OFFICE OF THE AUDITOR GENERAL

THE REPUBLIC OF

REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF

MITYANA MUNICIPAL COUNCIL

FOR THE YEAR ENDED 30TH JUNE 2018

OFFICE OF THE AUDITOR GENERAL UGANDA

Table of Contents Opinion ...... 4 Basis for Opinion ...... 4 Key Audit Matters ...... 5 1.0 Budget Performance under Uganda Road Fund ...... 5 2.1 Status of implementation ...... 6 2.2 Routine manual maintenance ...... 6 2.3 Routine mechanised maintenance ...... 6 2.3.1 Inspection of Wabigalo- Busubizi Road (Status of Road) ...... 6 2.3.2 The Poor state of Main Street ...... 7 2.3.3 Lack of Road Equipment ...... 7 Emphasis of matter ...... 8 3.0 Under Collection of Local Revenue ...... 8 Other matter ...... 8 4.0 Comingling of Property Tax with other Revenues ...... 8 5.0 Lack of a Valuation Roll for Property Tax ...... 9 6.0 Irregular Allocation of Classroom Block to Pre Primary Section ...... 9 7.0 Incomplete works on Pit latrine constructed at NAKASETA P/S ...... 10 8.0 Un Distributed Youth Livelihood program Funds financial year 2017/18 ...... 10 9.0 Non functionality of the Stores system ...... 11 10.0 Lack of an owned Office Premises ...... 11 11.0 Understaffing ...... 12 Other Information ...... 12 Management Responsibilities for the Financial Statements ...... 13 Auditor General’s Responsibilities for the audit of the Financial Statements ...... 13 Other Reporting Responsibilities ...... 15 Report on the Audit of Compliance with Legislation ...... 15 12.0 Management and Utilization of Natural Resources ...... 15 12.1 Lack of Land Titles ...... 16 12.2 Lack of inventory of wetlands (Un known wetlands) ...... 16 12.3 Human Activities on Buffer Zone ...... 17 13.0 Garbage Management ...... 18

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13.1 Littering of Garbage ...... 18 13.2 Absence of by-laws on Garbage Management ...... 19 13.3 Failure to Maintain Data and Records on Garbage Volume ...... 20 13.4 In appropriate Location of the Landfill ...... 20 14.0 Lack of a Physical Development Plan ...... 21 Appendix 1: Budget performance - Uganda Road funds...... 22

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IESBA International Ethics Standards Board for Accountants

INTOSAI International Organization of Supreme Audit Institutions

ISSAI International Standards of Supreme Audit Institution

ISSAI International Standards of Supreme Audit Institutions

KMS Kilometres

LGFAM Local Governments Financial and Accounting Manual 2007

LGFAR Local Governments Financial and Accounting Regulations 2007

LGMSD Local Government Management and Service Delivery

MC Municipal Council

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

NAA National Audit Act

NEMA National Environment Management Authority

NFA National Forestry Authority

PFMA Public Finance Management Act 2015

PS Primary School

S/C Sub-County

UGX Uganda Shillings

UPE Universal Primary Education

YIG Youth Interest Group

YLP Youth Livelihood Programme

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REPORT OF THE AUDITOR GENERAL

ON THE AUDIT OF FINANCIAL STATEMENTS OF MUNICIPAL COUNCIL FOR THE YEAR ENDED 30TH JUNE, 2018

THE RT. HON. SPEAKER OF PARLIAMENT

Opinion I have audited the accompanying financial statements of Mityana Municipal Council 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 Mityana Municipal Council 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 Municipal Council 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.

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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.

I have determined the matter described below as the key audit matter to be communicated in my report.

1.0 Budget Performance under Uganda Road Fund

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.

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, efforts 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;

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 The monitoring and supervision was carried out by reviewing reports to assess performance.

2.1 Status of implementation During the year under review, the Municipal Council planned to undertake routine manual maintenance, routine mechanized maintenance and emergency activities on several council roads using Road Gangs and the Force on Account mechanism respectively. The total budget for the planned activities for the year amounted to UGX.205, 130,000 and the council received UGX.225, 810,000 including a surplus of UGX.20, 680,000.

