OFFICE OF THE AUDITOR GENERAL THE REPUBLIC OF UGANDA · 2019. 4. 7. · revolving fund account in Bank of Uganda and Whether on a sample basis the funded projects exist and are operating.
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OFFICE OF THE AUDITOR GENERAL
THE REPUBLIC OF UGANDA
REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF
MPIGI DISTRICT LOCAL GOVERNMENT
FOR THE YEAR ENDED 30TH JUNE 2018
OFFICE OF THE AUDITOR GENERAL
UGANDA
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Table of Contents Opinion ...................................................................................................................................... 1
Basis for Opinion....................................................................................................................... 1
Key Audit Matters .................................................................................................................... 1
1.0 Performance of Youth Livelihood Programme ......................................................... 2
1.1 Underfunding of the Programme ............................................................................... 2
1.2 Non-compliance with the Repayment schedule ....................................................... 3
1.3 Transfer recovered funds to the recovery account in BoU .................................... 3
1.4 Inspection of Nabusanke Youth Piggery Project ..................................................... 3
1.4.1 Lack of Physical address .......................................................................................... 3
1.4.2 Disintegration of Nabusanke Youth Piggery Project ............................................ 4
2.0 Implementation of the Uganda Road Funds ............................................................ 4
2.1 Budget Performance..................................................................................................... 5
2.2 Status of implementation ............................................................................................ 5
2.2.1 Routine manual maintenance ................................................................................. 5
2.2.2 Routine mechanised maintenance ......................................................................... 6
Emphasis of matter ................................................................................................................. 6
3.0 Outstanding Pension and Gratuity Arrears ............................................................... 6
Other Matters ........................................................................................................................... 6
4.0 Lack of Property Valuation List ................................................................................... 7
5.0 Insufficient School Infrastructure ............................................................................... 7
6.0 Status of Lake Victoria Environment Management Project Phase II (LVEMP II) 8
Other Information .................................................................................................................... 9
Management Responsibilities for the Financial Statements ............................................ 10
Auditor General’s Responsibilities for the audit of the Financial Statements ............... 10
Other Reporting Responsibilities ......................................................................................... 12
Report on the Audit of Compliance with Legislation ........................................................ 12
7.0 Management of Natural Resources .......................................................................... 12
7.1 Lack of Lease Register ............................................................................................... 12
7.2 Failure to Secure Land titles ..................................................................................... 12
7.3 Under performance of the district land board ........................................................ 13
7.4 Irregular Issuance of two land titles on the same piece of Land in Kamaliba .. 13
7.5 Lack of a District Environment Committee ............................................................. 14
7.6 Unlicenced Sand mining carried out in the Gazetted Wetlands ......................... 14
7.7 Lack of a District Environment Action Plan ............................................................. 15
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8.0 Status of Basic Medical Equipment at Mpigi HC IV ............................................... 15
9.0 Lack of Physical Development Plans ........................................................................ 16
10.0 Inadequate Funding for the Physical Planning Committee .............................. 17
APPENDICES ........................................................................................................................... 18
Appendix 1: YLP Non - Compliance with Repayment Schedules ................................... 18
Appendix 2: Implementation of Uganda Road Funds ...................................................... 20
Appendix 3: Lack of Land titles ........................................................................................... 22
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TABLE OF CONTENTS
BoU Bank of Uganda
DLG District Local Government
DRC District Roads Committee
HCIV Health Centre IV
IESBA International Ethics Standards Board for Accountants
INTOSAI International Organization of Supreme Audit Institutions
INTOSAI International Organization of Supreme Audit Institutions
Km Kilometre
LGFAM Local Governments Financial and Accounting Manual 2007
LGFAR Local Governments Financial and Accounting Regulations 2007
LGMSD Local Government Management and Service Delivery
MoESTS Ministry of Education Science and Technology and Sports
MoFPED Ministry of Finance Planning and Economic Development
MoGLSD Ministry of Gender Labour and Social Development
NAA National Audit Act
PFMA Public Finance Management Act 2015
P/S Primary School
PS/ST Permanent Secretary/Secretary to the Treasury
S/C Sub-County
UGX Uganda Shillings
YLP Youth Livelihood Programme
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REPORT OF THE AUDITOR GENERAL ON THE AUDIT OF FINANCIAL STATEMENTS
OF MPIGI DISTRICT LOCAL GOVERNMENT
FOR THE YEAR ENDED 30TH JUNE, 2018
THE RT. HON. SPEAKER OF PARLIAMENT
Opinion
I have audited the accompanying financial statements of Mpigi District Local Government
which comprise the statement of Financial Position as at 30th June 2018, and the Statement
of Financial Performance, Statement of Changes in Equity and Statement of Cash Flows
together with other accompanying statements for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies.
In my opinion, the financial statements of Mpigi District Local Government for the year
ended 30th June 2018 are prepared, in all material respects, in accordance with section 51 of
the Public Finance Management, 2015 and the Local Government Financial and Accounting
Manual, 2007.
Basis for Opinion
I conducted my audit in accordance with International Standards of Supreme Audit Institutions
(ISSAIs). My responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of my report. I am
independent of the District in accordance with the Constitution of the Republic of Uganda
(1995) as amended, the National Audit Act, 2008, the International Organization of Supreme
Audit Institutions (INTOSAI) Code of Ethics, the International Ethics Standards Board for
Accountants Code of Ethics for Professional Accountants (Parts A and B) (IESBA Code), and
other independence requirements applicable to performing audits of Financial Statements in
Uganda. I have fulfilled my other ethical responsibilities in accordance with the IESBA Code,
and in accordance with other ethical requirements applicable to performing audits in Uganda. I
believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis
for my opinion.
