as it denies the School the opportunity of using the money to
provide services promptly.

I noted that receivables of UGX.19,986,102,058 had accumulated in 141 schools by the

end of the financial year.

Receivables represent an idle asset, and it denied the schools the revenue required to
implement planned activities.

Recommendation

The Accounting Officers should put in place practical measures to collect the receivables
so that they are minimised as much as possible.

c) Accumulation of Domestic Arrears

Section 21(2) of the Public Finance Management Act, 2015 provides that a vote shall not
take any credit from any local company or body unless it has capacity to pay the
expenditure from the approved estimates as appropriated by Parliament for that
financial year.

I noted that Domestic arrears of UGX.15,118,083,015 had accumulated in 124 schools

by the end of the financial year.

Accumulation of payables damages the school’s creditworthiness and could lead to

litigation.

Recommendation

The Accounting Officers should desist from incurring expenses when they do not have
funds to clear. Furthermore, the Accounting Officers should give respective items under
domestic arrears first call in next financial year’s budget so that they are promptly
settled.

304
d) Lack of Land titles

Indicator 12(xiii) of the Basic Requirements and Minimum Standards Indicators for
Education Institutions, 2010 requires Schools to have land titles for the land on which
they are located.

I noted that 34 Schools did not have titles for the pieces of land in which they were
located.

There is a risk of loss of these pieces of land in case of encroachment or disputes.

The Accounting Officers mainly explained that the schools were located on land that
belonged to the Church and Muslim foundations.

Recommendation

The Accounting Officers should engage the MoES, MoFPED, Church foundations and
Muslim organisations to explore ways of allowing the schools to acquire the respective
land titles.

e) Under staffing

Section 5 (g) of Education (Pre-primary, Primary and Post primary) Act, 2008 provides
that Government through its relevant agencies shall be responsible for recruitment,
deployment and promotion of both teaching and non-teaching staff.

A review of staff establishments of 150 Schools revealed that out of the 12,734
approved staff positions, only 6,449 (51%) were filled, leaving 6,285 (49%) positions
vacant.

Understaffing negatively affected effective provision of education services.

Recommendation

The Accounting Officers should liaise with the Ministry of Education and sports, MoPS as
well as the Ministry of Finance Planning and Economic development to get a solution to
this matter.

f) Lack of Strategic Plans

Guideline 2.3.8 of the Budgeting and implementation guidelines for Primary and
Secondary Schools, 2019 provides that at School level, School development plans have
to be made by School staff and approved by BOG containing practical actions aimed at
providing the minimum standards and basic requirements for ensuring that the Schools
are child friendly with necessary facilities and resources to enable Ugandan children –
girls and boys- of School going age to enter, remain and successfully complete the
Secondary cycle of education.

305
I noted that 72 schools did not have strategic plans to guide them plan to achieve short
term, medium term and long-term goals.

Non-existence of the school strategic plan affects effective planning and budgeting in
the short term and long term.

Recommendation

The Accounting Officers should make budget provisions to prepare these strategic plans.

306
PART VI: AUDIT OF TREASURY MEMORANDA

6.1 Treasury Memoranda Backlogs

In accordance with Section 12 (f) of the National Audit Act, Cap 170, I am required to
undertake the audit of the Treasury Memoranda. During this audit year, I undertook
audits of 13 Treasury Memoranda that I received from the Ministry of Finance Planning
and Economic Development (MoFPED), prior to audit year 2024. These were in 428
entities comprising of: 124 Ministries, Departments and Agencies (MDAs), 13 projects,
58 Statutory Corporations (SC), 219 Local Governments (LGs) and Value for
Money/engineering audits for 14 Municipalities. The table below refers;

Table 86: Showing category of entities per Treasury Memoranda

SN Treasury Memoranda MDAs Projects SC LGs VFM
1. Treasury Memorandum on the report of 37 1
the Public Accounts Committee - Central
Government on the report of the Auditor
General for Financial Year 2015/16.

2. Treasury Memorandum on the report of 56

the Public Accounts Committee on
Commissions, Statutory Authorities and
State Enterprises for the Financial Year
2020/21.

3. Treasury Memorandum on the 1 3

parliamentary resolutions on the report of
the Public Accounts Committee- Central
Government on the report of the Auditor
General for Financial Year 2014/15
(Ministry of Energy and Mineral
Development).

4. Treasury Memorandum on the report of 32

the Public Accounts Committee - Central
Government on the report of the Auditor
General for Financial Year 2020/21.

5. Treasury Memorandum on report of the 14

Public Accounts Committee (Central
Government), on the report of the Auditor
General on the health sector for the
Financial Year 2019/20

6. Treasury Memorandum on the report of 115

the Public Accounts Committee – Local
Government on the Auditor General’s
report for the Financial Year 2016/17 on
115 District Local Governments.

307
 SN Treasury Memoranda MDAs Projects SC LGs VFM
7. Treasury Memorandum on the report of 104
the Public Accounts Committee – Local
Government on the Auditor General’s
report for the Financial Year 2016/17 on
41 Municipal Councils and 63 Town
Councils.

8. Treasury Memorandum on the report of 20

the Public Accounts Committee on the
Auditor General’s Report on entities with
unqualified opinion for Financial Year
2014/15.

9. Treasury Memorandum on the report of 17 3

the Public Accounts Committee on the
Auditor General’s report on Health Sector
for Financial Year 2014/15.

10. Parliamentary resolutions on the report of 3 6

the Public Accounts Committee on the
Auditor General's report on Public Sector
Management for Financial Year 2014/15;
Ministry of Local Government, Office of
the Prime Minister, Ministry of Public
Service.

11. Treasury Memorandum on the report of 14

the Committee on Public Accounts (Local
Government) on the Value for Money
Audit on Uganda Support to Municipal
Infrastructure Development (USMID)
Program implemented by 14 Municipal
Councils in the Financial Year 2015/16.

12. Report of the Committee on Commissions, 1

Statutory Authorities and State
Enterprises (COSASE) on the special audit
report of Auditor General on defunct
banks.

13. Report of the Subcommittee of the 1

Committee on Commissions, Statutory
Authorities and State Enterprises on the
investigation into the operations of the
Departed Asians’ Property Custodian
Board.

Total 124 13 58 219 14

Source: OAG analysis of Treasury Memoranda prepared by MoFPED

308
 The Accountability Committees made 2,803 recommendations. Based on my verification,
I observed that 31% of the recommendations were fully implemented, 35% were
partially implemented and 34% were not implemented at all, as summarised in able
below;

Table 87: Summary of Treasury Memoranda implementation status

No of No. of Recommendation Recommendation Recommendations
entities Recommendatio s implemented s partially not implemented
ns issued implemented
No % No % No %
428 2,803 884 (31%) 979 (35%) 940 (34%)

6.2 Treasury Memoranda Audits in Progress

At the close of the audit year, seven (7) Treasury Memoranda were still under
verification. The results of these audits will be included in my subsequent report to
Parliament. These include;

i) Treasury Memorandum on the report of the Public Accounts Committee on

Commissions, Statutory Authorities and State Enterprises for the Financial Year
2021/22.

ii) Treasury Memorandum on report of the Public Accounts Committee (Central

Government), on the report of the Auditor General for the Financial Year
2021/22.

iii) Treasury Memorandum on the report of the Public Accounts Committee – Local
Government on the report of the Auditor General for Financial Year 2021/22
(Cities and Municipalities Volume 1).

iv) Treasury Memorandum on the report of the Public Accounts Committee – Local
Government on the report of the Auditor General for the Financial Year 2021/22
(Cities and Municipalities Volume 11).

v) Treasury Memorandum on the report of the Public Accounts Committee – Local

Government on the report of the Auditor General for the Financial Year 2021/22
(Cities and Municipalities Volume 111).

vi) Supplementary Treasury Memorandum on the report of the Auditor General for
the Financial Year 2020/2021.

vii) Treasury Memorandum on the report of the Public Accounts Committee - Central
Government on the report of the Auditor General for financial years 2013/14,
2014/15, 2015/16 and 2016/17; Uganda's Missions abroad.

309
APPENDICES

Appendix 1: Public Corporations and State Enterprises supposed to be Consolidated

SN Entity Nature Category Remarks
1. Bank of Uganda Corporation Not for profit Consolidated
2. Civil Aviation Authority Corporation Not for profit with a Consolidated
commercial orientation
3. Deposit Protection Fund of Uganda Corporation Not for profit Consolidated
4. Electricity Regulatory Authority Corporation Not for profit Consolidated
5. Insurance Regulatory Authority Corporation Not for profit Consolidated
6. National Drug Authority Corporation Not for profit Consolidated
7. National Enterprises Corporation (NEC) Corporation For profit Consolidated
8. National Water and Sewerage Corporation Corporation Not for profit with a Consolidated
commercial orientation
9. Uganda Air Cargo Corporation Corporation For profit Consolidated
10. Uganda Communications Commission Corporation Not for profit Consolidated
11. Uganda Development Corporation (Group) Corporation For profit Consolidated
12. Uganda Railways Corporation Corporation For profit Consolidated
13. Uganda Wildlife Authority Corporation Not for profit Consolidated
14. Uganda Wildlife Conservation Education Centre Corporation Not for profit Consolidated
15. Housing Finance Bank limited Enterprise For profit Consolidated
16. Kiira Motors Corporation Enterprise For profit Consolidated
17. Kilembe Mines Limited Enterprise For profit Consolidated
18. Mandela National Stadium Enterprise Not for profit with a Consolidated
commercial orientation
19. National Housing and Construction Company Limited Enterprise For profit Consolidated
20. New Vision Printing and Publishing Company Limited Enterprise For profit Consolidated
21. Post Bank Uganda Limited Enterprise For profit Consolidated
22. Pride Micro Finance Enterprise For profit Consolidated
23. The Microfinance Support Centre Ltd Enterprise Not for profit Consolidated
24. Uganda Broadcasting Corporation Enterprise Not for profit with a Consolidated
commercial orientation
25. Uganda Development Bank Limited Enterprise For profit with a Consolidated
development mandate
26. Uganda Electricity Distribution Company Limited Enterprise For profit Consolidated
27. Uganda Electricity Generation Company Enterprise For profit Consolidated
28. Uganda Electricity Transmission Company Limited Enterprise For profit Consolidated

310
SN Entity Nature Category Remarks
29. Uganda Energy Credit Capitalization Co. Ltd Enterprise For profit with a service Consolidated
(Company Limited by Guarantee) delivery mandate
30. Uganda National Airlines Company Limited Enterprise For profit Consolidated
31. Uganda National Oil Company Limited Enterprise For profit Consolidated
32. Uganda Post Limited Enterprise For profit Consolidated
33. Uganda Printing and Publishing Corporation Enterprise For profit Consolidated
34. Uganda Property Holdings Limited Enterprise For profit Consolidated
35. Bujagali Energy Limited (Concession) Enterprise For profit Disclosed and not consolidated
36. Dairy Corporation Limited Enterprise For profit Disclosed and not consolidated
37. Enterprise Uganda Limited (Company Limited by Enterprise For profit with a service Disclosed and not consolidated
Guarantee) delivery orientation
38. Housing Finance Investments Enterprise For profit Disclosed and not consolidated
39. Kampala Industries and Business Park Limited Enterprise For profit Disclosed and not consolidated
40. Nakivubo War Memorial Stadium(concession) Enterprise Not for profit with a Disclosed and not consolidated
commercial orientation
41. Production Enterprises Corporation Limited Enterprise For profit Disclosed and not consolidated
42. Science and Technology Equipment Production (Unit) Enterprise For profit Disclosed and not consolidated
Ltd
43. Uganda Crane Industries Ltd. Enterprise For profit Disclosed and not consolidated
44. Uganda Livestock Industries limited (Cannot be Enterprise For profit Disclosed and not
traced) consolidated, it cannot be
traced
45. Uganda Seeds Limited Enterprise For profit Disclosed and not
consolidated, it was sold
46. UGMA Engineering Corporation Limited Enterprise For profit Disclosed and not consolidated
47. Uganda Fisheries Enterprises Limited Enterprise For profit Disclosed and not consolidated
48. Uganda Telecommunications Corporation Limited Enterprise For profit Not consolidated and not
(UTCL) disclosed
49. Insurance Training college Enterprise For profit Not consolidated and not
disclosed
50. Uganda Hotel and Tourism Training Institute Enterprise Not for profit with a Not consolidated and not
commercial orientation disclosed

311
Appendix 2: Inconsistencies in the submitted information
a) Inconsistencies in the Statement of Performance
SN Entity Operating Revenue (UGX) “Bn” Operating Expenses (UGX) “Bn” Other Gains and Losses (UGX) “Bn” Surplus/Deficit (UGX) “Bn”
Summary Verified Variance Summary Verified Variance Summary Verified Variance Summary Verified Variance
Statement Figure/FS Statement Figure/FS Statement Figure/FS Statement Figure/FS
1 Bank of Uganda 1544.65 1537.89 6.76 746.18 621.39 124.79 -343.89 295.18 -639.07 1142.35 1142.35 0.00
2 Electricity 43.56 43.55 0.01 40.52 40.48 0.04 0.07 0.20 -0.14 2.97 2.86 0.11
Regulatory
Authority
3 National Drug 87.21 87.19 0.02 86.11 86.10 0.01 -1.57 1.68 -3.25 2.67 2.78 -0.11
Authority
4 National Water & 622.25 622.23 0.02 594.18 580.30 13.88 0.00 0.00 0.00 28.06 60.36 -32.30
Sewerage
Corporation
5 Uganda Civil 329.22 329.28 -0.07 293.25 295.62 -2.37 2.76 2.76 0.00 33.21 32.01 1.20
Aviation Authority
6 Uganda Railways 28.20 29.32 -1.12 65.01 66.31 -1.29 3.11 1.27 1.84 -39.93 36.35 -76.27
Corporation
7 Uganda Wildlife 28.72 28.79 -0.07 23.18 23.24 -0.07 0.00 0.00 0.00 5.54 5.54 0.00
Conservation
Education Centre
8 Mandela Stadium 22.93 22.93 0.00 4.26 4.26 0.00 0.00 0.00 0.00 18.67 18.67 0.00
limited
9 Uganda Electricity 111.3 111.30 0.00 122.22 121.39 0.83 0.00 0.00 0.00 -10.92 -10.92 0.00
Distribution
Company Limited
10 Uganda Electricity 352.25 350.60 1.66 286.67 250.05 36.62 -0.67 -0.67 0.00 64.92 54.28 10.64
Generation
Company Limited
11 Uganda Electricity 264.21 252.40 11.80 122.52 129.01 -6.49 17.91 -10.81 28.72 123.78 82.26 41.52
Transmission
Company Limited
12 Uganda National 42.84 42.79 0.05 49.24 48.84 0.40 2.27 2.27 0.00 -4.13 3.78 -7.91
Oil Company
Limited
13 National Housing 22.15 22.35 -0.20 23.51 17.62 5.89 0.07 5.68 -5.60 -1.28 3.28 -4.56
& Construction
Company Limited
14 Uganda Energy 8.74 8.74 0.00 11.79 11.88 -0.09 0.00 0.00 0.00 -3.05 -3.14 0.09
Credit
Capitalization
Company
15 Uganda Post 18.55 18.55 - 18.11 17.33 0.78 0.297 - 0.297 0.14 0.1 0.04
Limited
16 Uganda 43.62 36.17 7.45 51.38 57.23 (5.85) 10.34 - 10.34 (21.06) (18.1) (2.96)
Development
Corporation
17 Uganda Property 9.84 9.84 - 8.56 8.56 - (0.3) 0.3 (0.6) 1.57 1.57 -
Holdings Limited
18 Uganda National 369.73 349.59 20.14 612.32 584.42 27.9 - - - (242.59) (237.85) (4.74)
Airlines Co. Ltd.

312
b) Inconsistencies in the statement of financial position
Entity Retained Earnings Share Capital Other Reserves Financial Assets Non-Financial Assets Liabilities Net worth

Summar Verifi Varia Sum Verifi Varia Summ Verifi Varia Sum Verifie Varian Summ Verifi Varian Sum Verifi Varia Sum Verifi
y ed nce mary ed nce ary ed nce mary d ce ary ed ce mary ed nce mary ed Vari
Stateme Figure State Figur State Figur Figure/ State Figur State Figur State Figur anc
nt /FS ment e/FS ment e/FS State FS ment e/FS ment e/FS ment e/FS e
ment
Bank of 5466.80 867.62 4599. 20.00 20.00 0.00 0.00 4599. - 25716. 15181.9 10534. 513.63 11048 - 20743. 20743 0.00 5486. 5486. 0.00
Uganda 18 18 4599. 76 0 86 .49 10534. 58 .58 80 80
18 86
Electricity 34.55 34.44 0.11 0.28 0.28 0.00 5.24 5.24 0.00 27.29 27.20 0.09 41.88 36.63 5.25 23.83 23.86 -0.03 45.34 39.96 5.38
Regulator
y
Authority
National 140.36 118.57 21.79 0.00 0.00 0.00 0.00 21.80 - 88.59 73.09 15.50 70.12 85.63 -15.50 18.35 18.34 0.01 140.3 140.3 -
Drug 21.80 6 7 0.01
Authority
National 439.37 489.92 -50.55 1022. 0.00 1022. 0.00 1012. - 668.27 672.09 -3.82 3944.4 3943. 0.59 3151.3 3113. 37.49 1461. 1502. -
Water & 02 02 19 1012. 6 87 4 84 39 11 40.7
Sewerage 19 2
Corporati
on
Uganda 356.69 357.02 -0.33 192.3 192.3 0.00 2072.4 2072. 0.00 307.23 307.35 -0.13 3928.1 3940. -12.48 1613.9 1626. - 2621. 2621. -
Civil 7 7 1 41 7 65 3 21 12.28 46 79 0.33
Aviation
Authority
Uganda -443.15 - 1.80 - 0.00 - 3781.7 476.2 3305. 257.03 109.28 147.75 3708.6 3854. - 150.76 150.8 -0.12 3814. 3813. 1.80
Railways 444.94 476.2 476.2 5 7 48 2 69 146.07 8 88 08
Corporati 7 7
on
Uganda 19.61 19.61 0.00 103.9 0.00 103.9 0.00 103.9 - 3.25 3.25 0.00 120.49 123.7 -3.25 0.21 0.21 0.00 123.5 123.5 0.00
Wildlife 2 2 2 103.9 4 3 3
Conservat 2
ion
Education
Centre
Mandela 278.96 278.94 0.02 0.10 0.10 0.00 0.00 0.00 0.00 74.81 74.81 0.00 205.27 205.2 0.00 1.01 1.03 -0.02 279.0 279.0 0.02
Stadium 7 6 4
limited
Uganda -103.09 - 0.00 249.9 249.9 0.00 0.00 0.00 0.00 216.95 216.95 0.00 1997.4 1997. 0.00 2067.5 2067. 0.00 146.8 146.8 0.00
electricity 103.09 7 7 7 47 4 54 8 8
Distributi
on
Company
Limited
Uganda 27.82 17.18 10.64 931.7 105.2 826.5 0.00 826.5 - 231.78 239.75 -7.96 8285.3 8167. 118.04 7557.6 7458. 99.44 959.5 948.8 10.6
electricity 1 1 0 0 826.5 4 30 0 16 2 9 4
Generatio 0
n
Company
Limited
Uganda 486.53 360.87 125.6 1623. 388.6 1235. 0.00 1319. - 1731.0 1691.86 39.15 4329.8 4258. 71.57 3950.4 3881. 69.20 2110. 2068. 41.5
Electricity 6 85 1 24 38 1319. 1 1 24 4 24 38 86 2
Transmiss 38
ion
Company
Limited
Uganda -32.95 -32.61 -0.35 10.00 10.00 0.00 1624.0 1624. 0.00 1565.8 378.33 1187.5 55.14 1237. - 19.95 14.42 5.54 1601. 1601. -
National 0 00 6 3 48 1182.3 05 40 0.35
Oil 4
Company

313
Entity Retained Earnings Share Capital Other Reserves Financial Assets Non-Financial Assets Liabilities Net worth

Summar Verifi Varia Sum Verifi Varia Summ Verifi Varia Sum Verifie Varian Summ Verifi Varian Sum Verifi Varia Sum Verifi
y ed nce mary ed nce ary ed nce mary d ce ary ed ce mary ed nce mary ed Vari
Stateme Figure State Figur State Figur Figure/ State Figur State Figur State Figur anc
nt /FS ment e/FS ment e/FS State FS ment e/FS ment e/FS ment e/FS e
ment
Limited

National 473.27 477.76 -4.49 103.0 103.0 0.00 36.10 36.17 -0.07 28.45 113.16 -84.70 666.35 586.0 80.32 82.39 82.22 0.17 612.4 616.9 -
Housing & 4 4 4 1 7 4.56
Constructi
on
Company
Limited
Uganda 74.80 0.27 74.52 0.00 74.43 - 0.00 0.00 0.00 59.98 59.98 0.00 28.55 28.55 0.00 13.74 13.83 -0.10 74.80 74.70 0.10
Energy 74.43
Credit
Capitaliza
tion
Company
Uganda (6.35) (6.39) 0.04 19.49 19.49 - 75.07 75.07 - 64.99 62.95 2.04 50.54 50.54 - 27.32 25.32 (2) 88.21 88.17 (0.0
Post 4)
Limited
Uganda (72.9) (69.85 (3.05) 974 1,186. (212. 188.1 - 188.1 860.73 531.75 (329) 242.02 587.9 (345.9) 13.54 3.03 (10.5) 1,089. 1,116 (27.
Developm ) 5 5) 6 2 .7 5)
ent
Corporati
on
Uganda 24.98 24.98 - 15.52 15.52 - 255.8 255.8 - 6.84 6.84 - 291.4 291.4 - 1.89 1.89 - 296 296 -
Property
Holdings
Limited
Uganda (1,040.7) (1,016. (24.2) 1,969. 1,872. 96.8 - - - 167.7 71.92 95.78 910.16 999.3 (89.17) 149.21 215.1 (65.9 928.6 856.0 72.5
National 5) 4 6 3 7 6) 5 8 7
Airlines
Co. Ltd.

314
Appendix 3: Procurement budgets for entities on e-GP
SN Entity Amount (UGX)
1 Ministry of Water & Environment 4,130,671,472,219
2 Ministry of Works & Transport 2,716,956,941,419
3 Ministry of Energy & Mineral Development 1,030,981,888,451
4 Ministry of Agriculture, Animal Industry & Fisheries 485,752,084,436
5 Kampala Capital City Authority 317,791,512,978
6 Parliament of Uganda 227,004,893,988
7 Uganda Civil Aviation Authority 220,625,021,787
8 Ministry of Finance, Planning & Economic Development 204,482,063,199
9 National Social Security Fund 200,522,889,984
10 Ministry of Health 188,234,752,422
11 Directorate of Citizenship and Immigration 110,011,584,978
12 Office of the President 91,033,942,000
13 Ministry of Education & Sports 77,777,630,108
14 Ministry of Information, Communications Technology & National Guidance 75,761,511,922
15 Office of the Prime Minister 58,699,018,170
16 Ministry of Local Government 52,804,123,966
17 Ministry of Tourism, Wildlife & Antiquities 48,007,111,396
18 Ministry of Trade, Industry & Cooperatives 34,951,667,398
19 Uganda National Bureau of Standards 34,186,000,000
20 National Planning Authority 34,169,085,660
21 National Information Technology Authority-Uganda (NITA-U) 32,905,669,822
22 Directorate of Public Prosecutions 32,771,271,654
23 Uganda Registration Services Bureau 27,545,960,381
24 Ministry of Land, Housing & Urban Development 25,991,154,241
25 Mpigi District Local Government 18,259,175,840
26 Ministry of Kampala Capital City & Metropolitan Affairs 16,430,450,000
27 Uganda Institute of Information & Communication Technology 14,124,293,659
28 Ministry of Justice & Constitutional Affairs 13,407,626,316
29 Ministry of Gender, Labour & Social Development 10,594,476,500

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SN Entity Amount (UGX)
30 Public Procurement & Disposal of the Public Assets Authority 10,494,275,928
31 Mukono District Local Government 8,507,683,827
32 Ministry of Public Service 8,386,629,606
33 Ministry of Foreign Affairs 8,000,839,614
34 Ministry of Internal Affairs 6,851,600,003
35 Jinja District Local Government 5,199,031,189
36 Ministry of East African Community Affairs 4,723,490,000
Total 10,584,618,825,061

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Appendix 4: Details of other procurement Observations
SN Entity Unplanned Split Irregular Failure to Delayed procurement Procurements
Procurements Procurement Initiation Carry out processes without
Market Performance
Assessments Security
No Value No. Value No. Value No. Value No. Value Delays No. Value
(UGX) (UGX) (UGX) (UGX) (UGX) (Months) (UGX)
Bn Bn Bn Bn Bn Bn
1 Amudat DLG 4 0.65
2 Butebo DLG 3 0.01 3 0.04 2 0.04
3 Education Service Commission 4 0.59
4 Financial Intelligence Authority 1 0.13 4 1.77
5 Ibanda DLG 15 1.12
6 Kabale DLG 2 1.42
7 Kanungu DLG 19 1.64
8 Law Development Center 17 5.2
9 Microfinance Support Centre 2 0.14
10 Ministry of Energy and Mineral Development 9 31.66
11 Ministry of Finance, Planning and Economic Development 3 16.2
12 Ministry of Tourism Wildlife and Antiquities MoTWA 5 13.97
13 Ministry of Trade, Industry and Cooperatives MoTIC 1 6.06 1 6.2
14 Moroto DLG 5 0.64
15 Mountains of the Moon University 3 1.47
16 Muni University 2 10.9
17 Napak DLG 2 0.11 2 0.36
18 National Agricultural Research Organization NARO 20 26.09 6
19 National Oil Palm Project 4 11.1 5
20 National Population Council (NPC) 2 0.04
21 Office of the President 6 2.5 7
22 Presidential Initiative On Banana Industrial Development 6 2.09 3
23 Rukiga DLG 8 3.69
24 Soroti RRH 1 0.051
25 Uganda Broadcasting Corporation 8 0.25
26 Uganda Bureau of Statistics 1 2 2 91.74
27 Uganda Communications Commission 3 6.41
28 Uganda Petroleum Institute -Kigumba 6 0.82 9 5.26
29 Uganda Retirement Benefits Regulatory Authority 1 0.1
30 Uganda Revenue Authority 4 7.01 5 0.29 5 0.34
31 Uganda Wildlife Research and Training Institute 2 0.14
32 Wakiso DLG 1 0.69
33 Ministry of Internal Affairs 4 668.05 3
Total 32 45.88 19 2.4 15 38.57 70 21.091 42 801.57 29 19.47

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ANNEXURES
Annexure 1: Summary of Entity Findings for MDAs and Projects

Entity Name Programme Name Opinion Summary of Key Findings

I noted that;
Office of the Prime Development plan Unqualified i) The Ministry had verified stock of outstanding commitments
Minister (OPM) implementation amounting to UGX.1.19Bn at the year-end.
ii) The Ministry paid UGX.525Mn to Uganda Veterans Assistance Board
Governance and instead of the budgeted and approved UGX.500Mn, leading to an
security excess payment of UGX.25Mn.
iii) A review of the disaster risk management plan revealed that a
Natural resources, number of recommendations have not yet been implemented.
environment, climate iv) By the end of the financial year, OPM had paid UGX.2.74Bn to 274
change, land and land slide victims; however, UGX.30Mn bounced, and a balance of
water UGX.9.34Bn remained unspent.
v) The bank deducted bank charges amounting to UGX.5.49Mn from
Regional balanced the land slide victim beneficiary accounts contrary to the signed MoU.
development vi) There were challenges in resettlement of landslide victims. Out of the
271 beneficiaries who received funding, a total of 224 land slide
victims were transferred to Bulambuli District without land despite
receiving UGX.10Mn each for construction of houses.
vii) Most of the beneficiaries had diverted the UGX.10Mn meant for
construction of houses.
viii) The land on which the victims were to be resettled lacked basic
social services like roads, electricity, schools and health facilities.
ix) There was poor hygiene and sanitation in the temporary camp where
the victims had been temporarily settled as the toilets were all full.
x) The affected persons on Apaa Game Reserve had not yet been
compensated and UGX.2.5Bn was still held on the Ministry’s
Centenary Bank account.
xi) OPM has not taken possession of 200 acres of land procured in
Kasese and the land is susceptible to future ownership claims from
third parties.
xii) OPM budgeted to transfer UGX.7Bn to URCS as per the approved
budget estimates however, only UGX.2.95Bn (42%) was released out
of which UGX.2.7Bn was remitted. The balance of UGX.0.25Bn was
transferred back to the consolidated fund at the closure of the
financial year.

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 xiii) A review of the Ministry’s approved structure revealed that out of the
400 positions approved, only 239 (60%) were filled, leaving 161
(40%) posts vacant.
xiv) There was a shortfall of UGX.58.3Bn on the Ministry’s approved
budget and this affected implementation of planned activities.
xv) OPM did not utilise UGX.1.957Bn which further affected
implementation of planned activities.
xvi) Out of the six (6) outputs with 31 activities worth UGX.1.9Bn
assessed, three (3) outputs with 20 activities worth UGX.1.1Bn were
fully implemented while three (3) outputs with 11 activities worth
UGX.0.8Bn were partially implemented.
xvii) There were average delays of three (3) months on the
implementation of four (4) projects worth UGX.2.36Bn.
xviii) I undertook a special audit of the pension payroll, and a separate
report was issued.
xix) Out of the 29 recommendations issued in the Treasury Memoranda,
12 were fully implemented, five (5) were partially implemented, while
12 were not implemented.
xx) The Ministry implemented two (2) Donor-Funded projects during the
year under review which were all audited by my Office and separate
reports issued.
Ministry of Agro-industrialization Unqualified i) The Ministry had an increase of 38% in domestic arrears from
Agriculture, Animal UGX.19.47Bn in 2022/2023 to UGX.26.89Bn in 2023/2024.
Industry and
Fisheries (MAAIF) ii) Out of the total staff establishment of 967 positions, only 653 (67%)
positions were filled leaving 314 vacant posts including key positions
such as Commissioner, Assistant Commissioner, Principal Officers
and Senior officers among others.

iii) The Ministry is undertaking constructions at Buwama and Bunghokho

mechanisation centres which were incomplete by the time of
inspection in November 2024, the sites appeared abandoned and the
land was encroached on.

iv) Funds amounting to UGX.1.04Bn were irregularly diverted from

budgeted activities without obtaining the necessary approvals.

v) There were several shortcomings in the implementation of PDM

activities such as lack of an approved budget leading to diversion of

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 UGX 0.27Bn to fund coordination activities, lack of a working Group
activity implementation plan and failure to review operational
guidelines.

vi) There were shortcomings in the procurement function which include;

Failure to align the procurement plan to the approved budget, delays
in procurement processes, delays in contract implementation and
failure to recover liquidated damages.

vii) The Ministry did not prioritise the following mandate activities;
designing, developing and maintaining a national information base,
mobilizing financial and technical assistance for the development of
the sector, maintaining effective national platforms for engagement,
and regulation of the use of agricultural chemicals.

viii) The Ministry had a shortfall of UGX.76.1Bn representing a 76.3%

performance leading to non-implementation of several planned
activities.

ix) The Ministry did not absorb UGX.11.5Bn meant for payment of
outstanding pension & gratuity arrears, contract staff salaries for
projects that did not commence, unutilised salaries and training of
staff on quality assurance systems and processes.

x) The Ministry paid UGX.5.40Bn beyond the appropriated amount of

UGX.0.344Bn for settlement of domestic arrears.

xi) I assessed 26 outputs with 115 activities worth UGX.127Bn and

noted that 8 outputs with 27 activities worth UGX.6.73Bn were fully
implemented, while eighteen (18) outputs with 88 activities worth
UGX.119.6Bn were partially implemented.

xii) Seven (7) projects worth UGX.41.6Bn had average delays of 5

months from the expected completion dates.

xiii) There were shortcomings in the implementation of the FMD

intervention such as; inadequate funding of the contingency budget
of UGX.58.146Bn, non-utilization of UGX.0.939Bn that was meant for
allowances of district officers, and procurement of 240 refrigerators

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 and freezers instead of the refrigerated containers approved by
Cabinet.

xiv) I undertook a special audit of the pension payroll that covered a

period from FY 2019/20 to 2023/24 and a separate report was
issued.

xv) I undertook two (2) value for money audits on; the uptake of
improved crop varieties/technologies and the impact evaluation of
the Micro-Scale irrigation programme under the Uganda
Intergovernmental Fiscal Transfer Program (UgIFT) and issued
separate reports.

xvi) I undertook a follow-up audit on the status of Implementation of

audit recommendations on the Value for Money audit on the
Implementation of the Vegetable Oil Development Project (VODP)
and issued a separate report.

xvii) I undertook an audit of three (3) Treasury Memoranda on the

reports of the Public Accounts Committee on the Auditor General’s
reports for the financial years 2014/15, FY 2015/16 and FY 2020/21
and noted that out of the 70 recommendations issued, 16 were fully
implemented, 27 were partially implemented while 27 were not
implemented.
Kampala Capital City Agro-industrialization Unqualified i) The Authority’s domestic arrears increased by 192% from
Authority (KCCA) UGX.79.39Bn in 2022/23 to UGX.231.71Bn in 2023/24.
Community ii) Out of 1,800kms of roads, only 595kms were maintained under the
mobilization and URF arrangement due to repurposing of funds to pay for domestic
mindset change arrears. Furthermore, the planned 2km drainage and bridge works
were not undertaken.
Development plan iii) The funding for URF reduced by 59% from UGX.24.14Bn in FY
implementation 2022/2023 to UGX.10Bn in 2023/2024.
iv) Out of the approved 1,424 positions, only 838 (59%) were filled,
Digital leaving 586 vacant.
transformation v) Twenty-seven (27) parcels of land with no definite measurements
and values had encumbrances in form of court injunctions.
Human capital vi) The Authority lacked equipment and a leachate treatment plant to
development manage solid waste in Kampala and consequently UGX.1.54Bn was
spent on hiring equipment.

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Integrated transport vii) Following the Kitezi disaster, KCCA put in place measures to ensure
infrastructure and better solid waste management in the City and the surrounding
services areas however, land in Ddundu Mukono had not been accessed,
funding of UGX.4.92Bn for disaster response had not been utilised
Natural resources, while the temporary dumping sites at Nkumba and Katikolo lacked
environment, climate the capacity to handle the volume of waste collected in Kampala.
change, viii) Inspections carried out at Kitezi revealed that despite the
Land and water interventions undertaken by KCCA, the residents who were
compensated had returned in spite of the cracks developing in the
Public sector various landfill spots.
transformation ix) The e-GP system is not being fully utilised due to system breakdown,
inability to seek Solicitor General’s clearance online and inability to
Tourism undertake partial initiation of call off orders on the system.
development x) It took an average of 117 working days from receipt of the
development application to making a decision (approve/reject/defer)
by the Physical Planning Committee (PPC) following the
recommendation by the Technical Review Team (TRT).
xi) The Technical Review Team took an average of 132 working days to
advise PPC on the decision taken on an application.
xii) Only 22 PDM activities out of the 59 that were received from the five
(5) divisions were incorporated in KCCA’s budget and work plan.
xiii) The Authority received UGX.117.6Mn for payment of Parish Chiefs’
allowances out of which UGX.114Mn (97%) was spent leaving a
balance of UGX.3.6Mn.
xiv) 49 PDM SACCOs had disbursed UGX.9.36Bn (89%) out of
UGX.10.48Bn received from MoFPED for onward lending leaving a
balance of UGX.1.12Bn (11%) undisbursed.
xv) I noted that 20 PDM SACCOs did not have the production,
marketing, business development services, finance and investment
sub-committees.
xvi) The Authority had not adequately executed four (4) of its mandated
activities.
xvii) The Authority had an approved budget of UGX.339.86Bn, out of
which UGX.339.71Bn (99.9%) was warranted, resulting in a shortfall
of UGX.152.23Mn which affected implementation of planned
activities.
xviii) Out of the UGX.339.71Bn warranted, only UGX.338.05Bn (99.5%)
had been utilised leaving a balance of UGX.1.66Bn, which affected

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 implementation of activities.
xix) Out of 15 outputs assessed, eight (8) outputs with 15 activities
worth UGX.7.89Bn were fully implemented while seven (7) outputs
with 26 activities worth UGX.11.93Bn were partially implemented.
xx) There were delays in the implementation of five (5) projects worth
UGX.3.967Bn of three (3) months on average.
xxi) The Authority had outstanding arrears of UGX.79.39Bn however,
only UGX.69.26Mn was budgeted and released, which led to under
budgeting by UGX.79.33Bn. In addition, UGX.49.88Bn was spent
from the current year budget to settle domestic arrears.
xxii) Funds amounting to UGX.1.890Bn were irregularly diverted from the
budgeted activities without the necessary approval.
xxiii) I undertook a special audit of the pension payroll for the financial
years 2019/2020 to 2023/2024 and issued a separate report.
xxiv) I conducted a Value for Money (VFM) audit of infrastructure projects
implemented by KCCA, one of the entities participating in the GKMA
Program and issued a separate report.
xxv) I conducted an audit of the Treasury Memorandum for KCCA on
Report of the Public Accounts Committee on Commissions, Statutory
Authorities and State Enterprises for the financial year 2020/21 and
noted that out of the 14 recommendations issued; seven (7)
recommendations were fully implemented, two (2) recommendations
were partially implemented while five (5) recommendations were not
implemented.
xxvi) The Authority implemented five (5) Donor-Funded projects during
the year under review which were all audited by my Office and
separate reports issued.
Kampala City Roads Integrated transport Unqualified i) Out of the expected total disbursement of USD.288Mn, only
Rehabilitation infrastructure and USD.59.16Mn (20%) was disbursed which affected implementation
Project (KCRRP) services of activities.
ii) Out of the cumulative disbursements of USD.59.16Mn, USD.54.5Mn
Public Sector (92%) was absorbed as at 30th June 2024. The balance of
Transformation USD.4.66Mn was held on the project bank accounts in Bank of
Uganda.
iii) I sampled three (3) activities worth UGX.208.51Bn and noted that
targets for one (1) activity worth UGX.15Bn had been fully achieved
while targets for the remaining two (2) activities worth
UGX.193.51Bn were not yet achieved.

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iv) There was no key staff of the main consultant for package one roads
such as a director and resident engineer, all supervising consultancy
works were being executed by the local consultant.
v) The Consultant completed and submitted the final design review
reports for Lots 1 and 2 in March 2024, but these were not yet
approved by KCCA at the time of my report.
vi) There was a delay paying all local staff working with the supervising
consultant for package 2 road by six months. This affected their
livelihoods and demotivated the workers.
vii) The final design review report for lots 3, 4 and 5 civil works had not
been completed and submitted by the consultant to the KCCA and
the AfDB which affected progress of works.
viii) Progress of works for Lot 1 stood at 95% against a planned 115% of
the contract with a slippage of 20% and a duration of 65% of time
lapsed on the contract.
ix) Three (3) out of nine (9) roads were handed over to the KCCA
pending installation of streetlights and temporary signage, road
markings, road cleaning and tree planting and completion of
walkways. The remaining six (6) roads faced challenges of
acquisition of Right of Way, large sewer lines passing through the
carriage ways among others which affected progress of works.
x) The progress of Lot 2’s works stood at 29.76% against a planned
level of 55% with a slippage of 25.24% and a duration of 65% of
time lapsed on the contract. The contractors faced challenges of
acquisition of Right of Way, relocation of utility lines among others
which affected progress of works.
xi) The progress for Lot 3’s works stood at 23.21% against a planned of
32.32% of the contract with a slippage of 9.11% and a duration of
65.39% of time lapsed on the contract. The contractor faced
challenges of drainage, and many of the workers whose contracts
had expired which affected progress of works.
xii) The progress for Lot 4’s works stood at 7.4% against the planned
20.26% of the contract with a slippage of 8.8% and a duration of
65% of time elapsed on the contract. The works on major road
junctions were yet to commence, the contractor faced challenges of
obtaining the Right of Way and was not observing Environmental,
Health and Safety (EHS) measures.
xiii) The progress of Lot 5’s works stood at 21.89% against a planned of

324
 56.19% of the contract with a slippage of 34.30% and a duration of
54.52% of time lapsed on the contract. There were delays in
completing works on the drainage channels on various roads and
works on tow junctions were yet to commence. There were also
other anomalies on the completed works such as untrained inlets to
box culverts, dumping of construction waste near the sentema-
Mugema Junction, among others.
xiv) I noted anomalies such as absence of embankment protection and
warning tape at Salaama road pipe culvert works, absence of
designated crossing areas with flagmen on Kayemba road, Open
manholes without warning signs and warning tape on Eighth Street,
unbent iron bars surrounding the open manholes on Eighth Street,
among others.
xv) The Project Implementation Team (PIT) lacks a budget to facilitate
essential administrative functions and procure requisite equipment
such as; laptops, printers, stationery and other tools necessary for
effective project execution.
xvi) The project procured a consultant to provide consultancy services for
Resettlement Action Plan (RAP) worth UGX.1.6Bn and consultancy
services for RAP of two (2) drainage channels worth UGX.1.99Bn
without professional indemnity.
xvii) The project had not registered and mutated land acquired from PAPs
into the names of the Uganda Land Commission as required.
xviii) The project had no budget allocation to facilitate the activities of
Grievance Management Committees (GMCs) such as sitting
allowances for members, logistics for grievance resolution meetings
and stakeholder engagement sessions.
xix) KCCA had a partially constituted overall Grievance Management
Committee (GMC). The Committee lacked representatives from the
Project Implementation Team, the contractors, insurance companies
and the community leaders as required by project governance
framework.
xx) The asphalt machines worth UGX.2.47Bn procured in April 2024 had
not been utilised because KCCA had not trained its staff and lacked
capacity to operate the machines.
xxi) Heavy equipment purchased under the KCRRP valued at UGX.14.8Bn
was not insured, rendering the equipment vulnerable to loss or
damage.

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Treasury Operations Development Plan Unqualified i) Payables increased by 50% from UGX.6.144Tn in the financial year
(TOP) Implementation 2022/2023 to UGX.9.240Tn in 2023/2024.
ii) Invoices worth UGX.8.313Tn remained unfunded by the close of the
financial year.
iii) Out of the revised budget of UGX.22.628Tn, UGX.20.579Tn (91%)
was warranted, leaving an unwarranted budget of UGX.2.048Tn.
iv) Out of the warranted amount of UGX.20.579Tn UGX. 16.823Tn was
spent representing 81.75% of the funds warranted.
v) Supplementary funding amounting to UGX.2Tn was not warranted
defeating the purpose for which the funds were appropriated.
vi) The total public debt as at 30th June 2024 was UGX.93.607Tn, of
which UGX.39.159Tn was Domestic Debt Stock while 54.449Tn was
External Debt Stock.
vii) The country’s external debt stock increased by 40% from
UGX.38.917Tn in FY 2019/20 to UGX.54.449Tn in FY 2023/24.
viii) During the year, Treasury requested BoU to switch Bonds totalling to
UGX.0.684Tn, which resulted in the accumulation of accrued interest
amounting to UGX.1.547Tn.
ix) A total of UGX.1.301Tn was borrowed from the domestic market on
the 8th February 2024 using private placement.
Uganda Bureau of Development plan Unqualified i) A comparison of the strategic and annual work plans for the last
Statistics (UBoS) implementation three (3) years with the mandate as stipulated in relevant laws
revealed that the entity had not adequately fulfilled its mandate.

ii) The entity had an initial budget of UGX.249.298Bn for its activities
including conducting the National Population and Housing Census.
The budget was inadequate which resulted in to request for
supplementary funding of UGX.147.294Bn, revising the budget to
UGX.396.592Bn.

iii) Out of the total budget of UGX.396.592Bn, UGX.394.278Bn (99%)

was spent.

iv) I assessed the extent of implementation of 15 outputs with 212

activities worth UGX.372Bn. I observed that Six (6) outputs with 83
activities worth UGX.174Bn were fully implemented, eight (8) outputs
with 121 activities worth UGX.196Bn were partially implemented,
while one (1) output with eight (8) activities worth UGX.1.9Bn was

326
 not implemented.

v) The Bureau did not absorb UGX1.505Bn of donor funding implying

non-implementation of planned activities.

vi) An error was detected in the Provisional Report of the census and the
results were recalled indicating that the final report containing
comprehensive statistical data and information from the Census
would be issued in December 2024. This is in line with International
Industry Practice.

vii) The Bureau disclosed prepayments and advances of UGX.4.7Bn

relating to census funds advanced to Districts, Cities and Kampala
City Divisions that remained unaccounted for by the close of the
financial year.

viii) At the end of the financial year, there were payables amounting to
UGX3.42Bn, due to Census Enumerators, supervisors, guides, and
suppliers.
Ministry of Defence Governance and Unqualified i) Out of the total expenditure for the year of UGX.4.06Tn, expenditure
and Veteran Affairs Security amounting to UGX.1.99Tn (49%) was classified and therefore
(MoDVA) audited and reported on separately.
ii) Eighteen (18) procurements worth UGX.38.11Bn took an average of
seven (7) months from initiation to contract signing which affected
the achievement of planned activities.
iii) Management excluded the requirement for performance security in
14 contracts worth UGX.27.46Bn which exposes the entity to a risk
of under or non-performance by the contractors.
iv) The Ministry did not absorb UGX.0.54Bn that was meant for pension
and gratuity for non-uniformed officers.
v) The Ministry’s work plans and budgets were not appropriately
quantified and costed to enable assessment of implementation of
planned activities.
vi) Six (6) projects worth UGX.152.42Bn had delays averaging four (4)
months from the expected completion date. This affected the
achievement of the Ministry’s planned activities.
vii) Two (2) projects worth UGX.0.628Bn were not functional despite
being completed, which affected service delivery.
viii) At the time of inspection in October 2024, which was four (4) years

327
 after the expected completion date of the UPDF National Referral
Hospital, the project was not complete, with stalled works in some
areas.
ix) The Ministry amended the original contract for the procurement of
assorted medical equipment for UPDF National Referral Hospital
without the necessary approvals. In addition, a variation request of
UGX.29.67Bn was awarded to the contractor without obtaining
Solicitor General’s approval.
x) The contract for the supply of Medical Equipment for the UPDF
National Referral Hospital was signed in the FY 2020/2021. However,
by the time of my report (December 2024), the delivered items had
not yet been installed since works were still on-going. The Ministry
was incurring warehousing and insurance costs for the storage of
the equipment.
xi) I undertook a special audit of the pension payroll that covered a
period from FY 2019/20 to 2023/24 and issued a separate report.
xii) Out of 44 recommendations given by Parliament on two (2) Treasury
Memoranda of central Government for the FYs 2014/15 and
2020/21, 12 recommendations were fully implemented, 14 were
partially implemented, while 18 were not implemented at all.
Directorate of Ethics Community Qualified i) Funds amounting to UGX.201.7Mn were irregularly diverted from
and Integrity (DEI) mobilization and budgeted activities and spent on other activities without seeking and
mindset change obtaining the necessary approvals.
ii) The entity did not account for UGX.294.4Mn relating to IMF
Governance and Structural Benchmarking funding by the time of the audit.
Security iii) Out of the approved staffing level of 153, the Directorate has only 66
(43%) positions filled, leaving a staffing gap of 87 (57%).
iv) A sum of UGX.1.349Bn which could have been paid directly to the
intended beneficiaries was paid to staff personal accounts.
v) The evaluation of 13 bids amounting to UGX.0.217Bn reviewed did
not adhere to evaluation criteria.
vi) Review of 30 procurements worth UGX.2.166Bn revealed that the
Accounting Officer did not appoint contract managers.
vii) Procurement delays at various stages were noted for procurements
with a total value of UGX.1.293Bn.
Ministry of Health Human Capital Unqualified i) The Ministry’s domestic arrears increased from UGX.6.796Bn in FY
(MoH) Development 2020/21 to UGX.72.878Bn in the FY 2022/23 (representing 972.4%
increase) with a slight decrease of 9.6% in the year under review.

328
 ii) UGX.17.133Bn was transferred to the Hospital (Emergency – Life
support for Civilian War Victims) as financial contributions to annual
running costs of the project. However, whereas the Monitoring and
Evaluation procedures required MoH and the MoFPED
representatives to verify the expenditures related to the
government contributions through audit visits, I was not provided
with supervision reports for audit verification.
iii) Whereas the Ministry has an internship committee that manages
the placement of interns, it does not have a formal policy on
medical internships. The available policy is still in draft form.
iv) The Ministry conducted 391 procurements worth UGX.31.418Bn
during the FY 2023/24. Despite the high utilization of the e-GP
system, 4 procurements worth UGX.0.680Bn were conducted
outside the system. I also noted that the Ministry initiated 21
procurements worth UGX. 0.276Bn for the supply of laptops,
desktops, mini-computers and printers instead of making a single
procurement. None of the sampled procurements made through
the e-GP system had scanned signed contract documents
uploaded.
v) I assessed the management of Parish Development Model (PDM)
and noted that the Ministry only aligned 2 out of the 5 pillar
working group activities in the annual work plan.
vi) I carried out an assessment of the formulation of policies and
legislation in accordance with the mandate of the Ministry and
noted that several Bills were at various stages of development and
approval. The Ministry was still conducting consultations with
stakeholders to discuss the Principles of the Bill for the Health
Professional Council Authority Bill, 2021 and Assisted Reproductive
Health Bill, 2022.
vii) Legislations such as the Public Health (Amendment) Act, 2021, The
Mental Health Act (2019), The Uganda Human and Organ
Transplant Act, 2022, Traditional and Complementary Medicine Act,
2019 and the HIV Prevention and Control Act, 2014 were being
implemented without relevant regulations.
viii) There were laws that required review and update to identify key
gaps in improvement and implementation and these included; The
Uganda Cancer Institute Act, 2016, Uganda Heart Institute Act,
2016, The Tobacco Control Act, 2015, The Occupational Safety

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 Health Act, 2006, The Medical and Dental Practitioners Act, The
Allied Health Professionals Act, 1996 and Nurses and Midwives Act,
1996.
ix) The following policies required review and update; Community
Health Extension Workers National Policy, 2018, National e-Health
Policy 2016, National Medicines Policy, 2015, Uganda National
Malaria Control Policy. 2011, National Child-Focused Policy
Research Agenda (2016–2020), Uganda Human Resources for
Health Policy, 2006, National Policy on Public Private Partnership in
Health, 2012, Adolescent Health Policy for Uganda, 2004, Uganda
Food and Nutrition Policy, 2003 and Uganda Sanitation and
Hygiene Policy, 1997.
x) The Ministry had an approved budget of UGX.242.543Bn out of
which UGX.216.017Bn (89%) was warranted resulting in a shortfall
of UGX. 26.527Bn. The shortfall related to payment of contract
staff salaries, payment of allowances, Procurement of medical
supplies and services, upgrade of 43 health centers among others.
xi) Out of the total warrants of UGX.216.017Bn, UGX.214.229Bn was
utilised leaving a balance of UGX.1.782Bn which was meant for
activities such as employee costs like salaries, allowances,
contributions to NSSF, payment of gratuity, acquisition of furniture
and fittings.
xii) I assessed the extent of implementation of outputs/activities and
noted that Eight (8) outputs were fully implemented while ten (10)
outputs were partially implemented.
xiii) The Ministry did not prioritize planned activities like setting up 12
regional ambulance hubs with ambulance spots in all Health sub-
districts, establishing and functionalizing a centre of excellence for
trauma at national level (Paediatric Surgical Hospital, CUFH
Naguru), construction of General Hospitals in Rubaga Division and
Wakiso District and construction of 2 blood banks in Soroti and
Jinja
xiv) The Ministry had only acquired 276 (53%) of the required 516
ambulances for delivery of EMS services leaving a gap of 240
(47%).
xv) There was underutilisation of the medical equipment procured
during the Covid 19 period, particularly in Entebbe RRH and Kisenyi
HCIV. Physical inspection of three (3) ambulances stationed at the

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 Naguru Trauma Dispatch and Call centre revealed that some of the
equipment in the road ambulances such as oxygen humidifiers and
air conditioning systems were non-functional while other equipment
was missing. I also noted that the Ministry only received UGX.1.8Bn
out of the required UGX.20Bn for maintenance.
xvi) Maintenance of Ministry vehicles and ambulances is not entirely
funded by the Government of Uganda (GoU). Instead, it relies on
multiple sources such as UCREPP, the Global Fund, and CDC.
xvii) I undertook a special audit of the pension payroll and issued a
separate report.
xviii) The Ministry implemented ten (10) Donor-Funded projects during
the year out of which nine (9) projects were audited and separate
reports issued. One will be audited in January 2025.
Ministry of Internal Governance and Unqualified i) A review of the progress of implementation of the rationalisation of
Affairs (MIA) Security the NGO-Bureau revealed that MIA had not yet developed a
customized strategy while the future of the temporary staff remained
uncertain. The counselling and retirement training support for staff
was not provided.

ii) The Ministry had a budget shortfall of UGX.0.8Bn which was meant
for acquisition of computers, printers and photocopiers, procurement
of assorted furniture, baggage scanners and renovations of the
Amnesty Commission building.

iii) Five (5) activities worth UGX.0.5Bn were partially implemented,

while three (3) activities worth UGX.0.2Bn remained unimplemented,
even when the funds required for implementation were released.

iv) There has been a 12% decrease in the number of community service
orders issued, from 16,605 orders in FY 2021/22 to 14,593 in FY
2023/24. This implies that the objective of reduced congestion in
prisons through the utilisation of the non-custodial sentencing option
may not be achieved.

v) Whereas the District Community Service Committees are operational

in 143 districts, only 82 District Community Service Committee
meetings were held in 56 districts (representing a coverage of 39%).

vi) Trafficking of persons has generally been increasing which poses a

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 security threat to Uganda’s residents, results in exploitation, and
increases vulnerability and public outcry.

vii) The government does not have shelters for victims of trafficking.
Instead, the victims are kept in police cells or remand homes for
children, even though the victims of trafficking in persons are not
offenders of the law.

viii) The Coordination Office for Prevention of Trafficking in Persons at

the Ministry of Internal Affairs faces challenges in repatriating
trafficked migrant workers due to workers securing jobs in countries
where Uganda does not have bilateral agreements.

ix) Four (4) planned procurements worth UGX.237.92Mn were

completed off the EGP system.

x) Four (4) procurements worth UGX.668.05Bn took on average, three

(3) months from initiating a procurement process to contract signing

xi) I undertook a special audit of the pension payroll that covered a

period from FY 2019/20 to 2023/24 and issued a separate report.

xii) I undertook an audit of the two (2) Treasury Memoranda on the

Parliamentary resolutions on the reports of the Public Accounts
Committee - Central Government on the report of the Auditor
General for FY 2015/16 and FY 2020/21 and noted that out of the 22
recommendations given by Parliament, 12 were fully implemented,
eight (8) were partially implemented while two (2) were not
implemented.
Ministry of Finance, Private Sector Unqualified i) A comparison of the entity’s strategic and annual work plans for the
Planning and Development last three (3) years revealed that the Ministry had not adequately
Economic executed its mandate. For example, the Ministry targeted to achieve
Development GDP growth of 6 to 7% annually by 2024/2025, however, the GDP
(MoFPED) growth has averaged 3.7% over the Strategic Plan period for
2020/21 to 2024/25.
ii) The entity had an approved budget of UGX.2.677Tn out of which
UGX.2.388Tn (89%) was warranted resulting in an unwarranted
amount of UGX.289Bn.
iii) The Ministry had outstanding obligations in respect of tax incentives

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 granted by the Government to spur industrial growth amounting to
UGX.713Bn at the beginning 2023/2024 and an additional
UGX.480Bn was incurred during the year. The Ministry’s Top
Management decided to transfer Tax arrears of UGX.713Bn to Vote
130 Treasury Operations without appropriate policy and approval.
iv) There were delays in the completion of the Ministry building,
estimated to be 94% by the end of November 2024, leading to cost
escalations. The contract had been varied from UGX.44.2Bn to
UGX.93.799Bn.
v) The Financial Inclusion Pillar Operations Manual under PDM was
neither reviewed nor proposals made for amendments to the
manual.
vi) The Pillar Working Group budget and work plan did not prioritize the
budgets and work plans to accommodate PDM-related activities
contrary to the guidance provided.
vii) 123 Parishes did not get PDM disbursements despite being gazetted
by the Ministry of Local Government (MoLG) in 2022.

xiii) The Ministry awarded a contract to a construction company using the

direct procurement method at UGX.9.3Bn for renovation works of the
Finance and Treasury buildings, including the Perimeter wall, and
UGX.2.787Bn was advanced to the contractor in June 2024.The
Ministry secured a letter of credit to UGX.5.233Bn set to expire on
31/12/2024, however, six months later, contract implementation had
not commenced.
INVITE Project in Private Sector Unqualified i) Out of the approved project budget of USD 30.175Bn, the project
MoFPED Development had only drawn USD.7.5Bn (24.7%).
ii) The Project utilized UGX.0.63Bn of the approved UGX30.175Bn
funding for the financial year leading to unimplemented activities.
Uganda Export Private sector Unqualified i) As a result of the RAPEX policy shift, UEPB ceased operations
Promotion Board development effective 30th September 2024, and its operations have been
(UEPB) merged into the Uganda Free Zones and Exports Promotions
Authority.
ii) Contrary to Section 5(a) of the UEPB Act Cap 81, the Board did not
maintain up to date price data to facilitate exporters in making
informed decisions.
iii) Out of the approved budget of UGX.8.2Bn, the total warrants for the
year amounted to UGX.6.9 (84%).

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 iv) The entity had total warrants of UGX.6.99Bn out of which
UGX.5.56Bn had been utilized by the close of the financial year. The
balance of UGX.1.41Bn was meant for partially or unimplemented
activities due to effects of the RAPEX.
Uganda Hotels and Tourism Unqualified i) Although the PS/ST exempted UHTTI from remitting funds to the
Tourism Training Development Consolidated Fund, there are still efforts put forward for the institute
Institute (UHTTI) to remit its Non-Tax Revenue to the Consolidated Fund.
ii) The Institute has a structure of 168 Approved positions out of which
106 (63%) are filled leaving 62 vacant positions.
iii) A significant gap was identified in the organization's training and
development resources, highlighting the necessity for a dedicated e-
learning platform.
iv) A comparison of the entity’s strategic and annual work plans and
budgets for the last three (3) years with the mandate as stipulated in
relevant laws revealed that the entity had not adequately executed
its mandate.
Uganda Investment Manufacturing Unqualified i) A comparison of the entity’s strategic and annual work plans for the
Authority (UIA) Private sector last three (3) years revealed that the entity had not adequately
development executed its mandate.
ii) The Authority’s receivables increased by 0.1% from UGX.21.418Bn
in 2022/2023 to UGX.21.443Bn.
iii) The Authority had outstanding payables of UGX.1.891Bn relating to
unpaid rent, goods and services consumed and property, plant and
equipment, which create a risk of litigation and penalties due to
payment delays.
iv) The approved structure provides for 113 staff positions, out of which
only 72 positions (64%) are filled, leaving a gap of 41 positions.
v) The Kampala Industrial and Business Park, Namanve (KIBP), located
in Namanve, is a 2,200-acre facility partly in Wakiso and Mukono
Districts. The land has been allocated to investors for development in
various sub-sectors such as Agro-processing, mineral processing,
ICT, logistics and freight, warehousing, general manufacturing, and
Tourism promotion activities. However, the business park cannot be
used optimally because of inadequate infrastructure.
vi) The Authority has 27,877.16 acres of land, valued at UGX.454.402Bn
based on the historical costs. However, the Authority has not valued
the land for over 10 years. There are disputes on some of the
Authority’s land.

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 vii) I noted a delayed realization of the Presidential Directive on
Industrial Parks implying delayed investments, which hinder the
country's attractiveness as an investment destination.
Ministry of Foreign Community Unqualified i) The Ministry’s position increased by 66% from UGX.42.15Bn in
Affairs (MoFA) Mobilization and 2022/23 to UGX.69.93Bn in 2023-24, out of which 98.6% related to
Mindset Change, contributions to international organizations. There was no budget
Development Plan allocation for settlement of payables during the year.
Implementation, ii) 23 Missions received UGX.12.81Bn from programmes for which
Governance and Missions have no contribution as per the NDP III.
Security & iii) From a sample of 12 Missions, management recruited 144 local
Manufacturing contract staff earning annual salaries amounting to UGX.14.07Bn,
without approval by the Permanent Secretary of MoFA.
iv) Uganda’s Embassy in Algiers was operating without local contract
staff which subsequently affected the operations of the Mission in
achieving its mandate objectives.
v) Seven (07) Missions paid out UGX.1.30Bn to the Mission/Embassy
officials travelling from their duty stations to undertake Mission
activities within the host country using rates for travel abroad to
cater for their allowances.
vi) Only 10 out of 38 Missions received capital development funding
amounting to UGX.51.67Bn in the FY 2023/24, despite urgent need
for capital development by the other 28 Missions.
vii) I reviewed the progress of on-going construction works and noted
that some projects were behind schedule.
viii) The Ministry does not have a policy on management of diaspora for
both in and out of the country.
ix) For the last four (4) years, the Ministry had planned to open Missions
in South Korea and Brazil as a way of promoting Uganda’s interests
in these regions, but these have not been opened due to funding
challenges.
x) The Ministry had an approved budget of UGX.30.46Bn, out of which
UGX.30.44Bn was warranted resulting in a shortfall of UGX.17Mn
meant for ICT equipment at Arusha Consulate.
xi) Out of the total warrants of UGX.30.44Bn, UGX.29.59Bn was utilized
leaving a balance of UGX.848Mn meant for gratuity, pension and
maintenance of equipment which activities were not implemented.
xii) The Ministry work plans uploaded in the Programme Budgeting
System (PBS) had costs at output level, but these were not

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 supported by activity costs.
xiii) Out of the sampled 23 outputs with 253 activities worth
UGX.28.59Bn, 10 outputs with 42 activities worth UGX.1.98Bn were
fully implemented while 13 outputs with 211 activities worth
UGX.26.61Bn were partially implemented.
xiv) I undertook a special audit of the pension payroll covering a period
from FY 2019/20 to 2023/24 of the ministry and issued a separate
report.
xv) I conducted an audit of the Treasury Memoranda on the Report of
the Public Accounts Committee for the financial years 2014/2015,
2015/2016 and 2020/2021 and noted that out of the 27
recommendations issued, four (04) recommendations were fully
implemented, nine (09) were partially implemented, while 14 were
not implemented.
Ministry of Trade, Agro- Unqualified i) UGX.1.165Bn was earmarked for renovation of office space at the
Industry and Co- industrialization, Ministry, was remitted to Management Training and Advisory Centre
operatives (MoTIC) Manufacturing & (MTAC), for utilisation as part of their Development Budget funding.
Private Sector ii) Planned procurements worth at UGX.2.45Bn were not implemented.
Development iii) A comparison of the entity’s strategic and annual work plans for the
last three (3) years revealed that the entity had not adequately
executed its mandate.
iv) Out of the approved budget of UGX.189.7Bn, the total warrants for
the year amounted to UGX.166.24Bn (87%) resulting in a shortfall of
UGX.23.45Bn.
v) I assessed the extent of implementation of 15 outputs with 112
activities worth UGX.26.16Bn and I observed that 4 outputs with 21
activities and expenditure of UGX.3.67Bn were fully implemented,
while 11 outputs with 91 activities worth UGX.9.42Bn were partially
implemented.
vi) I undertook a special audit on the utilization of the supplementary
budget for renovation funds for the FY 2021/2022 and included the
findings in the Ministry’s report for the year ended 30th June 2024.
vii) I undertook a forensic audit on the funds released from the Ministry
for Buyaka Growers Cooperative Society and issued the report to the
requester.
viii) I undertook a special audit of the pension payroll that covered a
period from FY 2019/20 to 2023/24 and issued a separate report.

