EXECUTIVE SUMMARY OF A CONSOLIDATED REPORT OF THE CoMMTTTEE ON PUBLTC ACCOUNTS (LOCAL GOVERNMENTI ON 139 REPORTS OF THE AUDITOR GENERAL ON DISTRICT LOCAL GOVERNMENTS AND MUNICIPAL COUNCILS FOR FINANCIAL YEAR z0Lsl L6

Rt, Hon Speaker and Hon Members, the Public Accounts Committee on Local Government has considered the Report of the Auditor General on Local Governments and Municipal Councils for the FY 20151 16. The Committee handled 139 reports and in carrying out this assignment, regional public hearings were held and on spot field assessment were carried out for specific projects. Accounting Officers were accorded audiences to clarify on the different matters under their dockets.

Rt. Hon Speaker, I am going to present a summary of the report that has been fully signed by the Committee members.

1.O Budget Allocation and Performance 1.1 Share of the National Budget to Local Governments Parliament appropriated a sum of UGX 23.97 Trillion for Government expenditure and this included UGX 2.5 Trillion (lO.4o/o) for service delivery inlocal Governments. At the end of the financial year, UGX 2.16 Trillion (86.4%) was released to local governments leaving a balance of UGX 332 Billion (13.6%) that was not released to local governments.

Obsenrations The Committee observed that: i. Local Governments' share of the National Budget was low and this undermined the principle of decentrabzation for service delivery.

ta.'1 ,? Itt'_.i Page | 1 rl{i: n+i; r Irt

4<

L1 rrAil L AtltE N T p oF 0. BO X 7 1 L.2 Local Revenue Shortfall i. A sample of 68 Local governments, showed that out of the total projection of UGX 39.74 Billion local revenue, only UGX 28.76 Billion was collected leaving a balance of 10 Billion uncollected, which translated into an under performance of 27o/o. o least performing Local Governments: o at l7oh

o at 3Oo/o

o at 38%o o Outstanding Local Governments: o Kasese Municipal Council at960/o, o Municipal Council at93o/o.

11. the Ministry of Local Government has continued to interfere in matters of local revenue management through allocation of market stalls, setting park fees and imposing KCCA policies on the management of taxi/bus parks on the Local Governments. a number of districts exuded laxity in the collection of debts leading to accumulation of receivables for instance Municipality had

receivables amounting to UGX 751,478,737 .

1V Local Governments have failed to levy and collect revenue from known modern farms in the districts of: Kiruhura, Sembabule, Mbarara, Gomba, Nwoya, Kiryandongo, and . V many local governments have entrusted the task of compelling individuals to meet their financial obligations to Council to Law enforcement Officers who have on many occasions exuded errant behavior including protecting defaulters at a fee. Revenue assessment should be done annually but many local governments are using results of outdated revenue assessment exercises

Page | 2 and others do not even have revenue registers. There is general under estimation, under collection and under projection of revenues.

Recommendations i. the Ministry of Local Government should desist from interfering in areas of local revenue collection in the local Governments that are otherwise decentralized ii. the Ministry of Local Government should support the local governments in procuring an independent company to conduct local revenue assessment in Districts and Municipalities. iii. The Ministry of Public Service should in the restructuring exercise provide for enforcement officers in the District establishment. iv. Accounting Officers together with Finance Officers should ensure that all debts are collected in a timely manner, and where debtors fail to pay, court redress should be sought. v. Districts and Municipality authorities should in collaboration with Uganda Revenue Authority conduct tax sensitization workshops/seminars among local communities with the view to enhancing revenue collections.

2. Understaffing i. The average staffing levels in local governments stood at 68%o for the sampled districts, with dire cases of 14oh in Local Government and the most staffed was District Local Government with 90% of its establishment. ii. Understaffing in Local Governments constrains Service Delivery. iii. Districts have failed to attract some cadres due to low remuneration and yet higher qualifications were required specifically the posts of District Engineer, District Health officers and Chief Finance Officer. iv. The Committee noted that there is a practice of ring-fencing some jobs for the individuais born in that District for example in Apac, the Chief

Page | 3 Finance Officer had retired but was given a contract which was also renewed.

Recommendations i. The Ministry of Public Service, Ministry of Local Government and Ministry of Finance, Planning and Economic Development should come up with guidelines aimed at equalising the staffing levels among local governments. ii. Ministry of Local Government should work with the Ministry of Public Service to waive some non-critical requirements for positions like District Engineers and Chief Finance Officers that have continuously failed to attract candidates

4. Payroll Anomalies

The Committee was concerned that payroll anomalies were a source of budget leakages and denied the serving and retired staff their rightful entitlements.

Recommendations The Committee recommends that Accounting Officers should be held responsible for avoidable payroll anomalies.

5. Unsupported Pension Payments The Committee observed that the Ministry of Fublic Service had not transferred the pension files to the Local Governments which caused delays in the payment of pensions. The Committee notes that this contravenes Article 254 of the Constitution.