Key Audit Matters
Key audit matters are those matters that, in my professional judgment, were of most
significance in my audit of the financial statements of the current period. These matters
were addressed in the context of my audit of the financial statements as a whole, and in
forming my opinion thereon, and I do not provide a separate opinion on these matters.
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I have determined the matters described below as the key audit matters to be
communicated in my report.
1.0 Performance of Youth Livelihood Programme
The Youth Livelihood Programme (YLP) is a Government Programme being imple-
mented under the Ministry of Gender, Labour and Social Development (MoGLSD)
through the Local Government Administrations. The programme, which started in the
financial year 2013-2014, was to respond to the existing challenge of unemployment
among the Youth. The programme is implemented through the District and support
to the vulnerable youth in form of revolving funds for skills development
projects and income generating activities.
The audit focused on an amount of UGX.218, 816,000 disbursed to the District in the
Financial Year 2014/2015 whose recovery period of three years had expired by 30th
June 2018. The audit procedures performed included ascertaining the following;
Whether all funds budgeted for YLP during the period under review were actually
released and used only for the program.
Whether all funds advanced to the youth groups were repaid in accordance with the
agreed repayment schedule and to establish reasons for failure or delays to repay
the funds.
Whether all funds recovered during the period under review were transferred to the
revolving fund account in Bank of Uganda and
Whether on a sample basis the funded projects exist and are operating.
I made the following observations;
1.1 Underfunding of the Programme
A review of the approved budget for the YLP program revealed that whereas the
District had budgeted for a total amount of UGX.239,858,231 for the financial year
2014/2015, only UGX.218,816,000 was released resulting in a shortfall of
UGX.21,042,231 (8.8%). This undermined the intended objective of responding to
the challenge of unemployment amongst the Youths.
The Accounting Officer explained that the variance was due to the downward review
of some beneficiary groups budgeted by the MoGLSD YLP programme secretariat
and thus this was beyond the control of the district.
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I advised the Accounting Officer to liaise with MoGLS to ensure allocation of adquate
resources to the program so as to achieve the intended objective.
1.2 Non-compliance with the Repayment schedule
It was observed that whereas the groups funded in 2014/2015 were expected to
have repaid a total amount of UGX.246,080,258 (Interest inclusive) by close of the
financial year 2017/2018, only UGX.47,941,000 was collected leaving a balance of
UGX.198,139,258 (81%) outstanding as shown in Appendix 1.
Delayed repayment was attributed to various causes like; complete failure of some
projects and disagreements among the group members. Failure to repay in a timely
manner implies that other eligible groups were unable to access the funds since this
is a revolving fund.
The Accounting Officer explained that Some projects especially those in piggery
rearing were hit by African Swine fever while those in crops were affected by the
drought that hit Mpigi District in 2015/2016. However, Strategies like partial
withdrawals, training of all beneficiaries and close monitoring have been put in place
to boost the recovery of funds.
I advised the Accounting Officer to re-enforce collection measures.
1.3 Transfer recovered funds to the recovery account in BoU
A review of the bank statements of YLP collection account revealed that the District
collected UGX. 47,941,000 and transferred all the funds to the National Revolving
Fund Collection Account by the end of the financial year 2017/20188.
1.4 Inspection of Nabusanke Youth Piggery Project
Physical inspection carried out on Nabusanke Youth Piggery Project in Nkozi Sub-
county (2014/2015) to ascertain whether it was in existence and executed in
accordance with the operational guidelines showed the following observations;
1.4.1 Lack of Physical address
Section 2.8 (f) of the project guidelines requires the enterprise to have a clear
physical address/location. Where the enterprise requires land, the ownership and
legal status of the land should be established through a valid land agreement/ or
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land title. However; I noted that the Piggery project was situated on a rented land
with a (3) year expiry rental period after which the land reverted to the landlord
including the structure for the piggery.
There was no signpost to ease identification of the project. I could not therefore
confirm that the project visited was indeed Nabusanke Piggery Youth Project. The
Accounting Officer indicated that he was aware of the land tenancy and advised the
group to re-instate the sign post.
I advised the Accounting Officer to ensure the signpost is installed.
1.4.2 Disintegration of Nabusanke Youth Piggery Project
Nabusanke Youth Piggery Project was in existence in 2014 when they received
funding. Interview with the chairperson of the project showed that swine fever killed
four (4) pigs out of ten (10), two (2) were stolen and the rest eventually died which
marked the collapse of the project. I noted there was no re-scheduling of
repayments made in regard to the calamity.
Failure to comply with operational guidelines and inadequate monitoring and
sensitization could be partly responsible for the disintergration of Nabusanke Youth
Piggery Project.
The Accounting Officer indicated that consultations were made with the Ministry of
Gender to re-shedule the payments for the projects affected by calamities. I await
the outcome of the Accounting Officer’s consultations.
2.0 Implementation of the Uganda Road Funds
Section 45 (3) of the Public Finance Management Act, 2015 states that “ An
Accounting Officer shall enter into an annual budget performance contract with the
Secretary to the Treasury which shall bind the Accounting Officer to deliver on the
activities in the work plan of the vote for a Financial year, submitted under section
13 (15)” of the said Act.