A review of planned outputs against actual performance revealed that the Municipal Council received more funds than budgeted although the expected outputs were not fully achieved as shown in appendix 1

2.2 Routine manual maintenance

A total of 60kms at an estimated cost of UGX.18, 200,000 was planned to be undertaken as shown in appendix 1. However, audit revealed that 56kms (93%) were undertaken at a cost of UGX.19, 200,000. The Accounting Officer attributed the underperformance to inadequate man power.

2.3 Routine mechanised maintenance

A total of 23kms at an estimated cost of UGX.170, 800,000 was planned to be undertaken as shown in appendix 1. However, it was observed that 19.9kms (87%) were actually undertaken at a cost of UGX.169, 445,000.

The Accounting officer attributed this to change in scope of works along the Busubizi road 8kms.

2.3.1 Inspection of Wabigalo- Busubizi Road (Status of Road)

Inspection of roads rehabilitated in the period under review revealed that some roads were already damaged by running water due to poor road works including poor drainage.

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On Wabigalo- Busubizi road, a culvert line that had been blocked caused water from a stream to flow along the road surface causing more damage as shown in the pictures below:

In 1- A blocked Culvert causes running water across the road; In 2- road surface damaged by running water due to poor drainage.

Lack of drainage systems leads to the deterioration of roads.

The Accounting Officer explained that the drainage system was improved upon and the road works. He promised that Council would regularly and effectively maintain good water drainage system as per the guidelines.

I await the outcome of the Accounting Officer’s commitment.

2.3.2 The Poor state of Main Street

The inspection of road works revealed that the roads were in a very poor state with potholes, dust and mud as shown in the pictures below;

Wide potholes along Main street (Mityana – Same location water washed away the Road. Rd

This negatively affects businesses and town operations. The Accounting Officer acknowledged the poor state of the main Street and explained that the Ministry of Works and Transport had offered the rehabilitation of the road from Mityana post office to Kiyinda covering a distance of 1.9kms. Road works were in progress following the completion of station road.

I await the outcome of the intervention from the central Government.

2.3.3 Lack of Road Equipment

Under force account policy, agencies were to use their own labour and equipment to perform work. A complete set of the road equipment under the control of LGs include; Motor Grader, Wheel Loader, Bulldozer, Excavator, Cargo Truck, Mobile

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Workshops, Pedestrian Rollers double drum, Plate Compactors, Self-loading Truck, Water Bowser, Wheeled Backhoe Loader, Low Bed Tractors and Trailer, Bitumen Distributor tank and others. However; I noted that Council does not have any of the above mentioned equipment except for the Tipper. This hampers effectively maintenance of Council road network. It further causes delays in road maintenance which impacts negatively on service delivery.

The Accounting Officer acknowledged the shortcoming and promised to lobby and advocate for the road equipment from the Ministry of Works & Transport.

I await the outcome of the Accounting Officer’s plan of action.

Emphasis of matter Without qualifying my opinion, I draw attention to the following matters in the financial statements;

3.0 Under Collection of Local Revenue

The Municipal Council budgeted to receive local revenue UGX.1,124,114,000. However, only UGX.656,109,355(58%) was realised leading to a shortfall of UGX.468,004,645 (42%) as per the appropriation statement as page 13 of the financial statements. Under collection of local revenue adversely affects implementation of planned activities and there by denies service delivery to the community. The Accounting Officer attributed this to the low local revenue out turn.

I advised the Accounting Officer to always monitor the budget, strengthen revenue collection measures so as to successfully achieve all the planned activities.

Other matter

In addition to the matters raised above, I consider it necessary to communicate the following matters other than those presented or disclosed in the financial statements.