Recommendations

Page | 4 The Committee recommends that Ministry of Public should immediately release all the original pension files to respective loca1 governments to enable them process pension payments.

6.1 Drug Supply Chain Management in Health Centers

6.1.1 Discrepancies between orders and deliveries of medicines . there were discrepancies and delays in drug supplies by NMS against the entities requisitions.

Recommendations i. There should be a review of the MOU between Government of Uganda and NMS with a view to reversing the monopoly by NMS; ii. NMS should ensure that health units are supplied with the exact drugs they requisition for and at the right time in line with the last mile delivery requirement. iii. The Accounting Officer should ensure reconciliation of drug orders and dtug deliveries at the time of drug deliveries to the Health units.

6.1.2 Non Disposal of Expired Medicines i. NMS uses the Push system for supply of medicines to Health Centers IIIs and IIs, which results into supply of unwanted drugs hence expiry of medicines with shorter shelf life. ii. Some of the expired medicines were donations to the health units outside their requisition and some in-charges requisition for wrong medicines. iii. The mandate of NMS should be amended to include the disposal of expired drugs since the entity already has the infrastructure to carry out the activity. Currently the trucks that deliver medicines return to NMS empty.

Page | 5 1V In some instances the expired drugs are mixed up with the new stock in the same shelves as witnessed in the districts of Apac, Butambala and Kibaale.

V M/s Green Label that was contracted by the Ministry of Health to collect and dispose off expired medicines from the Health units does not have the capacity to efficiently collect expired medicines. For example reported a case where they used a saloon vehicle to collect expired medicines.

Recommendations i. NMS should stop using the Push System but rather supply according to the established requirements of the different health units. ii. Health units should not accept donations of medicines that they do not need. iii. The mandate of NMS should be amended to include disposal of expired medicines since the entity already has the infrastructure to carry out this activity.

7.O Low Recovery of Youth Livelihood Project (YLPI Funds Ghost groups have been formed by some Community Development Officers (CDOs) due to ieakage in the selection process.

Recommendations The Committee recommends that: - i. Government should sanction recovery of funds from persons implicated in mismanaging the Fund ii. Government should review the structural objectives and guidelines of the YLP with the view of realizins value for money. iii. non-compliant beneficiaries of the fund should be arrested to ensure that the groups make all efforts to recover the funds.

Page | 6 8. Lack of Land Titles i. the Local governments do not have the financial capacity to have all their land titled. Therefore the Central Government should facilitate Local Governments Country wide to secure land over which they can operate. ii. government institutions in some of the Districts and Municipalities in and Bunyoro regions are sitting on cultural land.

Recommendations i. Government takes up the responsibility of securing Land Titles for its lands country wide. ii. Government should provide land for service delivery in its entities that are located on cultural lands. iii. Districts and Municipal Council authorities should, in the meantime, institute measures of demarcating government land within their jurisdiction.

9. Payables and Receivables not realized

1 the Accounting Officers in a number of cases over-committed Government thereby violating the commitment Control System. l1 Accounting officers are required to return unspent funds at the close of a financial year as per the law, regardless of whether there are any ongoing activities. As such, a sum of UGX 9.O45bn was noted to have been outstanding obligations by sevent5r (7O) sampled Local Governments.

111 Delays to settle outstanding commitments may lead to litigation and costs.

Recommendations

i. Accounting Officers who violated the Commitment Control System [CCS] should be held responsible. ii. The Public Finance Management Act (PFMA) 2015, should be amended specifically to address the challenge caused by the requirement to return unspent balances at the close of a Financial Year.

Page | 7 1O. Education

1 The Ministry of Education and Sports has failed to facilitate the attainment of the requirements. ll the budgeted capitation grant UGX.7,10O per child per year that is provided for UPE aided schools is inadequate and it is often not fully released. lack of a functional School inspection system which does not provide feedback to policy makers. lV. The transition rates for pupils was only lO%o for all the children who enrolled in Primary One. 9Ooh of the learners dropped out before completing Primary Seven (P7).

V There were generally poor Primary Leaving Examination Results in Universal Primary Education (UPE) schools. v1 Schools in refugee hosting districts were heavily congested. The affected Districts include Kiryandongo, Adjumani and Koboko among others.

Recommendation i. MOES should provide sufficient funds to the District Local Governments to meet the set standards. ii. the budgeted capitation grant of UGX.7,100 per child per year be increased. iii. The Education (Pre-primary, Primary and Post Primary) Act 2OOB, should be implemented in its totality with all the stakeholders meeting their stipulated obligations.