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Uganda Post Limited Digital Qualified i) UPL reported Non-Current Assets amounting to UGX 93.817Bn,
(UPL) Transformation which significantly varies from the Chief Government Valuer’s
valuation, indicating a potential misstatement. It is also important to
note that the CGV did not value all the property.
ii) There were unresolved property disputes and contestation of
ownership of land that led to refusal by UTCL to pay rent for the
occupied office space and telephone masts, which led to UTCL owing
Posta over UGX.4.5billion in accumulated rent.
iii) The Company had accumulated payables of UGX.19.51Bn by the end
of 2023/2024 which creates a risk of litigation and payment of
penalties and fines arising from delayed settlement.
iv) The Company’s receivables reduced by UGX.1.3Bn from
UGX.15.78Bn in the year 2022/2023 to UGX.14.71Bn in 2023/2024,
which represents an idle asset that would have been put to use.
v) Out of the 252 positions in the staff establishment, 151 positions
(64%) were filled, leaving 100 vacant, including key positions such
as Manager Security and Investigations, Manager Finance, Head of
Mail and Commercial Services, among others.
Uganda Tourism Tourism Unqualified i) The entity had an approved budget of UGX.27.33Bn out of which
Board (UTB) development UGX.27.107Bn (99.18%) was warranted resulting in a shortfall of
UGX.0.223Bn.
ii) Out of the total warrants of UGX.27.10 Bn, UGX.26.453 Bn was utilized
leaving a balance of UGX.0.654Bn which affected the implementation
of planned activities.
iii) Analysis of annual budget for the FY 2023/2024 and the strategic plan
2020/21-2024/25 forecasts indicated a 37.25% variance in the
funding requirements for the year under review to implement
activities to deliver strategic planned objectives.
iv) Contrary to the requirements of the Tourism Act, Cap.82, the Board had
not yet established the Tourism Fund, leading to failure to meet its
intended goals.
National Population Community Unqualified i) NPC ceased operations effective 30th September 2024 as its
Council (NPC) mobilization and operations have been merged into the National Planning Authority
mindset change (NPA).
Human capital ii) A comparison of the entity’s strategic and annual work plans for the
development last three (3) years revealed that the entity had not adequately
executed its mandate.
iii) The entity recognized its historical tangible assets worth

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 UGX.1.549Bn for the first time which increased its total assets to
UGX.2.009Bn. The values were based on original historical costs
without revaluation.
iv) Out of the approved budget of UGX.12.024Bn, UGX.10.291Bn was
warranted, resulting in a shortfall of UGX.1.733Bn.
v) Out of UGX.10.291Bn warrants, 10.256Bn was utilized leaving a
balance of 0.034Bn.
vi) NPC operationalized the National Data Bank that was developed at a
cost of UGX8.474Bn in June 2024. However, the link to the databank
on the website that was to redirect users to the actual databank was
non-functional by the time of the audit.
Uganda Revenue Development Plan Unqualified i) Revenue collections increased by 16.5% and 8.5% in the financial
Authority (URA) implementation years 2022/2023 and 2023/2024 respectively.
ii) URA collected UGX.27.938Tn (93%) against a target of
UGX.29.856Tn for the financial year 2023/24 resulting in a revenue
shortfall of UGX.1.917Tn.
iii) As of June 2024, unpaid Government-related tax waivers amounted
to UGX.713.471Bn.
iv) There were 603 instances where motor vehicles had varying
information at IM4 and IM7; of these 27 vehicles had the years of
manufacture changed, 4 had their condition changed, 568 had
changes in price at the two different levels of clearance, while 3
vehicles had their chassis numbers changed at IM7 and IM4.
Uganda Revenue Development Plan Unqualified i) URA had a cash balance of UGX.46.6Bn as at 30th June 2023 on the
Authority (URA) implementation Expenditure Account, but only UGX.4.3 Bn was transferred to the
Corporate UCF implying utilization of expired appropriations of UGX.42.3Bn.

ii) URA had a cash balance of UGX.26.6Bn as at 30th June 2024 on the
Expenditure Account, but had not transferred any amount to the UCF
by 30th October 2024.

iii) The Authority operates a separate retirement benefits scheme,

making an additional contribution of 10% on each employee's salary
to this scheme resulting in a total Government contributing 20%
towards the retirement benefits of each employee which burdens the
Government's financial obligation for employee retirement benefits.

iv) URA has an old fleet of vehicles with high repair costs and requires

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 replacement to effectively and efficiently deliver its services.

v) URA’s bank accounts held in Stanbic Bank Limited were at risk of

being garnished as it was in the case of miscellaneous application
No. 641 of 2023.

vi) The Authority awarded multi-year contracts amounting to

UGX.53.9Bn without evidence of approval by the Parliament.

vii) I assessed the extent of implementation of 11 outputs with 52

activities worth UGX.617.7Bn and observed that Six (6) outputs with
17 activities were fully implemented, while five (5) outputs with 35
activities were partially implemented.
Ministry of Justice Governance and Unqualified i) I noted that 71 human rights awards, court awards, ex-gratia and
and Constitutional Security compensations ordered by courts worth UGX.1.976Bn remained
Affairs (MoJCA) unpaid for a period ranging from 2 years to over 10 years, which has
resulted in additional interest totaling to UGX.159Mn by the end of
the financial year 2023/2024.
ii) The Ministry may not be adequately prepared for the RAPEX, given
their lack of a clear and comprehensive strategy discussed and
agreed upon by the Commission’s Board, pending legal issues, and
transparency regarding managing human and other resources post-
merger and is therefore unlikely to anticipate and adequately
address the likely challenges.
iii) The Ministry had an approved budget of UGX.215.776Bn, out of
which UGX.205.727Bn (95%) was warranted, resulting in a shortfall
of UGX.10.051Bn. UGX.200.985Bn had been utilised by the close of
the financial year.
iv) I assessed the extent of implementation of activities for which funds
were availed and utilised and noted that eight (8) outputs with 39
activities and expenditure worth UGX.2.719Bn were fully
implemented while seven (7) outputs with 80 activities worth
UGX.37.022Bn were partially implemented.
v) I noted that the MoJCA installed mobile shelves and procured TVs for
the server room, but these items were not included in the year’s
procurement plan.
vi) While Government has adopted various programmes such as the
Peace Recovery and Development Plan (PRDP) and the Presidential
directives on monetary compensation of victims of war, there was no

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 assessment of the impact of the intervention of compensation of war
debt claimants even though UGX.119.829Bn had so far been paid
out to verified claimants.
vii) The Ministry’s procurement plan, extracted from e-GP was not
detailed as it presents a consolidated summary of procurement
subjects, listing only the total estimated amounts without specific
timelines, itemized needs, and resource allocations.
viii) There were on average 2 months’ delays at contract signing after
the Attorney General’s approval or after the removal date of the
best-evaluated bidder notice, which resulted from e-GP technical
challenges.
ix) I undertook a special audit of the pension payroll that covered a
period from FY 2019/20 to 2023/24 and issued a separate report.
x) I reviewed the extent of implementation of the Parliamentary
recommendations in the three Treasury Memoranda for the financial
years 2014/15, 2015/16 and 2020/21 and noted that out of 29
recommendations by Parliament, 10 were fully implemented, eight
(8) were partially implemented, while 11 were not implemented.
Uganda Police Force Governance and Unqualified i) UPF’s domestic arrears increased by UGX.14.135Bn from
(UPF) security UGX.98.81Bn in FY 2022/23 to UGX.112.953Bn in 2023/24, which
shows that the entity faces difficulties settling its outstanding debts.
ii) Funds amounting to UGX.1.170Bn meant for acquiring non-
residential buildings were irregularly diverted to vehicle
maintenance, repairs and feeding, without seeking and obtaining the
necessary approvals.
iii) UPF completed the construction of regional mechanical workshops in
four (4) regions of Arua, Soroti, Mbarara and Gulu at the cost of
UGX.6Bn, intended to reduce costs, time and distance taken to
deliver vehicles to the central mechanical workshop in Kampala for
repair. However, UPF paid UGX.3.963Bn to different service
providers for repair and maintenance services.
iv) UPF had an approved budget of UGX.905.7Bn, out of which
UGX.905.6Bn (99.9%) was released. The shortfall of UGX.0.12Bn
was meant for the construction of accommodation for police officers.
v) Out of the total budget of UGX.905.7Bn, UGX.158.355Bn was for
classified expenditure. UGX.747.07Bn of the total UGX.747.246Bn
non-classified warrants was utilized, and the unabsorbed balance of
UGX.0.175Bn was meant for pension payments, gratuity and general

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 staff salaries.
vi) Despite receiving funds to implement planned activities, UPF partially
implemented several activities, mainly construction, training, and
land surveys which implies that the intended service benefits were
either delayed or not achieved.
vii) Despite receiving funds to implement the planned activities, UPF did
not undertake the procurement of land, construction of
accommodation blocks, a Police hospital at Nsambya, and district
police stations.
viii) UPF planned to ensure the safety of persons and security of property
through building an effective territorial policing system using the
sub-county policing model piloted in the Masaka Region since 2023.
However, UPF does not have sufficient staff to implement the model
fully. Whereas the model requires 4,368 motorcycles, UPF only has
952 functioning motorcycles. In addition, UPF lacks sufficient
structures to accommodate the model.
ix) In 2019, the UPF procured a fixed-wing aircraft at USD.7.84Mn,
responsible for critical operations such as medical evacuations, aerial
surveillance, and maritime search and rescue, but it has not met its
intended objectives. The aircraft’s operational costs are high, and
the design is unsuitable for non-tarmacked runways which limits its
functionality in remote areas. A decision to dispose off the aircraft
has been made, pending implementation.
x) In the financial year 2021/22, UPF procured equipment worth
UGX.1.059Bn to enhance the performance of the Inspectorate of
Vehicles department, including equipment for piloting the
automation of vehicle inspections at the Naguru IOV station, but
these were not yet deployed for use by the time of this audit.
xi) The IOV has limited space for use as driver testing grounds, the
vehicle inspection lanes are not tarmacked to enable the driver to
utilise the road signs, the facility still uses rudimentary tools to
identify the end of the testing lanes instead of traffic Cones, the
facility’s waiting area is not well-furnished with chairs, and has a
limited number of motor vehicles for driver testing.
xii) UPF has 280 dogs in the police canine unit, however, the dogs are
concentrated in Kampala, and the number of dog handlers was not
aligned with the other resources, including transport facilities,
kennels, and dog handler trainers. In addition, there were no

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 Memoranda of Understanding to guide the collaboration between
UPF and other government facilities (MAIIF Labs and district
veterinary officers) on which UPF relies for the treatment of dogs.
xiii) Out of the 745 incidents reported on water bodies, the Police Marine
unit was able to respond to only 210 (28%) incidents, with 323
people rescued and 243 dead bodies retrieved.
xiv) The marine unit’s workforce has insufficient resources, including
finances, skilled manpower and boats which resulted into poor
maintenance of the marine vessels. 18 out of the unit’s 60 vessels
were non-functional and the unit does not have a well-constructed
Marina.
xv) There were significant delays in acquiring land titles. 118 land
parcels surveyed in 2020/21 did not have titles at the time of audit.
xvi) Some of UPF’s land such as Kabalagala, Nakawa, and Pallisa police
stations is encumbered, while land in prime locations such as Kireka,
Nsambya, Jinja, Mbarara and Arua Police Barracks is not developed
or secured through fencing.
xvii) I undertook a special audit of the pension payroll that covered a
period from FY 2019/20 to 2023/24 and issued a separate report.
xviii) Out of 12 recommendations given by Parliament in the two (2)
Treasury memoranda on the report of the Public Accounts
Committee for financial years 2015/16 and 2020/2021, five (5)
recommendations were fully implemented, six (6) were partially
implemented, and one (1) was not implemented.
Fisheries Training Agro-Industrialization Unqualified i) The Institute had outstanding receivables of UGX.355Mn as at the
Institute (FTI) end of the FY 2023/2024 which was an increment of 556% from the
prior year (2022/2023) receivables balance of UGX.54Mn.
ii) The Institute’s arrears significantly increased from UGX.27Mn to
UGX.328Mn.
iii) The Institute made unjustified direct procurements worth
UGX.0.153Bn which exposed it to the risk of uncompetitive prices.
iv) The Institute budgeted to collect NTR of UGX.0.459Bn during the
year and collected UGX.1.809Bn representing a 394% performance.
v) Out of the GoU approved budget of UGX.2.9Bn, funds amounting to
UGX.0.89Bn were released resulting in a shortfall of UGX.2.01Bn
representing a 31% performance.
vi) Out of the total available funds to the Institute during the year worth
UGX.3.349Bn, funds amounting to UGX.3.342Bn were utilized leaving

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 an unspent cash balance of UGX.0.007Bn.
vii) I sampled six (06) activities worth UGX.1Bn for performance
assessment and observed that none of these activities was
appropriately quantified and as such I was not able to undertake the
assessment.
viii) I noted delays in transfer of subvention funds from MAAIF to FTI of
up to three and a half (3½) months from the date of receipt of the
quarterly release by MAAIF.
Mulago National Human Capital Unqualified i) The hospital’s receivables increased by UGX.0.38Bn (115%) from
Referral Hospital Development UGX.0.33Bn at the end of the previous year to UGX.0.71Bn in
(MNRH) 2023/2024. No collection was made during the year under review.
ii) The Hospital made payments amounting to UGX.5.096Bn (UMEME
Ltd- UGX.2,096Bn and NWSC (UGX.3Bn) during the year without
supporting bills/invoices.
iii) Works for which UGX.2.465Bn advance payments were made had
not yet been executed despite expiration of the advance payment
securities.
iv) The physical inspection of the utilisation of the installed modules of
the Integrated Health Management System (IHMS) that was rolled out
to the Hospital in 2017 revealed that;
a) The billing/accounts module was not in use in the Private
Inpatients Ward 6B and the billing was being done manually.
b) The laboratory module was not in use reportedly due to having
been not synchronized with the laboratory system provided by the
manufacturers of the laboratory equipment.
c) The Pharmacy module, which was meant to be used for recording
and tracking of the movement and utilization of the medicines
and health supplies was not in use.
v) A total of UGX.1.391Bn that was deducted from staff salaries was
not remitted to the respective beneficiaries.
vi) Out of the staff establishment of 2351, 1369 (58%) positions were
filled leaving a staffing gap of 983 (42%).
vii) The adults’ ICU has a bed capacity of 44 beds but only 20 (45%)
were utilised representing underutilisation.
viii) The hospital had an approved budget of UGX.129.078Bn out of
which UGX.128.948Bn (99.9%) was warranted resulting into a
shortfall of UGX.0.130Bn. UGX.15.414Bn of the warrants meant for
salaries, pension and Heavy ICT Hardware improvement were not

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 utilised.
ix) Out of a total of 09 outputs with 110 activities worth
UGX.35.161Bn assessed, three (03) outputs with six (06) activities
and expenditure of UGX.13.158Bn were fully implemented while six
(06) outputs with 104 activities worth UGX.22.003Bn were partially
implemented.
x) Out of the 16 sampled activities, four (04) activities worth
UGX.1.350Bn had delays averaging four (04) months from the
expected delivery date.
xi) I carried out a special audit on the gratuity and pension payroll for
the period 2019/2020 to 2023/2024 and issued a separate report.
Butabika National Human Capital Unqualified i) The hospital had not integrated the revenue billing system to the
Referral Mental Development medical system as well as delayed enrolment of the e-AFYA system.
Hospital ii) The Hospital had an approved budget of UGX.22.720Bn out of which
UGX.21.464Bn (94.5%) was warranted. The shortfall of
UGX.1.257Bn affected implementation of activities such as
acquisition of vehicles and office equipment, Digital X-ray machine,
small medical equipment- Treatment trolleys, weighing scales and
wheelchairs.
iii) Out of the total warrants of UGX.21.464bn, the Hospital had utilized
warrants worth UGX.20.254bn by the close of the financial year.
iv) I observed that, apart from activities under administrative services
that were individually costed, the budgets for the other Hospital
outputs were not supported with individual activity costs.
v) I assessed the extent of implementation of eleven (11) outputs
worth UGX.20.254Bn and noted that four (4) outputs with 14
activities were fully implemented, seven (7) outputs with 37 activities
had sixteen (16) activities fully implemented, eleven (11) activities
partially implemented while ten (10) activities were not
implemented.
vi) I reviewed the delivery of services and noted insufficient
rehabilitation capacity at the rehabilitation unit, long stay of patients,
high doctor to patient, and nurse to patient ratios.
vii) I reviewed the management of essential medicines and health
supplies and noted delays in the supply of medicines by NMS and a
shortfall in supplies by NMS.
viii) I undertook a special audit of the pension payroll and an audit of the
Treasury memorandum for the health sector entities for the financial

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 year 2014/15 and issued separate reports.

Uganda National Integrated Transport Unqualified i) The company incurred a net loss of UGX.237.854Mn in 2024, a
Airlines Company and Infrastructure 25.6% improvement from the UGX.324.940Mn loss in 2023.
Limited (UNACL) Services Sustained losses threaten financial sustainability and shareholder
value.
ii) Contingent liabilities of UGX.11.94Bn (USD 3.15Mn) were disclosed,
primarily relating to pending court cases which expose the company
to significant legal costs, potentially straining financial resources.
iii) Some GSAs were awarded contracts without advance payment
guarantees, exposing UNACL to financial risks. Outstanding balances
from GSAs totalled USD 158,876 (UGX.588.79 Mn) without
guarantees in place.
iv) GSAs transacted with UNACL after contract expiration, generating
USD 378,143.34 (UGX.1.43Bn) in sales, with 22.1% (USD 708,692 or
UGX.2.68Bn) outstanding as of 30th June 2024.
v) Contracts worth UGX.7.42Bn experienced significant execution
delays.
vi) No regular performance appraisals and progress reports by contract
managers were submitted for contracts worth UGX.4.075Bn, which
contradicts the PPDA regulations.
vii) I noted that key strategic objectives, such as marketing
improvement, route network expansion, and customer engagement
underperformed.
viii) Out of the approved UGX.593.84Bn budget, UGX.542.21Bn (91.3%)
was realised, leaving a shortfall of UGX.51.64Bn.
ix) Of the 19 outputs with 53 activities worth UGX.456.2Bn assessed;
only 5 activities (UGX.269.8Bn) were fully implemented, 26
(UGX.96.6Bn) partially implemented, and 22 (UGX.89.88Bn) not
implemented.
x) A forensic audit on cabin crew training costs was conducted following
a request by the Inspectorate of Government (IGG). The following
were the key findings;
a) UNACL had a training manual approved by UCAA, outlining
procedures and compliance standards for cabin crew training.
b) The first phase of training (USD 32,000) was rejected by UCAA
due to non-compliance with regulatory requirements, such as

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 unapproved training venues, insufficient course hours, and
missing mandatory content.
c) The second phase (USD 36,400) of the training met UCAA
standards.
d) The third phase (USD 80,000) of the training conducted as a
refresher, was approved by UCAA and addressed earlier
deficiencies.
e) The total training cost was USD 148,400. There was no sufficient
evidence found to classify these costs as financial loss.
xi) An audit of the Treasury Memorandum for FY 2020/2021 assessed
the implementation of Parliamentary recommendations. Of the 18
recommendations, 12 were fully implemented, and 6 were partially
implemented, resulting in a compliance rate of 66.7%.
Uganda Railways Integrated Transport Unqualified i) UGX.1.151bn relating to deducted PAYE remained outstanding as
Corporation (URC) and Infrastructure 30th June 2024.
Services ii) Uganda Railways Corporation (URC) incurred a net loss of
UGX.36.345Bn in FY 2023/2024, an increase of UGX.1.169Bn (9.2%)
from the previous year’s loss of UGX.35.176Bn.
iii) The Return on Assets (ROA) has remained negative, declining further
to -0.933% in FY 2023/2024 from -0.81% in FY 2022/2023, signaling
underutilization of assets and poor operational efficiency.
iv) The liquidity ratio reduced from 2.78 times in FY 2021/2022 to 0.72
times in FY 2023/2024, indicating a liquidity crisis driven by a sharp
increase in current liabilities (UGX.64.56Bn in FY 2022/2023 to
UGX.152Bn in FY 2023/2024).
v) The total arrears from tenants with expired agreements amounted to
UGX.1.6Bn as of 30th June 2024.
vi) The URC has significant gaps in executing its mandate, including
incomplete railway restoration, limited passenger service expansion,
and inadequate asset protection, undermining strategic objectives
and service delivery.
vii) Out of the approved budget of UGX.354.2Bn for FY 2023/2024, only
UGX.91.5Bn (26%) was realized, with significant shortfalls in
internally generated revenue, GoU development funding, and
exceptional income (arrears from MoFPED & UNRA).
viii) Out of the approved budget of UGX.354.21Bn for FY 2023/2024, only
UGX.91.51Bn (26%) was realized, resulting in a funding shortfall of
UGX.262.7Bn.

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 ix) Out of 35 planned activities worth UGX.20.09Bn, 14 were fully
implemented, while 21 were partially or not implemented,
highlighting inefficiencies in fund utilization and planning.
x) Under the procurement for supply of desktops and laptops valued at
UGX.119.2Mn, performance security of UGX.11.9Mn (10% of the
contract value) was not documented as having been received by the
company, contrary to the PPDA Contracts Regulations 2023.
xi) I undertook 3 other audits in URC as shown below:
a) Value for Money audit on the Effectiveness of Provision of Railway
Services by Uganda Railways Corporation,
b) Engineering Audit of Infrastructure Projects of the Uganda
Railways Corporation and
c) Audit of Treasury Memoranda for the financial year 2020/21.
Uganda National Integrated transport Unqualified i) UNRA’s operations have ceased, and its functions have been
Roads Authority infrastructure and absorbed by the Ministry of Works and Transport. Management
(UNRA) services disclosed these developments in Note 1.3 of the financial statements.
ii) Management disclosed UGX.997.722Bn in payables, with
UGX.0.781Bn outstanding for over five years. The delays in settling
these obligations resulted in UGX.27.660Bn in interest charges on
unpaid Interim Payment Certificates (IPCs) and ten (10) contractors
with outstanding IPCs worth UGX.299.32Bn had suspended works as
at 30th November 2024.
iii) UNRA budgeted UGX.10.308Bn for arrears settlement but utilized
UGX.367.824Bn, leading to a diversion of UGX.291.120Bn from
planned activities. This reflects inadequate provision for arrears and
hinders the Authority’s ability to execute planned projects.
iv) As of 30th June 2024, UNRA had non-performing LCs valued at
UGX.16.794Bn.
v) Procurements worth UGX.102.486Bn experienced delays in
evaluation, exceeding the timelines specified in Regulation 5 of the
PPDA Regulations, 2014.
vi) UNRA signed Addendum No.1 for the Kira-Matugga Road project
worth UGX.22.089Bn, with significant cost escalations up to 663%
for some items. The variations lacked adequate justification and
placed an additional UGX.18.72Bn (11.02%) strain on public
resources.
vii) Direct procurement method was used to award a contract worth
UGX.15.79Bn, contrary to PPDA regulations requiring competitive

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 bidding for projects above UGX.0.5Bn.
viii) A total of 114 PAPs owning 2.79 acres, valued at UGX.2.367Bn,
remain uncompensated which disrupts project timelines and risks
additional costs due to disputes.
ix) A call-off order worth UGX.2Bn was issued for road maintenance,
exceeding the planned cost of UGX.0.07Bn without a funding
commitment. As of November 2024, works worth UGX.1.842Bn
remained unpaid.
x) The approved budget for FY 2023/2024 was UGX.3,002.2Bn, of
which UGX 2,661.Bn (88.63%) was warranted. The unwarranted
funds of UGX.143.21Bn related to totally unfunded outputs, while
UGX.198.024Bn involved partially funded outputs.
xi) Out of warrants worth UGX.2,660.92Bn, only UGX.2,409.32Bn was
utilized.
xii) Seven outputs with 36 activities worth UGX.415.024Bn were
assessed. While UGX.84.213Bn worth of activities were fully
implemented, UGX.330.811Bn was either partially or unimplemented,
indicating inefficiencies in fund utilization and procurement
processes.
xiii) UNRA received UGX.229.51Bn in supplementary funding, but
UGX.53.68Bn was utilized without formal approval from the Minister
as required by financial regulations.
xiv) Physical inspections revealed defects in five out of six sampled
projects worth UGX.236Bn. Issues included impassable road
sections, poorly compacted gravel, and inadequate drainage
systems.
xv) UNRA delayed the completion of 22 road projects valued at
UGX.63.912Bn, increasing administrative costs and denying citizens
access to essential infrastructure.
xvi) Of the UGX.324.903Bn budgeted for land acquisition, only
UGX.276.226Bn was utilized to compensate 5,068 PAPs which left
some PAPs uncompensated.
xvii) Stations like Gulu, Arua, Kitgum, and Luwero achieved only 30.7%
(507 km of planned 1,650.6 km) road maintenance due to funding
shortfalls. Similarly, Jinja station failed to finalize construction of
stores due to a UGX.0.478Bn shortfall.
xviii) I audited the Treasury Memorandum for the financial year ended
30th June 2021 and noted that out of 14 parliamentary

348
 recommendations, 29% were fully implemented, 7% partially
implemented, and 64% not implemented, highlighting significant
gaps in compliance.
xix) UNRA was implementing 10 donor-funded projects during FY
2023/24, out of which 9 were audited and separate reports issued.
One audit is still in progress.
Contingencies Fund Development plan Unqualified i) The approved budget for the financial year FY2022/23 was
implementation UGX.52.547Tn, which would have translated into UGX.262.738Bn
funding, for the Contingencies Fund for 2023/24. However,
Governance and Parliament had only appropriated UGX.171Bn (65%) to the fund,
security leading to a deficit of UGX.91.738Bn. Only UGX.88.508Bn (51%) was
released to the Contingencies Fund for emergencies.
Uganda National Agro-industrialization Unqualified i) The Bureau had an approved budget of UGX.60.042Bn (94%) out of
Bureau of Standards Manufacturing which UGX.56.717Bn was warranted resulting in a shortfall of
(UNBS) Private sector UGX.3.325Bn.
development ii) I assessed the extent of implementation of eight (8) outputs with
thirty-four (34) activities for which UGX.56.711Bn and noted that
Four (4) outputs with thirteen (13) activities were fully implemented
while four (4) outputs with twenty-one (21) activities were partially
implemented.
iii) Domestic arrears increased by 101% from UGX2.467Bn at the end of
the previous year to UGX.4.952Bn at the end of FY 2023/2024.
iv) Planned procurements worth UGX.2.238Bn were not implemented
due to delays in initiation and underfunding.
v) There is an oversight vacuum at the Bureau, because the National
Standards Council was dissolved on 8th October 2024. As a result,
several policies and standards have remained in draft form and
others have not been initiated.
vi) UNBS failed to conduct Annual Audits of Service Providers that may
lead to substandard products being cleared by the agents.
vii) The PVoC service providers failed to implement the UNBS Capacity
Building and Knowledge Transfer Initiative contrary to PVoC contract
agreement. Implying UNBS may not have staff available in future to
undertake PVoC activities in the event the programme is reverted to
GoU.
viii) Some commodities were released by the Bureau to the market due to
lack of capacity to test the commodities, creating a risk of releasing
sub-standard products to the market.

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 ix) The Bureau failure to develop standards for certain imported
commodities due to understaffing. This could have led to the release
of substandard products onto the market.
x) I noted delays by the Bureau to destroy seized substandard
items/products. This creates a risk of the release of substandard
products to the market.
xi) I noted the inadequate presence at Border Posts by UNBS with only
27 out of the 170 border entry points manned. This was attributed to
understaffing.
National Drug Human Capital Unqualified i) I noted that the Authority had long outstanding receivables of
Authority (NDA) Development UGX.58.706Bn out of which UGX.58.388Bn (99%) were due from
Ministry of Health.
ii) I noted long outstanding payables of UGX.0.063Bn owed to 8
creditors. These have been outstanding for over 2 years.
iii) NDA had an approved expenditure budget of UGX.105.192Bn out of
which UGX.83.697Bn (79.6%) had been utilised by the close of the
financial year. The balance UGX.21.494Bn was meant for activities
which were either partially or not implemented at all.
iv) I assessed the implementation of thirty-four (34) activities with a
total of 312 outputs worth UGX.83.694Bn and noted that eight (8)
activities with 21 outputs were fully implemented; twenty-five (25)
activities with 287 outputs were partially implemented while one (1)
activity with four (4) outputs was not implemented.
v) Out of the 16 planned modules of the Integrated Regulatory
Information Management System (IRIMS), only 5 modules
(representing 31%) were fully functional while the remaining eleven
(11) modules (representing 68%) although developed were still
undergoing progressive roll-out.
vi) The Authority completed the construction of the 12-floor Tower in
December 2023, however, by the time of audit inspection, the
Authority had occupied 3 floors of the tower for administration. The
unoccupied floors were meant to house the Pharmaceutical,
microbiology and Vaccines laboratories.
vii) I reviewed the performance of the pharmacovigilance unit over a 3-
year period in providing feedback and noted that out of the total of
273 Adverse Drug Reaction (ADR) complaints received only 113
where within the prescribed Service Delivery Timeline (SDT) of 18
days, 63 exceeded the expected SDT with feedback period ranging

350
 from 19 to 84 days; while 97 lacked feedback dates.
viii) I reviewed Authority’s Post market surveillance (PMS) complaints
register and noted that out of the 100 complaints, 20% were
acknowledge beyond the prescribed five (5) days, 76% were within
the SDT, while 4% were never acknowledged. I further noted that
out of the 100 complaints, the Authority provided feedback on 43%
beyond the prescribed SDT of 20 days with an average delay of 133
days; 10% complaints fell within the SDT while feedback on 47%
was not documented.
Africa Institute for Human Capital Unqualified i) There was no approved strategic plan, work plan and budget for the
Strategic Animal Development period under review, and the Project management did not prepare
Resource Services Programme quarterly performance reports.
and Development ii) I noted non-compliance with the meeting pattern by the Board, staff,
(AFRISA) Project departments and the committees, as required by Section 3.3 of the
(MUK) - 30th June AFRISA Operations Manual, 2018
2023

Italian Support to Human Capital Unqualified i) I compared the cumulative disbursements of project funds as at 30th
the Uganda Health Development June 2024 against the project financing agreement and noted that the
Sector Strategic Plan cumulative Government of Uganda (GoU) counterpart disbursements
(UHSSP) III and the to-date exceeded the expected amount by UGX.0.234Bn.
Peace, Recovery and ii) The Project had an approved budget of UGX.2.967Bn for the financial
Development Plan year 2023/24. A total of UGX.2.521Bn was available for spending
(PRDP) for Northern comprising receipts from GoU in respect of counterpart funding
Uganda - Karamoja (UGX.0.404Bn) and Euros 504,020 (UGX.2.117Bn) as Cash and bank
Region Staff Housing balances brought forward from the previous financial year.
Project (KRSHP) iii) Out of the total available funds of UGX.2.521Bn, only UGX.1.162Bn
Phase I (46%) was spent leaving an unspent balance of UGX.1.359Bn
unutilized.
iv) 13 of the planned 17 staff houses/blocks were completed leaving 4
staff houses/blocks (8 Units) at 2 sites uncompleted, namely, Karita
HCIII – 4 units (Amudat District) and Lemusui HCIII – 4 units
(Nabilatuk).
Italian Support to Human Capital Unqualified i) I compared the cumulative disbursements of project funds as at 30th
Uganda Health Development June 2024 against the project financing agreement and noted that the
Sector Development cumulative disbursements to the project were in accordance with the
Plan (USDP) - financing agreement, although the disbursement was delayed by
Karamoja twenty (20) months.

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Infrastructure ii) I noted that two (2) activities namely, construction works,
Development Project rehabilitation and upgrade of health facilities; and procurement of
(KIDP) Phase II assorted medical and laboratory equipment for 10 Health Centers, 2
ambulances, 5 supervision vehicles and 18 motorcycles valued at
UGX.18.049Bn had not been fully implemented by close of the year.
However, medical equipment had been procured for 9 out of the 10
Health facilities.
iii) The Project had an approved budget of UGX.21.263Bn for the financial
year 2023/24 out of which UGX.20.923Bn (98%) was available for
spending resulting in a shortfall of UGX.0.340Bn.
iv) Out of the total available funds of UGX.20.923Bn, only UGX.0.410Bn
(2%) was spent, resulting in unspent balance of UGX.20.513Bn.
Uganda-Spain Debt Human Capital Unqualified i) The financial statements for the financial year ended 30th June 2024
Swap (Rehabilitation Development were submitted in December 2024 past the statutory deadline of 31st
of Kawolo & August.
Busolwe General ii) The expected cumulative disbursement of USD.17.37Bn from the
Hospitals) Project donors had been received as at 30th June 2024. However, there was a
shortfall of USD.0.28Mn in respect of the expected GoU counterpart
funding.
iii) Cumulative for the 21 planned activities at Busolwe General Hospital
were yet to be achieved.
iv) The Busolwe General Hospital project had an approved budget of
USD. 2.841Mn for the financial year 2023/24 and all the funds were
released. However, only USD.2.624Mn (92%) had been spent
resulting in an unspent balance of USD.0.217Mn. Physical progress at
Busolwe hospital was at 67% by close of the year under review.
National Natural Resources, Unqualified i) Domestic arrears amounting to 0.177Bn were paid but not budgeted
Environment Environment, Climate ii) Included in the receivables of UGX0.12.5Bn are long outstanding
Management Change, Land, and debts of UGX.11.87Bn from the previous financial year
Authority (NEMA) Water iii) The term of the Current Board of directors expired in May 2024 and
by the time of this report had not been renewed.
iv) NEMA lacked a centralized database on the record of compliance
certificates and licenses issued in the prior years
v) NEMA lacked a tracking system to monitor the status of all issued
permits, including whether their conditions were being met
vi) UGX.12.24Bn on the National Environment Fund remained unspent
and idle on the account
vii) Audit revealed that procurements of laptops and desktops were split

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 viii) NEMA signed a contract for the supply of motorcycles worth
UGX.0.06Bn with a bidder without availing performance security
ix) Motor vehicles that were overdue for disposal were kept at the
Authority Parking Yard
x) Out of the approved budget of UGX.42.29Bn the total warrants for
the year amounted to UGX.39.89Bn, out of which UGX.35.67Bn had
been utilized by the close of the financial year
xi) Four (4) outputs with (29) activities and expenditure worth
UGX.20.28Bn were fully implemented, while three (3) outputs with
eighteen (18) activities worth UGX.9.66Bn were partially
implemented.
xii) I conducted a Value for Money audit on the monitoring and
enforcement of air quality standards in selected cities in Uganda by
the NEMA, and issued a separate report.
xiii) An Audit of the Treasury Memorandum was undertaken in the entity
xiv) A total of seven (7) projects were audited in the entity.
Adaptive Human Capital Unqualified There were no reportable issues
Environment Development
Monitoring Programme
Networks for East
Africa (AdEMNEA)
Project (MUK) for
the Period 1st Jan
2023 to 31st Dec,
2023
Building Resilient Human Capital Unqualified i) Out of the received grant of USD 417,721.85, only USD 238,868.68
Communities Development was utilized, leaving unspent funds amounting to USD 178,853.17.
through inclusive ii) Out of five (5) outputs with a total of twenty-two (22) activities, only
Education in Eastern two (2) outputs with eight (8) activities were fully implemented while
Africa (RESILIENT three (3) outputs with fourteen (14) activities were partially
Project) (MUK) for implemented.
the period ended
31st Dec 2022
Building Resilient Human Capital Unqualified There were no reportable issues
Communities Development
through inclusive
Education in East
Africa (RESILIENT

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Project) (MUK) for
the period ended
31st Dec 2023
Agricultural Cluster Agro-Industrialization Unqualified i) Out of the expected total donor disbursement of UGX.557Bn, the
Development Project Programme project received UGX.548Bn (98%). Out of the total expected GOU
(ACDP) receipts of UGX.8.52Bn, the project received UGX.7.98Bn (94%).
This affected project performance and achievement of the overall
project objective/target.
ii) Out of the cumulative disbursement of UGX.555.4Bn, UGX.513.5Bn
was absorbed as at 30th June 2024. I sampled seven (7) activities
worth UGX.339.81Bn (61% of disbursed) and noted that targets for
one (1) activity worth UGX.2Bn was fully achieved while targets for
the remaining six (6) activities worth UGX.337.80Bn were all partially
achieved.
iii) The project planned to provide matching grants to 300 Area-based
Commodity Cooperative Enterprises (ACCEs) and 3000 Rural
Producer Organizations (RPOs), however, only 208 (70%) ACCEs and
150 (5%) RPOs were provided with matching grants.
iv) Out of the 358 matching grant facilities, 263 were functional while 84
were non-functional due to lack of power on site, delayed equipment
delivery and partial delivery of equipment by contractor despite
substantial payments.
v) There was limited capacity of the 205 grantees to run and maintain
the 3 phase electricity networks and generators due to high
electricity commercial tariff rates and costs of running the
generators.
vi) There was limited capacity of the 358-value addition and post
harvesting equipment grantees to maintain the equipment in the
event of breakdown due to the low earnings for these cooperatives.
vii) The project planned to rehabilitate 2,799kms of access roads and
choke points out of which only 1,104kms (40%) were rehabilitated.
The beneficiary local governments lacked corresponding budget
allocation for regular maintenance of completed road chokes and as
such, will fail to keep these road chocks in a motorable state.
viii) The project planned to enroll 450,000 farmers, however, only
411,872 farmers (91.5%) accessed agro inputs. There were unpaid
balances for 263,289 farmers worth UGX.3.053Bn deposited with
UBA which were yet to be refunded thus exposing the Ministry to

354
 possible litigation from the beneficiary farmers.
ix) After enrolment, the project planned to create and strengthen
30,000 Small farmer groups out of which 28,237 (94%) groups were
created and strengthened.
x) The project planned to develop designs for the rehabilitation and
expansion of 22 irrigation schemes at USD.5Mn. However, only 18
(81%) prefeasibility studies were undertaken at a cost of
USD.0.647Mn. Out of the 18, only five (5) 28% progressed to the
feasibility and design stage for which the project spent USD.1.31Mn.
xi) Out of the five (5) projects for which feasibility studies and designs
were undertaken, only three (3) 60% were completed.
xii) The project developed six (6) IT systems at a cost of UGX.15.7Bn,
However, the MAAIF lacks an IT management framework and has
not operationalised the Business Continuity Plan (BCP) in case of a
disaster.
Agriculture Value Agro-Industrialization Unqualified i) Out of the expected total disbursement of UGX.319.34Bn, a sum of
Chain Development UGX.185.7Bn (58%) had been disbursed despite one year to the end
Project (AVCDP) of the project life.
ii) Out of the total disbursed funds of UGX.185.7Bn, the project had
absorbed UGX.181.8Bn by the end of the financial year under audit
leaving a balance of UGX.3.9Bn on the project account in Bank of
Uganda.
iii) I sampled 49 activities worth UGX.185Bn and noted that targets for
20 activities worth UGX.40.15Bn had been fully achieved while
targets for the remaining 29 activities worth UGX.146Bn were yet to
be achieved.
iv) Out of the planned procurements worth UGX.133.48Bn,
procurements worth UGX.7.73Bn were not undertaken at all while
procurements worth UGX.29.67Bn were not yet finalized as at 30th
June 2024.
v) I reviewed a sample of six (06) procurements worth UGX.31Bn and
noted that the procurements took between three (03) to six (06)
months from bid publishing to contract signing and seven (7) to
eleven (11) months from bid initiation to actual contract signing.
vi) I noted delayed contract implementation for three (3) contracts
worth UGX.5.461Bn with delays ranging from 11 months to over a
year by the time of my audit on 30th September 2024. These delays
related to outstanding maize supplies of 358 tonnes and 5.6 tonnes

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 of pasture seed worth UGX.1.55Bn.

Atomic Energy Energy Development Unqualified i) In its workplans and budgets, AEC did not prioritise three (3)
Council (AEC) activities of promoting education and building capacity in nuclear
science and technology, development of the structural and
architectural designs for the administration block and radiation block
and constructing a perimeter wall fence and external works in
Mpoma.
ii) Out of the budget of UGX.62.15Bn, only UGX.26.05Bn (41%) was
released. The shortfall of UGX.36.10Bn affected implementation of
activities, such as registration of new facilities and radiation sources,
national update of radiation sources and inventory.
iii) UGX.24.65Bn was utilized during the financial year FY 2023/24
representing an absorption level of 94%, which affected
procurement of monitoring equipment.
iv) Out of the 24 activities planned for the year, only 4 were fully
implemented, 5 were substantially achieved while 15 activities were
partially implemented.
Medical and Human Capital Unqualified i) Out of the received funding of USD36,378.22, only USD 22,202 was
Environmental Development utilized, leaving unspent funds of USD14,176.22
Anthropology for ii) Out of the seven (7) planned activities, five (5) activities were fully
East Africa in the implemented, one (1) activity was partially implemented, and one (1)
21st Century was not implemented at all.
(AnthEM Project)
(MUK) for the period
31st Dec 2022
Child Health Human Capital Unqualified There were no reportable issues.
Development Centre Development
(MUK) for the year
ended 30th June
2023
Environment for Human Capital Unqualified i) Out of the received project grant of USD 355,448.56, only USD
Development Development 186,604.69 (54.87%) was spent, reflecting unspent funds of USD
Initiative Project in 153,465.32
Uganda (EfD - Mak
Centre) for the year
ended 30th
December 2023

356
Medical and Human Capital Unqualified There were no reportable issues
Environmental Development
Anthropology for
East Africa in the
21st Century
(AnthEM Project)
(MUK) for the Period
31st Dec 2023
Institutionalisation Human Capital Unqualified i) Out of the funding received of USD 107,205, only USD 86,466 was
of Advanced Development utilized, leaving unspent funds of USD 20,739.
Research Training in
Africa -iCARTA
Project (MUK) for
period ended 31st
December 2022
Institutionalization Human Capital Unqualified There were no reportable issues
of Advanced Development
Research Training in
Africa - iCARTA
Project (MUK) for
the Period ended
31st Dec 2023
Integrated Bio Human Capital Unqualified i) The project management did not pay its staff salaries for the period
repository of Development of June 2022 to May 2023, despite having unutilized amount (bank
H3Africa Uganda balance) of USD 699,586.18 by year end.
Project (MUK) - 31st
May 2023
Militarization, Human Capital Unqualified There were no reportable issues
Sustainable Growth Development
and Peace Project in
Uganda
implemented by
Human Rights and
Peace Centre,
Makerere University
-1st January 2023 to
30th April 20240

357
Partnership for Human Capital Unqualified i) Out of the received grant of USD 32,759.55, only USD 25,993.78 was
Peace: Better Higher Development utilized leaving unspent funds of USD 6,765.77.
Education for ii) Out of the nine (9) activities in the work plan, only five (5) activities
Resilient Societies were fully implemented, while four (4) activities were partially
(PFP) Project (MUK) implemented.
for the period ended
31st Dec 2022
Partnership for Human Capital Unqualified There were no reportable issues
Peace: Better Higher Development
Education for
Resilient Societies
(PFP) Project (MUK)
for the period ended
31st Dec 2023
Strengthening Human Capital Unqualified i) Project management budgeted to receive USD 515,224; however,
Behavioural and Development only USD 364,641.25 (70.8%) was realized, indicating a shortfall of
Social Science USD 150,582.75 (29.2%).
Research Capacity to ii) Out of the total grant of USD 364,641.25 only USD 303,559.46 was
address evolving expended reflecting unspent funds of USD 61,081.79 (16.8%).
challenges in HIV
Care and Prevention
(MUK) - 31st March,
2021
Strengthening Human Capital Unqualified i) The Project management budgeted to receive USD 298,239
Behavioural and Development however; only USD 74,541 (25%) was realized indicating a shortfall
Social Science of USD 223,698.00
Research Capacity to
address evolving
challenges in HIV
Care and Prevention
(MUK) - 31st March,
2020
Water Essence Africa Human Capital Unqualified i) A review of the Project funding revealed that out of the received
- Creating Synergy Development grant of USD 25,660.97, only USD 12,465.19 was utilized, leaving
to meet the Global unspent funds amounting to USD 13,195.78.
Challenges (WATER ii) Out of thirteen (13) activities in the work plan, the project fully
ESSENCE) Project implemented one (1) activity while six (6) activities were partially
(MUK) for the period implemented and six (6) not implemented at all.

358
ended 31st Dec 2022

Water Essence Africa Human Capital Unqualified There were no reportable issues
- Creating Synergy Development
to meet the Global
Challenges (WATER
ESSENCE) Project
(MUK) for the period
ended 31st Dec 2023
Vulnerability and Human Capital Unqualified There were no reportable issues
Climate Change Development
Adaptation in
Conflict Affected
Regions (VUCCA)
Project (Gulu
University) for
period ended 31st
Dec 2023
BTVET Support There were no reportable issues
Project of MoES for
the year ended 30th
June 2024
Bukalasa Agro-Industrialization Unqualified i) The College had outstanding commitments of UGX.267.5Mn at the
Agricultural College end of the financial year 2023/2024 which exposes the College to the
risk of litigation.

ii) The College had outstanding revenue of UGX.22Mn at the year-end

which affects the operations of the College since planned activities
cannot be implemented.

iii) The College undertook irregular direct procurements worth

UGX.0.149Bn without any justification contrary to the PPDA
regulations.

iv) Out of the NTR budget of UGX.7.271Bn, UGX.7.130Bn was collected

representing a 98.1% performance.

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 v) The College had an approved GoU budget of UGX.1.472Bn out of
which UGX.1.391Bn was warranted representing a 94.5%
performance.

vi) Out of the total available funds of UGX.9.39Bn, the college utilized
UGX.9.02Bn that was inclusive of brought forward balances leaving
an unspent cash balance of UGX.0.35Bn.

vii) I noted that subvention releases from MAAIF had an average delay
of three and a half (3½) months from the date of receipt of the
quarterly release by MAAIF to actual remittance to BAC.
Busitema University Human capital Unqualified i) The University had outstanding payables of UGX.1.611Bn as at 30 th
development June 2024 contrary to the Commitment Controls advised by
MoFPED.
ii) UGX.0.337Bn was spent on settlement of outstanding domestic
arrears, yet the budget provision was only UGX.86Mn.
iii) UGX.83.3Mn was charged to wrong codes.
iv) I noted that 2 University staff absconded from duty when their
leave expired in 2018.
v) It was observed that procurements worth UGX.17.282Bn did not
have any contract management plans on file.
vi) Out of the total warrants of UGX.59.529Bn, warrants worth
UGX.59.418Bn had been utilized, leaving a balance of UGX.0.112Bn
which was meant for general staff salaries, board, committees and
council allowances, ICT supplies, printing, stationery, photocopying
and binding.
vii) Two 2 outputs with 4 activities and expenditure worth UGX.1.15Bn
were fully implemented. Fifteen (15) outputs with 73 activities
worth UGX.10.925Bn were partially implemented, while eighteen
(18) activities worth UGX.0.263Bn remained unimplemented.
viii) Out of the 7 sampled projects, four (4) projects worth UGX.2.89Bn
had delays from the expected completion date by an average of 15
months.
ix) I noted that two (2) out of the 7 sampled projects worth
UGX.245Mn were not functional despite completion due to not
being connected to power and some variations which required
more funds.

360
Capacity Building for Human Capital Unqualified There were no reportable issues
Socially Just and Development
Sustainable Energy
Transition in East
Africa (SET) Project
(MUK) for the period
1st Jan 2023 to 31st
Dec 2023
Capacity Building for Human Capital Unqualified There were no reportable issues
Research Based Development
Teachers (CABUTE)
Project (MUK) for
the period 1st Jan
2023 to 31st Dec
2023
CASH-IN - Privately Private Sector Unqualified i) There was under absorption of funds of DKK 516,017 (31%) out of
Managed Cash Development DKK 1,659,258 which was available for spending, implying only DKK
Transfers in Africa 1,143,241 was spent.
PROJECT - 31st ii) There was a three-month delay in filing PAYE returns for December
December 2023 2022 and March 2023.

City-Wide Inclusive Public Sector Unqualified i) Out of UGX.0.36 Bn disbursed, only UGX.0.24 Bn (66.4%) had been
Sanitation Program Transformation recovered, leaving a balance of UGX.0.12 Bn (33.6%) outstanding
(Grant OPP1179828) and not disclosed in the financial statements as a receivable
for year ended 30th ii) Out of budget of UGX.4.69 Bn, only UGX.3.26 Bn was spent,
November 2023 resulting in an unspent balance of UGX.1.43 Bn (69%).
iii) There were delays in completion of public toilets at Kyanja
Agriculture Resource Centre (85%), City Square (85%) and Kalerwe
sites (85%). In the three (3) sites the electrical, floor finishing and
fitting and plumbing works had not been completed.
iv) The project oversight team and project advisory/steering committee
of the project rarely met and as such, could not provide the requisite
oversight to the project
v) The Weyonje app was restrictive in its access and usage by Kampala
residents as it was only available for Android users
Centres for Disease Human Capital Unqualified i) The project received USD.2,190,757, out of the expected
Control and Development USD.3,071,381, resulting in a shortfall of USD.880,624
Prevention Urban ii) The project had an approved budget for the year of USD.1,861,449

361
Health Project out of which USD.1,771,724 was available for spending. Out of the
(KCCA) for year total available funds of USD.1,771,724, USD.1,441,332 (81%) was
ended 30th spent, resulting in an unspent balance of USD.330,402
September 2023 iii) Assessment of the implementation of planned activities could not be
done, since the project did not prepare performance reports
iv) KCCA had not established a steering committee to provide strategic
oversight and guidance to the project. The project may lose strategic
focus, leading to failure to attain the intended project objectives.
Centres for Disease Human Capital Unqualified i) UGX.421Mn was paid as a severance package to staff however, only
Control and Development UGX.25Mn was paid to URA instead of the actual tax obligation of
Prevention Urban UGX.144Mn.
Health Project ii) Despite receiving notice of project closure from the funders, KCCA
(KCCA) for the six did not terminate or revise the terms of the consultancy for the
months period baseline survey of the KCCA Urban Health Strategy. This resulted in
ended 31st March unpaid arrears of UGX.43Mn.
2024 (Closure audit) iii) KCCA had not implemented sustainability measures such as
appointing a liaison officer with Reach Out Mbuya (ROM), preparing
a handover report and transition plan and developing long term
strategies to guarantee sustainability of the project outcomes.
iv) At the time of project closure, CDC project had cumulatively received
USD.2.53Mn out of the expected USD.3.91Mn resulting in a shortfall
of USD.1.38Mn. Out of the total receipt, the project spent
USD.2.13Mn leaving a balance of USD.0.40Mn. The pending
unimplemented activities were transferred to Reach Out Mbuya for
subsequent implementation.
v) Equipment worth USD.58,000 which had been delivered was yet to
be installed nine (9) months after its delivery due to the absence of a
bunker that was supposed to receive the waste from the equipment.
Further, the conveyor that was delivered was not as per the
recommended technical specifications.
vi) The supplier of the equipment had been paid in full despite not
undertaking trainings which was part of the contract deliverables.
vii) At the time of inspection, the facility where the equipment was
supposed to be installed was being used by a private operator and
KCCA had to rely on this operator to replicate the black soldier fly
production.
Climate Change and Human Capital Unqualified There were no reportable issues
Infectious Diseases Development

362
– “One Health
Approach” –
CIDIMOH UBG
Project for the
period ended 31st
Dec 2023
Climate Change and Human Capital Unqualified There were no reportable issues
Infectious Diseases Development
(One Health
Approach” -
CIDIMOH Project
(MAK) for the period
ended 1st Dec 2023

Climate Smart Human Capital Unqualified There were no reportable issues

Agriculture in Sub- Development
Saharan Africa (CSA)
Project (MUK) for
the period ended
31st December 2023
Energy Technology Human Capital Unqualified There were no reportable issues
Network Development
(Energynet) Project
(MUK) for the Period
1st Jan 2023 to 31st
Dec 2023
Gender and Human Capital Unqualified There were no reportable issues
Digitalization Across Development
Context (GENDIG)
Project (MUK) for
period 1st Jan 2023
to 31st Dec 2023
Enhanced Capacity Human Capital Unqualified There were no reportable issues
for Aquatic Development
Resources in East
and South Africa
(ECARESA) Project
(MUK) for the period

363
 1st Jan 2023 to 31st
Dec 2023
Decolonizing Human Capital Unqualified There were no reportable issues
Epistemologies: The Development
Disciplines and the
University in relation
to the Society and
the World Project
(MUK) for the Period
1st Jan 2023 to 31st
Dec 2023
Co - Creating Human Capital Unqualified There were no reportable issues
Knowledge for Local Development
Adaptation to
Climate Change in
LDCS (COLOCAL)
Project (MUK) for
the period 1st Jan
2023 to 31st Dec
2023
Competitiveness and Sustainable Unqualified i) The Project had an approved budget of UGX. 180.516Bn for the FY
Enterprise Urbanisation & 2023/24 out of which UGX. 103.901Bn (58%) was available for
Development Project Housing spending resulting in a shortfall of UGX 76.615Bn which affected the
(CEDP-AF) implementation of planned project activities.
ii) Out of the total available funds of UGX 103.9Bn for the FY 2023/24,
only UGX 46.16Bn (46%) was spent leaving an unspent balance of
UGX.57.74Bn (56%).
iii) Out of a sample of fifty-one (51) activities worth UGX 96.521Bn
(Approx. USD 25.849)5 ten (10) activities worth UGX. 5.972Bn
(Approx. USD 1.599) had been fully achieved while forty-one (41)
activities worth UGX. 90.548Bn (Approx. USD 24.249) were partially
implemented.
Competitiveness and Public Sector Unqualified i) Out of the total available funds of UGX.73.82Bn for financial year
Enterprise Transformation 2023/24, only UGX.65.78Bn was spent resulting in unspent balance
Development Project of UGX.8.09Bn representing an absorption level of 89%.

5
Exchange rate used is USD/UGX: 3734

364
(CEDP- AF) Consequently, some Project activities were not fully implemented.
Component 2-3
(PSFU)
Coordinating Office Agro - Qualified i) The Accounting Officer did not disclose the effect of the
for Control of industrialization rationalization on the entity operations despite having received
Trypanosomiasis in confirmation that the entity would be merged with MAAIF.
Uganda (COCTU) ii) Two (2) out of the 19 staff had been absorbed by MAAIF. However,
there was no clear strategy on how the remaining 17 former staff
were to be validated and absorbed within MAAIF.
iii) There was no clear procedure through which government assets
under COCTU are to be accounted for and handed over to MAAIF.
iv) Off-budget financing to the tune of UGX.0.185Bn was not declared to
the PS/ST and as such no supplementary appropriation was issued
as guided by the PS/ST.
v) The entity had an approved budget of UGX.7.28Bn out of which
UGX.6.52Bn (89.6%) was warranted resulting in a shortfall of
UGX.0.76Bn. This affected implementation of activities.
vi) At the time of inspections (31st July 2024), 3,396 acaricides worth
UGX.0.407Bn had not yet been delivered to the intended
beneficiaries even though the Agency had ceased.
vii) The entity collected 6,524 samples at a cost of UGX.0.238Bn, out of
which, tests were undertaken on only 2,250 (34%) samples. The
balance of 4,274 samples were archived in the sample bank to be
transferred to MAAIF for future use.
Cotton Development Agro-industrialization Unqualified i) A decision was made to merge, mainstream and transfer the
Organization functions of CDO to the MAAIF without a clear strategy on how the
staff of CDO are to be validated and absorbed within MAAIF.
ii) There were no clear procedures through which government assets
under CDO are to be accounted for and handed over to MAAIF. The
assets may be lost during the transition if no clear handover
procedures are followed.
iii) At the time of the merger, CDO had buffer stocks worth UGX.28.1Bn
comprising of physical stocks of cotton lint bales and work in
progress as at 30th June 2024. Considering that the rationalization
process is ongoing there is a risk that the spinners will not be able to
access the buffer facility which may disrupt production.
iv) UGX.5.9Bn (35%) had not been released to complete the
construction of the processing seed factory in Pajule and as such,

365
 several works of the seed processing plant had not been undertaken.
v) A private ginner was processing and packing the seed into 3kg packs
and selling each pack to the farmers at UGX.3000 per bag in
contravention of the MoU that required that the seed be handed over
to CDO for distribution to farmers. As such, the ginner is using the
facility without any return despite the substantial investment by
Government.
vi) 27,230 bottles of pesticides were still in the Uganda Ginners and
Cotton Exporters Association (UGCEA) stores in Luzira at the time of
my report, yet the first crop of cotton was due for harvest in October
2024.
vii) Although procurement and processing of cotton seeds and the
distribution to the farmers is the mandate of CDO, these activities
were being done by the private sector players under the Uganda
Ginners and Cotton Exporters Association who fund the entire
processing of seed and distribution to the cotton farmers.
viii) The entity had an approved budget of UGX.5.37Bn out of which
UGX.5.28Bn (98%) was warranted resulting in a shortfall of
UGX.83Mn. Of the warranted amount, UGX.5.25Bn was utilized which
affected the implementation of planned activities.
ix) I assessed the extent of implementation of eight (8) outputs with 20
activities worth UGX.2.44Bn and noted that all the eight (8) outputs
were fully implemented.

Dairy Development Agro-industrialization Unqualified i) A decision was made to merge, mainstream and transfer the
Authority (DDA) functions of DDA to MAAIF without; a clear strategy on how the staff
of DDA are to be validated and absorbed within MAAIF.
ii) There were no clear procedures through which government assets
under DDA are to be accounted for following the rationalisation. The
assets may be lost during the transition if no clear handover
procedures are followed.
iii) As at 30th June 2024, DDA had arrears amounting to UGX.361Mn.
Besides, there was no clear strategy on how these arrears will be
absorbed and cleared by MAAIF.
iv) The Authority had 16 pieces of land measuring approximately 2.597
hectares which had no land titles. During the year, a sum of
UGX.27Mn was spent on securing five (5) land titles, which activity
was not concluded.

366
 v) Ten (10) of the Authority’s rented properties had no rental
agreements or had agreements that had expired, as such it was not
possible to determine how much rent was payable to the Authority
from the properties.
vi) DDA had a budget shortfall of UGX.948Mn. Despite the shortfall,
UGX.297Mn of what was availed was not utilized. This affected the
implementation of planned activities.
vii) Three (3) outputs with 26 activities and expenditure worth
UGX.618Mn were fully implemented, while nine (9) outputs with 51
activities worth UGX.13.33Bn were partially implemented.
viii) I undertook physical inspections on a sample of five (5) projects
worth UGX.3.35Bn and observed that they had delays from the
expected completion dates. I also undertook a follow-up on three (3)
completed structures worth UGX.887Mn and noted that the
structures were not functional.
ix) I conducted a Value for Money audit on the regulation of the dairy
industry in Uganda by DDA and issued a separate report.
x) Out of nine (9) Parliamentary recommendations given in the
Treasury memorandum on the report of the Public Accounts
Committee - Central Government on the report of the Auditor
General for the financial year 2020/21, three (3) recommendations
were fully implemented, four (4) were partially implemented, while
two (2) were not implemented at all.
Development Governance and Unqualified i) The Project had accumulated domestic arrears totaling to
Response to Security UGX.6.1Bn.
Displacement ii) Variations amounting to UGX.6.8Bn were not approved by the
Impact Project Project Implementation Support Team
(DRDIP) IDA Credit iii) There were no budget enhancements for districts and ministries to
No P152822-UG maintain DRDIP projects such as the constructed schools, health
centres, markets and roads among others.
iv) There were delayed payments to suppliers by over 140 days on
average after delivery of services. This affected the operations of the
project implementation timelines.
v) The MIS that was developed to ensure timely information for
decision making was incompatible with the NIRA system/data base,
community facilitators had limited computer skills while some
districts had network problems and unstable electricity, among
others.

367
 vi) The project expected total disbursements of USD.200,000,000 but
received USD.200,758,960. The excess of USD.758,960 was foreign
exchange gains.
vii) Over the project life USD.1,570,490 was not absorbed which affected
purchase and installation of medical equipment in 55 health facilities
viii) Out of the 23 sampled activities worth UGX.44.4Bn, 21 activities
worth UGX.30.5Bn were fully achieved, while the remaining two (2)
worth UGX.13.9Bn were partially implemented.
ix) Solar panels installed at Glory Land and Unity Primary Schools worth
UGX.0.053Bn was weak and would not support the school for more
than four (4) hours after sun set.
x) There were shortcomings identified in the distribution of trees by the
project such as beneficiaries receiving different varieties of tree
seedlings from what they had requested for, poor quality seedling
and supply of trees during the dry season among others.
xi) The water in the pond reservoir and the fishponds for some of the
sub projects was contaminated while the supplier had supplied less
fish feeds than what had been paid for in some cases.
xii) There were challenges of poor management of tree plantations,
planting trees on less than the agreed acreage and insufficient
training and support from implementing partners and district
technical persons.
xiii) Terego district never benefited from the capacity building for
beneficiaries despite the release of all the funds for this activity.
Directorate of Governance and Unqualified i) DCIC had total releases of UGX.157.08Bn, out of which only
Citizenship and security UGX.156.5Bn had been utilised by the close of the financial year.
Immigration Control ii) Out of the total warrants of UGX.157.09Bn, UGX.6.5Bn related to
(DCIC) classified expenditure while UGX.150.59Bn was for non-classified
entity operations. The balance of UGX.0.55Bn was meant for the
payment of pension and gratuity and the procurement of furniture.
iii) Sixteen (16) outputs, with 57 activities and expenditure worth
UGX.57.160Bn were fully implemented. Seven (7) outputs with 61
activities worth UGX.68.455Bn were partially implemented.
iv) Three (3) activities were only partially implemented despite the
release of the required funds. For example, although all the planned
funds were released, maintenance and servicing of the Namanve
NCIC Archive Center fire detection and suppression system,
Procurement of Network Access Drives (NAS) and simple storage

368
 media for the Passport office and Procurement of Orthopaedic
Wheelchairs for PWD applicants was partially implemented.
v) Three (3) activities amounting to UGX.0.377Bn were not
implemented despite NCIC receiving the funds. The unimplemented
activities were the renovation of Nakabat border offices, the
renovation of Lia staff quarters and the procurement of uniforms for
NCIC drivers.
vi) There were weaknesses noted in the management of short-term
visitor’s passes, including manual process for extending visitor
passes, along with the discrepancies between the system upload
date and the actual extension date, which increases the risk of
inaccurate record-keeping and difficulties in tracking extensions to
enforce immigration laws effectively
vii) The immigration laws provide for multiple-entry visas and other entry
permits with durations ranging from 6 to 36 months. However, there
is no policy to guide the management of multiple-entry visas. For
example, there is no specification on the duration a traveler can
spend in Uganda under each visit with a multiple-entry visa. This
oversight has led to cases where individuals on multiple-entry visas
remain in the country for up to 24 months without exiting.
viii) For other Entry Permits/Certificates of Residence, NCIC issues entry
permits and certificates of residence to non-Ugandans who meet the
respective requirements. One of the requirements for acquiring
Ugandan citizenship by registration is that the individual must have
legally and voluntarily migrated to Uganda and resided there for at
least 10 years. I noted that the NCIC is not issuing re-entry passes,
which presents a risk. Holders of permits and residence certificates
may leave the country for extended periods and return only for the
purposes of renewing their permits or acquiring citizenship,
circumventing the intended residency requirements.
ix) I observed a lack of structured IT policies and frameworks at NCIC.
For example, I noted that the IT risk management policy, IT change
management/ response policy, IT data governance policy and
backup and disaster recovery/business continuity policy were either
not yet developed or approved for use by the institution.
x) I noted the lack of an ICT department in the structure of NCIC to
provide technical support and maintenance of the ICT infrastructure
and systems. Furthermore, NCIC does not have enough designated

369
 staff to support its IT infrastructure. For instance, the 36 IT staff
recruited specifically for this purpose were allocated non-IT work of
the Directorate. As a result, the management of the IT infrastructure
(database and application) is carried out by the system vendor, M/s
Computer Medics Ltd, despite NCIC having several IT-qualified staff
on its payroll
xi) I observed that the approved structure for NCIC by the Ministry of
Public Service does not include key positions such as Principal
Accountant, Head of Internal Audit, and Human Resource Functions.
Removing such positions could lead to operational disruptions and
delays, lack of transparency in financial operations, and failure to
detect and address internal control weaknesses in time.
xii) I undertook a special audit of the pension payroll that covered a
period from FY 2019/20 to 2023/24 and a separate report was
issued.
xiii) I conducted a Value for Money audit on the management of work
permit processes by NCIC, and a separate report was issued.
xiv) Out of 25 recommendations given by Parliament on two Treasury
Memoranda of central government for the FY 2015/16 and 2020/21,
10 recommendations were fully implemented, 13 were partially
implemented while two (2) were not implemented.
Directorate of Governance and Unqualified i) DGAL had an approved budget of UGX.42.82Bn, out of which
Government security UGX.30.49Bn (92%) was warranted, resulting in a shortfall of
Analytical UGX.12.33Bn.
Laboratory (DGAL) ii) Out of the total warrants of UGX.30.49Bn, UGX.5.637Bn was for
classified expenditure, leaving UGX.24.85Bn for non-classified entity
operations.
iii) Out of the non classified warrants, UGX.22.48Bn was utilised by the
close of the financial year, resulting in an unspent balance of
UGX.2.37Bn.
iv) I assessed the extent of implementation of five (5) outputs with 36
activities worth UGX.24.85Bn and observed that all the five (5)
outputs with 36 activities were partially implemented.
v) The contract for the construction of the DNA data bank was behind
schedule. Whereas the contract provided for insurance coverage and
the procurement of two double-cabin pickup trucks for site
management and supervision, neither of these provisions had been
fulfilled.