4.0 Comingling of Property Tax with other Revenues

Section 37(1) of the Local Governments (Rating) Act 2005 requires a Local Government to establish and administer a Property Tax Fund which shall be separate from the other locally raised revenues of the Local Government. Section 37(2) of the same Act, stipulates that all moneys collected from property tax shall not be expended except for providing services such as road construction and maintenance,

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street lighting, anti-malarial drains, garbage collection, physical planning and such other services required by the tax payers within their areas.

During the year under review; the Municipal Council collected a total of UGX.194, 349,470 in property taxes but had not established a property tax fund where to deposit the funds as required by law.

The comingling of property tax funds leads to spending property tax on ineligible activities. The Accounting officer attributed this to lack of budget line for transfers to other Government units under IFMS.

I advised the Accounting Officer to establish a property tax fund as required by the property Rating Act.

5.0 Lack of a Valuation Roll for Property Tax

In accordance with the Ratings Act 2005, a Local Government is required to cause in its area of jurisdiction a first valuation list of properties which are eligible for property tax, and there after a valuation once at least in every five (5) years or such longer period the Minister of the Ministry of Local Government may determine.

During the period under review; I noted that the Municipal council did not have a valuation roll for property tax but collected taxes from the property owners through estimation from the revenue collectors. This is irregular and may lead to under/over charging of property owners causing loss of revenue.

The Accounting Officer explained that council enforced collection of property tax based on the Council approved property valuation roll with a rateable charge of 10% that became effective during the FYR 2006/07 following the valuation exercise that was facilitated by Central Government and conducted by property valuers in 2005.

I advised the Accounting Officer to plan adequately and ensure an evaluation exercise of properties is carried out regularly in compliance with the law.

6.0 Irregular Allocation of Classroom Block to Pre Primary Section

During the review; it was noted that the Municipal Council contracted P&D Traders and Contractors limited to construct a two classroom block and supply 34-three seater desks at Kabule P/S under the school facilities grant at a cost of UGX.63, 594,684. However; inspection of the facility revealed that the two classrooms and desks were allocated to the pre-primary section of the school by management

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although pre-primary education is not a responsibility of central Government. Allocation of the classrooms to pre-primary classes was therefore irregular and translates into diversion of School Facility Grant Funds.

Besides, the earth wire for the lightening arrestor installed on the classroom block was left open as shown in the picture below which puts the lives of pupils at risk as it may attract lightening directly. In addition, the earth wire is prone to theft.

Earth wire left open Class occupied by infants in kindergarten

The Accounting Officer promised to visit the school before the closure of third term to ascertain the prevailing situation and the necessary intervention to be taken. He further stated that the contractor would be summoned to rectify the defect before retention monies were paid since the defects liability period for the project was still running.

I advised the Accounting Officer to ensure that the school administration allocates the facilities to classes under the UPE programme.

7.0 Incomplete works on Pit latrine constructed at NAKASETA P/S

A five stance lined latrine was constructed at Nakaseta Primary school at a cost of UGX.15,707,944 by P&D Traders and Contractors limited. The audit revealed that the stance for the persons with disabilities did not have the metallic handles that support the persons with disabilities (PWDs) although the bills of quantities provided for the handles. This was attributed to lack of supervision and monitoring of work progress of the project.

In response; the Accounting Officer indicated that instructions were given to the contractor to comply with the bills of quantities.

I await the outcome of the Accounting Officer’s directive.

8.0 Un Distributed Youth Livelihood program Funds financial year 2017/18

During the period under review, the Municipal Council received funds to the tune of UGX.127, 780,600 from the Ministry of Gender, Labour and Social Development

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(MoGLSD) for distribursement to the approved youth groups. It was however noted that out of the amount released only UGX.98, 783,600(77%) was disbursed to the 10 youth groups leaving a balance of UGX.29, 947,000(33%).

Failure to disburse youth funds to the qualifying groups affects implementation of groups projects on time of the program objectives.

The Accounting Officer explained that the MoGLSD approved YLP groups that could only absorb UGX.98, 783,600 as per the programme guidelines and was advised to deflect the balance to the YLP Recovery account. However by the time of writing this report the funds had not been deflected.