11.O Health

Observations i. Most Health Units in Local Governments are insufficiently equipped in terms of the requisite machinery needed to provide the services expected of them. In some occasions, the Health Facilities have received donations of equipment

Page | 8 that are incompatible or non-functional or unusable for some unanticipated reasons. ii. some of the poor infrastructure in the Health sector arose from the recentralization of the Primary Health Care Development grant which further limited the capacity of the districts to do even minor repairs in the health facilities as the funds are now hardly felt in the Local Governments. iii. more than 213 of Districts in Uganda did not have district hospitals. The Committee was further concerned that a number of Health Centre IVs functioned like Highway Hospitals yet they still get supplies meant for Health Centre IVs. iv. Some District on the borders of Uganda with South Sudan and Democratic Republic of Congo are hosting a high number of refugees from the said Countries, an aspect that has caused a strain in the health care services. The Health Centers near these camps have experienced huge influx in the number of patients without a corresponding number of supplies. v. Many local governments do not have ambulances to transport patients to and between health units.

Recommendations i. Ministry of Health should provide sufficient funds to the District Local Governments and Municipal Councils with a view to improving infrastructure, staffing and equipment in all health centers to meet the set standards. Special attention should be given to unique situations like high way hospitals, health centers serving as District Hospitals and health centers in refugee-hosting districts. ii. Additional resources should be allocated to cater for emergencies in Highway health facilities. iii. The Ministry of Health should regulate the donations of health equipment because once fauity, such equipment can be a health hazard.

Page | 9 L2.O Failure to meet Minimum Standards in the Production Senrice Delivery Most of the Local Governments still do not meet the production sector minimum national standards of service delivery and they do not have the financial capacity to do so.

Recommendation The Committee recommends that the Ministry of Agriculture, Animal Industry and Fisheries engages the Ministry of Finance Planning and Economic Development, to provide sufficient funds to the Local Governments to enable them meet the Production Service Delivery set standards.

13.O Lack of Information Technology (IT) Policy The Committee observes that Districts are independently developing ICT Policies without input from the Ministry of ICT.

Recommendation A11 Local Governments liaise with the Ministry of ICT in order to develop a uniform ICT Policy.

t4.o Non-Compliance with the Procurement Laws i. A number of Local Governments breached the procurement laws with impunity, which curtails achievement of value for money and affects service delivery to the public. ii. most of the grounded vehicles in local governments belong to Government bodies at the Center notably, Ministries of Health, Works and Transport, Agriculture Animal Industry & Fisheries. The Center gives Local Governments vehicles but they retain the log books and necessary documentation.

Recommendations i. Accounting Officers together with Procurement Officers be held responsible for

Page | 10 non-compliance with procurement regulations. Local Governments should be allowed to dispose off grounded vehicles and other assets without recourse to the Log Books.

15.O Delayed Completion of Civil Works and Shoddy Works i. there is negligence by the Accounting Officers in regard to completion of infrastructural projects in Local Governments, which has led to poor service delivery, and in worst cases, loss of government funds.

Recommendations i. Accounting Officers should be held liable for delayed completion of works, shoddy works and for any additional costs involved; ii. all contractors who fail to execute works on schedule should be blacklisted.

16.0 Non Compliance with Statutory Obligations

Non-deduction and remittance of pay as you earn tax (PAYE), Local Senrice Tax and Withholding Tax. i. Non-compliance with the tax law attracts fines and penalties. ii. It is negligent of accounting officers not to remit tax after the deduction. iii. The practice is a result of weakness in Internal Audit units in the districts which would have otherwise detected flaws in the systems.

Recommendations i. Accounting officers should remit the tax deductions promptly on a monthly basis. ii. The accounting officers should be held liable for non-deduction and remittance of taxes. iii. URA should routinely interact with the tax entities for regular updates on their obligations.

Page | 11 17.O Fixed Assets Register Many of the districts either had asset registers that were not up to date or those that did not comply with the requirements of an asset register.

Recommendation The Committee recommends that all local governments should ensure that they keep an up to date Assets Register.

18.O Weaknesses in the Internal Audit Section in Local Governments i. the Internal Audit Unit was understaffed in most Local Governments. ii. most Internal Audit teams were found incompetent, as they had no work plans and they aid and abet fault5r transactions. iii. Local governments underscore the importance of the Internal Audit Unit and therefore under facilitate them.

Recommendations The Committee recommends that special emphasis be put on the recruitment and facilitation of competent staff in the internal audit Unit of iocal governments.

19.O Lack of Financial Statements in UPE Schools. The Committee noted that there was inadequate supervision of the Head Teachers by the District, in preparation of financial statements and cashbooks.

Recommendation i. the District Supervises the Head teachers to prepare cashbooks and financial statements for all monies received and expended in the schools. ii. the districts should make deliberate efforts to routinely train the school Head Teachers on the preparation of financial statements required of them.

Page | 1,2 2O.O Risk Management Policy The Committee observed that without a Risk management policy, Local Governments are exposed to risks which they cannot mitigate.

Recommendations The Committee recommends that all Local Governments develop Risk Management Policies to mitigate risks.

