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KIIDP-II-Audited-Financial-Statements-June-2017.Pdf OFFICE OF THE EXECUTIVE.DIRECTOR KCCA KAMPALA CAPITAL CITY AUTHORITY Public Disclosure Authorized For a 6etter Ci'ry REF: KCCA/ADM1N/K11DP2/215 · Sc.in date: 22nd December 2017 The Task Team Leader, KIIDP2 Plot 1, Lumumba Avenue Rwenzori House Public Disclosure Authorized KAMPALA RE: SUBMISSION OF AUDITED FINANCIAL STATEMENTS FOR KIIDP2__ PROJECT. Please find the attached audited. financial statements for the Second Kampala Institutional Infrastructure Development project(KIIDP2) covering a period of 14 months up to the 30th June 20~7. Public Disclosure Authorized _qC]·· . Eng. Stephen Kibuuka AG. PROJECT COORDINATOR Copy: Executive Director I AG. Deputy Executive Director AG. Director Treasury Services Director Engineering & Technical Services, Director Legal Services, Project Coordinator KIIDP2 Public Disclosure Authorized OFFICE OF TELEPHONE THE AUDITOR GENERAL General Lines: +256 - 41 - 7336000 APOLLO KAGWA ROAD, Auditor General: +256 - 41 - 7336004 Sec. PLOT2C, P.O. Box 7083, KAMPALA. Email: [email protected] ... \nce~:~IIJ. Website: www.oag.go.ug THE REPUBLIC OF UGANDA VISION: "To be an effective and efficient Supreme Audit Institution (SAi) in promoting effective public accountability" MISSION: "To Audit and report to Parliament and thereby make an effective contribution to improving public accountability and value for Money Spenr INANYCORRESPONDENCEON DCG.12/151/01/17 -------:-:--:-:~-::-----1 THIS SUBJECT PLEASE QUOTE NO:.................... ~3,C,\ NM.ED 11th December, 2017 Sc.an t\(lto: r1-\~C\ The Rt. Hon. Speaker of Parliament Parliament of Uganda Kampala REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE KAMPALA INSTITUTIONAL AND INFRASTRUCTURE DEVELOPMENT PROJECT (KIIDP· 2) FOR THE FOURTEEN (14) MONTH PERIOD ENDED 30TH JUNE 2017 In accordance with Article 163 (4) of the Constitution, I forward herewith audited financial; statements of Kampala Institutional and Infrastructure Development Project (KIIDP 2) for the fourteen (14) mo p riod ended 30th June 2017 together with my report and opinion thereon .. John F.S. Muwanga AUDITOR GENERAL Copy to: The Permanent Secretary/Secretary to the Treasury Ministry of Finance, Planning and Economic Development fl The IDA/World Bank fl The Accountant General, Ministry of Finance, Planning and Economic Development fl The Executive Director Kampala Capital City Authority fl The Project Coordinator Kampala Institutional and Infrastructure Development Project (KIIDP) ------=-:-:~~-·\ WORLD BANK I\· * 2 2 OEC 2011 * RECEI~EDJ Member of the international Organisation of Supreme Audit Institutions (INTOSAI) Member of the Africa Organisation of Supreme Audit Institutions (AFROSAI) n THE REPUBLIC OF UGANDA t i ! I REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE SECOND KAMAPALA INSTITUTIONAL AND INFRASTUCTURE DEVELOPMENT r PROJECT (KIIDP 2) IDA LOAN NO. 53840-UG FOR THE VEAR ENDED 30TH JUNE 2017 I I - OFFICE OF THE AUDITOR GENERAL UGANDA i \ ( __ I TABLE OF CONTENTS I . ' I LIST ACRONYMS ........................................................................................................................... 2 REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2017 ................................................................................................................................... 3 i i Opinion .....................................................................................................................................................3 Basis of Opinion ............................................................................................................................ 3 Key Audit Matters ......................................................................................................................... 3 Other Matter ................................................................................................................................. 4 Management Responsibility ........................................................................................................... 5 Auditor's Responsibilities for the Audit of the Financial Statements ................................................... 5 : : _I REPORT OF THE AUDITOR GENERAL ON THE SPECIAL ACCOUNTS OPERATIONS FOR THE YEAR ENDED 30TH JUNE 2017 ................................................................................................................. 