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 vi) DGAL’s case backlog reduction strategy, developed in 2018, expired
before a new one was developed, despite the entity continuing to
accumulate case backlogs.
vii) Overall case performance stood at 68%, with the specific laboratory
performance as follows: Questioned documents laboratory 34%,
Forensic Biology 47%, Pesticide Residue 71% and Firearms at 78%.
This indicates that DGAL is not meeting the set target for completing
analysis and reporting on received cases within stipulated timelines.
viii) DGAL did not undertake the planned client satisfaction survey, which
would have enabled the Directorate to assess client confidence in
their services as well as identify areas of improvement.
ix) DGAL continues to face challenges in accurately reporting the status
of cases handled. For instance, several inconsistencies between the
number of cases concluded and those reported in the Directorate’s
annual statistics reports.
x) Whereas the approved staff structure has 124 staff, only 75 positions
have been filled, leading to a staffing shortage of 49 staff.
xi) I conducted a Special audit on gratuity payments and pension payroll
for DGAL for the period FY 2019/20 to 2023/24 and a separate
report was issued.
xii) I audited the DGAL Treasury Memorandum for the financial year
2020/21 and observed that out of the eight (8) recommendations
given by Parliament, four (4) were fully implemented, while the
remaining four (4) were only partially implemented.
MUST DISCO Project Human Capital Unqualified i) The project’s total available funds for the year were GBP 14,221, out
for the period 1st Development of which GBP 11,231 (79%) was spent, resulting in an unspent
August 2022 to 31st balance of GBP 2,990.
July 2023

Strengthening Natural Resources, Unqualified i) The project had planned to receive UGX. 9.23Bn in the project period
Drought Resilience Environment, Climate of 4 years, but only UGX.2.19Bn (23.7%) was disbursed.
of Small Holder Change, Water and ii) I assessed fifty-five (55) activities worth UGX1.32Bn and noted that
Farmers and Land Management targets for eight (08) activities worth UGX.0.59Bn had been fully
Pastoralists in the achieved while targets for the remaining forty-seven (47) activities
IGAD Region worth UGX0.73Bn were yet to be achieved
(DRESS-EA) Project iii) The Project had an approved budget of UGX.3.72Bn for the period 1st
for period ended 29th March 2023 to 29th February, 2024 out of which UGX.1.296Bn was
Feb 2024 remitted resulting in a shortfall of UGX.2.42Bn (34.8%). The total

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 amount available for spending totaled UGX. 1.38Bn
iv) Out of the total available funds of UGX. 1.382Bn, only UGX. 0.85Bn
was spent resulting in unspent balance of UGX.0.53Bn representing
an absorption level of 61.5%.
Drought Resilience Natural Resources, Unqualified i) Out of the approved budget of UGX.11.98Bn for the financial year
in the Karamoja Environment, Climate 2022/2023, UGX.6.59Bn (55%) was available for spending resulting
Sub-Region project Change, Water and in a shortfall of UGX.5.39Bn.
(KDR) for the period Land Management ii) Out of the total available funds of UGX.6.59Bn, only UGX.4.34Bn
ended 30th June (66%) was spent, resulting in unspent balance of UGX.2.25Bn.
2023

Drought Resilience Natural Resources, Unqualified i) Out of the expected donor disbursement of UGX.11.59Bn in the
in the Karamoja Environment, Climate second year of the project implementation, only UGX.3.45Bn
Sub-Region project Change, Water and (29.8%) was disbursed.
(KDR) for the period Land Management ii) Out of the expected GoU funding UGX.7.09Bn, only UGX.6.45Bn was
ended 30th June received representing 91% performance.
2024 iii) All the eight (08) activities worth UGX.1.12Bn that were sampled
were fully implemented.
iv) Out of the approved budget of UGX.11.11Bn for the financial year
2023/2024 only UGX.5.58Bn (50%) was available for spending
resulting in a shortfall of UGX. 5.53bn.
v) Out of the total available funds of UGX.5.58Bn, only UGX.3.95Bn
(71%) was absorbed resulting in unspent balance of UGX.1.63Bn.
East Africa's Centre’s Human Capital Unqualified i) The total disbursement to the project as at 30th June 2024 was USD.
of Excellence for Development 28.551Mn (90.64%) out of the total loan amount of USD.31.500Mn
Skills and Tertiary while the GOU counterpart funding was UGX.14.945Bn (106%) out
Education in of the expected funding of UGX.14052Bn.
Biomedical Sciences- ii) Out of the total available funds of UGX.10,967,439,135, UGX.10.315
Phase 1 (EAOI) Bn (94%) was spent resulting in an unspent balance of
Project Id No. P-Zi- UGX.652.153Mn.
Ibo-24, Loan iii) The installation of ICT Equipment for training and telemedicine that
No.21001500319962 was delivered in 2021 at a contract price USD.1,064,510.49 had not
(ADB-Support to been done due to the delayed completion of the multipurpose
Uganda Cancer building where it is supposed to be housed.
Institute) iv) The Institute signed a contract with a Contractor for the partial
completion of the construction of the multipurpose building at a
contract price of USD.2,750,715. This was above the un-spent funds
on the original contract with M/s Roko of USD.2,101,985.40 by

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 USD.648,729.6.
v) The supply and installation of a Magnetic Resonance Imaging System
(MRI) at a contract price of USD.2,415,000 was extended to May
2025 from 2020 due to the delayed completion of the multipurpose
building. However, the advance payment guarantee of USD.483,000
had expired on 18th October, 2022 without renewal.
vi) The supply and installation of medical laboratory furniture at a
contract price of USD.883,000 by 30/06/2020 was extended to June
2025. However, the supplier requested for contract variation of
USD.57,530.38 due to economic changes creating a contingent
additional funding requirement.
Economic Policy Human Capital Unqualified There were no material reportable issues
Research Centre Development
(EPRC)
Education Service Human Capital Unqualified i) The Scheme of Service for teachers was not fully implemented.
Commission (ESC) Development ii) The Commission had an approved budget of UGX.11.951Bn, all of
which was warranted and utilized.
iii) I assessed the implementation of 3 outputs with 20 activities worth
UGX.3.295Bn and observed that one (1) output with 9 activities and
expenditure worth UGX.0.656Bn was fully implemented while two (2)
outputs with 11 activities worth UGX.2.639Bn were partially
implemented.
Electoral Governance and Qualified i) The Commission transferred UGX.4.32Bn to the districts of Wakiso,
Commission (EC) security Kampala, Mukono and Mpigi for payment of activities meant to be
undertaken by the Commission’s Head Office. These funds remained
unaccounted for.
ii) Funds amounting to UGX.257.46Mn were irregularly charged from
inappropriate budget and expenditure codes without seeking and
obtaining the necessary approvals.
iii) The Commission accumulated domestic arrears of UGX.10.49Bn.
Although the arrears had reduced by 12% from UGX.11.97Bn, the
amount remains substantial.
iv) The Commission made payments of UGX.212Mn to clear court
related arrears that were not disclosed in the prior year.
v) The Commission delayed conducting elections for women and local
councils with a cost of UGX.96.57Bn, due to lack of funds.
vi) The Commission delayed in the implementation of phase 1 activities
of the road map for the 2025-2026 general elections including field

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 survey for voter turn-up, digitizing of election documents and
acquisition of specialized printer equipment, system and materials.
vii) The Commission had a shortfall of UGX.61.04Bn meant for
conducting of women Council and administrative Councils (LCI & II)
elections, demarcation of electoral areas and reorganization of
polling stations countrywide.
viii) The Commission did not receive warrants amounting to UGX.2.27Bn
meant for recruitment of staff and an election observation mission
among others.
ix) I assessed seven (07) outputs with 22 activities worth UGX.62.69Bn
and noted that two (02) outputs with six (06) activities worth
UGX.46.07Bn were fully implemented, four (04) outputs with 13
activities worth UGX.11.72Bn were partially implemented and One
(01) output with three (03) activities worth UGX.4.89Bn was not
implemented at all.
Enhancing National Agro-Industrialisation Unqualified i) Out of the 2,540 PAPs with claims worth UGX.14.1Bn in Bugweri and
Food Security Bugiri districts, only 326 (13%) PAPs had been paid thier
Through Increased compensation worth UGX.5.5Bn (39%)
Rice Production ii) 819 PAPs with claims worth UGX.081Bn from 17 villages under Bugiri
Project (ENRP) for District had not yet been verified by the project management
the year ended 30th iii) There were delays in contract implementation by the contractor due
June 2024 to inadequate capacity despite an advance of UGX.15Bn. Out of the
47 units of equipment expected on site, only 15 (32%) units were on
site at the time of inspection. Besides some of the equipment was
non-functional
iv) Physical progress was estimated at only 4.8% and several
preliminary activities had not been implemented by the contractor.
Failure to execute preliminary site works despite advance payment
resulted in outstanding commitments to the tune of UGX.89Bn
v) Once Kitumbezi multi-purpose dam and Naigombwa Irrigation
scheme are completed, it will be difficult for the cooperatives and the
small holder farmers to effectively operate and maintain them
without government support owing to the size of the investment.
vi) Although the project closed on the 30th June 2024, management had
not undertaken proper project closure procedures. This exposes
project assets to abuse and may hinder proper project evaluation
vii) Out of the expected cumulative disbursement of UGX.124.7Bn from
IDB, only UGX.27.4Bn was availed resulting in a variance of

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 UGX.97.2Bn (78%). Further, out of the expected UGX.134.1Bn from
GoU and PEARL, only UGX.6.3Bn was availed. This affected the
achievement of most of the project intended objectives.
viii) Farm machinery equipment worth UGX0.76Bn was lying idle in the
Ministry yard and at the various police posts more than 15 months
after delivery.
Equal Opportunities Human Capital Unqualified i) Receivables of UGX.248Mn have remained outstanding for more than
Commission (EOC) Development one year.
Programme ii) Properties worth UGX.5.238Bn were disclosed in the commentary by
the Accounting Officer instead of the main financial statements.
iii) Nine (9) outputs with 112 activities worth UGX.18.94Bn were
assessed of which 2 outputs with 2 activities worth UGX.0.213Bn
were fully implemented while Seven (7) outputs with 110 activities
worth UGX.18.725Bn were partially implemented.
iv) The entity received supplementary funding UGX.600Mn which was
not requested by the Accounting Officer- and didn’t meet the criteria
for supplementary funding.
v) Out of the 10 recommendations in the Treasury Memorandum, only
2 (20%) were fully implemented and 8 (80%) were partially
implemented.
Electricity Energy Development Unqualified i) The authority budgeted to receive UGX.40.69Bn as income, however
Regulatory Authority UGX.43.55Bn (107%) was earned. The good performance was
(ERA) attributed to the revision of generation levy from 0.3% to 0.7%.
ii) Out of the 39 performance areas set for the year, 18 (46%) were
fully achieved, 16 (41%) were substantially achieved, while 5 (13%).
The outcomes that were not fully achieved include reduced weighted
average end-user electricity tariffs, reduction of the duration of
interruptions, increase the national electricity access rate and
enhancing employee innovativeness.
iii) Out of the total receivables balance of UGX.1.83Bn reported,
UGX.1.13Bn (62%) relates to license fees and has been outstanding
for over 91 days. Similarly, ERA’s obligations amounting to
UGX.53.79Mn have been outstanding for over 5 years.
iv) Only 5 (11%) of the 59 court cases in which the authority was
involved were settled. The 54 Pending cases may pose unexpected
future financial challenges if not resolved timely.
v) Only 43% of the planned procurements were implemented and
contracts awarded, arising from cancelations, procurements initiated

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 late in the year, and others that were taken over by donors.

Energy for Rural Energy Development Unqualified i) The project closed on 30th June 2023, with a disbursement grace
Transformation period until 31st December 2023. The cumulative disbursements by
Project Phase III - the donor were USD.105.3Mn (99%) out of the expected USD
Under the Rural 105.8Mn, while GoU counterpart disbursements were at 57% (USD.
Electrification 18.68Mn out of USD.33Mn).
Programme (ERT ii) Under the Grid Extensions subcomponent, the distribution lines 5-10
III-REP) of 307kms were dropped at GOU’s request; Only 1,478km out of
1,640km (90%) of MV lines was achieved. The associated LV lines
constructed amounted to 2,417km exceeding the revised planned
target. 15 Lines had been completed and commissioned while the
rest are still being completed.
iii) Under the Grid Intensifications subcomponent, 958 out of the 1,234
planned transformers were installed and commissioned, 93 were
pending commissioning, and 183 were not yet installed. Only
92,132(61%) of the targeted 150,000 connections were made.
iv) Out of a revised number of Project Affected Persons (PAPs) of
55,285 approved for compensation, 50,360 PAPs were paid, leaving
4,925 PAPs (8.9%).
v) Management did not put in place sustainability measures to ensure
that the gains made during the project lifetime are not lost post-
project closure.
Energy for Rural Energy Development Unqualified i) The project closed on 30th June 2023, with a disbursement grace
Transformation period until 31st December 2023. The cumulative disbursements of
Project - Phase III USD.12.65Mn and USD.7.6Mn from IDA-credit and GoU were more
(ERT III) PCU than the expected USS.11.80Mn and USD.2.5Mn. COVID-19 caused
substantial delays that led to project extensions, warranting
additional funds.
ii) Out of the total 16 planned project activities, 10 were fully achieved,
while 6 were partially achieved due to procurement and
compensation challenges. As a result, some activities like the
geothermal development preparation study were dropped.
iii) Out of the total project budget of USD.5.51Mn for the financial year
2023/2024, USD.5.49Mn (99.6%) was received. The shortfall was
meant for monitoring and supervision of construction projects.
iv) Out of the total available funds of USD.5.93Mm, USD.5.89Bn (99%)
was spent, donor funds amounting to USD 0.015 was refunded to

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 the World Bank.
v) Management did not put in place sustainability measures to ensure
that the gains made during the project life time are not lost post
project closure.
Enhancing Natural Resources, Unqualified i) The expected cumulative donor disbursement of UGX.27.12Bn were
Resilience of Environment, Climate all received representing a 100% performance.
Communities to Change, Water and ii) Out of the expected GOU counterpart funding of UGX.3.50Bn, only
Climate Change Land Management UGX2.05Bn was remitted resulting in a 58% performance.
Through Catchment iii) I sampled sixteen (16) activities worth UGX.1.31Bn and noted that
Based Integrated targets for fourteen (14) activities worth UGX.1.28Bn had been fully
Management of achieved while targets for the remaining two (2) activities worth
Water and Related UGX.0.03Bn were not achieved
Resources in Uganda iv) The Project had an approved budget of UGX.1.603Bn for the period
(EURECCCA) to December 2023 out of which UGX.1.603Bn was released thus
resulting to 100% performance. The total funds available for
spending amounted to UGX.1.641 including rolled over unspent
funds
v) The total available funds of UGX1.64Bn, were all spent representing
an absorption level of 100%
Farm Income Natural Resources, Unqualified i) UGX.12.06Bn was the total cumulative amount of undisbursed funds
Enhancement and Environment, Climate by December 2023
Forestry Change, Water and ii) I noted that out of the five (5) targeted activities worth
Conservation Project Land Management UGX.221.25Bn, four (4) activities worth UGX.25.76Bn had been
Phase II (FIEFOC II) fully achieved while targets for the remaining one activity worth
UGX.195.49Bn was partially achieved.
iii) Out of the approved budget of UGX.26.19Bn for the financial year
2023/2024, UGX.17.75Bn (68%) was available for spending resulting
in a shortfall of UGX.8.44Bn.
iv) Out of the total available funds of UGX.17.75Bn only UGX.16.60Bn
was spent resulting in unspent balance of UGX.1.14Bn representing
an absorption level of 94%.
v) The delayed completion of the construction of Wadelai Irrigation
Scheme in Packwach District due to abandonment of the site and
inability to liquidate the performance bank guarantee.
vi) There was no sufficient evidence of sustainability measures put in
place to ensure that the gains made during the project life time are
not lost once the project closes.
vii) Only UGX.165.12Mn (7%) out of UGX.2.41Bn loaned to Enable Youth

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 Projects had been recovered by 30/06/2024 leaving a balance of
UGX.2.26Bn outstanding.
Farm Income Natural Resources, Unqualified i) The project had planned to receive donor funding of UGX.162.84Bn
Enhancement and Environment, Climate in the project period of 2 years, but only UGX.2.55Bn was disbursed
Forestry Conversion Change, Water and representing 1.7% performance.
Project Phase III Land Management ii) The project received GoU counterpart funding of UGX.2.39Bn.
(FIEFOC II) However, I noted that GoU counterpart contribution was not broken
down per year.
iii) I sampled twenty (12) activities and noted that 8 activities worth
UGX.2.43Bn had been fully achieved while targets for the remaining
four (04) activities were not implemented due to non-release of
funds.
iv) The Project had an approved budget of UGX.31.43Bn for the
financial year 2023/2024, out of which UGX.3.07Bn (Donor and GoU)
was released resulting in a shortfall of UGX.28.36Bn, representing
9.7% performance. The total amount available for spending was
UGX.4.38Bn, including rolled over unspent funds.
v) Out of the total available funds of UGX.4.38Bn only UGX.3.72Bn was
spent, resulting in unspent balance of UGX.0.66Bn representing an
absorption level of 85%.
vi) There was delayed procurement of Civil works for Construction of
Sipi Irrigation Scheme.
Strategic Towns Natural Resources, Unqualified i) I compared the total cumulative disbursements of project funds as of
Water Supply and Environment, Climate 30th June 2024 against the project financing agreement and noted
Sanitation Project Change, Water and that the total cumulative disbursements to date were less than
(STWSSP) Land Management expected.
implemented by ii) The project had planned to receive US$62.48Bn cumulatively and the
MWE) actual receipts were US$57.09Bn resulting in deficits of US$5.40Bn in
the project period of 5 years. In addition, all planned receipts from
GoU of US$9.23Bn were received 100%.
iii) A sample of twenty-eight (28) activities worth UGX.267.53Bn
indicated that targets for twenty-three (23) activities worth
UGX.201.80Bn had been fully achieved while targets for the
remaining five (5) activities worth UGX.65.73Bn were yet to be
achieved.
iv) The Project had an approved budget for external financing of
UGX.22.7Bn out of which UGX.48.01Bn was remitted, representing
211% performance. The total available funds for spending amounted

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 to UGX.58.11Bn.
v) Out of the total available funds of UGX.58.11Bn only UGX.58.03Bn
was spent resulting in unspent balance of UGX.0.08Bn representing
an absorption level of 99.8%.
vi) Delivery of services from eleven (11) implemented activities indicated
that nine (9) were fully implemented, hence improved service
delivery while two (2) were partially completed.
Fuel Marking and Sustainable Unqualified i) FMQP identified 230 non-compliant fuel stations, which increased by
Quality Monitoring Development of 43% from the previous year’s 161 non-compliant stations, however
Program (FMQP) Petroleum Resources there was no inspection metric and no volumes of the adulterated
product to facilitate computation of appropriate penalties.
ii) The quarterly procurement reports were incomplete and not
submitted to MEMD for subsequent submission to PPDA, which
undermines transparency.
iii) The program’s procurements were neither conducted by MEMD nor
UNBS as required by the MOU and therefore were not conducted
within e-GP. In addition, there were no framework contracts for
frequently required supplies such as laboratory consumables and
Motor vehicle repairs.
iv) The Program realized all its budgeted revenue of UGX.9.913Bn for
the financial year 2023/2024. The excess revenue performance
under penalty fees could imply an increase in adulterated fuel and
offenders, which should be investigated.
v) Out of the 31 planned activities from 10 outputs, 23 (74%) activities
were fully implemented, 5 (16%) activities were partially
implemented, while 3 (10%) were not implemented at all, despite
availability and absorption of all budgeted funds.
vi) There was no evidence of assessment of the program outputs
against targeted KPIs which not only compromises transparency and
accountability but also hinders the ability to evaluate the program’s
performance appropriately.
Global Fund Project - Human Capital Unqualified There were no reportable issues
Malaria Grant Development

Global Fund Project - Human Capital Unqualified There were no reportable issues
TB Grant Development

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Global Fund Project - Human Capital Unqualified There were no reportable issues
HIV Grant Development

Grid Expansion and Energy Development Unqualified i) Total cumulative disbursements of project component funds as at
Reinforcement 30th June 2024 against the project financing agreement was 105.5%.
Project (GERP) - ii) I assessed a sample of five (5) project activities against their
MEMD cumulative targets and noted that four (4) activities had been fully
achieved while one (1) activity (integrated power sector plan) was
dropped and therefore not implemented.
iii) The Project Component had an approved budget of USD. 683,854 for
the financial year 2023/2024 out of which USD. 611.294 (89%) was
realized implying a shortfall of USD. 72,560 (11%). The unreleased
funds were meant for the Consultancy for Biodiversity Offset
Assessment.
Grid Expansion and Energy Development Unqualified i) Cumulative disbursements were USD.77.47Mn (100%), while GoU
Reinforcement counterpart funds were UGX.30.80Bn, representing 91% of the
Project (GERP) - expected UGX.33.59Bn
UETCL) ii) I reviewed the implementation of 3 project components with six (6)
activities and noted that only one (1) activity worth USD.784,937
was fully achieved, while five (5) worth USD.56,618,229 were
partially achieved.
iii) The Project had an approved budget of USD.50,413,740 for the
financial year 2023/2024, out of which only USD.11,970,000 (24%)
was realized. The project’s absorption level was 59%, which affected
implementation of Community Development plans and Livelihood
restoration Action plans.
iv) Only 3,410 (93.46%) of the total 3,583 PAPs have been
compensated, the pending 173 were due to land ownership disputes,
survey queries, insufficient documents from PAPs and pending court
cases.
Gulu University Human capital Unqualified i) Gulu University entered a contract with M/S Chongqing International
development Construction Corporation (CICO) on 19th June 2019 at a contract
sum of UGX.30Bn. Two interim payment certificates totaling
UGX.2,337Bn were submitted by the Company for payment.
However, due to the delay of one year to pay the amount, the
University had to pay interest of UGX.527.5Mn.
ii) The University paid UGX.18.9Mn to suppliers of the University who
had supplier numbers, contrary to E-Cash payment guidelines.

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 iii) Three employees were advanced UGX.14.7Mn however, the funds
were not recovered during the financial year, contrary to the human
resource manual.
iv) From the review and analysis of the HCM payroll register and IFMS
payment file, I noted that 6 staff were paid a total of UGX.99.1Mn off
the HCM payroll.
v) I noted that the University had no disposal plan for numerous assets
recommended to be boarded off by the Board of Survey.
vi) The University had an approved budget of UGX.68.65Bn out of which
UGX. 68.52Bn (99%) was warranted, resulting in a shortfall of
UGX.0.13Bn.
vii) The University had total warrants of UGX.68.517Bn out of which
warrants worth UGX 68.501Bn had been utilized by the close of the
financial year, hence a variance of 0.016Bn representing 99.9%
viii) I assessed a total of 49 outputs with 489 activities worth UGX 68.52
Bn and noted that Twenty-eight (28) outputs with 235 activities and
expenditure worth UGX 55.72 Bn were fully implemented, while
twenty-one (21) outputs with 254 activities worth UGX 12.80 Bn
were partially implemented.
ix) Out of the 3 sampled projects, one (1) project worth UGX 30.12Bn
had delayed for more than a year.
x) I reviewed teaching loads for academic staff for Semester 1 and 2 in
academic year 2023/2024 and noted that in semester one, 52 staff
were allocated less than 10 hours a week to teach, 107 staff were
allocated more than 10 hours a week while 72 staff were allocated
less than 10 hours a week to teach and 84 staff were allocated more
than 10 hours a week.
xi) Review of the post graduate students revealed that one hundred
forty-seven (147) masters’ students have taken more than two
academic years to complete research for the master’s program which
is beyond the ideal programme duration
xii) Review of the internal audit plan for the year 2023/2024 revealed
that the unit did not perform all the planned activities. Besides, the
internal audit plan presented was not approved by the Audit
Committee.
xiii) I observed inadequate facilities at Kitgum campus which include
limited equipment for practical subjects such agriculture, music
science, limited office and lecture space and furniture to support the

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 increasing students’ enrolment and the health unit was managed by
a single staff that worked throughout the week with no essential
drugs and equipment were in short supply. The unit remains closed
during the weekend whereas students attend lectures over the
weekend.
Health Service Human capital Unqualified i) Health Service Commission (HSC) was assessed by the Uganda
Commission (HSC) development Revenue Authority (URA) to have outstanding taxes in regard to
PAYE (Pay As You Earn) of UGX.1.407Bn and WHT (Withholding Tax)
of UGX.0.009Bn. However, management did not reflect the tax
arrears in the financial statements due to dissatisfaction based on
assessment.
ii) The Commission had an approved budget of UGX.12.209Bn out of
which UGX.11.545Bn was warranted resulting in a shortfall of
UGX.0.665Bn. The UGX.0.665Bn that was not warranted relates to
acquisition of furniture and fittings, coordination of HSC activities,
purchase of small office equipment and strengthening the operations
of the hubs among others.
iii) Out of the total warrants of UGX.11.545Bn an amount of
UGX.11.097Bn had been utilised by the close of the financial year.
The balance of UGX.0.449Bn was meant for activities like audits,
recruitment of staff, development of the electronic document
management system, integration of NITA-U and e-RS system among
others.
iv) I noted that the budgets for all the planned outputs were not
supported by individual activity costing and budgets.
v) I assessed the extent of implementation of six (6) partially quantified
outputs and noted that four (4) outputs had all the eight (8)
quantified activities fully implemented while two (2) outputs with a
total of nine (9) quantified activities were partially implemented.
vi) I reviewed the functionality of the e-recruitment system and
observed that there was need for a more effective means of
communication, such as SMS. Additionally, whereas the Health
Service Commission had backups for information such as adverts and
job descriptions, there was no backup for candidate data applications
and profiles.
vii) The Commission set up regional Hubs to facilitate health workers
who have difficulty accessing the internet to submit their
applications. However, only 10 out of the planned 18 hubs were

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 equipped.
viii) I noted delays in recruitment of health professionals, and this was
attributed to delays in recruitment planning, initiation and issuance
of recruitment minutes.
ix) I noted a lack of a mechanism to track recruitment requests. For
instance, recruitment clearance and recruitment minutes relating to
advertised positions were not referenced with the reference number
of the advert.
x) There were several posts namely, Consultant (Ophthalmology),
Consultant (Pathology), Consultant (Psychiatry), Consultant (Internal
Medicine), Medical Officer special grade (Public health), Medical
Officer special grade (Anesthesia), Medical Officer special grade
(Emergency medicine), Medical Officer special grade (ENT), Medical
Officer special grade (Intensive Care) advertised by the Health
Service Commission did not attract suitable applicants.
xi) Several District Service Commissions did not submit any performance
reports to the Health Service Commission during the financial year
under review.
xii) Ten (10) District Local Governments did not have substantive
secretaries while seven (7) were not fully constituted. There were
also reports indicating non-payment of retainer fees due to
inadequate budget allocations.
xiii) I undertook a special audit of the pension payroll, and a separate
report was issued.
Uganda Medical and Human capital Unqualified i) Out of the total budgeted funds of UGX.2.218Bn, UGX.2.218Bn was
Dental Practitioners development spent, representing 100% absorption level
Council (UMDPC) for ii) The entity lacked key performance indicators, targets, quarterly and
period ended 30th annual performance reports and did not cost the individual activities.
June 2023 This impeded the assessment of implementation of planned
activities.
iii) All the 16 employees were fully verified, although 2 were on more
than 1 payroll
iv) Out of 26 approved positions, 16 were filled, leaving a gap of 10
positions
v) UMDPC is not enrolled on the IPPS/HCM, which undermines the
rationalisation of the HCM investment
Uganda Nurses and Human capital Unqualified i) The Council was to be merged with other bodies in the FYs 2021/22
Midwives Council development to 2022/23. This was a material uncertainty casting doubt on the

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(UNMC) for period Council’s ability to continue as a going concern
ended 30th June ii) Out of the NTR budget of UGX.4.348Bn, UGX.3.274Bn (75%) was
2023 realized, resulting in a shortfall of UGX.1.075Bn
iii) The GoU Subvention budget of UGX.75Mn was fully realized,
representing 100% performance
iv) Out of the budget of UGX.200Mn expected from Implementing
Partners, UGX.47.8Mn (24%) was realized, resulting in a shortfall of
UGX.152.2Mn
v) Out of the total of UGX.4.599Bn available to the entity, UGX.4.039Bn
(88%) was spent, resulting in un-spent funds of UGX.559.4Mn
vi) The budgets for the thirty-five (35) outputs assessed worth
UGX.1.419Bn were supported by individual activity costing and
budgets.
vii) Out of 35 fully quantified outputs with a total of 35 activities worth
UGX.1.419Bn, 19 outputs with 19 activities worth UGX.0.476Bn were
fully implemented, 11 outputs with 11 activities worth UGX.0.403Bn
were partially implemented and 05 outputs with five 5 activities with
expenditure of UGX.0.540Bn were not implemented.
viii) Out of 36 employees (February payroll), 35 (97%) who appeared for
the headcount presented all the pre-requisite documents/information
and were fully verified.
ix) One (1) employee presented the pre-requisite documents but was
not verified having attained the mandatory retirement age of 70
years, applicable to all employees of the Council. A total of
UGX.114.5Mn was irregularly paid to this employee between Sept
2021 and June 2023 (period after attainment of the mandatory
retirement age)
x) Out of budgeted and approved wage funds of UGX.6.651Bn for four
financial years (2019/20-2022/23), only UGX.5.671Bn (85%) was
utilized, resulting in unutilized funds amounting to UGX.979.6 Mn
xi) Out of thirty-six (36) staff (February 2023 payroll), 10 were recruited
in October 2022 without obtaining clearance from the Ministry of
Public Service as communicated in letter (REF: MSD/135/165/01 of
19th April 2021 to all Accounting Officers and Heads of Institutions).
xii) Consequently, UGX.203,483,796 was irregularly spent on their
recruitment expenses (UGX.21.9Mn) and emoluments
(UGX.181.6Mn) in the financial year 2022/23
xiii) Four (4) former employees of the Council, who were on other

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 Government entity payrolls were paid a total of UGX.192.4Mn by
Council. This is irregular and the expenditure is recoverable.
xiv) Out of the 59 approved positions, 38 (including the Registrar and
Deputy Registrar who are required by the UNMC Act to be public
servants and were on the payrolls for MoH and Mulago Specialized
Women Hospital respectively) were filled, leaving a gap of 21
(35.6%) positions
xv) A total of UGX.5.671Bn was paid off the IPPS/HCMS payroll, which
makes tracking Government payroll expenditure difficult
Uganda National Human capital Unqualified i) Out of the subvention budget of UGX.240Mn, a total of UGX.205Mn
Health Research development (85%) was realized, resulting in a shortfall of UGX.35Mn
Organization ii) All the funds realised (UGX.205Mn) were utilized for Wage
(UNHRO), for period (UGX.168Mn) and Goods and services (UGX.37Mn)
ended 30th June iii) All the five (5) outputs with a total of nine (9) activities worth
2023 UGX.37Mn were fully implemented
iv) All 11 (100%) employees who appeared for the validation exercise
presented all the pre-requisite documents/ information and were
fully verified
v) Out of the UGX.741Mn budgeted and approved as wage funds for
four financial years, only UGX.706Mn was availed and was fully spent
vi) Salaries amounting to UGX.35Mn for the month of June 2023 were
not paid due to the shortfall in the subvention disbursement
vii) Employees were paid using wrong scales/notches leading to
underpayment of UGX.446.7Mn to 6 employees during the four
financial years.
viii) A total of UGX.706.3Mn was paid to employees off the IPPS/HCMS
payroll
ix) Out of the 26 approved positions, 11 were filled, leaving a gap of 15
positions.
Higher Education Human Capital Unqualified i) Out of UGX.96.667Bn that was due for recovery as at 30/06/2024,
Students’ Financing Development only UGX.1.833Bn had been recovered, leaving a balance of
Board (HESFB) UGX.94.834Bn, representing 98% unrecovered.
ii) Whereas the ILMIS was supposed to have the recovery module, but
the recovery component reports cannot be obtained from the
system.
iii) There were no repayment schedule/plan/agreements in the system
for the 14,695 student beneficiaries that have been taken on by the
Board from inception to date.

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 iv) Comparison of the entity’s strategic and annual work plans for the
last three (3) years with the functions in the mandate revealed that
the entity executed all functions apart from the one on exploring
modalities for resource mobilization for the scheme.
v) Out of the approved budget of UGX.45.856Bn the total funds
available for spending for the year amounted to UGX.43.927Bn which
was equivalent to 96% performance.
vi) The Board was availed UGX.43.88Bn out of which funds worth
UGX.38.8Bn (88.4%) had been utilised by the close of the financial
year, leaving a balance of UGX.5.08Bn (11.6%) unutilized.
vii) 10 outputs with 104 activities and expenditure worth UGX.3.138Bn
were fully implemented.
viii) Out of 27 activities, the entity fully implemented twenty-four (24)
activities worth UGX.0.653.6Bn, while three (3) activities worth
UGX.0.239Bn remained unimplemented.
Housing Finance Sustainable Unqualified There were no reportable issues
Bank Limited Urbanisation &
Housing

Housing Finance Sustainable Unqualified There were no reportable issues

Bank Limited (Pool Urbanisation &
Houses) Housing

Uganda Private Sector Unqualified There were no reportable issues

Development Bank Development
(UDB) Limited

Pride Microfinance Public Sector Unqualified There were no reportable issues

Limited (MDI) PML Development

Post Bank Uganda Public Sector Unqualified There were no reportable issues
Limited Development

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Hydropower Energy Development Unqualified i) Out of the total project budget of UGX 30Bn, UGX 27.9Bn (92%) was
Operations and disbursed, out of which UGX.19.2Bn was spent, representing an
Maintenance absorption level of 69%.
Excellence (HOME) ii) Many training courses under the project were short-term, tailored to
Project - 2023 the Engineering staff and do not result in certifications, which may
result into a knowledge gap when the grant finally ceases in two
years’ time.
Imagining Gender Human Capital Unqualified i) Out of the UGX.530,441,320 that was budgeted for, only
Futures in Uganda Development UGX.453,876,824 (86%) was spent, resulting in unspent balance of
(IMAGENU) (Project UGX.76,564,496
No. 17-07-AU) ii) UGX.4,277,000 paid to Komakech Daniel was not accounted for
implemented by
Gulu University for
the year ended 31st
December 2023

Industrial Court of Administration of Unqualified i) The entity had a total of 3,513 registered cases in the year under
Uganda Justice review. Of these, only only 529 (15%) were completed, leading to a
backlog of 2,984 cases. I also noted that 953 cases had partially
been heard during the year, but no judgements had been given.
ii) Entity did not undertake the mandate activities of adjudicating upon
questions of the law and fact arising from references to the
Industrial Court and Disposing of the labour disputes referred to the
court without undue delays.
iii) The entity had an approved budget of UGX.5.40Bn for the year
under and all the funds were released.
iv) Out of the total releases of UGX.5.400Bn, UGX. 5.337Bn was utilized,
leaving a balance of UGX. 0.063Bn which was for statutory
obligations.
v) The extent of implementation of activities for which funds were
availed and utilized was assessed. Out of 4 outputs with 7 activities
worth UGX.3.707Bn, two (2) outputs with 3 activities worth
UGX.1.507Bn were fully implemented and two (2) outputs with 4
activities worth UGX.2.200Bn were partially implemented.
vi) Three (3) outputs lacked individual activity costing, making it hard to
assess their performance.
Access to Justice Administration of Unqualified i) Out of the approved budget of UGX.89.329Bn, UGX.46.993Bn was

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sub-programme Justice released, resulting in a shortfall of UGX.42.336Bn (52.6%).
(JLOS SWAP) for the ii) The funds available to spend was UGX.77.125Bn, comprising the
financial year ended funds released, and cash balances brought forward from 13 entities
30th June 2023 of UGX.30.132Bn.
iii) Out of funds available to spend, UGX.53.404Bn (69.2%) was utilized,
leaving unspent balance of UGX.23.722Bn on the program bank
accounts of 16 entities, implying a negative effect on achievement of
service delivery.
iv) Some projects stalled due to funding cuts, reallocation of released
funds and the failure to absorb available funds. Management lacked
documented contingency measures to address such delays
v) Several activities that had earlier been funded but not completed, did
not receive disbursement in subsequent years for their completion.
These included the IT systems meant to support entity operations,
procurement of equipment and goods, consultancy services in
support of various initiatives, and construction of justice centres.
These may be abandoned before completion
vi) There was an overestimation of the wage cost by UGX.0.51Bn
vii) The sub-programme lacked a detailed risk assessment policy, risk-
management guidelines, or risk register as required under the
Treasury Instructions
viii) Despite JLOS swap developing nine (9) IT electronic systems across
the implementing entities, these were not integrated to enable
seamless data sharing despite the program providing funding for
integration.
Access to Justice Administration of Unqualified i) The sub-programme had an approved budget of UGX.79.09Bn, out
sub-programme Justice of which UGX.64.5Bn was warranted, resulting in a shortfall of
(JLOS SWAP) for the UGX.14.59Bn, representing an 82% performance. The funds that
financial year ended were not released were intended for payment of construction
30th June 2024 works, training, disposal of cases, digitisation of processes and
purchase of equipment, among others. In addition, the JLOS
implementing institutions had rolled over balances to the tune of
UGX.23.72Bn.
ii) Funds worth UGX.71.06Bn had been utilised by the close of the
financial year, resulting in an unspent balance of UGX.17.16Bn. Key
activities that were partially implemented or not implemented
despite the implementing entities receiving funds included the
construction of Justice Centres and regional offices and activities

388
 related to addressing the backlog of cases at investigation and
prosecution.
iii) I reviewed the project for digitising passport and work permit
records at DCIC. The slow progress of the digitisation process, with
only 38% of records digitised over seven (7) financial years,
highlights significant inefficiencies in achieving the intended goal.
This pace could delay the realisation of the expected benefits of
digitisation, such as improved record retrieval, enhanced storage
management, and better service delivery.
iv) I reviewed the management of the backlog of forensic investigation
cases at DGAL and noted that DGAL has had a declining trend of
backlog of cases over the past five (5) years. However, at the close
of the financial year on 30th June 2024, the outstanding case
backlog stood at 1,640 cases, which was a reduction of 7.5% from
the 1,773 cases as at 30th June 2023.
v) I reviewed the performance of the Industrial Court under the
Ministry of Gender during the financial year and noted that only
529 cases were completed out of the 3,513 registered and brought
forward cases. This shows only 15% performance of the actual
cases, with the balance of 2,984 cases in backlogs (85%).
vi) I assessed the performance of the Ministry of Internal Affairs’
program to develop regulations and strategies for explosives and
countering violent extremism and noted that whereas the Ministry
has put in place the Explosives Act Cap 319, it lacks the necessary
regulations to guide the implementation of the Act, particularly in
regulating the manufacturing, storage, use, dealing, importation,
exportation and transportation of explosives.
vii) I undertook a review of the Directorate of Civil Litigation (DCL)
system at the Ministry of Justice and Constitutional Affairs worth
UGX.974Mn to confirm if the entity developed the system in a
timely manner, was of acceptable quality, quantity and functionality
and noted that whereas the project system was expected to have
been launched in March 2024, following completion of development
and testing phases, at the time of inspection (September), the
system was not yet in use. I noted delays on various deliverables
for phase 1.
viii) I reviewed the performance of the digitisation of Birth, Death and
Adoption orders documents by NIRA and noted that since the

389
 Financial Year 2019/2020, when the specifications for the BDAR
were developed, the Authority has not been allocated any
additional funding for the development/acquisition of the system
and therefore EDMS has not been digitised.
ix) I reviewed the progress of the Electronic Document management
system (EDMS) and online publication system’s implementation at
the Uganda Law Reform Commission to assess whether the
systems have been properly developed and observed that whereas
the online publishing system has been developed, the EDMS was
not yet developed.
x) I reviewed the management of case backlogs at Uganda Police
Force and noted that for the financial year 2023/24, the force had
4,700 case backlogs budgeted at UGX.715Mn, out of which only
UGX.470Mn was released, representing 66% of the budget and
noted that only 506 juvenile cases were investigated out of the
planned 1,500 cases and that only 82 PSU cases were investigated
and concluded out of the planned 200 cases. The
underperformance of Uganda Police in clearing the case backlogs
implies that the program may not achieve its objective of the timely
delivery of justice for victims and accused individuals, which may
erode public trust in the justice system.
xi) I noted delays in construction works and project defects at the
JLOS implementing entities, i.e. Ministry of Gender, the Judiciary,
Ministry of Justice and Constitutional Affairs, Office of the Director
of Public Prosecutions, Uganda Human Rights Commission, Uganda
Police Force and Uganda Prisons Service. In light of the above,
project delays may result in increased direct and indirect costs,
while defects in the works may result in further delays when
correcting them. Any uncorrected defects may affect the building’s
integrity.
xii) I reviewed the management of resources by the Secretariat and
noted that the JLOS Secretariat does not have designated project
staff at each implementing government unit to monitor the
implementation of the project activities.
xiii) Funds meant for the implementation of activities were released
late. An analysis of the release schedules revealed that funds
scheduled for quarterly release were not made available to the
implementing institutions until three (3) months before the end of

390
 the financial year.
xiv) Over the years, the sub-programme has experienced persistent
underfunding. Whereas the sub-programme had a cumulative
budget of UGX.505.3Bn in the last five (5) years, the total funding
availed was UGX.338.4Bn, representing a shortfall of 33% or
UGX.166.8Bn.
xv) The implementing entities persistently failed to absorb funds
amounting to UGX.171Bn over the five (5) year period, which
affected the implementation of the sub-programme activities.
xvi) The sub-programme did not have a detailed risk assessment policy,
risk-management guidelines, or risk register.
xvii) Over the years, the JLOS swap (Access to Justice sub-programme)
has developed a number of IT systems across implementing
entities. However, these systems aimed at improving service
delivery have largely remained stand-alone with no provision for
interface among the sister agencies.
xviii) Out of 5 recommendations given by Parliament on the report of the
Public Accounts Committee Central Government on the report of
the Auditor General for FY 2015/16, two (2) recommendations were
fully implemented, two (2) were partially implemented while one
(1) was not implemented.
Amnesty Administration of Unqualified i) I observed that the Commission has made slow progress towards
Commission Justice developing the Transitional Justice Policy system, which has taken
over two (2) years.
ii) The Amnesty Commission had a total budget of UGX.2.466Bn, out of
which UGX.1.807Bn (73%) was warranted, resulting in a shortfall of
UGX.066Bn which affected payment of rent, purchasing brick-making
machines and sewing machines, thus affecting service delivery.
iii) The Commission had one output with 12 activities worth
UGX.1.807Bn that were assessed, of which ten (10) activities with
expenditure worth UGX.1.42Bn were fully implemented, while two
(2) activities worth UGX.0.38Bn were partially implemented. The
partially implemented activities included the reintegration of
reporters through training in agriculture and the holding of radio and
TV talk shows.
iv) The Commission failed to recover an advance payment to Toyota
Uganda for the supply of a van worth UGX.80Mn made in December
2021.

391
 v) The Commission did not budget for domestic arrears from the
previous year of UGX.454.56Mn. As a result, no domestic arrears
were settled during the year.
vi) Out of the approved structure of seven (7) Commissioners, positions
for only four (4) Commissioners were filled, with three (3) positions
remaining vacant.
vii) Out of the two (2) recommendations given by Parliament on the
Treasury Memorandum of the Report of the Public Accounts
Committee on Commissions, Statutory Authorities and State
Enterprises for the Financial Year 2020/21, one (1) recommendation
was fully implemented while one (1) was partially implemented.
Insurance Training Human Capital Unqualified i) The College reported a net surplus of UGX1.825Bn below the
College (ITC) Development previous year’s net surplus of UGX.1.881Bn. The fall was attributed
to the increase in depreciation expenditure from UGX.0.568Bn in
2023 to UGX.0.774Bn in 2024. The reduction may affect the entity’s
ability to meet future obligations and/or investments.
ii) The Return on Assets (ROA) shows the percentage of how profitable
a company’s assets are generating revenue. It measures
Management’s efficiency in using the enterprise’s assets to generate
earnings. The College’s ROA reduced to 12% from the previous
year’s 19%. The College’s ROA is way above the recommended 5%
standard.
iii) Approved procurements with an estimated cost amounting to
UGX.0.058Bn in the consolidated annual procurement work plan
were not implemented. Non-implementation of planned
procurements delays service delivery.
iv) The entity had an approved budget of UGX10.809Bn out of which
UGX11.064Bn was realized resulting in excess funds of UGX0.255Bn
representing 102.3% performance.
v) I assessed the extent of implementation of activities for which funds
were availed and utilised. A total of 4 outputs with 16 activities worth
UGX9.97Bn were assessed and the following was observed. Four (4)
outputs with 5 activities were partially implemented. Out of 16, the
entity fully implemented eleven (11) activities worth UGX.9.010Bn,
five (5) activities were partially implemented. Non-implementation of
activities affects the attainment of the entity’s mandate.
Investing in Forests Natural Resources, Unqualified i) Out of the expected Donor disbursements of USD 22.99Mn only USD
and Protected Areas Environment, Climate 12.95Mn (56.3%) was disbursed.

392
for Climate - Smart Change, Water and ii) Out of the expected GOU disbursements of USD 6.09Mn only USD
Development Project Land Management 5.59Mn (91.8%) was disbursed.
(IFPA-CD Project) iii) I sampled thirty-one (31) activities worth USD 7.36Mn and noted
Implemented by that targets for nineteen (19) activities worth USD 1.13Mn had been
Ministry of Water fully achieved while targets for Six (6) activities worth USD 6.20Mn
were partially achieved whereas Six (6) activities worth USD 0.02Mn
had not been achieved.
iv) Out of the approved budget of USD 19.26Mn for the financial year
2023/2024, USD 15.68Mn (81.4%) was available for spending
resulting in a shortfall of USD 3.58Mn.
v) Out of the total available funds of USD 15.68Mn only USD 4.50Mn
was spent resulting in unspent balance of USD 11.18Mn representing
an absorption level of 28.7%.
vi) There was delayed designing of training modules for skilling in wood
value addition which affected timely achievement of service delivery.
Irrigation For Natural Resources, Unqualified i) There was a delay by MAAIF to account for funds amounting to
Climate Resilience Environment, Climate UGX.678.18Mn which was advanced for implementation of various
Project (ICRP) Change, Water and activities under the project.
Land Management ii) Out of the expected cumulative disbursements of USD 150.50Mn,
only USD 35.33Mn had been disbursed representing performance of
23%.
iii) I sampled twenty-two (22) activities worth USD 31.31Mn and noted
that targets for twelve (12) activities worth USD 4.63Mn had been
fully achieved while targets for the remaining ten (10) activities
worth USD 26.67Mn were yet to be achieved.
iv) Out of the approved budget of USD 29.83Mn for the financial year
2023/2024, USD 28.76Mn (96%) was available for spending resulting
in a shortfall of USD 1.07Mn.
v) Out of the total available funds of USD 28.76Mn only USD 11.55Mn
was spent resulting in unspent balance of USD 17.20Mn representing
40% absorption.
vi) I noted that whereas 18,200 farmers were expected to benefit from
matching grant of US$ 16.6Mn, none had been enrolled at the time
of audit.
vii) There were delays in the construction of Kabuyanda dam with the
time lapse at 52%, financial progress at 20% as well as the
contractor abandoning the works and seeking to terminate the
contract.

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ITP Inclusive Green Human Capital Unqualified i) Out of the received grant of USD 106,820.23, only USD 97,647.17
Economy- Development was utilized, leading to unspent funds of USD 9,145.22
Environment for
Development
Initiative Project in
Uganda (MUK) for
the year ended 30th
Dec 2023
Joint Clinical Human Capital Unqualified i) Out of the approved budget of UGX.101.654Bn, UGX.109.415Bn was
Research Centre Development realized.
(JCRC) ii) I noted that UGX.12.429Bn remained un-utilized at the close of the
year under review.
iii) 60 outputs with 338 activities worth UGX.72.900Bn were assessed. I
noted that 42 outputs with 291 activities and expenditure worth
UGX.60.15Bn were fully implemented, while three (3) outputs with
twenty-five (25) activities worth UGX.0.661Bn were not implemented
at all.
iv) The remaining 15 outputs with 22 activities worth UGX.12.089Bn
were partially implemented. In this category, the entity fully
implemented sixteen (16) activities worth UGX.11.489Bn, four (4)
activities worth UGX.0.4Bn were partially implemented, while two (2)
activities worth UGX.0.2Bn remained unimplemented.
v) JCRC entered contracts worth UGX.259.1Mn with various suppliers at
contract prices that exceeded the reserve prices by a total of
UGX.23.2Mn.
Judicial Service Administration of Unqualified i) An analysis of the domestic arrears of the JSC revealed that the total
Commission (JSC) Justice arrears comprising PAYE reduced by 3% from UGX.137.98Mn in the
previous year to UGX.133.84Mn as at 30th June 2024. However, only
UGX.4.14Mn was budgeted to settle domestic arrears during the
financial year 2023/24, and this resulted in the failure to clear a
significant portion of the outstanding debt.
ii) The JSC had an approved budget of UGX.20.433Bn, out of which
UGX.18.075Bn (88%) was warranted, resulting in a shortfall of
UGX.2.358Bn. Out of this, warrants worth UGX.17.78Bn (84%) had
been utilised by the close of the financial year.
iii) Out of the 10 outputs with 84 activities worth UGX.16.681Bn which
were assessed, three (3) outputs with 14 activities and expenditure
worth UGX.2.402Bn were fully implemented while seven (7) outputs

394
 with 70 activities worth UGX.14.280Bn were partially implemented.
iv) Out of 70 activities, JSC fully implemented 53 activities worth
UGX.12.087Bn and 17 activities worth UGX.2.193Bn were partially
implemented.
v) I reviewed the performance of complaints handling by the JSC and
noted that whereas preliminary evaluation of complaints is expected
to take one (1) day, the JSC often takes longer than the planned
timeframe and has accumulated a backlog of complaints awaiting
evaluation. Additionally, JSC did not maintain summary records of
complaints received and evaluated, which prevented me from
assessing the performance of the Commission in complaints
evaluation.
vi) The Investigations Department handled only 54% of the cases
received from the evaluation unit under the Directorate of
Disciplinary Affairs. Out of the 154 complaints received during the
year, the Complaints Investigation Team investigated and
recommended further action for only 84 cases, resulting in a backlog
of investigation cases.
vii) I observed that out of the 198 cases received by the Disciplinary
Committee, only 106 were scheduled and heard, reflecting a
performance rate of 53%. This partial performance resulted in a
backlog of cases yet to be heard. In contrast, the full Commission’s
performance during the year was a 100% clearance rate of the cases
it received.
viii) I undertook a special audit of the pension payroll, and a separate
report was issued.
ix) From the reviewed Treasury memorandum of the Report of the
Public Accounts Committee on Commissions, Statutory Authorities
and State Enterprises for the Financial Year 2020/21, out of the
seven (7) recommendations made by Parliament, five (5) were fully
implemented, one (1) was partially implemented while one (1) was
not implemented.
Judiciary (Courts of Administration of Unqualified i) Management accrued domestic arrears to the tune of UGX.3.862Bn
Judicature) Justice in the Financial Year 2023/2024. Further analysis of the arrears
revealed that 73% of the debts were accrued for rent, which is
contractual and therefore unavoidable, and for the repair of motor
vehicles, which judicial officers need to deliver on their mandate.
ii) The Judiciary had an approved budget of UGX.392.778Bn, out of

395
 which UGX.362.637Bn was warranted, resulting in a shortfall of
UGX.30.14Bn, representing a 92% performance. The non-released
funds comprised of UGX.5.0Bn that was meant for payments of
contractual obligations incurred on projects constructed under the
JLOS SWAP that were unfunded, funding to facilitate the disposal of
court cases, and funding for various procurements, including motor
vehicles, furniture, ICT equipment and motorcycles.
iii) The Judiciary had total warrants of UGX.362.64Bn, out of which
warrants worth UGX.351.10Bn had been utilised by the close of the
financial year. The balance of UGX.11.54Bn was meant to pay
salaries for staff, pension and gratuity for retiring staff.
iv) Sixteen (16) activities worth UGX.65Bn were partially implemented
despite the release of the required funds. For example, I noted that
funds were available to dispose of cases and establish breastfeeding
and children’s playrooms, but these were partially implemented.
v) A review of 878 case files of civil suits completed in the year 2024
revealed that 781 (89%) had been completed within the stipulated
24 months, while 97 case files (11%) took between two (2) years to
14 years to be completed. In addition, A review of a sample of 889
case files of criminal cases completed in the year 2024 revealed that
706 cases (79%) were concluded within the stipulated 12 months,
while 183 cases (21%) took anywhere from one (1) year to as a long
as 22 years to conclude.
vi) I reviewed a limited sample of the performance statistics for plea
bargains in Judiciary and observed that the overall uptake and
success of the mechanism needs further improvement. For instance,
within the selected court performance, I found that plea-bargains’
success varied from a performance of 0% to as high as 100% within
the year.
vii) I reviewed the statistics on mediations to assess their performance
and observed a similar pattern of low updates. Overall, the clearance
rates for cases referred to mediation were 21%, while significantly
low performance was at higher courts.
viii) I observed that the average length on remand for petty offences was
2.7 months against a recommended duration of two (2) months and
six (6) months for capital offences against a recommended duration
of six (6) months, respectively. A review of the average time spent
on remand shows that over 1,722 petty offenders spent between

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 seven (7) to twelve (12) months on remand, while over 1,313 capital
offenders not yet committed to the High Court spent an average of
seven (7) to twelve (12) months on remand, all partly attributed to
slow judicial processes to conclude cases.
ix) I assessed the performance of key construction projects in terms of
project cost and timelines and observed that all six (6) projects were
behind schedule. However, none had exceeded their initial project
cost.
x) I reviewed construction projects initially started under the JLOS
SWAP project but later taken on using GoU funding, to assess both
physical and financial progress and observed that all but two (2) of
these projects have since been completed. The remaining two
projects have experienced time lags, resulting in the abandonment
and termination of the contracts.
xi) A review of the bail deposits revealed that there had been an
accumulation of the funds on the trust account overtime, with total
bail funds increasing by 50% from UGX.16.179Bn in the FY 2021/22
to UGX.24.291Bn at the end of the FY 2023/24. An analysis of the
refunds revealed that the percentage of bail refunds relative to the
bail balance remains below 30%, with only 10% refunded in the
financial year 2023/24.
xii) I undertook Information Systems Audit of the Electronic Court Case
Management System (ECCMIS) and a separate report was issued.
xiii) I undertook an audit of the two (2) Treasury Memoranda for FY
2015/16 and 2020/21 and noted that out of the 28 recommendations
issued by Parliament, 11 were fully implemented, 15 were partially
implemented, and two (2) were not implemented.
Kabale-Lake Human Capital Unqualified i) As of 30th June 2024, cumulative donor disbursements for the project
Bunyonyi and Development amounted to USD 3.84M, significantly lower than the expected USD
Kisoro-Mgahinga 67.23Mn, leaving undisbursed funds of USD 63.39Mn.
Road Improvement ii) Due to the slow disbursement of donor funds, the project incurred
Project ADB Credit commitment charges totaling USD 982,053.44 as at 30th June 2024
No. 2100150042497 since 11th August 2022.
and Ug-Project Id P- iii) Despite the financing agreement not specifying counterpart funding,
Ug-D00-003 the Government of Uganda had contributed UGX.39.32Bn for land
compensation and monitoring.
iv) As of 30th June 2024, key activities such as road works and
institutional capacity building had not commenced, ferry construction

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 was at 30%, and 195 PAPs remained uncompensated (UGX.5.73Bn).
v) The project achieved 100% performance in fund releases for the
financial year 2023/2024, with the full approved budget of
UGX.39.875Bn disbursed.
vi) Out of the total available project funds of UGX.39.95Bn for FY
2023/2024, only UGX 12.8Bn was spent, leaving an unspent balance
of UGX.27.14Bn and an absorption level of 32%.
Kabale University Human Capital Unqualified i) The University had outstanding payables of UGX.1,788,619,748 as at
Development 30th June 2024, out of which UGX.1,778,758,881 relates to earlier
financial years.
ii) I noted that 12 programs were found to have 628 excess students
compared to those provided by NCHE without seeking fresh review
of the existing accreditation.
iii) The University had an approved budget of UGX.67Bn out of which
UGX.66.5Bn was warranted resulting in a shortfall of UGX.0.5Bn
representing 99% performance. As a result, planned activities such
as the acquisition of ICT equipment were not undertaken.
iv) The entity had total warrants of UGX.66.5Bn out of which warrants
worth UGX.66Bn had been utilized by the close of the financial year
leaving a balance of UGX.0.5Bn not utilized.
v) Five (5) outputs with 8 activities worth UGX.4.77Bn were fully
implemented.
vi) One (1) output with 4 activities worth UGX.1.5Bn was partially
implemented. Out of the 4 activities, 3 activities worth UGX.1.25Bn
were fully implemented while 1 activity worth UGX.0.25Bn was not
implemented.
vii) I noted delays in construction of the science laboratories and phase
1 of the faculty of engineering block.
Greater Kampala Agro-industrialization Unqualified i) The program had not commenced on the procurement and set up of
Metropolitan Area Community the program Management Information System (MIS).
Urban Development mobilization and ii) Salaries of the Program Support Team/Program specialists for
Program mindset change November and December 2023 and January to March 2024 were
Development plan delayed by 4 (four) months.
implementation iii) Management delayed settling suppliers’ invoices by over 45 days
Digital which constrains service providers’ cash flows.
transformation iv) The GKA program delayed commencing operations since the
Human capital financing agreement was signed in November 2023 and the loan
development became effective on 28th December 2023 resulting in a delay of one

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 Integrated transport year and seven months from the initial program's planned start date
infrastructure and of 31st May 2022.
services v) The program suffered a loss of USD.22.75Mn due to the currency
Natural resources, depreciation of the USD against the SDR.
environment, climate vi) The AFD co-financing agreement was yet to be signed and as such
change, land and the AFD financing had not been secured.
water vii) Out of the budget of UGX.19.14Bn, only UGX.18.98Bn was available
Public sector for spending resulting in a shortfall of UGX.0.16Bn which affected
transformation implementation of planned activities.
Tourism viii) Out of the total available funds of UGX.18.98Bn, only UGX.13.298Bn
development was spent resulting in an unspent balance of UGX.5.751Bn which
Human Capital affected implementation of activities.
Development ix) Out of the available funds of UGX.18.9Bn only UGX.5.4Bn was
transferred to the local governments and KCCA on the 13th and 15th
of May 2024 respectively implying that the beneficiary entities only
had one (1) and a half month to implement the planned activities for
the year.
x) Out of the planned 35 program activities, 26 program activities worth
UGX.6.068Bn (31%) could not be assessed because these activities
were not quantified and lacked clear and measurable performance
indicators.
xi) I analysed the remaining nine (9) activities that were quantified
worth UGX.13.07Bn and noted three (3) activities worth UGX.7.97Bn
were fully implemented, four (4) activities worth UGX.3.47Bn were
partially implemented while two (2) activities worth UGX.1.63Bn
were not implemented at all.
xii) The Program delayed finalising designs for road designs, markets
and drainage channels for clusters 1, 2 and 3, fill critical positions of
senior labour officers and engineers, partition office premises and
procure office vehicles.
Kampala Public Sector Unqualified i) The project had outstanding commitments of UGX.34.4Bn out of
Institutional and Transformation which UGX.21.7Bn relates to unpaid contractual obligations for five
Infrastructure (5) works projects which had accumulated interest of UGX.8.04Bn as
Development Project at 30th June 2024.
Phase II (KIIDP-II) ii) The project had outstanding receivables of UGX.2.7Bn which was an
for five months advance yet to be recovered from the contractor for Lubigi drainage
period ended 30th works.
Nov 2023 iii) The total cumulative project disbursements from the donors were

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 less than expected by USD.17.08Mn as per the project financing
agreement, thus affecting implementation of activities.
iv) The total cumulative project disbursements from GoU were more
than expected by USD.6.50Mn due to the increase in the number of
PAPs to be compensated.
v) Sustainability of project investments is still a challenge due to the
inadequate funding for maintenance of completed infrastructure.
KCCA has failed to maintain completed drainage works, solar
streetlights and to operationalise the iRoads system.
vi) The project had roads and bridges worth UGX.376.8Bn, land worth
UGX.3.9Bn and 22 motor vehicles which were all handed over to
KCCA, following project closure. These assets were yet to be
included in the fixed assets register of KCCA.
Kampala - Jinja Integrated Transport Unqualified i) The procurement process for the Kampala Jinja Expressway, initiated
Expressway (KJE) Infrastructure & in May 2018, remains incomplete as of September 2024, primarily
Project Services due to delays in approving the Partial Risk Guarantee (PRG)
requested by prequalified consortia.
ii) As of 30th June 2024, cumulative donor disbursements for the project
amounted to only USD 343,983.50, significantly lower than the
expected USD 229,470,000, leaving undisbursed funds of USD
229,126,016.50.
iii) The Government has incurred commitment fees totaling USD
1,718,445, further escalating project costs.
iv) The Government of Uganda has contributed UGX.508.12Bn, of which
UGX 498.44Bn was used to compensate 4,505 out of 16,058 Project-
Affected Persons (PAPs), with progress hindered by budget
constraints and unresolved cabinet approval for compensating PAPs
on public land.
v) The Project Implementation Unit (UGX.1.27Bn) has not been
established due to delays in recruiting the Team Leader and
uncertainty regarding project funding and bankability.
vi) Civil works procurement has been delayed by five years due to
funding and bankability issues, with bids now expected in January
2025.
vii) The project had an approved budget of UGX.23.2Bn for FY
2023/2024, which was fully released by the Government of Uganda
(GOU), achieving 100% performance.
viii) Out of UGX.24.5Bn available for FY 2023/2024, only UGX.23.2Bn was

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 spent, resulting in an unspent balance of UGX.1.3Bn and an
absorption rate of 94.8%. The unspent funds, held in the project
account, were intended for establishing the Project Implementation
Unit (PIU).

Kampala Energy Development Unqualified i) Cumulative disbursement of donor funds was at 16% while that of
Metropolitan GoU/Counter Part funds was at 89%. Low disbursements were due
Transmission to the delayed procurement of the project supervision consultant.
System ii) Out of the six (6) activities implemented in the project, targets for
Improvement four (4) activities were partially achieved while targets for two (2)
Project were fully achieved.
iii) The Project had an approved budget of USD. 16,649,169 for the
financial year 2023/2024, out of which only USD. 15,196,533 (91%)
was realized due to delays in execution of works by contractors given
that disbursements are based on invoices.
iv) Out of the total available funds available for the year totaling USD
19,877,165 USD.15,624,463 a sum of was spent representing an
absorption level of 78%. The under absorption was attributed to
procurement delays.
Mirama-Kabale Energy Development Unqualified i) The Environmental and Social Audit (ESA) licence had expired in
Transmission line 2019 and by the time of audit had not been renewed.
and Distribution
(132kv) Project for
period ended 30th
June 2021
Mirama-Kabale Energy Development Unqualified i) The Environmental and Social Audit (ESA) licence expired in 2019
Transmission line and by the time of audit had not been renewed.
and Distribution ii) The contractor suspended all construction works effective November
(132kv) Project for 28, 2023, and demobilized resources.
the period ended iii) Extension lines, operated by UMEME, were not properly maintained.
30th June 2022 This was noted in Okwira TC (Scheme T23), Pamusa TC (Scheme
T01), Katerema C (Scheme T01).

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Kampala Water Lake Natural Resources, Unqualified There were no reportable issues
Victoria Water and Environment, Climate
Sanitation (KW-LV Change, Water and
WATSAN I) Project Land Management
Implemented by
NWSC for the year
ended 30 June 2024
Kampala Water Lake Natural Resources, Unqualified There were no reportable issues
Victoria Water and Environment, Climate
Sanitation (KW-LV Change, Water and
WATSAN II) Project Land Management
implemented by
NWSC for the year
ended 30th June
2024
Integrated Water Natural Resources, Unqualified There were no reportable issues
Management and Environment, Climate
Development Project Change, Water and
(IWMDP) Land Management
implemented by
NWSC for the year
ended 30th June
2024
Integrated Water Natural Resources, Unqualified i) Out of the expected cumulative donor disbursement of US$280.00Mn
Management and Environment, Climate only US$152.33Mn was received representing a 54% performance.
Development Project Change, Water and ii) The Project had an approved budget for external financing of
(IWMDP) Land Management UGX.149.67Bn (US$40.45Mn), out of which UGX.145.21Bn (US
implemented by $38.02Mns) was remitted, representing 93.9% performance. The
MWE for the year funds remitted, added to the project opening balance of
ended 30th June UGX.80.47Bn, implies that the funds available to spend were
2024 UGX.225.68Bn (US$60Mn).
iii) I sampled thirty-five (35) activities worth US $223.74Mn and noted
that targets for Thirteen (13) activities worth US $17.79Mn had been
fully achieved while targets for the remaining twenty-two (22)
activities worth US $205.95Mn were yet to be fully achieved.
iv) Out of the total available funds of US$60.00Mn, only US$28.01Mn
was spent, resulting in unspent balance of US$31.98Mn representing
an absorption level of 46.7%. The unspent funds were still held on

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 the Project bank accounts in Bank of Uganda.