2t.o Road Fund i. Some Districts did not have functional District Roads Committees which are responsible for the planning and allocation of Road Funds.

11 The allocation of road funds to the local governments is said to be premised on the length of road network, however this criteria according to the allocations made by the Uganda Road Fund is not being followed. For example Ntungamo Municipality with a road network of 34 kilometers was allocated 586 million translating into l7million per kilometer while, Ishaka-Bushenyi Municipality with road network of 7l kilometers was allocated 78O million equivalent to 1O.9 million per kilometer and Makindye-Ssabagabo Municipality with a road network of 120 kilometer was allocated 159 mitlion equivalent to 1.3 million per kilometer for the routine manual maintenance.

111 There were untimely releases of the planned amounts for maintenance of roads in Districts and Municipal Councils.

Recommendations i. Any district found not to have a functional district roads Committee should not access the Road Fund. ii. there should be equitable allocation of funds to District Local Governments and Municipal Councils considering their Road network. iii. The Ministry of Finance, Planning and Economic Development and the Uganda Road Fund makes timely releases of road funds as per the approved Budget

Page | 13 allocations to the entities.

1V Municipalities should prioritize low cost road sealing under the Road fund.

V. the release of funds should be based on approved budget allocations;

22.O The Mandate and Operations Of District Public Accounts Committees (DPACf i. The DPAC is mandated to examine the reports of the Auditor General and in so doing, is empowered to secure the attendance of any councilor or officer to explain matters arising from the Auditor General's reports. The Committee noted that the DPAC is also fused with the internal audit function. ii. The Minister of Local Government has since the enactment of the Local Government Act, not tabled any report of the DPAC to Parliament as required under section 87 of the Local Governments Act. iii. the number of accounting entities handled by the PAC (LG), greatly overwhelms the Committee and making it unable to consider all their audit reports, within the six months timeline set under article 163(5) of the Constitution.

Recommendations i. The Local Governments Act should be amended to mandate the DPAC to consider only the audit reports of town councils, sub counties and Secondary Schools and not of the districts, municipalities and district hospitals. ii. The DPACs should be adequately empowered in terms of technical and logistical support; in order to enable them execute the mandate spelt out in the Local Governments Act.

Page | 14 23.O Performance of Accounting Officers

The Committee cited a number of cases where Accounting Officers have flouted regulations and mismanaged resources of Local Governments. Audit reported misused funds amounting to UGX 13.58 billion that was accrued for various reasons including unaccounted for funds amounting to UGX 2.3 billion, non- recovery of funds under the Youth Livelihood Program amounting toUGX 8.6 billion, irregular procurements amounting to UGX 1.33 billion and payroll anomalies amounting to UGX 1.35 billion.

Obsenrations i. The Ministry of Local Government is slow to enforce disciplinary action against errant Accounting Officers. Such Officers are merely transferred to other Local Governments where they continue mismanaging Government resources. The worst of whom have been noted to be Mr. Onzu M. Ismal, Mr. KizitoMukasa Fred and Mr. Mbaagwa M. A. ii. On the other hand there have been outstanding Accounting Officers who have excelled in their duties. Notable among these are Mr. Nkata B. James, Ms. Unzia Martina, Ms. Edith Mutabazi, Mr. Felix Esoku and Mr. Elias Byamungu. iii. Some Political leaders have also impacted on accountability in their areas of jurisdiction. Noteworthy are the Rukungiri Mayor and Chairperson for a positive impact and the District Chairpersons of Mbale, Apac, Pader and Mayuge for a negative impact. iv. There are Local Governments that have continuously exhibited failure to adhere to accountability laws making the work of accounting officers complex. These include the districts of Wakiso, Amudat, Nakapiripit, Ma5ruge, Abim, Lamwo, Agago, Zombo, Bundibugzo, Budaka, Jinja, and Mbale and the Municipalities of Bushenyi- Ishaka, Mbarara, Mbale, and Iganga.

Page | 15 Recommendation i. the Ministry of Local Government comes up with punitive actions against errant accounting officers rather than transferring them to other local governments. ii. Accounting Officers who continuousiy get bad audit reports should be relieved of the duty of Accounting Officer. The position can be given to their subordinates. iii. Sum of UGX 2.3 billionmust be recovered from the culprits

24.O Misuse of Government Vehicles

The Committee noted with concern that some entitled officers have usurped the job of drivers and in the process mishandled official vehicles leading to costly mechanical problems and accidents. Cases cited are the Chairpersons of the districts of Mbale, Pader, and Nebbi.

The cost of repair of vehicles indicated above was higher than where the vehicles were driven by the authorized drivers.

1l Some Accounting Officers have failed to enforce the existing laws and regulations in the management of Local Government properties.

Recommendations I the District Chairpersons of Nebbi, Apac, Pader and Mbale, who caused damage to Official vehicles should bear the cost of the repairs.

11 the Accounting Officers should sensitize all stakeholders about the laws and regulations governing the use of Government assets, including vehicles.