Regulation 18(3) of the Local Government Financial and Accounting Regulations
2007 requires budget estimates to be based on objectives to be achieved for the
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financial year and during implementation, effort to be made to achieve the agreed
objectives or targets as per the programme of Council.
It has been observed over years that planned and budgeted for activities of a
number of Local Governments are not implemented thereby affecting service
delivery.
During the overall office wide planning, I identified risks such as inadequate release
of funds and failure to undertake budget monitoring and supervision that are likely to
be the causes of failure to implement the planned activities under Uganda road fund.
The focus was put on the planned major outputs under Uganda Road Fund which
greatly impact on service delivery in the Local Governments.
Consequently, I developed specific audit procedures which included ascertaining
whether;
The budgeted URF releases for Local Governments for the year under review
were actually received ;
The planned URF outputs were achieved;
Based on the procedures performed, the following observations were made;
2.1 Budget Performance
A total of UGX.474, 155,000 was budgeted to cater for routine manual maintenance,
routine mechanised maintenance, periodic maintenance and emergency activities on
several district roads using Road gangs and the force Account mechanism. However,
the district received UGX.465, 284,580 (98.1%) resulting into a deficit of UGX.8,
870,420.The deficit constituted 1.9% of the budgeted amount.
2.2 Status of implementation
A review of planned outputs against actual performance is shown in Appendix 2
2.2.1 Routine manual maintenance
A total of 77.81kms at an estimated cost of UGX.49,000,000 was planned to be
undertaken. Audit observed that the planned distance of 77.81kms was fully
achieved at a cost of 45,622,000 (93% of budget) leading to a saving of UGX.3,
378,000.
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2.2.2 Routine mechanised maintenance
A total of 78.01kms at an estimated cost of UGX.325, 674,000 was planned to be
undertaken. Audit revealed that 78.01kms were all undertaken as planned at a cost
of UGX.303, 407,000 (93%) reflecting a saving of UGX.22, 267,000 (6.8%) of the
budget.
Inspection of the road works revealed that Bukasa-Muyanga Road measuring 6.4Km
had insufficient drainage and culverts along Muyanga swamp that caused water to
cross the road while Lubugumu-Migamba Road measuring 6.0Km had overgrown
vegetation along most of the sections as shown in the picture below:
Picture showing Water crossing the road at Muyanga swamp along Bukasa-Muyanga Road
Picture showing overgrown shoulders along Lubugumu-Migamba Road
This was attributed to in adequate maintenance. The Accounting Officer explained
that the challenges observed were caused by the heavy rains but the district planned
to install 20 culvert lines to handle Muyanga swamp and also to clear bottlenecks on
other roads.
I await the outcome of the Accounting Officer’s Commitment.
Emphasis of matter
Without qualifying my opinion, I draw attention to the following matter disclosed in note 23
in the financial statements.
3.0 Outstanding Pension and Gratuity Arrears
The District had accumulated pension and gratuity arrears of UGX.497, 939,076 and
UGX.207, 833,361 respectively. Accumulation of pension and gratuity arrears poses
challenges to the claimants and Public outcry. I advised the Accounting Officer to
follow up the matter with MoFPED and Ministry of Public Service to ensure that
outstanding amounts are settled.
Other Matters
In addition to the matter raised above, I consider it necessary to communicate the following
matters other than those presented or disclosed in the financial statements.
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4.0 Lack of Property Valuation List
Section 4 of the Local Authority Rating Act, 2005 requires that the local authority
shall cause to be made for every rating area, within its limits the first valuation list
and thereafter a valuation list once at least in every five years, or such longer period
as the minister may approve.
However, there was no evidence that property valuation has ever been carried out in
the district. This implies that all the properties in the District have not been included
on the district’s valuation list. This leads to under collection of local revenue due to
lack of data base for properties. The Accounting Officer explained that the District
was planning to value all the properties in its urban centers within the six sub-
counties though it involves a huge cost.
I advised the Accounting Officer to prioritize the competent valuation of properties.
5.0 Insufficient School Infrastructure
Paragraph 2.2.1 of the revised Local Governments (LGMSD) Operational Manual
provides minimum service delivery package for a primary school. The package
includes; classrooms; pupil desks, pit latrines (for pupils and teachers), teachers
desks, teachers chairs, teachers houses and water availability. Inspection of a
Manyogaseka Primary School revealed a poor state of infrastructure as detailed
below;
State of
Infrastructure
Current status
Dilapidated
stances
The stances for pupils and teachers were dilapidated and lacked shutters as
shown in the pictures below;
Photo showing Old Girls’ Stances without
shutters
Photo showing Dilapidated stances shared
among pupils and teachers
Dilapidated
classroom
block
I observed that the classrooms were very old and there was a hole in the P6
classroom as shown below;
Picture showing hole in P.6 classroom
This risks the lives of pupils as the roof could cave in due to the weak walls.
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Inadequate
staff quarters
The school currently has 3 staff houses which are shared by 6 staff while the
current staff level is eight (8).
Lack of safe
water source
The school has no water source and thus pupils move about 2Kms to the
nearest shallow well for water which affects the pupil’s performance since a
lot of time is spent on collecting water.
Low
enrolment
Inspection of the school in the third week of the term indicated that the
school had 122 pupils only. Management attributed this to the remoteness of
the school.