I advised the Accounting Officer to comply with the advice from Ministry.

9.0 Non functionality of the Stores system

Regulation 83(2)(3) of the Local Governments Financial and Accounting Regulations, 2007 requires the stores control officer to ensure that all accounts and procedures in respect of the stores in his or her charge are operating efficiently and effectively at all times, and that the storekeepers are carrying out their duties properly.

However; I noted that the stores system at the Municipal Council was not functional as stores supplies and issues were not recorded. Non functionality of the stores system may lead to misappropriation of stores.

The Accounting officer pledged to operationalize the provision of law to generally supervise over all stores maintained by departments of the council, including storage accommodation, the calibre of stores personnel, and the maintenance of proper accounting records.

I advised the Accounting Officer to enforce internal controls and ensure that an effective stores management system is established in compliance with the Financial Regulations.

10.0 Lack of an owned Office Premises

During the review; it was noted that the Municipal Council operates from Farm Institute. Where the District allocated the office premises to the Municipality. However, there was no formal document and or a memorandum of understanding stating the terms of allocation.

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Interview with management revealed that the premises were being claimed by the Land Board as part of the properties that the Central Government returned to Buganda Kingdom. There is a risk that the Municipal Council may be invoiced for premium in arrears by the Buganda Land Board in future.

The Accounting Officer attributed the delay to lack of a Physical Development Plan but was committed to having its headquarter offices as plans were underway to having a development plan in place.

I advised the Accounting Officer to plan early enough to ensure that the Municipal Council acquires its own premises.

11.0 Understaffing

A review of the Municipal Council staff establishment revealed that out of 151 approved posts only 58 (38.4%) are filled leaving 93 (61.6%) posts unfilled.

Under staffing hinders service delivery and limits segregation of duties in addition to constraining the existing staff.

According to the Accounting Officer; this has been dictated by the wage bill but stated that an advertisement was placed in April 2018 to recruit some personnel and pledged to continue lobbying and filling the staffing gaps as and when the wage bill allows.

I await the outcome of the stated commitment.

Other Information

The Accounting Officer is responsible for the other information. The other information comprises of 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

12 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 Mityana Municipal Council. 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 Municipal’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 Municipal’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.

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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

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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;

12.0 Management and Utilization of Natural Resources

Sec 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.

Review of management practices and utilisation of natural resources revealed the following anomalies;

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12.1 Lack of Land Titles

Section 58(4) of the Local Governments Financial and Accounting Regulations, 2007 requires a Local Government to have both movable and immovable properties and assets registered, titled and valued. However, I noted that some Municipal council land lacked land titles as listed below:

Land Size Status Kikumbi Land 3 Acres Land still intact Wabiruko Land 3 Acres Land still intact Mityana Public School Not established Under threat Magala Health Centre 21 Acres- Now Available Originally 100 acres but has been encroached on. Only 21 acres available now. land under threat. Bbuye Abattoir 8 Acres- Now Available Originally 18 acres but 10 acres have been encroached on Plot 7-13 Market Not established Land still intact Square

Lack of land titles expose the municipality land to disputes and encroachment.

The Accounting Officer explained that the Council had embarked on the process of titling its land starting with market land but due to the cost involved, management encouraged Division authorities to budget and share the costs of titling land located in their jurisdiction.

I advised the Accounting Officer to expedite the process and ensure that all Council land is secured with titles.

12.2 Lack of inventory of wetlands (Un known wetlands)

Section 37(2) on management of wetlands of the National Environment Act, provides that the authority shall, with the assistance of the Local environment committees, district environment committees and the lead agency, identify wetlands of Local, National and International importance as ecosystems and habitats of species of fauna and flora and compile a national Register of wetlands. Sub section 3 of the same section stipulates that the authority may, in consultation with the lead agency and the district environment committee, declare any wetland to be a protected wetland, and thereby excluding or limiting human activities in that wetland.

