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Uganda Road Fund Annual Report FY 2011-12

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Uganda Road Fund Annual Report FY 2011-12 ANNUAL REPORT 2011-12 Telephone : 256 41 4707 000 Ministry of Finance, Planning : 256 41 4232 095 & Economic Development Fax : 256 41 4230 163 Plot 2-12, Apollo Kaggwa Road : 256 41 4343 023 P.O. Box 8147 : 256 41 4341 286 Kampala Email : [email protected] Uganda. Website : www.finance.go.ug THE REPUBLIC OF UGANDA In any correspondence on this subject please quote No. ISS 140/255/01 16 Dec 2013 The Clerk to Parliament The Parliament of the Republic of Uganda KAMPALA. SUBMISSION OF UGANDA ROAD FUND ANNUAL REPORT FOR FY 2010/11 In accordance with Section 39 of the Uganda Road Act 2008, this is to submit the Uganda Road Fund Annual performance report for FY 2011/12. The report contains: a) The Audited accounts of the Fund and Auditor General’s report on the accounts of the Fund for FY 2011/12; b) The report on operations of the Fund including achievements and challenges met during the period of reporting. It’s my sincere hope that future reports shall be submitted in time as the organization is now up and running. Maria Kiwanuka MINISTER OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT cc: The Honourable Minister of Works and Transport cc: The Honourable Minister of Local Government cc: Permanent Secretary/ Secretary to the Treasury cc: Permanent Secretary, Ministry of Works and Transport cc: Permanent Secretary Ministry of Local Government cc: Permanent Secretary Office of the Prime Minister cc: Permanent Secretary Office of the President cc: Chairman Uganda Road Fund Board TABLE OF CONTENTS Abbreviations and Acronyms iii our vision iv our mission iv core values iv Statement by the Board Chairman v Statement by the Executive Director vi 1.0 General Introduction 1 1.1 Our Business 1 1.2 Statutory Objectives 1 1.3 Strategic Objective 1 1.4 Specific Objectives 1 1.5 Business Processes 1 1.6 Organisation Structure 2 1.7 Institutional Relationships with URF 5 2.0 Performance in FY 2011/12 6 2.1 Governance and Administration 6 2.2 Funding Operations 13 2.3 Key Performance Indicators 19 3.0 Financial Statement 24 3.1 Overview 24 3.2 Financial Statement 24 4.0 Auditor General’s Report 27 4.1 Opinion of the Auditor General 27 4.2 Management Response to the Auditor General’s Report 28 5.0 Challenges Experienced in FY 2011/12 32 5.1 Budget Cut in URF Funding 32 5.2 Weakness of Designated Agencies in Estimation of Needs 32 5.3 Weaknesses in Operation of District Road Committees 32 5.4 Weak Institutional Capacity of Designated Agencies 32 5.5 Extreme Deterioration of the Network Sections 32 5.6 Use of Non-Automated Systems in Disbursement of Funds 33 5.7 Poor Coordination among Funding Agencies 33 5.8 Weak Local Construction Industry 33 5.9 Misuse and Abuse of Road Maintenance Funds by DAs 33 6.0 Way Forward and Conclusion 34 6.1 Way Forward 34 6.2 Conclusion 34 Annex 1: Detailed Return for Board Members and Secretariat Staff 35 Annex 2: Details of Disbursements to Designated Agencies in FY 2011/12 36 Annex 3: Details of Physical Road maintenance Works Funded in FY 2011/12 52 Annex 4: Financial Performance of DUCAR Designated Agencies in FY 2011/12 68 Annex 5: Summary of Physical and Financial Performance of National Roads Maintenance, FY 2011/12 83 Annex 6: Physical Performance of DUCAR Designated Agencies in FY 2011/12 85 Annex 7: DUCAR Network Periodic Maintenance by Road Name 98 Annex 8: DUCAR Network Routine Mechanised Maintenance by Road 116 Annex 9: DUCAR Network Routine Manual Maintenance by Road 126 Annex 10: National Roads Network Maintenance in FY 2011/12 by Road 225 Annex 11: KCCA Road Network Maintenance in FY 2011/12 by Road 242 Annex 12: Detailed Report of the Auditor General, FY2011/12 244 Uganda Road Fund - Annual Report 2011/12 i LIST OF TABLES Table 1: Composition of URF Board as at 30th June 2012 2 Table 2: Summary of Staff Disposition 6 Table 3: Summary of Agencies Monitored, FY 2011/12 7 Table 4: Geographical Coverage of M&E Activities in FY 2011/12 7 Table 5: Schedule of M&E Findings, FY 2011/12 8 Table 6: Agencies Audited in FY 2011/12 10 Table 7: Generic Audit Findings in FY 2011/12 11 Table 8: Progress with Key Control Documents 13 Table 9: List of Services Outsourced by the Fund in FY 2011/12 13 Table 10: Summary of MFPED Releases to the Fund –FY 2011/12 15 Table 11: Funds Disbursement Summary –FY 2011/12 15 Table 12: Summary of Disbursements against Budget–FY 2011/12 16 Table 13: Summary of Expenditures against Releases–FY 2011/12 17 Table 14: Summary of Expenditures against Budget –FY 2011/12 17 Table 15: Summary of Funded Activities against Planned - FY 2011/12 19 Table 16: Actual Performance against Funded Activities, FY 2011/12 19 Table 17: Summary of Performance Rating of KPIs in FY2011/12 20 Table 18: KPIs in Administration and Human Resource, FY2011/12 20 Table 19: KPIs in Funding Operations, FY2011/12 21 Table 20: KPIs in Impact of Funding in FY2011/12 22 Table 21: KPIs in Governance, FY2011/12 22 Table 22: Sector Performance Scorecard, FY 2011/12 GAPR 23 Table 23: URF Performance Indicators and Actions, FY 2011/12 GAPR 23 Table 25: Statement of Financial Performance for the year ended 30th June 2012 24 Table 26: Statement of Financial Position as at 30th June 2012. 