I advised the Accounting Officer to take up the matters with responsible authorities
to ensure the current challenges are addressed.
6.0 Status of Lake Victoria Environment Management Project Phase II (LVEMP
II)
During the year under review, the District funded 5 CDD community sub-projects at
a total cost of UGX.302, 918,191 as shown below;
S/N Project Sub county Funding
1 Improving sanitation and hygiene at Senyondo landing site Buwama 60,000,000
2 Value addition for Mukene fish at Senyondo landing site Buwama 51,000,000
3 Poultry farming at Kamaliba landing site Nkozi 60,000,000
4 Piggery farming at Kamaliba landing site Nkozi 60,000,000
5 Intensive Goat rearing at Kamaliba landing site Nkozi 71,918,191
Total 302,918,191
Inspection of the projects at Kamaliba landing site revealed the following anomalies;
Project details Observation
Name: Poultry farming at Kamaliba Landing Site Location: Nkozi Sub-county Amount received: UGX.60,000,000 Date inspected: 1-Oct-18
The group was funded to procure 1,500 birds but only 1,300 birds were delivered. Only 230 birds were found on site leaving 1,070 unaccounted for.
The drinkers and feeders were poorly placed and thus the birds could contaminate the water and feeds. See the pictures below;
Chicken feeders and drinkers placed on the ground.
Name: Piggery farming at Kamaliba Landing Site Location: Nkozi Sub-county Amount received: UGX.60,000,000 Date inspected: 1-Oct-18
Out of 32 pigs purchased, only 9 pigs were found on ground. 23 pigs were not accounted for;
No records of income and expenditure were maintained thus I could not confirm project sustainability.
Feeding and watering troughs were not properly placed and thus feeds were poured on the ground. This could cause contamination during
feeding, see the pictures below.
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Photo showing pig feeding on the ground
Name: Intensive goat farming at Kamaliba Landing Site Location: Nkozi Sub-county Amount received: UGX.71,918,191 Date inspected: 1-Oct-18
Out of 45 exotic goats procured, only 27 goats were found on ground. 18 goats were not accounted for.
Goat houses were found untidy with no feeding and water points/troughs. Furthermore, there were no mineral licks seen on ground.
The plan was to have the goats kept under zero grazing. However, they were found free range grazing as shown below;
Picture showing a seemingly sickly and isolated goat
There is a risk that project objectives may not be achieved. The accounting officer
explained that there was a dispute over ownership of the land where the projects
were located which resulted into litigation whereby court ordered eviction of the
beneficiaries.
I advised the Accounting Officer to ensure close supervision of the project to get the
anomalies rectified.
Other Information
The Accounting Officer is responsible for the other information. The other information
comprises the statement of responsibilities of the Accounting Officer and the commentaries
by the Head of Accounts and the Accounting Officer, and other supplementary information.
The other information does not include the financial statements and my auditors’ report
thereon. My opinion on the financial statements does not cover the other information and I
do not express an audit opinion or any form of assurance conclusion thereon.
In connection with my audit of the financial statements, my responsibility is to read the
other information and, in doing so, consider whether the other information is materially
consistent with the financial statements or my knowledge obtained in the audit, or otherwise
appears to be materially misstated. If, based on the work I have 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.
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Management Responsibilities for the Financial Statements
Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and
Section 45 of the Public Finance Management Act, 2015, the Accounting Officer is
accountable to Parliament for the funds and resources of Mpigi District Local Government.
The Accounting Officer is also responsible for the preparation of financial statements in
accordance with the requirements of the Local Governments Financial and Accounting
Manual, 2007 and the Public Finance Management Act 2015 and for such internal control as
management determines necessary to enable the preparation of financial statements that
are free from material misstatement whether due to fraud or error.
In preparing the financial statements, the Accounting Officer is responsible for assessing
the District’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting, unless the unless
the Accounting Officer has a realistic alternative to the contrary.
The Accounting Officer is responsible for overseeing the District’s financial reporting process.
Auditor General’s Responsibilities for the audit of the Financial Statements
My objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISSAIs will always detect
a material misstatement, when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in aggregate, they could reasonably be expected to
influence the economic decisions of users, taken on the basis of these financial statements.
As part of an audit in accordance with ISSAIs, I exercise professional judgement and
maintain professional scepticism throughout the audit. I also:-
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.
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Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on
the Company’s ability to continue as a going concern. If I conclude that a material
uncertainty exists, I am required to draw attention in my auditor’s report to the
related disclosures in the financial statements or, if such disclosures are inadequate,
to modify my opinion. My conclusions are based on the audit evidence obtained up
to the date of my auditor’s report. However, future events or conditions may cause
the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
I communicate with the Accounting Officer regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that I identify during my audit.
I also provide the Accounting Officer with a statement that I have complied with relevant
ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on my
independence, and where applicable, related safeguards.
From the matters communicated with the Accounting Officer, I determine those matters that
were of most significance in the audit of the financial statements of the current period and
are therefore the key audit matters. I describe these matters in my auditor’s report unless
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.
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Other Reporting Responsibilities
In accordance with Section 19 (1) of the National Audit Act, 2008, I report to you, based on
my work described on the audit of Financial Statements, that; except for the matters raised
in compliance with legislation section below, and whose effect has been considered in
forming my opinion on financial statements, the activities, financial transactions and
information reflected in the financial statements that have come to my notice during the
audit, are in all material respects, in compliance with the authorities which govern them.
