I OFFICE of the AUDITOR GENERAL the REPUBLIC OF

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

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

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

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

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. 1

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 implemented 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.

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

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

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.

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 Picture showing overgrown shoulders along Lubugumu- along Bukasa-Muyanga Road 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.

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 Current status Infrastructure Dilapidated The stances for pupils and teachers were dilapidated and lacked shutters as stances shown in the pictures below;

Photo showing Old Girls’ Stances without Photo showing Dilapidated stances shared shutters among pupils and teachers

Dilapidated I observed that the classrooms were very old and there was a hole in the P6 classroom classroom as shown below; block

Picture showing hole in P.6 classroom This risks the lives of pupils as the roof could cave in due to the weak walls.

Inadequate The school currently has 3 staff houses which are shared by 6 staff while the staff quarters current staff level is eight (8).

Lack of safe The school has no water source and thus pupils move about 2Kms to the water source nearest shallow well for water which affects the pupil’s performance since a lot of time is spent on collecting water. Low Inspection of the school in the third week of the term indicated that the enrolment 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  The group was funded to procure 1,500 birds but only 1,300 birds were Kamaliba Landing Site delivered. Only 230 birds were found on site leaving 1,070 unaccounted Location: Nkozi Sub-county for. Amount received:  The drinkers and feeders were poorly placed and thus the birds could UGX.60,000,000 contaminate the water and feeds. See the pictures below; Date inspected: 1-Oct-18

Chicken feeders and drinkers placed on the ground.

Name: Piggery farming at  Out of 32 pigs purchased, only 9 pigs were found on ground. 23 pigs Kamaliba Landing Site were not accounted for; Location: Nkozi Sub-county  No records of income and expenditure were maintained thus I could not Amount received: confirm project sustainability. UGX.60,000,000  Feeding and watering troughs were not properly placed and thus feeds Date inspected: 1-Oct-18 were poured on the ground. This could cause contamination during feeding, see the pictures below.

Photo showing pig feeding on the ground

Name: Intensive goat farming at  Out of 45 exotic goats procured, only 27 goats were found on ground. Kamaliba Landing Site 18 goats were not accounted for. Location: Nkozi Sub-county  Goat houses were found untidy with no feeding and water Amount received: points/troughs. Furthermore, there were no mineral licks seen on UGX.71,918,191 ground. Date inspected: 1-Oct-18  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.

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.

 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.

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.

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.

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; 14

Picture showing illegal barrow pit at Luwewe village, Kawumba Picture showing Illegal sand mining at Busense A village, parish in Buwama Sub-county 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

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.

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

APPENDICES

Appendix 1: YLP Non - Compliance with Repayment Schedules

S/N NAME OF YOUTH GROUP DATE OF AMOUNT INTEREST TO AMOUNT DUE AMOUNT BALANCE RECEIPT RECEIVED DATE RECOVERED 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 10-Jun-15 7,522,000 665,493 8,187,493 3,300,000 4,887,493 Project` 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 6-Jul-15 8,000,000 1,261,000 9,261,000 0 9,261,000 Project

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

Appendix 2: Implementation of Uganda Road Funds

Intervention Planned Actual Varia Planned Actual Variance (UGX) Audit Remarks Length length nce expenditure expenditure (km) (km) (km) (UGX) (UGX) 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 49,000,000 45,622,000 3,378,000 6.9%of budgeted funds not 77.81 10.1 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

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

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

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

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

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