Kawempe National Human capital Unqualified i) The Hospital realized an increase in domestic arrears and other
Referral Hospital development payables from UGX.0.73Bn at the end of the previous financial year
(KNRH) to UGX.1.37Bn at the close of the year under review representing
an increase of 87.7%.
ii) NMS delivered supplies amounting to UGX.4.76Bn out of the
hospital’s budget of UGX.5.5Bn resulting into a discrepancy of
UGX.0.74Bn, representing an under-delivery of 13.5%.
iii) The hospital store does not have sufficient space and is not laid out
to allow clear separation of different materials and products to
minimise the risk of contamination and/or potency degradation,
which may make the products unsafe for human consumption.
iv) Out of the approved staff strength of 934 positions, only 435
positions were filled, leaving a gap of 499 positions, representing a
staffing level of only 46.57%. This was far below the national
average of 68%.
v) The non-functioning of the oxygen filling station for about 6
months resulted in the hospital spending UGX.320.4Mn on piped
medical oxygen and refilling of oxygen cylinders during the year. It
also led to the Radiology Department being unable to carry out
scan requests leading to the patients who could afford to have
them done from outside the hospital.
vi) The entity’s mandate of Adolescent health and Research did not
have clear deliverables in the annual work plan.
vii) Warrants worth UGX.18.42Bn out the available warrants of
UGX.22.74Bn had been utilised by the close of the financial year
resulting in the balance of UGX.4.32Bn un-utilised.
viii) All the 10 outputs with 41 activities worth UGX.16.36Bn that were
assessed were fully implemented.
ix) The hospital’s gas filling station, CT scan and Fluoroscopy machine
which were recently installed have not been working for over six
months. The non-functioning of the filling station resulted in the
hospital spending UGX.320Mn on piped medical oxygen and refilling

403
 oxygen cylinders during the period.
x) The hospital was allocated drugs and medical supplies worth
UGX.5.5Bn at NMS. I noted that drugs and medical supplies worth
UGX.0.740Bn where not delivered during the period. This
represented 13.4% of the planned deliveries to the hospital.
xi) I noted that the hospital lacks sufficient storage space for
medicines and medical supplies delivered to the hospital. The
approved structure provides for 15 staff in the inventory
management section; however, I noted that only seven (7) three
(3) positions were filled and of which four (4) were porters.
xii) I undertook a special audit of the pension payroll, and a separate
report was issued.
Kayunga Referral Human capital Unqualified i) Notes 26 (Property, Plant and Equipment) and 27 (Non-produced
Hospital development Assets) revealed significant increases in asset balances of
UGX.75.864Bn and UGX.3.6Bn respectively, caused by new
additions in the year whose values were based on management
estimates as guided by Accountant General. The estimates were
not backed by valuations by the Government Chief Valuer.
ii) Out of the approved structure of 1,112, only 172 (15%) positions
were filled, leaving a gap of 940 (85%). Some of the gaps were in
key positions including Senior Consultant (Cardiology, Infectious
diseases, Medicine, Neurology).
iii) The RRH did not utilize funds of UGX.0.53Bn, which was meant for
Recruitment of staff, payment of utility bills.
iv) I analysed a sample of 7 key outputs with total expenditure of
UGX.4.16Bn and noted that 6 (86%) outputs with expenditure
UGX.3.65Bn were fully implemented, 1 (14%) output with
expenditure of UGX.0.513Bn was partially implemented.
v) One Oxygen plant and the kitchen for the private wing was non-
functional.
vi) I noted that the health facility had accumulated expired drugs. I
also noted instances of drug stock outs of EMHS
vii) Inspection of the stores revealed that storage space was not
adequate, pallets were available but these were not adequate,
medical Sundries were stored in the corridor, recently delivered
supplies did not have space to be stored, fire extinguishers and fire
extinguisher balls were not available and accessible while the
hospital had a fire horse in the corridors.

404
 viii) Less quantity of Blood was being delivered by Nakasero Blood bank
as compared to the orders made by the RRH.
ix) The RRH lacked 89 medical equipment that are required as a
minimum to offer health services.
x) There were only two people designated to both manage the
storage, distribution, and control of medical equipment and
supplies and to also supervise the management of the medical
equipment in the RRH which over stretches and overwhelms the
staff
xi) The RRH had not repaired its medical equipment such as the
incinerator, baby warmers for premature babies, and autoclaves,
among others, which is critical for the provision of health services.
xii) The RRH had 64 damaged beyond repair equipment that were due
for disposal but the RRH did not have a budget or a disposal plan
for the equipment.
xiii) There was no proper storage for the obsolete and damaged
equipment
xiv) The RRH lacked an ICU to take care of patients that required
specialized treatment
xv) UPDF constructed the Oxygen plant at UGX.0.55Bn and delivered
all parts in May 2023, however, to date it has not been operational
xvi) There was inadequate staff accommodation for the newly recruited
staff.
xvii) The RRH lacked an isolation center to manage patients with
infectious diseases such as tuberculosis, Ebola, Covid-19.
xviii) The RRH’s private wing kept its medical supplies in the store that
did not have favourable conditions for storage, the store did not
have a thermometer to monitor temperature conditions, there was
no fire extinguisher, and it had defects in the ceiling that allowed
leakage of water from the roof.
xix) I undertook a special audit of the pension payroll, and a separate
report was issued.
Entebbe Regional Human capital Unqualified i) Notes 26 (Property, Plant and Equipment) and 27 (Non-produced
Referral Hospital development Assets) revealed significant increases in asset balances of
UGX.0.34Bn and UGX.0.75Bn respectively, caused by new additions
in the year whose values were based on management estimates as
guided by Accountant General. The estimates were not backed by
valuations by the Government Chief Valuer.

405
ii) The RRH did not utilize UGX.2.4Bn of the amount warranted. These
funds were meant for the payment of salaries, pensions and
recruitment of staff.
iii) I analysed a sample of 5 key outputs with total expenditure of
UGX.2.5Bn and noted that 4(80%) outputs with expenditure
UGX.2.02Bn were partially implemented. However, 1(20%) output
worth UGX.0.48Bn was not quantified to enable assessment
iv) The newly approved staff structure that was communicated by MoH
had not been implemented by the RRH. Even then, out of the
approved old structure of 566, only 193 (34%) positions were filled,
leaving a gap of 373 (66%) positions. Some of the key unfilled
positions included Hospital Director, Senior Consultant (Internal
Medicine), Senior Consultant (Paediatrics).
v) Inspection of the stores revealed that storage space was not
adequate, pallets were available but were not adequate, medical
Sundries were stored in the corridor and recently delivered supplies
did not have space to be stored.
vi) There was less blood (quantity) delivered by Nakasero Blood bank as
compared to the orders made by the RRH.
vii) The RRH lacked 136 medical equipment that are required as
minimum to offer health services.
viii) There was only one staff designated to manage the storage,
distribution, and control of medical equipment and supplies and to
also supervise the management of medical equipment in the RRH.
ix) The RRH had not repaired its medical equipment such as the
incinerator, baby warmers for premature babies, and autoclaves
among others which is critical for the provision of health services.
x) The RRH had 51 damaged (beyond repair) equipment that were due
for disposal, but the RRH did not have a budget or a disposal plan
for the equipment
xi) The RRH lacked an ash pit on the Hospital premises, the incinerator
was in place but was not fully functional, it lacked a heat regulator,
the placenta pit was not adequate, the waste bins were not
adequate.
xii) The Infectious/clinical waste was burnt in open space contrary to the
guidelines
xiii) The RRH did not undertake waste assessments during the year
under review.

406
 xiv) The RRH did not have a comprehensive waste management plan.
xv) The RRH’s isolation ward for the ICU was non-operational and was
not organized and functional to take care of patients that required
specialized treatment.
xvi) I noted that the UPDF constructed the Oxygen plant at UGX.0.55Bn
and delivered all parts in May 2023, however, to date it has not been
operational.
xvii) The RHH lacked staff accommodation for the staff, which made
hospital operations difficult.
xviii) Grade A is dilapidated and condemned which has reduced the bed
capacity for ERRH
xix) I noted that there was no progress in the upgrade of Grade A
hospital into a specialized hospital.
xx) The tuberculosis wards in the isolation centre were turned into
storage space for supplies and equipment because the Isolation
lacked a designated storage space.
xxi) I noted that the isolation centre did not have an incinerator within
the premises.
xxii) I undertook a special audit of the pension payroll, and a separate
report was issued.
Gulu Regional Human capital Unqualified i) Disclosed in the statement of financial position under note 28(a) on
Referral Hospital development page 8 of the financial statements are payables amounting to
UGX.0.327Bn. The amount increased by UGX.0.059Bn (22%) from
UGX.0.267Bn in the previous year.
ii) Out of the approved budget of UGX.16.262Bn, the total warrants for
the year amounted to UGX.16.015Bn resulting in a shortfall of
UGX.0.247Bn representing 98% performance.
iii) Out of the total warrants of UGX.16.015Bn, only UGX.14.574Bn had
been utilised by the close of the financial year, leaving a balance of
UGX.1.441Bn not utilised.
iv) Out of a sample of four (4) outputs with 23 activities worth
UGX.3.196Bn assessed, 2 outputs with 14 activities and expenditure
worth UGX.2.592Bn were fully implemented while two (2) outputs
with 09 activities worth UGX.0.604Bn were partially implemented.
v) I noted that out of 485 approved positions, a total of 339 positions
were filled leaving a gap of 146 vacant positions as per the
establishment.
vi) I noted that four (4) equipment were both being underutilized and

407
 un-utilized in accordance with patient load.
xxiii) On inspection of the stores and the laboratory ,I noted that the
Store had developed cracks on both the roof and the wall while the
laboratory had insufficient space to accommodate other equipment
such as the fridge that was procured which was procured was still
being kept in the stores.
xxiv) I undertook a special audit of the pension payroll, and a separate
report was issued.
Lira Regional Human capital Unqualified i) Out of the total warrants of UGX.18.593Bn, only UGX.17.322Bn had
Referral Hospital development been utilised by the close of the financial year, leaving a balance of
UGX.1.270Bn not utilised.
ii) Out of a sample of six (6) outputs with 37 activities worth UGX.3.505
Bn assessed, 4 outputs with 21 activities and expenditure worth
UGX.1.053Bn were fully implemented while two (2) outputs with 16
activities worth UGX.2.452Bn were partially implemented.
iii) I noted that the hospital started operating a private wing in which
patients are charged for medical service. As a result, the RRH
collected NTR worth UGX.0.623Bn, which is reflected in the
commentary by the head of accounts on page 7 of the financial
statements. However, only UGX.0.050Bn was remitted to the
consolidated fund leaving UGX.0.598Bn not transferred to the
consolidated fund and spent at source.
iv) Out of 532 approved positions on traditional staff establishment, 324
positions were vacant, while 1 position was filled over and above the
approved structure.
v) I observed that the hospital stores space is inadequate to sufficiently
accommodate delivery and storage of medicines and medical
supplies.
vi) Four (04) of the sampled procurements worth UGX.0.370Bn were not
in the approved budget.
vii) Four (04) contracts were awarded to contractors who did not fully
comply with the set evaluation criteria.
viii) I undertook a special audit of the pension payroll, and a separate
report was issued.
Kabale Regional Human capital Unqualified i) I assessed the extent of implementation of activities for which funds
Referral Hospital development were availed and utilised. A total of 6 outputs with 28 activities worth
UGX.11.583Bn were assessed and the following was observed.
a) 2 outputs with 16 activities worth UGX.2.445Bn were fully

408
 implemented.
b) 4 outputs with 12 activities worth UGX.9.138Bn were partially
implemented. Out of 12 activities, the entity fully implemented
four (4) activities while eight (8) activities were partially
implemented.
ii) Some of the expenditures reported in the SEFA lacked documentary
support such as bus receipts and activity reports such as
acknowledgement of receipt of funds. The total amount of USD
relating to bus fares, taxi charges and travel costs were charged to
G2G SEFA without sufficient documentary support.
iii) There was no evidence of approval of the vehicle requisition forms
by the PHA.
iv) There was no evidence of approval of the funds requisition forms by
the director.
v) There were inconsistencies between the amounts paid as per the
GoU night allowances rates and the amounts actually paid to the
project staff.
vi) During the audit I noted an exchange rate difference of USD 1,012
between the expenditure amount as per the USAID Phoenix report
and the translated Schedule of Expenditures of USAID awards to
Kabale RRH.
vii) I inspected some of the equipment in the Hospital and noted the
following;
a) Two (2) ultrasound machines broke down and were non-
functioning.
b) ICU beds, broken down and not in use.
c) Worn out Incinerator with smoke not moving through the
chimney.
viii) I noted that in the financial year under review, the Hospital’s Oxygen
plants were not functional and as such faced challenges in providing
Oxygen to patients in need.
ix) I reviewed the delivery notes and invoices form the NMS and noted
delays in delivery of Essential medicines.
x) I reviewed five of the hospital orders and noted that although the
Hospital made orders for Essential Medicines worth UGX.1.093Bn,
the Hospital received essential medicines worth UGX.0.962Bn leading
to variance of UGX.0.130Bn. I further noted that 2,595 Essential
Medical items were ordered, however only 1,472 were delivered

409
 leading to a variance of 1,123 medical items.
xi) I undertook a special audit of the pension payroll, and a separate
report was issued.
Mbarara Regional Human capital Unqualified i) The RRH had total warrants of UGX.17.326Bn out of which
Referral Hospital development UGX.16.631Bn was utilized leaving UGX.0.695Bn un-utilized.
ii) MRRH did not receive UGX.1.487Bn of its approved Budget for
implementation of certain key activities.
iii) I assessed the extent of implementation of activities for which funds
were availed and utilized. A total of 4 outputs with 25 activities worth
UGX.4.273Bn were assessed and the following was observed;
a) Four (4) outputs with twenty-five (25) activities worth
UGX.4.273Bn were partially implemented. Out of 25 Activities,
the hospital fully implemented 8 activities and partially
implemented 17 activities.
iv) I assessed one project worth UGX.5.715Bn whose construction works
had been delayed by 3 months (expected completion date was
02/09/2024).
v) I sampled 17 essential medicines and reviewed the orders, delivery,
consumption, balances and noted stock outs in a number of
medicines. Some of the stock outs were up to a period of ten (10)
months. In other instances, management borrowed medicines from
other lower health facilities to respond to the stock outs.
vi) My inspection of the x-ray unity revealed that the unit had not been
operating for the past 3 months by the time of audit inspection. This
was attributed to a complete breakdown of all the X-RAY machines in
the unit.
vii) I noted that MOH delivered a new CT scan Machine, However, this
was not in use because of lack of essential accessories to facilitate its
full.
viii) I inspected the main theatre and noted the following;
a) The hospital has a theatre of 8 operating rooms but only 6 were
operational at the time of audit inspection. The two rooms that
were not operational lacked equipment and operating tools such
as; Operating table, anesthesia machines, operating lights and
operating instruments among others.
b) A number of equipment had mechanically broken down and could
not be repaired; these included the water heater, anesthesia
machines, operating beds, drip stands, trolleys and rusted

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 weighing scale for babies.
c) Faulty autoclave that required boarding off. This equipment had
been non-functional for over a year, yet it remained in the store.
ix) I inspected the hospital ICU and noted the following;
a) The unit had a total of 8 rooms and 8 beds but only 2 out of the 8
beds were functional despite the hospital nursing 5 patients at
the time.
b) There were only 3 functional ventilator machines out of the
required 8 for the 8 rooms.
c) Only 3 monitors were functional in three rooms. The rest of the 5
monitors did not have critical accessories to enable their full
functionality.
x) Out of the 7 target (indicators) outputs of UGX.0.449Bn, five (5)
targets with expenditure of UGX.0.311Bn were fully achieved while 2
targets of UGX.0.061Bn were partially achieved.
xi) I reviewed the approved structure and noted that out of the
approved structure of 1,269, only 301 (23.7%) positions are filled
leaving a gap of 968(76.38%) vacant.
xii) I undertook a special audit of the pension payroll, and a separate
report was issued.
Mubende Regional Human capital Unqualified i) There was a significant increment in the asset account balances of
Referral Hospital development UGX.23.086Bn (98%) for Property, Plant and Equipment and
UGX.1.050Bn (100%) for Non-produced Assets as a result of change
in the accounting policy to full adoption of the accrual basis of
accounting.
ii) The entity had total warrants of UGX.13.371Bn out of which
UGX.12.452Bn had been utilized by the close of the financial year.
iii) I assessed the extent of implementation of 13 outputs with 47
activities worth UGX.12.452Bn and noted that two (02) outputs with
eight (08) activities and expenditure worth UGX.12.054Bn were fully
implemented. Eleven (11) outputs with thirty-nine (39) activities
worth UGX.0.398Bn were partially implemented.
iv) I inspected a completed project of a constructed multi-purpose
building at the Hospital worth UGX.9.354Bn and noted that although
the complex was complete it was not functioning theretofore not
offering services as intended.
v) The hospital experienced delays in delivery of medicines and
sundries to the hospital by National Medical Stores with lead-times

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 ranging between 11 to 92 days.
vi) I noted that out of an approved structure of 1,195 positions for the
hospital, only 290 (24%) are filled leaving 907 (76%) vacant.
vii) I reviewed the hospital’s strategic plan for the period 2020/21-
2024/25 and noted that that several critical activities /project
developments worth UGX.12.46Bn were not implemented as outlined
in the strategic plan and the projected budget and expenditure
income of UGX.25.02Bn for the period.
viii) I undertook a special audit of the pension payroll, and a separate
report was issued.
Moroto Regional Human capital Unqualified i) The RRH had total warrants of UGX.12.815Bn out of which
Referral Hospital development UGX.11.854Bn was utilized leaving UGX.0.961Bn un-utilized.
ii) I noted UGX.0.061Bn was collected as NTR without the basis of
assessment and the said funds were not remitted to the TSA for
warranting but rather spent at source.
iii) I noted that RRH diverted UGX.0.096Bn meant for electricity bills to
cater for electrical supply and maintenance.
iv) I assessed the extent of implementation of activities for which funds
were availed and utilized. One (1) output with one activity worth
UGX.0.120Bn was assessed and was fully implemented.
v) I noted that the Hospital absorbed credit line from NMS of UGX
UGX.0.767Bn out of allocated UGX.0.869Bn resulting into under
absorption of UGX.0.102Bn.
vi) I noted that Out of the ordered essential medicines of 3,684 by the
hospital, only 2,819 was delivered by the NMS resulting into a
shortage of 865.
vii) I noted that out of 368 approved positions on traditional staff
establishment, 132 positions were vacant, while 24 positions were
filled over and above the approved structure.
viii) I undertook a special audit of the pension payroll, and a separate
report was issued.
ix) I inspected service delivery areas and noted the following;
a) In the ICU, out of the 53 required Staff, only 3 (5.6%) positions
were filled, leaving 50 (94.4%) vacant.
b) The Hospital lacked designated room as ICU opting to use
Magnetic Resonance Imaging Room (MRI) with bed Capacity of
three (3) beds
c) Only two (2) oxygen plants at the RRH were both nonfunctional.

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 d) The mortuary was initially designed for Moroto District Hospital
before it was made a Regional Referral Hospital. There is limited
space for hygienic storage and examination of the dead bodies
until burial.
Jinja Regional Human capital Unqualified i) The Hospital had an approved budget of UGX.23.624Bn out of which
Referral Hospital development UGX.23.445Bn was warranted resulting in a shortfall of UGX.0.178Bn
representing a 99% performance.
ii) Out of UGX.3.46Bn verified domestic arrears at the end of financial
year 2022/23, only UGX.0.17Bn (5%) was budgeted for, leaving
UGX.3.30Bn (95%) un-budgeted for.
iii) Management only budgeted for and paid salary and pension arrears.
The other categories of arrears amounting to UGX.0.35Bn were not
budgeted for and therefore not paid.
iv) The outstanding water bill for the hospital increased from
UGX.2.12Bn in FY 2022/2023 to UGX. 3.80Bn (76%) at the end of
FYR 2023/
v) Out of the approved Staff positions 1,269, only 389 (31%) were
filled, leaving 880 (69%) vacant.
vi) Key equipment including fixed x-ray machine, Anaesthetic machine
and sonography were missing at the Hospital. The x- ray machine
that is in place is non-functional.
vii) I noted that an Ultrasound scanner that was purchased in June 2022
at the cost of UGX.3.5Mn from St Jude Electrical and Medical
Equipment Workshop to be used in OBS/GYN unit was not
operational.
viii) I undertook a special audit of the pension payroll, and a separate
report was issued.
Mbale Regional Human capital Unqualified i) Revised approved budget of UGX.18.902Bn out of which
Referral Hospital development UGX.18.807Bn was warranted resulting in a shortfall of UGX.0.094Bn
representing a 99% performance.
ii) Out of 1,265 approved positions on Central Ministry Employees, 911
positions were vacant, while 354 positions were filled representing
an understaffing of 72% of the approved structure.
iii) The Hospital has a doctor to population ratio estimated at about
1:460,000 given its catchment area population of 4.6m people.
iv) The Hospital had limited accommodation for the over 354 staff in
post, only 98 staff (28%) currently have accommodation with
housing gap of at least 256 house units.

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 v) I undertook a special audit of the pension payroll, and a separate
report was issued.
Soroti Regional Human capital Unqualified i) The hospital had accumulated domestic arrears worth UGX. 0.63Bn.
Referral Hospital development ii) Out of the approved structure of 1,231, only 283 (23%) positions
were filled leaving 948 (77%) positions vacant.
iii) The RRH was supposed to collect revenue to the tune of
UGX.0.20Bn, however, by the end of the year only UGX.0.15Bn had
been collected representing 75% performance.
iv) 14 activities worth UGX.0.25Bn were partially implemented and 7
activities worth UGX.1.25Bn were not implemented.
v) 10 staff were absent from duty for an average of 14 days in the
month of June 2024. The staff were paid UGX.0.023Bn for the period
when absent.
vi) Out of the five (5) radiant baby warmers at the NICU, only two (2)
were functional and in use at the unit.
vii) The intensive care unit was lacking enough Oxygen at the time of
Audit.
viii) There were no temperature control gadgets installed in the medicine
store.
ix) The Male surgical ward was constructed in 1944 and is currently still
in use in a dilapidated state.
x) The Hospital had several obsolete/non-repairable equipment that
was due for disposal but had no disposal plan.
xi) I undertook a special audit of the pension payroll, and a separate
report was issued.
Arua Regional Human capital Unqualified i) As at 30th June 2024 the Hospital had payables amounting to
Referral Hospital development UGX.2.637Bn, having only settled UGX.0.006Bn in the year.
ii) Out of the approved 359 positions, only 273 (76%) were filled,
leaving 86 (24%) positions vacant. The new hospital structure had
not been implemented.
iii) The RRH had an approved budget of UGX.15.15Bn and was all
warranted 100%, however, the hospital did not utilize UGX.0.007Bn.
The Un-utilized funds were meant for payment of pension to staff.
iv) The average delays in delivery of medicine in the financial year were
18 days with the longest delay of 43 days (1 month and 13 days) in
Cycle 6.
v) Part of the RRH land had been encroached by squatters who had
established their homes on the lower side of the hospital.

414
 vi) Some staff houses were not fit for accommodation as they were too
old and not maintained, and there was inadequate staff
accommodation for the newly recruited staff.
vii) The RRH did not have an ICU to take care of patients that required
specialized treatment.
viii) The UPDF constructed the Oxygen plant at UGX.0.55Bn and
delivered all parts in May 2023, however, to date it has not been
operational.
ix) I noted Shoddy construction works at the New Oxygen plant building
and culverts to the blood bank.
x) I undertook a special audit of the pension payroll, and a separate
report was issued.
Yumbe Regional Human capital Unqualified i) I interviewed the Hospital Director and noted that the Hospital
Referral Hospital development lacked adequate transport facilities.
ii) Out of 1,301 approved positions, only 138 were filled, leaving 1,163
(90%) vacant.
iii) The RRH had an approved budget of UGX.11.35Bn and was all
warranted 100%, however it did utilize UGX.1.53Bn. These funds
were meant for the payment of salaries, pensions and recruitment of
staff.
iv) The hospital did not budget for NTR but collected UGX.0.050Bn.
v) Water soluble drugs that had expired one year ago were still being
kept in the insolated store for expired drugs.
vi) I examined stores’ records and noted that the Hospital experienced
delays in delivery of medicines and sundries by National Medical
Stores
vii) I noted stock outs of essential drugs for 280 days between the last
date the essential drugs were in store and when the 6th Cycle was
delivered.
viii) I inspected the Oxygen plant and noted the contractor, UPDF
engineering brigade had abandoned the site.
ix) MoH had delivered equipment to the hospital on 24/11/2022. This
equipment had been idle at the plant for more than one year.
Fort Portal Regional Human capital Unqualified i) The RRH had an approved budget of UGX.14.02Bn and 100% was
Referral Hospital development warranted, however, it did not utilize UGX.1.45Bn of the amount
warranted. These funds were meant for the payment of salaries,
pensions and recruitment of staff.
ii) I analysed a sample of 4 key outputs with total expenditure of

415
 UGX.12.55Bn and noted that 1 (25%) output with expenditure
UGX.0.12Bn were fully implemented, 3(75%) outputs with
expenditure of UGX.12.43Bn was partially implemented.
iii) The Board did not approve the supplementary funds of
UGX.0.533Bn.
iv) I observed that the project worth UGX.1.63Bn was completed but
had some defects.
v) I noted instances of expired drugs at the hospital.
vi) RRH had an endoscopy and C-arm machines that were in working
condition but were not being used.
vii) Hospital staff houses were dilapidated and in dire need of repair.
Hoima Regional Human capital Unqualified i) Out of 1,195 approved posts, only 277 (23%) positions are filled
Referral Hospital development leaving 918 (77%) vacant.
ii) Over 30 fire extinguishers mounted in different locations of the
hospital had not been serviced/maintained for the last 3 years.
iii) The RHH has insufficient mortuary space.
iv) The RRH irregularly deducted WHT of UGX.0.018Bn from a tax-
exempt supplier of the Nissan hard body motor vehicle.
v) The RRH had an approved budget of UGX.15.19Bn and 100% was
warranted, however, UGX.0.448Bn was not utilized. These funds
were meant for the payment of salaries, pensions and recruitment of
staff.
vi) I analysed a sample of 2 key outputs with total expenditure of
UGX.1.78Bn and noted that both outputs were partially
implemented.
vii) Supplementary funds of UGX.0.115Bn were not approved by the
Board.
viii) I undertook a special audit of the pension payroll, and a separate
report was issued.
Kigumba – Masindi – Integrated Transport Unqualified i) As of 30th June 2024, donor cumulative disbursements amounted to
Hoima – Kabwoya – Infrastructure & UGX.350.46Bn against an expected total of UGX.376.98Bn, leaving
Road Project ADF Services UGX.26.52Bn undisbursed. Due to undisbursed donor funds, the
Loan No. Government incurred commitment fees of USD 2.93Mn since the
2100150028796 – project’s start date.
Project ID No. P- UG ii) The GoU cumulative actual disbursements of UGX.147.45Bn
– DB0– 021 (RSSP- exceeded the expected UGX.117.37Bn by UGX.30.08Bn, reflecting
4) higher-than-planned contributions.
iii) Significant progress has been made in implementing project

416
 activities, but delays in completing Kigumba Market still prevail,
outstanding payments, and pending PAP compensation need urgent
resolution to ensure timely project closure.
iv) The project achieved 100% budget performance in FY 2023/2024,
with the approved budget of UGX.33.89Bn fully disbursed by both
GoU and donor partners due to timely fund releases.
v) Out of UGX.34.23Bn available, UGX.29.04Bn (85.7% absorption
level) was spent, leaving UGX.5.18Bn unspent.
vi) The Integrated Management Information System (IMIS)
development, with UGX.1.63Bn spent, remains incomplete, rendering
it unavailable for use and risking cost overruns due to administrative
delays.
Kilembe Mines Mineral Development Qualified i) Trade and other receivables increased by 5%, rising from UGX 2.204
Limited billion in the 2022/2023 financial year to UGX 2.318 billion. Despite
considerable doubt regarding the recoverability of receivables
amounting to UGX 1.518 billion (65%), the company has not yet
initiated the write-off process for these amounts.
ii) A Board of directors was appointed in June 2022 to oversee the
operations of Kilembe Mines Limited. However, retainer fees
amounting to UGX.417Mn due to the Board had not been paid by the
Company.
iii) Kilembe Mines Limited does not have a succession plan in place and
the Board charter does not have provisions of succession planning.
iv) The Company had an operating margin of -112% which extremely
below 15%. The negative operating margin shows that the company
is spending more on operating costs than generating revenue.
v) The Company’s loss increased by 81% from UGX.2.392Bn in the year
2022/2023 to UGX.21.359Bn in the current year. This worsened the
company’s accumulated losses by 84%, to UGX.45.878Bn as at 30th
June 2024.
vi) The company’s ROA is -57%, which declined from the previous
year’s return of -6%. The inadequacy of the ROA and its decline
from the prior period suggests that the company’s assets are not
yielding positive returns.
vii) The company’s quick ratio as at 30th June 2024 was 0.6% and
below the desired ratio of 1. This implies that the company’s current
assets are insufficient to cover its short-term obligations.
viii) The company budgeted to collect UGX. 4,824,431,056. However,

417
 UGX. 2,210,448,321 was realized representing performance of 46%.
ix) Out of 5 outputs with 28 activities worth UGX.4.82Bn assessed, I
noted that three (3) outputs with 18 activities worth UGX.3.27Bn
were partially implemented while Two (2) outputs with ten (10)
activities worth UGX.1.55Bn were not implemented at all.
Kiira Motors Manufacturing Unqualified i) Kiira Motors (KMC) had no Board of Directors as at the time of audit
Corporation (KMC) (September 2024) to provide strategic guidance and direction to the
Corporation.
ii) The Corporation did not have the insurance cover for its high capital
investment in inventory in form of work-in-progress, bus motor
vehicle chargers, parts and materials for Kayoola buses at Luwero
Industries Limited worth UGX.16.11Bn.
iii) Out of 247 staff positions, only 155 positions were filled, while 92
(37.8%) were vacant.
iv) The Corporation projected to collect revenue amounting to
UGX.197Bn, however, only UGX.2.3Bn was collected, representing
1.2% performance.
v) The Corporation had an approved government budget of
UGX.97.84Bn which was all warranted.
vi) I noted that subvention releases from STI to KMC are not made in a
timely manner and this has affected the implementation of planned
activities. There was an average delay of 56 days from the date of
the quarterly release which affected implementation of activities.
vii) A sum of UGX.30.04Bn of the available funds were not utilised by the
entity. The funds are still held in the Corporation’s bank account in
Bank of Uganda.
viii) Out of the three (3) outputs with 46 activities worth UGX.67.7Bn
assessed, one (1) output with six (6) activities and expenditure
worth UGX.10.17Bn was fully implemented while two (2) outputs
with 40 activities worth UGX.57.6Bn were partially implemented.
Kiruddu National Human capital Unqualified i) I noted that the Hospital paid UGX.0.538Bn in excess of the
Referral Hospital development approved budget of domestic arrears for FY 2023/24.
ii) The hospital did not record in its Assets register the 2 plots of land
namely, plot 3927 block 273 where the main hospital building is
located and plot 1774 block 255 where a sewerage treatment plant
was constructed both registered in the names of Kampala Capital
City Authority (KCCA). I also noted that the assets were not reported
in the financial statements.

418
 iii) The hospital appointed and renewed contracts of twenty-six (26)
contract staff without prior clearance from the Permanent Secretary.
iv) The Hospital had an approved budget of UGX.28.054Bn out of which
UGX.28.024Bn was warranted resulting in a shortfall of UGX.0.03Bn
representing 99.9% performance. The UGX.0.03Bn that was not
warranted relates to payment of gratuity.
v) The Hospital had total warrants of UGX.28.024Bn out of which
warrants worth UGX.27.052Bn had been utilised by the close of the
financial year. The balance of UGX.0.972Bn was meant for activities
like payment of general staff salaries, social security contributions,
payment of pensioners, payment of gratuity and acquisition of
furniture and fittings.
vi) I assessed the extent of implementation of outputs and noted that
one (1) output (Medical and Health Supplies) was fully implemented,
and Four (4) outputs were partially implemented.
vii) I noted that whereas the Hospital requested for UGX.0.522Bn in
respect of supplementary funding, a total of UGX.0.613Bn was
received. Therefore, UGX.0.091Bn was not requested by the
Accounting Officer as required by the PFMR.
viii) I noted that UGX.0.522Bn did not meet the criteria for
supplementary funding prescribed in the Public Finance Management
Regulations.
ix) The newly rehabilitated ICU was underutilized with two (2) out of
nine (9) beds, Monitors, Ventilators, syringe pumps and infusion
pumps were also inadequate. I further noted the gastroscopy and
Bronchoscopy machines were not functional. In addition, the
radiology department had only 7 out of 21 staff positions filled while
the digital x-ray machine had a depleted battery.
x) Review of management of regional dialysis centers indicated that
there were inconsistences in preparation of MoUs with Lira and
Mbarara RRHs.
xi) Whereas UGX.1.357Bn had been spent on the procurement of
dialysis consumables, management did not provide proof that RRHs
remitted 50% of the NTR collections from dialysis services on behalf
of KNRH as required by the MoUs.
xii) I inspected the power room that houses both the hospital’s solar
inverter system and its distribution board and noted the existence of
plenty of stagnant water in a service duct just beneath the high

419
 voltage distribution board. This poses a risk of electrical faults, short
circuits, and potential damage to sensitive components.
xiii) I inspected the cold chain stock cards and requisition books and
noted that four (4) out of the ten (10) sampled vaccines experienced
stock-outs ranging from 12 to 90 days.
xiv) Whereas the Hospital serves 48 parishes with one VHT attached to
each parish, only 6 of the 48 were active.
xv) I undertook a special audit of the pension payroll, and a separate
report was issued.
Kyambogo Human Capital Unqualified i) The entity paid a total of UGX.9.8Bn to clear domestic arrears.
University Development However, the approved budget estimates for the FY under review
showed that only UGX.0.093Bn had been budgeted for domestic
arrears.
ii) The University received printery equipment in 2018, but it has never
been commissioned to date.
iii) Halls of residence were dilapidated with broken and missing toilets,
broken sewerage and plumbing system with leakages affecting the
structures.
iv) Sixteen (16) Course Units in five (5) departments were allocated less
than 3 contact hours per week during the academic year 2023/24.
v) Supplies amounting to UGX.0.739Bn were made without deducting
the required withholding tax (6% VAT) worth UGX.0.044Bn.
vi) I noted under-staffing levels in all the 104 departments leading to
1,653 (68%) unfilled positions.
vii) A procurement of medical system management software worth
UGX.0.139Bn was executed without prior approval of ICT
specifications by NITA-U.
viii) The solicitation document for the supply and installation of adapted
ICT equipment, software and devices for persons with disability
worth UGX.0.097Bn specifically identified the brand names of the
items required.
ix) Out of thirty-three (33) procurements worth UGX.5.5Bn reviewed,
fifteen (15) procurements worth UGX.1.51Bn were not issued with
contract documents.
x) The University executed contracts worth UGX.1.43Bn before the
lapse of the BEB notice display period.
xi) The contract with M/s CK Associates Ltd for the removal of asbestos
sheets and renovation of selected staff offices at a contract price of

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 UGX.1.73Bn was delayed with progress at 93%.
xii) The entity had an approved budget of UGX.138.48Bn out of which
UGX.135.76Bn was warranted resulting in a shortfall of UGX.2.72Bn
representing 98% performance.
xiii) Out of total warrants of UGX.135.76Bn, warrants worth
UGX.134.38Bn had been utilized by the close of the financial year
leaving UGX.1.38Bn unutilized.
xiv) I assessed a total of 45 outputs with a budget of UGX.138.48Bn and
noted that 5 outputs with 25 activities and expenditure worth
UGX.9.56Bn were fully implemented, thirty-nine (39) outputs with
500 activities worth UGX.124.82Bn were partially implemented and
one (1) output (Research innovation & technology transfer) with one
(1) activity worth UGX.0.011Bn was not implemented at all.
xv) Supplementary expenditure amounting to UGX.3Bn did not meet the
supplementary expenditure criteria.
xvi) The University had accumulated domestic arrears of UGX.23.29Bn.
xvii) The entity budgeted to collect UGX.77.15Bn during the year but only
collected UGX.57.65Bn, leaving a balance of UGX.19.50Bn (25%).
Law Development Administration of Unqualified i) The Law Development Centre (LDC) had outstanding domestic
Centre (LDC) Justice arrears amounting to UGX.3.36Bn as at 30th June 2024. Included in
Governance and the domestic arrears was a land-related liability of UGX.0.65Bn
Security incurred in the year under review, which arose from a court case.
ii) LDC only made a budget provision of UGX.78.7Mn towards the
settlement of arrears of UGX.2.81Bn, leaving a balance of
UGX.2.73Bn not budgeted for.
iii) LDC received and fully utilized warrants totaling to UGX.34.21Bn,
representing 100% of the entity’s budget for the year.
iv) I assessed the extent of implementation of all the 11 outputs with 87
activities worth UGX.34.14Bn for which funds were availed and
utilized and noted that ten (10) outputs with 78 activities and
expenditure worth UGX.33.04Bn were fully implemented and one (1)
output with nine (9) activities worth UGX.1.09Bn was partially
implemented.
v) Management did not conduct market surveys or assessments for 17
procurements awarded, worth UGX.5.2Bn, to justify their estimated
cost during procurement planning.
vi) A review of the sampled procurements revealed that nine (9)
procurements had significant price variances between market-

421
 assessed prices and the final contract amounts, with variances
ranging from 11% to 55%. In all cases, the contract prices were
below the market-assessed prices.
vii) A review of procurements under restricted bidding method revealed
that four (4) procurements worth UGX.0.42Bn that were undertaken
using the restricted bidding method had shortlisted firms without the
capacity to supply despite the entity having several pre-qualified
providers.
viii) Out of 176 full-time staff required per the approved structure, only
125 (71%) were filled, leaving 51 (29%) vacant positions.
ix) I reviewed LDC’s land records and noted a delay in the
amalgamation of the certificates of title for its land located at
Kagugube, Makerere, measuring 1.675 hectares. I further observed
that several other claimants dispute LDC’s ownership of the land, and
the issue is yet to be resolved by LDC’s management.
x) A further review of the land records revealed that three (3) pieces of
land were not under LDC’s control, and LDC was either a squatter or
other claimants were occupying the land.
xi) LDC faces challenges with the Academic Institution Management
System (AIMS), including limited full utilization of the various
modules, including admissions, enrolment, registration, curriculum
management, results management, fees and invoicing, biodata
management, user role and profile management, student portal and
reports generation.
Lira-Gulu-Agago Energy Development Unqualified i) Out of the expected cumulative disbursements of Euros 40Mn,
Transmission Line Euro.18.55 (46%) was disbursed by the donor, however the
Project underperformance did not affect planned activities as the project is
expected to save Euro.10Mn after settling all outstanding expenses.
ii) The Project had an approved budget of USD.15.16Mn for the
financial year 2023/2024 out of which only USD.8.95 (59%) was
realized. The shortfall affected RAP implementation.
iii) I reviewed the implementation of the 3 components with 4 activities
and noted that targets for 3 activities worth USD.20.56Mn and
UGX.31.83Bn had been fully achieved while targets for one (1)
activity were partially achieved.
iv) 468 (98.9%) of the total 473 PAPs have been compensated, the
pending 5 were due to registered land disputes, valuation queries
and payment delays.

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Lira University Human capital Unqualified i) The University paid domestic arrears totalling UGX.0.30Bn during the
development year as disclosed in the cash flow statement without a budget.
ii) Out of the approved budget of UGX.35.78, UGX.35.25Bn (98.5%)
was warranted resulting in a shortfall of UGX 0.53Bn, which was
meant for social security contributions and non-residential buildings.
iii) Warrants worth UGX.30.68Bn had been utilised by the close of the
financial year, leaving a balance of UGX 4.56Bn unutilized, which was
meant for recruitment and promotion of staff.
iv) Nineteen (19) outputs, with 74 activities and expenditure worth
UGX.11.61Bn were fully implemented. Six (06) outputs with 27
activities and expenditure worth UGX.1.85 were partially
implemented.
v) Out of the twenty-seven (27) activities, the entity fully implemented
thirteen (13) activities worth UGX 1.79. Thirteen (13) activities worth
UGX.0.04Bn were partially implemented, while one (01) activity
worth UGX.0.02Bn remained unimplemented.
vi) Payment of salaries worth UGX.15.98Bn to the various staff under
the different departments was not included as an activity in the
University annual work plan.
vii) Out of the 02 sampled projects, one (01) project for the construction
of the administration block worth UGX.16.60Bn had been delayed by
over 36 months.
viii) Several course units in different programs were allocated hours less
than 3 hours per week (45 hours in semester) recommended by the
National Council for Higher Education during 2023/2024 academic
year.
ix) Several teaching staff were allocated less than 10 contact hours per
week to teach various course units in different programs/courses
contrary to the NCHE minimum recommended in the Quality
Assurance framework.
x) Out of the total admission of 6,196 students, only 1,766 have
graduated leaving a balance of 4,430 students who had not
graduated representing a graduation rate of 40%. The low rate of
graduation is attributed to financial challenges of students.
xi) Out of a total of 170 students registered for post graduate programs,
58 (34%) graduated leaving a balance of 112 (66%) students who
had not yet graduated.

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Local Government Development plan Unqualified i) Out of the 64 approved posts, only 42 (66%) were filled, leaving 22
Finance Commission implementation, (34%) posts vacant.
(LGFC) Public sector ii) The proposed amendments to enhance revenue collections for Local
transformation Service Tax, Local Hotel Tax and royalties to improve the current
collection from UGX.291Bn in FY 2021/2022 to UGX.1.0Tn by FY
2025/2026 had not been actioned.
iii) The recommendations of the Commission to reinstate equalization
grant for Local Governments lagging in terms of basic services were
not implemented.
iv) The entity had an approved budget of UGX.11.19Bn out of which
UGX.11.08Bn (99%) was warranted, resulting in a shortfall of
UGX.0.10Bn.
v) Out of UGX.11.08Bn, UGX.11.07Bn had been utilised, leaving a
balance of UGX.10.2Mn. This affected the implementation of
planned activities.
vi) I assessed the extent of implementation of five (5) outputs with 14
activities worth UGX.5.07Bn and noted that all the five (5) outputs
were partially implemented.
vii) I conducted an audit of the Treasury Memorandum for the
Commission for the FY 2020/21, and a separate report was issued.

Charcoal Conflict in Human Capital Unqualified i) Project had a budget of UGX.236.7Mn, out of which UGX.118.4Mn
Climate Change’s Development (50%) was realized, resulting in a shortfall of UGX 118.4Mn.
Decarbonisation ii) Project spent UGX.19.5Mn over and above funds of UGX.46.5Mn that
Dilemmas Project was availed for salaries
(MUK) for the period iii) There was no approval by the University Council for the project and
1st June to 31st Dec for the appropriation of project funds of UGX.118.5Mn.
2023

Makerere Institute Human Capital Unqualified i) The roof of a building housing the library was in a bad state and
of Social Research Development needed repair.
Carnegie ii) There were no internal audit reports for the period under review,
Corporation Grant which creates weakness in internal controls, exposing the Institute to
Number G-22-59696 the risk of fraud and mismanagement
for the period 1st
April 2023 to 31st
March 2024
Makerere Institute Human Capital Unqualified i) The roof of a building housing the library was in a bad state and

424
of Social Research Development needed repair.
Andrew W. Mellon ii) There were no internal audit reports for the period under review,
Foundation Grant which creates weakness in internal controls, exposing the Institute to
No. (1808-06062) the risk of fraud and mismanagement
for the period ended
31st Dec 2023
Makerere University Human Capital Unqualified i) Functional fees amounting to UGX.1.492Bn that was paid to MUBS
(MUK) Development was not remitted to Makerere University. In addition, the University
held long outstanding receivables worth UGX.45.529Bn.
ii) The funds of two projects for July-September 2023 worth 58,896.47
GBP were disbursed by the Well Trust Grant to the College of Health
Sciences account and utilized without necessary authority.
iii) I observed delayed works for construction works of the office block
and lecture room block at Kabanyoro under the College of Agriculture
and Environmental Science at a contract sum of UGX.1.717Bn. In
addition, the contractor delayed submitting performance security by
65 days while the advance guarantee for UGX.0.52Bn expired on
26th June 2024.
iv) Procurements worth UGX.213.2Mn were undertaken without an
evaluation report by committee members who only signed the code
of ethics.
v) The University had an approved budget of UGX.364.19Bn out of
which UGX.362.62Bn (99%) was warranted, resulting in a shortfall of
UGX 1.57Bn.
vi) The University had total warrants of UGX.362.62Bn out of which
warrants worth UGX.352.82Bn had been utilised by the close of the
financial year. The un-utilised funds of UGX.9.80Bn affected general
Staff Salaries, acquisition of Light Vehicles, educational Materials and
Services, medical supplies and services, research expenses among
others.
vii) Out of the 31 outputs with 290 activities worth UGX.352.82Bn
assessed, eight (8) outputs with 25 activities and expenditure worth
UGX.224.82Bn were fully implemented, while twenty-three (23)
outputs with 265 activities worth UGX.128Bn were partially
implemented.
viii) Supplementary expenditure amounting to UGX.10.20Bn did not meet
the supplementary expenditure criteria.
ix) The University registered underperformance in NTR collections of

425
 UGX.30.55Bn out of budget estimates of UGX.127.36Bn.
x) Seven (7) out of ten (10) colleges which provided the information
had two hundred twenty-seven (227) academic staff allocated less
than the minimum contact hours of ten (10) per week to teach
various course units in different programs/courses in the University.
xi) 400 masters’ students have on average taken more than four
academic years to complete research for the master’s program which
is beyond the recommended university accredited duration of 2 years
for master’s programmes.
Makerere University Human Capital Unqualified i) Although the financial statements were prepared and submitted, they
Holdings Limited Development were signed by the Chairman of the Board and one of the Board
(Makholdings) members and not the CEO.
ii) The Guest House collected UGX 372,317,700, out of which, only
UGX 180,928,398 was banked, leaving UGX 191,389,302 was
spent at source.
iii) Makholdings had unremitted NSSF deductions amounting to UGX
56,691,079 by the close of the year under review.
iv) The company Board has taken four consecutive years without
holding the Annual General Meeting (AGM).
v) Makerere University Holdings Company operated without a strategic
plan and annual budget.
vi) The signatories to the bank account for the Makholdings and Guest
House are the Chairman of the Board and one Board member
contrary to the Financial Manual.
vii) The Company did not have an approved salary structure as a basis
for paying salaries to staff.
Makerere University Human Capital Unqualified i) Three (3) outputs with five (5) activities were fully implemented
Africa Centre of Development worth US$ 169,350.02, three (3) outputs with eleven (11) activities
Excellence in worth US$ 604,661 were partially implemented and out of the eleven
Materials Product (11) activities, the project fully implemented seven (7) activities
Development and while four (4) activities were partially implemented.
Nano Technology ii) Out of the released funds for Saliva Project, the project cumulatively
Project spent funds worth UGX.1.742Bn resulting in unspent balance of
(MAPRONANO) UGX.7.3Mn (0.4%), representing an absorption level of 99.6%.
iii) Review of project activities revealed that the project implementation
was delayed by two years contrary to the contract agreement period
which stipulated the completion date as 30th June 2022.
iv) Some activities were overspent such as RT-PCR costs for comparison

426
 to test kit by UGX 12,533,000 (11%), Personnel costs by UGX
69,104,836 (11%), GMP Training, Travels and Partnership
benchmarking at Revital EPZ by UGX 44,095,410 (44%).
v) Out of the released funds for Nano Project, the project cumulatively
spent funds worth UGX 2,154,709,124 resulting in an over
expenditure of UGX 108,335,634 representing an over absorption
level of 5%.
vi) The project implementation was delayed by a year contrary to the
end period specified in the contract agreement of 30th June 2022.
Makerere University Human Capital Unqualified i) The school diverted UGX.7.68Bn from the current year’s budget to
Business School Development pay unbudgeted domestic arrears.
(MUBS) ii) The salary enhancement increased the MUBS gross payroll costs
from January to June 2024 by UGX.551.8Mn per Month without a
corresponding wage budget/release from MoFPED.
iii) The school made payments worth UGX.0.027Bn on fuel card number
1402048292 meant for the generator at Jinja campus without
supporting documentation such as fuel ledgers and consumption
statements.
iv) I noted that one 20KVA generator for Jinja campus delivered on 1st
March 2023 worth UGX.0.069Bn VAT inclusive and paid on 15th June
2023 vide EFT No.5867155 broke down three months after delivery
and was still non-functional at the time of audit inspection.
v) The school had an approved budget of UGX.120.38Bn out of which
UGX.117.53Bn (97.6%) was warranted resulting in a shortfall of
UGX.2.85Bn.
vi) Out of 43 outputs with 199 activities worth UGX.115.10Bn assessed,
15 outputs with 59 activities and expenditure worth UGX.93.43Bn
were fully implemented, while 28 outputs with one hundred and forty
(140) activities worth UGX 21.68Bn were partially implemented.
vii) Supplementary expenditure amounting to UGX.14.57Bn did not meet
the supplementary expenditure criteria.
viii) Contrary to QA Framework for Universities and the Licensing Process
for Higher Education Institutions, 2014, Appendix I, fifty-seven (57)
course units in different programs were allocated hours less than 3
contact hours per week (39 hours in semester). In addition, one
hundred and ninety-nine (199) teaching staff were allocated less
than 10 contact hours per week to teach various course units in
different programs/courses for semester one during 2023/24

427
 academic year.
ix) 322 masters’ students have on average taken more than four
academic years to complete research for the master’s program which
is beyond the recommended university accredited duration for
master’s programmes of two years.
x) Out of 3,044 students who registered for various master’s programs
over a ten-year period (academic year 2013/14 to 2020/2021), 1,931
(63%) students graduated leaving 1,113 (37%) students who are
yet to graduate. Some of the delays were attributed to supervision
delays and students’ related challenges such as funding constraints
and commitment.
xi) Out of the 190 students who registered for PHD Programs over a ten
(10) year period (academic year 2013/14 to 2020/2021) only 60
(31.5%) students graduated leaving 130 (68.5%) students not yet
graduated. Some of the delays were attributed to supervision delays
and students’ related challenges such as funding constraints and
commitment.
xii) I conducted an audit of one (1) Treasury Memoranda for the school
and noted that out of eight (8) recommendations issued, one (1)
was fully implemented, four (4) were partially implemented while
three (3) were not implemented at all.
Makerere University Human Capital Unqualified i) For the 7 years of the project, 14 actions worth USD.5,400,000 were
Regional Centre for Development implemented, 1 action worth USD.600,000 was partially
Crop Improvement implemented.
(MaRCCI) ii) Out of the available funds of USD.1,169,324.03 the project utilized
USD.906,501.81 leaving a balance of USD.262,822.22 unutilized.
iii) I noted that three (3) outputs with four (4) activities worth
USD.141,112.34 were fully implemented, while four (4) outputs with
twenty-one (21) activities worth USD.765,389.47 were partially
implemented.
Management Human Capital Unqualified i) The Centre had outstanding payables of UGX.1.370Bn as at 30th
Training and Development June 2024.
Advisory Centre ii) Outstanding statutory payables may attract penalties.
(MTAC) iii) Out of 74 approved positions, only 54 positions were filled, leaving
20 positions vacant.
iv) Four (4) staff were in acting positions for over 8 years although they
qualify for the substantive appointments.
v) It was noted that the entity had a procurement plan of

428
 UGX.22.763Bn that was not aligned with the entity’s approved
budget of UGX.19.347Bn
vi) A review of the entity’s strategic and annual work plans for the last
three (3) years revealed that the entity had not adequately executed
its mandate.
vii) That the tenure of the MTAC Governing Council expired in 2015 and
has since not been reconstituted even after the Solicitor General’s
legal opinion on the matter four (4) years ago.
viii) The entity fully implemented eight (8) activities worth UGX.0.615Bn
while five (5) activities worth UGX.1.705Bn were partially
implemented.
ix) The Centre had an unauthorized Multi-Year Commitment worth
UGX.17.916Bn for the construction of MTAC-Mbale Outreach Centre
with only UGX.5Bn (28%) of the funds released.
Mandela National Human Capital Unqualified i) There was no sustainability plan and budget in place to operate and
Stadium Limited Development maintain the stadium after the major renovation works.
ii) The entity had an approved budget of UGX.23.30Bn out of which
UGX.21.76Bn (93%) was released resulting in a shortfall of
UGX.1.54Bn.
iii) I assessed a total of 09 cost centers which had 45 activities and
noted that nine (09) activities for three (03) cost centres with
expenditure worth UGX.18.2Mn were fully implemented and thirty-six
(36) activities for six (06) cost centres with expenditure worth
UGX.1.992Bn were partially implemented.
iv) Analysis of the trend of the debtors indicated that over the past four
years, debtors have remained high with an average of UGX.2.4Bn
compared to the operating capital of the company.
v) Budgeted activities worth UGX.1.404Bn were not funded and
therefore not implemented.
Markets and Public Sector Unqualified i) The Ministry diverted UGX.64.87Mn to activities which were not
Agricultural Trade Transformation related to the Project.
Improvement ii) The cumulative disbursements of project funds as of 30th June 2024
Programme (MATIP totaled to USD.102.42Mn against the project financing agreement of
II) USD.93.73Mn. The excess disbursements of 9% was from
Government contribution of VAT deemed paid which was an in-kind
contribution.
iii) The cumulative disbursements totaled to UGX.325.5Bn, all of which
was absorbed.

429
 iv) Eight (8) activities worth UGX.273.61Bn were fully implemented
during the project lifetime.
v) Inspection revealed low occupancy at Tororo, Busia and Moroto
markets with an average occupancy rate of 55%.
vi) Two (2) value addition facilities in Arua, and Soroti worth
UGX.22.9Bn had not commenced operations at the time of inspection
due to lack of operators.
vii) After the commissioning of the markets worth UGX.64.08Bn, the
vendors have not been fully relocated back to the facilities in Soroti,
Busia and Moroto because they were operating in un-gazetted
markets.
viii) I inspected five (5) infrastructures built under the project and I
noted that maintenance of the facilities is not being well managed,
especially the sewage, toilets and general cleaning of the markets.
Masaka-Mbarara Energy Development Unqualified i) The Project had an approved budget of USD.28,526,107 for the
Transmission Line financial year 2023/2024 out of which only USD. 3,911,040.36 (14%)
Project was realized. The shortfall affected compensation of PAPs,
consultancy services for project management and supervision of
works.
ii) Out of the total USD.5,252,768.65 available for spending, only
USD.3,971,768.73 (76%) was spent. The unspent balance of
USD.1,338,601 was meant for the compensation of 318 PAPs, which
was delayed mainly due to disputed amounts and absentia.
iii) I reviewed the implementation of the three (3) components with four
(4) activities and noted that targets for one (1) activity worth
USD.2,444,682 were fully achieved while targets for the remaining
three (3) activities had not yet been achieved.
iv) The contract award for the EPC contractor has delayed by 2 years
arising from halting the process due to whistle blower complaints
that prompted investigations and further approvals.
Mathematics for Human Capital Unqualified There were no reportable issues
Sustainable Development
Development
(Math4sd) Project
(MUK) for the period
1st Jan 2023 to 31st
Dec 2023

430
Environmental Risk Human Capital Unqualified There were no reportable issues
Management Under Development
Increasing Extremes
and Uncertainty
(MERIT) Project
(MUK) for the Period
1st January 2023 to
31st December, 2023
Norwegian Human Capital Unqualified There were no reportable issues
Programme for Development
Capacity
Development in
Higher Education
and Research for
Development funded
Projects (MUK) for
the period 1st Jan
2023 to 31st Dec
2023
Mbarara University Human Capital Unqualified i) The entity had receivables amounting to UGX.2.382Bn from
of Science and Development 2022/2023 that had not been collected.
Technology (MUST) ii) Mbarara University had outstanding domestic arrears worth
UGX.6.190Bn in the FY 2022/2023 but did not budget for them.
UGX.6.182Bn relates to the National Enterprise Corporation (NEC)
and has been outstanding for over 4 years.
iii) The entity had thirty-seven (37) academic programs whose
accreditation had expired and had not been reviewed.
iv) The University failed to attract students for forty-four (44) programs
during the Academic Year 2023/24. It was further observed that a
total of Ten (10) programs did not attract students at all.
v) I noted that eight (8) Programs offered by the University had
exceeded the set maximum limit for the year 2023/2024.
vi) MUST has not signed MoUs with its 2 affiliated institutions. The
University cannot monitor and supervise to assess the adequacy of
teaching services provided at the affiliated institutions which can
tarnish MUST’s reputation.
vii) The entity had an approved budget of UGX.60.391Bn out of which
UGX.57.545Bn was warranted resulting in a shortfall of UGX.2.846Bn

431
 representing a 95.3% performance.
viii) The entity had total warrants of UGX.57.545Bn out of which warrants
worth UGX.56.293Bn had been utilized by the close of the financial
year. The balance of UGX.1.252Bn was meant for activities which
were either partially or not implemented.
Mbarara University Human Capital Unqualified i) Out of the project’s total available funds for the year, GBP 15,847.49,
of Science and Development only GBP 12,879.66 (81%) was spent, resulting in unspent balance
Technology Project of GBP 2,967.8 (19%).
for Antenatal ii) GBP 3,538.7 (equivalent to UGX 15,740,000) remained unaccounted
Couple’s Counselling for at year end.
(ACCU)
MUST - Breeding Human Capital Unqualified There were no reportable issues
Sites Project for the Development
period 1st Dec 2022
to 30th Nov 2023
MUST - Breeding Human Capital Unqualified i) Out of the total available funds of US $18,927.25 only USD.17,733
Sites project for the Development (93.7%.) was spent resulting in an unspent balance of USD.1,194.
period ended 30th
Nov 2022
MUST CAMTECH Human Capital Unqualified i) The project had an approved budget of USD.240,361 all of which
project for the Development was available for spending.
period 1st Jan 2023 ii) Out of the amount received, only USD 192,095.73 (80%) was
to 31st Dec 2023 utilized, leaving a balance of USD 48,265.34 (20%) unutilized.

MUST CPAC Project Human Capital Unqualified i) The project had an approved budget of €59,892 for the period, out
for the period ended Development of which €40,089 was available for spending, resulting in a shortfall
31st Dec 2022 of €19,803 (33%).
ii) Out of the total available funds of € 40,089 (including opening
balances of €195) only €37,183 was spent, resulting in unspent
balance of €2,906, representing an absorption level of 93%.
MUST ESOCAP Human Capital Unqualified i) The project had an approved budget of USD 51,194.80, out of which
Project for period 1st Development USD 6,520.59 (13%) was available for spending, resulting in an
Sept 2022 to 31st under funding of USD 44,674.21.
Aug 2023 ii) Out of the total available funds of USD 6,520.59, only USD 4,756.80
(73%) was spent, resulting in unspent balance of USD 1,763.79
MUST - Getting to Human Capital Unqualified i) The project had an approved budget of USD 20,490, out of which
Zero Project for the Development USD 18,014 (88%) was available for spending, resulting in a shortfall
period ended 30th of USD 2,476.