Report on the Audit of Compliance with Legislation
The material findings in respect of the compliance criteria for the applicable subject matters
are as follows;
7.0 Management of Natural Resources
A review of management of natural resources in form of land, forests reserves and
wetlands, in the districts during the year revealed the following;
7.1 Lack of Lease Register
Section 60(1) (c) of the Land Act, 1998 as amended empowers the District Land
Board to take over the role and exercise the powers of the lessor in the case of a
lease granted by a former controlling authority. However the District did not maintain
a lease register showing the lease period, status of present land usage or occupancy
and others.
This makes it difficult to ascertain the current status of the leased properties causing
failure to track the expiry of leases, revenue accruing from lease renewals and
annual ground rent.
The Accounting Officer promised to put the register in place.
I await the outcome of the Accounting Officer’s promise.
7.2 Failure to Secure Land titles
Section 44 (1) of the Uganda Land Act, 1998 as amended states that a Government
or local Government shall hold in trust for the people and protect natural lakes,
rivers, ground water, natural ponds, natural streams, wetlands, forest reserves,
national parks and any other land reserved for ecological and touristic purposes for
the common good of the citizens of Uganda.
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On the contrary; I noted that the district does not have legal ownership of most of
the land it possesses including Schools, Health units, Sub-counties and other district
projects as most of it is claimed by the Buganda Land board. See Appendix 3.
Failure to secure land titles exposes the district to the risks of encroachment, land
grabbing and conflicts among others. The Accounting Officer explained that the
District was negotiating the terms of tenure for the land with institutions with
Buganda Land Board.
I wait the outcome of these endeavours.
7.3 Under performance of the district land board
Section 63(3) of the Land Act 1998, (with the amendment Act) states that the
District Land Board shall meet for the discharge of its functions under this Act at
least once in every two months at such a place and time as the Chairperson shall
appoint. Section 60(3) of the Land Act CAP 227 (with Amendment Act) 2004 & 2010
further states that the District Land Board shall prepare and publish an annual report
and shall have regard to any comments that the district council may make on that
report.
Contrary to the above, I noted that Mpigi district land board did not sit during the
financial year under review and consequently did not produce an annual report.
Failure to perform denied the public vital information about land matters in the
District. The Accounting Officer explained that the board was new and had not been
inducted to start operations.
I advised the Accounting Officer to prioritise induction of the board and have it
functional.
7.4 Irregular Issuance of two land titles on the same piece of Land in
Kamaliba
Section 60(1) (a) of the Land Act, 1998 as amended empowers a District Land Board
to hold and manage any land in the District which is not owned by any person or
authority. The Board is required to facilitate the registration and transfer of interests
in public land within its jurisdiction. However, a review of the District Council Minutes
revealed that the District Land Board irregularly issued two land titles on the same
piece of land in Kamaliba.
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Issuing of multiple land titles on the same piece of land is fraudulent and it exposes
the District to a risk of causing financial loss to Government through litigation and
eventual court awards to the agreed parties.
The Accounting Officer confirmed that two land titles were issued on the same piece
of land in Kamaliba and indicated that the issue was being handled by a team from
State House.
I advised the Accounting Officer to liaise with affected parties and authorities
mandated to handle law matters to find an amicable solution to the anormaly.
7.5 Lack of a District Environment Committee
Section 14 of the National Environment Act, 1995 requires that there be a District
environment committee to ensure adequate monitoring and supervision of the usage
of Natural Resources under the Districts. On the contrary; I noted that the district did
not have an approved District Environment Committee. Natural resources under the
District are therefore prone to depletion and encroachment.
The Accounting Officer explained that the district was seeking guidance from NEMA
in regard to appointment of members.
I advised the Accounting Officer to prioritise the matter and ensure that a District
Environment Committee is established.
7.6 Unlicenced Sand mining carried out in the Gazetted Wetlands
According to Sec. 38(3) of the National Environment Management Act, the authority
may, in consultation with the lead agency and the district environment committee,
declare any wetland to be a protected wetland, thereby excluding or limiting human
activities in that wetland while Sec.36 provides for restrictions on the use of wetlands
and requires a person to obtain written approval from the authority given in
consultation with the lead agency.
Contrary to the law, I observed encroachment and illegal activities on gazetted
wetlands including sand mining at Luwewe village, Kawumba parish in Buwama Sub-
county and Busese A village, Busese Parish in Nkozi Sub-county as shown in the
pictures below;
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Picture showing illegal barrow pit at Luwewe village, Kawumba parish in Buwama Sub-county
Picture showing Illegal sand mining at Busense A village, Busense parish in Nkozi Sub-county
I further noted that the district does not obtain revenue from the sand mining
activities despite the fact that Lorries/trucks over-loaded with sand have continued to
destroy the roads causing maintenance of the district roads so frequent and costly.
The continued undertaking of such practices on natural resources will continue to
have adverse effects on the environment like climate change and unbalanced eco
system. The Accounting Officer explained that the matter was brought to the
attention of NEMA who has since promised to provide guidelines for easy
enforcement.
I advised the Accounting Officer to ensure un authorized activities are stopped and
encroachers evicted.
7.7 Lack of a District Environment Action Plan
Section 18 of the National Environment Act, 1995 states that every district
environment committee shall in consultation with the authority, prepare a district
environment action plan to be revised every three years or such other lesser period
as may be considered necessary by the authority. However, I noted that the District
did not have a district environment action plan as required by the law. In the
circumstances, there is a risk that protection of natural resources may not be given
due attention.