Conclusion The revelation of the audit report on the mismanagement and lack of adherence to set standards had a huge financial implication on the country and in real terms. For example with a simple illustration of staff wages, at an

Page | 16 average 680/0 staffing level a total expenditure of UGX L.A6Ttrillionwas incurred in salaries for local governments. This would translate into UGX 2.147 trillion if the structures were filled to 100% staff in post. This in net effect would imply that the economy lost out UGX 68Tbillion in terms of unreaLtzed expenditures on salaries. If the Gross Domestic Product outturnduring the FY 2Ol5l16 was UGX 55,760bi11ion, it can be deduced that this slowed down by 1.2'/o

In total cumulative sum of UGX 30.34lbillion inclusive of unrealized revenues can be concluded as sums of monies lost during the FY.

Page I L7 Annex 1: District Local Government Local Revenue Performance ESTIMATED/PR LOCAL REVENUE REVENUE 7o Revenue VOTE ENTITY/DISTRICT OJECTED COLLEGTED SHORTFALL Realized 509 1,371,675,302 1 ,158,938,058 212,737,244 B4% 513 934.694.740 355,743,369 578,951,371 38% 515 Kalangala District 747,631,100 221,485,266 526,145,834 30% 517 Kamuli District 1,073,600,000 182,574,052 891,025,948 17% 518 530,773,000 418,141,000 112,632,000 79% 520 254.000.000 184.814.423 69,185,577 73% 522 KatakwiDistrict 289.580.s02 192,523,725 97,056,777 66% 526 420,313,853 342,961,909 77,351,944 82o/o 529 418,496,867 242,823,693 175,673,174 58o/o 530 Kyenjonjo District 233,200,000 192,739.894 40,460,106 83o/o 533 District 273,106,216 149,208,958 123,897,258 55% 535 [\Iayuge District 277,450,000 257,224,564 20,225,436 93o/o 537 1,157,250,675 824,268,764 332,981,911 71% 542 598,639,000 355,1 95,1 73 243,443,827 59% 543 209,044,000 1 14,830,908 94,213,092 55% 544 District 417,063,500 326,643,810 90,419,690 78% 545 364.642.000 294.030.059 70.611.941 81% 546 960,022,587 808,774,649 151,247,938 840/ 548 345,901,535 269,540,663 76,360,872 78% 551 524.585.377 264.719,793 259,865,584 so% 552 872.448.110 314.238,131 558,209,979 360/o 553 489,625.000 392.133,154 97,491.846 80% 554 Tororo District 1.279.968.775 486,820,593 793,148,182 38o/o 557 143,691 ,560 108,451.944 35,239,616 75% 566 493,624.000 218,906,089 274.717.911 44o/o 567 1 17,601,915 81.500,697 36,1 01 ,218 69Yo 571 180.000.000 159,249.301 20,750.699 88% 573 Abim District 394,664,000 118,067.642 276,596.358 30% 574 148.177.000 1 19,873,846 28,303,154 81o/o 576 District Bullisa 256,168,953 200,713,972 55,454,981 78o/o 578 BukedeaDistrct 172,616,000 99,638,059 72,977,941 58o/o 579 183,630,000 104,728.671 78,901,329 57% 583 160,896,200 60,646.346 100,249,854 38o/o District 584 Kyegegwa 241,707,703 215,085,398 26.622.305 89o/o 585 146.752.700 96,969,751 49,782,949 6604

Page | 18 587 226 651 000 67 656 756 158 244 30o/o 589 178,848,000 1 36,18'l ,630 42.666,370 76% 594 183,933,000 123.704.422 60.228.578 67% 603 200,388.000 167.671.211 32,716,789 84% 605 1 19,896,000 79,519,190 40,376,810 66Yo 610 108,347,000 93,038,049 15,308,951 86% 752 Entebbe Municipal Council 2.796.552.000 2,125,495,971 671,056,029 760/o 753 Fort-Portal Municipal Council 1,676.694,000 1.511.383.827 1 65,31 0, 1 73 90% 754 Gulu Municipal Council 1.722.896.987 1,591,334,774 131,562,213 920h 757 Kabale Municipal Council 1,212,321,520 1,055,887,692 156,433,828 87% 760 Mbale Municipal Council 1.602,172,500 911.248.166 690,924.334 57% 761 Mbarara Municipal Council 2,765,696,931 2,545,361,008 220,335,923 92% 763 Soroti Municipal Council 859,950,000 703.889.910 156,060,090 82o/o 770 Kasese Municipal Council 1.394.860.558 1,337,611,883 57,248,675 96Yo 771 Hoima Municipal Council 955,902,370 702,142,620 253,759.750 73% 773 lganga MC 456,094,000 236.976.964 219,117,036 52o/o 774 Masindi MC 1.606.388.957 1,351,120,394 255,268,563 84o/o 776 Busia MC 1,573,773,000 1,298,180,588 275,592,412 82% 777 Bushenyilshaka MC 806,341,000 731,280,290 75,060,710 g1o/o 778 Lugazi MC 1,645,325,879 1.427,757.667 217.568,212 87% 779 Nansana MC 812.562,708 631.770.778 180,791 ,930 78% Totalshortfall 39,736,837,580 28,763,420,114 10,973,417,466 72%