432
April 2021 ii) Out of the total available funds of USD 18,014, only USD 15,272
(85%) was spent, resulting in unspent balance of USD 2,742

MUST - Global Human Capital Unqualified i) The project had an approved budget of USD 29,699 out of which
Health Fellowship Development USD 18,146 (opening balance of USD 3,176 and receipts of USD
Project for the 14,970) was available for spending, resulting in a shortfall of USD
period 1st July 2022 11,553 (39%)
to 30th June 2023 ii) Out of the total available funds of USD 18,146, only USD 13,158
(73%) was spent, resulting in unspent balance of USD 4,988
MUST - IZUMI Human Capital Unqualified i) The project had an approved budget of Euros 58,762 out of which
Project for the Development Euros 25,672 (44%) was available for spending, resulting in a
period 1st May 2022 shortfall of Euros 33,090
to 30th April, 2023 ii) Out of the total available funds of Euros 25,672, only Euros 14,463
(56%) was spent, resulting in unspent balance of Euros 11,208
MUST - Kayanja Human Capital Unqualified i) Out of the total available funds of USD 61,436 (including opening
Fellowship Project Development balances of USD 812.53) only USD 46,265 (75.3%) was spent,
for period 1st Aug resulting in unspent balance of USD 15,170.34
2019 to 31st July ii) USD 10,863.5 (UGX 39,000,000) remained unaccounted for by the
2020 end of the reporting period.
MUST - MENU Human Capital Unqualified i) Out of UGX 236,913,349 project receipts, only UGX 205,511,858
Project for the Development (87%) was spent, resulting in unspent balance of UGX 31,401,491
period 1st Jan 2020
to 31st Dec 2020

MUST - Mobile Human Capital Unqualified i) One student was paid UGX.19,060,100 for five (5) months in
Wallet Project for Development advance for the period January – May 2023 in violation of the project
the period 1st Jun protocols
2022 to 31st May
2023
MUST – REVAMP Human Capital Unqualified i) Out of the project’s total available funds of USD 217,794.32, only
Project for the Development USD 176,909.09 (81%) was spent, resulting in unspent balance of
period 1st July 2019 USD 40,885.
to 30th June 2020
MUST - SMART Human Capital Unqualified i) Out of the project’s total available funds of CAD 250,809.58, only
Discharge project for Development CAD 199,107.38 (80%) was spent, resulting in unspent balance of
the period 1st Apr CAD 51,702.20
2021 to 31st Mar
2022

433
Microfinance Private Sector Unqualified i) The company applied outdated collateral values in the computation
Support Center Development of Expected Credit Loss (ECL). The collateral values relate to the
Limited (MSCL) time the securities were pledged with some dating back as far as 9
years ago. Best practice requires that current and forward-looking
information is applied in estimating ECL.
ii) MSC partially implemented its procurement plan. Out of the planned
procurements worth UGX 9.59 Bn, only procurements worth UGX
3.597 were undertaken.
iii) The entity budgeted to collect UGX.39.508Bn during the year, but
only collected UGX.38.702Bn, representing a 98% performance.
iv) According to the approved budget, the entity was supposed to
receive UGX.180.14Bn out of which UGX.174.34Bn was received,
resulting in a shortfall of UGX.10.8Bn. The shortfall represents 5.9%
of the approved budget.
v) Out of the total available Emyooga funds of UGX.156.7Bn (receipts of
UGX.100Bn and opening balance of UGX.56.7Bn), a total of
UGX.102.5Bn representing 65.4% of the funds was spent and/or
disbursed by the entity, leaving a balance of UGX.54.2Bn (34.6%).
vi) Out of the UGX.65Bn planned to be disbursed (lent out) under
conventional loans in the financial year ended 30th June 2024, only
UGX.26.4Bn had been disbursed.
vii) A review of the loan portfolio of the company revealed that a total of
UGX.117.8Bn relating to conventional lending was outstanding in
gross loans and advances as at 30th June 2024 for which Non-
performing loans stood at 66.4% (UGX.78.2Bn) indicating poor
recovery of these loans.
viii) Some clients were disbursed with loans amounting to UGX.1.9Bn
secured with machinery and other chattels which were not
comprehensively insured. This was contrary to the credit policy.
Ministry of East Agro- Unqualified i) MEACA’s pension and gratuity arrears balance had grown by
African Community industrialization, UGX.186Mn (2%) from UGX.8.99Bn as at 30th of June 2023 to
Affairs (MEACA) Governance and UGX.9.18Bn by the end of June 2024.
security & Private ii) The Ministry had not prioritized implementation of three (03)
Sector Development mandate activities of conducting research, sensitization of the pubic,
private sector and civil society and building capacity of stakeholders
on EAC integration citing inadequate funding.
iii) The objectives of the three (03) programmes of Private Sector
Development, Governance and Security and Agro industrialization

434
 under which the Ministry is funded are not aligned to the mandate
and strategic objectives of the Ministry.
iv) The Ministry did not convene the Sectoral Council meetings on Legal
and Judicial Affairs and there was limited attendance of technical
members from MDAs in Local and regional Technical meetings citing
budgetary restrictions on travel abroad.
v) The Ministry had a budget of UGX.39.37Bn out of which
UGX.39.03Bn was warranted and UGX.38.48Bn had been utilized by
the close of the financial year. All the outputs were not appropriately
quantified to enable assessment of performance of the Ministry.
vi) I undertook a special audit of the pension payroll, and a separate
report was issued.
vii) I undertook a Special audit on the utilisation of funds for the
minister’s office at the MEACA for the period 2021/2022 to
2022/2023 and a separate report was issued.
viii) I conducted an audit of three (3) Treasury Memoranda for the
Ministry and noted that out of the 16 recommendations issued, nine
(9) were fully implemented, five (5) were partially implemented while
two (2) were not implemented at all.
Ministry of Human Capital Unqualified i) The Ministry had outstanding commitments of UGX.1.04Bn
Education and Development comprising of employee costs of UGX.517.5Mn and Pension of
Sports (MoES) UGX.520.9Mn.
ii) The Ministry advanced UGX.13.098Bn to the Ministry of Defence and
Veteran’ Affairs and NEC construction works and Engineering Limited
for the construction of schools, but the works were yet to
commence.
iii) Procurements worth UGX.4.657Bn were conducted outside the e-
government procurement system in violation of issued guidelines.
iv) The ministry appointed 154 Education Officers to Senior Education
Officers, however, there was no salary increment for the promoted
staff.
v) A review of the scholarships awarded in the financial year under
review revealed that scholarship opportunities totalling 139 were
available but only 30 had been awarded resulting in shortfall of 109.
vi) The Ministry has not put in place the Technical Vocational Education
and Training Qualifications Framework, rendering it difficult for all
assessment bodies to effectively execute their mandate.
vii) The entity had an approved budget of UGX.731.9Bn out of which

435
 UGX.466.8Bn was warranted resulting in a shortfall of UGX.262.8Bn
representing a 63.9% performance.
viii) The entity had total warrants of UGX.466.8Bn out of which warrants
worth UGX.407.7Bn had been utilised by the close of the financial
year. The balance of UGX.59.1Bn (13%) was meant for activities
which were either partially or not implemented at all such as
establishment of a national teacher council, vehicles and motorcycles
for supervision of EMIS activities, renovation of Ministry stores in
Industrial area and finalization of the national feeding Policy.
ix) I undertook a special audit of the pension payroll, and a separate
report was issued.
Ministry of Energy Sustainable Unqualified i) Non-tax revenue of UGX.28.33Bn was collected during the year
and Mineral Petroleum against a budget of UGX.54.27Bn, representing a performance of
Development Development & 52% of the target. This was attributed to the ban on exportation of
(MEMD) Sustainable Energy unprocessed minerals.
Development ii) UGX.129.05Bn of the receivables at year end had been outstanding
for over 2 financial years. Long outstanding receivables may
become bad debts leading to potential write-offs and loss to the
ministry.
iii) UGX.35.75Tn relating to historical assets was recognized in the
statement of financial position for the first time following guidance
by the Accountant General. The figure could change following the
conclusion of the ongoing validation and revaluation of the assets
by the Accountant General.
iv) I noted; unspent warrants for pension and gratuity arrears
amounting UGX.3.73Bn; a budget shortfall of UGX.7.95Bn (97%)
on clearance of other domestic arrears; clearance of UGX.0.84Bn
rent arrears for the former REA without budget provision and long
outstanding arrears of UGX.7.14Bn as at the end of the financial
year.
v) I noted non-alignment of the Ministry’s work plan and budget to
PDM and failure by the Ministry to develop the formula to calculate
the Parish vulnerability index.
vi) The Ministry did not prepare multi-year procurement plans for 9
procurements worth UGX.31.66Bn. I also noted challenges with the
e-GP system such as insufficient oversight support, lack of
electronic submission support, duplication of entries, reporting
challenges, procurement planning gaps and insufficient competition

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 support.
vii) The compensation of PAPs was at 76%, 89%, 88% and 95% for
the refined petroleum products pipeline, karuma HPP dam-site,
karuma reservoir area and isimba HPP respectively. Delays in
compensation led to escalations in compensation for the petroleum
product pipeline with a total of UGX.32.09Bn in supplementary
assessments and valuations.
viii) NDP III identified a human resource gap of 6,118 scientists for the
energy transition, with only 29% of professions trainable locally.
However, human resource needs were excluded from PIAP
interventions, leaving them unfunded and unmonitored, risking
energy transition objectives. The Ministry is addressing this through
an Integrated Energy Resources Master Plan, expected by 2025,
and enhanced coordination under NDP IV.
ix) Annual Mineral Rent fees amounting to UGX.4.39Bn due from
exploration and mining companies remained outstanding as at 30th
June 2024. Similarly, UGX.3.91Bn of the Mineral Royalties sharing
fund account remained outstanding.
x) In FY 2023/24, USD 3.01Bn in gold exports occurred without
permits, preventing origin and purity verification, potentially
breaching the 2011 presidential moratorium on export of
unprocessed minerals, and resulting in UGX 68.84Bn in cumulative
unpaid export levies.
xi) Out of the approved budget of UGX.1.79Tn, the total warrants for
the year amounted to UGX.1.67Tn (93%). The budget includes
UGX.1.11Tn relating to external financing and GoU budget of
UGX.678.96Bn.
xii) Out of the Ministry’s GoU approved budget of UGX.678.96Bn,
UGX.601.05Bn was warranted representing an 89% performance.
The shortfall of UGX.77.91Bn that was not warranted represents
UGX.14.20Bn for outputs that were totally unfunded while the
balance of UGX.63.60Bn relates to partially funded outputs.
xiii) Out of the warrants of UGX.601.05Bn, UGX.566.01Bn had been
utilized by the close of the financial year representing an absorption
capacity of 94%.
xiv) I assessed 24 outputs and 200 activities, finding two outputs fully
implemented. Of 197 partially implemented activities, 68 were fully
completed, 74 partially, and 55 unimplemented. Detailed costs per

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 activity were not provided for fund utilization assessment.
xv) I noted that two (2) projects worth UGX.4.71Bn were not functional
despite completion/delivery. The non-functional projects included
two weigh bridges delivered but not installed and the Beneficiation
center constructed in fort portal but not equipped.
xvi) The Electricity Connection Policy aims to increase annual
connections to 300,000, but in 2023, service providers planned
256,257 connections, completing only 63,188 (24.66%) due to
funding gaps and delays in verifying connections.
xvii) I also carried out other audits in the Ministry as highlighted below,
for which separate reports were issued;
a) Follow up audit on the status of implementation of the Auditor
General’s recommendations for the value for money audit on
the implementation of the Fuel Marking Programme by the
Ministry of Energy and Mineral Development
b) Special audit report on gratuity payments and pension payroll for
ministry of energy and mineral development for the financial
years 2019/2020 to 2023/2024
c) A coordinated regional audit on illicit financial flows with a focus
on tax revenue mobilization, and;
d) Special audit on the electricity power lines and connections claims
by service providers against the defunct Rural Electrification
Agency.
xviii) I undertook a special audit of the pension payroll, and a separate
report was issued.
Ministry of Gender, Community Unqualified i) Out of an approved budget of UGX.363.43Bn, UGX.303.8Bn (84%)
Labour and Social Mobilization and was warranted resulting in a shortfall of UGX.59.63Bn.
Development Mindset Change, ii) Out of the UGX.303.8Bn, warranted, UGX.247.44Bn had been
(MoGLSD). Governance and utilized leaving a balance of UGX.56.36Bn unutilized
Security & Human iii) 426 workplaces had not renewed their certificates, leading to
Capital Development uncollected renewal fees UGX.0.49Bn.
iv) Out of 1,400 planned inspections, only 390 workplaces (28%) were
inspected, leaving 1,010 (72%) uninspected.
v) Government institutions/workplaces were operating without
Occupational Safety and Health (OSH) registration, and no fines
were imposed on these institutions, contrary to existing regulations.
vi) Out of the YLP recoverable amount of UGX.169Bn only UGX.40Bn
(24%) had been repaid leaving UGX. 129Bn unrecovered. Similarly,

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 out of the UWEP recoverable amount of UGX.67Bn only UGX.36Bn
(56%) had been paid leaving UGX.31Bn unrecovered.
vii) Out of 53 licenced firms, only 17 (32%) submitted labour returns.
viii) I undertook a special audit of the pension payroll, and a separate
report was issued.

Generating Growth Community Unqualified i) There was delay in training of women beneficiaries and this
Opportunities and Mobilization and affected absorption of funds.
Productivity for Mindset Change ii) Out of the expected disbursement of UGX.112.57Bn, only
Women Enterprises UGX.52.18Bn had been disbursed resulting in a shortfall of UGX.
Project (GROW) 60.38Bn representing 46.4% performance.
iii) Out of the total available funds of UGX.52.18Bn, only UGX.10.96Bn
was spent resulting in unspent balance of UGX.41.22Bn
representing an absorption level of 21%.
iv) Most of the activities had not started due to lack of sensitization
and training coupled with late disbursement, for instance in the first
year of implementation.
Islamic Human Capital Unqualified There were no reportable issues
Development Bank Development
Operational (IsDB)
Special Account for
the Quarter ended
31st March 2024
Islamic Human Capital Unqualified There were no reportable issues
Development Bank Development
(IsDB) Special
Account
for the quarter
ended 30th June
2024
Islamic Human Capital Unqualified There were no reportable issues
Development Bank Development
Operational (IsDB)
Special Account for
the Quarter ended
31st December 2023

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Ministry of Community Unqualified i) The entity had an approved budget of UGX.154.064Bn out of which
Information, Mobilization and UGX.139.803Bn was warranted resulting in a shortfall of
Communications Mindset Change & UGX.14.261Bn representing a 90.74% performance.
Technology and Digital ii) The entity had total warrants of UGX139.803Bn out of which
National Guidance Transformation warrants worth UGX.139.614Bn had been utilized by the close of the
financial year leaving a balance of UGX 0.188Bn unutilized.
iii) Three (3) out of the seven (7) modules of the Parish Development
Model Information System (PDMIS) had been developed and rolled
out.
iv) The PDMIS was yet to be fully integrated with banking systems.
v) The Ministry awarded two contracts worth UGX 17.727Bn to various
contractors without approved funding in the budget.
vi) The Ministry failed to fully settle the outstanding Pension Arrears
totaling to UGX.155.084Bn in the period under review.
Ministry of Kampala Development Plan Unqualified i) Out of the 50 approved posts, only 28 (56%) posts were filled,
Capital City and Implementation, leaving 22 (44%) posts vacant.
Metropolitan Affairs Public Sector ii) The Ministry had not prioritized implementation of four (4) mandate
Transformation, & activities of development of a physical development plan, drainage
Sustainable master plan, legislative framework to coordinate local economic
Urbanisation and development and construction of bus terminals.
Housing iii) The Ministry had not implemented the following key strategic
initiatives; slum upgrading, development of youth empowerment
centres, designing of tourism products, GKMA solid waste
management which are in the Greater Kampala Economic
Development Strategy.
iv) The entity had total warrants of UGX.7.80Bn out of which warrants
worth UGX.7.62Bn had been utilised leaving a balance of
UGX.178.93Mn.
v) Out of 26 activities, the entity fully implemented two (2) activities
worth UGX.70Mn while 24 activities worth UGX.7.24Bn were partially
implemented.
Ministry of Lands, Natural Resources, Unqualified i) There was a 55.8% increase in outstanding commitments, from
Housing & Urban Environment, Climate UGX.163.2Bn in the previous year to UGX 246.3Bn in the current
Development Change, Land and year owing to court awarded compensations.
Water & Sustainable ii) Out of capitalization requirement of UGX.118.08Bn for the National
Urbanisation and Housing and Construction Company LTD, Only UGX.30Bn was
Housing provided resulting in a shortfall of UGX.88.10Bn (75%).
iii) The Ministry made multi-year procurements of UGX.1.1Bn without

440
 the required approval of Parliament.
iv) There was a budget shortfall of UGX.9.4 Bn (94%) which negatively
affected the implementation and achievement of the services
expected. In addition, there were unutilized warrants of UGX.10.7Bn
resulting in partial or unimplemented activities.
v) 75 activities were fully implemented; 25 activities were partially
implemented; 12 activities were not implemented at all
vi) Supplementary expenditure amounting to UGX.5.2Bn did not meet
the supplementary expenditure criteria.
vii) Whereas the Ministry clients’ charter provides a period of 5 days to
process a land title, it took an average of 51 days to process the title
in the Ministry Zonal offices sampled
viii) I undertook a special audit of the pension payroll, and a separate
report was issued.
Ministry of Local Agro-Industrialization Unqualified i) The Ministry had an outstanding arrears balance of UGX.22.43Bn at
Government Development Plan the close of the FY 2023/2024. I further noted that the Ministry
Implementation provided for UGX.0.11Bn for settlement of prior year arrears yet the
Governance and balance of arrears was UGX.22.47Bn in 2022/2023. This resulted in
Security, Human an under budgeting of UGX.22.37Bn.
Capital Development ii) PDM activities worth UGX.5.75Bn that were planned and fully funded
Legislation, Oversight were not fully implemented.
and Representation iii) The PDM secretariat did not avail records of the NPC resolutions
Natural Resources, made to ascertain the status of implementation of resolutions.
Environment, Climate iv) The MoLG pillar working group did not develop the formula to
Change, Land and calculate the Parish vulnerability index.
Water Public Sector v) The Ministry had total warrants of UGX.66.90Bn out of which
Transformation UGX.63.80Bn had been utilized by the close of the financial year. The
Regional Balanced balance of UGX.3.10Bn was meant for recruitment of CAOs and
Development enhancement of their salaries which were delayed.
Sustainable vi) I assessed 21 outputs with 58 activities worth UGX.31.54Bn and
Urbanisation and noted 12 outputs with 22 activities worth UGX.21.2Bn were fully
Housing implemented, nine (9) outputs with 36 activities worth UGX.10.34Bn
were partially implemented.
vii) The Ministry created 740 new administrative units which required
UGX.74Bn at a rate of UGX.100Mn per unit as per the guidance
issued by the Ministry. This resulted in an under budgeting of
UGX.67.2Bn. I noted that UGX.6.7Bn was released for the start-up
funds for the last three (3) years against the approved budget of

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 UGX.6.80Bn resulting in under release of UGX.0.1Bn.
viii) The Ministry provided funds to the newly created administrative units
for construction of administration blocks without uniform approved
standard structural designs.
ix) Out of 21 newly created units provided with funds amounting to
UGX.1.35Bn for the last three financial years, 19 units used the funds
for constructions while the two (2) units used the funds to procure
land. I inspected the 19 structures and noted Six (6) units had
completed the construction or renovation of the structures while 12
units were still under construction.
x) I undertook a special audit of the pension payroll that covered a
period from FY 2019/20 to 2023/24 and a separate report was
issued.
xi) I undertook a value for money audit on supervision of Local
Governments by MoLG and an Information Systems Audit of the
Electronic Local Government Revenue Management System (E
LOGREV) issued separate reports.
xii) I undertook an audit of the Treasury Memorandum financial Year
2014/2015 and noted that out of the 47 recommendations issued, 17
recommendations were fully implemented, 14 recommendations
were partially implemented while 16 recommendations were not
implemented.
Local Economic Public Sector Unqualified i) I observed that the Microfinance Support Centre disbursed loans of
Growth Support Transformation UGX.0.686Bn to private companies, contrary to the financing
Project (LEGS) under agreement provisions which denied the intended beneficiaries access
MoLG to project funding.
ii) The project planned to spend UGX.62.54Bn out of which only
UGX.35.80Bn was spent. This affected the implementation of project
activities, some of which include construction of irrigation schemes,
produce marketing yards, artificial insemination units and processing
plants among others.
iii) I carried out a Value for Money audit on the Project to assess the
extent to which the implementation of the project by the MoLG
delivered the intended outputs and a separate report was issued.
iv) The project management engaged a consultant to provide
consultancy services without a contract worth USD.301,477.89
(UGX.1.14Bn) contrary to the procurement and the Islamic
Development Bank regulations.

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National Oil Seed Agro-Industrialization Unqualified i) Out of the expected total disbursement of UGX.111.98Bn, only
Project (NOSP) IFAD Development Plan UGX.18.32Bn (16%) had been disbursed awaiting the procurement of
LOAN NO. Implementation the civil works consultant.
200000328100 ii) Out of the total disbursed funds of UGX.18.32Bn, the project had
(Component 2), absorbed UGX.12.13Bn by the end of the financial year under audit.
implemented by The balance of UGX.6.19Bn was held on the project bank account in
MoLG Bank of Uganda.
iii) I sampled six (6) activities with a budget of UGX.72.78Bn and noted
that targets for two (02) activities worth UGX.14.74Bn had been
partially achieved while targets for the remaining four (04) activities
worth UGX.58.04Bn were yet to be achieved.
Ministry of Tourism, Tourism Unqualified iv) The Ministry entered a UGX.2.7Bn Grant Agreement on behalf of GoU
Wildlife and Development with Maro Eco Tourism Resort Management for the development and
Antiquities (MoTWA) improvement of the Maro Eco Tourism Centre. It was noted that
there was a delay in implementation of phase one activities for which
UGX0.68Bn was advanced.
v) The entity had an approved budget of UGX.223.368 Bn out of which
UGX.221.463Bn (99.15%) was warranted resulting in a shortfall of
UGX.1.905 Bn.
vi) Eleven (11) outputs with nineteen (69) activities and expenditure
worth UGX.52.135 Bn were fully implemented.
vii) Three (3) outputs with nineteen (19) activities and expenditure worth
UGX.13.888 Bn were partially implemented.
viii) The Ministry, one of the long-standing members of the UN World
Tourism Organization (UN Tourism) had accumulated payables
amounting to UGX.2.27Bn owing to the Organization based on the
Lusaka Agreement. The long outstanding liability remains overdue for
years.
Ministry of Water Agro-industrialization Unqualified i) The Ministry spent UGX.18.49Bn on unbudgeted domestic arrears.
and Environment Human Capital ii) UGX.119.95Bn of the domestic arrears have been outstanding for
Development Natural more than two.
Resources, iii) Land acquired of UGX.13.15Bn lacked land titles.
Environment, Climate iv) The Ministry Property, Plant and Equipment (PPE) of UGX.803.84Bn,
Change, Land and out of which UGX.113.57Bn related to historical assets recognized for
Water the first time following guidance by the Accountant General.
v) MWE did not withhold tax worth UGX.437.86Mn.
vi) UGX.1.464Bn was paid to a private company on payment voucher
No. D530/05/R/24 to settle interest that had accrued due to delayed

443
 payment of retention amounting to UGX.1.88Bn.
vii) The Ministry procured goods and services at prices significantly
different from those given by the market assessment reports.
viii) The Q4 cumulative performance report disclosed total receipts of
UGX.1.33Tn, while the total warrants report for the Ministry
extracted from IFMS revealed total receipts of UGX.1.194Tn creating
a variance of UGX.0.13Tn.
ix) The Q4 cumulative performance report disclosed total expenditure of
UGX.0.98Tn, while the total IFMS expenditure of the Ministry was
UGX.0.62Tn creating a variance of UGX.0.36Tn.
x) Out of the approved budget of UGX.1,226.96Bn, UGX.1,194.45Bn
(97%) was warranted, out of which UGX.659Bn (55%) had been
utilised by the close of the financial year.
xi) I observed that though the work plans uploaded in the Programme
Budgeting System (PBS) were quantified and had costs at output
level, these costs were not supported by activity costs.
xii) Two (2) outputs with 308 activities worth UGX.510Bn were partially
implemented. Out of 308 activities, the entity fully implemented 194
activities, 68 activities were partially implemented while 46 activities
remained unimplemented.
xiii) Out of the 23 sampled projects, six (6) projects worth UGX.30.25Bn
had delays averaging fifteen (15) months from the expected
completion date.
xiv) I undertook physical inspections on 23 projects sampled and noted
defects on five (5) of the thirteen (13) projects worth UGX 2.106Bn.
xv) Two (2) out of the 23 sampled projects worth UGX2.08Bn were not
functional despite their completion.
xvi) I undertook a special audit of the pension payroll, and a separate
report was issued.

Ministry of Public Public Sector Unqualified i) MoPs did not adequately implement 17 of its mandated activities in
Service (MoPS) Transformation the last three (3) years.
ii) The entity had an approved budget of UGX.34.39Bn out of which
UGX.31.74Bn was warranted resulting in a shortfall of UGX.2.65Bn.
UGX.29.9Bn had been utilised by the close of the financial year
leaving a balance of UGX.1.84Bn.
iii) I assessed 16 outputs with 101 activities worth UGX.12.7Bn; 56
activities worth UGX.4.1Bn were fully implemented, 45 activities

444
 worth UGX.8.67Bn were partially implemented.
iv) MoPs did not have representation in the Governance and
Administration and Social Services PDM working groups implying that
the Ministry did not participate in the review and amendments of the
operational guidelines.
v) Out of the 41 Bills that give effect to RAPEX, 36 Bills affecting 43
institutions had been passed by Parliament, while four (4) affecting
seven (7) institutions were pending legislation in Parliament. 43 out
of the 60 entities have either been merged, mainstreamed, or
transferred to their parent Ministries.
vi) Seven (7) procurements worth UGX.811.2Mn were made outside the
e-GP system which undermines the objectives of e-procurement.
vii) I noted delayed contract implementation for four (4) contracts worth
UGX.477.81Mn with an average delay of four (4) months.
viii) I undertook a special audit of the pension payroll that covered a
period from FY 2019/20 to 2023/24 and a separate report was
issued.
ix) The special audit also highlighted cross-cutting pension and gratuity
policy matters for the Government to address in order to streamline
and improve the pension and gratuity management processes.
x) I conducted an audit of the Treasury Memoranda for FYs 2015/16,
2014/15 and 2020/21 and noted that out of the 29 recommendations
issued; seven (7) recommendations were fully implemented; 15
recommendations were partially implemented while seven (7)
recommendations were not implemented at all
Ministry of Works Integrated Transport Unqualified i) UGX.242.55Bn in payables was disclosed under the Statement of
and Transport Infrastructure and Financial Position, with UGX.30.98Bn outstanding for over three
(MoWT) Services years, contravening Treasury Instructions 2017.
ii) The Ministry settled arrears of UGX.69.53Bn during the year,
including UGX.68.38Bn from funds appropriated for current
activities, diverting funds for ongoing projects.
iii) Irrecoverable receivables and advances totaling UGX.626.52Mn
from past financial years remain unresolved, inflating the asset
position in the financial statements.
iv) Four (4) Logistics Officers and several other staff were paid salaries
lower than their appointment letters and approved costed
establishment structure, exposing the Ministry to legal risks.
v) UGX.32.99Bn (30%) of the UGX.109.86Bn settlement for Motor

445
 Vehicle Inspection Services (MVIS) was paid, but ownership of
assets has not yet been transferred to GoU contrary to the terms of
the agreement.
vi) The Ministry registered 13,176 motor vehicles older than 15 years
contrary to Section 15 of the Traffic and Road Safety Act,
undermining efforts to reduce road accidents and carbon emissions,
vii) The Ferry Licensing Agreement (FLA) expired in August 2020, and
the service provider has not paid USD 200,000 in vessel licensing
fees and USD 4,000 in operating license fees for four years,
resulting in financial loss.
viii) Five out of ten activities in the Ministry’s approved work plan were
not aligned with the PDM Working Group’s activity implementation
plan, and differing quantitative targets were noted for overlapping
activities.
ix) The annual PDM reports necessary for confirming activity
expenditures and outputs were not availed for audit verification.
x) The Ministry of Works and Transport failed to develop a formula for
calculating the Parish Vulnerability Index, contrary to the PDM
operational manual, potentially affecting prioritization of vulnerable
parishes.
xi) The Ministry did not perform market assessments for procurements
worth UGX.3.75Bn, contrary to Regulation 3(2)(a) of the Public
Procurement Rules 2014.
xii) The Ministry faced challenges in implementing its mandate,
particularly in strengthening transport asset management, as the
repair and maintenance of road equipment was not adequately
executed, affecting District, Urban, and Community Access Roads
(DUCAR).
xiii) Out of the approved budget of UGX.1,470.018Bn, only
UGX.754.344Bn (51.32%) was warranted, leaving a funding
shortfall of UGX.715.675Bn, negatively affecting planned activities.
xiv) Out of Warrants worth UGX.754.344Bn issued, UGX.753.678Bn was
utilized. The balance of UGX.0.665Bn related to partially or
unimplemented activities, including unpaid pensions and halted
field trials for Consolid-55 road stabilizers.
xv) Out of 28 outputs with 292 activities worth UGX.546.48Bn, 22
outputs and 179 activities worth UGX.359.04Bn were fully
implemented. However, six outputs with 113 activities worth

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 UGX.187.44Bn were partially implemented, while two activities
worth UGX.0.7Bn remained unimplemented.
xvi) Five out of 11 sampled projects worth UGX.34.001Bn faced delays
averaging 13 months, caused by contractor abandonment, budget
cuts, and adverse weather conditions.
xvii) Inspections revealed defects on two projects worth UGX.7.87Bn,
including incomplete rectifications and inadequate management of
right-of-way issues, affecting usability and service delivery.
xviii) One project worth UGX.2.71Bn, the Low-Cost Sealing of Bitereko-
Nchwera Road, faces limited functionality due to the inadequate
width of a critical bridge, which risks becoming a bottleneck.
xix) Only UGX.25Bn (3.57%) of the UGX.699.64Bn required for the
rehabilitation of 2,058.6 km of security roads in Karamoja Sub-
Region and Surrounding Areas was released, significantly stalling
the Cabinet directive to improve connectivity and security.
xx) For the DRC Roads, the Mpondwe/Kasindi-Beni Road is 49.68%
complete, Beni-Butembo road is 0.15% complete, and Bunagana-
Rutshuru-Goma road has not commenced.
xxi) Out of UGX.4.4Bn budgeted for road maintenance under DRRU-
West, only UGX.2.11Bn (48%) was received, leaving a shortfall of
UGX.2.30Bn, which prevented the rehabilitation of 13 roads worth
UGX.2.25Bn.
xxii) DRRU-North received UGX.2.55Bn out of UGX.4.4Bn, resulting in
only 66.6 km of the planned 135.9 km being rehabilitated.
xxiii) For Standard Gauge Railway (SGR), the 273km Kampala-Malaba
route, expected to be operational by March 2018, had not
commenced by the end of the financial year due to lack of co-
funding.
xxiv) Compensation for 2,448 Project-Affected Persons (PAPs) for the
Standard Guage railway, valued at UGX.184.08Bn, remains
unsettled, leading to increased costs due to re-assessments and
administrative expenses.
xxv) The Uganda Civil Aviation Authority (UCAA) renewed the Academy’s
certification for 12 months but cited non-compliance in training and
staffing requirements, risking revocation of its certification.
xxvi) I carried out a special audit on the pension and gratuity payroll and
issued a separate report to Parliament.

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Busega Mpigi Road Integrated Transport Unqualified i) Out of the expected total disbursement of UGX.534.523Bn, the
Project (ADB Loan Infrastructure and project received UGX.271.688Bn, leading to a shortfall of
No: Services UGX.262.835Bn
2100150035493) for ii) The GoU disbursed UGX.105.723Bn as counterpart funding out of
the year 30th June the expected UGX.145.902Bn, leaving a balance of UGX.40.179Bn
2023 iii) UNRA on 18th June 2019 entered a contract with the Contractor for
civil works for the construction of Busega - Mpigi expressway at a
contract sum of UGX.547.543Bn without the engineer’s estimates
and detailed designs to support the contract amount.
Busega Mpigi Road Integrated Transport Unqualified i) The Busega-Mpigi Expressway project has experienced significant
Project (ADB Loan Infrastructure and cost escalation from UGX.547.5Bn to UGX.1.35Tn as at 31st March
No: Services 2023 due to inadequate detailed designs at contracting.
2100150035493) for ii) Total expected cumulative disbursement from ADF and ADB was
the year 30th June UGX.530.44Bn, but actual disbursements amounted to
2024 UGX.428.08Bn (80.7%), leaving UGX.102.35Bn undisbursed.
iii) The Government incurred commitment fees of USD 1.55Mn on
undisbursed donor funds due to delayed utilization as at 31st March
2024.
iv) Expected cumulative disbursement was UGX.145.90Bn, but actual
disbursements totaled UGX.118.19Bn (81%), leaving UGX.27.71Bn
undisbursed.
v) The Busega-Mpigi Expressway project achieved 40.86% physical
progress by 30th June 2024, with consultancy services and capacity-
building activities largely completed; however, there were noted
delays in compensating 1,527 Project Affected Persons (valued at
UGX.50.89Bn).
vi) The project had an approved budget of UGX.185.42Bn for FY
2023/2024, of which UGX 168.86Bn was available for spending,
resulting in a shortfall of UGX.16.56Bn and an overall performance
rate of 91.07%.
vii) The total available funds for the project for the financial year
2023/2024 amounted to UGX 168.86Bn, all of which were fully
utilized, achieving an absorption level of 100%.
Kapchorwa Suam Integrated Transport Unqualified i) Out of the expected total donor disbursement of USD.94,489,597,
road upgrading Infrastructure and the project had received USD.61,006,943, leading to undisbursed
project for the year Services funds of USD.33,482,654.
ended 30th June ii) Due to the low absorption, the undisbursed loan balance attracted
2023 commitment charges of USD.1,379,406

448
 iii) At year end, GoU had disbursed USD.33,977,860 as counterpart
funding, in contrast to the expected USD.11,2800,000, leading to
an over disbursement of USD.22,697,860. The over-disbursement
was to cover unbudgeted civil works.
iv) The project had an approved budget of UGX.66.9Bn, however,
UGX.104.8Bn (156.6%) was available for spending, resulting in
over expenditure above the budget provisions by 37.9Bn.
Kapchorwa Suam Integrated Transport Unqualified i) Total expected cumulative disbursement from ADB and ADF was
road upgrading Infrastructure and USD 94.49Mn, but actual disbursements amounted to USD 84.82Mn
project for the year Services (90% performance). ADB disbursed 99% of its expected funding,
ended 30th June while ADF achieved only 83%, resulting in a total variance of USD
2024 9.67Mn.
ii) The government incurred a cumulative amount totaling UA 1.44Mn
(USD 1.96Mn) as at 20th March 2024 in commitment fees due to
undisbursed donor funds.
iii) Cumulative disbursements from GoU were USD.40.77Mn,
significantly exceeding the expected amount of USD.11.28Mn by
361%.
iv) Seven additional interventions with a total value of UGX.44.37Bn
were approved by ADB, subject to completion by 30th June 2025.
However, only one intervention is in the final stages of
procurement, while six remain at the initiation stage.
v) For the financial 2023/2024, the project received UGX.116.42Bn
against an approved budget of UGX.97.1Bn, resulting in a surplus
of UGX.18Bn (120% performance).
vi) All available funds of UGX 116.42Bn were fully utilized at end of
financial year 30th June 2024, achieving a 100% absorption rate.
vii) The training contract worth USD 125,000 for labour-intensive
income-generating activities was not implemented by its expiry
date of 30th June 2024.
Mountains of the Human Capital Unqualified i) The University had outstanding payables of UGX0.895Bn as at 30th
Moon University Development June 2024, of which, UGX.0.814Bn relates to prior financial years.
(MMU) ii) funds to pay for the multi-year project worth UGX.15.492Bn were
not released as budgeted.
iii) The University had 71 academic programmes, out of which 2 were
not accredited, 43 were accredited, 21 did not attract any students
while 5 programmes admitted students beyond the accredited
numbers.

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 iv) Management signed contracts worth UGX.1.472Bn with various
contractors without carrying out market surveys.
v) The entity had an approved budget of UGX.43.48Bn out of which
UGX.41.195Bn was warranted resulting in a shortfall of UGX.2.285
Bn representing a 95% performance.
vi) The University had total warrants of UGX.41.195Bn out of which
warrants worth UGX.41.193Bn had been utilised by the close of the
financial year leaving the balance of UGX.0.731Bn unutilized.
vii) Eight (10) outputs with 22 activities worth UGX.7.087Bn were fully
implemented, while one (1) output with 2 activities worth
UGX.0.328Bn was partially implemented.
Building Resilient Natural Resources, Unqualified There were no reportable issues
Communities, Environment, Climate
Wetland Ecosystems Change, Water and
and Associated Land Management
Catchments in
Uganda (UNDP
Project implemented
by MWE) for the
year ended 31st Dec
2023
Multinational Lake Natural Resources, Unqualified i) The AfDB has cumulatively disbursed USD 6.15Mn, which is 46% of
Victoria Maritime Environment, Climate the planned USD 13.38Mn. The GOU exceeded its planned
Communications and Change, Water and disbursement by USD 0.21Mn.
Transport Project Land Management ii) I reviewed the status of implementation of the project activities and
(MLVMCT) noted that; the MRCC Call Centre has been operationalized, and
construction at the Fisheries Training Institute was completed.
Procurement of SAR boats and MRCC equipment is ongoing, while
delays were experienced at Masese and Kaazi due to terminated
contracts.
iii) The project received UGX.28.94Bn out of an approved GOU budget
of UGX.29.89Bn in FY 2023.2024. This reflects a shortfall of
UGX.0.95Bn from GOU contributions.
iv) Out of the total available funds of UGX.29.53Bn, only UGX.7.46Bn
was spent, representing a 25% absorption rate.
v) Search and Rescue (SAR) equipment was delivered to Ministry stores
instead of the designated landing sites due to incomplete civil works
at the sites. This delay affects the installation, testing, and use of the

450
 equipment, compromising maritime safety operations.

Muni University Human Capital Unqualified i) The entity had an approved budget of UGX.31.64Bn out of which
Development UGX.30.44Bn (96%) was warranted resulting in a shortfall of
UGX.1.20Bn.
ii) Out of the total warrants of UGX.30.40Bn, UGX.30.38Bn had been
utilized by the close of the financial year.
iii) 13 outputs with 39 activities and expenditure worth UGX.0.87Bn
were fully implemented.
iv) Twenty (20) outputs had sixty (60) activities worth UGX 16.75Bn
fully implemented, 19 activities worth UGX.5.63Bn were partially
implemented while fourteen (14) activities worth UGX.3.59Bn
remained unimplemented.
v) Funds totaling to UGX.1.493Bn paid to principal investigations lacked
progress reports.
vi) The University signed contracts worth UGX.1.486Bn with bidders,
without performance security.
vii) The University released performance security of contracts worth
UGX.9.393Bn before fulfillment of the obligations by the service
providers.
viii) I noted that works of UGX.11.231Bn were behind schedule.
Muyembe - Integrated Transport Unqualified i) Cumulative project disbursements as of 30th June 2024 fell
Nakapiripirit Road Infrastructure & significantly short of targets, with IsDB disbursing only USD 67.1Mn
Project Services (61% of USD 110Mn) and GoU disbursing USD 4.6Mn (26% of USD
18Mn).
ii) The secondary roads component (USD 10Mn), weighing and axle
load control equipment (USD 2.59Mn), and workshop and
familiarization visits (USD 0.15Mn) remain unimplemented.
iii) The project had an approved budget of UGX.99.42Bn for the
financial year 2023/2024, but total receipts amounted to
UGX.126.5Bn, resulting in a surplus of UGX.27.08Bn (127%
performance).
iv) Out of the total available funds of UGX.126.535Bn, UGX.126.335Bn
was spent, leaving an unspent balance of UGX.0.2Bn, representing
an absorption level of 99.8%.
v) The Muyembe-Nakapiripirit Road project, initially scheduled for

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 completion in March 2023 and now extended to January 2025, has
achieved only 71% physical progress. It is unlikely that the project
will be completed in the remaining one month.
Koboko - Yumbe - Integrated Transport Unqualified i) As of 30th June 2024, out of the total expected donor funding of
Moyo road corridor Infrastructure & USD 130.8Mn, IDA had disbursed USD 34.4Mn (26.6%), leaving an
Project Services undisbursed balance of USD 95.98Mn.
ii) The Government incurred USD 1.78Mn in commitment fees on
undisbursed donor funds due to delayed disbursements.
iii) GoU funding of USD 20Mn had achieved disbursements of USD
9.17Mn (45.9%), leaving a variance of USD 10.83Mn.
iv) Of the USD 17.9Mn (UGX.66.2Bn) approved budget for the financial
year 2023/2024, only USD 16.6Mn (UGX.61.4Bn) was received,
resulting in a funding shortfall of USD 1.3Mn (UGX.4.8Bn) and a
performance level of 93%.
v) The project had USD 34.8Mn (UGX.128.8Bn) available for spending
during FY 2023/2024 but only USD 14.9Mn (UGX.53.5Bn) was
spent, resulting in an absorption rate of 42.7%. An unspent
balance of USD 19.93Mn (UGX.75.3Bn) remained on the special
accounts.
vi) Several key project activities, like the Completion of the
Development and Operationalization of the National Crash
Database remain unimplemented.
vii) The compensation of Project-Affected Persons (PAPs) stood at
91%, with 3,049 PAPs paid UGX.29.8Bn out of the total 3,353 PAPs
valued at UGX.35.91Bn, leaving 304 PAPs outstanding.
North-Eastern Road Integrated Transport Unqualified i) The project, initially allocated XDR 157,600,000 (USD 243.80
Corridor Asset Infrastructure & million), suffered a foreign exchange depreciation of approximately
Management Project Services USD 34,395,304, reducing available funds to USD 209,404,696 as
(NERAMP) of 31st July 2024.
ii) Out of the approved USD 243,800,000 for Donor Funds (IDA), only
USD 161,719,480 (66.3%) had been disbursed, leaving USD
82,080,520 undisbursed.
iii) Of the expected USD 11,200,000 for Government Counterpart
Funds (GoU), only USD 2,878,855 (25.7%) had been disbursed,
leaving USD 8,326,145 undisbursed.
iv) Key project activities, including road rehabilitation and
compensation of Project Affected Persons (PAPs), experienced
significant delays. For Lot 1 (150.8km), no rehabilitation works had

452
 commenced. For Lot 2 (189.4km), progress on asphalt, base, and
subbase layers was below planned targets.
v) Out of 329 PAPs, 97 remain unpaid, risking project delays and
community resistance.
vi) For the financial year 2023/2024, the project achieved 97% receipt
performance, with USD 81,940,611 received out of an approved
budget of USD 84,222,912, leaving a shortfall of USD 2,282,301.
vii) Out of USD 103,000,992 available for the project, only USD
79,411,852 (77%) was spent, leaving an unspent balance of USD
23,658,573 held in project bank accounts at the Bank of Uganda.
viii) Lot 1 (Tororo-Mbale-Soroti, 150.8km): No works had commenced
by September 2024, despite a planned completion by October
2024.
ix) Lot 2 (Soroti-Lira-Kamdini, 189.4km): Progress was significantly
behind schedule, with asphalt works at 0.45% for Lot 2A and
62.51% for Lot 2B.
x) On the Tororo-Mbale-Soroti section (Lot 1), pothole seals were
defective with bleeding and rutting observed. Drainages were
blocked due to poor maintenance, and missing signage and
markings increased safety risks.
xi) On the Soroti-Lira-Kamdini section (Lot 2), the wearing course
showed early signs of failure due to high bitumen content. Blocked
culverts and a lack of access for PAPs disrupted drainage. Safety
features like guardrails were missing on new structures, posing
significant risks.
National Building Infrastructures Unqualified i) Out of UGX.22.4Bn of the approved and released budget, only
Review Board UGX.12.57Bn was utilized, leaving UGX.9.83Bn unspent.
(NBRB) ii) None of the 3 outputs assessed comprising 63 activities worth
UGX.19.11Bn were fully implemented. Only 7 activities worth
UGX.0.44Bn were fully implemented, 31 were partially
implemented, and 25 remained unimplemented.
iii) Funds for the construction of the National Building Research Centre
worth UGX.4.28Bn were released but not utilized due to contract
termination and failure to secure land and appoint a new
contractor.
Naguru National Human Capital Unqualified i) Out of the approved budget of UGX.18,434,720,542, the total
Referral Hospital Development warrants for the year amounted to UGX.18,164,516,991 resulting in
a shortfall of UGX.0.270Bn representing 99% performance.

453
 ii) Out of the total warrants of UGX.18.165Bn, only UGX.16.77Bn had
been utilised by the close of the financial year, leaving a balance of
UGX.1.395Bn not utilised.
iii) Out of a sample of nine (9) outputs with 40 activities worth
UGX.2.92Bn assessed, 7 outputs with 27 activities and expenditure
worth UGX.1.31Bn were fully implemented while two (2) outputs
with 13 activities worth UGX.1.61Bn were partially implemented.
iv) I undertook a special audit of the Hospital gratuity and pension
payroll and issued a separate report
National Agricultural Agro-industrialization Unqualified i) A decision was made to merge, mainstream and transfer the
Advisory Services functions of NAADS to MAAIF without; a clear strategy on how the
(NAADS) staff of NAADs are to be validated and absorbed within MAAIF
ii) There were also no clear procedures through which government
assets under NAADs are to be accounted for. The assets may be
lost during the transition if no clear handover procedures are
followed.
iii) As at 30th June 2024 NAADS had arrears amounting to
UGX.15.89Bn. Besides, there was no clear strategy on how these
arrears will be absorbed and cleared by MAAIF.
iv) NAADS had 34 Letters of Credit worth UGX.9.73Bn which had not
performed for more than one (1) year, indicating a weakness in
contract management.
v) NAADS had not undertaken verification of the beneficiaries who
received tea seedlings worth UGX.61.1Bn on credit following a
Cabinet decision to have the verification completed by 30th October
2022.
vi) While the distribution of tea seedlings was meant for only season B
of 2022 (August - October 2022), the distribution in three (3)
districts worth UGX.7.55Bn was made in season A of 2023 (March –
June 2023). These are arrears that could have been avoided if
NAADS had complied with the Cabinet directive.
vii) The entity had partially executed three (3) mandate activities of
increasing access to critical and quality farm inputs and agro-
processing and value addition as well as improving post-harvest
handling and storage.
viii) NAADS had a budget shortfall of UGX.4.02Bn. Despite the shortfall,
UGX.381Mn of what was availed was not utilized. This affected the
implementation of planned activities.

454
 ix) Two (2) outputs with 34 activities worth UGX.29.37Bn were
partially implemented while one (1) output with two (2) activities
worth UGX.999Mn were not implemented at all.
x) The supplier of tractors had received full payment for the 12
tractors worth UGX.1.17Bn before delivery despite the contract
agreement providing for 90% until full delivery is made. At the time
of inspection, the tractors had not been distributed, one (1) month
after the expected distribution date.
xi) Three (3) milk coolers worth UGX.631Mn and two (2) cold rooms
worth UGX.185Mn delivered in various districts were not
operational because of lack of power to run the equipment.
xii) I undertook a follow-up of six (6) completed projects highlighted in
my prior year report to confirm their functionality and noted that
three (3) projects worth UGX.3.67Bn were still not functional.
xiii) Out of seventeen (17) recommendations given in the Treasury
memorandum on the report of the Public Accounts Committee -
Central Government on the report of the Auditor General for
financial year 2020/21, four (4) recommendations were fully
implemented, eleven (11) were partially implemented, while two
(2) were not implemented at all.
National Agricultural Agro-industrialization Unqualified
i) NARO had an arrears balance of UGX.4.12Bn in FY 2023/2024 that
Research Innovation,
increased from UGX.2.17Bn in the FY 2022/2023 representing
Organisation (NARO) Technology
89.7% increment.
Development and
Transfer Programme ii) NARO had eight (8) pieces of un-surveyed land estimated at
Regional 1,345.98Ha which exposes the land to encroachment. Further, five
Development (5) pieces of surveyed land measuring approximately 543.69
Programme Hectares remained untitled.
iii) The Agency had seven (7) pieces of land that had been encroached
on by both private and public entities where in some cases
developments had been undertaken by the encroachers, rendering
recovery very difficult.
iv) Out of the approved 1,180 staff, only 777 positions were filled,
leaving a balance of 403 positions vacant representing a 34% gap.
v) Out of a sample of 29 procurements, 20 procurements worth
UGX.26.09Bn took an average of six (6) months from initiation to
final contract signing. Further, there was an average delay of four

455
 (4) months from the planned date of contract signing to actual
contract signing date.
vi) I noted delayed contract implementation for eight (8) contracts
worth UGX.26.26Bn with delays ranging from three (3) months to
over two (2) years.
vii) Two (2) mandate activities; management of the Agricultural
Research Trust Fund (ARTF) and registration of potential
agricultural research service providers in the public and private
sectors were not undertaken. The service delivery benefits were
not achieved.
viii) Out of the budget of UGX.166.49Bn, only UGX.164.49Bn was
warranted, resulting in a shortfall of UGX.2Bn. Further, the entity
failed to utilise UGX.48Mn.
ix) I assessed the extent of implementation of three (3) outputs with
14 activities worth UGX.37.57Bn and noted that two (2) outputs
with 7 activities worth UGX.29.748Bn were fully implemented while
one (1) output with seven (7) activities worth UGX.7.77Bn was
partially implemented.
x) NARO delayed completing implementation of 9 projects worth
UGX.19.27Bn with delays averaging two (2) months from the
expected completion date. Further, one (1) project worth
UGX.307Mn was not functional at the time of writing this report.
xi) Over the last three (3) years, Government has invested
UGX.76.98Bn for the construction, supply and installation of the
laboratory equipment of the Anti-tick vaccine facility. However, the
commercial vaccine production facility has not been completed.
Although the equipment had been delivered, they were yet to be
installed.
xii) Three (03) procurements related to laboratory equipment of the
Anti-tick vaccine facility worth UGX.28.728Bn took almost one year
and a half to be completed.
xiii) I noted delayed contract implementation for two (2) equipment
contracts related to laboratory equipment of the Anti-tick vaccine
facility worth UGX.9.25Bn with delays of over one year.

456
 xiv) I observed that the electrical and other vaccine facility related
equipment, Heating Ventilation and Air Conditioning (HVAC)
equipment, and the generator that had been supplied were being
un-utilised at the facility premises and were yet to be installed.
xv) The construction of the vaccine inoculum seed production
laboratory was complete and equipped. However, field trial results
which were planned to be approved in May 2024, were yet to be
approved by NDA which has delayed the testing of the vaccine on
the market.
xvi) Only UGX.5.88Bn was released to support the activities of the
Competitive Grant Scheme out of the projected UGX.17.02Bn.
Failure to adequately fund core research activities may affect the
timely completion of the research and achievement of the research
objectives.
National Animal Agro-industrialization Unqualified
i) NAGRC & DB had a shortfall of UGX.25.79Bn which negatively
Genetic Resource
affected their implementation and achievement of the expected
Centre and Data
services.
Bank (NAGRC&DB)
ii) I reviewed the records in the PBS system and sampled out six
outputs worth UGX.34.96Bn and noted that out of the six (6)
outputs, only one (1) output worth UGX.0.1Bn was fully quantified,
the balance of the five (5) outputs worth UGX.34.86Bn were not
fully quantified.
iii) The one (1) output that was fully quantified was partially
implemented. Out of the five (5) activities in this output, three (3)
activities were partially implemented while two (2) were not
implemented at all.
iv) Due to the non-quantification of the five (5) outputs within the PBS
system worth UGX.34.86Bn, I relied on the excel work plan to
undertake my assessment on the five (5) outputs. Based on this
assessment five (5) outputs worth UGX.34.86Bn were all partially
implemented.
v) The entity paid arrears amounting to UGX. 9.6Bn that were not
budgeted for using the current year’s budget.
vi) Two mandate activities were not prioritised by the entity in the last

457
 three (3) years these were setting up a National Animal Genetic
Data Bank and development of guidelines for community breeding.
vii) Funds worth UGX.5.63Bn were held in letters of credit as at 30th
June 2024. Out of these, LCs worth UGX.4.78Bn had no movement
of balances from the previous year’s status.
viii) NAGRC &DB irregularly paid UGX.18.3Mn as renewal charges for
Letters of Credit that had expired.
ix) The Gene bank building, the hatchery in Bukedi and Karamoja
regions, managers’ houses in Aswa and Ruhengyere, learning
centre and floating fish feed plant at Kasolwe stock farm were still
incomplete hence delaying service delivery.
x) The entity completed five (05) structures worth UGX.2.95Bn but
these remained non-functional.
xi) Out of the planned procurements worth UGX.50.41Bn for 28
activities, procurements worth UGX.27.1Bn were not undertaken.
xii) Three (3) procurements worth UGX.8.8Bn were undertaken outside
the procurement plan and budget contrary to Regulation 3 of PPDA
Regulations (PDE) 2014.
xiii) Out of a sample of 14 procurements worth UGX.22.4Bn, ten (10)
(71%) procurements worth UGX.18.4Bn took an average of seven
(7) months from the date of initiation to the date of final contract
signing.
xiv) Review of the bid security amounts in the various bid documents
required by NAGRIC & DB revealed inadequate securities and on
one occasion higher security than what was required.
xv) I noted delayed contract implementation for five (5) contracts
worth UGX.11.9Bn with delays ranging from one (1) month to over
a year with some suppliers justifying the extensions while some did
not do so.
xvi) NAGRC & DB had three (3) court cases with individuals involving
land which could lead to possible loss of funds.
xvii) Land measuring approximately 115,665 acres held by the entity did
not have land titles which could result in encroachment, disputes

458
 and loss of public land. Relatedly, five (5) pieces measuring
approximately 43,495.4 hectares had encumbrances in the form of
encroachment by the local population.
xviii) I reviewed the livestock records based on a summarized report of
submissions from several farms and noted that during the year,
374 cattle, 233 goats and 345 pigs estimated at UGX.0.211Bn were
lost through death.
National Children Human Capital Unqualified
i) While there was a strategy on how the staff of NCA are to be
Authority Development
validated and absorbed within the newly created Special Interest
Group Secretariat at the MoGLSD, the terminal benefits of staff who
will not be absorbed had yet to be computed for onward
submission to the Ministry of Public Service (MoPS) for
consideration.
ii) The contracts of the NCA staff ended on 30th September 2024 and
the validation exercise had not been fully concluded.
iii) The aggregated funding of the councils had reduced thus would
affect the operations of the newly formed Special Interest Group
Secretariat.
iv) The Authority did not implement mandate activities including
Monitoring the implementation of laws relating to all forms of child
abuse; Monitoring the progress of all investigations and criminal
proceedings relating to child abuse; Preparation and maintenance
of a national database on children. In addition, in
consultation/liaison with other stakeholders, it did not supervise
and monitor all religious and charitable institutions which provide
childcare services to children; besides not exchange information
with foreign Governments and International organizations, with
respect to detection and prevention of all forms of child abuse.
v) NCA fully implemented Two (2) outputs with two (2) activities
worth UGX.0.365Bn, however I could not assess the
implementation of the other four (4) activities because they were
not supported with distribution sheets and attendance lists.
National Council for Human Capital Unqualified i) The entity had total warrants of UGX.19.735Bn out of which
Higher Education Development warrants worth UGX.14.713Bn had been utilised by the close of the
(NCHE) financial year. The balance of UGX.5Bn that was not utilized was

459
 meant for construction of NCHE building which is yet to
commenced.
ii) The NCHE has delayed publishing and gazette the Higher Education
Qualification Framework (UHEQF) since it was approved in 2016.
iii) I noted that whereas new minimum standards for some courses of
study had been developed, they were not in harmony with the
competence-based training in the lower levels of education.
iv) I noted that Six (6) universities had un-reviewed charters and were
on provisional charters for more than five years contrary to the
provisions in the Universities and other Tertiary Institutions Act,
Cap 26.
National Council for Human Capital Unqualified i) The contracts of the staff affected by RAPEX ended on 30 th
Older Persons Development September 2024, the validation exercise had not been fully
concluded and the terminal benefits of staff who would not be
absorbed had yet to be computed.
ii) The Council did not commission surveys and investigations in
matters or incidents relating to;
a) violation of rights of older persons.
b) non-compliance with policies and programs.
c) Taking appropriate actions in relation to the surveys and
investigation or refer the matter to the relevant authority.
d) holding Annual General Meetings of representatives from
district councils for older persons for the purpose of reviewing
the council's performance and plan for the subsequent year.
e) assisting the Electoral Commission to ensure the conducting of
free and fair elections of representatives of older persons to
the respective local government councils.
iii) 21 outputs with 26 activities worth UGX.2.05Bn were fully
implemented. 3 outputs with 6 activities worth UGX.0.04Bn were
partially implemented.
National Council for Human Capital Unqualified i) The contracts of the staff affected by RAPEX ended on 30th
Persons with Development September 2024, the validation exercise had not been fully
Disabilities concluded and the terminal benefits of staff who would not be
absorbed had yet to be computed.
ii) There was a budget shortfall of UGX.34Mn where the following
activities could not be implemented
engage district council leaders on the NCPD activities
a) ascertain performance of the intervention of Government for

460
 NCDP members
b) Facilitation and coordination of different office activities
iii) 5 outputs with 27 activities worth UGX. 0.86Bn were assessed and
the following were noted;
a) Three (3) outputs with 4 activities and expenditure worth
UGX.0.22Bn were fully implemented.
b) Two (2) outputs with 23 activities worth UGX. 0.64Bn were
partially implemented.
National Council of Human Capital Unqualified i) I noted that the Council recovered only USD 5,000 out of USD
Sports (NCS) Development 44,100 which was paid to Hotel Hill Top and Country Club for
accommodation of athletes and officials during the EAC Games
Kigali, leaving a balance of USD.39,100 (UGX.149.9Mn).
ii) Whereas the National Sports Act Cap 151 established a National
Recognition and Reward Scheme to recognize and award
outstanding and deserving sports personalities who bring honour to
the Country, it has not been operationalized fully.
iii) The deductions amounting to UGX.316.9Mn made from 24 staff
exceeded 50% of the basic pay of UGX.575.1Mn contrary to the
public service standing orders.
iv) UGX.4.873Bn advanced to sports federations was still outstanding.
v) The Council had an approved budget of UGX.223.9Bn out of which
UGX.223.5Bn was warranted resulting in a shortfall of UGX.0.375Bn
representing a 99.8% performance. The unwarranted funds were
meant for Modification and construction works for Kakyeka
stadium.
vi) Out of the total warrants of UGX.223.5Bn, a sum of UGX.217Bn had
been utilized by the close of the financial year, leaving a balance of
UGX.6.5Bn meant for subscription to international bodies, social
security contributions, support to national sports
federations/associations.
vii) Two (2) outputs with 5 activities and expenditure worth
UGX.65.6Bn were fully implemented.
viii) Two (2) outputs with 3 activities worth UGX.153.1Bn were partially
implemented. Out of the 3 activities, two (2) activities worth
UGX.152Bn were partially implemented, while one (1) activity worth
UGX.1.1Bn remained unimplemented. The partially implemented
activity is Hoima city stadium construction, while Kakyeka Stadium
Redevelopment remained unimplemented due to due to the

461
 delayed creation of a project code, delayed completion of project
environment impact assessment.
ix) Entity received supplementary funding of UGX.23Bn, which was not
requisitioned for.
National Curriculum Human Capital Unqualified i) NCDC had long outstanding receivables of UGX 0.39Bn as at 30th
Development Centre Development June 2024.
(NCDC) ii) There was understaffing of key positions in the areas of Curriculum
Review and Instructional Materials Development and Planning.
iii) Out of 19 development processes for the Higher Secondary
Curriculum only (32%) had been completed leaving 13 (68%)
outstanding.
iv) Despite the plan by NCDC to train 130,055 secondary school
teachers, only 81,495 (63%) were trained over a period of 5 years
resulting into a shortfall of 48,560 (37%).
v) The entity had an approved budget of UGX.23.30Bn out of which
UGX 21.76Bn was warranted resulting in a shortfall of UGX 1.53Bn
representing a 93% performance.
vi) Fourteen (14) outputs with 59 activities worth UGX 11.46 Bn were
partially implemented. Out of 59 activities, the entity fully
implemented thirty (30) activities, ten (10) activities were partially
implemented, sixteen (16) activities remained unimplemented while
three (3) activities were not quantified to enable performance
evaluation.
vii) I noted that out of the budgeted NTR of UGX 0.11Bn, the entity
only collected NTR of UGX 0.047Bn leaving a balance of UGX
0.063Bn (57%) uncollected.
Mount Elgon Natural Resources, Unqualified i) The project was not included in the Public Investment Plan, as
Ecosystem in Environment, Climate required by the Budget Execution Circular issued by the PSST
Eastern Uganda Change, Land, and ii) All the expected total disbursement of USD.126,000 was disbursed.
Project for the 3 Water Of this amount, only USD.47,570 (38%) was spent, resulting in
Month Period from unspent balance of USD.78,430, which was held in the project bank
1st Oct to 31st Dec account in Bank of Uganda
2022 iii) I assessed implementation of five (5) project outputs and noted
that One (1) was fully implemented; two (2) partially implemented,
while the remaining two (2) were not implemented

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Institutional Natural Resources, Unqualified i) Out of the expected cumulative donor disbursement of USD
Capacity Environment, Climate 2,140,374, only USD 854,237 (40%) was received
Strengthening for Change, Land, and ii) Out of the approved donor budget of USD 1,298,519, USD 581,752
Implementation of Water was available for spending, representing a 45% performance.
the Nagoya Protocol iii) Out of the fifty-one (51) activities worth USD 393,455 that were
on Access to Genetic assessed, only one activity was fully implemented, thirty-nine
Resources and activities were partially implemented, while eleven were not
Benefit Sharing in implemented
Uganda (ABS) iv) Three activities worth USD 54,430 were not implemented on time.
(NEMA) for period
ended 31st Dec 2023
Global Biodiversity Natural Resources, Unqualified i) Out of the expected cumulative donor disbursement of USD 254,115,
Framework-Early Environment, Climate only USD 220,000 was received, representing 86% performance
Action Support Change, Land, and ii) Out of the total available funds of USD 220,000, only USD 63,457
Project (NBSAPS), Water (29%) was spent, resulting in unspent balance of USD 156,543
Project (NEMA) for iii) Out of the seven (7) planned activities, five (5) were fully
period ended 31st implemented, one (1) partially implemented and one (1) not
Dec 2023 implemented.
National Natural Resources, Unqualified i) Out of the expected cumulative donor disbursement of USD 279,000,
Implementation Environment, Climate only USD 130,000 was received, representing 47% performance
Plans (NIPS) under Change, Land, and ii) Out of the total available funds of USD 130,000 only USD 15,941
the Stockholm Water (12%) was spent, resulting in unspent balance of USD 114,059
Convention on iii) Two (2) activities were partially implemented, implying that the
Persistent Organic planned service delivery was not fully achieved
Pollutants Project
(NEMA) for the year
ended Dec 2023
Strategy and Action Natural Resources, Unqualified i) Out of the expected cumulative donor disbursement of USD 79,989,
Plan Development Environment, Climate only USD 60,000 was received, representing 75% performance
for Minimization and Change, Land, and ii) The disbursed funds of USD 60,000 was not spent in the year under
Proper Management Water review, implying all planned activities were not implemented
of Single Use
Plastics and
Associated Plastic
Waste in the
Environment in
Uganda (PWP
Project in NEMA) for

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the year ended 31st
Dec 2023

Mount Elgon Natural Resources, Unqualified i) In the year under review, the Project had an approved budget of
Ecosystem in Environment, Climate USD.1,429,822, out of which USD.1,278,635 was received, leading to
Eastern Uganda Change, Land, and a shortfall of USD.151,187.
Project for the 3 Water ii) Added to the unspent balance of USD.78,430, the total available
Month period 1st Jan funds for spending was USD.1,357,065.
2023 to 31st Dec iii) Only USD.142,080 was spent, resulting in unspent balance of
2023 USD.1,214,985 (90%). The unspent funds were still held on the
project bank account number in Bank of Uganda.
iv) The project had not recieved co-financing from Government since
inception
National Enterprises Governance and Unqualified i) The Corporation’s payables increased from UGX.1.74Bn in the FY
Corporation (NEC) - Security 2022/2023 to UGX.1.96Bn as at 30th June, 2024. Increase in payables
Headquarters could be an indication that the Corporation is not able to easily meet
its obligations when they fall due.
National Enterprises Governance and Unqualified i) The Company had outstanding trade debtors worth UGX.20.37Bn by
Corporation (NEC) - Security the close of the financial year. Continued accumulation of debtors ties
Construction Works up the Company’s working capital and may affect the operations of
and Engineering Ltd the company.
ii) NEC Works extended a loan advance to NEC Uzima worth UGX.1.47bn
out of which UGX.280Mn was paid at the end of the financial year
leaving an outstanding balance of UGX.1.19Bn. However, by the end
of the financial year, these funds had not been refunded.
iii) The Company had an operating margin of 4.4% below the 50%
threshold which implies that the company is likely to face challenges
of paying off its operating costs in future if this trend is not reversed.
iv) The Company made profits of UGX.5.46Bn after tax in the year under
review which was an increase from profits of UGX.4.89Bn realized in
the previous year representing a rise in profits of 11.7%
v) The Company posted a return on assets of 5.5% which was above the
generally acceptable safety threshold. This implies that the company
used its assets in an efficient manner.
vi) The Company had a current ratio of 1.2 for the year under review
which was below the desirable ratio of 1.5 implying that the Company
has limited ability to meet its short-term obligations without raising

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 external capital.
vii) The company had a debt ratio of 79% as at the end of the financial
year under review implying that majority of the company’s assets are
financed by debt
viii) I assessed the implementation of seven (7) outputs with 16 activities
and found that all activities were partially implemented.
ix) I reviewed 12 construction projects worth UGX.248.016Bn
implemented in the last three (3) years and noted that nine (9)
projects worth UGX.160.18Bn were on-going and One (1) Project
worth UGX.62.98Bn had not started.
National Enterprises Governance and Unqualified i) The Company had payables totalling UGX.99.6Mn as at 30th June
Corporation (NEC) Security 2024.
Security Services ii) The Company did not have an approved staff structure and
establishment as at the end of the financial year, which exposes the
company to the risk of over or under recruitment.
iii) The Company lacked an IT risk management framework/policy which
is a weakness within the Company’s IT controls.
iv) The Company made a loss of UGX.1.31Bn in the year under review
because the Company had just commenced commercial operations.
v) The company had a Return on Assets of -104% meaning that it is
not efficiently utilizing its assets.
vi) The Company had a current ratio of 2, which is considered healthy.
This means that the NSSL can meet its short-term cash requirements
easily.
vii) The Company had a zero-debt ratio for the financial year under
review since it has not accumulated any long-term debts.
National Enterprises Agro-Industrialization Unqualified i) NEC AGRO SMC LTD’s receivables increased from UGX.15.1Bn in
Corporation (NEC) the previous year to UGX.23.6Bn in the year under review
AGRO representing an increase of 56%.
ii) The company’s annual work plan and budget were not aligned
since the work plan was not quantified and appropriately costed. As
such, it was impossible to assess the performance of the company
in executing its budget and work plan.
iii) NEC AGRO SMC LTD had not yet completed civil works and test
running of the Grain Storage and Supply facility at Kigumba.
iv) The Company collected UGX.99Bn out of the budget of UGX.60.9Bn
representing a performance of 163%.
v) NEC AGRO SMC LTD had an operating margin of 6.2%, which is

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 below the 15% recommended threshold for the year under review.
vi) NEC AGRO SMC LTD made profits of UGX.4.34Bn after tax in the
year under review which was an increment from the profits of
UGX.3.69Bn realized in the previous year representing a rise in
profits of 17.7%
vii) For the year under review, the Company posted a Return on Assets
(ROA) of 11.5% down from 13.7% posted in the previous year,
representing a reduction in ROA of 16%.
viii) The company had a current ratio of 5.4 for the year under review,
which was above the desirable ratio of between 1.5 and 2.
ix) The Company had a debt ratio of 13.6% as at the end of the
financial year under review in comparison with the previous year’s
debt ratio of 27% indicating a significant improvement in the
Company’s financial health.
National Enterprises Agro-Industrialization Unqualified i) Out of the total projected inflow of UGX.5.4Bn, NEC Farm Katonga
Corporation (NEC) realized UGX.2.8Bn (52%).
Farm - Katonga ii) There was no alignment between the company’s annual work plan
and budget since the work plan was not quantified and
appropriately costed.
iii) NEC Katonga did not meet its quarterly production and sales
targets during the year which affected profitability.
iv) NEC Farm Katonga Ltd had an operating margin of 34.4%, which is
above the 15% recommended threshold implying that the company
was efficient in managing its costs.
v) NEC Farm Katonga reported a loss of UGX.1.9Bn after tax. This was
an increase from the loss made in the prior year of UGX.0.071Bn
representing an increase in losses of UGX.1.8Bn.
vi) For the year under review NEC Farm Katonga posted a return on
assets of -21.0% representing a decrease of 30.5% from a return
on assets of -0.6% from the previous year.
vii) NEC Farm Katonga had a current ratio of 143:1 representing an
increase of 267% from a current ratio of 39:1
viii) NEC Farm Katonga had a debt ratio of 0.21% as at the end of the
financial year in comparison with the previous year of 1.11%. This
is an indicator that the company is managing its debt prudently.
National Enterprises Governance and Unqualified i) A review of the receivables revealed an increase from UGX.0.44Bn
Corporation (NEC) Security to UGX.4.66Bn representing a 948% increase.
Uzima Limited ii) Analysis of the payables revealed an increase of UGX.2.65Bn from

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 UGX.1.9Bn in the previous year representing a 140% increase.
iii) NEC UZIMA LTD projected to earn UGX.9.68Bn during the year
however, it realized UGX.9.72Bn representing 100.3% performance
iv) There is no alignment between the company’s annual work plan
and budget since the work plan is not quantified and appropriately
costed.
v) I assessed the extent of implementation of planned activities for
which funds were availed and noted that all of them were partially
implemented.
vi) NEC UZIMA LTD had an operating margin of 8.1%, which is below
the 15% recommended threshold which means that the company is
likely to face challenges of paying off its operating costs in future.
vii) NEC UZIMA Ltd reported a profit of UGX.0.52Bn after tax from
UGX.0.16Bn realized in the previous year. Further, NEC UZIMA had
positive retained earnings/revenue reserves of UGX.0.79.
viii) Return on assets for NEC UZIMA increased to 2.8% from 1.4%
recorded in the previous year, which was still low compared to the
industrial average of 5%.
ix) The company had a current ratio of 1.8 for the year, which is
desirable.
x) The company had a debt ratio of 24.3% at the end of the financial
year, which implies that the Company has ability to manage its
debt.
National Enterprise Governance and Unqualified i) The Corporation had an operating margin of 40.1% compared to
Corporation (NEC) Security 49.4% performance of the FY 2022/2023. This is an indication that
Luwero Industries the Company managed its operating costs better in the previous
Ltd year.
ii) The Company made profits of UGX.10.65Bn after tax in the year
under review up from profits of UGX.8.05Bn realized in the previous
year representing a rise in profits of 32.3%.
iii) The Company’s return on assets was 13.2%, a reduction from the
Return on Assets (ROA) of 14.9% that was posted in the previous
year. This indicates that the company used its assets better in the
previous year than the current year.
iv) The Company had a current ratio of 1.8 for the year under review
which is within the desirable range, the posted ratio fell by 92%
from a ratio of 23.2 realized in the previous year. This implies that
the Company was in better position to meet its short-term

467
 obligations.
v) The company had a debt ratio of 18.1% as at the end of the
financial year under review implying that most of the company’s
assets are financed by other sources other than debt.
vi) I assessed the extent of implementation of activities for which
funds were availed and utilized. Out of 14 activities worth
UGX.7.001Bn assessed, eight (8) activities were fully implemented
while six (6) activities were partially implemented.
vii) The Company had an approved budget of UGX.10.27Bn out of
which UGX.7.54Bn was provided resulting in a shortfall of
UGX.2.73Bn representing a 73.4% performance.
National Forestry Natural resources, Unqualified i) The Authority had outstanding Receivables of UGX.6.61Bn, of which
Authority (NFA) environment, climate some of the debtors date back to 2010. Only 0.3% had been
change, land and recovered in the FY.
water ii) The Central Forest Reserves (CFRs) had been encroached upon,
with 609 illegal titles issued for these reserves due to inadequate
demarcation and inadequate budget provisions for adverts and
cancellation.
iii) The Authority did not implementation Board of Survey 2022/23
recommendations.
iv) The Authority spent UGX 100Mn in respect of fines and penalties
during the year under review. The court cases could have been
avoided if the Authority had performed its duties with due care.
v) The Authority had 95 outstanding court cases with individuals and
companies from the period 2002 up to 30th June, 2024
vi) A comparison of the entity’s strategic and annual work plans for the
last three (3) years in line with its mandate revealed that five (5) of
the activities were neither budgeted nor prioritised.
vii) The Authority had an approved budget of UGX.24.99Bn out of
which UGX.20.18Bn (81%) was warranted hence a shortfall of
UGX.4.8Bn which resulted into un-implemented activities and under
service delivery.
viii) The extent of implementation of activities from a sample of five (5)
outputs for which funds were availed and utilised indicated that
One (1) output with Seven (7) activities and expenditure worth
UGX.12.05Bn was fully implemented while Four (4) outputs with
forty (40) activities worth UGX. 6.76Bn were partially
implemented.