7 I : ,--, i I I -- I I l I 'I I ' ' I 1 j ' 1' LIST ACRONYMS ,-, I I i I Acronym Meaning I GOU Government of Uganda I I I _I IDA International Development Association KI1DP2 Second Kampala Institutional and Infrastructure Development Project PAPs Project Affected Persons RAP Resettlement Action Plan UGX Uganda Shillings USD United States Dollar --, f- I I I I _J -- i I L I r------, i I I _I 1-,: .I : r:, I I [~I I I I . u-- [1 I I I I I I r I I i i -- l _, 2 ! I SECOND KAMPALA INSTITUTIONAL AND INFRASTRUCTURE DEVELOPMENT PROJECT (KIIDP 2) - IDA LOAN No. 53840-UG REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS I I I I FOR THE YEAR ENDED 30TH JUNE 2017 I ' THE RT. HON. SPEAKER OF PARLIAMENT Opinion I have audited the accompanying financial statements of Second Kampala Institutional and Infrastructure Development Project (KIIDP 2) IDA Loan No. 53840-UG for the year ended 30th June 2017. The financial statements set out on pages 85 to 99 comprise of Statement of project Management Responsibilities, Statement of source and uses of funds, statement of financial position, special account statement, statement of cash flow and Notes to the accounts which contain a summary of significant accounting policies. I I I In my opinion, the Project financial statements present fairly in all material respects the fund balances of the Second Kampala Institutional and Infrastructure Development Project (KIIDP 2) as at 30th June 2017 and the receipts and payments for the year then ended in i I accordance with the accounting policies stated on page 85 of the financial statements. I ! Basis of 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 --, I I independent of Project Management in accordance with the Constitution of the Republic of Uganda (1995) as amended, the National Audit Act 2008, the International Ethics Standards , I Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together : J with the ethical requirements that are relevant to my audit of the financial statements in Uganda, and I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA Code. 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, are of most ~ 1 significance in my audit of the financial statements of the current period. I have determined . i I '· j that there are no key audit matters to be communicated in my report. 3 i i Other Matter I I I consider it necessary to communicate the following matter other than those presented or: !_ ! disclosed in the financial statements: • Budget Performance -Low absorption of funds A sum of US$.39,222,868 was received during the year but only US$.17,929,599 was: spent during the year, representing an absorption capacity of only 46% of the budget; for the year as reflected in the statement of source and uses of funds in the financial : statements. Low absorption is likely to attract commitment fees charged on undrawn , amounts and also negatively affects implementation of planned activities. At the time of: writing this report, 139 Project Affected Persons (PAPs) had been compensated leaving: a balance of 33 PAPs. Management explained that as at 30th June 2017, 139 Project Affected Persons (PAPs): had been compensated leaving a balance of 33 PAPs and by the end of the first Quarter 2017/18 only 11 PAPs were still outstanding. The designs for Batch2 roads, junctions' and drainages have been finalized and the procurement process for both the i consultants and contractors has started. r-1 I I l__l The Accounting Officer should endeavour to resolve the conflicts arising from settlement 1 of PAPs so as to have the project completed within the stipulated timelines. • Overall Performance as per the logical framework The Project commenced on 1st July 2014 with the support of IDA loan and is set to i close on 31st December 2019. However, a review of the project implementation plan; and project progress reports revealed delays in the implementation of activities. For; ! r - instance construction of Makerere Hill road and Bakuli-Nalulabye-Kasubi-Northern : I I ' I Bypass road could not be completed during the year due to delays in the resettlement 1 of Project affected Persons (PAPS) and challenges in the relocation of utilities affected; the construction timeline. As a result, the contractor requested for a contract variation: of UGX.11.3bn caused by the increase in costs due to project time extension and, increase in the scope of works to include; Traffic signals and CCTV, solar street lighting,, ' Road traffic signs, Landscaping and Relocation of Services/utilities. The Contracts i i I ' I I' ' Committee approved a contract Variation of UGX.11.3bn on 3rd March 2017 which: L _1 represents a 12.8% increment from the original contract
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