Annex 2: Sta level in District Local Government VOTE ENTITY/DISTRICT ESTABLISHMENT STAFF VACANT % STAFFING INPOST POSTS IN POST

501 289 172 tt7 6Oo/. 502 \48 7t 77 48Yo 503 537 263 274 49o/" 505 Bundiburyo 851 579 272 6AoA

509 Hoima District 2678 2050 628 77Yo 513 Kabarole District 345 234 111 68o/o

514 Kaberamaido 2203 131 1 892 6OYo 515 Kalangala District 842 tL4 728 l4Yo

Page | 19 519 968 535 433 55Y. 522 Katakvri District 157 74 83 47o/o 525 District 1744 1455 289 83o/o 526 Kisoro District 348 239 109 69Y" 528 763 620 143 8lY. 530 Kyenjonjo District 368 236 132 64o/. 540 District 247 156 91 63Y" 544 Nakasongola 292 190 to2 65o/" 546 Ntungamo District 1040 758 282 73o/o 547 t428 833 595 58V" 548 Pallisa District 3007 2600 407 860/" 55s 328 259 69 79o/" 557 Butaleja District 2559 1867 692 73o/" s59 517 283 234 55Y" 562 356 t48 208 42o/" 565 928 402 526 430A

567 Bukwo District t4t4 1 103 311 780 569 Nakaseke District t84 734 50 730A 572 Oyam District 216 105 111 49o/" 573 Abim District 133 64 69 4aoa 574 Namutumba 2444 t7 t2 732 7Oo/" 577 t829 1381 448 76Yo

579 Bududa District 18 19 t282 537 TOYio 582 Builave District 706 438 268 62%o s88 126 54 72 43o/o 589 Bulambuli District 7644 t228 416 75o/. 590 674 351 323 52o/" 591 354 208 t46 59o/o 592 Kiryandongo t43 60 83 42Yo 59s 584 329 255 56'/. 594 Namayingo District t407 1069 338 76'/" 595 349 175 t74 5OY.

596 159 79 80 5Oo/o 597 Kyankrvanzi 20to t370 640 680h 598 173 86 87 500/" 599 116 67 49 58o/o 600 Bukomansimbi 337 2to t27 62Yo 602 Rubir2i District 145 64 81 4404 605 Kibuku District t413 t27t 142 9OYo

Page | 20 606 t43 47 96 33o/" 610 Buhweju District 27t 138 133 5l%" 611 129 45 84 35o/o 612 t447 937 504 65o/o 752 Entebbe Municipal 113 64 49 57V"

754 Gulu Municipal 25t t7t 80 68'/o

757 Kabale Municipal 86 70 t6 8701(

7s9 Masaka Municipal 519 196 323 38o/.

761 Mbarara Municipal tt4 75 39 66%6

764 Tororo Municipal 103 50 53 49o/o

770 Kasese Municipal 106 86 20 8lo/o

77t Hoima Municipal 555 421 t34 760/"

772 Kira Municipal t37 55 82 4Oo/.

773 Soroti Municipal 303 177 t26 58.h

773 Ishaka Municipal t4t 66 75 47o/"

773 Ntungamo Municipal 62 42 20 680h

773 Busia Municipal 418 286 132 6aoa

Total staff 46,214 31,215 L4,999 68"/"

Annex 3: Amounts not accounted Local Governments VOTE ENTITY/DISTRICT TOTAL AMOUNTS DETNLS OF AMOUNTS UNACCOIINTED 501 Adjumani District 286,382,687 286,382,687 Youth livelihood funds 502 Apac District 627,616,567 156,954,991 irregular salary payment 126,287,686 over salary payment 344,373,900 Youth livelihood fund 503 Arua District 492,233,829 18,439,141 Salary advance re1ravment 473,794,688 Youth livelihood funds 505 Bundibugro District 13,758,800 13,758,800 Irregular procurement transaction from unprequalified supplier 506 45,342,700