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National Housing Sustainable Unqualified i) The Company had approved budgeted revenue amounting to
Construction Urbanisation & UGX.108.51Bn out of which only UGX.48.0Bn (44%) was realized,
Company Limited Housing resulting into shortfall of UGX 60,513,347,531 (56%). This affected
(NHCCL) the completion of planned activities.
ii) Out of the Company collections of UGX 48.0Bn, only UGX.33.33Bn
(69%) was expended, leaving a balance of UGX 14.67Bn (31%)
which was not absorbed.
iii) The Company reported a fall in Profit after Tax from UGX. 34.59Bn
in FY 22/23 to UGX. 3.28Bn in FY 23/24. This implies that the
company is not performing well and may struggle to meet its
current and long-term obligations.
iv) The Company reported a fall in Return on Assets from 6.30% in FY
22/23 to 0.60% in FY 23/24. This implies a decline in the
management’s efficiency in using the enterprise’s assets to
generate earnings.
v) I noted that NHCCL interest cover increased from 2.7 in FY 22/23
to 3.07 in FY 23/24 representing an increase of 14%. The
implication is that the company is most likely to meet its interest
payments.
vi) I noted that the Company registered debt to equity ratios of 0.04
and 0.03 in the FY’s 22/23 and 23/24 respectively. This implies that
the ratio is low, and the company may not get leverage of tax from
the profits generated.
vii) Review of progress reports indicated that construction works on the
proposed National Building Research and Quality Assurance Centre-
Phase One costing UGX.11.94Bn inclusive of (18%) VAT was halted
on 12th June 2023 without adequate justification.
viii) The construction of EC headquarters by NHCCL as the main
developer in partnership with China Communication Construction
Company Limited has stagnated and this may affect credibility of
the Company.
National Bureau for National Bureau Unqualified i) I noted that although the NGO Bureau had arrears totalling to
NGOs UGX.1.688Bn at the end of the previous financial year, 2022/2023,
this amount was not planned or budgeted for in the entity’s budget
for the year under review.
ii) The NGO Bureau incurred additional domestic arrears of
UGX.1.501Bn, which are still under verification by the internal audit
following the rationalisation.

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 iii) Some staff of the Bureau were still uncertain of their fate following
the merger of the Bureau, the severance packages, including the
financial compensation, are yet to be agreed upon and budgeted for.
Arrangements for handover of assets to the Ministry of Internal
Affairs are yet to be concluded following the rationalisation.
iv) The entity had unwarranted funds of UGX.0.35Bn which affected
payments for employee costs (NSSF), taxes, and rent.
v) Four (4) activities worth UGX.267Mn were partially implemented
while three (3) activities were not implemented at all despite the
release of funds.
vi) About 60% of the Bureau’s expenditure relates to rent, salaries,
gratuity, and other operating expenses that do not directly relate to
the Bureau’s core activities of registration and monitoring of NGO’s
activities.
vii) The Bureau is yet to develop and maintain an online and fully
accessible database of all NGOs in Uganda and has not set up
regional branch offices upcountry to oversee District NGO Monitoring
Committees.
National Governance and Unqualified i) No alien has been registered and issued an Identification card over
Identification and security the years.
Registration ii) NIRA operates a register without input from other government
Authority (NIRA) institutions, even when they collect information required to register
or update individual details. For instance, the register is not
updated with information collected by National Citizenship and
Immigration Control (NCIC) when registering nationals for
passports and Uganda Police for those applying for certificates of
good conduct.
iii) NIRA’s birth registration rate has declined for the last two (2)
years. I further observed that only 35% of the births registered in
2023/24 were issued with certificates.
iv) NIRA had a total revised budget of UGX.359.74Bn, out of which
UGX.321.78Bn was warranted, resulting in a shortfall of
UGX.37.95Bn, representing 89% performance.
v) NIRA had a total of 12 outputs with 115 activities worth
UGX.321.7Bn that were assessed, of which three (3) outputs with
21 activities and expenditure worth UGX.5.9Bn were fully
implemented, while Nine (9) outputs with 94 activities worth
UGX.315Bn were partially implemented.

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 vi) I noted that two bidders failed to submit a manufacturer’s
authorisation certificate along with their bids.
vii) The licence for the database of the central system expired on 28 th
June 2024, and the licence for the Third-Party Interface expired on
20th March 2024. Their license procurement process remained at
the evaluation stage and was never concluded.
viii) There were delays in funding the planned activities of the mass
enrolment exercise.
ix) NIRA budgeted to receive UGX.600.17Bn for implementing mass
enrolment and ID renewal activities over the two financial years
2022/23 and 2023/24. However, I noted that no funds were
warranted in 2022/23, while only UGX.262.05Bn was warranted in
2023/24, resulting in a shortfall of UGX.338.12Bn, which is 61% of
the budget.
x) Out of the total receipts for the financial year of UGX.262.05billion,
only UGX.38.06billion was spent by the entity on mass enrolment
and ID renewal activities. The rest of the funds remained on the LC
deposit account with Bank of Uganda, and some funds were
transferred to the UNICEF bank account.
xi) Out of the 11,595 applicants who had passed the interviews and
were on the final shortlist for implementing the mass renewal
exercise, only 25 staff had been issued appointment letters by the
time of the audit in October 2024.
xii) NIRA planned to register citizens in the diaspora; however, there
was no budget allocated to this activity, and there were no
implementation work plans for registering citizens in the diaspora.
xiii) The asset register for the period under review had 85 IT systems
and hardware equipment which exceeded the recommended five-
year useful life and, therefore, were due for disposal.
xiv) Out of 11 recommendations given by Parliament on the Report of
the Public Accounts Committee on Commissions, Statutory
Authorities and State Enterprises for the financial year 2020/21;
two (2) recommendations were fully implemented, seven (7) were
partially implemented, while two (2) were not implemented at all.

National Digital Unqualified i) Mandate activities in the strategic and annual work plans were not
Information transformation budgeted for due to a lack of resources resulting in limitations in
Technologies achieving desired goals.

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Authority (NITA-U) ii) The entity had an approved budget of UGX.49.55Bn of which
UGX.47.28Bn (95%) was warranted resulting in a shortfall of
UGX.2.27Bn.
iii) The entity had total warrants of UGX.47.28Bn out of which
warrants worth UGX.45.72Bn had been utilised by the close of the
financial year.
iv) The Authority had an opening balance of Domestic areas of UGX.
40.196Bn which were not budgeted for and incurred additional UGX
37.13Bn (92% increase), resulting in accumulated domestic arrears
of UGX.77.32Bn.
v) A review of bandwidth consumption during the period under review
revealed that 366 sites with signed MoUs and SLAs and without
signed acceptance were allocated more bandwidth than the signed
capacity. In addition, the signed capacity is what is billed. This
implies that the over-delivered bandwidth of 5,781 Mbps, is valued
at UGX.9.864Bn was not billed.
vi) Out of the 719.47 Kilometres of dark fibre rolled out in the country,
only 15% (108.67 Kilometres) of dark fibre service was provided to
6 MDAs compared to the 85% (610.8 kilometres) provided to 7
private customers.
vii) My review of the sampled applications by MDAs and LGs for
accessing the NBI/EGI or upgrading their internet bandwidth
revealed that 9 entities were not connected.
National Library of Human Capital Unqualified i) National Library of Uganda (NLU) is to be mainstreamed under
Uganda (NLU) Development MoES.
ii) The NLU did not adequately execute the following mandates;
(a) Carry our research in the field of library and information provision
and disseminate results to the Government and public.
(b) To design and carry out pilot projects in new areas of library and
information provision and disseminate results to local governments
and other organizations.
(c) To carry and co-ordinate staff development programs for people
working in libraries and information service.
(d) To support and promote adult literacy and education through
identification and shocking posts-literacy reading materials.
iii) To promote the habit and culture of reading through reading
campaigns and book exhibitions. The Library had an approved
budget of UGX.1.13Bn for the year under review of which 0.97Bn

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 was released and utilized resulting in a shortfall of of UGX. 0.16Bn
(14This affected the completion of planned activities.
iv) Out of the sixteen (16) outputs with forty-two (42) activities worth
UGX.0.95Bn assessed, 10 outputs with 18 activities worth
UGX.0.66Bn were fully implemented while 6outputs with 24
activities worth UGX.0.29Bn were partially implemented.
National Oil Palm Agro-Industrialization Unqualified i) Out of 5,892.98 hectares of land held by the private investor (Oil
Project (NOPP) Palm Buvuma Limited), only 2,327.7 hectares had been planted
with the nucleus estate of oil palm plantations while the remaining
2,277 hectares were pending valuation and compensation of
tenants.
ii) The Project Steering Committee held only one meeting in the first
quarter of the financial year out of the minimum required number
of two meetings.
iii) Out of the expected total disbursement of UGX.206Bn, a sum of
UGX.117Bn had been disbursed. This affected implementation of
activities.
iv) Out of the total cumulative disbursement of UGX.117.88Bn,
UGX.105.65Bn was absorbed as at 30th June 2024. The balance of
UGX.12.23Bn was held on the project bank account in Bank of
Uganda.
v) I sampled 12 activities worth UGX.59.26Bn (50% of disbursed) and
noted that targets for two (2) activities worth UGX.14.16Bn had
been fully achieved while targets for the remaining 10 activities
worth UGX.45.10Bn were all partially implemented/achieved.
vi) I assessed whether the project activities were undertaken in a
timely manner and noted 3 implemented activities worth
UGX.4.4Bn with delays in service delivery.
vii) Out of a sample of eight (8) procurements worth UGX.31.3Bn, I
noted delays in four (4) procurements worth UGX.11.1Bn taking on
average five (5) months from the planned date of contract signing
to the actual date of contract signing.
National Oil Seed Agro-Industrialization Unqualified i) The Project Coordination Unit (PCU) did not prepare consolidated
Project (NOSP) financial statements as required by the Project Design Report.
Component 1 IFAD ii) I compared the total cumulative disbursements of donor funds as
Loan No. at 30th June, 2024 against the project financing agreement and
200000328100 noted that out of the expected total disbursement of
(NOSP-MAAIF) UGX.148.92Bn, a sum of UGX.32.8Bn (22%) was disbursed.

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 iii) Out of the total disbursed funds of UGX.32.8Bn, the project had
absorbed UGX. 20.33Bn by the end of the financial year under
audit. The balance of UGX.12.51Bn was held on the project bank
account in Bank of Uganda.
iv) I sampled 17 activities worth UGX.12.05Bn and noted that targets
for one (1) activity worth UGX.1.87Bn had been fully achieved,
while targets for the remaining 16 activities worth UGX.10.18Bn
were yet to be achieved.
v) The project embarked on the procurement of private service
providers to provide extension services at a cost of UGX.47.5Bn to
work with National Agricultural Research Organisation (NARO) and
Makerere University (MUK) to ensure that farmers have access to
certified seed however, the procurement was cancelled by the
Public Procurement and Disposal of Public Assets Authority (PPDA).
This has affected the progress of the project.
vi) Only soya beans were delivered in seasons 2023B & 2024A to
demonstration/multiplication gardens and local seed business
groups. The sunflower, groundnuts and sesame were not delivered
at all despite the project disbursing UGX.0.18Bn for the purpose.
vii) All funds meant for project support towards the research related
production and productivity for the various varieties of sunflower,
soya bean, sesame and groundnuts were disbursed late in the two
seasons.
viii) Delivery of inputs to the final beneficiary took 30 to 60 days, which
was longer than the expected 30 days before planting date or date
of application.
ix) I noted that there were few Local Seed Businesses that have
continued to produce and market seed in each season.
x) Farmers were not sensitized on climate smart agriculture
technologies such as the use of tolerant and resistant varieties,
timely planting, use of clean planting materials and Irrigation
systems.
xi) There were no follow-ups on disease and pests attack like
webworm on soya been, which affected productivity.
xii) The project failed to execute planned procurements worth
UGX.11.3Bn.

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National Physical Sustainable Unqualified i) The Board did not adequately execute six (6) out of the twelve (12)
Planning Board Urbanisation & mandated activities like advising the government on broad physical
(NPPB) Housing planning policies, planning standards and the viability of any
proposed subdivision of urban or agricultural land and ensuring
integration of physical planning with social and economic planning
at the national and local levels.
ii) Out of the approved budget of UGX.2.88Bn for the year, only
UGX.2.72Bn (94%) was received by the Board resulting into a short
fall of UGX.0.16Bn (6%). This affected field monitoring visits,
visiting locus on complaints and appeals lodged by Local
Governments and General Public.
iii) Out of 15 activities assessed, 13 were fully implemented while 2
activities were partially implemented but not properly costed.
National Planning Agro-industrialization Unqualified i) The dissemination of the Project Preparation Facility (PPF)
Authority Development plan Governance and operational manual to the recipients of funds from
implementation the PPF has not been done.
Human capital ii) Out of 13 projects, 12 projects that have finalized feasibility studies
development Mineral have not been prioritized for implementation due to funding
development Natural challenges.
resources, iii) I noted that with just one year left to the expiry of the NDP-III,
environment, climate regional development plans (Teso, Bunyoro, Luwero, Busoga) have
change, land and not been developed and operationalized.
water Private sector iv) Implementation of a total of 24 reforms across 12 programmes was
development Public yet to start with just a year to the expiry of the NDP III.
sector transformation v) Thirteen (13) MDAs were warranted UGX.18.92Bn on programmes
Regional balanced which were not directly related to their mandate activities during
development the year under review.
vi) I undertook a review of the extent to which my recommendations
on programmatic approach were implemented and noted that none
of them was fully implemented despite one year to the conclusion
of NDP-III.
vii) The Authority had a revised budget of UGX.49.80Bn of which all
was warranted and spent.
viii) I assessed a total of 24 outputs with 48 activities worth
UGX.28.027Bn and noted that 13 Outputs with 47 activities worth
UGX.27.85Bn were fully implemented while one (01) output with
one (01) activity worth UGX.0.18Bn was partially implemented.
National Pipeline Sustainable Unqualified There were no reportable issues

475
Company Development of
Petroleum Resources
National Social Private Sector Unqualified i) Prior year’s comparative information was restated to improve the
Security Fund Development understandability of the Fund’s financial statements.
(NSSF) ii) NSSF suspense account still had a balance of UGX.49Bn, compared
to UGX.58Bn reported in the previous year, implying a reduction of
unallocated contributions by 15%.
iii) Land titles in the Nsimbe Estate plot (183.220 Hectares) and plot 3
Block 115 Mawokota (157.9701 hectares) had encumbrances, in
form of caveats by purported purchasers. The same was noted in
the Temangalo properties (Plot 12, Busiro Block 296 measuring
68.8 hectares, Plot 16, Busiro Block 296 measuring 8.78 hectares,
Plot 20, Busiro Block 296 measuring 46.36 hectares, Plot 21, Busiro
Block 296 measuring 24.2800 hectares).
iv) Plots in Lubowa Kyadondo County Wakiso District, Bukerere
Kyaggwe County Mukono District, Mbarara Municipality, Kawoko
and Kigoma were occupied by squatters/ encroachers.
v) There were discrepancies on plot sizes between the documented
title measurements as per the land titles and the actual on-ground
measurements. For example, Plot 483 at Papati, measures 11.055
acres on title, while on ground it measures about 10.397 acres; Plot
109 at Kalagala measures 9.195 acres on title, while on ground it
measures 8.796 acres; and Plot 8 Masaka Close Mbarara City
Mbarara District on ground is about 0.122 hectares (0.301 acres)
contrary to the area on the title search of 0.185 hectares (0.457
acres).

Deposit Protection Human Capital Unqualified There were no reportable issues

Fund Development

National Water and Natural Resources, Unqualified i) NWSC had a receivables figure of UGX.355Bn. Included in the
Sewerage Environment, Climate figure are outstanding receivables of UGX.111.2Bn from related
Cooperation Change, Water and parties (MDAs), of which UGX.72.5Bn had been outstanding for
Land Management more than 2 years.
National Women Human Capital Unqualified i) The contracts of the staff affected by RAPEX ended on 30th
Council Development September 2024, the validation exercise had not been fully
concluded and the terminal benefits of staff who would not be
absorbed had yet to be computed.

476
 ii) Out of the approved budget of UGX. 7.000Bn for the year under
review, UGX.6.692Bn (96%) was released resulting in a shortfall of
UGX.0.308Bn affecting purchase of Motor Vehicle for Chairperson
of Council, Monitoring of Women Council Activities at the district
level and Support of the administrative Council work.
iii) Seven (7) outputs with nineteen (19) activities worth UGX.3.3Bn
were assessed and were fully implemented.
National Youth Human Capital Unqualified i) The contracts of the NYC staff ended on 30th September 2024 and
Council (NYC) Development the validation exercise had not been fully concluded.
ii) The aggregated funding of the councils had reduced thus would
affect the operations of the newly formed Special Interest Group
Secretariat.
iii) NYC had outstanding domestic arrears of UGX3.4Bn disclosed in
statement of financial position on page 19, comprised of gratuity
arrears to staff of UGX.1.09Bn, NSSF Contributions of UGX.2.27Bn
and URA Taxes of UG. 0.078Bn.
iv) I assessed a total of thirty-four (34) worth UGX.2.87Bn and sixteen
(16) activities worth UGX.1.27Bn were fully implemented, nine (9)
activities worth UGX.1.07Bn were partially implemented while nine
(9) activities worth UGX.0.53Bn was not implemented at all.
New Vision Printing Public Sector Unqualified i) The Company had an impairment loss on intangible assets
and Publishing Transformation amounting to UGX.1Bn.
Company Limited for ii) The company had an allowance for Expected Credit Losses (ECL)
year ended 30th June on financial assets at amortized cost of UGX.4.9Bn. However, I
2024 noted that the assumptions used by management in the ECL
model, particularly the collection period, did not reflect the actual
collection trends.
Nile Hotel Private Sector Unqualified i) Nile Hotel International Ltd achieved an operating margin of 54%
International Development compared to 30% in the previous financial year. The performance
Limited (NHIL) attained was attributed to a reduction in expenses by 30% (from
UGX1.984Bn to UGX1.435Bn) and increased gross income by 9%
(from UGX2.841bn to UGX3.092bn).
ii) Nile Hotel International made a surplus of UGX 1.029Bn, after tax
in the year under review up from a surplus of UGX 0.927Bn realized
in the previous year, showing increased profitability.

477
MUST - Nursing First Human Capital Unqualified There were no reportable issues
Miles Project for the Development
period 1st Jan 2023
to 31st Dec 2023
Office of the Director Governance and Unqualified i) The ODPP had an approved budget of UGX.92.467Bn, out of which
of Public Security UGX.83.826Bn (91%) was warranted, resulting in a shortfall of
Prosecutions (ODPP) UGX.8.640Bn. As a result, 13 activities were either not funded or
partially funded.
ii) The ODPP had total warrants of UGX.83.83Bn, out of which
warrants worth UGX.80.47Bn had been utilised by the close of the
financial year. The balance of UGX.3.36Bn was meant for the
payment of general staff salaries, construction and improvement of
residential and non-residential buildings, and payment of gratuity
and pension.
iii) 10 outputs with 106 activities worth UGX.23.83Bn were partially
implemented. For example, the ODPP handled fewer cases than
initially planned. Consequently, fewer cases were sanctioned,
prosecuted, and committed to the High Court despite the entity
receiving sufficient funding to carry out the planned activities.
iv) The mid-term review of the Strategic Plan was not conducted. The
activity had not been prioritized in the budgets for 2023/24 and
2024/25.
v) I reviewed the annual casework performance report for the FY
2023/2024 and noted that the ODPP did not meet any of the
annual targets for the different cases that were examined.
vi) The ODPP is expected to roll out PROCAMIS from the existing 30
stations to an additional 69 stations, according to the third
Strategic Plan. I noted that as at 30th June 2024, only 45 stations
(including the headquarters) were rolled on PROCAMIS. This
implies that PROCAMIS had been rolled out to only 14 of the
planned 39 additional stations/offices during the three financial
years.
vii) Integrated Software Specialists (the company charged with
maintaining PROCAMIS) presented a cloud backup solution to the
ODPP management to mitigate disaster recovery concerns.
However, no progress has been made in implementing the
recommendation.
viii) Whereas the Asset Recovery Module was part of the contract for

478
 the setup of PROCAMIS, it has not yet been fully implemented and,
therefore, was not in use.
ix) A review of the PROCAMIS maintenance and support performance
report revealed data mapping issues between the key JLOS
institutions, including the Police, Judiciary and Prisons. For
instance, PROCAMIS cannot seamlessly interface with the ECCMIS
system of the Judiciary, Crime Management Systems of the Uganda
Police and Prisons Management System. In the case of the ECCMIS
system, the interface created by the consultant to enable this
integration was incompatible with PROCAMIS.
x) A review of payroll management in the ODPP revealed that in June
2024, the processing of general staff salaries was migrated from
the IPPS to the HCM. However, 118 staff with a total base salary of
UGX.878Mn had not been migrated to the HCM. Consequently,
salaries for 188 staff were processed on the IPPS instead of the
HCM.
xi) I noted that the ODPP had various directorates and departments
with an approved establishment of 1,482 staff. Of these, 577
positions were filled and 905 were vacant. Key among the vacant
positions was the Deputy Director of Public Prosecutions in charge
of Prosecutions.
xii) I undertook a special audit of the pension payroll that covered a
period from FY 2019/20 to 2023/24 and a separate report was
issued.
xiii) Out of 9 recommendations given by Parliament on three Treasury
Memoranda of central government for the FYs 2014/15, 2015/16
and 2020/21, four (4) recommendations were fully implemented
while five (5) were partially implemented.
Office of the Community Unqualified i) The Office of the President had outstanding domestic arrears to a
President (OP) mobilization and tune of UGX.19.3Bn as at the close of the financial year 2023/2024.
mindset change ii) Out of the total expenditure of UGX.300.463Bn for the FY
Development plan 2023/2024, UGX.43.795Bn relates to classified expenditure which is
implementation audited and reported on separately in compliance with Section 23
Governance and of the Public Finance Management Act, Cap 171
security iii) Out of 752 approved staff positions, 514 (68%) were filled while
238 (32%) were vacant as at 30th June 2024.
iv) The National Leadership Institute (NALI) had 93 civilian employees
who were paid an annual salary of UGX.0.354Bn but lacked

479
 employment contracts.
v) Out of the 48 pieces of land, Office of the President had titled 21
pieces (44%) leaving 27 pieces untitled.
vi) The Office of the President had a budget of UGX.299Bn out of
which UGX.298.9Bn was warranted for both classified
(UGX.43.795Bn) and un-classified expenditure (UGX.255.142Bn).
vii) Out of the UGX.255.142Bn unclassified warrants, UGX.250.041Bn
had been utilized by the entity by the close of the financial year
leaving a balance of UGX.5.101Bn unutilized. The underutilised
warrants mainly related to salaries, pensions and procurement of
vehicles.
viii) Out of the 14 outputs with 120 activities worth UGX.233.3Bn
assessed, 13 outputs with 99 activities worth UGX.211.9Bn had
been fully implemented. One (01) output with 21 activities worth
21.36Bn was partially implemented. Of the 21 activities, Office of
the President fully implemented 19 activities worth UGX.20Bn, one
(01) activity worth UGX.1Bn was partially implemented, while one
(01) activity worth UGX.0.360Bn remained unimplemented.
ix) Out of 18 sampled procurements, six (6) procurements had
procurement delays on average between 15 and 258 days between
initiation and contract signing.
x) Out of the 18 sampled procurements, four (04) procurements were
partially done on e-GP due to challenges in obtaining Solicitor
General’s approval on the system.
xi) I undertook a special audit of the pension payroll and a separate
report was issued.
xii) I conducted an audit of the Treasury Memoranda on the Reports of
the Public Accounts Committee - Central Government for the
Financial Years 2015/2016 and 2020/2021 for the Office of the
President and noted that out of the 13 recommendations issued,
five (5) were fully implemented, and eight (8) were partially
implemented.
OPEC Fund for Human Capital Unqualified i) UGX.57.17Bn (59%) was cumulative disbursements of project
International Development funds as at 30th June 2024 against the project financing agreement
Development Project of UGX.96.71Bn which was less by UGX.39.54 (41%).
of MoES, Phase II ii) Targets for three (3) activities worth UGX. 6.006Bn had been fully
achieved, four (4) activities worth UGX. 47.494Bn had been
partially achieved while one (1) target remaining worth UGX.

480
 4.373Bn was yet to be achieved.
iii) Out of the approved budget of UGX.26.429Bn for the financial year
2023/2024, UGX.14.846Bn was available for spending resulting in a
shortfall of UGX.11.582Bn representing 60.92% performance. As a
result, consultancy services, furniture and fittings acquisition and
non-residential buildings were not implemented.
Parliamentary Legislation, oversight Unqualified i) The Parliamentary Commission had an approved budget of
Commission and representation UGX.945.56Bn, out of which UGX.912.41Bn was warranted,
resulting in a shortfall of UGX.33.14Bn representing a 96%
performance. This affected construction of the new Parliamentary
Chambers and procurement of new vehicles.
ii) The Commission did not utilize warrants worth UGX.4.88Bn which
affected implementation of planned activities.
iii) Two (2) outputs with 23 activities and expenditure worth
UGX.16.23Bn were fully implemented.
iv) Four (4) outputs with 19 activities worth UGX.227.63Bn were
partially implemented. Out of 19 activities, the entity fully
implemented eleven (11) activities worth UGX.222Bn, while eight
(8) activities worth UGX.5.63Bn were partially implemented.
v) One (1) output with one (1) activity worth UGX.1.59Bn was not
implemented at all.
vi) The contract for the construction of the new Parliamentary
Chambers was significantly behind schedule since only 44.4% of
the work had been completed despite most of the contract
timelines (83.5%) having passed. Additionally, the contract
completion date has been revised four (4) times as of December
2024.
vii) I undertook a special audit of the pension payroll that covered a
period from FY 2019/20 to 2023/24 and a separate report was
issued.

Parliamentary Legislation, Oversight Unqualified There were no reportable issues

Pension Scheme and Representation
(PPS)
Petroleum Authority Sustainable Unqualified i) The development of National Petroleum Data Repository
of Uganda (PAU) petroleum Infrastructure Project was at 37% progress due to underfunding,
development leading to lack efficient and effective petroleum data management.
ii) For both Tilenga and KFDA projects, PAU designated 177 wells as

481
 required for the first oil phase by November 2025, however by
November 2024, 94 wells (53%) had been drilled, which risks the
extension of development phase costs into the production phase.
In addition, the progress in the construction of enabling facilities
fell short of planned targets with Tilenga project at 42% vs.
planned progress of 51% and KFDA at 88% vs. planned 91%.
iii) Compensation of PAPs under EACOP was substantially complete
and construction works had commenced. However, Implementation
was at 40% of planned progress (42%) by September 2024, with
delays in pipeline and marine terminal construction.
iv) PAU lacks a consolidated regulatory oversight on the progress and
readiness of supporting infrastructure managed by other
government entities like Kabale International Airport managed by
Ministry of works, the Kabalega Industrial Park by the UNOC and an
electricity substation by UETCL.
v) The authority had an approved budget of UGX.89.55Bn out of
which UGX.66.18Bn (74%) was warranted. The shortfall of
UGX.23.36Bn affected the completion of NPDRI Project,
operationalization of a PAU regional office in Bulisa and
development of Oil spill contingency plan.
Micro and Small Sustainable Unqualified There were no reportable issues
Medium Enterprises petroleum
Business Linkages development
on East African
Crude Oil Pipeline
(Uganda) Project in
Petroleum Authority
of Uganda (PAU)
Pharm Human Capital Unqualified i) There was delay in payment of UGX.173m staff salary and PHD
biotechnology and Development stipend by 4 months.
Traditional Medicine ii) Out of a sample of One hundred thirty-Four (134) activities worth
Centre USD.6,225,000, I noted that targets for sixty-one (61) activities
(PHARMBIOTRAC) worth USD.3,263,177 had been fully achieved while targets for the
ACE II of MUST remaining seventy-three (73) activities worth USD 2,820,781 were
partially achieved or yet to be achieved.
iii) Out of the total available funds of USD1,146,714 only USD 915,704
was spent, resulting in an unspent balance of USD 231,010
representing an absorption level of 79%.

482
Presidential Innovation, Adverse i) The entity did not use the reporting framework approved by the
Initiative on Banana Technology Transfer Accountant General for the preparation of financial statements
Industrial and Development ii) Out of the budgeted NTR of UGX.9Bn, only UGX.1.11Bn was
Development/ collected, representing a performance of 12.4%
Banana Industrial iii) Out of the approved budget of UGX.29Bn, UGX.24.65Bn was
Research and warranted, reflecting a performance of 85%
Development Centre iv) PIBID had a total of UGX.42.66Bn available to spend (including
(PIBID/BIRDC) for unspent funds from the prior year) however, only UGX.21.61Bn
the financial year was utilized, representing 51% absorption level
ended 30th June v) I reviewed the implementation of the only out-put that was fully
2023 quantified and noted that, it was partially implemented. Out of the
27 activities worth 15.5Bn, 14 activities worth 2.39Bn were fully
implemented, while 13 worth 13.11Bn were partially implemented
vi) I noted shortcomings in the management of the entity payroll,
including employment of staff above mandatory retirement age,
staff without contracts and failure to enrol the entity on IPPS/HCM.
vii) The Accounting Officer did not provide all the documents required,
and as such some audit procedures could not be undertaken.
Presidential Innovation, Unqualified i) A trend analysis of the domestic arrears showed a movement in
Initiative on Banana Technology Transfer arrears from UGX.2.64Bn in the previous year to UGX.4.26Bn,
Industrial and Development representing an increase of 62%.
Development/ ii) PIBID has an asset base net worth of UGX.57.88Bn which is yet to
Banana Industrial be valued.
Research and iii) The Company made a net loss of UGX.1.1Bn which continues to
Development Centre stifle the Company’s operations.
(PIBID/BIRDC) for iv) The Company has not fully operationalised the flour mill processing
the financial year plant, delayed implementation of the irrigation system and has
ended 30th June failed to improve farmers’ incomes as expected, which are activities
2024 that are critical in executing its mandate.
v) The entity had an approved budget of UGX.78.109Bn out of which
UGX.37.289Bn was warranted resulting in a shortfall of
UGX.40.82Bn representing a 48% performance and this affected
implementation of the Company’s critical activities.
vi) STI delayed releasing quarterly subvention funds by an average of
88 days and this affected implementation of planned activities.
vii) The Company had total warrants of UGX.37.289Bn out of which
warrants worth UGX.28.549Bn had been utilised by the close of the
financial year. This further affected the implementation of planned

483
 activities.
viii) A total of four (4) outputs with 28 activities worth UGX.13.6Bn
were assessed and I observed that all the four (4) outputs were
partially implemented. Out of 28 activities, the entity fully
implemented ten (10) activities worth UGX.11.099Bn, two (2)
activities worth UGX.2.47Bn were partially implemented and 16
activities remained unimplemented because funds were not
released.
ix) The Company had a Tooke sales budget of UGX.5Bn for the
financial year 2023/2024. Out of which, only UGX.2.568Bn had
been collected representing a performance of 51% of the target.
x) It took an average of 2-3 Months from planned contract signing
date to actual contract signing date for a sample of six (6)
procurements worth UGX.2.095Bn.
Science, Technology Innovation, Unqualified i) STI transferred UGX.145.93Bn to DEI-BIO PHARMA in two tranches
and Innovation Technology Transfer on 3rd October 2023 and 12th January 2024 prior to signing of the
Secretariat (STI) and Development MOU between the company and Government which was done on
6th March 2024.
ii) GoU was allocated 9.4% of the shares in DEI Bio Pharma for
UGX.724Bn. No valuation report and audited financial statements of
DEI Bio Pharma were provided to confirm if the Government
investment was equivalent to the shareholding proportion
allocated.
iii) Out of the Innovation funds released worth UGX.32.72Bn, only
UGX.2.2Bn had been disbursed to grantees by 30th June 2024. The
balance of UGX.30.52Bn (93.2%) was still held in the UDBL, DFCU
and Post Bank accounts.
iv) Out of the UGX.22.7Bn expected to be provided to the Anti-tick
Vaccine Project over a 5-year period from FY 2021/2022 to FY
2025/2026, funds amounting to UGX.18.14Bn had been provided
by the time of audit. Consequently, the project achieved four (4)
out of the nine (9) milestones representing 44% performance.
v) STI advanced UGX.62.9Bn to National Enterprise Corporation for
construction of a Vaccine Manufacturing Factory at Kakoge,
Nakasongola District which was supposed to be completed in the
FY.2023/2024. At the time of reporting (December 2024), works
had not yet commenced.
vi) I noted delayed transfer of funds meant for subventions by the STI

484
 with delays of up to three months in some cases.
vii) STI transferred UGX.8.9Bn to some two (2) subventions on 24 th
June 2024, only a week to the end of the financial without
approved work plans and budgets for the year.
viii) The Secretariat did not have an approved STI Strategy and Staff
structure.
ix) Out of the approved budget of UGX.940Bn, the total warrants for
the year amounted to UGX.935Bn, representing 99.4%
performance. UGX.5.50Bn that was not warranted was meant for
funding Preside grantee.
x) Out of the total warrants of UGX.935Bn, warrants worth
UGX.932Bn had been utilised by the close of the financial year
while the balance of UGX.2.99Bn that was not utilised was meant
for the rehabilitation of Mpoma that was not implemented.
xi) Out of a sample of 20 activities, four (4) activities were fully
implemented, 14 activities were partially implemented while four
(4) activities were not done at all. I was not able to attach activity
costs to the activities since the entity did not provide the costings.
xii) I noted that STI received supplementary funding amounting to
UGX.757Bn out of which UGX.178.68Bn was not requested for by
the Accounting Officer as required by the PFMR.
xiii) Out of the 58 approved positions, 24 were filled leaving 34
positions vacant with administrative support being grossly
understaffed and none in the office of the Minister.
Project for the Public Sector Unqualified i) Out of the budgeted USD.70.9Mn, the project received and
Restoration of Transformation absorbed USD.65.3Mn (92%). The balance of USD.5.6Mn was not
Livelihoods in the realised due to foreign exchange loss suffered by the SDR against
Northern Region the USD
(PRELNOR) - IFAD ii) Out 15 key deliverables assessed, 8 (53%) were fully implemented,
Loan No.UG 3 (20%) partially implemented, while 4 (27%) were not
2000000947 and implemented at all. This affected construction of 3 strategic bulk
ASAP Grant markets, 100 demonstration water harvesting infrastructure and
No.2000000324 for recruitment of 7 weather station workers
9-month period iii) The maintenance of completed 1,138 Kms of community access
ended 31st March roads and 2 markets was not effectively undertaken by the districts
2024 due to failure by management to put in place effective
sustainability measures
iv) Inspection of Ayerolwango - Aswa River Community Road revealed

485
 that although the project had spent UGX.0.799Bn, the works had
stalled due to the rocks in the basement, which were not
envisioned
v) Three projects namely; the bridge at St. Kizito P/S-Lamach, Lukole
Satellite Market and Opit Satellite Market had inadequacies in their
design and could not be completed within the project time frame.
The projects have been handed over to the districts who may not
be able to complete them
Reducing Climate Natural Resources, Unqualified i) Out of the expected cumulative disbursement of UGX 10.57Bn only
Change Vulnerability Environment, Climate UGX 3.69Bn was received representing a 34.9% performance.
of Local Change, Water and ii) Out of the forty-three (43) activities sampled worth USD. 1.00Mn;
Communities in Land Management thirty (30) activities worth USD 0.65 had been fully achieved, while
Uganda Through thirteen (13) activities worth USD. 0.35 had been partially
Ecosystems Based achieved.
Adaptation (EBA) in iii) Out of the approved budget of USD 1.98Mn for the year 2023, only
Wetlands and Forest USD 0. 46Mn was available for spending resulting in 23.26%
Ecosystem Project performance.
(For the year ended iv) Out of the total available funds of USD 461,330.2 only USD
31st December 460,669 was spent resulting in unspent balance of USD 661
2024) representing an absorption level of 99.88%.
Public Procurement Governance and Unqualified i) According to the Authority's Ministerial Policy Statement, twenty-
& Disposal of Public security seven (27) positions were cleared for filling in financial year
Assets (PPDA) Private sector 2023/2024 but only ten (10) positions were filled. The total current
development staff establishment is 136 out of 160, implying a filled structure of
85%.
ii) A comparison of the entity’s strategic and annual work plans for the
last three (3) years with the mandate as stipulated in relevant laws
revealed that the entity had not adequately executed.
iii) The entity had an approved budget of UGX. 24.1Bn out of which
UGX. 23.9Bn (representing an 99.1% performance) was warranted
resulting in a shortfall of UGX.0.215Bn which affected two activities
of Administrative and Support Services and Facilities and
Equipment Management
iv) I assessed the extent of implementation of activities for which
funds were availed and utilised. I noted that some of the Authority
activities were not implemented.
Public Procurement Governance and Unqualified i) A comparison of the entity’s strategic and annual work plans for the
& Disposal of Public security last three (3) years with the mandate as stipulated in relevant laws

486
Assets (PPDA) Private sector revealed that the entity had not adequately executed its mandate.
Appeals Tribunal development ii) The entity had an approved budget of UGX.3.55Bn out of which
UGX.3.351Bn (94%) was warranted, resulting in a shortfall of
UGX.0.198Bn.
iii) The Tribunal did not conduct a mid-term review of the Strategic
Plan as required to assess the level of implementation and its
effectiveness against the set strategic objectives.
Public Service Public sector Unqualified i) After four (4) years of the Strategic plan implementation, PSC had
Commission (PSC) transformation not rolled out the e-recruitment system to the 135 DSCs and 10
City Service Commissions (CSCs) to enable smooth recruitment of
public servants.
ii) UGX.10Mn was not warranted which affected research activities
and payment of water expenses.
iii) Out of UGX.11.9Bn that was warranted, UGX.11.8Bn was utilised.
The unutilised funds of UGX.125Mn were meant for salaries and
pension.
iv) Eight (8) outputs with 27 activities worth UGX.4.86Bn were not
supported by individual activity costing and budgets. The extent of
implementation of these activities could not be assessed.
Refugees on the Human Capital Unqualified There were no reportable issues
Move (ROM): South Development
Sudanese in
Ethiopia, Sudan and
Uganda Project for
the period 1st Jan
2023 to 31st Dec
2023
Securing Uganda’s Natural Resources, Unqualified i) Out of the fourteen (14) activities worth US$ 2.66Mn sampled,
Natural Resource Environment, Climate twelve (12) activities worth UG$2.39Mn were fully achieved while
Base in Protected Change, Water and two (02) activities worth US$0.27Mn were partially achieved.
Areas Project (SIDA) Land Management ii) Out of the total available funds of US$2.78Mn only US$ 2.15Mn
- NFA (77.4%) was spent resulting in unspent balance of US$0.63Mn.
Soroti University Human capital Unqualified i) I noted that the University had outstanding payables of UGX.
development 245,267,999 as at 30th June 2024 majority of which relate to prior
financial years (2021/2022 and 2022/2023).
ii) The University accumulated receivables amounting to UGX.
199,538,674 in relation to utilities prepayments and students’ fees.
iii) The entity had an approved budget of UGX. 26.720Bn out of which

487
 UGX 26.207Bn was warranted resulting in a shortfall of UGX
0.513Bn representing a 98.1% performance.
iv) The entity had total warrants of UGX 26.207Bn out of which
warrants worth UGX. 25.804Bn had been utilized by the close of
the financial year leaving a balance of UGX.0.403Bn unutilized. The
unutilised warrants relate to salaries and so,e procurements.
v) I assessed the extent of implementation of activities for which
funds were availed and utilized and noted that out of 17 outputs
with 93 activities worth UGX. 4.3Bn, six (6) outputs, with 32
activities worth UGX.0.186Bn, were fully implemented while eleven
(11) outputs with 61 activities worth UGX.4.118Bn were partially
implemented.
vi) The entity fully implemented thirty-one (31) activities worth
UGX.1.667Bn, while thirty (30) activities worth UGX.2.452Bn were
partially implemented.
South-Western Natural Resources, Unqualified There were no reportable issues
Cluster Water and Environment, Climate
Sanitation Project Change, Water and
(NWSC) for the year Land Management
ended 30th June
2024
State House Governance and Unqualified i) Included in the total expenditure of State House of UGX.799.85Bn
security is UGX.455.18Bn, which relates to classified expenditure. This
Innovation, expenditure is audited and reported on separately.
technology ii) At the start of the FY 2023/2024 the Science, Technology and
development and Innovation – Office of the President (STI-OP), account in State
transfer House had a balance of UGX.114.06Bn. Out of which, UGX.55.06Bn
was disbursed to Grantees, UGX.6.19Bn was remitted to Uganda
Development Bank Limited for on-ward disbursement to grantees,
UGX.7.93Bn was advanced to NEC- Construction towards the
construction of a vaccine manufacturing facility. In addition,
UGX.20.66Bn was spent on classified activities, UGX.10.06Bn paid
to NSTEI-SEP project, while a balance of UGX.14.16Bn was utilised
on STI secretariat operations.
iii) State House did not prioritize implementation of two (02) mandate
activities of construction of four (04) State Lodges and
procurement of the Presidential Jet.
iv) The entity had a total approved budget of UGX.344.67Bn for non-

488
 classified entity operations, all of which was warranted and
absorbed.
v) I undertook a special audit of the pension payroll and a separate
report was issued.
vi) I conducted an audit of the Treasury Memoranda for the entity on
the Report of the Public Accounts Committee on the Auditor
General’s Report on entities with unqualified opinion for financial
year 2014/15 and on the Report of the Public Accounts Committee
- Central Government on the Report of the Auditor General for
financial year 2020/21. Out of the seven (7) recommendations
issued, six (06) recommendations were fully implemented and one
(01) was partially implemented.
Strengthening Natural Resources, Unqualified i) Out of the expected disbursement for two years of UGX.35.76Bn,
Adaptive Capacity Environment, Climate only UGX.3.34 was disbursed and UGX.32.42 remained
and Resilience of Change, Water and undisbursed.
Communities in Land Management ii) I sampled Seventy-six (76) activities worth UGX.2.03Bn and noted
Uganda’s that targets for twenty (20) activities worth UGX.0.57Bn had been
Watersheds - Awoja fully achieved, twenty-six (26) activities worth UGX.1.33Bn was
Catchment partially implemented, while thirty (30) activities worth UGX.0.13Bn
(SACRiAC) remained unimplemented
iii) The Project had an approved budget of UGX17.94Bn for the
financial year 2023/2024 out of which UGX.2.43Bn was remitted
resulting in a shortfall of UGX.15.51Bn representing 13.6%
performance.
iv) Out of the total available funds of UGX.2.43Bn only UGX.2.01Bn
was spent resulting in unspent balance of UGX.0.42Bn representing
an absorption level of 82%. The unspent funds were still held on
the Project bank account number 0239592001 in Diamond Trust
Bank.
Strengthening the Sustainable Unqualified i) The donor has cumulatively disbursed USD.9,925,052 which
Management of the Development of represents 95% to the total expected donor disbursements.
Oil and Gas Sector in Petroleum Resources However, GoU has not disbursed any of the expected
Uganda (SMOG) - USD.1,256,000.
Phase III ii) Out of the 20 program activities, targets for 15 activities have been
fully achieved, one (1) was partially achieved, while targets for four
(4) had not been achieved by the end of the financial year.
iii) Out of the project’s available funds of USD.33,380.51, a sum of
USD.27,957.34 was spent, representing an absorption capacity of

489
 84%. The unspent funds of USD.5,423.17 were still held at the
project bank account as at the end of the financial year.

Tax Appeals Tribunal Administration of Unqualified i) A review of the tax disputes received and managed in the financial
(TAT) Justice year 2023-2024 revealed that out of 558 cases, 30 cases were
ruled, 95 cases were consented to, 3 cases were remitted back to
URA, 32 cases were withdrawn, and 398 (71.3%) cases remained
outstanding.
ii) I noted that two of the four additional Tribunal members appointed
in May 2023 did not meet the required qualifications under the Act,
as their areas of speciality were not in line with taxation, finance,
accounting or law as required.
iii) TAT had an approved budget of UGX.7.628Bn out of which
UGX.7.253Bn was warranted resulting in a shortfall of UGX.0.375Bn
representing 95% performance.
iv) TAT had 50 recommendations in the Treasury memoranda, of
which 25 (50%) were implemented, 20(40%) were partially
implemented and 5(10%) were not implemented.
MUST CAD Project Human Capital Unqualified i) The project’s total available funds for the year were US $54,166 out
for the period 1st Development of which US $45,079 (83%) was spent, resulting in unspent
June 2021 to 31st balance of US $9,087
May 2022
The Third National Natural Resources, Unqualified i) The project has outstanding commitments of USD 20,054.99 to be
Communication Environment, Climate settled
(TNC) (MWE) for six- Change, Water and ii) Out of available funds of USD 27,356.71, only USD 25,309.29 was
month period 1st Land Management spent, representing an absorption level of 93%
Jan 2023 to 30th Jun
2023
Transformative Human Capital Unqualified There were no reportable issues
Education and Development
Lifelong Learning for
Sustainable Growth
(TELLS) Project

490
(MUK) for the period
1st January 2023 to
31st Dec 2023
Trypanogen Project Human Capital Unqualified There were no reportable issues
(MUK) - 30th Development
September 2023

Uganda Energy Energy Development Unqualified i) The company deficit increased by 32% from UGX.3.13Bn (2022/23)
Credit Capitalisation to UGX.4.15Bn in the financial year 2023/24 despite the 60%
Company Limited increase in government subvention from UGX.2.8Bn to UGX.4.5Bn
(UECCCL)
Uganda Aids Human capital Unqualified i) NTR amounting to only UGX.700,000 out of the approved budget of
Commission (UAC) development UGX.45,000,000 was realized resulting into a shortfall of
UGX.44,300,000 representing 1.6% performance.
ii) 25 districts out of 135 districts did not allocate 0.1% of their total
budgets (excluding pension, gratuity and transfers) for HIV and
AIDS interventions as required by the Budget Circular for FY
2018/19 to all MDAs and LGs.
iii) Although 118 Local Governments out of 135 were supported to
develop HIV& AIDS strategic plans, only 60 districts developed
them.
iv) The entity completed validation of the National HIV sustainability
framework and awaiting for Cabinet consideration and approval.
v) UGX.16.967Bn out of the approved budget of UGX.17.600Bn was
warranted resulting into a shortfall of UGX.0.633Bn representing
96% performance.
vi) A total of UGX.16.529Bn out of UGX.16.967Bn that was warranted
had been fully utilized by the close of the financial year resulting
into UGX0.438 to remain unutilised.
vii) Out of the four (4) outputs with 61 activities worth UGX.1.235Bn
assessed, two (2) outputs with eighteen (18) activities and
expenditure worth UGX.0.551Bn were fully implemented, while two
(02) outputs with 43 activities worth UGX.0.614Bn were partially
implemented.
viii) I conducted an audit of the Treasury Memorandum for the
Commission and noted that out of the 6 recommendations by
Parliament, only 5 were fully implemented while 1 was partially
implemented

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Uganda Air Cargo Integrated Transport Unqualified i) UACC had outstanding receivables worth UGX.20.75Bn, out of
Corporation (UACC) and Infrastructure which debtors worth UGX.8.17Bn (39%) had been outstanding for
for the financial year Services a period of over five (5) years.
ended 30th June ii) UACC had outstanding trade payables worth UGX.6.04Bn which is a
2024 19% decrease from the prior year outstanding trade payables
amount of UGX.7.49Bn
iii) The entity budgeted to collect UGX.405.3Bn during the year
however, by the end of the year, only UGX.55.3Bn (14%) had been
collected. This resulted in loss of UGX.8.21Bn
iv) The Corporation’s return on assets was negative 6% which was
below the recommended 5%, an indication that the entity is
suboptimal and inefficient in utilising its assets due to the old and
deregistered fleet
v) The Corporation had a current ratio of 10:1 which is outside the
desirable range of 1:2
vi) I assessed the implementation of 21 key activities worth
UGX.405.89Bn and noted that 12 activities were not implemented
while nine (9) activities were partially implemented.
vii) I conducted an audit of the Treasury Memorandum on the report of
the Public Accounts Committee on Commissions, Statutory
Authorities and State Enterprises for the financial year 2020/21 and
noted that out of the five (5) Parliamentary recommendations given
to the UACC, four (4) were partially implemented, while one (1)
recommendation was not implemented at all.
Uganda Blood Human capital Unqualified i) I noted a 42% increase in domestic arrears of UGX.606.82Mn from
Transfusion Service development UGX.1.438Bn at the end of 2022/23 to UGX.2.045Bn in 2023/2024.
(UBTS) ii) I noted that out of 1,137 approved positions, 318 positions were
filled, leaving 819 positions vacant.
iii) UBTS was inadequately equipped and lacked essential medical
equipment, which affected its service delivery. It experiences
frequent power interruptions that damage the equipment and there
was need for an electrical earthing plate and transformer to ensure
equipment safety and un-interrupted power supply.
iv) There was idle medical equipment at the Regional Blood Banks
(RBBs).
v) The entire revised approved budget of UGX.24.829Bn was
warranted.
vi) The entity had total warrants of UGX.24.829Bn out of which

492
 warrants worth UGX. 24.192Bn had been utilised by the close of
the financial year resulting into the balance of UGX. 0.637Bn un-
spent. The unspent funds were meant for General salaries, Pension
and Gratuity payments.
vii) The entity collected 356,035 units of blood out of the targeted
360,000 units resulting into a shortfall of 3,965 units representing
99% performance.
viii) I undertook a special audit of the pension payroll, and a separate
report was issued.
ix) I carried out a follow up audit on the VFM audit report on
Management of Blood Transfusion Services by the Uganda Blood
Transfusion Services of 2013 and noted that the following
challenges still existed;
a) Lack of accreditation for most of the Regional Blood Banks,
b) Non-achievement of the World Health Organisation’s
recommended blood collection target of 1% of the population,
c) Lack of functional Hospital Transfusion Committees.
Uganda Community Unqualified i) The Corporation reported the value of property plant and
Broadcasting Mobilization and Equipment of UGX.318.79Bn that included assets that were initially
Corporation (UBC) Mind-set Change acquired at UGX.26.32Bn that have since been fully depreciated
and still in use. There is need to revalue the affected assets.
ii) The Corporation owns 37 parcels of land that are not valued.
iii) The Corporation payables have increased from UGX.55.68Bn to
UGX.62.74Bn representing 12.8 % growth. This exposes the
Corporation to risks of legal suits and penalties.
iv) The Corporation has receivables of UGX.32.03Bn representing a
9.7% increase compared to the previous year. A lot of working
capital is tied up in these receivables.
v) The manager Mega FM had registered the radio station in
November 2021 as a private entity in the names of Mega
Community Broadcast Ltd with four shareholders. The manager
was suspended on 28th February 2024 and was eventually
dismissed on the 4th of April 2024 for failure to comply with the
requirements in the suspension letter and the case handed over to
CID and DPP. The manager Mega FM has consequently taken the
Corporation to court claiming that UBC does not own Mega FM but
instead the radio belongs to the community with a separate board.
vi) The Corporation awarded a UGX.8.58Bn contract for Supply and

493
 installation of DTT/DTH hybrid one beam Television satellite
solution. The contract execution has delayed by over 6 months.

Capital Markets Private Sector Unqualified i) The Authority approved various Market Players without evidence of
Authority (CMA) Development payment of the prescribed fees contrary to Section 51 (1) of the
CMA Act Cap 64.
ii) The Authority has failed to license the Financial Institutions that
participate in the Capital Markets as either stockbrokers or dealers
in the securities issued by the Government as required by Law.
iii) The Authority did not come up with regulations to establish and
manage a Compensation Scheme hence, the scheme has remained
inactive.
iv) The entity did not return the unutilized funds of 0.7Bn to the
Consolidated Fund as required by the Financial Regulations.
v) The Authority did not conduct and prepare a Board of Survey
Report as required.
Enterprise Uganda Private Sector Unqualified i) A comparison of the entity’s strategic and annual work plans for the
Foundation (EUF) Development last three (3) years with the mandate as stipulated in its
memorandum of association revealed that the entity had not
adequately executed its mandate.
ii) Construction of Office Block at Plot 92a Butabika Road and Plot 2-4
Bukasa Lane, Butabika is behind schedule and the contract lacked
essential accessibility features for disability as required under the
Building Control Code 2019.
iii) 6 Motor Vehicles worth UGX.135.75Mn used by the Enterprise
Uganda are not registered in the entity names as required.
iv) The Entity does not prepare its financial statements from
QuickBooks despite using the system in the management of
financial transactions.
Insurance Development Plan Unqualified i) Review of the implementation of the entity’s Mandate - comparison
Regulatory Authority Implementation of the entity’s strategic Plan and annual work plans for the last
(IRA) three (3) years with the mandate as stipulated in relevant laws
revealed that the entity had not adequately executed its mandate
ii) I assessed the extent of implementation of activities for which
funds were budgeted and utilized. A total of 25 outputs with 32
activities worth UGX. 25.44Bn were assessed. I observed some
activities were either partially implemented or not implemented at
all hence affecting service delivery.

494
 iii) I observed the delayed completion of procurements at the
Authority worth UGX. 9.321Bn. The delays negatively affect service
delivery.
iv) IRA contracted M/s Regnology Ireland Ltd for the Supply,
Installation and customization of regulatory reporting software at a
two-year contract price of UGX.3.963Bn for a non-functional system
and in addition made subscription payments to M/s Regnology
Ireland Ltd to the tune of UGX.1.07Bn before the system was
commissioned and operational.
v) It was observed that UGX.2.352Bn was received for licences and
compliance fees past the stipulated time of 31st August of the
preceding year. Such delays of receipt of funds have an impact on
the operations of the Authority.
vi) During the year, the IRA released UGX.0.563Bn in 2023/2024 FY to
the Insurance Appeals Tribunal for its operations. However, I noted
that the Tribunal did not have proper operational structures. Urgent
intervention is required in that regard.
vii) The Insurance Appeals Tribunal that is empowered to Tribunal to
uphold, reverse, revoke or vary a decision of the Authority or remit
the matter back to the Authority for reconsideration, with or
without guidance. However, the Tribunal obtains its financing from
the Insurance Regulatory Authority. The Tribunal is operating
without adequate structures and operational independence.
National Lotteries Community Unqualified i) The Board recognised the value of Plant, Property and equipment of
and Gaming mobilization and UGX 10.87Bn in the statement of financial position and made a
Regulatory Board mindset change disclosure in Note 26 to the financial statements. However, the assets
(NLGRB) Development plan have been recognised at the historical acquisition costs without
implementation valuation.
Private sector ii) NLGRB system the NCEMS currently receives approximately 0.524202
development GB of data per month, which translates to 6.290424 GB per year for
Public sector the 32 on boarded operators. I was not availed capacity details of the
transformation database to confirm its overall capacity. The system requires
additional storage to accommodate the information being captured.
iii) Section 7 of the Anti-Money Laundering Act Cap 118 requires an
accountable person to take appropriate steps to identify, assess and
monitor its money laundering, terrorism financing and proliferation
financing risks. I was not provided evidence in this respect that the
assessment was done.

495
 iv) A comparison of the entity’s strategic and annual work plans for the
last three (3) years with the mandate as stipulated in relevant laws
revealed that the entity had not adequately executed its mandate. For
example; the entity did not maintain a national register for gaming
equipment, a delay in developing the gaming framework, and delayed
implementation of the NCEMS.
v) The entity had total warrants of UGX.13.576Bn out of which warrants
worth UGX.12.647Bn had been utilized by the close of the financial
year resulting in unutilized warrants of UGX 0.928Bn.
Uganda Innovation, Unqualified i) The Corporation’s Finance Policies and Procedure Manual lacked
Development technology policies and guidelines to recognise and disclose the expenditure on
Corporation (UDC) development and exploration costs. I noted that the statement of financial position and
transfer note 17, disclosed that UDC had exploration costs worth UGX. 2.601
Bn. Although UDC used IFRS 6 to account for exploration costs, they
lacked guidelines or policies on the classification of what qualifies for
exploitation costs.
ii) From the beginning of their term in 2021, the Board was not fully
constituted since there was no representation from the Ministry of
Finance as stipulated in the UDC Act. It was also observed that the
tenure of the remaining members of the UDC Board expired on 25th
November 2024. Currently, UDC does not have a Board.
iii) UDC invested UGX.9.24Bn in Kigezi Highland Tea Factory Ltd and
UGX.4.358Bn in Kayonza Growers Tea Factory Ltd through lease
financing. However, there was no policy to guide the investment.
iv) Because of lack of policy to guide lease financing, there was failure to
execute lease financing agreements with Kayonza Growers Tea and
Horyal Ltd of UGX.112.358Bn.
v) UDC did not deduct the transaction fee of 1% (UGX.261.5Mn) of the
sum invested in Abubaker Technical Services Ltd as required by the
contract.
vi) I sampled procurements worth UGX.2.685Bn and noted that the
Corporation did not carry out market assessments as required.
Uganda Business Human capital Unqualified i) The Board had outstanding payables of UGX.2.135Bn as at 30th
and Technical development June 2024. There was no movement of payables from the prior
Examination Board year. The Board did not incur or pay any payables during the year
(UBTEB) under review.
ii) UBTEB is operating without a Technical Vocational Education and
Training Qualifications Framework.

496
 iii) I noted that one hundred one (101) institutions accredited by
UBTEB were operating on expired licenses while others did not
have licences from NCHE and MoES.
iv) UBTEB planned to retool 1200 assessors and has so far achieved
890 (74%) only as at end of FY2023/24.
v) The entity had total warrants of UGX.56.167Bn out of which,
warrants worth UGX.52.67Bn had been utilised by the close of the
financial year. The balance of UGX.3.497Bn was meant for activities
which were either partially or not implemented at all.
Uganda Digital Unqualified i) Licensed Television and FM radio operators are supposed to submit
Communications Transformation Audited financial statements to the Commission for assessment of
Commission (UCC) 2% Gross Annual Revenue levy. However, this was not done during
the year.
ii) The Commission is required to license operators. However, it was
noted that NITA-U and Uganda Broadcasting Corporation (UBC)
were operating without licenses by the Commission as required by
the regulations.
iii) The emergence of Artificial Intelligence, the Commission has not
come up with regulations or guidelines to guide the use and
development of Artificial Intelligence tools in the country.
iv) Various operators were erecting different poles in almost the same
locations with cables which included data cables, communication
lines, fibre optic cables, and television broadcast cables. These
cables were observed running haphazardly along the roadside
hanging on several poles from one location to another.
v) The Commission had an approved budget of UGX.207.6Bn but
realized UGX.182.2Bn, out of which UGX.182.22Bn (99.9%) was
utilized by the close of the financial year.
Uganda Digital Unqualified i) UCC entered into a Memorandum of Understanding with the
Communication Transformation Ministry of ICT and National Guidance and incurred expenditure of
Universal Services UGX.8.6Bn on behalf of the Ministry and also transferred
Access Fund UGX.2.6Bn to the Uganda Institute of Communication and
(UCUSAF) Technology (UICT). However, the basis of arriving at the amount
transferred was not clear.
ii) The Fund had a balance of UGX 83.185Bn in its bank accounts at
the end of the period under review. Several work plan activities
were not implemented, negatively affecting service delivery.

497
Uganda Cancer Human capital Unqualified i) The entity had long outstanding payables amounting to
Institute (UCI) development UGX.17.59Bn by the close of the previous year 2022/2023, out of
which no settlement was made during the year under review.
ii) Although the contract for the construction of a 350 Bed hospital, a
Paediatric ward, 8 level Building, service building and renovation of
the six-level building at a contract price of UGX.69.676Bn had
expired, the works were incomplete. The contract, the performance
security and insurance policy had not been renewed.
iii) Out of the approved budget of UGX.97.15Bn, the total warrants for
the year amounted to UGX.96.81Bn resulting into a shortfall of
UGX.0.34Bn representing 99.7% performance.
iv) Warrants worth UGX.94.04Bn out of the total warrants of
UGX.96.81Bn were utilised leaving a balance of UGX.2.77Bn
unutilized.
v) A total of 7 outputs with 72 activities worth UGX.57.03Bn were
assessed and they were found to have been fully implemented.
vi) The certificate of compliance for alignment of the annual budget to
NDPIII for FY 2023/2024 issued by the National Planning Authority
(NPA) indicated that the Vote scored only 40% regarding alignment
of the Budget Framework Paper (18.2%) and the Annual Budget
(26.4%) to the NDPIII.
vii) A Review of the procurements amounting to UGX.1.624Bn showed
that the contract managers did not prepare contract management
plans using Form 49, to guide the supervision of the contract.
viii) I undertook a special audit of the pension payroll, and a separate
report was issued.

Uganda Civil Integrated Transport Unqualified i) UCAA's failure to adhere to the On-Lending Agreement has resulted
Aviation Authority and Infrastructure in rising borrowings of UGX.723.63Bn as of June 2024, with no
(UCAA) Services corresponding repayments made to GoU despite principal
repayments to China EXIM Bank totalling ¥145,384,615.
ii) The financial analysis of the Authority for FY 2023/24 indicates a
decline in financial performance, primarily driven by increased
operating expenses (+18.9%), resulting in a reduction of the net
surplus to UGX.32.008Bn.
iii) Liquidity remains strong at 3.36 times, though it has decreased due
to a 23.9% rise in trade and other payables since the previous year
2023.

