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