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Office of the Auditor General Annual Report of The THE REPUBLIC OF UGANDA OFFICE OF THE AUDITOR GENERAL ANNUAL REPORT OF THE AUDITOR GENERAL FOR THE YEAR ENDED 30TH JUNE 2010 VOLUME 5 VALUE FOR MONEY AUDIT i TABLE OF CONTENTS Page LIST OF ABBREVIATIONS …….….……….………........…………………………......... viii 1 OVERVIEW ……….….…………………………………..…….….……….....…..… 1 1.1 Mandate ………………………………………………………………….………………………....….. 1 1.2 Vision Mission and Core Values…………………………….……..…….……...…….....……. 2 1.3 Scope of Auditor General‟s Work in Relation to VFM Audits …………….…….....….. 2 1.4 Key issues in this Volume ………………….……………………………….……….…….....…. 3 2 REGULATION OF MEDICINES IN UGANDA BY NATIONAL DRUG 32 AUTHORITY ……………………………….……………………...…………......…. 2.1 Introduction ….….………….………………………………………………….……………....…. 32 2.2 Findings …………………….……………………………………………………….…………....…. 36 2.3 Conclusions ………………….…………………………………………………….…………....……. 56 2.4 Recommendations …………………….……………………………….……….……………....…. 59 3 PROCUREMENT SYSTEM IN LOCAL GOVERNMENTS: CASE STUDY 64 OF 7 DISTRICTS……......………..………………………………...……..……….. 3.1 Introduction ….….…………......…………………………………………………….………………. 64 3.2 Findings …………………….……….....……………………………………………….………………. 67 3.3 Conclusions ………………….………….....………………………………………….………………. 87 3.4 Recommendations …………………….….....…………………………….……….………………. 89 4 FUNCTIONALITY OF LAND MANAGEMENT INSTITUTIONS IN UGANDA ….…………................................................................….....……. 92 4.1 Introduction ….….………….…….....……………………………………………….………………. 92 4.2 Findings …………………….…………….....………………………………………….………………. 95 4.3 Conclusions ………………….……………….....…………………………………….………………. 127 4.4 Recommendations …………………….……….....……………………….……….………………. 131 5 MANAGEMENT OF FARM INCOME ENHANCEMENT AND FOREST CONSERVATION PROJECT IMPLEMENTED BY THE MINISTRY OF WATER AND ENVIRONMENT AND THE MINISTRY OF AGRICULTURE ANIMAL INDUSTRY AND FISHERIES .....................................................1 36 5.1 Introduction ….….………….…………………………………………………….………….....……. 136 5.2 Findings …………………….……………………………………………………….………………...... 144 5.3 Conclusions ………………….…………………………………………………….………….....……. 171 5.4 Recommendations …………………….……………………………….……….…………….....…. 174 ii i 6 DISPOSING OF CASES IN THE JUDICIARY ...……………….....……………1 78 6.1 Introduction ….….………….…………………………………………………….…….....…………. 178 6.2 Findings …………………….……………………………………………………….………….....……. 182 6.3 Conclusions ………………….………………………………….....………………….………………. 200 6.4 Recommendations …………………….………………………….....…….……….………………. 202 7 MANAGEMENT OF ROAD MAINTANANCE OF NATIONAL ROADS BY 206 THE UGANDA NATIONAL ROADS AUTHORITY….…………..…......……..... 7.1 Introduction ….….………….………………………………………………….....….………………. 206 7.2 Findings …………………….……………………………………………………….….....……………. 210 7.3 Conclusions ………………….…………………………………………………….……….....………. 235 7.4 Recommendations …………………….……………………………….……….…………….....…. 237 8 IMPLEMENTATION OF RURAL ELECTRIFICATION PROGRAMME BY THE RURAL ELECTRIFICATION AGENCY IN THE MINISTRY OF ENERGY 240 AND MINERAL DEVELOPMENT ............................................................... 8.1 Introduction …......….………….…………………………………………………….………………. 240 8.2 Findings ……………….....…….……………………………………………………….………………. 245 8.3 Conclusions ……………….....….…………………………………………………….………………. 259 8.4 Recommendations ………….....………….……………………………….……….………………. 260 9 MANAGEMENT OF UNIVERSAL PRIMARY EDUCATION CAPITATION 262 GRANT.................................................................................................... 9.1 Introduction ….….………….…………………………................................................ 262 9.2 Findings …………………….……………………………………………………….……………..... 265 9.3 Conclusions ………………….……………………………………………….…………….......…. 289 9.4 Recommendations …………………….……………………………….…….......……………. 291 10 ENVIRONMENTAL AUDIT REPORT ON FORESTRY ACTIVITIES IN 296 UGANDA ……...………………...………………………………….……………….. 10.1 Introduction ….….………….…………………………………………………….………….....……. 296 10.2 Specific Audit Criteria and their correspondng sources……........……………………… 298 10.3 Background of the Forestry Sector..…………………..……………….....…………………… 300 10.4 Significant audit Findings and Recommendations ……………………......……………… 301 11 VALUE FOR MONEY AUDIT OF BUILDING AND 317 CONSTRUCTION UNDER JUSTICE, LAW AND ORDER SECTOR .............. 11.1 Introduction ….….………….…………………………………………………….………….....……. 317 11.2 Value for Money audit Findings and Recommendations………………………….....…. 319 11.3 Financial Management………………………………………..……………………………….....… 327 GLOSSARY OF TERMS......……………………………………………….......……..........…33 5 iii ii List of Tables Page: Table 1 Imports of Medical and Pharmaceutical products for the period 2006 – 2009 32 Table 2 Sources of National Drug Authority Funds for the period 2006/07 to 2009/10 ................................................................................................. 