Prudence - Transperancy - Integrity - Value ANNUAL REPORT 2012/13 THE REPUBLIC OF UGANDA Uganda Road Fund - Annual Report 2012/13 Table of Contents Abbreviations and Acronyms iii Our Vision iv Our Mission iv Core Values iv Foreword 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 of URF in FY 2012/13 7 2.1 Overview 7 2.2 Governance and Administration 7 2.3 Key Performance Indicators 20 3.0 Performance of Road maintenance programmes 25 3.1 Funding Operations 25 3.2 Financial Performance of Road Maintenance Programmes - FY 2012/13 30 3.3 Physical Performance of Road Maintenance Programmes - FY 2012/13 32 4.0 Financial Statement 36 4.1 Overview 36 4.2 Financial Statement 36 5.0 Auditor General’s Report 39 5.1 Overview 39 5.2 Opinion of the Auditor General 39 5.3 Management Response to the Auditor General’s Report 39 6.0 Challenges Experienced in FY 2012/13 43 7.0 Way forward and Conclusion 45 7.1 Way Forward 45 7.2 Conclusion 45 Annex 1: Detailed Return for Board Members and Secretariat Staff 46 Annex 2: Details of Disbursements to DUCAR Designated Agencies in FY 2012/13 48 Annex 3: Financial Performance of DUCAR Designated Agencies in FY 2012/13 60 Annex 4: Summary of Physical and Financial Performance of National Roads Maintenance, FY 2012/13 72 Annex 5: Physical Performance of DUCAR Designated Agencies in FY 2012/13 73 Annex 6: DUCAR Network Periodic Maintenance by Road Name 93 Annex 7: DUCAR Network Routine Mechanised Maintenance by Road 107 Annex 8: DUCAR Network Routine Manual Maintenance by Road 136 Annex 9: National Roads Network Maintenance in FY 2012/13 by Road 180 Annex 10: KCCA Road Network Maintenance in FY 2012/13 by Road 189 Annex 11: Detailed Report of the Auditor General, FY2012/13 200 Uganda Road Fund - Annual Report 2012/13 i List of Tables Table 1: Composition of URF Board as at 30th June 2013 2 Table 2: Trend of Staff Disposition as at 30th June 2013 8 Table 3: Key Achievements of the Fund under the Corporate Services Function in FY 2012/13 8 Table 4: Summary of Agencies Monitored, FY 2012/13 9 Table 5: Geographical Coverage of M&E Activities in FY 2012/13 9 Table 6: Schedule of M&E Findings, FY 2012/13 9 Table 7: Achievements of the Fund in the Planning and Programming Function, FY 2012/13 12 Table 8: Achievements of the Fund in the Fund Management Function in FY 2012/13 13 Table 9: Summary of the Agencies and Projects Reviewed 13 Table 10: Findings from the Technical and Financial Reviews, FY 2012/13 14 Table 11: Financial Implications from Audit Reviews undertaken in FY 2012/13 16 Table 12: Achievements of the Fund under the Procurement/Disposal Function, FY 2012/13 17 Table 13: List of Services Outsourced by the Fund in FY 2012/13 18 Table 14: Progress on LTA Support to URF at end of FY 2012/13 19 Table 15: Progress with Key Control Documents as at 30 June 2013 20 Table 16: Performance against KPIs in FYs 2010/11 – 2012/13 20 Table 17: Summary of Performance Rating of KPIs in FY2012/13 22 Table 18: Sector Performance Scorecard, FY 2012/13 GAPR/FY 2011/12 GAPR 23 Table 19: URF Performance Indicators and Actions, FY 2012/13 GAPR 23 Table 20: Allocation of Funds for the Period FY 2010/11 - FY 2012/2013 27 Table 21: Summary of Releases to the Fund –FY 2012/13 27 Table 22: Performance on KPIs for Revenue inflows, FY 2012/13 28 Table 23: Funds Disbursement Summary –FY 2012/13 28 Table 24: Summary of Disbursements against Budget–FY 2012/13 30 Table 25: Summary of DA’s Expenditures against Releases–FY 2012/13 30 Table 26: Summary of DA’s Expenditures against Budget –FY 2012/13 31 Table 27: Summary of Funded Activities against Planned - FY 2011/12 – 2012/13 32 Table 28: Actual Performance against Funded Activities, FY 2011/12 – 2012/13 33 Table 29: Actual Performance against Funded Activities, FY 2011/12 – 2012/13 36 Table 30: Statement of Support, Revenue and Expenses, FY Ended 30th June 2013 41 Table 31: Statement of Financial Position as at 30th June 2013 37 Table 32: Statement of Changes in Fund Balances, FY ended 30th June 2013 37 Table 33: Statement of Cash Flows, FY ended 30th June 2013 37 Table 34: Responses to the Audit Report for the Financial Year Ended 30 June 2013 40 List of Figures Figure 1: Organizational Structure of the Secretariat as of 30th June 2013 4 Figure 2: Description of Functional Areas 5 Figure 3: Institutional Linkages with URF 6 Figure 4: URF Funding Process 26 Figure 5: Disbursements in FY 2012/13 by category of Agency 29 Figure 6: Graphic of financial performance of designated agencies 32 ii Uganda Road Fund - Annual Report 2012/13 Abbreviations and Acronyms AfDB African Development Bank MDA Ministries, Departments and Agencies ARMFA African Road Maintenance Funds MEO Monitoring and Evaluation Officer Association MIS Management