25 Table 27: Statement of Changes in Equity (Net Worth) as at 30th June 2012 25 Table 28: Cash Flow Statement for the year ended 30th June 2012 [Direct Method] 25 Table 29: Cash Flow Statement for the year ended 30th June 2012 (continued) 26 Table 30: Responses to the Audit Report for the Financial Year Ended 30 June 2012 28 LIST OF FIGURES Figure 1 – Organizational Structure of the Secretariat as of 30th June 2012 3 Figure 2 – Functional Descriptions 4 Figure 3 –Institutional Relationships with URF 5 Figure 4 – URF Funding Process 14 Figure 5: Disbursements in FY 2011/12 by Category of Agencies 16 Figure 6: Graph Showing Financial Performance of DAs – FY 2011/12 18 ii Uganda Road Fund - Annual Report 2011/12 ABBREVIATIONS AND ACRONYMS AfDB African Development Bank BAC Board Audit Committee BCC Budget Call Circular BFP Budget Framework Paper CAA Civil Aviation Authority DANIDA Danish International Development Agency DAs Designated Agencies DPs Development Partners DRC District Roads Committee DUCAR District, Urban and Community Access Roads EU European Union FABC Finance and Administration Board Committee FY Financial Year GoU Government of Uganda H2 Second Half of Financial Year IFMS Integrated Financial Management System IPFs Indicative Planning Figures JTSR Joint Transport Sector Review KCC Kampala City Council KCCA Kampala Capital City Authority KPI Key Performance Indicator LC Local Council LG Local Government M&E Monitoring and Evaluation MDA Ministry Department Agency MFPED Ministry of Finance, Planning and Economic Development MoLG Ministry of Local Government MoWT Ministry of Works and Transport MTEF Medium Term Expenditure Framework OBT Output Budgeting Tool OPM Office of Prime Minister OYRMP One Year Road Maintenance Plan PFAA Public Finance and Accountability Act PM Periodic Maintenance PPDA Public Procurements & Disposal Authority PSBC Planning and Strategy Board Committee Q Quarter RM Routine Maintenance RUCs Road User Charges SWG Sector Working Group UGX Uganda Shillings UNRA Uganda National Roads Authority URC Uganda Railways Corporation URF Uganda Road Fund USD United States Dollar WB World Bank Uganda Road Fund - Annual Report 2011/12 iii our vision Adequate financing for maintenance of public roads our mission To provide effective and sustainable financing for maintenance of public roads; build partnerships with stakeholders and serve with integrity core values Integrity Transparency Accountability Professionalism Customer care Teamwork Zero tolerance to corruption iv Uganda Road Fund - Annual Report 2011/12 STATEMENT by the Board Chairman t is my great pleasure and honour well as operational expenses of UNRA as Chairman of the Uganda Road such as ferries and weighbridges. Fund (URF) Board, to present Ithe third annual report detailing the The amendment of the URA Act is URF’s operations for the Financial still pending implying that road user Year 2011/12. The report has been charges, which can be remitted directly prepared in accordance with, and in to the URF, thus making it independent full compliance with section 39 of the of the consolidated fund, have yet to URF Act of 2008. be established. Our major problems however were and still are poor funds “It is hoped that To start with, I would like to sincerely absorption capacity of designated through enhanced thank the Minister of Finance, agencies, improper use of funds, lack monitoring and Planning and Economic Development of credible condition data and last but and the Minister of Works and not least, the sheer number of districts evaluation, technical Transport for their continued and and hence designated agencies. Further and financial audits unreserved support and guidance in to this, the EU funded Long Term and complete gazetting policy development and application Technical Assistance was interrupted in the transport sector. I would also thus affecting the progress in making of regulations, wish to thank the Board and the of manuals and regulations. transparency and URF Secretariat for their sustained accountability in the efforts and commitment to operations It is hoped that through enhanced during the year which has resulted in monitoring and evaluation, technical designated agencies will improved performance of the Fund. and financial audits and complete be improved thereby I also give special recognition to the gazetting of regulations, transparency preparing URF for a many stakeholders and supporters and accountability in the designated truly second generation particularly our Development Partners agencies will be improved thereby including the EU and Danida whose preparing URF for a truly second (2G) Road Fund.” assistance was very valuable during the generation (2G) Road Fund.
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