The Accounting Officer explained that consultations were underway with the National
Environment Management Authority to have a district environment action plan
developed.
I advised the Accounting Officer to expedite the process.
8.0 Status of Basic Medical Equipment at Mpigi HC IV
Section 5.17.1 of the Health Sector Service standards & Service delivery standards,
2016 requires each health facility to ensure that appropriate medical equipment is
16
available for service delivery and level of care. However; inspection of the medical
equipment at Mpigi HC IV revealed that the health centre lacked some of the
required equipment and those available were in a poor condition as shown below;
Department Summary of the General observations
Theatre Unused Boyles Machine due to lack of oxygen cylinder and inhalation drugs.
Lack of power surge protection for equipment including Operating lamp,
Autoclaves, Suction Machine and Oxygen concentrator.
Poor quality of light from the operating lamp.
Maternity Un-used autoclave machine
Lack of a resuscitation table
Lack of sufficient beds and mattresses
Use of one examination screen to handle the over 250 monthly deliveries
Lack of an incinerator
Long distance between maternity ward and bathrooms thus mothers bath in the
ward.
Laboratory Lack of Service Level Agreements for auxiliary equipment including Microscopes,
Centrifuges, refrigerators, computers and fire extinguishers.
Lack of safety and protective gear for staff handling specialised medical
equipment.
Lack of reagents for some equipment like Glucometer for testing random blood
sugar, Haematological Analyser for complete blood count and fact count
machine for CD4 count.
The Accounting Officer explained that orders for reagents have always been made to
National medical stores but deliveries were either insufficient or not made. However,
the Health Centre is under phased upgrade to a District Hospital and it was hoped
this would alleviate many of the challenges.
I advised the Accounting Officer to lobby the Ministry of Health and ensure that the
facility is sufficiently equipped.
9.0 Lack of Physical Development Plans
Section 10 of the physical planning Act requires local physical development plans to
be prepared through its officers, agents or any qualified physical planners. Contrary
to the requirement, the district did not have physical development plans to enable
and or guide development activities within its boundaries. Lack of physical
development plans makes it difficult to plan and streamline development activities
within the district. The Accounting Officer explained that the district had started
developing local physical development plans to be submitted to the physical planning
committee for approval.
17
I advised the Accounting Officer to prioritize the development of physical
development plans.
10.0 Inadequate Funding for the Physical Planning Committee
Part III of the physical planning Act 2010 requires each relevant authority to
establish a physical planning committee which is supposed to approve development
applications relating to housing estates, industrial location, schools, petrol stations,
dumping sites or sewerage treatment, which may have injurious impact on the
environment as well as applications in respect of land adjoining or within a
reasonable vicinity of safeguarding areas.
However; it was observed that the committee had inadequate funding to carry out all
its mandated activities as it only relies on local revenue that was meager and shared
by the whole district. Underfunding hampers physical planning activities of the
district and could lead to congestion and unplanned developments as the District is
increasingly becoming densely populated.
The Accounting Officer promised to improve the allocation for the committee in the
coming budgets.
I await the outcome of the Accounting Officer’s commitment.
John F.S. Muwanga AUDITOR GENERAL
KAMPALA
14th December, 2018
18
APPENDICES
Appendix 1: YLP Non - Compliance with Repayment Schedules
S/N NAME OF YOUTH GROUP DATE OF
RECEIPT
AMOUNT
RECEIVED
INTEREST TO
DATE
AMOUNT DUE AMOUNT
RECOVERED
BALANCE
OUTSTANDING
1 Buyala Youth Poultry Project 4-Jun-15 8,000,000 1,212,136 9,212,136 310,000 8,902,136
2 Malima Youth Dreamers Poultry Project 4-Jun-15 8,000,000 1,085,723 9,085,723 1,310,000 7,775,723
3 Muduuma St. Jude Youth Care Poultry Project 4-Jun-15 8,300,000 1,128,550 9,428,550 1,227,000 8,201,550
