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Office of the Auditor General the Republic of Uganda Report of the Auditor General on the Financial Statements of Luwero Distric

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Office of the Auditor General the Republic of Uganda Report of the Auditor General on the Financial Statements of Luwero Distric OFFICE OF THE AUDITOR GENERAL THE REPUBLIC OF UGANDA REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF LUWERO DISTRICT LOCAL GOVERNMENT FOR THE YEAR ENDED 30TH JUNE 2018 OFFICE OF THE AUDITOR GENERAL UGANDA TABLE OF CONTENTS Opinion ...................................................................................................................................... 4 Key Audit Matters .................................................................................................................... 4 1.0 Performance of Youth Livelihood Programme ......................................................... 5 1.1 Under funding of the Programme .............................................................................. 5 1.2 Non Compliance with Repayments Schedules ......................................................... 6 1.3 Un confirmed transfers of Recovered funds to Recovery Account in BOU .......... 6 1.4 Inspection of performance of Youth Projects .......................................................... 7 1.4.1 Nakigoza Youth Tomato Growing Project ............................................................. 7 1.4.1.1 Record keeping ...................................................................................................... 7 1.4.2 Kanyogoga Youth Piggery Project .......................................................................... 7 1.4.2.1 Poor Record keeping ............................................................................................. 7 2.0 Implementation of the Uganda Road Funds ............................................................ 7 2.1 Budget performance..................................................................................................... 8 2.2 Status of implementation ............................................................................................ 9 2.2.1 Routine mechanized maintenance ......................................................................... 9 2.2.2 Periodic maintenance ............................................................................................... 9 2.2.3 Inspection of Kikoza-Kigoloba-Naluvule Road (8.9Kms) ..................................... 9 2.3 Failure to carry out Routine Manual Maintenance on District Roads .................. 10 Emphasis of matter ............................................................................................................... 11 3.0 Mischarge of Expenditure .......................................................................................... 11 4.0 Un accounted for funds ............................................................................................. 11 5.0 Financial Loss of UGX.34,037,178 ............................................................................ 11 6.0 Outstanding Creditors of UGX.259,348,068 ........................................................... 12 7.0 Outstanding Salary and Pension Arrears ................................................................ 12 8.0 Diversion of PHC and Agricultural Extension Services Wage to Pay Primary Teachers Salary ...................................................................................................................... 12 Other Matter ........................................................................................................................... 13 9.0 Un-updated property valuation list .......................................................................... 13 10.0 Under staffing and related issues ......................................................................... 13 11.0 Un Recovered UWEP Revolving Funds ................................................................ 14 12.0 Un approved borehole Rehabilitation Assessments ........................................... 14 13.0 Difficulties in accessing Road equipment from Regional Workshops ............. 15 14.0 Failure to Perform Physical count for students under USE............................... 15 1 15.0 Review of Eye Clinic Donation at Luwero Health Centre IV. ............................ 16 Other Information .................................................................................................................. 17 Management Responsibilities for the Financial Statements ............................................ 17 Auditor General’s Responsibilities for the audit of the Financial Statements ............... 17 Other Reporting Responsibilities ......................................................................................... 19 Report on the Audit of Compliance with Legislation ........................................................ 20 16.0 Management of Procurement ................................................................................ 20 16.1 Absence of a Contracts Register ........................................................................... 20 16.2 Absence of 10% Performance securities for Procurement contracts ............. 20 16.3 Lack of a representative of Lower Local Government on Evaluation committee ............................................................................................................................... 21 17.0 Management of Natural Resources ...................................................................... 21 17.1 Environmental dilapidation of district wetlands ................................................. 21 17.2 Failure to de-gazette Bombo Local Forest Reserve ........................................... 22 18.0 Poor Status of basic Medical Equipment ............................................................. 23 19.0 Lack of a District Physical Development Plan ..................................................... 23 20.0 Absence of District land and Lease Registers ..................................................... 24 21.0 Absence of legitimate Registration of the District Land .................................... 24 22.0 Capitation Grants................................................................................................ 25 22.1 Under funding of the USE and UPE capitation programs ................................. 25 22.2 Construction of a 2 classroom block and others at Bulamba Primary School 26 21.0 Status of Basic Medical Equipment ...................................................................... 27 APPENDICES ........................................................................................................................... 30 2 BOQ Bills of Quantities BOU Bank of Uganda DLG District Local Government HCIV Health Centre IV IESBA International Ethics Standards Board for Accountants INTOSAI International Organization of Supreme Audit Institutions IPFs Indicative Performance Figures ISSAI International Standards of Supreme Audit Institution ISSAI International Standards of Supreme Audit Institutions LGFAM Local Governments Financial and Accounting Manual 2007 LGFAR Local Governments Financial and Accounting Regulations 2007 LGMSD Local Government Management and Service Delivery LLGs Lower Local Governments MoESTS Ministry of Education Science and Technology and Sports MoFPED Ministry of Finance Planning and Economic Development MoFPED Ministry of Finance Planning and Economic Development MoGLSD Ministry of Gender Labour and Social Development MoWE Ministry of Water and Environment NAA National Audit Act PDU Procurement and Disposal Unit PFMA Public Finance Management Act 2015 PWD Persons with Disabilities UGX Uganda Shillings UWEP Uganda Women Entrepreneurship Programme YLP Youth Livelihood Programme 3 REPORT OF THE AUDITOR GENERAL ON THE AUDIT OF FINANCIAL STATEMENTS OF LUWERO 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 Luwero 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 Luwero 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 Act, 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,
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