498
 iv) The debt ratio of 38.44% remains within acceptable limits, while
interest coverage has declined from 3.0 to 2.65 times since the
previous year 2023, signalling reduced capacity to meet interest
obligations.
v) UCAA’s failure to enforce CGV-determined rental rates and secure
formal tenancy agreements with Tenants for the New Cargo
Terminal Building has resulted in a USD 1,389,188 revenue
shortfall.
vi) UCAA’s lack of formal agreements with government entities
occupying airport space has resulted in an uncollected revenue
shortfall of UGX.2.70Bn.
vii) Two contracts worth UGX.2.23Bn were executed with invalid bid
securities.
viii) A review of four (4) procurement files revealed that supplies worth
UGX.11.08Bn had not been executed as of November 2024,
significantly delaying service delivery.
ix) A review of procurements on the Electronic Government
Procurement (EGP) system for FY 2023/2024 revealed that
contracts worth UGX.73.37Bn lacked critical records.
x) The review of UCAA's mandate implementation revealed significant
delays and non-implementation of key activities, including the
centralized aeronautical database, the aviation training center, and
the new control tower at Entebbe International Airport.
xi) The assessment of 44 activities worth UGX.52.50Bn revealed only
one fully implemented activity, while the majority were partially or
not implemented, highlighting inefficiencies in fund utilization and
delays in achieving project objectives.
xii) I carried out a special audit on the Management of the Entebbe
Airport Car Parking management system for the financial years;
2020/21 and 2021/22 and following were noted;
a) UCAA had established policies and procedures on car
admission, fee collection, and cash management in the UCAA
Financial Policies and Procedures Manual (2016), revised and
later approved in April 2023.
b) Exemptions for 614 vehicles were granted during the review
period, but the policies did not provide guidelines for such
exemptions.
c) 654 suspicious transactions with irregular receipt numbers and

499
 missing prices resulted in a potential revenue loss of
UGX.1.33Mn.
d) 15,539 entry transactions worth UGX.31.64Mn lacked payment
or invoice references, reflecting significant recording flaws.
e) 23,908 exit transactions had no entry records, posing revenue
loss risks and security concerns.
f) 54,585 transactions lacked vehicle license plates, while 14,109
transactions had unrecognizable plates, compromising toll
enforcement and administration.
g) UCAA implemented a draft policy for cash offloading, which
was later approved in 2023.
h) UGX.68,63Mn was irregularly spent at source through internal
borrowings (IOUs) by staff, contravening financial regulations.
i) Internal controls over the car parking IT system were inadequate.
Uganda Coffee Agro-industrialization Unqualified i) There was a decrease in UCDA payables from UGX.49.67Bn in the
Development previous year to UGX.45.43Bn by close of the financial year
Authority (UCDA) 2023/24.
ii) UGX.5.5Bn was diverted to settle outstanding obligations that had
no budget provision.
iii) Out of the 224 approved staffing positions, only 156 (70%) were
filled, leaving 68 positions vacant.
iv) The coffee learning hub project had not yet commenced due to
lack of land for operation.
v) UCDA had planned to undertake registration of all coffee farmers to
ensure compliance with the European Union Deforestation
Regulation (EUDR) by 30th December 2024. However, by the time
audit (September 2024), the registration had not commenced.
vi) The traceability system meant to capture geographic coordinates of
production plots to verify deforestation-free practices had not yet
been procured.
vii) 29 out of the 40 beneficiaries of the coffee pulpers and wet mills
equipment neither complied with the prescribed guidelines for the
infrastructure nor met the eligibility criteria for receipt of
equipment.
viii) One (1) wet milling equipment supplied was faulty and failed to
pass the test runs
ix) UCDA had not facilitated the planting of 300 million coffee trees by
the end of the strategic plan implementation period aimed at

500
 increasing coffee production by 5% in existing coffee areas, and
25% in new areas (Mid North Uganda).
x) UCDA had an approved budget of UGX.44.756Bn out of which
UGX.44.696Bn was warranted, resulting in a shortfall of UGX.60Mn.
xi) The entity had total warrants of UGX.44.696Bn out of which
warrants worth UGX.43.423Bn had been utilised by the close of the
financial year, leaving a balance of UGX.1.273Bn.
xii) Out of 107 activities, the entity fully implemented 82 activities
worth UGX.19.662Bn while 25 activities worth UGX.2.166Bn were
partially implemented.
xiii) All the 17 recommendations that were issued in the Treasury
Memorandum on the Report of the Public Accounts Committee on
Commissions, Statutory Authorities and State Enterprises for the
Financial Year 2020/2021 by Parliament were fully implemented.
Uganda Covid-19 Human Capital Unqualified i) I reviewed a sample of procurements and noted inconsistencies in
Response and Development the special conditions of contract stipulated in the solicitation
Emergency documents and the signed contract agreements regarding the
Preparedness delivery timelines.
Project (UCREPP) ii) I noted delays in the evaluation of bids for four (4) procurements
ranging from 71 to 73 days and delays in delivery of supplies
(medical equipment) ranging from 23 to 84 days.
iii) I compared the total cumulative disbursements of project funds as
at 30th June 2024 against the project financing agreement and
noted that the total cumulative disbursements to date were USD
133,592,803 resulting in undisbursed funds of USD. 61,907,197.
iv) I noted that out of the thirty-four (34) project targets set to be
achieved cumulatively by end of the project, only twelve (12) had
been fully achieved, fourteen (14) partially achieved while eight (8)
had not yet been achieved.
v) In the FY 2023/24 out of the total available funds of USD.
35,909,760 only USD 24,017,767 was spent resulting in unspent
balance of USD.11,891,992.94 (representing an absorption level of
67%).
vi) I assessed the extent of implementation of activities for which
funds were availed and utilised and noted that 62 activities had
been fully implemented, 34 activities were partially implemented
while 14 activities were not implemented.
vii) I assessed twenty-one (21) construction projects implemented by

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 the project, all of which had their contract completion dates
scheduled for December 2024 and noted that only one (1) site
(representing 5%) had been completed within the planned
timelines, while twenty (20) sites were still at various stages of
completion.
viii) Whereas the project closure date was 31st December 2024, there
was no evidence that management had put in place sustainability
measures to ensure that the gains made during the project lifetime
are not lost once the project closes.
Uganda Electricity Energy Development Unqualified i) The amount due from
Distribution related parties increased by UGX.23.90Bn (21.5%) from
Company Limited UGX.111.27Bn to UGX.135.18Bn majorly due to unpaid Electricity
(UEDCL) bills for Government entities.
ii) The Company’s deficit
increased from UGX.2.18Bn to UGX.10.92Bn, which worsened the
accumulated deficit by 37%. This was partly due to the regulator
continuing to disallow lease rental fees in the tariff yet the
company incurs depreciation from assets in use by Umeme Ltd.
iii) The company’s debt ratio
as was 70.4% which indicates that more than half of the company’s
assets are financed by debt, particularly on-lent loans.
iv) I noted low maintenance
practices for transformers. Only 2,827 out of 5,133 transformers
representing a 55% maintenance rate. Further, out of 285
transformer failures, 194 (68%) were caused by controllable factors
while 91 (32%) were caused by uncontrollable factors.
v) The company budgeted
to collect UGX.108.66Bn. However, UGX.100.42Bn was realized
representing 92% performance. Out of the available funds, 73%
was absorbed. There were budget overruns and unapproved
expenditure amounting to UGX.4.45Bn and UGX.0.64Bn
respectively.
vi) I noted that annual work
plans were prepared separately from the budget estimates, and as
a result the budget and activity performance are monitored
separately.
vii) I noted that 96 (55.5%)
activities out of a total of 173 did not have performance

502
 measurement indicators. For the 77 activities (44.5%) with clear
performance indicators, 56 (73%) were fully implemented, 20
(26%) were partially implemented and 1 activity (1%) was not
implemented at all.
viii) I assessed the company’s
performance under the Quality-of-Service standards (QOSs) and
noted that services were not provided within the required timelines,
thereby scoring below 100% under all the sampled standards.
Uganda Electricity Energy Development Unqualified i) I noted that the company had receivables of UGX.147.64Bn that
Transmission had been outstanding for a period above 90 days. Similarly,
Company Limited Payables amounting to UGX.132.12Bn due to MEMD had been
(UETCL) outstanding for over 2 years.
ii) Out of the total planned procurements worth UGX.544.68Bn, only
UGX.231.07Bn (42%) were implemented. This was due to delays
arising from highly priced rejected bids leading to requests for re-
submission.
iii) I also noted inadequate needs assessments and delays in the
completion of pending 34.7 km Tororo-Lira 132kV transmission line
that resulted into increased project cost of USD.289,243.87 and
UGX.0.71Bn.
iv) The Company’s profitability decreased by 13.36% from UGX.94.9Bn
in FY 2022/23 to UGX.82.25Bn in FY 2023/24, majorly due to
foreign exchange differences that recorded a loss of UGX.10.8Bn as
compared to the registered profit of UGX.60.1Bn in the last
financial year.
v) Return on Assets was 1.89%, below the desired return of 5%,
majorly since most of the company’s assets are still Work-in-
Progress. In addition, the debt ratio is 55% implying that the
company’s assets are majorly financed by debt, particularly on-lent
loans.
vi) I noted that the company did not fully achieve its five (5) targets
under three (3) strategic goals in its five-year corporate business
plan (2019/20-2023/24). In addition, out of 101 outputs planned
for the year, 38 outputs were fully achieved, 12 were substantially
achieved, 31 partially achieved while 20 outputs (20%) were not
achieved.
vii) Out of the UGX.117.44Bn submitted cost, only UGX.28.10Bn was
approved by ERA resulting into UGX.89.33Bn (76%) rejected due to

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 inadequate justification, which affected implementation of key
infrastructure projects.
viii) Out of 4,632.7 km total circuit length of transmission lines in
service, a total of 417 km (9%) are supported on aged wooden
poles. In addition, out of 27 structures affected by vandalism, only
9 (33%) had been restored with permanent structures.
ix) The Company expected to received UGX.166Bn as GoU counterpart
funding for compensation of PAPs and deemed energy, however
only UGX.152.9Bn (92%), was realized.
Uganda Electricity Energy Development Unqualified i) Out of total revenue of UGX.90.10Bn earned from Nalubale-Kiira
Generation Company Power Station, UGX.48.20Bn in respect of the investment
Limited (UEGCL) component of the tariff was deferred. There is need for MEMD,
MoFPED, ERA, URA and Accountant General to come up with the
guiding framework for accounting treatment of the investment
component of the tariff and the associated taxes.
ii) Receivables increased by 56% to UGX.118.60Bn, while Payables
decreased by 21% to UGX.38.10Bn. The outstanding payables
majorly relate to the supply of heavy fuels and oils for Namanve
TPP, and Owner’s Engineer supervision costs for Karuma and
Isimba HPP.
iii) The Company’s profitability improved by 60% due to increased
revenue because of taking over Karuma and Nalubale-Kiira power
plants. However, the Return on Assets is only 1.25%, indicating a
sub-optimal utilisation of the company's assets in generating
income.
iv) The debt ratio was 88.7% implying that most of its assets are
financed by on-lent loans for Karuma and Isimba HPPs. The 18%
increase in interest payments may indicate potential challenges in
meeting future interest payments.
v) The company budgeted to receive revenue amounting to
UGX.540.17Bn for the financial year 2023/2024, out of which
UGX.431.18Bn was received representing 80% performance. Out of
the available funds, 80% was absorbed, which affected the full
implementation of activities.
vi) From a sample of 69 activities, 43 (62%) were fully implemented,
21 (31%) were partially implemented while five (05) were not
implemented. Unimplemented activities included Community
development Action Plan (CDAP) at Isimba and Nyagak Plants.

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 vii) Karuma Hydro Power plant (HPP) was commissioned on 12th June
2024, but there were 4,539 snags and outstanding scope of works
which would be addressed during the defect’s liability period.
Similarly, 199 defects identified for Isimba since April 2019 were
still pending.
viii) Only 3 (5%) of the 58 approved investments approved by ERA for
Nalubaale-Kiira Power Plant were completed, arising from
procurement challenges.
ix) I noted that Namanve Thermal Plant had a funding gap of
UGX.60.89Bn which affected implementation of planned capital
investments including the overdue overhaul of units and equipment
upgrades.
Uganda Mission at Development plan Unqualified i) The Mission had an initial approved budget of UGX.16.706Bn which
the United Nations, implementation was revised to UGX.17.086Bn, out of which; UGX.17.046Bn was
New York Governance and warranted, representing a 99.8% performance.
security ii) The Mission budgeted to collect NTR of UGX.6Bn during the year
Tourism under review. However, UGX.5.4Bn was collected representing a
development performance of 90%.
iii) The Mission incurred excess expenditure of UGX.937Mn, which was
largely funded from the funds retained from the prior year for the
purchase of an air circulation unit.
iv) I assessed the implementation of three (3) programmes that were
fully quantified with 9 activities worth UGX.10.7Bn and noted that,
out of the 9 quantified activities assessed, one activity exceeded the
target, while another one activity was fully implemented. Another 5
activities representing 56% were partially implemented. Two (2)
activities representing 22% were not implemented at all.
v) The Mission had accumulated security deposits from rental tenants
amounting to UGX.1.333Bn, that were all transferred to the UCF in
accordance with the requirements by the Ministry of Finance
Planning and Economic Development. However, the Mission had
failed to refund one of the tenants whose lease expired on 30th
March 2023, and had deposited a total of USD.18,029.40
(UGX.66.8Mn), due to the delays in obtaining the funds back from
Treasury. This exposes the Mission to a risk of costly legal suits.
vi) The Mission had outstanding commitments at the yearend
amounting to UGX.1.958Bn. Existence of domestic arrears means
that the Mission did not adhere to the commitment control system of

505
 government, aimed at avoiding creation of domestic arrears.
vii) I noted that, although the Mission compiled a procurement plan for
the year under review, all procurements were planned to be
undertaken, using the direct procurement method, even for
instances, where other modes of procurement could be utilised. Use
of direct procurement method does not guarantee attainment of
economical prices for goods and services.
viii) I noted that the Missions’ performance was currently impacted by
several challenges, key among which included the following;
a) The Mission continues to face the problem of a restricted
structure that cannot afford it to have enough staff to cover all
UN agencies. The expanded role of the Mission, with the
assumption of the role of Chair of the Group of 77 and China
(G77+1), has left all Mission staff stretched and working long
hours, and yet the structure was not correspondingly adjusted.
b) The Mission currently has two Deputy Heads of Missions, with the
second one posted, without a corresponding additional budget
allocation.
c) The Mission suffered from the passing of LGBT law in Uganda, the
mission was attacked by the unknown persons and broke the
front door of Uganda House.
d) The high cost of living in New York also affects the operations of
the Mission.
x) I noted that funds to the tune of USD.31,773.25 (Equivalent to
UGX.117Mn) were irregularly diverted from the activities on which
they were budgeted and spent on other activities without seeking
and obtaining the necessary approvals.
Uganda Embassy in Development plan Unqualified i) I noted that the Mission had an approved revised budget of
the United States, implementation UGX.9.806Bn, all of which was warranted, representing a 100%
Washington Governance and performance.
security ii) Out of the total revenue of UGX.9.806Bn, a total of UGX.8.974Bn
Private sector (92%) was utilized by the close of the financial year. The balance
development of UGX.0.832Bn (8%) relates to the activities that were partially
implemented or were not implemented at all.
iii) I assessed the implementation of three (3) programmes that were
fully quantified with 28 activities worth UGX.9Bn and noted that out
of the 28 quantified activities assessed, 17 activities representing
61% were fully implemented while 7 activities representing 25%

506
 were partially implemented. Four (4) activities representing 14%
were not implemented at all.
iv) I noted that funds to the tune of USD.26,045.96 (Equivalent to
UGX.96Mn) were irregularly diverted from the activities on which
they were budgeted and spent on other activities without seeking
and obtaining the necessary approvals.
v) I noted that, although the Mission compiled a procurement plan for
the year under review, all procurements were planned to be
undertaken using the direct procurement method, even for
instances, where other modes of procurement could be utilised.
Use of direct procurement method does not guarantee attainment
of economical prices for goods and services.
vi) The Mission’s system of procuring air tickets is not streamlined,
given that in most cases, individual officers obtain air tickets from
travel agents and claim for refunds from the Mission. There is no
planned schedule of travels that could facilitate proper planning for
procurement of such air tickets, especially for travels that are well
known in good time, to facilitate the purchase of such tickets at
cheaper prices, through an approved provider with framework
contracts with the Mission.
vii) An inspection carried out at the two (2) chancery buildings
indicated that the buildings have not been repaired since my last
inspection, despite the fact that they are both in need of urgent
repairs. Both buildings appear to have severe structural problems
with cracks in the walls and floors, in several sections of the
buildings.
Uganda Embassy in Agro-industrialization Unqualified i) I noted that out of the approved revised budget of
Belgium, Brussels Community UGX.8,994,383,085 for the year, UGX.8,822,617,007 was warranted
mobilization and to the Embassy representing 98.1% performance.
mind-set change ii) Out of the warranted amount, the Embassy spent a total of
Governance and UGX.6,337,961,000 representing 71.8%. The unspent funds mainly
security related construction of the Official residence in the Embassy’s empty
Manufacturing plot which had not commenced as the Embassy awaited grant of
Tourism authority from the Commune to commence construction.
development iii) The unspent funds earmarked to commence construction of the
Official residence was deposited with a Notary and a third-party
account opened on behalf of the Embassy and a deposit of
Euros.707,203.18 made. Authorisation by PS/ST to open this account

507
 with a Notary was not provided at the time of the audit.
iv) I assessed the implementation of all four (4) outputs with a total of
twenty-eight (28) activities and expenditure worth UGX.6,337,961,000
and noted that none of the outputs were fully implemented. All the
four (4) outputs were partially implemented.
v) Out of the twenty-eight (28) activities, eleven (11) activities were fully
implemented, fourteen (14) activities were partially implemented, two
(2) activities were not implemented, and one (1) activity could not be
assessed as it lacked performance targets and indicators set during
planning.
vi) Contrary to the Comprehensive National Development Planning
Framework (CNDF) and specifically the Embassy’s 2020/21-2024/25
Strategic Plan which states that a comprehensive mid-term review of
the implementation of the Strategic Plan should be undertaken in the
first six months of the third year of the plan’s implementation, the
Embassy did not have a Mid-term review of the Strategic Plan by the
time of the audit.
Uganda Embassy in Agro-industrialization Unqualified i) The Embassy had arrears totaling to UGX.0.048Bn as at 30 th June
Algeria, Algiers Development plan 2024 that reduced by UGX.0.301Bn from the previous year’s balance
implementation of UGX.0.350Bn. Domestic arrears adversely hamper budget
Governance and performance in the subsequent year.
security ii) Twelve (12) local contract staff who were paid a total of
UGX.0.784Bn during the year were recruited without approval by the
Permanent Secretary of MoFA. However, as at the time of audit
(November 2024), contracts for five (5) staff were not yet renewed
and as a result, the Embassy operated without local contract staff
which affected the operations of the Embassy in achieving the
mandate objectives and resulted in work overload for the Home-
based staff.
iii) During the year under review, UGX.1.52Bn was spent by the
Embassy to pay for rent obligations for the Chancery and Officers’
residences. This cost was 39% of the total Embassy expenditure
which was relatively high.
iv) The Embassy made cash payments amounting to Euros.321,800
(UGX.1.22Bn) during the year under review. This contravened the
Public Finance Management Regulations and exposed the Embassy
funds to the risk of abuse.
v) The Embassy received UGX.0.197Bn from programmes for which the

508
 Embassy had no contribution as per the programme allocation in the
NDP-III.
vi) The Embassy secured 200 scholarships during the year however,
only 37 were taken up. Similarly, the government of Algiers gave
Uganda a milk export opportunity worth USD.500Mn but actual
trading and uptake of the business offer was yet to start at the time
of audit.
vii) The Embassy had a budget shortfall of UGX.0.19Bn. These funds
were meant for the procurement of the utility car, laptops and
Cameras for the Embassy which was not done.
viii) The Embassy did not utilise warrants amounting to UGX.0.392Bn.
The unutilized warrants were meant for part payment for the utility
car for the Embassy. This car was however not procured.
ix) I assessed the extent of implementation of activities for which funds
were availed and utilised and noted that out of the two (02) outputs
with 26 activities worth UGX.4.17Bn, the Embassy did not fully
quantify one output with 14 activities worth UGX.0.197Bn.
x) One output with 12 activities that were fully quantified worth
UGX.3.97Bn was partially implemented. Out of the 12 activities,
seven (7) activities were fully implemented, while five (5) activities
were not implemented at all. However, there were no activity costs
for each of the activities which limited my analysis.
xi) Supplementary expenditure totaling to UGX.0.28Bn did not meet the
supplementary expenditure criteria.
Uganda Embassy in Agro-industrialization Unqualified i) I noted that out of the approved revised budget of
Burundi, Bujumbura Community UGX.3,416,315,561 for the year, UGX.3,409,315,552 was warranted
mobilization and to the Embassy representing 99.8% performance.
mindset change ii) Out of the warranted amount, the Embassy spent a total of
Governance and UGX.3,403,240,994 representing 99.8%.
security iii) I assessed the implementation of all the four (4) outputs with a total
Manufacturing of eighteen (18) activities and expenditure worth UGX.3,403,240,994
Tourism and noted that one (1) output with one (1) activity and expenditure
development worth UGX.145,235,442 was fully implemented.
iv) Three (3) outputs with seventeen (17) activities worth
UGX.3,258,005,552 were partially implemented. Out of the seventeen
(17) activities, thirteen (13) activities were fully implemented while
two (2) activities were partially implemented, and two (2) activities
could not be assessed as they lacked performance targets and

509
 indicators.
v) Comparative analysis of annual budget for the FY 2023/2024 and the
strategic plan 2020/21-2024/25 forecasts indicated an overall variance
in the funding requirements of 41.42% for the year under review, to
implement activities to deliver on the strategic plan objectives.
vi) Contrary to the Comprehensive National Development Planning
Framework (CNDF) and specifically the Embassy’s 2020/21-2024/25
Strategic Plan which states that a comprehensive mid-term review of
the implementation of the Strategic Plan should be undertaken in the
first six months of the third year of the plan’s implementation, the
Embassy did not have a Mid-term review of the Strategic Plan by the
time of the audit.
vii) I noted that the Embassy experienced prolonged load shedding
(power cuts) that last several days in some cases and this was amidst
scarcity of fuel in the country.
Uganda Embassy in Agro-industrialization Unqualified i) The High Commission had budgeted to collect NTR of
Australia, Canberra Community UGX.0.177Bn, however no NTR was collected during the period.
mobilization and This was because the main revenue source, immigration services
mind-set change had been automated and the collections no longer done at the High
Governance and Commission.
security Tourism ii) During the FY 2023/24, the High Commission had an approved
development budget of UGX.5.906Bn that was all warranted and fully utilized,
representing a performance of 100%.
iii) Comparative analysis of annual budget for the FY 2023/24 and the
Strategic Plan 2020/21-2024/25 forecasts indicated that whereas
UGX.6.83Bn had been costed for the Strategic Plan, only
UGX.5.906Bn (86%) had been provided.
iv) The High Commission did not undertake a mid-term review of the
2020/21-2024/25 Strategic Plan by the time of the audit.
v) Audit established that the tenancy agreement for the Official
Residence of the Ambassador for the period 1st January to 31st
December 2024 was due to expire. Management of the Mission
indicated the possibility of purchase of the property to save on
rental costs.
vi) Two (2) outputs with 5 activities and expenditure worth
UGX.5.557Bn were assessed and audit established that all the 2
outputs with 5 activities and expenditure worth UGX.5.557Bn were
all fully implemented.

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Uganda Embassy in Agro-industrialization Unqualified viii) The Embassy had twelve local contract staff who were paid a total
China, Beijing Development plan of UGX.419.52Mn during the year but were recruited without
implementation approval by the Permanent Secretary of MoFA.
Governance and ix) The Embassy paid out UGX.584.5Mn to officials travelling from their
security Tourism duty station to undertake Embassy activities within China using
development travel abroad rates due to lack of clarity on which rates to use from
Ministry of Public Service.
x) Three (3) key mandate activities including Trade promotion
engagements/exhibitions, tourism familiarisation tours and sourcing
for training opportunities and scholarships were not prioritized.
xi) The Embassy had a total revised budget of UGX.5.38Bn which was
all warranted and utilised.
xii) I assessed four (04) outputs with 32 activities worth UGX.1.05Bn
and noted that one (01) output with 21 activities worth
UGX.257.7Mn were fully implemented while three (03) outputs with
11 activities worth UGX.795Mn were partially implemented.
xiii) The Embassy received UGX.594.5Mn from programmes for which
the Embassy has no contribution as per the programme allocation
in the NDP-III.
Uganda High Agro-industrialization Unqualified i) I noted that the Official Residence had taken long without being
Commission in South Community renovated and over the period, the extreme weather conditions
Africa, Pretoria mobilization and (winters and summers) have had negative effects on the condition
mindset change of the building. This was caused by insufficient funds being
Governance and allocated in its budget to undertake repair and maintenance works
security that are required to be undertaken annually on the official
Manufacturing residence of the Ambassador because of the climatic conditions.
Tourism ii) The Chancery building was acquired by the Government of Uganda
development in April 2001 with restrictions to being used for residential purposes
only. As a result, I noted that the following operational challenges
associated with using the building for office purposes:
iii) Limited or lack of office space for officers such as the immigration
and the Finance attachés while other officers use what used to be
bedrooms and the small boardroom in what used serve as the
sitting room.
iv) The clients are made sit outside in the compound under trees as
they wait to be served,
v) There is lack of spare to store items that are not frequently used
such as furniture. There is no store to keep all the old immigration

511
 documents and other stores and while some were being kept in a
garage at the Official Residence, others were kept outside behind
the boy’s quarters and covered with plastic sheets.
vi) I noted that the Missions staff structure is restricted to 1+3
because of being categorized under group “B” by Ministry of Public
Service. The numbers are insufficient to enable the Mission to
implement its mandate in the six countries of accreditation.
vii) I further noted that the budget allocated to the Mission for
implementation of the Mission mandate in the six countries was
very low. The associated challenges with low funding levels of only
UGX.4.185Bn allocated for the FY 2023/24 included;
a) No budget allocations for commercial and economic diplomacy
activities, as a result, the High Commission did not plan to
secure any business nor educational opportunities during the
period under review.
b) low wage bill that did not permit recruitment additional local
staff,
c) difficulties in meeting by high energy bills for heating/cooling
offices and residences, fuel for cars and generators,
d) the freeze on travel abroad restricted the movement/travels to
other countries of accreditation.
viii) Out of 26 activities planned, Management fully implemented
thirteen (14) activities, six (06) activities were partially
implemented, while three (02) activities remained unimplemented.
The remaining four (04) activities were not quantified therefore I
could not assess the level of their implementation.
Uganda Consulate in Agro-industrialization i) I observed that during the year, the Consulate had a total budget for
Kenya, Mombasa Governance and rent of UGX.0.520Bn which was all warranted and UGX.0.514Bn was
security spent, leading to underutilisation of UGX.6,426,743. This meant that
the rent for officers was over budgeted.
Tourism ii) I noted that the Consulate had a budget allocation of UGX.10.086Bn
development that was all received from one programme (Governance and
Security) to implement activities in other programmes to which the
Consulate has contribution as per the programme allocation in the
NDP-III. Non allocation of funds to all programmes to which the
Consulate contributes limits its ability to achieve the planned outputs
in all Programmes. This also led to allocation of funds for
Governance and Security to other activities in the other programmes.

512
 iii) The Consulate is entitled to VAT refunds from the Kenya revenue
Authority on procurements that include the VAT component because
it is tax exempt; However;
a) In a number of transactions where the Consulate made various
procurements, the consulate did claim for VAT refunds, citing
delays within the system.
b) Where the claims for VAT refunds were submitted to the Kenya
Revenue Authority, through the Uganda High Commission in
Nairobi, they had not been authorized by KRA to be refunded
by the suppliers.
Uganda Embassy in Agro-industrialization Unqualified i) The Embassy paid out UGX.1.07Bn to officials travelling from their
Luanda-Angola Development plan duty stations to undertake Embassy activities within Angola using
implementation travel abroad rates due to lack of clarity on which rates to use from
Governance and Ministry of Public Service.
security Tourism ii) Three (3) key mandate activities including cooperation agreements
development and identifying businesses of interest to Uganda were not
prioritized.
iii) The Embassy had a total budget of UGX.3Bn for the financial year
2023/24 which was all warranted and absorbed.
iv) I assessed the extent of implementation of activities for which
funds were availed and utilised. One (01) output with twelve (12)
activities worth UGX.2.42Bn was partially implemented. Out of 12
activities, the Embassy fully implemented nine (9) activities, one
(01) activity was partially implemented, while two (2) remained
unimplemented. Management did not provide the detailed costing
of each of the planned activities.
v) A review of the approved structure for the Embassy revealed that
out of the six (6) approved posts, only two (2) positions were filled,
leaving four (4) (67%) posts vacant which increased the workload
on the existing staff negatively impacting the operational efficiency
of the Embassy.

Uganda Embassy in Agro-industrialization Unqualified i) The Embassy over budgeted for contract staff salaries by
DRC, Kinshasa Governance and UGX.1.21Bn which exposes the funds to risk of diversion.
security ii) 16 local contract staff who were paid UGX.601Mn during the year
Manufacturing were recruited without approval by the Permanent Secretary of
MoFA.
iii) The Embassy paid out UGX.107.83Mn to Embassy officials travelling

513
 within the DRC using travel abroad rates due to lack of clarity on
which rates to use from Ministry of Public Service.
iv) The Embassy had a total budget of UGX.9.03Bn which was all
warranted and utilized.
v) I assessed a sample of four (04) outputs with 18 activities worth
UGX.9.03Bn and observed that one (01) output with four (04)
activities worth UGX.2.86Bn was fully implemented while three (03)
outputs worth UGX.6.17Bn were partiality implemented
Uganda Embassy in Agro-industrialization Unqualified i) The mission had a number of key unfunded priorities, including;
Egypt, Cairo Development plan a) Funding for Commercial and Economic Diplomacy (CED) in which
implementation the Mission failed to tap into tourism opportunities
Governance and b) Pending Second (2nd) Session of the Joint Permanent Commission
security (JPC) and Joint Ministerial Sessions making Ugandan diaspora
vulnerable to unfair terms of recruitment and employment due to
the pending MOU on Labour Externalization.
c) Failure to make visits to countries of accreditation which may strain
the bilateral relationships with the respective countries.
ii) The Embassy is required to move to the New Administrative Capital
(NAC), to improve its operational effectiveness given that all
Government Ministries including the Ministry of Foreign Affairs are
now located in the NAC.
iii) Lack of Title deeds for the 2 Mission properties; the chancery and
the official residence
iv) The Chancery and official residence buildings require renovations to
suite its purpose.
v) I noted that 07 outputs were not quantified making it impossible to
assess the level of implementation of the activities and outputs
themselves
vi) The Mission had total warrants of UGX.4.107Bn out of which
UGX.3.981Bn was absorbed, leaving UGX.126Mn unabsorbed
vii) I noted that the Mission received supplementary funding of
UGX.1.064Bn during the year without request from the Accounting
Officer, contrary to the PFMA
Uganda Embassy in Agro-industrialization Unqualified i) USD.3.651Mn had accumulated as outstanding arrears, being
Ethiopia, Addis Development plan Uganda’s contribution to the African Union. The non-settlement of
Ababa implementation the country membership dues has led to Uganda being placed
Governance and under cautionary sanctions.
security ii) Although the Mission was provided a capital budget of

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 UGX.21.94Bn for construction of the Chancery and Official
residence in YEKA Sub-City Woreda 05 House No. 046 along
Fikremariam Aba Techan Street - Addis Ababa. By the time of
reporting, the consultant had not yet come up with detailed designs
for construction of the Chancery and Official Residence. Any delays
towards start of construction implies continued payment of high
rental costs for the Chancery and Official Residence, currently at
USD.10,200 and USD.6,000 respectively.
iii) Out of the budgeted NTR of UGX.0.182Bn, only UGX.0.039Bn was
collected, implying a performance of 21.73%.
iv) During the FY 2023/24, the Embassy had an approved budget of
UGX.4.023Bn that was all warranted and fully utilized.
v) Out of the three (3) budget programme outputs with expenditure
worth UGX.4.023Bn for 32 activities, ten (10) activities were fully
implemented, nineteen (19) partially implemented and three (3)
were not implemented.
vi) Comparative analysis of annual budget for the FY 2023/24 and the
Strategic Plan 2020/21-2024/25 forecasts indicated that whereas
UGX.15.35Bn had been costed for the strategic plan, only
UGX.4.022Bn (73.8%) was provided as funding to implement
activities to deliver on the strategic plan objectives.
vii) The Mission did not undertake a mid-term review of the 2020/21-
2024/25 Strategic Plan by the time of the audit.
Uganda Embassy in Community Unqualified i) Although UGX.798.2Mn was collected as NTR during the year, only
London mobilization and UGX.752.9Mn was transferred to UCF by the close of the financial
mindset change year, implying a balance of UGX.45.3Mn was not transferred,
Governance and contrary to Treasury Instructions.
security ii) The High Commission reallocated funds amounting to £584,049
Tourism (equivalent to UGX.2,734,809,442.5), contrary to the PFMA.
developmentS iii) Management borrowed an amount of £42,500 from the NTR
Account to finance Mission activities contrary to guidance from
MoFPED. Out of £42,500, an amount of £18,000 was refunded,
leaving £24,500 outstanding by the end of the financial year.
iv) £13,103 (Equivalent UGX.61,354,798) in security deposits has not
been refunded despite that some of the occupants have either left
the Mission or transferred to other accommodation.
v) The High Commission had an initial approved budget of
UGX.8.001Bn and a supplementary of UGX.2.015Bn resulting in a

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 total of UGX.10.017Bn for the FY 2023/24 which was all warranted.
vi) Although the Mission budgeted to collect NTR of UGX.3.16Bn
during the year under review, UGX.798,163,986 was collected, a
performance of 25% of the planned target.
vii) Out of the total funds warranted of UGX.10.017Bn received during
the financial year, the Mission spent UGX.9.964Bn (99.5%),
resulting in an unspent balance of UGX.0.053Bn.
viii) Ten (10) activities were fully implemented while thirty-six (36)
activities were partially implemented.
ix) Supplementary funding of UGX.1.203Bn for governance and
security did not meet the supplementary expenditure criteria as the
supplementary expenditure was avoidable, foreseeable and
absorbable.
x) The Official Residence, Chancery and Commercial property at
Wardour Street had been recommended for renovation and
remodelling. At the time of audit only the Official Residence had
been refurbished.
Uganda Embassy in Community Unqualified i) The Mission mischarged Euros 387,819.88 (equivalent to
Paris mobilization and UGX.1.537Bn) during the year from the approved expenditure lines.
mindset change Of this UGX.41Mn was made from contract staff salaries without
Governance and seeking and obtaining the necessary approvals.
security ii) The incomplete works at the Chancery need to be finalized.
Tourism iii) The Mission did not transfer NTR of UGX.159.2Mn that was
development collected during the year to the UCF, contrary to section 29(2) of
the PFMA.
iv) I noted that 04 outputs were not quantified making it impossible to
assess the level of implementation of the activities and outputs
themselves.
v) The Mission had total warrants of UGX.7.788Bn out of which
UGX.7.464Bn was utilized, leading to under absorption of
UGX.0.324Bn. This negatively affected the implementation and
achievement of the expected services.
vi) The Mission received supplementary funding amounting to
UGX.168.5Mn, which was not requested for by the Accounting
Officer, contrary to the PFMR.
Uganda Embassy in Agro-industrialization Unqualified i) I noted that funds to the tune of EUR 18,981.39 (UGX.72.9Mn)
Germany, Berlin Community were irregularly diverted from the activities on which they were
mobilization and budgeted and spent on other activities without seeking and

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 mindset change obtaining the necessary approvals.
Development plan ii) The embassy had unutilized warrants of UGX 137,630,601, which
implementation were attributed to delayed recruitment of staff and tax refunds.
Governance and iii) The Mission received UGX.191.9Mn (2.3%) from programmes for
security which it had no contribution in the NDP-III programme allocation.
Private sector iv) whereas the Embassy approved NTR budget was UGX. 50,329,856,
development the actual collection was only UGX.32,973,245 resulting into a
Tourism variance of UGX. 17,356,611 (34%).
development v) The annual expenditure of Euros.220,033.2 on rent for the
chancery and official residence constitute a major out flow of
foreign exchange which could be mitigated by acquisition of
premises.
vi) During the year the Embassy procured ICT equipment worth UGX.
26,032,363 comprising Desktop computers and laptops which were
however not engraved.
vii) Owing to discrepancies between the approved and actual staff
structure there is monthly over expenditure of USD.4,497.7 on
foreign service allowances which translates into annual over
expenditure of USD 53,972.4.
Uganda Embassy in Agro industrialization Unqualified i) Eight (8) local contract staff who were paid a total of
Iran, Tehran Development plan UGX.308.52Mn during the year were recruited without approval by
implementation the Permanent Secretary of MoFA.
Governance and ii) The Embassy paid out UGX.88.16Mn to officials travelling from their
security duty stations to undertake Embassy activities within Iran using
Human capital travel abroad rates due to lack of clarity on which rates to use from
development MoFA.
Tourism iii) Three (3) key mandate activities including; sourcing employment
development opportunities for the youth and lobbying for support from partners
for placement at International Organizations were not prioritized.
iv) Out of the revised budget of UGX.4.21Bn, total warrants for the
year totalled to UGX.4.15Bn, resulting in warrant performance of
98%. Out of this UGX.3.79Bn (91.3%) was absorbed. This affected
the implementation of planned activities.
v) I assessed a sample of two (02) outputs with five (05) activities
worth UGX.0.69Bn and noted that these were all fully implemented.
vi) UGX.27.5Mn was received from programmes for which the
Embassy has no contribution as per the programme allocation in
the NDP-III.

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Uganda Embassy in Agro-industrialization Unqualified i) Unbudgeted non-tax revenue of UGX.8.9Mn was realized, implying
Italy, Rome Community the possibility of under assessment of revenue sources.
mobilization and ii) The Mission incurs Euros 168,000 annually on rent for the chancery
mindset change and official residence implying a major outflow of foreign exchange
Development plan which could be mitigated if it acquired own premises.
implementation iii) Lack of a disposal plan resulted in non-disposal of an assortment of
Governance and 55 items valued at Euros 31,391.36 and this may culminate in
security Human further diminution in the value of the items.
capital development iv) The Mission had unutilized warrants of UGX.248.2Mn due to failure
Manufacturing to identify suitable premises for the official residence as well as
Tourism recruitment of local staff.
development v) Euros 5,839.45 was mischarged on some items contrary to the
intentions of the appropriating authority.
Uganda Consulate in Agro-industrialization Unqualified i) The Consulate irregularly mischarged funds within various items
China, Guangzhou Governance and amounting to USD 24,898.96 (equivalent to UGX.93.7Mn).
security ii) I noted that CNY21,933.71 was claimed as a refund for medical
Manufacturing insurance from the service provider. However, by the end of the
Mineral development year, only CNY8,000 had been refunded leaving a balance of
Tourism CNY13,933.71.
development iii) The Consulate had an initial approved budget of UGX.11.2Bn and a
supplementary of UGX.0.31Bn resulting in a total of UGX.11.5Bn for
the FY 2023/24 which was all warranted.
iv) I noted that although the Consulate’s budget was to collect NTR of
UGX.2Mn during the year under review. However, UGX.6.7Mn was
collected, implying that the NTR collected represented a
performance of 235% of the planned target.
v) Out of the total funds warranted of UGX.11.51Billion received during
the financial year, the Consulate spent UGX.7.524Bn, resulting in an
unspent balance of UGX.3.987Bn representing an absorption level of
65%.
vi) From a total of 21 outputs worth UGX.11.5Bn assessed, eighteen
(18) outputs were fully implemented while three (3) outputs were
partially implemented.
vii) The supplementary funding of UGX.46Mn for governance and
security did not meet the supplementary expenditure criteria as the
supplementary expenditure was avoidable, foreseeable and
absorbable.
viii) I noted delays in Construction of Chancery and Official residence

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 since the financial year 2016/17 when the consultant was engaged.

Uganda Embassy in Community Unqualified i) I noted that UGX.0.163Bn was paid out to the High Commission
Malaysia, Kuala mobilization and officials travelling from their duty station to undertake Mission
Lumpur mindset change activities within the host country using rates for travel abroad to
Governance and cater for their allowances due to lack of clarity on which rates to
security use in such circumstances.
Manufacturing ii) The High Commission did not effectively execute its mandate in
Tourism education where 20 Scholarships were secured for Ugandans out of
development the planned 30 for the year.
iii) I noted increased rate of detention cases of Ugandans in Malaysia
and other areas of accreditation. 36 Ugandans were repatriated
while 92 were assisted to travel back home from detention centers
however, the repatriation exercise was not budgeted for.
iv) The High Commission had an approved staff structure of 5 home-
based staff however, only four (4) positions were filled leaving one
(1) position vacant. However, I noted that the High Commission
has a Minister Councillor and Head of the Chancery (FSO II scale
UISE), a position that is not provided for in the structure.
v) I noted that the current staffing structure and levels are inadequate
to effectively execute the High Commission’s mandate in
consideration of the areas accredited to the same.
vi) The High Commission had a revised budget of UGX.3.49Bn that
was all warranted and utilised.
vii) A total of three (03) outputs with 23 activities worth UGX.3.492Bn
were assessed and I noted that two (02) outputs with 18 activities
and expenditure worth UGX.1.76Bn were fully implemented while
One (01) output with five (05) activities worth UGX.1.73Bn was
partially implemented. Out of the five (05) activities, the High
Commission fully implemented three (03) activities worth
UGX.1.00Bn while two (02) activities worth UGX.0.733Bn were
partially implemented.
viii) The High Commission failed to participate/honour invitations in
various programs under Commercial diplomacy due to limited
budget/resource which leaves a lot of untapped potential and
denies opportunities to Uganda.
ix) Thirty-six (36) Ugandans were repatriated or assisted to return
home while 92 were assisted to travel back home from Detention

519
 centers. Meanwhile, the repatriations were not budgeted for.
x) Supplementary funding totalling to UGX.114Mn was not requested
for by the Accounting Officer.
xi) Expenditure totalling to UGX.27Mn was irregularly diverted from the
activities on which it was budgeted and spent on other activities
without seeking and obtaining the necessary approvals.

Uganda Embassy in Community Unqualified i) The Embassy recruited 13 local contract staff who were paid a total
Havana, Cuba mobilization and of UGX.429.33Mn during the year without approval by the
mindset change Permanent Secretary of MoFA.
Governance and ii) The Head of Mission rescinded the appointment of a local contract
security staff without approval by the PS of MoFA.
Manufacturing iii) The Embassy recruited a local contract staff as a translator and
Tourism later re-designated him to an office attendant however, the local
development contract staff was yet to hand over the diplomatic card.
iv) The Embassy paid out UGX.210.67Mn to officials travelling from
their duty stations to undertake Embassy activities within Cuba
using travel abroad rates due to lack of clarity on which rates to
use from Ministry of Public Service.
v) One (01) key mandate activity of sourcing for education
opportunities and scholarships was not prioritized.
vi) Out of the approved budget of UGX.3Bn, total warrants for the year
totalled to UGX.3.29Bn resulting in warrant performance of 110%.
The extra UGX.292Mn warranted was unspent balances from
financial year 2022-2023. Out of this UGX.2.96Bn (90%) was
absorbed. This affected implementation of planned activities.
vii) I assessed one (01) output with 10 activities worth UGX.2.96Bn.
Out of ten (10) activities, the entity fully implemented seven (07)
activities while three (03) activities were partially implemented.
Uganda Embassy in Agro-industrialization Unqualified i) I noted several cases of distressed Ugandans in Qatar. The number of
Qatar, Doha Development plan cases totalled to 1,520 in the financial year ended 30th June 2024.
implementation Further examination of the cases revealed that this is mainly due to
Governance and Ugandans who had sought employment in Qatar, but;
security
a) their employment efforts turned out to have been done through

520
 irregular processes,

b) did not have readily available employment,

c) did not meet the requirements of the Qatar employers,

d) were not properly screened to confirm whether they meet the

employment criteria or

e) the individuals got involved in illegal activities.

ii) Whereas the Government of Uganda signed an agreement with the

Government of the State of Qatar concerning the regulation of
employment of workers from Uganda to Qatar, the Ministry of Gender,
Labour and Social Development is yet to fully enforce the terms of the
agreement between the two countries in the proper recruitment,
screening and selection of workers that travel to the State of Qatar.

iii) A review of the approved Mission structure and the number of staff on
the Mission payroll revealed that the Mission had staff not provided for
in the approved structure. The Mission’s current staffing position is
therefore not aligned to the approved structure.

iv) The Mission performance reports showed that the Mission had
outperformed on most of its planned activities. However, the audit
review revealed that the Mission did not have an adequate system of
performance recording and, monitoring and evaluation to properly
support the performance reported. The inadequate recording and
monitoring system hinders proper evaluation of the Mission
performance and identification of areas for improvement.

v) The Mission received a total of UGX.435,060,055 as external

assistance from the Government of Qatar, to facilitate payment for
rent for the Chancery and the Official residence of the Head of
Mission. The amount was spent without inclusion in the original
Mission work plan and budget or seeking for revision of its original
budget.
Uganda Embassy in Agro-industrialization Unqualified i) The Embassy over-budgeted for contract staff salaries by
Russia, Moscow Community UGX.107.7Mn. Similarly, the management over budgeted for rent
mobilization and by UGX.30Mn. This exposes the funds to diversions.
mindset change ii) Ten (10) local contract staff who were paid UGX.0.54Bn during the

521
 Governance and year were recruited without approval of the Permanent Secretary of
security MoFA.
Human capital iii) UGX.55Mn was paid as Foreign Service Allowance on account codes
development not approved for FSA expenditure which resulted in mischarges
Innovation, iv) UGX.26.01Mn was irregularly diverted from the activities on which
technology they were budgeted and used to pay for other activities.
development and v) UGX.0.17Bn was paid to Embassy officials travelling within Russia
transfer using rates for travel abroad due to lack of clarity from MoPS on
Manufacturing which rates to apply.
Tourism vi) The Embassy had a total revised budget of UGX.4.97Bn which was
development all warranted and utilized.
vii) Out of eight (08) outputs with (30) activities worth UGX.4.97Bn
sampled, seven (07) outputs worth UGX.0.98Bn were fully
implemented while One (01) output worth UGX.3.99Bn was
partially implemented.
viii) UGX.0.48Bn was received from the programmes for which the
Embassy has no contribution as per the programme allocation in
the NDP-III.
ix) Supplementary expenditure totalling to UGX.1.06Bn did not meet
the supplementary expenditure criteria.
Uganda Embassy in Governance and Unqualified i) The Embassy under budgeted for contract staff salaries by
Somalia, Mogadishu security UGX.77.71Mn. As a result, UGX.34.58Mn meant for contract staff
Manufacturing salaries was charged on other codes not approved for contract staff
Private sector salaries.
development ii) The Embassy paid UGX.25.88Mn to Embassy officials travelling
from their duty station to undertake Embassy activities within
Somalia using rates for travel abroad to cater for their allowances.
iii) The Embassy had not planned for any business and educational
opportunities for the period under review implying that no
resources were provided in the budget for the activity.
iv) The Embassy had a total budget of UGX.6.99Bn which was all
warranted and utilized.
v) Two (02) outputs with five (05) activities and expenditure worth
UGX.2.89Bn were fully implemented while One (01) output with
three (03) activities worth UGX.214.25Mn was partially
implemented. Out of three (03) activities, the Embassy fully
implemented two (02) activities while one (01) activity remained
unimplemented.

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 vi) Supplementary expenditure totalling to UGX.1.49Bn did not meet
the supplementary expenditure criteria.
vii) The Embassy received UGX.1.19Bn from programmes for which the
entity had no contribution as per the programme allocation in the
NDP-III.
Uganda Embassy in Agro-industrialization Unqualified i) UGX.0.49Bn paid as Foreign Service Allowance to the Embassy staff
South Sudan, Juba Community was charged on codes not approved for Foreign Service Allowance
mobilization and (FSA) expenditure hence a mischarge
mindset change ii) 10 local contract staff who are entitled to annual pay of
Development plan UGX.381.48Mn were recruited without approval by the Permanent
implementation Secretary of MoFA.
Governance and iii) The Embassy management over budgeted for contract staff salaries
security by UGX.41Mn while on the other hand the Embassy under
Manufacturing budgeted for rent by UGX.306Mn.
Private sector iv) The Embassy management had not planned for any business and
development educational opportunities and as such, no opportunities were
Tourism secured during the year.
development v) The Embassy had a revised budget of UGX.4.67Bn out of which
UGX.4.59Bn was warranted resulting in a shortfall of UGX.78.99Mn.
Out of the total warrants of UGX.4.59Bn, UGX.4.574Bn was utilized
by the close of the financial year.
vi) Out of three (3) outputs worth UGX.4.291Bn reviewed, one output
worth UGX.4.063Bn was not appropriately quantified. The balance
of the two (2) quantified outputs with four (4) activities worth
UGX.227Mn were all fully implemented.
vii) UGX.531Mn was received from the programmes for which the
Embassy has no contribution as per the programme allocation in
the NDP-III
Uganda Embassy in Governance and Unqualified vii) Seventeen (17) local contract staff were recruited without approval
Sudan, Khartoum security by the PS-MoFA contrary to the Public Service Standing Orders
Agro-industrialization Guidelines.
Development plan viii) The Embassy under budgeted for rent by UGX.41Mn thereby
implementation exposing the entity to diversion of funds.
Governance and ix) The Embassy paid out UGX.111.94Mn to officials travelling from
security their duty station to undertake embassy activities within Sudan
Manufacturing using rates for travel abroad due to lack of clarity on which rates to
use from MoPS.
x) The Embassy had an approved budget of UGX.4.65Bn which was all

523
 warranted and utilised.
xi) The two (02) outputs with 12 activities worth UGX.4.65Bn that
were reviewed were all partially implemented. Two (2) of the
activities were not appropriately costed.
xii) Out of 10 activities that were costed, the Embassy fully
implemented eight (8) activities worth UGX.4.42Bn while two (02)
activities worth UGX.0.226Bn were partially implemented.
Uganda Embassy in Governance and Unqualified i) The FSA rates paid to the FSOs have remained unchanged for over
Switzerland, Geneva security a decade, and yet the cost of living keeps increasing. This implies
Agro-industrialization increased prices of essential items/services, which affects the
Development plan financial well-being and standard of living of FSOs.
implementation ii) While the Mission’s approved staff structure of (1+5) positions, was
Governance and filled, the available number of FSOs was insufficient to effectively
security execute Uganda’s diplomatic responsibilities. The country needs
Manufacturing effective representation at the United Nations itself, 40
International Organisations and 250 Non-Governmental
Organizations, besides the bilateral accreditation to Switzerland.
iii) The Mission collected NTR of UGX.10.3Mn, however the outturn
could not be assessed against the budget, given that NTR was not
included in the budget of the FY.
iv) The revised approved budget of UGX.10.203Bn was all warranted.
v) Out of the total GoU receipts of UGX.10.203Bn, the Mission spent
UGX.9.640Bn (94.5%), leaving a balance of UGX.0.563Bn.
vi) From the balance, UGX.0.558Bn (99%) was exchange loss incurred
in the period under review. This implies that the Mission absorbed
all funds to implement planned activities.
vii) The Mission outputs were not supported by activity costing and
budgets (quantification) The extent of implementation of outputs
and the associated activities could not be undertaken.
Uganda High Agro-industrialization Unqualified i) The Embassy had a total of 12 local staff who were recruited without
Commission in India, Development plan approval by the Permanent Secretary of MoFA and paid a total of
New Delhi implementation USD.4,890 during the year.
Governance and ii) The Embassy’s existing staff structure of only six (06) staff positions
security (home based) is inadequate to match the high demand for diplomatic
engagements and activities in the whole scope of the High
Commission’s responsibility and Jurisdiction.
iii) The High Commission spent UGX.409.50Mn on medical expenses for
staff. These payments were made directly to the staff of the High

524
 Commission as refunds for medical bills instead of medical facilities.
This was due to lack of medical insurance cover with a medical
insurance provider.
iv) The Embassy management paid out UGX.239.97Mn to the Embassy
officials travelling from their duty stations to undertake mission
activities within India using rates for travel abroad to cater for their
allowances.
v) The Embassy did not utilize warrants worth UGX.0.48Bn that were
meant for payment of contract staff salaries.
vi) I assessed the extent of implementation of activities for which funds
were availed and utilized. One (01) output with nine (09) activities
worth UGX.5.86Bn was assessed and was fully implemented.
vii) The embassy had a total budget of UGX.4.65Bn out of which
UGX.1.87Bn (40%) was received from programmes for which the
embassies have no contribution as per the programme allocation in
the NDP III.
Uganda Embassy in Agro-industrialization Unqualified i) The Embassy had a total 10 local staff who were recruited without
United Arab Community approval by the Permanent Secretary of MoFA and paid a total of
Emirates, Abu Dhabi mobilization and UGX.1,136,711,181 during the year.
mindset change ii) I assessed the extent of implementation of activities for which funds
Development plan were availed and utilized. One (01) output with nine (09) activities
implementation worth UGX.5.86Bn was assessed and was fully implemented.
Governance and iii) The embassy had a total budget of UGX.9.28Bn out of which
security UGX.3.32Bn (36%) was received from programmes for which the
embassies have no contribution as per the programme allocation in
the NDP-III.
Bank of Uganda Development Plan Unqualified There were no reportable issues
Implementation
Uganda Free Zones Private sector Unqualified i) As a result of the RAPEX policy shift, UFZA ceased operations
Authority (UFZA) development effective 30th September as its operations have been merged into
the Uganda Free Zones and Exports Promotions Authority.
ii) The Authority had total approved warrants of UGX.11.579 Bn out of
which, warrants worth UGX.11.095 Bn had been utilized by the
close of the financial year leaving a balance of UGX.0.484Bn
unutilised.
iii) It was not noted that out of the total 6 outputs 1 output costed at
UGX.0.53Bn with two activities was fully implemented while 5
outputs with 22 activities worth 6.8919 Bn were partially

525
 implemented.
iv) UFZA’s Budget Framework Paper (BFP) and Annual Budget for the
financial year under review, was 73.3% compliant in alignment with
NDP III outputs.
v) The Authority’s costing of the operational plan and Budget for the
year under review was below the strategic plan costing for the FY
2023/24 by UGX.366.768Bn representing 96.94% variance.
Financial Governance and Unqualified i) The entity’s approved budget was UGX.31.193Bn, all of which was
Intelligence security warranted and utilized.
Authority (FIA) ii) I assessed 8 outputs with 41 activities worth UGX.31.19Bn and
observed that two (2) activities with funding of UGX.0.303Bn were
partially implemented, while three (3) activities with funding of
UGX.0.294Bn remained unimplemented.
Uganda Property Public Sector Unqualified i) It was noted that the entity property rent debtors increased by 48%
Holdings Limited Transformation from UGX.4.345Bn in FY22/23 to UGX.6.475Bn in the Financial Year
(UPHL) 2023/24. There is no evidence that the entity had put in place
recovery measures indicating a high risk of bad debts, potentially
impacting the entity's liquidity.
ii) The Company reported payables of UGX.1.895Bn. I noted an
increase by UGX.1.345Bn (245%) from 550,143,044 registered in FY
2022/23. Outstanding payables may disrupt the operations of the
service providers and attract litigation and associated costs to the
entity.
iii) The Company had an operating margin of 15.5%, which is below the
19.9% realized in the previous year 2022/2023. The observed
performance was attributed to increase in operating expenses during
the period under review of UGX.8.565Bn from UGX.8.077Bn from
previous year.
iv) During audit it was noted that the entity awarded a contract worth
UGX.130,036,000 for consultancy services for construction of
warehouse/office at Bugolobi, which experienced delays in
implementation.
v) A comparison of the entity’s strategic and annual work plans for the
last three (3) years revealed that the entity had not adequately
executed its mandate.
vi) The entity had an approved budget of UGX. 14.162Bn, out of which
UGX.13.386Bn (94.5%) was received resulting in a shortfall of UGX.
0.775Bn which affected full implementation of planned activities.

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Uganda Wildlife Tourism Unqualified i) The Authority had a total of UGX23.18Bn as receivables at the end of
Authority (UWA) Development the financial year. Accumulation of payables results from weaknesses
in the payables management policy, which ties the Authority funds
that would be used to implement activities to achieve its objectives
into unsettled claims.
ii) The Authority had outstanding payables of UGX.48.25Bn at the year
end. This creates a risk of costly litigation as well as payment of
penalties and fines for delayed settlement.
iii) There is an increased backlog of cases annually which may
overstretch the entity’s budget if not well managed.
iv) I observed inadequacy in the regulation and monitoring of
concessionaires, leading to weak compliance and enforcement.
v) UWA did not collect UGX.3.351Bn from Concessionaires.
vi) Management did not have a comprehensive, centralized database for
Concessionaires and key details on the signed concessions such as
contract terms, concessionaire performance, revenue generation,
and compliance status are scattered across multiple departments
leading to inefficiencies in tracking and monitoring concessions.
vii) It was observed that the Reservation staff whose responsibility is
marketing activities at UWA, also handle financial management
relating to reservations office. There are no distinct roles of financial
management as are prescribed in the Financial Procedures Manual
2016.
viii) Outstanding revenue share of 20% that was meant to be disbursed
to the surrounding communities in National parks increased from
UGX.7.444Bn to UGX.16.602Bn which was undisbursed as at 30th-
June -2024 indicting non-disbursements.
ix) A comparison of the entity’s strategic and annual work plans for the
last three (3) years with the mandate as stipulated in relevant laws
revealed that the entity had not adequately executed its mandate.
x) UWA is still experiencing challenges in implementing planned and
budgeted outputs /activities, which affects service delivery. In the
circumstances planned procurements of UGX3.94Bn were not fully
implemented and supplies not delivered as at 30th June 2024.
Uganda Wildlife Human Capital Unqualified i) The Institute lacks an information technology governance
Research and Development framework/policy despite the heavy investment in information
Training Institute technology infrastructure.
(UWRTI) ii) The Institute did not plan and budget for one of its key mandate of

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 providing consultancy and specialized technical services in
conservation and sustainable development of wildlife resources.
iii) Assessment of the extent of implementation of activities for which
funds were availed and utilised revealed that for a total of 4 outputs
with 42 activities worth UGX.5.48Bn, thirty-eight (38) activities worth
UGX.4.54Bn were fully implemented while Four (4) activities worth
UGX. 0.15Bn were not implemented at all.
Uganda Private Sector Unqualified i) The Programme Reform Coordination Unit (RCU) did not assign
Intergovernmental Development performance measures or indicators to 144 out of 225 activities.
Fiscal Transfers ii) Activities valued at UGX.29.64Bn were neither supported by
Program (UgIFT) quantified performance indicators nor were linked to any indicator.
iii) To date, the World Bank has disbursed to the Consolidated Fund
USD. 0.32Bn. (UGX. 1.18 Tn.) towards the UgIFT Programme
representing a 65% Performance.
iv) UgIFT Management has not yet implemented the National
Integrated Food and Agricultural Management Information System
(NIFAMIS) UGX. 4.01 Bn.
v) Only 32% of institutions including primary schools, secondary
schools, and certification-awarding institutions are actively using
the Teacher Effectiveness and Learner Achievement (TELA),
despite the 100% rollout of phase one of the solution.
vi) The rollout of Teacher Effectiveness and Learner Achievement
system in Private schools revealed that private schools were not yet
covered in the rollout of the project, with only 127 private schools
and institutions (0.64%) out of the planned 20,000 schools and
institutions.
Uganda Industrial Innovation, Unqualified i) The Institute procured supplies and services worth UGX.2.53Bn
Research Institute Technology Transfer using direct and restricted procurement methods without any
(UIRI) and Development justification.
ii) UIRI did not maintain a contract register in the prescribed format
but instead recorded procurement contracts in a counter book with
incomplete information.
iii) Out of 410 staff job positions, only 376 positions were filled while
34 were not filled hence an 8.3% staffing gap.
iv) The Institute had not implemented four (4) of its key mandate
activities affecting the achievement of the associated service
delivery benefits.
v) Out of the Institute’s approved budget of UGX.33.26Bn, only

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 UGX.30.82Bn was warranted resulting in a shortfall of UGX.2.44Bn
representing 93% performance.
vi) A sum of UGX.0.607Bn of the available funds were not utilised by
the entity. The funds were meant for recruitment of contract staff
which recruitment was ongoing at the time of audit.
vii) Five (5) outputs with 25 activities worth UGX.8.631Bn were partially
implemented. Out of the 25 activities, the entity fully implemented
20 activities worth UGX.5.898Bn, while five (5) activities worth
UGX.2.733Bn were partially implemented.
viii) UIRI did not collect NTR from 12 companies (Incubatees) that had
signed MoUs with terms that required the institute to invoice and
eventually collect NTR.
ix) The Institute had no clear policy guideline for the identification,
evaluation, management and monitoring of the different incubation
applicants and successful incubatees.
x) I undertook a Special audit on the expenditure of Nyakihanga
Pineapple Fruit factory in Ntungamo district and a separate report
was issued.
Uganda Heart Human capital Unqualified i) Whereas the entity’s domestic arrears at the beginning of the
Institute (UHI) development financial year stood at UGX.2.591Bn, the approved budget
estimates for domestic arrears was only UGX.0.073Bn. Whereas the
required funds for essential medicines was projected at UGX.7.3Bn
per annum, the annual allocation for medicines for UHI for the last
3 financial years has been constant at UGX.2.181Bn. I noted that
this had been increased to UGX.3.681Bn in the FY 2024/25 but still
remains inadequate.
ii) Most of the medicines delivered to the Institute had a short shelf
life ranging from 64 to 190 days.
iii) On several occasions, there were drug stock outs ranging between
37 to 417 days.
iv) I reviewed the delivery notes for 5 sampled procurements and
noted delays ranging from 2 to 13 weeks after the contractually
agreed delivery.
v) Whereas the entity’s costed maintenance plan for medical
equipment had a projected annual budget of UGX.1.6Bn, only
UGX.0.850Bn was approved and released during the year for
maintenance of machinery other than transport equipment.
However, out of UGX.0.850Bn, only UGX.0.259Bn (30%) was spent

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 on maintenance of medical equipment.
vi) Forty-three (43) items of equipment were not being utilized.
vii) I reviewed the mandate of the Institute and noted it had not set up
regional heart centers. This mandate had not been prioritized in the
entity’s annual budgets for the years under review.
viii) The entity had an approved budget of UGX.76.69Bn out of which
UGX.57.40Bn (75%) was warranted resulting into a shortfall of
UGX.19.29Bn.
ix) UGX.57.040Bn of the total warrants had been utilised by the close
of the financial year. The balance of UGX.0.361Bn was meant for
activities like connection of water, drainage and sewerage lines at
the project site, procurement of heavy ICT hardware, procurement
of light ICT hardware which were either partially or not
implemented.
x) There were delays in implementation of the UHI infrastructure
project; the commencement of civil works has delayed by 1 year
and 9 months, as the construction was initially planned to start in
January 2023 and end in December 2025. At the time of audit,
(October 2024) the project effectiveness had been declared but
works had not yet commenced.
xi) There were delays in 36 out of the sampled 45 procurements for
medical sundries ranging from 4 to 198 days with an average of 62
days.
xii) I undertook a special audit of the pension payroll for which a
separate report was issued.
Uganda High Community Unqualified i) The Mission had outstanding arrears amounting to UGX.0.656Bn
Commission in mobilization and arising from unpaid city property taxes and interest thereon.
Canada, Ottawa mindset change ii) The High Commission had a total budget of UGX.11.39Bn out of
Development plan which UGX.0.28Bn (2.4%) was received from programmes for
implementation which the High Commission has no contribution as per the
Governance and programme allocation in the NDP-III.
security iii) A total of 10 local contract staff who were paid a total of
UGX.1.14Bn during the year were recruited without approval by the
Permanent Secretary of MoFA contrary to the Public Service
Standing Orders.
iv) I noted irregularities in the recruitment of 10 local contract staff
which included lack of acceptance letters, irregular appointment of
a local contract staff with Job descriptions of a home-based staff,

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 and irregular terms of employment in the awarded contracts.
v) I observed that whereas the planned date of the start of
construction was 4th August 2023, a review of the contract
management records revealed that the actual works started on 3rd
October 2023, which was a delay of two (2) months.
vi) A former staff of the High Commission who was recalled had not
left the High Commission more than 30 days after recall contrary to
Paragraph H-b (8) of the Public Service Standing Orders, 2021. In
addition, the officer left unpaid personal utility and maintenance
expenses worth CAD.149,075 which were settled by the High
Commission.
vii) At the time of recall of the above staff, the tenancy still had 17
months pending on the lease, a period which was due given the
terms in the tenancy agreement. At the time of inspection, the
Landlord was demanding for payment for the full lease period, in
accordance with the terms of the agreement.
viii) The High Commission operated without a capital expenditure
budget during the financial year, yet the High Commission needs
capital budgets for critical activities including renovations of the
existing residences, procurement of furniture and motor-vehicles.
ix) The High Commission paid out UGX.255.52Mn to High Commission
officials travelling from their duty stations to undertake official
activities within Canada using rates for travel abroad to cater for
their allowances due to lack of clarity from the PS-MOFA on which
rates to use in the circumstances.
x) The High Commission failed to secure the planned
education/scholarships and business opportunities which denies
citizens and the country in general, opportunities for economic
growth.
xi) I assessed the extent of implementation of activities for which
funds were availed and utilized.
xii) Four (04) outputs with 27 activities worth UGX.11.39Bn were
assessed and I noted that One (01) output with one (01) activity
worth UGX.0.165Bn was fully implemented while three (03) outputs
with 26 activities worth UGX.11.22Bn were partially implemented.
xiii) Out of 26 activities, the High Commission fully implemented nine
(9) activities, 11 activities were partially implemented, while six
(06) activities remained unimplemented.