4 Walukunyu Twegate Youth Piggery Project 4-Jun-15 6,508,000 691,974 7,199,974 2,118,000 5,081,974
5 Bugonja Tiger Football Club Poultry Project 4-Jun-15 8,400,000 1,220,238 9,620,238 1,000,000 8,620,238
6 Kayabwe Youth Carpentry and Joinery Project 4-Jun-15 8,150,000 1,253,119 9,403,119 200,000 9,203,119
7 Nabusanke Youth Piggery Project 4-Jun-15 8,250,000 1,268,881 9,518,881 200,000 9,318,881
8 Kiswa Modern Youth Poultry Project 5-Jun-15 7,915,000 1,247,602 9,162,602 0 9,162,602
9 Sserinyabbi Togaya Kyezinze Youth Poultry Project 5-Jun-15 8,000,000 1,160,120 9,160,120 640,000 8,520,120
10 Siigi Youth Poultry Project 8-Jun-15 7,915,000 1,154,603 9,069,603 590,000 8,479,603
11 Luwunga B Tukolerewamu Poultry Project 8-Jun-15 9,430,000 94,575 9,524,575 8,830,000 694,575
12 Kasawo Youth Poultry Project 10-Jun-15 8,000,000 518,586 8518586 4,710,000 3,808,586
13 Katende Youth Computer Training Initiative 10-Jun-15 9,197,000 769,771 9,966,771 4,450,000 5,516,771
14 Bukasa Zinunula Poultry Project 10-Jun-15 8,400,000 55,169 8,455,169 8,050,000 405,169
15 Lwajja-Kinakukka Suubi Lyabona Youth Piggery
Project`
10-Jun-15 7,522,000 665,493 8,187,493 3,300,000 4,887,493
16 Mpambire A Twegatte Youth Piggery Project 10-Jun-15 7,388,000 975,384 8,363,384 1,200,000 7,163,384
17 Park Village Youth Book Making Project 10-Jun-15 8,000,000 1,261,000 9,261,000 0 9,261,000
18 Bukibira Tusuubira Youth Piggery Pproject 10-Jun-15 7,440,000 565,691 8,005,691 4,056,000 3,949,691
19 Kitawanulwa Akutwala Ekiro Youth Piggery Project 18-Jun-15 8,000,000 1,261,000 9,261,000 0 9,261,000
20 Nabiteete Agali Awamu Youth Ginger Growing Project 1-Jul-15 7,988,000 1,117,246 9,105,246 900,000 8,205,246
21 Nsujjuwe Afaayo Youth Soap Processing Project 1-Jul-15 8,000,000 1,213,713 9,213,713 300,000 8,913,713
22 Mayembe Lower Youth Sculpture & Wood Curving
Project
6-Jul-15 8,000,000 1,261,000 9,261,000 0 9,261,000
19
23 Buwama ‘A’ Twezimbe youth poultry project 7-Jul-15 8,000,000 1,024,563 9,024,563 1,500,000 7,524,563
24 Katende Tukolere Wamu Youth Poultry Project 7-Jul-15 8,000,000 1,251,000 9,251,000 200,000 9,051,000
25 Nakabiso Youth Dairy Farming Project 7-Jul-15 8,000,000 1,201,000 9,201,000 1,200,000 8,001,000
26 Jjalamba Twekembe Youth Poultry Project 12-Aug-15 8,000,000 1,166,425 9,166,425 600,000 8,566,425
27 Kikunyu Youth Strong Hands Art & Craft Project 4-Sep-15 10,013,000 1,439,699 11,452,699 1,050,000 10,402,699
Total 218,816,000 27,264,258 246,080,258 47,941,000 198,139,258
20
Appendix 2: Implementation of Uganda Road Funds
Intervention Planned Length (km)
Actual length (km)
Variance (km)
Planned expenditure (UGX)
Actual expenditure (UGX)
Variance (UGX) Audit Remarks
Routine Mechanized Maintenance
Kikunyu-Kibanga 11.4 11.4 0 53,800,000 35,206,000 18,594,000 Target achieved
Katonga -Muduuma 7.63 7.63 0 15,200,000 12,058,000 3,142,000
Muduuma -Nswanjere 2.83 2.83 0 5,660,000 5,569,000 91,000
Nabyewanga-Jjiri 8.15 8.15 0 16,300,000 16,300,000 0
Mbizinya –Kumbya-Jalamba 7.3 7.3 0 47,600,000 32,297,000 15,303,000
Lubugumu-Migamba 6.0 6.0 0 37,214,000 37,248,000 -34,000
Equator-Wassozi 4.8 4.8 0 9,600,000 9,272,000 328,000
Kayabwe -Bukasa 12.0 12.0 0 0 15,366,000 -15,366,000 Expenditure not budgeted for.
Kayunga-Kankobe-Bukibira 4.5 4.5 0 9,000,000 8,216,000 784,000
Bukasa -Muyanga 6.4 6.4 0 51,300,000 46,618,000 4,682,000
Kinyika -Kituntu 7.0 7.0 0 36,000,000 49,497,000 -13,497,000 Output achieved but overspent
Supply and Installation of culverts (20 Lines) 44,000,000 35,760,000 8,240,000
Sub Total 78.01 78.01 0 325,674,000 303,407,000 22,267,000
Routine Manual Maintenance
Kibukuta –Kituntu-Bukemba-Bukasa 15.6 15.6 0 10,500,000 5,700,000 4,800,000 Output target met
Nkozi –Kasse -Nabusanke 4.08 4.08 0 3,750,000 1,200,000 2,550,000
Jjeza –Kibumbiro-Katuuso 12 12 0 7,750,000 4,500,000 3,250,000
Buwe -Kanabagege 2.5 2.5 0 1,450,000 0 1,450,000
Buwere -Ntolomwe 6.6 6.6 0 2,912,000 6,248,000 -3,336,000 Overspent by 115%
Kamengo –Butoolo-Buvumbo 11.37 11.37 0 6,500,000 14,174,000 -7,674,000 Output achieved but overspent
Butoolo –Sanya -Namugabo 9.31 9.31 0 5,450,000 9,000,000 -3,550,000 Overspent by 65%
Nakirebe -Sekiwunga 9.66 9.66 0 5,700,000 3,000,000 2,700,000
Kalandazi -Buwungu 6.69 6.69 0 4,500,000 1,800,000 2,620,000
Sub-Total 77.81 77.81 10.1
49,000,000 45,622,000 3,378,000 6.9%of budgeted funds not realised/spent.