Information System AO Administration Officer MFPED Ministry of Finance, Planning and BARC Board Audit and Risk Committee Economic Development BCC Budget Call Circular MoLG Ministry of Local Government BFP Budget Framework Paper MoWT Ministry of Works and Transport BoQ Bills of Quantities MTEF Medium Term Expenditure Framework CAA Civil Aviation Authority NTR Non- Tax Revenue CAIIP Community Agricultural Infrastructure OAG Office of the Auditor General Improvement Programme OBT Output Budgeting Tool CAO Chief Administrative Officer OPM Office of the Prime Minister CCO Corporate Communications Officer OYRMP One Year Road Maintenance Plan CDC Capacity Development Component PA Procurement Assistant CFO Chief Finance Officer PFAA Public Finance and Accountability Act DANIDA Danish International Development Agency PM Periodic Maintenance DAs Designated Agencies PPDA Public Procurements & Disposal of Public DLG District Local Government Assets Authority DLSP District Livelihood Support Programme PPMS Procurement Performance Monitoring System DPs Development Partners PRDP Peace Recovery and Development Plan DRC District Roads Committee PSBC Planning and Strategy Board Committee DUCAR District, Urban and Community Access roads Q Quarter EU/ EC European Union/ European Commission RAMPS Road Asset Management and Planning System FABC Finance and Administration Board Committee RM Routine Maintenance FMC Fund Management Comittee RMMS Road Maintenance Management and Monitoring System FY Financial Year RUCs Road User Charges GAPR Government Annual Performance Report STE Short Term Expert GoU Government of Uganda SWG Sector Working Group H2 Second Half of Financial Year TA Technical Assistance IFMS Integrated Financial Management System TC Town Council IPC Interim Payment Certificate TMT Top Management Team IPFs Indicative Planning Figures UBOS Uganda Bureau of Statistics JAF Joint Assessment Framework UCICo Uganda Construction Industry Commission JTSR Joint Transport Sector Review UGX Uganda Shillings KCC Kampala City Council UNRA Uganda National Roads Authority KCCA Kampala Capital City Authority URA Uganda Revenue Authority KPI Key Performance Indicator URC Uganda Railways Corporation LC Local Council URF Uganda Road Fund LG Local Government USD United States Dollar LTA Longterm Technical Assistance WB World Bank MC Municipal Council M&E Monitoring and Evaluation Uganda Road Fund - Annual Report 2012/13 iii Prudence - Transperancy - Integrity - Value 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 2012/13 Foreword by the Board Chairman Government for their continued and the amendment of Section 14 of the unreserved support and guidance in URA Act which will lead to direct policy development and application remittance of Road User charges to in the Transport sector. I would also the Fund. wish to thank the Board and the URF Secretariat for their tireless The policy shift by Government efforts and commitment which has towards preference for force account resulted in sustained improvements method of road maintenance delivery to the operations of the Fund. was sudden during the year. A lot of down time was expended by the I also wish to extend special Fund and Designated Agencies to recognition to the stakeholders change work plans and performance and the Development Partners agreements. There was therefore particularly the EU from whom resultant lag in funds absorption the Fund received Technical and delivery of targets especially in Assistance for the ongoing capacity DUCAR agencies. It is anticipated development support worth that these problems will phase out It is my great pleasure and honour Euros 1.1 million. In addition, I once Force Account operations as Interim Chairman of the Uganda recognize the support to designated become fully established with the Road Fund (URF) Board, to agencies from the Government of necessary equipment, manpower and present the fourth annual report Uganda through provision of road operational tonal centres in place. detailing URF’s operations and maintenance equipment which will Audited accounts for the Financial help in reducing the escalation of Lastly, I appreciate the support Year 2012/13. The report has been road maintenance backlog and costs of Government towards the prepared in accordance with, and in in the medium term. improvement of road infrastructure full compliance with section 39 of especially in and around Kampala the URF Act, 2008. The annual report outlines the Capital City and DUCAR Agencies operations and key achievements which will reduce vehicle operating At the outset, I would like to of the Board and its Management costs and yield accelerated economic sincerely thank the Minister of which included the development of development.