Accountability Sector Strategic Investment Plan 2017/18 - 2019/20
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THE REPUBLIC OF UGANDA Accountability Sector Strategic Investment Plan 2017/18 - 2019/20 Sector Accountability Subsectors Economic and Financial Management Services Audit Economic Management Resource Mobilisation Budget Execution & Accounting Audit & anticorruption • Macroeconomic Policy and Management; & Allocation • Accounting Policy and • Internal Audit • Economic Development Policy & Research; • Revenue/Tax Policy Management; • External Audit; Thematic • Investment Promotion; Management; • PFM Information Systems/ • Anti-Corruption; • Financial Services; • Debt Management; Services; • Ethics and Integrity Areas • Statistical Production & Policy Research; • Planning; Budgeting • Asset Management; • Anti Money Laundering & Financing of & Public Investment • Procurement Policy/Public Terrorism Management Contract Management; etc. 1. MFPED; 2. Bank of Uganda; 1. MFPED; 1. MFPED (Accountant 1. MFPED (Internal 3. Uganda Bureau of Statistics; 2. Uganda Revenue General’s Office) Auditor General) 4. Economic Policy Research Centre; Authority; 2. MoLG (Inspectorate) 2. Office of the Auditor Institutions 5. Capital Markets Authority; 3. Kampala Capital 3. MoPS (Inspectorate) General; 6. Uganda Retirements Benefits Authority; City Authority 4. PPDA 3. Inspectorate of 7. National Social Security Fund; 4. MoLG/LGFC Government; 8. Uganda Development Bank Ltd; 4. Directorate of Ethics 9. Uganda Investment Authority; and Integrity 10. Private Sector Foundation; 11. Insurance Regulatory Authority; and 12. Financial Intelligence Authority Outcomes Sustainable Macro Fiscal Credibility and Value for Money in the Economic Stability Sustainability utilisation of public Resources Mandate: Mobilisation, management and accounting for the utilisation of public resources for effective and efficient delivery of quality and equitable services | i Contents Foreword ................................................................................................... v Acronyms ................................................................................................. vi Executive Summary .................................................................................. xi 1.0 Introduction and Background ..........................................................1 1.1 Overview of the Accountability Sector ............................................1 1.1.1 Accountability Sector Mandate and Thematic Areas ............................1 1.1.2 Accountability Sector Institutions and their mandates ..........................2 1.1.3 Management of the Accountability Sector .............................................7 1.2 Methodology for ASSIP review ........................................................8 2.0 Accountability Sector Situation Analysis ........................................9 2.1 Overview ............................................................................................9 2.2 Past Achievements ...........................................................................9 2.2.1 Economic Management ..........................................................................9 2.2.2 Resource mobilisation and allocation ...................................................19 2.2.3 Budget Execution, Accounting, Audit and Anticorruption ....................26 2.3 Strength and weaknesses ..............................................................35 2.3.1 Sector Strategies and Policies .............................................................35 2.3.2 Sector Management structures ............................................................37 2.3.3 Staff and Skills ......................................................................................40 2.3.4 Systems ................................................................................................40 2.3.5 Financial Resources .............................................................................41 2.4 Opportunities and threats ...............................................................44 2.5 Stakeholders and their expectations .............................................46 3.0 Strategic Direction ..........................................................................51 3.1 Strategic Intent ...............................................................................51 3.1.1 Vision ...................................................................................................51 3.1.2 Mission ................................................................................................51 3.1.3 Goal .....................................................................................................51 3.1.4 Objectives ............................................................................................51 Accountability Sector Strategic Investment Plan 2017/18 - 2019/20 ii | 3.1.5 Core values ..........................................................................................51 3.1.6 Critical Success Factors ......................................................................52 3.2 Strategies ........................................................................................52 3.2.1 Economic Management Strategies ......................................................52 3.2.2 Resource Mobilisation and Allocation Strategies ................................55 3.2.3 Budget Execution and Accounting Strategies......................................57 3.2.4 Audit and Anticorruption Strategies .....................................................59 3.2.5 Communication and Public Relations Strategy ...................................61 4.0 Institutional Arrangements for Implementing the ASSIP .............65 4.1 Leadership Committee ...................................................................65 4.2 Steering Committee ........................................................................65 4.3 Sector Working Group.....................................................................66 4.3.1 Technical Working Groups ....................................................................68 4.3.2 Accountability Centres at Local Governments .....................................70 4.4 Sector Institutions ...........................................................................70 4.5 Accountability Sector Secretariat .................................................70 5.0 ASSIP Financing Strategy ..............................................................73 5.1 Funding Requirements ....................................................................73 5.1.1 Funding requirements for non-vote accountability sector institutions .74 5.2 Sources of Funds .............................................................................74 5.2.1 Medium Term Expenditure Framework (MTEF) ....................................74 5.2.2 Donor Project Support .........................................................................75 5.2.3 Own Sources ........................................................................................75 5.3 The Funding Gap .............................................................................75 5.3.1 Strategies for closing the funding gap .................................................76 6.0 Monitoring and Evaluation Arrangements ....................................77 6.1 Sector Monitoring and Evaluation ................................................77 6.2 Sector M&E plan ..............................................................................78 Annex 1: Accountability Sector Monitoring and Evaluation Frame- work .......................................................................................87 Annex 2: List of Organisations/Individuals Consulted ....................104 Annex 3: ASSIP Review Taskforce Members ...................................107 Annex 4: References ...........................................................................108 Accountability Sector Strategic Investment Plan 2017/18 - 2019/20 | iii List of Figures Figure 1: Economic Growth Rate ...........................................................10 Figure 2: Uganda’s Annual Inflation .......................................................11 Figure 3: Gross Domestic Savings as a % of GDP ................................12 Figure 4: Cost of Lending and Private Sector Credit ..............................12 Figure 5: Licensed Investments by UIA .................................................15 Figure 6: Local Government local revenue as a % of LG Budgets ........21 Figure 7: Domestic Arrears .....................................................................23 Figure 8: Fiscal Deficit ............................................................................24 Figure 9: National Budget, Releases and Expenditure ...........................25 Figure 10: Annual National Budget Absorption ......................................25 Figure 11: Percentage of Clean Audit reports ........................................27 Figure 12: Percentage of Internal Audit Recommendations Implemented ..........................................28 Figure 13: Uganda’s Corruption Perception Index .................................30 Figure 14: Accountability Sector Budget, Release and Expenditure ......42 Figure 15: Accountability Sector Annual Budget Absorption ................42 Accountability Sector Strategic Investment Plan 2017/18 - 2019/20 iv | List of Tables Table 1: Accountability Sector Thematic Areas ......................................1 Table 2: Insurance Sector Past Performance .......................................13 Table 3: Local Investment