Page | 2t 45,342,700 Unaccounted funds 507 71,144,064 7,046,OOO unaccounted funds 4,O98,064 Delayed deletion from pavroll 508 314,332,495 190,148,404 over paid salary 83,780,12O Duplicate salary payment 3l,lor,97 7 Fictitious salary payment 9,302,000 Unaccounted fund 509 Hoima District 9,984,583 9,994,593 Payment to absconded officer 513 Kabarole District 29,7O7,823 19,379,943 Unremitted funds to URA in Taxes 11,327,88O Failure to account 5t4 24,500,501 24,500,501 Youth livelihood funds 518 Kamwenge District 2,967,796 2,967,796 Overpayment of salary to staff 519 Kanungu District 8,098,138 8,098,138 Wrongful salary payment 520 Kapchorwa District 221,142,O25 21,752,607 unaccounted funds 799,389,419 Youth livelihood funds 52t 6,501,777 6,5O1,777 Over Payment of Pensions and Death Gratuity 522 Ilo,l72,ooo llo,l72,ooo unaccounted funds 524 Kibale District 9,8O7,156 9,5O7 ,156 Outstanding arrears to be paid 300,000 Outstanding rental income 526 Kisoro District 16,000,000 16,000,000 Allowance recovery 527 368,299,300 368,298,300 Youth livelihood fund 528 Kotido District 81,775,1OO 60,583,100 Youth livelihood funds

Page | 22 2l,l92,OOO unaccounted advance 530 Kyenjonjo District 128,259,750 125,000,000 Irregular payment for treatment abroad for a staff. Accounting officer to stop refund to the staff 600,000 Irregular payment to Baylor NGO 2,659,750 Delayed deletion from the pavroll 531 266,419,019 53,150,640 Over payment on salary 123,013,800 unaccounted administrative advances 45,467,200 unaccounted administrative advances 44,787,379 unaccounted administrative advances 532 Luwero District 439,763,59O 438,763,590 Youth livelihood fund 535 587,991,420 18,800,975 Salary overpayment 569,190,545 Youth livelihood fund 536 1O3,464,342 88,708,240 Youth livelihood funds 3,965,000 unaccounted funds 10,891,ro2 irregular payment of salary 538 7,294,620 7,294,620 unaccounted funds 542 Mukono District 176,673,153 176,673,r53 543 Nakapiripirit District 200,493,224 34,009,668 Unaccounted fund 12o,377,38O PRDP unaccounted funds 16,886,676 Irregular hard to reach allowance 29,219,500 Unaccounted fund 544 1o2,443,926 35,479,981 unaccounted for funds 66,963,945 over payment of salary 547 Pader District 30,917,772 30,917,772 unaccounted administrative advance 548 Pallisa District 26,652,255

Page | 23 26,652,255 unaccounted funds 549 149,316,133 96,983,854 Wrongly paid salary 52,332,279 over payment of salary 551 Sembabule District 69,649,522 69,649,522 Youth livelihood funds 552 Sironko District 1o,793,069 1o,793,069 unaccounted funds 554 Tororo District 21,695,932 21,695,932 payment of salary to nonexistent staff 555 Wakiso District 103,162,560 1,goo,ooo salary overpayment 58,912,157 Overpayment delayed deletion from payroll

11,961,297 Overpayment on pensron 30,489,106 Excess payment on procurement 5s6 543,200,000 23,000,000 Unicef fund found mlsslng 520,200,000 Youth livelihood funds s57 Butaleja District 5,184,000 5,184,000 unaccounted funds 558 673,085 673,085 overpayment on salary 559 Kaabong District 128,516,371 14,200,000 unaccounted funds 1o4,572,371 Youth livelihood funds g,744,OOO Stolen cement 561 142,899,742 142,899,742 Youth livelihood funds 562 Kiruhura District 1,209,697 1,209,697 overpayment of salary arrears 563 464,839,658 464,839,658 Youth livelihood fund 564 1o7,o49,276.OO 56,074,O20.OO unaccounted funds 41,366,881 Salary excess payment 9,609,375 unaccounted advances 565 Amuria District 2,7OO,OOO

Page | 24 2,7OO,OOO Unaccounted funds 566 Manafiua District 106,o38,443 95,213,654 Youth livelihood funds 10,824,789 unaccounted funds 567 Bukwo District 202,1o4,649 202,1o4,648 Youth livelihood funds 569 Nakaseke District 32,606,096 32,606,086 Youth livehood fund 570 571 Budaka District 55,389,147 55,389,147 unaccounted fund 572 Oyam District 321,701,000 3l7,20r,ooo Youth livelihood 4,500,000 Motor cycle irregularity theft 573 Abim District 195,802,945 155,157,332 Youth livelihood fund 11,873,233 irregular salary payment 6,O32,093 Salary overpayment 17,820,287 irregular payment of hard to reach allowance 4,920,OOO irregular payment 574 Namutumba District 35,820,000 35,820,000 Youth livelihood fund 575 477,881,700 85,520,700 outstanding advance 392,361,OOO Youth livelihood 577 Maracha District 180,652,454 165,1o1,204 Youth livelihood fund 15,551,250 unaccounted funds 578 BukedeaDistrct 1o,672,600 1o,672,600 Unaccounted fund

579 Bududa District 151,947 ,OOO 145,100,000 incomplete civil works 3,847,000 unaccounted funds 3,000,000 fuel unaccounted at shell 580 17 ,609,O39 14,642,32L unaccounted funds 2,966,719 Irregular salary payment to abscondes 581 372,962,340 91,525,000 unaccomplished works