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Uganda High Agro-industrialization Unqualified i) The High Commission recruited 11 local contract staff who were
Commission in Development plan paid a total of UGX.0.33Bn during the year without approval by the
Kenya, Nairobi implementation Permanent Secretary of MoFA.
Governance and ii) The Mission had no staff structure at the level of FSO Gr. II
security however, two (2) staff were occupying this position which
Natural resources, represents over establishment at the High Commission. On the
environment, climate other hand, the Mission has a staff position in the structure for FSO
change, land and Gr. III however, this position was not occupied.
water Tourism iii) The Mission had an approved establishment of three (3) local
development contract staff at the level of a cook and housekeeper however,
none of these positions had been filled.
iv) At the time of audit inspection (October 2024), the consultant had
made a detailed assessment for restoration works at Uganda House
following the fire incident which required a sum of UGX.7.2Bn. The
assessment was forwarded to the PSST and PS MOFA for necessary
action. The destruction of the property has resulted into annual
rental losses to Government of UGX.1.8Bn.
v) The Mission is in urgent need of funds for capital development to a
tune of UGX.200Mn however; this has not been allocated and
subsequently funded.
vi) The Mission paid out UGX.853.38Mn to officials travelling from their
duty stations to undertake Mission activities within Kenya using
travel abroad rates due to lack of clarity on which rates to use from
Ministry of Public Service.
vii) Out of the total warrants of UGX.12.53Bn, the High Commission
utilized UGX.10.69Bn. The balance of UGX.1.84Bn that was not
utilized was meant for the improvement/renovation of the
chancery.
viii) The Mission received and spent UGX.228.84Mn from programmes
for which the Mission has no contribution as per the programme
allocation in the NDP-III.
Uganda High Community Unqualified i) The Mission had high rental cost of UGX.683Mn, which was 15% of
Commission in mobilization and the total funding of UGX.4.661Bn. This increased by 15% from the
Rwanda, Kigali mindset change prior year’s cost of UGX.594.7Mn. This impacts the implementation
Governance and of the Mission’s mandate activities.
security ii) The FSA rates have remained unchanged for over a decade,
Tourism despite the increase in the cost of living in Rwanda, over the years.
development This implies increased cost of essential goods and services which

532
 affects the financial well-being and standard of living of FSOs.
iii) The High Commission had obsolete assets that had not been
disposed and two old vehicles that had become expensive to
maintain/service.
iv) In the period under review, the programmes of Tourism
Development and Community Mobilization & Mindset change were
not funded due to budget cuts.
v) The Governance and Security program activities could not be
assessed due failure by the High Commission to quantify outputs
and activities effectively.
vi) Out of receipts of UGX.4.661Bn, the High Commission spent
(operational expenditure) a total of UGX.4.589Bn (98.5%),
resulting in a balance of UGX.71.9Mn. From the balance,
UGX.55.7Mn (77.5%) was eroded by the exchange loss.
Uganda High Community Unqualified i) The Uganda High Commission owns four (4) properties/ pieces of
Commission in mobilization and Land that comprise the Chancery and Consular building, the Official
Tanzania, Dar-es- mindset change Residence (OR), Plot of land at Kaunda Drive and Land at Dodoma.
Salaam Development plan ii) Inspection of the properties showed that the Official Residence
implementation (OR) has not been renovated/maintained for more than 3 years
Governance and and continues to waste away. The deteriorating condition of the OR
security is wastage of Government resources and taints Uganda’s image.
Manufacturing iii) The Land at Kaunda Drive is idle with no development and there is
Private sector a risk that the offer could get withdrawn due to the failure to plan
development and develop the Plot. Besides, delayed development denies GOU
Sustainable revenue that would have been earned from timely development.
petroleum iv) At the time of inspection, the Dodoma land was bushy however,
development the design of the Chancery has been developed and the contract
for the supervising Engineer has already been signed with the plan
to start construction soon. Meanwhile, the Chancery at Dar es
Salaam was well maintained.
v) The store/registry lacks shelves for holding the High Commission
records. There is a risk that the boxes/documents piled up on the
ground could get destroyed by the dampness/humidity.
vi) The Uganda Consulate - Arusha operates from a rented property at
a cost of USD.24,000 per annum. The Consulate lacks an approved
Staff Structure to implement the Mandate and vehicles especially
the utility vehicle for operations.
vii) That the High Commission did not achieve all its mandate caused

533
 by the lack of funding for all the budgeted/planned activities. This
denies citizens and the country opportunities for economic growth.
viii) The High Commission had a revised budget of UGX.9.25Bn out of
which UGX.8.96Bn was warranted resulting in a shortfall of
UGX.0.29Bn representing a 97% performance. All the funds
warranted were spent.
ix) A total of four (04) outputs with 35 activities worth UGX.8.087Bn
were assessed and I noted that; One (01) output with two (02)
activities and expenditure worth UGX.0.32Bn was fully
implemented. Three (03) outputs with 33 activities worth
UGX.7.76Bn were partially implemented. Out of 33 activities, the
High Commission fully implemented 29 activities worth
UGX.7.17Bn. Three (03) activities worth UGX.0.53Bn were partially
implemented, while one (01) activity worth UGX.0.067Bn remained
unimplemented.
Uganda Human Governance and Unqualified i) UHRC is not adequately prepared for the RAPEX, given their lack of
Rights Commission security a clear and comprehensive strategy discussed and agreed upon by
(UHRC) the Commission’s Board, pending legal issues, and transparency
regarding managing human and other resources post-merger for
both UHRC and EOC. As a result, the institution is unlikely to
anticipate and adequately address the challenges they will likely
face.
ii) The Commission had an approved budget of UGX.19.57Bn, out of
which UGX.18.67Bn (95.4%) was warranted, resulting in a shortfall
of UGX.0.90Bn. UGX.18.337Bn had been utilised by the close of the
financial year resulting in an unspent balance of UGX.0.329Bn.
iii) I assessed the extent of implementation of activities for which
funds were availed and utilised and observed that nine (9) outputs
with 40 activities and expenditure worth UGX.0.792Bn were fully
implemented, three (3) outputs with 11 activities worth
UGX.17.545Bn were partially implemented.
iv) The Commission was able to conclusively investigate 531
complaints out of a total of 917, representing a 60% performance.
v) A review of 100 files revealed delays of more than one year, with
some complaints going up to 10 years before the completion of
investigations. The Commission had not started on the investigation
of 90 out of 681 cases (13.2%) for over five (5) years.
vi) I analysed the disposal of complaints by the UHRC tribunal in the

534
 financial year 2023/2024 and noted that out of 1,325 cases brought
forward, only 171 (13%) cases were closed.
vii) Files spent an average of four (4) years at the tribunal between the
first hearing and the last tribunal decision, and more than 97% of
the total cases pending at the tribunal level were six years old or
more.
viii) The Commission owns five (5) pieces of land in prime locations in
various districts. However, none of the land properties has been
developed. Further, a review of the entity’s work plan shows that in
the short term, there are no plans to develop the land to construct
regional offices or other uses.
ix) KCCA declared the UHRC buildings on Plot 20, 22 & 24 Buganda
Road as unfit for occupation and condemned them for demolition
due to concerns regarding the structural integrity of the buildings
and their noncompliance with building standards. However, UHRC
still occupies the buildings despite its being condemned.
x) UHRC did not plan for and, therefore, did not undertake any
inspections during the financial year 2023/2024.
xi) A verification of the Treasury Memorandum of the Report of the
Public Accounts Committee on Commissions, Statutory Authorities
and State Enterprises for the Financial Year 2020/21 showed that
out of eight (8) recommendations, six (6) were fully implemented,
one (1) was partially implemented while one (1) was not
implemented. Details were issued in a Separate report.

Uganda Institute of Digital Unqualified i) The Institute has a grant for EON-XR Centre (EXR) for the
Information and Transformation implementation of the Augmented and Virtual Reality project to
Communications increase enrolment to 5000 students and 750 workers/interns for 5
Technology (UIICT) years. However, I noted delays in the implementation of the project
in its first year.
ii) Out of a total number of 197 approved staff positions, only 39
positions representing 20% have been filled. 158 positions
representing 80% of the approved staff establishment remain
unfilled.
Uganda Land Natural resources, Unqualified i) The payables increased by UGX.22.98Bn from UGX.148.97Bn in
Commission (ULC) environment, climate financial year 2022/2023 to UGX.171.95Bn in the current year,
change, land and mainly resulting from court awards and failure to pay the
water outstanding amounts for Land Compensations.

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 ii) The Commission contingent liabilities increased by UGX.36.53Bn
from UGX.28.86Bn in financial year 2022/2023 to UGX.65.39Bn in
the current year, resulting from court awards.
iii) The Commission did not withhold tax of UGX.0.087 Bn paid to
different suppliers contrary to the Income Tax Law.
iv) UGX.1.1Bn in respect of ground rent remained outstanding.
v) ULC procured goods and services worth UGX.0.139Bn without
carrying out market survey.
vi) The Commission had an approved budget of UGX.47.33Bn, out of
which UGX.46.92Bn was warranted resulting in a shortfall of
UGX.0.421Bn (0.9%). UGX.46.20Bn (98%) of the total warrants
had been utilized by the close of the financial year.
vii) I assessed the extent of implementation of activities for which
funds were availed and utilised. A total of 7 outputs with 23
activities were assessed and observed that the entity did not have
costs per activity instead it was costed at output level, seven (7)
outputs with 15 activities were fully implemented, seven (7)
outputs with 8 activities were partially implemented.
viii) I observed that the Commission charged wrong expenditure codes
to the tune of UGX.116.6Mn
ix) I undertook a special audit of the pension payroll, and a separate
report was issued.
Uganda Law Reform Governance and Unqualified i) As part of RAPEX, the government decided to merge, streamline,
Commission (ULRC) Security and transfer the functions of the ULRC to the Ministry of Justice
and Constitutional Affairs. I noted that there was no clear strategy
on how the staff of the ULRC would be absorbed within the Ministry
of Justice, which has created uncertainty and low morale, while the
lack of job security for experienced staff poses a risk of disruptions
in the services that ULRC offers to the citizens, particularly in
reviewing and revising the laws that serve the public.
ii) As at 30th June 2024, ULRC had accumulated arrears amounting to
UGX.8.852Bn comprising outstanding social security contributions
for current and former staff of the Commission with no clear plan
on how these payables will be settled after rationalisation.
iii) ULRC is a tenant at Workers’ House, NSSF building and is required
by the tenancy agreement to pay rent three (3) months in advance.
The tenancy agreement also requires ULRC to give a minimum
notice period of three (3) months in case of termination. Therefore,

536
 given that the quarterly rent is UGX.255Mn, there is need for
proper planning on the timing of the rationalisation to avoid
nugatory and unnecessary expenditure on rent.
iv) A review of the approved budget estimates for the year revealed
that no budgetary estimate were provided to settle the outstanding
domestic arrears amounting to UGX.8.852Bn on employer and
employee social contributions to NSSF.
v) ULRC had an approved budget of UGX.18.45Bn, out of which
UGX.17.34Bn was warranted, resulting in a shortfall of UGX.1.11Bn,
representing a 96% performance.
vi) ULRC had total warrants of UGX.17.34Bn, out of which warrants
worth UGX.15.69Bn had been utilised by the close of the financial
year, resulting in an unspent balance of UGX.1.65Bn.
vii) I assessed the extent of implementation of ten (10) outputs with
25 activities worth UGX.15.69Bn for which funds were availed and
utilised. I observed that three (3) outputs with three (3) activities
and expenditure worth UGX.3.94Bn were fully implemented while
seven (7) outputs with 22 activities worth UGX.11.75Bn were
partially implemented.
viii) Out of the 22 activities, the entity fully implemented 12 activities;
eight (8) activities were partially implemented, while two (2)
activities remained unimplemented.
ix) I undertook procedures on a sample of 11 activities worth
UGX.6.373Bn to ascertain if the entity implemented its activities on
time. I noted that two (2) activities worth UGX.445Mn had not been
completed by the end of the financial year. The delayed completion
of activities implies that the beneficiaries will not receive the
intended services in time.
x) I inspected the Commission’s stores and found that after the ULRC
published the 7th Revised Edition of the Principal Laws, (which took
effect on the 7th July 2024), publications of old laws worth
UGX.689.2Mn were still in store and were unlikely to be sold since
they were outdated.
xi) I reviewed the performance of the Commission with regard to the
printing and distribution of the new or revised laws that had been
published and observed that while 13,630 copies of printed laws
(books) had been distributed during the FY 2023/24, the
Commission was yet to distribute 84,518 printed copies as at 30th

537
 June 2024 and does not have sufficient storage space to keep all
the printed publications.
xii) I undertook a special audit on the pension and gratuity payroll for
the Commission for the period from FY 2019/20 to 2023/24 and a
separate report was issued.
xiii) I conducted an audit of the Treasury Memorandum on the Report
of the Public Accounts Committee on Commissions, Statutory
Authorities and State Enterprises for the FY 2020/21 for the
Commission and noted that all the four (4) recommendations given
by Parliament were fully implemented.
Uganda Human capital Unqualified i) I noted that all the items categorized as payables totalling to
Management development UGX.6.537Bn did not go through the invoicing module in the IFMS
Institute and did not reflect under the corresponding account areas being
affected in the statement of financial position and other financial
statements.
ii) Out of the approved budget of UGX 42.02 Bn, a sum of
UGX.40.29Bn was warranted resulting in a shortfall of UGX.1.73Bn
representing an 96% performance.
iii) The entity budgeted for 22 outputs spread across 21 departments,
where 05 are teaching, 15 are administrative departments and 01
is a project.
iv) The 22 outputs had 177 activities with a budget worth UGX.42Bn.
Of this, the entity received funding worth UGX.40Bn to implement
these activities.
v) Out of thirty-nine (39) activities, the entity fully implemented
twenty (20) activities worth UGX.4.49Bn, seven (07) activities
worth UGX.78.3Mn were partially implemented, while twelve (12)
activities worth UGX.15.5Mn remained unimplemented
Uganda Multi- Agro-Industrialization Unqualified i) The information in the e-reporting system using the kobo collect
Sectoral Food application was incomplete and lacked key identification fields such
Security and as beneficiary name, telephone number, location, amount spent,
Nutrition Project functionality of committees among others. This rendered the
(UMFSNP) information unreliable.
ii) The project assets were not handed over to the Accounting Officer
of MAAIF upon project closure in April 2024. This exposes the
assets to the risk of misuse and potential loss.
iii) Out of the total expected funding of UGX.136.34Bn, a sum of
UGX.135.68Bn was disbursed resulting in a shortfall of UGX.0.65Bn

538
 relating to the GoU counterpart funding.
iv) Out of the total disbursed funds of UGX.135.68Bn the project had
absorbed UGX.132.41Bn as of September 2024. The balance of
UGX.3.271Bn was held on the project bank account in Bank of
Uganda.
v) I sampled nine (9) activities worth UGX.67.6Bn and noted that
targets for all these nine (9) activities had been fully achieved.
vi) Physical inspection undertaken in October 2024 in Nawandala sub-
county Iganga District revealed that the equipment worth
UGX.2.78Bn was delivered but was not being utilised due to the
failure to train beneficiaries.
vii) Physical inspections undertaken in October 2024 in Ntungamo,
Nebbi and Kasese districts revealed that the screen houses worth
2.34Bn delivered to five (5) sampled individual beneficiaries were
not being put to the intended use.
viii) Physical inspections undertaken in Ntungamo, Nebbi and Isingiro
districts in October 2024 revealed that the equipment received by
the beneficiaries was being utilized. However, these beneficiaries
were operating seed banks without certification.
ix) At the time of audit, a number of sustainability interventions
proposed by Management had not been implemented. There is a
risk that all the funds invested by government in the project during
its lifetime, may go to waste.
Uganda National Innovation, Unqualified i) UNCST has had no substantive Executive Secretary for the last four
Council for Science Technology Transfer (04) years. This has affected the effectiveness of governance and
and Technology and Development oversight over Council operations.
(UNSCT) ii) Contracts for 43 out of 46 UNCST staff had expired. This implies
that there are no clear terms of employment of these staff which
further demotivates them.
iii) Over a three (03) year period, UNCST had a total budget of
UGX.88.3Bn, out of which only UGX.23.99Bn (27.2%) was availed
for implementation of Council activities. The shortfall of
UGX.64.2Bn (72.8%) affected; constitution of registered Research
Ethics Committees, monitoring of research protocols, building
capacity of research actors, integration of research activities on IT
platforms, formulation of the National STI plan/Research Agenda
and the National Technology transfer guidelines among others.
iv) Out of the approved budget of UGX.33Bn for the financial year

539
 2023/2024, total receipts amounted to UGX.8.6Bn out of which
UGX.7.7Bn was utilized. This affected the implementation of
planned activities.
v) I noted that subvention releases from STI to UNCST are not made
in a timely manner and this has affected the implementation of
planned activities. There was an average delay of 75 days from the
date of the quarterly release which affected implementation of
activities
vi) UNCST has been implementing the National Science, Technology,
Engineering, and Innovation Skills Enhancement Project, (NSTEI-
SEP) which became effective on 1st July 2019 and ended on 30th
June 2024. Out of the total expected cumulative disbursements of
UGX.435.98Bn, the project realised UGX.403.07Bn (92%)
cumulatively. The government has to date since the project
effectiveness paid UGX.48.3Bn in commitment fees as a result of
un-disbursed donor funds.
vii) Out of seven (07) key project activities, five (05) activities had
been fully achieved while two (02) activities were not yet achieved.
viii) The project procured 214 pieces of engineering equipment worth
UGX.148.2Bn, out of these, 109 pieces worth UGX.75.5Bn had been
hired by NEC-Works. The balance of 105 pieces worth UGX.72.7Bn
were parked and lying idle in Lyantonde, Namanve and Rwebitete
since 2022.
ix) UNCST procured 15 acres of land worth UGX.8.5Bn in the FY
2021/2022 at Namanve-Mukono to be used as the engineering
equipment parking yard however, to date, the land has not yet
been utilised.
Uganda National Human Capital Unqualified i) UNCC did not prioritize and therefore did not execute the following
Cultural Centre Development mandate activities;
(UNCC) a) Promotion of cultural diversity for National Development -
Creation of opportunities to provide platforms for artists and
cultural creative expressions.
b) Strategic Partnership - Leveraging synergy with other players in
promotion and preservation of our culture.
c) Institutional Capacity - Use of cutting-edge cultural
infrastructure to promote culture, attract and retain potential
audience.
d) Institutional Visibility - Positioning UNCC as a vibrant institution

540
 in the promotion of Uganda Culture in Uganda and beyond.
ii) The budget for the period under review was not approved due to
absence of a constituted board.
iii) There was a decline in revenue collection from UGX1.89Bn in the
FY 2021/22 to UGX.1.01Bn in the FY 2023/24.
Uganda National Human capital Unqualified i) The entity budgeted to collect NTR amounting to UGX 68.5Bn
Examination Board development during the year ended 30 June 2024 but collected UGX 68.4Bn
(UNEB) resulting into a shortfall of UGX 0.085Bn (0.12%).
ii) Inspection of the hostel and printery block revealed that the
complex has 36 rooms meant to house a maximum of 40
individuals but currently accommodates 90 people, with no space
for other machinery, storage and working.
iii) 35% of results for the Academic Year 2023 were withheld with over
50% of the results for UCE and UACE being released after selection
for the next level of study.
iv) The Board has trained 63,041 teachers in 3,810 schools from the
five regions of the country on continuous assessment which is only
a fraction of the teacher population.
v) I noted that continuous assessment activity estimated at
UGX.3.5Bn remained an unfunded priority and no funds had been
allocated for the groundwork activities.
vi) I assessed a total of 5 outputs with 33 activities worth
UGX.109.98Bn and observed that four (4) outputs with 30 activities
and expenditure worth UGX102.98Bn were fully implemented, and
one (1) output with 3 activities worth UGX.7Bn had no detailed
costings for individual activities within the output.
vii) Out of the 9 sampled projects, one (1) project worth UGX.546.4Mn
had delays of three (3) months from the expected completion date.
Uganda National Human capital Unqualified i) The entity had bad and irrecoverable debts amounting to
Medical Stores development UGX.25.89Bn by the close of the year 2021/2022, which had not
(NMS) been recovered even by the close of the year under review.
ii) The Corporation disclosed a contingent liability of UGX.66,939,118
for only one case out of 10 cases resulting into incomplete
disclosure of the Corporations’ exposure in-respect to contingent
liabilities.
iii) NMS had approved budget of UGX.587.694Bn out of which
UGX.584.368Bn (99%) was warranted and fully utilized. The
shortfall of UGX.3.325Bn was meant for retooling.

541
 iv) A total of 16 outputs with 19 activities worth UGX.517.051Bn were
assessed and i were all fully implemented.
v) The comparison of the EMHS delivered with the health facilities’
budgets indicated that out of UGX.562,545,722,925 budgeted, NMS
distributed EMHS worth UGX.503,398,119,671 leading to EMHS
worth UGX.59,147,603,254 undelivered to 3,204 health facilities by
the close of the financial year representing 89.5% performance.
vi) The total non-viable stock written off during the year amounted to
UGX.316.7Bn comprising UGX.23.2Bn for EMHS and UGX.293.5Bn
for COVID-19 vaccines, ARVs, test kits.
Uganda National Natural resources, Unqualified i) There was no strategy by the Authority and Ministry on how the
Meteorological environment, climate former staff would be compensated (gratuity and severance
Authority (UNMA) change, land and package) and how much each is entitled to for onward submission
water to the Ministry of Public Service (MoPS) for consideration.
ii) The contracts of the NCA staff ended on 30th September 2024 and
the validation exercise had not been fully concluded.
iii) Four (4) mandate activities it is mandated were not undertaken and
these include building capacity at local government levels,
supervising any other weather and climate observers whose data is
to go into National Data Bank, establishing and maintaining an
effective national weather forecasting center and participating in
the review, formulation, and implementation.
iv) Out of the approved budget of UGX 16.53Bn, UGX 15.53Bn was
warranted representing 94% performance.
v) Out of the warranted funds of UGX 15.53Bn, UGX 14.67Bn (94%)
was utilised leaving a balance of UGX 0.86Bn which related to staff
salaries and gratuity who had resigned.
vi) Of the seven (7) outputs with forth-three (43) fully quantified
activities, two (2) outputs with three (3) activities worth 0.04Bn
were fully implemented, while five (5) outputs with forty (40)
activities worth UGX 12.23Bn were partially implemented.
vii) The Authority received UGX 93Mn supplementary funding without
evidence of requesting it.
Uganda National Oil Sustainable Unqualified i) The Jinja Storage Tanks as well as their associated land was not
Company (UNOC) Development of valued and recognized in the financial statements, despite the
Petroleum Resources company managing, operating and generating benefits from the
Programme property.
ii) The company had an operating margin of -9%, which improved by

542
 37% from last financial year. In addition, the Return on assets is
inadequate, at -0.3% which indicates that the company is not
utilizing its assets efficiently to generate revenue.
iii) The company’s ROA is -0.3% which improved from the previous
year’s ROA of -1.7%. The low Return on Assets is attributed to the
Company’s Assets being work in progress or assets under
construction.
iv) UNOC paid out UGX.613.01Bn in EACOP cash calls effectively
completing its equity contribution towards the project. However,
the overall weighted project status as at 30th June 2024 was 36%
contrary to the target of 50.8%.
v) The Kabalega Industrial Park project progress is 2 years behind its
baseline schedule with an overall completion status of 0.14%, due
to the lags in the engineering and design stage.
vi) The petroleum product bulk trading revenue had a 10.5% decline
from the previous year’s performance of UGX.1.85Bn, arising from
a decrease in the volume of traded product by 37% from 27.1m
litres previous year to 17.1m litres current year.
Road Sector Support Integrated transport Unqualified i) Out of the expected total disbursement of USD.100.7Mn, the
Project V (RSSP-V) infrastructure and project received USD.86Mn, leading to undisbursed funds of
(Project ID No: P- services USD.14.7Mn.
UG-DB0-022 and ii) GoU is to pay commitment fees of USD.2.9Mn because of the un-
Loan No: disbursed funds from the date of project effectiveness
2100150032194), iii) Although the expected GoU counterpart funding was USD.20.7Mn,
implemented by USD.29Mn had been disbursed, leading to an over disbursement of
UNRA for period USD.8.3Mn. The over disbursement was to fund civil works which
ended 30th June were not initially budgeted.
2023
Road Sector Support Integrated transport Unqualified i) Out of the total expected donor funding of USD 113,364,700, as of
Project V (RSSP-V) infrastructure and 30th June 2024, the African Development Fund (ADF) had disbursed
(Project ID No: P- services UA 68,247,127.27 (USD 104,773,672), leaving an undisbursed
UG-DB0-022 and balance of USD 8,591,027.
Loan No: ii) The Government of Uganda has incurred commitment fees totaling
2100150032194), USD 3,366,127.55 on undisbursed donor funds since the project’s
implemented by inception on 3rd June 2015.
UNRA for period iii) Of the 8,647 Project-Affected Persons (PAPs), 8,125 worth
ended 30th June UGX.74.55Bn have been compensated leaving 514 PAPs valued at
2024 UGX.3.61Bn outstanding as at 30th June 2024.

543
 iv) The GOU committed a total of USD 22,906,322.5 but has disbursed
UGX.116.45 billion (USD 31,075,876.96), reflecting an over-
disbursement of USD 8,169,554.
v) Out of the approved budget of UGX.43.73Bn for the financial year
2023/2024, only UGX.27.01Bn was available for spending, resulting
in a funding shortfall of UGX.16.77Bn and a performance level of
61.7%.
vi) Out of UGX.27.01Bn available, UGX 26.38Bn was spent, leaving an
unspent balance of UGX.628.81M (98% absorption).
Uganda Petroleum Sustainable Unqualified i) For the year ended 30th June 2024, the Petroleum Revenue
Fund (UPF) Development of Investment Reserve did not receive any appropriations, implying
Petroleum Resources that the fund balances of UGX.99.602Bn and USD. 8.4Mn remain
unutilized and therefore do not generate any returns.
Uganda Petroleum Human Capital Unqualified i) The entity accumulated domestic arrears and other payables
Institute-Kigumba Development increased from UGX.2.16Bn to UGX.4.72Bn over Financial Years
(UPIK) (FYs) 2022/2023 and 2023/2024 owing to budget cuts and failure
to adhere to the government commitment control system.
ii) Procurements worth UGX.0.829Bn (13%), were split by the entity
without following the criteria of splitting of requirements.
iii) The Institute did not carry out market surveys for procurements
worth UGX.5.259Bn.
iv) There were late deliveries of contracted supplies averaging 96 days
for 6 procurements amounting to UGX.1.194Bn.
v) Out of the approved budget of UGX.11.541Bn, the total warrants
for the year amounted to UGX.11.299Bn (98%), resulting in a
shortfall of UGX.0.242Bn.
vi) Out of the approved 89 positions, only 68 (76%) were filled,
leaving 22 positions vacant.
Uganda Printing and Governance and Unqualified i) UPPC had outstanding receivables worth UGX.6.09Bn. Included in
Publishing Security these receivables is UGX.5.84Bn (96%) that relates to Government
Corporation (UPPC) entities. UGX.1.91Bn has been outstanding for a period ranging
between 361 days to 2,160 days.
ii) UPPC had outstanding trade and other payables worth UGX.8.91Bn,
an increment of 34% from prior year amount of UGX.6.66Bn.
Further, 85% (UGX.7.61Bn) of the total payables relates to tax
arrears that are due to Uganda Revenue Authority.
iii) The Corporation made sales amounting to UGX.13.2Bn during the
FY 2023/2024. This performance was an improvement from the

544
 sales of UGX.6.9Bn that were made in the FY 2022/2023 an
increment of 93%
iv) UPPC made a loss of a key business worth UGX.3.621Bn from
Uganda Law Reform Commission due to outdated printing
equipment and frequent breakdowns.
v) The Corporation’s return on assets was 3% which was below the
recommended 5%, an indication that the entity is suboptimal and
inefficient in utilising its assets due to the outdated printing
equipment and frequent breakdowns.
vi) The Corporation had a current ratio of 1.4:1 which is outside the
desirable range of 1:2
vii) I assessed the implementation of five (5) key capital activities that
had been fully quantified worth UGX.0.37Bn and noted that one (1)
activity was fully implemented, one (1) partially implemented while
three (3) were not implemented.
Uganda Prisons Governance and Unqualified i) UPS had an approved budget and release of UGX.9.72Bn to settle
Service (UPS) security domestic arrears. However, the domestic arrears brought forward
from the prior year were UGX.182.35Bn, implying a shortfall of
UGX.172.63Bn.
ii) UPS spent UGX.117.77Bn in settling domestic arrears for the year
under audit, yet the released amounts were UGX.9.72Bn, implying
that the entity diverted a sum of UGX108.05Bn.
iii) I reviewed the performance of Non-Tax Revenue (NTR) and
observed that UPS planned to collect UGX.36.42Bn but collected
UGX.33.80Bn during the year.
iv) UPS had total releases of UGX.418.89Bn, out of which only
UGX.418.78Bn had been utilised by the close of the financial year.
The balance of UGX.0.11Bn was meant for the purchase of office
equipment and procurement of food supplies.
v) Three (3) outputs with 19 activities and expenditure worth
UGX.92.18Bn were fully implemented. Six (6) outputs with 62
activities worth UGX.318.99Bn were partially implemented.
vi) Examples of the partially implemented activities included; the
construction of silos at Rumi and Lugore and the feasibility study
for prison infrastructure. Similarly, only 19,833 metric tonnes of
maize grain were produced out of the planned 21,825 metric
tonnes, and only 2,700 bales of cotton were produced out of the
planned 10,000 bales.

545
 vii) Four (4) activities amounting to UGX.2.15Bn were not implemented
despite UPS receiving the funds. The unimplemented activities were
the expansion of Kisoro Prison (comprising a male ward, external
works and fencing), construction of a food storage facility at Kitalya
Mini Max prison, establishment of a bakery project in Kitalya and
training of staff in industrial safety and modern production
technologies.
viii) Despite UPS constructing additional prison wards, UPS continues to
grapple with overcrowding of prisons with the highest congestion at
Aswa I, Kicheche, Bubulo, Kakumiro and Kigandalo prisons. The
current prisons’ holding capacity is 21,126 prisoners, while the
prisoner population as at 30th June 2024 was 79,757, exceeding the
holding capacity by 58,631 inmates. This resulted in an occupancy
rate of 377.5%
ix) Analysis of prisoners’ statistics revealed that prisoners on remand
make up 48% of the total prisoner population. Remand prisoners
comprise both capital offenders and petty offenders. I observed
that the average length on remand for petty offences was 2.7
months against a recommended duration of two (2) months.
x) I noted that as at 30th June 2024, the staffing levels at UPS were
14,145 staff, against the approved structure of 42,724 staff, leaving
28,579 positions vacant. The number of custodial staff was 11,576,
serving a population of 79,757 prisoners, resulting in a high
average custodial staff-to-prisoner ratio of 1:7 instead of the
recommended ratio of 1:3.
xi) A review of the status of staff accommodation of UPS personnel
revealed that only 6,922 (49%) out of the 14,145 staff are
accommodated in permanent houses provided by the Service, while
the remaining 7,223 staff (51%) are accommodated in temporary
houses or not housed at all.
xii) I noted that 141 (53%) out of 266 prison stations are not fenced,
and of those that are fenced, some have dilapidated fencing, such
as Jinja (M), Jinja (R), Kakira, Makulubita, Nyimbwa, Bushenyi
(M)/(W), Mbarara (M)/(W). Inadequate fencing may result in
prisoners escaping from prison.
xiii) I noted a misalignment between prisons and court locations, with
several prisons located more than 20 km from the nearest courts
that prisoners need to attend. The long distances between courts

546
 and prisons have led to incidents of late delivery or non-production
of prisoners to courts and high fuel expenses, vehicle repairs and
maintenance.
xiv) I reviewed the health infrastructure within the different prisons and
noted that UPS only has one general hospital at Murchison Bay
prison, 98 prisons do not have any health facility, only Murchison
Bay hospital has an established mental facility, and out of 266
prisons, only seven (7) prisons (3%) have isolation centres for
prisoners with transmittable diseases.
xv) I observed that the average number of babies staying with their
mothers in prison during the financial year 2023/2024 was 293.
However, out of the 19 women’s prisons, only 4 (21%) prisons
have day care centres, i.e. Luzira, Arua, Mbarara and Gulu women’s
prisons.
xvi) I noted that fifty (50) prisons still use the bucket system,
particularly in stations that continue to use uniports as prisoners’
accommodation and in stations that do not have dedicated wards
for female prisoners but instead use improvised structures.
xvii) UPS occupies approximately 172 pieces of land of different sizes in
various parts of the country, but only 65 (38%) have titles. Out of
the total land, 65 pieces are surveyed and titled. 22 pieces are
surveyed but not yet titled, while 85 pieces have not been
surveyed.
xviii) Six (6) pieces of land occupied by Uganda Prisons had
encumbrances in form of encroachments and court cases.
xix) The Prisoners Management Information System (PMIS) is only
operational at three (3) prisons, i.e., Murchison Bay, Luzira Women
and Luzira Upper Prison. As at 30th June 2024, the total prison
population at the three prisons was 6,945, yet only 6,153 records
of prisoners were captured on PMIS since inception, indicating a
performance gap in the utilisation of the system.
xx) A review of the approved budget estimates of UPS for the financial
year under review revealed that a budgetary provision of
UGX.414Mn was made towards the settlement of outstanding
arrears for court awards totalling to UGX.795.2Mn.
xxi) I undertook a special audit of the pension payroll that covered a
period from FY 2019/20 to 2023/24 and a separate report was
issued.

547
 xxii) I undertook an audit of two (2) Treasury Memoranda on the
Parliamentary resolutions on the report of the Public Accounts
Committee - Central Government on the reports of the Auditor
General for FYs 2015/16 and 2020/21 and noted that out of the 27
recommendations given by Parliament, 17 were fully implemented,
nine (9) were partially implemented while one (1) was not
implemented.
Schedule of Governance and Unqualified i) The payment voucher references were not referred to in the
Expenditure of security accounting system and the accounting system references were not
Federal Award of appended on the payment supporting documents. This made it
Uganda Prisons difficult to trace transactions reported in the system to their
Service, Centers for supporting documents.
Disease Control and ii) Management procured a lot of mother registers which were more than
Prevention what was needed by the Prisons Management and therefore many of
(Cooperative these registers were just kept in stores.
Agreement Grant
No.
1NU2GGH002279-
01-00) for the year
ended 30th
September 2023
Uganda Refinery Energy Development Unqualified i) Although funds amounting to UGX.173.29Bn were available for the
Holding Company refinery project during the year, there was no notable progress.
(URHC) ii) There was a delay in the Final Investment Decision (FID) due to slow
negotiations of critical commercial agreements, including the Host
Government Agreement, Crude Supplier’s Agreement, and the
Shareholders’ Agreement with the investment partners.
iii) The RAP for the MBEGU water abstraction and multi-product pipeline
remains unfinished. Implementation of PAP compensation has not yet
commenced.
iv) The initial project plan aimed at startup by November 2027, 30
months after the original expected First Oil date of April 2025.
However, due to the current circumstances, the timeline was at risk of
extending further.
Uganda Retirement Private sector Unqualified i) A comparison of the entity’s strategic and annual work plans for the
Benefits Regulatory development last three (3) years with the mandate as stipulated in relevant laws
Authority (URBRA) revealed that the entity had adequately executed its mandated
activities.

548
 ii) The entity had an approved budget of UGX.14.58 Bn out of which
UGX. 14.48 Bn was warranted resulting in a shortfall of UGX.0.1059
Bn (99.3%).
iii) The entity had total warrants of UGX.14.48 Bn out of which warrants
worth UGX.13.79 Bn had been utilised by the close of the financial
year.
Uganda Registration Governance and Unqualified i) The URSB - Liquidation had an approved budget of UGX.843.55Mn.
Services Bureau Security However, UGX.855.71Mn was warranted, exceeding the approved
(URSB) - Liquidation budget by UGX.12.15Mn. Out of which warrants worth UGX.835.26Mn
had been utilised by the close of the financial year. The balance of
UGX.20.45Mn was meant for the maintenance of transport
equipment, security, guards and bailiffs at the initial appointment of
the Official Receiver and facilitation to staff carrying out initial
appointments and other duties of the Official Receiver upcountry
which were not carried out.
ii) I assessed the extent of implementation and noted that URSBL did
not implement some activities, including the provision of security
guards and bailiffs at the initial appointment of the Official Receiver,
carrying out initial appointments and other duties of the official
receiver in upcountry locations, and the maintenance of motor
vehicles and motorcycles despite receiving the required funds.
Uganda Registration Community Unqualified i) I reviewed the management of domestic arrears and noted the
Services Bureau mobilization and delayed settlement of arrears by URSB. Out of UGX.6.242Bn arrears
(URSB) mindset change declared as at 30th June 2023, only UGX.3.481Bn was settled during
Governance and the year under review using the recurrent budget provisions, leaving
security pending arrears from the previous period of UGX.2.761Bn unpaid. I
Innovation, also noted that the Bureau continued accumulating additional arrears
Technology from UGX.0.591Bn in the previous year to UGX.1.482Bn in the current
development and year.
transfer ii) URSB is housed in the Uganda Business Facilitation Centre (UBFC), a
Private sector 12-story building accommodating various government entities,
development including the Capital Markets Authority and the Uganda Investment
Authority, under the Condominium Property Act. However, I observed
that no condominium plan has been established, and no condominium
corporation exists, contrary to the provisions of Section 19 of the
Condominium Property Act, Cap 234.
iii) During the year under review, MoFPED procured additional land
comprising Plot 4A and Plot 4B on Malcolm X Avenue, Kololo at a cost

549
 of UGX.7.6Bn for the expansion of the Uganda Business Facilitation
Centre (UBFC). However, I observed no clear access route connecting
the procured land to the UBFC building. In addition, as of November
2024 (the audit date), physical possession of the acquired land had
not been handed over to URSB and other intended beneficiaries.
iv) I observed that 11 out of 32 motor vehicles owned by URSB have
significantly exceeded their economic useful life of five (5) years.
These vehicles, primarily utilised for field activities at regional offices,
have been in operation for periods ranging from 9 to 17 years.
v) The URSB had an approved budget of UGX.47.825Bn, out of which
UGX.47.191Bn was warranted, resulting in a shortfall of
UGX.634.35Mn. As a result, the procurement of motor vehicles and
consultancy services were partially funded, while utilities and furniture
were not funded at all.
vi) URSB had total warrants of UGX.47.191Bn, out of which warrants
worth UGX.47.017Bn had been utilised by the close of the financial
year. The balance of UGX.173.505Mn comprised residual amounts
meant for the advertising and public relations, printing, stationery,
photocopying and binding, property management expenses,
incapacity, death benefits and funeral expenses, fines and penalties,
and acquisition of light ICT hardware and light vehicles.
vii) The URSB partially implemented the business clinics. Out of the
planned 48 business clinics, the Bureau carried out only 12. In
addition, the URSB did not implement four (4) activities within the
financial year despite receiving funding to implement them. These
activities include procuring software licences, developing a mobile
app, Subscription for approval of chambers and Subscription to the
Public Relations Association of Uganda (PRAU) for six (6) staff.
viii) I reviewed the Online Business Registration System (OBRS)
implementation and observed implementation delays as set
milestones were yet to be achieved. I further noted that the revised
implementation schedule, because of the delays, was neither signed
off nor formally approved. In addition, the monitoring of the system
implementation was not sufficiently regular to ensure timely detection
of implementation shortfalls.
Uganda Rural Energy Development Unqualified i) Only 7,183 (16%) of the total 44,038 Project Affected Persons (PAPs)
Electricity Access had been compensated owing to shortfalls in disbursements.
Project (UREAP) ii) Although the Project Implementation Unit fully implemented the

550
 construction of 1769km Medium Voltage (MV) and 2,682km Low
Voltage (LV) lines, the last mile connections of 54,200 identified
customers had not been implemented.
Electricity Access Energy Development Unqualified i) Out of the required 47 project staff positions, only 11 (23%) have
Scale Up Project been filled leaving 36 vacant positions. Inadequate staffing affects
(EASP) (MEMD) implementation of project activities.
ii) Procurements worth USD. 31.62Mn did not meet the indicative lead
time frame for open international bidding and Quality and Cost Based
Selection (QCBS) which is 5 and 8 calendar months respectively.
iii) Out of the IDA and GoU budget of USD.53.08Mn and UGX.27.77Bn
respectively for the financial year 2023/2024, only USD.9.02Mn (17%)
and UGX.23.46Bn (84%). The underperformance affected
procurement of project consultants.
iv) Out of the total available donor funds of USD.9.02Mn, only
USD.1.17Mn (13%) was spent, due to delays in the procurement
processes.
v) Out of the 83 project activities conducted; two (2) activities worth
USD.0.11Mn were fully implemented, twenty-four (24) activities worth
USD.1.06Mn were ppartially implemented and fifty-seven (57)
activities worth USD.6.40Mn were not implemented.
Electricity Access Energy Development Unqualified There were no reportable issues
Scale Up Project
(EASP) (UECCCL)
Uganda Road Fund Integrated transport Qualified i) A total of UGX.22.1Bn, intended for code 263402 (transfers to other
(URF) infrastructure and government units for District, Urban & Community Access Road
services maintenance), was mischarged to other codes, contrary to Section
7.10.3 of the Treasury Instructions, 2017.
ii) A total of UGX.6.14Bn spent by the Fund on field and support
activities lacked the necessary supporting accountability documents.
iii) URF’s operations have ceased, and its functions have been absorbed
by the Ministry of Works and Transport. Management disclosed these
developments on page 8 of the financial statements.
iv) The delayed implementation of the Integrated Management
Information System (IMIS), funded by the African Development Bank
at UGX.2.6Bn, has resulted in incomplete project execution,
insufficient training for Designated Agencies, untested alignment with
user requirements, and unresolved cost implications of multiple
change requests, undermining road management efficiency and

551
 system rollout.
v) No contract management reports were available for contracts totalling
UGX.648.73Mn, hindering the assessment of performance and
compliance.
vi) A contract for the supply of a Double Cabin Pickup valued at
UGX.197Mn did not have the required 5% performance security,
exposing the entity to financial risks in case of non-performance.
vii) A contract worth UGX.169.21Mn for the supply and installation of IT
equipment experienced a four-week delay, incurring liquidated
damages of UGX.6.77Mn, which were not enforced.
viii) A framework contract for catering services valued at UGX.396Mn/year
revealed non-compliance, including failure to contribute 2% of
monthly electricity bills and a lack of documented contract
management meetings.
ix) Key mandated activities, including control of overloading and
implementation of a road user charging system, were not executed as
per the Uganda Road Fund Act.
x) Of the UGX.435Bn approved budget, UGX.434.91Bn was warranted,
with UGX.0.094Bn unutilized, leaving some activities, such as ICT
supplies and maintenance, unfunded.
xi) Out of 10 funded activities worth UGX.0.97Bn, seven were fully
implemented, two were partially implemented, and one was not
implemented.
xii) UGX.6.24Bn was released to districts and cities that lacked functional
road committees, leading to ineffective oversight and unverified
accountability of funds.
xiii) Recommendations from a UGX.2.08Bn consultancy for establishing
TSUs remain largely unimplemented, delaying improvements in road
infrastructure maintenance.
xiv) 713 newly created sub-agencies submitted budgets totalling
UGX.26.73Bn for FY 2023/24 but received no funding, jeopardizing
road maintenance and development in town councils and sub-
counties.
xv) I observed that 28 designated Agencies did not submit
accountabilities amounting to UGX.6.924Bn.
xvi) Of 10 recommendations from the Treasury Memorandum for FY
2020/21, 50% were fully implemented, 30% partially implemented,
and 20% not implemented, reflecting gaps in compliance.

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 Uganda Secondary Human Capital Unqualified i) Targets for seven (07) activities worth UGX.2.55Bn had been fully
Education Expansion Development achieved while targets for the remaining eighteen (18) activities worth
Project (USEEP) UGX.41.19Bn were yet to be achieved.
ii) Commitment fees of UGX.2,458Bn were paid because of undisbursed
funds.
iii) Out of the target of 72 schools only eight (8) had been constructed.
iv) Even with the available funds of UGX.43.75Bn, 25 activities
comprising the construction of classroom and schools’ facilities were
not implemented.
Uganda Support to Private Sector Unqualified i) The total cumulative disbursements of project funds as at 30th June
Municipal Development 2024 were UGX.1.26 Trillion against the expected disbursements of
Infrastructure UGX.1.26 Trillion creating a short fall of UGX.53.5 Billion as per the
Development Project project financing agreement.
Additional Funding ii) A total of 84 projects whose designs had been completed by the end
(USMID-AF) of the project in various cities and MCs worth UGX.473.97Bn were not
implemented because of the un-disbursed funds.
iii) Out of 151 activities worth UGX.989.4Bn in 10 cities, 12 Municipalities
and 11 RHD’s, only 116 activities worth UGX.861.8Bn had been fully
achieved. 35 activities worth UGX.127.6Bn were yet to be achieved.
iv) Physical development plans were restricted to a few sub counties and
Town Councils.
v) The Project had an approved budget of UGX.520.9Bn for the financial
year 2023/2024 out of which UGX.520.9Bn6 was available for
spending representing 100% performance. This is for current year
only.
vi) Out of the total available funds of UGX.520.9Bn, only UGX.513.8Bn
(91%) was spent resulting in unspent balance of UGX.7.1Bn 9(%).
vii) I selected fifty-one (51) service delivery activities costing UGX.
59.07Bn that were implemented to establish if project activities were
undertaken in a timely manner, and they were of expected quality
and quantity.
viii) Over UGX.989.4Bn has been spent on infrastructure in the thirty-three
(33) Cities, Municipalities and RHD’s during the Implementation of the
project. I noted that the continuity of the investments and the
sustained utilisation of the infrastructure was at risk as the LGs did
not plan adequately for the maintenance of the infrastructure.

6
Please note that the actual releases are inclusive of rolled over unspent balances from the prior year since projects do not return funds.

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 ix) The LGs failed to comply with Environmental and Social provisions
pertaining to borrow pits, quarry sites and tree planting.
x) Solid waste generated and disposed of during the whole project
implementation period (2021/2022-2023/2024) by the participating
Cities and Municipalities was 4,034,739.4 tonnes and 1,509,730.54
tonnes respectively. However, only 1,109,833 tonnes and 399,897
tonnes were disposed of in Cities & Municipalities respectively.
xi) 331 grievances were registered under USMID-AF, but only 278 (84%)
were closed off while 53 (16%) remained open by the end of June
2024.
xii) Only 28 (80%) procurements worth USD 7.32Mn were fully achieved,
2 (5.7%) procurements worth USD 140,000 were partially achieved
and 5 (14.3%) procurements worth USD 2,539,970 were not
undertaken at all.
Uganda Virus Human capital Unqualified i) The Institute had outstanding commitments of UGX.5.58Bn in respect
Research Institute development of compensation to squatters on its land at Kamwanyi worth
(UVRI) UGX.5.40Bn and water bills worth UGX.0.19Bn by the close of the
year 2023/2024.
ii) The Institute had a contingent liability of UGX.0.12Bn in-respect of
un-paid gratuity and pension for a late staff. The non-payment of this
liability was due to the non-submission of the relevant documents by
the beneficiaries.
iii) The entire approved budget of UGX.9.847Bn was warranted of which
warrants worth UGX.9.819Bn had been utilized by the close of the
financial year leaving a balance of UGX.0.028Bn, which was meant for
payment of pension to remain unutilized.
iv) Out of the five (05) outputs with 14 activities worth UGX.3.043Bn that
were assessed, four (04) outputs with thirteen (13) activities and
expenditure worth UGX.2.413Bn were fully implemented while one
(01) output with one (1) activity worth UGX.0.630Bn was partially
implemented.
v) I conducted a special audit on Gratuity Payments and Pension Payroll
for the FYs 2019/2020 to 2023/2024 and issued a separate report
Uganda Warehouse Private Sector Unqualified i) A comparison of the entity’s strategic and annual work plans for the
Receipt Systems Development last three (3) years with the mandate as stipulated in relevant laws
Authority (UWRSA) revealed that the entity had not adequately its mandate.

ii) On 15th July 2024, the President assented to the amended

554
 Warehouse Receipt System (WRS) Act following the Rationalization
of Government Entities and Expenditure Programme. Consequently,
the amendment of the UWRSA Act, 2006 mainstreamed the Authority
and transferred all its functions to the Ministry of Trade, Industry and
Co-operatives.

iii) Liabilities of UGX.308Mn were reported in the Statement of Financial

Position. Continued accumulation of payables poses a risk of litigation
that may eventually lead to payment of penalties and fines for
delayed settlement.
iv) Planned procurements worth UGX.334Mn were not implemented by
30th June 2024.
Uganda Microfinance Private sector Unqualified i) Government took a decision to merge, mainstream and rationalize
Regulatory Authority development Government agencies and Public Expenditure. UMRA was among the
(UMRA) entities that were being rationalized under the RAPEX and this was
extended to 30th June 2025. As a result of this policy shift, the
Uganda Microfinance Regulatory Authority (UMRA) will cease to
operate effective 1st July 2025 and its operations will be
mainstreamed under the Ministry of Finance Planning and Economic
Development.

ii) The Authority continued to irregularly renew licenses to non-

complaint SACCOs who have failed to provide annual returns
contrary to Section 42 (2 & 4) of the Tier 4 Microfinance Institutions
and Money Lenders Act Cap 61.

iii) I noted that although the Accounting Officer had reported in the
commentary to financial statements that 182 complaints were
resolved during the period under review, Management did not
provide evidence to the effect.

iv) 8 planned procurements worth UGX.665.28Mn were not undertaken.

This delays service delivery.

v) The entity had an approved budget of UGX.12.215Bn out of which

UGX.10.885Bn was warranted, resulting in a shortfall of
UGX.1.330Bn, representing an 89% performance.

vi) 4 outputs with 17 activities and expenditures worth UGX.1.414Bn

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 were fully implemented. Ten (10) outputs with 74 activities worth
UGX.4.7Bn were partially implemented. Out of the 74 activities, the
entity fully implemented Thirty-Six (36) activities worth UGX.4.3Bn,
twenty-five (25) activities worth UGX.0.4Bn were partially
implemented, while thirteen (13) activities worth UGX.0.5Bn
remained unimplemented.
Uganda Wildlife Tourism Unqualified i) The entity had an unspent balance of UGX.5.52Bn meant for activities,
Education Center Development which remained either partially or not implemented at all.
(UWEC) ii) The entity had not adequately executed its full mandate in certain
identified areas.
iii) Procurement delays were observed for the Construction Services for
the construction of Mbale Satellite Centre worth UGX 4.735Bn.
iv) The entity was unable to implement 7 planned procurements for UGX
2.165Bn by 30th June 2024 due to late release of funds.
Fostering Agro-Industrialization Unqualified There were no reportable issues
Sustainability and Programme
Resilience for Food
Security in Karamoja
sub-region (UNDP
Project implemented
by MAAIF) for the
year ended 31st Dec
2023

UNFPA funded Community Unqualified i) Expenditure of UGX.11,007,408 lacked sufficient supporting

Programme Mobilization and documentation
implemented by Mindset Change
Ministry of Gender Governance and
Labour and Social Security, Human
Development Capital Development
(MoGLSD) for the
year ended 30th
Sept 2023
UNFPA funded Development plan Unqualified There were no reportable issues
programme implementation
implemented by
Uganda Bureau of
Statistics (UBoS) for

556
the year ended 30th
Sept 2023

UNFPA funded Human Capital Unqualified There were no reportable issues

Programme Development
implemented by Programme
Ministry of
Education and
Sports (MoES) for
the year ended 30th
Sept 2023
UNFPA funded Human Capital Unqualified There were no reportable issues
Programme Development
implemented by
Ministry of Health
(MoH) for the year
ended 30th Sept
2023
UNFPA funded Governance and Unqualified There were no reportable issues
Programme Security
implemented by
Ministry of Justice
and Constitutional
Affairs (MoJCA) for
the year ended 30th
Sept 2023
UNFPA funded Community Unqualified i) There was no evidence of supervision or monitoring of activities that
programme mobilization and have been undertaken by the districts
implemented by mindset change
National Population Human capital
Council (NPC) for development
the year ended 30th
Sept 2023
Allied Health Human Capital Unqualified i) The entity collected/realised UGX.4.797Bn, out of a budget for
Professionals’ Development Revenue of UGX.5.299Bn, representing 90% performance
Council (AHPC), for ii) Out of the available funds of UGX.5.299Bn, the entity utilised
period ended 30th UGX.4.834Bn (91%)
June 2023 iii) Out of the NTR budget of UGX.5.174Bn, the entity collected

557
 UGX.4.689Bn, representing 91% performance
iv) Out of sixty-two (62) activities that were fully quantified, twenty-five
(25) were fully implemented, eight (8) were partially implemented
and twenty-nine (29) were not implemented at all
v) Out of 53 employees, 52 were fully verified and one (1) was not.
vi) The one who was not verified lacked a National Identity Card and
had different names on the NIRA database. This employee had
received total gross salary of UGX.22Mn over the period under
review, which is a financial loss to Government
vii) Five (5) employees on the payroll had inconsistencies in their names
while 9 had inconsistent dates of birth on the payroll compared to
data captured by NIRA on the National IDs.
viii) Out of 65 approved positions, 53 were filled, leaving a gap of 12
positions.
ix) The Council had not enrolled on the IPPS/HCM, which undermines
the rationalisation of the HCM investment
x) The entity’s Financial Manual gave parallel guidance on the
preparation of financial statements, by referring to both
International Public Sector Accounting Standards (IPSAS) and the
Public Finance Management Act.
Centre for Disease Human Capital Unqualified i) A concept note was not prepared for the project causing risk of
Control Project Development duplication of interventions already being implemented by
(Ministry of Health) Government
for period ended ii) A project profile was not prepared before the project was
30th September operationalised with a risk of the implementation commencing
2023 without a clear mechanism for tracking project activities
iii) Neither pre-feasibility study nor detailed feasibility study were
undertaken prior to execution of the project, which creates
iv) Budget monitoring and progress reports were not prepared by
project staff, making it difficult to track the implementation of
planned activities and promptly take corrective action when
bottlenecks are identified
v) The total cumulative disbursements to-date (USD.20,006,785) was
less than expected (USD.24,765,834), resulting in undisbursed funds
of USD.4,759,049
vi) USD.7,541,964 (89%) was available for spending, out of the
approved budget of USD.8,490,781, resulting in a shortfall of
USD.948,817

558
 vii) Out of USD.7,541,964, only USD.7,310,020 (96.9%) was utilized,
resulting in an unspent balance of USD.208,307. The unspent
balance was to be refunded to CDC as per funding agreement.
MUST – VOICES Human Capital Unqualified i) The project had an approved budget of USD 127,669, out of which
Project for the Development USD 119,714 (Opening balance USD 49240 and receipts USD 70474)
period 15th Aug 2022 was available for spending, resulting in a shortfall of USD 7,955.
to 16th Aug 2023 ii) Of the USD 119,714 available to spend, the project expended USD
119,468, leaving a balance of USD 246.
Water Supply and Natural Resources, Unqualified i) Out of the expected cumulative donor disbursement of UGX.61.76Bn
Sanitation in Environment, Climate in the Fifth year of the project implementation, only UGX.41.70Bn was
Refugee Hosting Change, Water and disbursed representing 71% performance.
Communities in Land Management ii) Out of the expected cumulative GoU counterpart funding of
Northern Uganda UGX.19.32Bn, only UGX.9.09Bn was received representing 47%
(KFW) Project performance.
iii) Five (05) activities worth UGX.24.90Bn were sampled to assess
implementation and it was noted none of them was fully
implemented.
iv) The Project had an approved budget of UGX.50.73Bn for the financial
year 2023/2024 out of which UGX.42.50Bn was available for spending
resulting in a shortfall of UGX.8.23Bn representing 84% performance
hence partial and unimplemented activities.
v) Out of the total available funds of UGX.42.50Bn, only UGX.31.00Bn
was absorbed resulting in unspent balance of UGX.1.63Bn
representing an absorption level of 73% which resulted into partial
and delayed service delivery of access improved water sources.
MUST MACT Project Human Capital Unqualified i) Out of the available funds of £71,640, only £67,269 was spent,
for the period 1st Development resulting in unspent balance of £4,371, representing absorption level
June 2021 to 31st of 94%.
May 2022
MUST DE-SIRE for Human Capital Unqualified i) The project had an approved budget of Euros 58,762, out of which
period ended 31st Development Euros 25,672 (44%) was available for spending, resulting in a shortfall
Dec 2022 of Euros 33,090
ii) Out of the total available funds of Euros 25,672, only Euros 14,463
(56%) was spent, resulting in unspent balance of Euros 11,208
Makerere University Human Capital Unqualified i) There was a shortfall of UGX 52,509,725 (8%) from the approved
Center for Health Development budget of UGX 650,120,956, thereby affecting execution of civil works
and Population and fencing of the land using concrete poles and chain link

559
Research (MUCHAP) ii) The Company did not hold Annual General Meeting and Board
Company - 30th meetings as required
June, 2023
MUST MOMS Project Human Capital Unqualified i) Out of the project’s total available funds for the year of USD 25,667,
for period 1st August Development only USD 18,875 (74%) was spent, resulting in unspent balance of
2018 to 14th August USD 6,791.
2019
MUST MRI-NIH Human Capital Unqualified i) Out of the project’s total available funds for the year of USD 94,497,
Project for the Development only USD 80,287 (85%) was spent, resulting in unspent balance of
period 1st Sept 2021 USD 14,351 after adjusting for a reversal.
to 30th June 2022

MUST - National Human Capital Unqualified i) Five payments totalling USD 7,623 were not supported with signed
Institutes of Health Development attendance records
(NIH) Project for ii) MUST undercharged indirect costs to the projects by USD 7,663
various periods iii) PAYE and NSSF deductions were remitted late to the relevant
ending 31st August authorities.
2021
MUST - National Human Capital Unqualified i) A transaction dated 18 June 2023 of USD 9,557 in the transaction
Institutes of Health Development listing, relating to training facilitation paid to a project staff on 23
(NIH) Project for January 2024, was inappropriately included in the transaction listing
various periods for period ended 30th June 2023 for DATs Project.
ending 30th June ii) In addition, a drawdown of USD 14,998 on the DATs Project, made on
2023 23 September 2023, was included in the schedule of income for the
period 1 July 2020 to 30 June 2023.
iii) MUST undercharged indirect costs to the projects by USD 41,149
iv) Pay as You Earn and National Social Security deductions were
remitted late to the relevant authorities.
MUST - National Human Capital Unqualified i) There was no competitive bidding for the procurement of restaurant
Institutes of Health Development services during the proposal development training for undergraduates.
(NIH) Project for ii) Indirect costs of USD 19,355 charged by MUST to the NIH Funded
various periods Projects could not be reconciled.
ending 31st August
2020
MUST - TLD Project Human Capital Unqualified v) Out of the project’s total available funds of USD 52,394, only USD
for the period 1st Development 39,236 (75%) was spent, resulting in unspent balance of USD 13,158
Dec to 30th Nov

560
2022

MUST - Oncology Human Capital Unqualified There were no reportable issues

Project for the Development
period 1st Aug 2016
to 31st July 2017
MUST - PACO project Human Capital Unqualified i) Out of USD 72,998 funds availed to spend, only USD 64,757 (89%)
for the period 1st Development was spent, resulting in unspent balance of USD 8,241
Jan 202 to 31st Dec
2022
MUST - PRADA Human Capital Unqualified i) Out of the total available funds of USD.29,306 (including opening
project for the Development balances of USD.13,133), only USD.6,408 (22%) was spent, resulting
period 1st Sept 2022 in unspent balance of USD.22,898
to 7th Sept 2023
MUST - RASA Project Human Capital Unqualified i) The project had an approved budget of USD.61,744, out of which
for the period 1st Development USD.34,763.71 (56%) was availed resulting in a shortfall of
April 2022 to 31st USD.26,980.29
Mar 2023
MUST - Refugee Human Capital Unqualified i) The project had an approved budget of Euros 45,842, out of which
Integration project Development Euros 21,234.65 (46%) was available for spending, resulting in a
for the period 1st Jan shortfall of Euros 24,607.35.
2022 to 31st Dec
2022
MUST - Rwizi Land Human Capital Unqualified i) The project had an approved budget of €54,643, out of which
Use Project for the Development €50,718 (opening balance €7718 +receipts €43,000) was available for
period ended 31st spending, resulting in a shortfall of €3,925 (7.2%).
Dec 2021 ii) Out of the total available funds of € 50,718 (including opening
balances of €7,718.32) only €45,832 (90.4%) was spent, resulting in
unspent balance of €4,887
MUST - SOCIAL Human Capital Unqualified i) Out of the project’s total available funds of USD 354,255 only USD
NETWORKS Project Development 233,972 (66%) was spent, resulting in unspent balance of USD
for the period 1st Jul 120,283
2021 to 30th June
2022
MUST - TB SPEED Human Capital Unqualified i) The project had an approved budget of €40,125.52, out of which
Project for the Development €34,815 was available for spending, resulting in a shortfall of
period 1st Nov 2021 €5,310.52 (13.2%).

561
to 31st Oct 2022 ii) Out of the total available funds of €34,815, only €28,966 (83%) was
spent, resulting in unspent balance of €5,848

MUST - Skills Human Capital Unqualified i) Out of the project’s total available funds of GBP 11,602.80, only GBP
Acquisition Project Development 10,494 (90.4%) was spent, resulting in unspent balance of GBP
for the period 1st 1,108.62
June 2022 to 31st
May 2023
MUST - Rwizi Land Human Capital Unqualified i) The project had an approved budget of €54,643, out of which
Use Project for the Development €50,718 (opening balance €7718 +receipts €43,000) was available for
period ended 31st spending, resulting in a shortfall of €3,925 (7.2%).
Dec 2021 ii) Out of the total available funds of € 50,718 (including opening
balances of €7,718.32) only €45,832 (90.4%) was spent, resulting in
unspent balance of €4,887
MUST - Skills Human Capital Unqualified i) Out of the project’s total available funds of GBP 11,602.80, only GBP
Acquisition Project Development 10,494 (90.4%) was spent, resulting in unspent balance of GBP
for the period 1st 1,108.62
June 2022 to 31st
May 2023
Uganda Country Human Capital Unqualified i) UGX.3.133Bn (101.7%) was realized out of the budgeted
Coordinating Development UGX.3.080Bn, resulting in excess of UGX.53.168Bn. The excess
Mechanism (UCCM), funding was mainly attributed to GIZ funding which hadn’t been
for the year ended budgeted for
31st December ii) Out of the approved Global Fund budget of UGX.940.5Mn,
2023 UGX.861.6Mn (91.6%), resulting in a shortfall of UGX.78.9Mn
iii) Out of the approved GoU Counter-part funding budget of
UGX.1.770Bn, UGX.1.116Bn (63%) was realized, resulting in a
shortfall of UGX.653.5Mn
iv) Out of the total of UGX.3.651Bn that was available to the entity,
UGX.3.484Bn (95.4%) was spent, resulting in un-spent balance of
UGX.166.7 Mn
v) Out of the five (5) outputs with a total of thirty-nine (39) activities
worth UGX.3.321Bn, one (1) output with one (1) activity and
expenditure worth UGX.1.268Bn was fully implemented while four
(4) outputs with thirty-eight (38) activities and expenditure worth
UGX.2.053Bn were partially implemented.
vi) Contract managers for contracts worth UGX.986.9Mn did not
prepare reports on the progress or completion of the contracts

562
 vii) Out of 9 approved staffing positions, 5 were filled, leaving a gap of 4
positions

MUST – WIMS Human Capital Unqualified i) The project’s total available funds for the year was USD 35,654.21,
Project for the Development out of which, only USD 25,908.76 (73%) was spent, resulting in
Period 1st Sept 2021 unspent balance of USD 9,745.45
to 31st August 2022
MUST - MRI/WOTRO Human Capital Unqualified There were no reportable issues.
project for the Development
period 31st Dec 2020
to 1st Nov 2021

563
Annexure 2: The Consolidated Financial Statements of the Government of the
Republic of Uganda for the financial year ended 30th June 2024

564
Annexure 3: The Consolidated Summary Statement of Financial Performance of
Public Corporations and State Enterprises for year ended 30th June
2024

565
 Audit House,Plot 2C Apollo
Kaggwa Road,
P.O.Box 7083 Kampala.
041-7-336000,
info@oag.go.ug,
Office of the Auditor General
www.oag.go.ug
@OAG_uganda