35 Table 3 Vehicles for Regional Inspectors and their age .......................................... 38 Table 4 Anti-malarials and ARVs Sample Test Results for the period 2007-2009 ..... 44 Table 5 Financing Laboratory operations for the year 2008/09 .............................. 45 Table 6 ADR Forms Collected and Processed by the National Pharmacovigilance Centre .................................................................................................. 55 Table 7 District Funding in Shillings ..................................................................... 67 Table 8 Procurements done without needs assessment ........................................ 68 Table 9 Un-planned Procurements ...................................................................... 72 Table 10 Cases of signed contracts without confirmation of funds ........................... 73 Table 11 No. of received and evaluated bids per district ......................................... 75 Table 12 Value of contracts awarded .................................................................... 85 Table 13 Constituting contract committees ............................................................ 86 Table 14 Funding of the DLM for the FYs 2006/2007 to 2009/2010 ......................... 95 Table 15 Average budget performance for the DLM for the FYs 2006/2007 to 2009/2010 ............................................................................................ 98 Table 16 Average budget performance for the ULC for the FYs 2006/2007 to 2009/2010 ............................................................................................ 99 Table 17 Staffing gaps in the DLM ........................................................................ 103 Table 18 Planned induction of ALC and DLB members ............................................ 106 Table 19 ALC members not inducted ..................................................................... 107 Table 20 DLB members not inducted ..................................................................... 107 Table 21 Planned training of ALC and DLB members .............................................. 107 Table 22 ALC members not trained ....................................................................... 108 Table 23 Trained DLB members ............................................................................ 108 Table 24 Planned and un-printed copies of sensitisation booklets ............................ 109 Table 25 Monitoring visits not conducted ............................................................... 110 Table 26 Accumulated domestic arrears of un-paid property rates for the FYs 2006/2007 to 2009/2010 ........................................................................ 114 Table 27 Improvement in the collection of NTR ..................................................... 116 Table 28 Delays in processing of conversion from customary to freehold land .......... 118 Table 29 Delays in processing of lease titles ……………………………………………………… 119 iiii iii Table 30 Delays in processing of freehold titles on conversion (up-country areas) .... 120 Table 31 Delays in processing of freehold titles on conversion (urban areas) ........... 120 Table 32 Delays in processing mailo titles .............................................................. 121 Table 33 FIEFOC Project funding ......................................................................... 143 Table 34 Planned and actual funds disbursed in UA by PY 4 ................................... 152 Table 35 Projected and actual counterpart funding by GoU and beneficiaries ........... 154 Table 36 Anomalies identified in centralised procurement of seedlings ..................... 161 Table 37 Comparison of average unit cost at which FIEFOC purchases selected seedling species with prices charged by local dealers in Districts and NFA .. 161 Table 38 Staffing position ..................................................................................... 163 Table 39 Gender participation in project activities .................................................. 165 Table 40 Project deliverables (FIEFOC) ................................................................. 166 Table 41 Funds spent on the restructured sub-components .................................... 169 Table 42 Number of deaths reported as a result of mob-justice for the years 2007 to 2009 ..................................................................................................... 179 Table 43 Sources of Judiciary funds – 2006/07 to 2009/10 ..................................... 182 Table 44 Staffing position of the Judiciary for Judges and Magistrates ..................... 195 Table 45 UNRA Funding ......................................................................................
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