Contrary to the above; I noted that the Municipal Council does not know the total wetland coverage under its jurisdiction since the inventory was not maintained. Lack of inventory of wetlands may lead to uncontrolled human activity in the wetlands leading to degradation of the environment.

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The Accounting officer explained that during the financial year 2018/19, management has vigorously undertaken sensitization of wetland users on sustainable utilization. In addition, Local Environment Committees had been established and empowered to oversee the human activities taking place on the wetlands.

I advised the Accounting Officer to establish the wetland coverage in the Municipal Council and ensure an inventory is kept up to date.

12.3 Human Activities on Lake Wamala Buffer Zone

Lake Wamala which is the main drainage system in the Municipality is of great cultural and economic importance. The lake is jointly administered by three districts of , Mityana and Mpigi Districts. The lake covers an area of about 250km and is doted by many islands including Lwanju, Mabo, Bagwe, Kilaza and Kazinga among others. The lake is associated with several rivers and wetlands.

The swamps are throughout the system and are dominated by Cyprus papyrus. The water inflow into the lake is mainly from rivers; Nyanzi, Kitenga, Kabasuma, Mpamujugu and Bbimbye and is drained by river kibimba into which in turn drains into . Satellite images of Lake wamala taken in 1984 compared to those in 1995 show that the surface area of the lake has reduced by about half. This is mainly attributed to the human activity around the lake.

Inspection carried out on the lake in the month of November 2018 revealed that its buffer zone is threatened by un-regulated human activities like settlement, farming, waste disposal and others as shown in the pictures below;

A farmer planting rice in the buffer zone of lake Rice growing in the 200-meter buffer zone of lake Wamala Wamala in Bukanaga

Maize and eucalyptus trees grown in the 200-meter Poor solid waste disposal at Katiko Landing site buffer zone.

The uncontrolled human activity on the wetland was further attributed to failure to demarcate the buffer zone by the authorities. Interview with management revealed

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that encroachment on the wet land was fuelled by the allocation of land in the buffer zone by the authorities which is threatening the sustainable utilization of the lake.

Further review revealed that administrative letters were issued to individuals and public awareness campaigns carried out but the community did not heed to the orders to vacate the buffer zone.

Un-controlled activities in the buffer zone pose potential catastrophes that may include flooding posing more risks to the environment.

The Accounting officer explained that sensitization had been done and eviction notices issued to those encroaching on the wet lands and committed to liaise with the lead agencies like NEMA and NFA to ensure that proper and effective implementation of the activity is handled.

This matter requires urgent attention and intervention by all relevant authorities and stakeholders including parliament.

13.0 Garbage Management

A review of management of the Municipal council Garbage collection revealed an increase in urban economic and industrial activities as well as the resultant population increase that has led to an increase in the quantity of solid waste generated. Solid waste management in the municipality is drawing increasing attention, as citizens complain about too much garbage lying uncollected on the streets, skips, causing inconvenience and environmental pollution. The state of solid waste management in the Municipal Council was not up to standard.

There is a risk that the urban environment will deteriorate further. The following weaknesses in the garbage management system with in the municipality have contributed to the unsafe disposal of the solid waste generated by the residents and businesses.

13.1 Littering of Garbage

Part Three 1(w) Functions and services for which urban councils are responsible of the Second Schedule of Local Government Act, 1997 Cap 243 (as amended) requires urban councils to offer sanitary services for the removal and disposal of night soil, rubbish, carcasses of dead animals and all kinds of refuse and effluent. However; during inspection, it was observed that the town was characterised by filthy, un-

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swept streets and lanes, scattered dumps of accumulated trash and refuse whose removal and disposal appear to be beyond the capability of the authorities as shown in the pictures below;

At Kobil Buswabulongo as of 2/11/2018

Same location Kobil Buswabulongo as of 9/11/2018 With in Buswabulongo village

Garbage clean up in the middle of road on market street Filled garbage in front of public Toilet at Buswabulongo

Uncollected waste is washed into residences posing a health risk to the residents. It further leads to blockage of drainage which causes flooding and subsequent road damage causing more traffic obstructions.

