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Office of the Auditor General the Republic Of OFFICE OF THE AUDITOR GENERAL THE REPUBLIC OF UGANDA ANNUAL REPORT OF THE AUDITOR GENERAL ON THE RESULTS OF AUDITS FOR THE YEAR 2017 DECEMBER 2017 ii TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS .......................................................................................................................... v LIST OF ACRONYMS ........................................................................................................................................ v GLOSSARY OF TERMS ............................................................................................................................................ vii FOREWORD BY THE AUDITOR GENERAL ................................................................................................................ ix PART 1: INTRODUCTION AND PURPOSE OF THE REPORT .....................................................................................1 PART 2: GOVERNMENT MINISTRIES, DEPARTMENTS AND AGENCIES ....................................................................5 2.0 GOVERNMENT MINISTRIES, DEPARTMENTS AND AGENCIES (MDAS) .......................................................5 2.1 Mandate .....................................................................................................................................................5 2.2 REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED GOVERNMENT OF UGANDA FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, 2017 ............................................................6 2.3 Summary of Key Findings, Implications and Recommendations ............................................................ 24 2.4 Cross-Cutting Issues and Recommendations .......................................................................................... 39 2.5 Summary of Audit Results of Specific Entities ........................................................................................ 43 PART 3: COMMISSIONS, STATUTORY AUTHORITIES AND STATE ENTERPRISES. .................................................. 44 3.1 Mandate .................................................................................................................................................. 44 3.2 Summary of Key Findings, Implications and Recommendations ............................................................ 46 3.3 Key Findings from Consolidated Financial Performance of Public Corporations and State Enterprises for the Year ended 30th June 2017 ..................................................................................... 56 3.4 Cross-Cutting Issues and Recommendations .......................................................................................... 64 3.5 Summary of Audit Results ....................................................................................................................... 86 PART 4: LOCAL GOVERNMENT ............................................................................................................................. 87 4.1 Mandate .................................................................................................................................................. 87 4.2 REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED FINANCIAL STATEMENTS OF LOCAL GOVERNMENTS FOR THE YEAR ENDED 30TH JUNE 2017. .......................................................... 88 4.3 Cross-Cutting Issues and Audit Recommendations ................................................................................ 95 4.4 Financial Statements Audited, Audit Opinions, Basis of Opinion, Key Audit Matters, Emphasis of Matter (EOM) and Other Matter ........................................................................................ 98 PART 5: VALUE FOR MONEY AUDITS ................................................................................................................... 99 5.1 Mandate .................................................................................................................................................. 99 5.2 Overview ................................................................................................................................................. 99 5.3 Definition and Focus of VFM Audits........................................................................................................ 99 5.4 Audits Undertaken ................................................................................................................................ 100 5.5 Key Findings, Conclusions and Recommendations ............................................................................... 102 PART 6: SPECIAL REPORTS .................................................................................................................................. 135 6.0 Summaries of Forensic Investigations, Information Technology (IT) Audits and Special Audit Reports .................................................................................................................................................. 135 6.1 Special Reports Issued .......................................................................................................................... 135 iii APPENDIX 1 ........................................................................................................................................................ 137 ANNEXURE 1: GOVERNMENT MINISTRIES, DEPARTMENTS AND AGENCIES (MDAS) ........................................ 151 1.1 Unqualified Reports .............................................................................................................................. 151 1.2 Qualified Reports .................................................................................................................................. 169 ANNEXURE 2: COMMISSIONS, STATUTORY AUTHORITIES AND STATE ENTERPRISES ....................................... 173 2.1 Unqualified Opinions ............................................................................................................................ 173 2.2 Qualified Opinions ................................................................................................................................ 188 2.3 Disclaimers of Opinions......................................................................................................................... 192 ANNEXURE 3: LOCAL GOVERNMENT ................................................................................................................. 193 3.1 Unqualified Opinions.................................................................................................................................... 193 3.2 Qualified Opinions ........................................................................................................................................ 218 ANNEXURE 4: REPORTS AND CONSOLIDATED GOVERNMENT OF UGANDA FINANCIAL STATEMENTS ............ 221 iv ABBREVIATIONS AND ACRONYMS LIST OF ACRONYMS ACRONYM DESCRIPTION AG Auditor General AO Accounting Officer Bn Billion BoU Bank of Uganda CAs Contracting Authorities CGV Chief Government Valuer DC Development Committee DLB District Land Board EATV East African Tourism Visa GAPR Government Annual Performance Report FY Financial Year GoU Government of Uganda MDAs Ministries ,Departments and Agencies MEMD Ministry of Energy and Mineral Development MoGLSD Ministry of Gender Labour and Social Development MOFPED Ministry of Finance, Planning, and Economic Development MoUs Memoranda of Understanding NARO National Agricultural Research Organisation NDP National Development Plan NDPII Second National Development Plan NEMA National Environment Management Authority NGO Non-Governmental Organisation NIN National Identification Number NPA National Planning Authority NTR Non Tax Revenue NWSC National Water and Sewerage Corporation OAG Office of the Auditor General OPM Office of the Prime Minister PAPI Project Analysis and Public Infrastructure Department PAPs Project Affected Persons v PFMA Public Finance Management Act, 2015 PIP Public Investment Plan PFI Private Finance Initiative PPP Public Private Partnership PRiDe Promotion of Rice Development PSST Permanent Secretary and Secretary to Treasury PS/ST Permanent Secretary/Secretary to the Treasury RAP Resettlement Action Plan SFI Strategic Friends International SMEs Small Medium Enterprises TAI Treasury Accounting Instructions, 2016 TIN Tax Identification Number UAE United Arab Emirates UWEP Uganda Women Entrepreneurship Programme UCF Uganda Consolidated Fund UDC Uganda Development Corporation UGX Uganda Shillings USD United States of America Dollars WWTP Wastewater Treatment Plant YLP Youth Livelihood Programme vi GLOSSARY OF TERMS Accreditation Refers to the grant of authority to a foreign principal to recruit and hire Ugandan workers through a licensed agency for overseas employment Aerobic Is a natural biological degradation; and purification process in which bacteria that thrives on oxygen rich environment breakdown and digest solid waste. Anaerobic A biological process that involves the breakdown of organic matter by micro-organisms in the absence of oxygen to produce methane and carbon dioxide Composting Is a biological process in which organic matter present in solid waste is converted into compost/manure Decent Work Decent work entails certain basic conditions at work: for instancea decent wage, working hour’s compensation for injury arising out of work, social security annual leave, accommodation, medical treatment and food. It refrains from exploitation, treatment of migrant
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