Other qualifying works expenditures
Fuel for supervision of road works 16,358,000 -16,358,000
Maintenance of Office equipment 1,000,000 816,000 184,000
Equipment Repairs 71,321,000 66,884,580 4,436,420
District Road Committee operations 4,000,000 1,136,000 2,864,000
Supervision / Monitoring 17,153,000 30,786,000 -13,633,000
Payment for office utilities 3,000,000 0 3,000,000
21
Road condition assessment and training 3,007,000 275,000 2,732,000
Sub-Total 99,481,000 116,255,580 -16,774,580 Overspent by 17%
Grand Total 474,155,000 465,284,580 -8,870,420
22
Appendix 3: Lack of Land titles
Schools, health centres and other district-sub-county projects without land titles
No County Administration Sub-county Parish Village
1 Mawokota Kammengo Butoolo
No Sub-counties Sub-county Parish Village
1 Kammengo Kammengo
2 Kiringente Kiringente
3 Muduuma Muduuma
4 Buwama Buwama
5 Nkozi Nkozi
6 Kituntu Kituntu
No Schools Sub-county Parish Village
Primary
1 St. Damiano Makumbi Kammengo Butoolo Makumbi
2 St. Annes Ggoli Kammengo/Sabaddu
3 Kammengo Ssabadu
4 Ggoli Boys Seeta-Ggoli
5 Kataba Kanyike/ Kataba
6 Gunda Mumyuka A Gunda
7 Kanyike Kanyike A
8 Tabiro P/S Kanyike B
9 Kikunyu P/S Kikunyu A
10 Kibanga Kibanga/ Kibanga
Lwaggwa
11 Mpondwe Mpondwe
12 Kabira Umea Kwaba- Kibira
13 Kyanja Kyanja
14 Kyagalanyi Kyagalanyi
15 St. Mary's Masaka Luwala Masaka
Muyira
16 Magejjo Mumyuka B Magejjo
17 Mbute Mbute
23
18 Nsumba C/U Musa Nsumba A
19 Nsumba C/S Nsumba B
20 Ssama Ssama
21 St. Francis Musa Musa
22 St. Martin Buyiga Buyiga A
23 Sekkazza M P/S Kiringente Kavule/ Kavule
24 St. J.B Katende Kavule
Sabaddu Kikondo/
25 Nakirebe P/S Sabawali Nakirebe
26 Wamatovu P/S Kikondo
27 Kikondo P/S Kikondo
28 Luvumbula P/S Luvumbula/ Luvumbula
29 Manyogaseka P/S Luvumbula
30 Sekiwunga P/S Sekiwunga/ Sekiwunga
31 Mabuye Katende P/S Musaale Mabuye
32 Galatiya P/S Galatiya
Muduuma Bulerejje/
33 Kibumbiro P/S Mumyuka Kibumbiro
34 Jjeza Day & Boarding Jjeza/ Sabawaali Jjeza A
35 Kisamula C/S Lugyo/Sabagabo Kisamuula- Lugyo
36 Buyala C/U Sabagabo Buyala - Naziri
37 Bujuuko Umea P/S Bujuuko - Kasana
38 Bujuuko C/S P/S Bujuuko - Kasana
Magala
Sabaddu
39 Mawugulu P/S Gimbi/Mawungulu
Malima/
Sabaddu
40 Ndibulungi P/S Ndibulungi
41 Nkambo P/S Nkambo
42 Tribogo P/S Tiribogo/ Tiribogo
43 St. Charles P/S Mutuba I Muduuma
44 Bulamu P/S Bulamu
Buwama Bongole Saabaddu
24
45 Maggya P/S Maggya
46 Mitala Maria P/S Mitala - Maria NTC
Bunjako
Mutuba III
47 Bunjako P/S Bunjako
Buyijja
48 Buyijja Kabira P/S Buyijja
49 Kabira C/U Kabira/Jjobya
50 St. Joseph Ntambi P/S Jjalamba Jjalamba
51 Jjalamba P/S Jjalamba
52 Bulunda C/U Katebo/Bulunda Bulunda
53 St. Francis Bulunda P/S Bulunda
54 Kawumba P/S Kawumba Kawumba
55 Lunsunsa P/S Lunsunsa
56 Kigwanya P/S Kigwanya
Mbizinya
57 Equator Parents P/S Buwama A
58 Buwere P/S Nabiteete Buwere A
59 Buwungu P/S Buwungu- Lutengo
60 St. Balikuddembe P/S Sango/ Buyiwa
61 Sango P/S Mumyuka Ssango A
62 Buwanda P/S Buwanda
63 Mpigi Umea Kyasanku
WARD C
64 Kibuuka Mem. Mbale
65 Bessania P/S Bukakala
66 St. Kizito WARD D Mayembe Upper
67 Bugayi Founddation Bugayi
68 Nkonge Mixed P/S Nkonge
No Health Centres Sub-county Parish Village
1 Butoolo Health centre III Kammengo Butoolo Butoolo
2 Kampirigisa H.C III Kammengo Kampiringisa
4 Kibumbiro H.C II Kiringente Kibumbiro
25
5 Muduuma H.C III Muduuma Mutuba I Muduuma
6 Bunjako H/Centre III Buwama Bunjako
7 Buwama H.C III Buwama Buwama A
8 Kituntu H.C II Kituntu
Nkozi
Mpigi Town
9 Mpigi Health Centre IV Council Ssabwe Hill
10 DDH's Clinic II Kyasanku
11 Kafumu H/centre III Kafumu Kisaliza
No Others Subcounty Parish Village
RGC Bujuuko Muduuma
District staff houses Mpigi Town Council
LGSMDP Inventories
Valley Dams
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