The Accounting Officer attributed this to the mechanical breakdown of garbage trucks/skip carriers and stated that the matter was addressed. He explained that this role was devolved to the Divisions but the Municipality had the task of ensuring that garbage trucks are functioning.

The matter require urgent attention.

13.2 Absence of by-laws on Garbage Management

Section 39(1) of Local Government Act, 1997 (as amended) empowers urban councils to make by-laws in relation to their powers and functions that are not inconsistent with the Constitution, any law made by parliament or ordinance of the District Council or any by-law passed by a higher council.

The by-laws should then be forwarded to the Attorney General to certify that the local bill is not inconsistent with the Constitution or any other law enacted by

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parliament before it is approved for enforcement. However, it was noted that the Municipal Council has not made any by- laws in relation to garbage management.

Lack of by- laws leads to haphazard disposal of garbage by the residents which in turn may lead to sanitation challenges. The Accounting Officer acknowledged the lack of by-laws but stated that the existing Public Health Act, 2003 cap 275 was considered adequate in addressing garbage management at present.

I advised the Accounting Officer to ensure development of by-laws on garbage management.

13.3 Failure to Maintain Data and Records on Garbage Volume

Section 26 of Part III of the Second Schedule of Local Government Act, 1997 Cap 243 (as amended) requires urban councils to regulate, control, manage, administer, promote or license any of the things or services which the council is required or empowered to do and establish, maintain, carry on, control, manage or administer, and prescribe the forms in connection therewith; and to fix fees or charges to be made in respect thereof. However; interview with management showed that council does not collect data on the volume of garbage generated, collected, treated and composition of the garbage.

Lack of data makes it difficult for the Council to plan appropriately for garbage management. The Accounting Officer noted the concern.

I advised the Accounting Officer to start collecting data on the volume of garbage generated, collected and disposed off to enhance proper planning for garbage management.

13.4 In appropriate Location of the Landfill

The Municipal Landfill is located about 2kilometers from the central business centre and about 500meters from a residential area. It was noted that the area is also a potential human settlement area. The site seemed environmental unfriendly to the residents as odour, pests, and flies are likely to affect the residents. Besides; the land fill is located on a slope with a valley below it. There is a risk that the valley will get contaminated through underground seepage.

The Accounting Officer explained that the Council has planned to secure a suitable plot of land in the FYR 2020/21 to shift the landfill but stated that currently

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management was putting in place mechanisms that were environmental friendly to human settlement in the vicinity.

The Accounting Officer is advised to plan adequately for the appropriate location of the land fill.

14.0 Lack of a Physical Development Plan

Section 25(1) of the Physical Planning Act 2010 requires an urban council physical planning committee to have a physical development plan prepared. Sub section (6) requires an urban council physical development plan adapted by the respective physical planning committee to be submitted to the National Physical Planning Board for approval. However; it was noted that the Municipal Council does not have a physical development plan for the town.

Absence of an approved physical development plan may result into uncoordinated, inefficient and improper land use in the urban council. The Accounting Officer explained that Council had already embarked on the process of acquiring a development plan.

I await the outcomes of the Accounting Officers action.

John F.S. Muwanga AUDITOR GENERAL KAMPALA

17th December, 2018

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Appendix 1: Budget performance - Uganda Road funds

Item Planned Actual Varian Amount Amount Amount Variance Audit Remarks Description Output/ Output ce Budgeted Released spent (UGX) KMs Output (UGX)’000 (UGX),000 (UGX),000 ,000 A B C (B-C) Routine 60 56 4 18,200 19,200 19,200 0 More funds released Manual but 7% of output Maintenance not achieved Routine 23 19.9 3.1 170,800 169,445 169,445 0 Mechanized Target not met. maintenance Periodic 0 0 0 0 0 0 0 Maintenance Mechanical 12,000 24,897 24,897 0 imprest Supervision/A Allowances to supervisors 4,130 12,268 12,268 0 dministration and machine operators costs Total 205,130 225,810 225,810

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