Page | 25 281,437,340 Youth livelihood funds 582 135,557,O42 2,243,625 Salary duplicate payment 5,684,118 Salary overpayment 962,500 Failure to deduct Local Service Tax 126,666,799 Youth livelihood fund 583 Buyende District 162,g2g,016 162,829,016 unaccounted funds 584 28,2O4,OOO 28,204,OOO Iregular procurement acquisition 585 Lamwo District 500,043,640 398,131,956 Youth livelihood fund 97,783,1OO unaccounted funds 4,128,594 Excess payment on road works 586 21,604,2OO 21,604,200 unaccounted for fuel funds 588 Alebtong District 49,979,691 3,618,091 unaccounted advance 26,961,600 incomplete voucher payment 6,400,000 unaccounted fuel payment 13,000,000 Contract irregular viration 589 Bulambuli District 9,7Ol,gg2 3,3O4,194 Salary overpayment 1,959,398 Salary double payment 4,438,400 unaccounted funds 591 Gomba District 106,676,000 5,728,0OO Unaccounted for funds for fuel 27,958,OOO unreciepted local revenue 72,990,OOO Youth livelihood fund outstanding 594 Namayingo District 16,411,844 16,411,844 Youth livelihood 595 Ntoroko District 596 Serere District 4O2,646,384 395,272,064 Youth livelihood fund 7,374,320 irregular salary payment to retirees

Page | 26 597 249,241,300 244,456,OOO Youth livelihood funds 4,785,300 unaccounted funds s98 Kalungu District 32,847,1OO 32,847,1OO unaccounted funds 600 41,9OO,r93

15, 1 1 1,800 unaccounted funds 26,788,393 Youth livelihood funds 601 2,223,663 2,223,663 Salary irregularly paid 602 178,904,859 178,904,858 Youth livelihood funds 603 Ngora District 21,379,OOO 21,379,0OO Unaccounted advances 604 445,429,475 445,429,475 Unaccounted transfer to NGO Hospital 605 Kibuku District 73,94O,667 73,94O,667 youth livelihood funds 607 43r,203,265 132,412,780 Unaccounted funds 298,790,485 Youth livelihood funds 608 10,753,190 10,020,935 salary payment to pensioners 732,255 Overpayment of salary 609 273,777,919 273,777,919 Youth livelihood funds 611 Agago District 612,250,277 268,185,180 Payment for no works Done 116,688,317 Advances not accounted for by officers 4l,87l,OOO unaccounted funds 37,2O1,33O unaccounted funds 148,304,450 Youth livelihood fund outstanding 6t2 Kween District 162,438,912 142,913,912 over payment of salary 19,525,000 Youth livelihood funds 75t Arua Municipal Council 78,590,O47 78,590,O47 Youth livelihood funds 753 Fort-Portal Municipal 37,359,154 Council

Page 127 18,o79,154 over payment of pension 19,280,000 unaccounted funds 754 Gulu Municipal Council 261,848,OO0 240,081,000 Youth livelihood funds 21,767,OOO unaccounted fund 758 Lira Municipal Council 127,425,600 102,412,OOO Youth livelihood funds 25,013,600 Unaccounted funds 759 Masaka Municipal Council 174,935,527 79,260,946 Unaccounted fund 95,674,681 Youth livelihood funds 760 Mbale Municipal Council 84,777,741 59,534,748 Salary overpayment 4,149,493 Irregular salary payment 16,545,000 improper expenditure 4,549,5OO unaccounted funds 762 Moroto Municipal Council 1,2g6,oOO 1,2g6,ooo unaccounted fund 763 Soroti Municipal Council 2,000,000 2,000,000 Unaccounted funds Masindi MC 14,13r,730 14,131,730 Salary overpayment Mityana MC 5,000,000 5,ooo,ooo Unaccounted funds IshakaBushenyi MC 133,547,026 133,547,026 Unaccounted funds Busia MC 28,300,000 28,300,000 Unaccounted funds Total Recovery 13,58O,36O,3L2 13,58O,36O,3L2

Summary of Table 3: i. Youth livelihood UGX 8.6billion ii. Unaccounted for advances UGX 2.3bi11ion iii. Procurement related Taxes not remitted UGX 1.33billion iv. Salary overpayment and related UGX 1.35bi11ion

Ij i:' i (, F l-i ir f: il T E: l; i urt l'i iJ E E Ii i) fl rl iriir\ L c0v/i:liNi.,/iEii i s AC."L]uf i lr c0iyi:rlil-IEt 't '.'r.9 q ;i. :l 0 APR 2018 i< i. ' i; FAil{^.!AF,4Ci I T Cf LJC,Ahi DA P, ii" i:i0)< 717i) |(Af!lirr\!_A

Page | 28