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Reports and Consolidated Financial Statements of the Government of the Republic of Uganda

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Reports and Consolidated Financial Statements of the Government of the Republic of Uganda MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT REPORTS AND CONSOLIDATED FINANCIAL STATEMENTS OF THE GOVERNMENT OF THE REPUBLIC OF UGANDA For the year ended 30 June 2018 Reports and Consolidated Financial Statements of the Government of the Republic of Uganda For the year ended 30 June 2018 ACCOUNTANT GENERAL’S OFFICE GOVERNMENT OF THE REPUBLIC OF UGANDA CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 Table of contents List of Acronyms.........................................................................................................................1 Statement of Responsibilities....................................................................................................2 Statement from the Hon. Minister of Finance, Planning and Economic Development............3 Statement from the Secretary to the Treasury.......................................................................7 Statement from the Accountant General..............................................................................10 Report of the Auditor General...............................................................................................11 Qualified Opinion............................................................................................................19 Basis of Qualified Opinion...............................................................................................19 Key Audit Matters...........................................................................................................20 Emphasis of Matter.........................................................................................................23 Other Matters...................................................................................................................24 Consolidated Statement of Financial Performance................................................................30 The Consolidated Statement of Financial Position...............................................................31 Consolidated Statement of Changes in Equity.....................................................................32 Consolidated Cash Flow Statement [Direct Method]............................................................33 Statement of Outstanding Public Debt...................................................................................34 Statement of Outstanding Advances and Loans issued by Government................................36 Statement of Investments held by the Government...............................................................37 Consolidated Summary Statement of Appropriation...............................................................38 Consolidated Summary Statement of Contingent Liabilities....................................................39 Consolidated Statement of Outstanding Commitments...........................................................40 Summary Statement of losses of public moneys and stores written of, and claims abandoned.............................................................................................................41 Summary Statement of losses of public moneys and stores reported..................................42 Consolidated Statement of Arrears of Revenues.....................................................................43 Statement of stores and other assets (physical assets) purchased...........................................44 Notes to the Financial Statements..........................................................................................45 Other Schedules to the Financial Statements.........................................................................67 ii ACCOUNTANT GENERAL’S OFFICE GOVERNMENT OF THE REPUBLIC OF UGANDA CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 List of Acronyms Acronym Meaning CFS Consolidated Financial Statements DRM Domestic Revenue Mobilization ERA Electricity Regulatory Authority F/Y Financial Year GOU Government of Uganda GDP Gross Domestic Product IEC Information, Education and Communication IFMS Integrated Financial Management System INTOSAI International Organization of Supreme Audit Institutions ISSAI International Standards of Supreme Audit Institutions MDALG Ministry, Department, and other Agencies, Local Government MP Member of Parliament NBI National Backbone Infrastructure NDP National Development Plan NITA-U National Information Technology Authority-Uganda NTR Non Tax Revenue PBS Programme Budgeting System PDMF Public Debt Management Framework PFMA Public Finance Management Act, 2015 PPG Public and Publicly Guaranteed debt PUSATI Public Universities and Tertiary Institutions TAI Treasury Accounting Instructions TSA Treasury Single Account UCF Uganda Consolidated Fund UEGCL Uganda Electricity Generation Company Ltd UETCL Uganda Electricity Transmission Company Ltd UGX Uganda Shillings UNRA Uganda National Roads Authority USD United States Dollars URA Uganda Revenue Authority 1 ACCOUNTANT GENERAL’S OFFICE GOVERNMENT OF THE REPUBLIC OF UGANDA CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 Statement of Responsibilities The Consolidated Financial Statements set out on pages 19 to 85 have been prepared by the Accountant General in accordance with Section 51(1) of the Public Finance Management Act (PFMA), 2015[the Act] as amended and related Public Finance Management Regulations 2016. The Minister of Finance, Planning and Economic Development is the head of the Treasury as mandated under Section 10 of the PFMA. The Minister is responsible for the supervision and control of all matters relating to the financial afairs of Government including the management of the Consolidated Fund. Under the provisions of Section 11 of the Act, the Secretary to the Treasury is an adviser to the Minister on economic, budgetary and financial matters of the Nation. The Secretary to the Treasury is also responsible for setting standards for the management systems and monitor the performance of those systems. This is in addition to management of the Consolidated Fund and any other fund as may be assigned by the Minister. Under Section 46 of the PFMA 2015, the Accountant General is responsible for compilation and consolidation of the accounts of votes, custody and safety of public moneys and resources of Government, custody of all Government certificates of titles for investment, and the maintenance of a register of government investments. The Accountant General is also responsible for ensuring that a system of accounting is established to promptly receive and account for all government monies and other assets. To the best of my knowledge the Consolidated Financial Statements have been prepared in accordance with generally accepted accounting practices and aligned to the Government of Uganda legal and regulatory framework that govern public finances. …………………………… L. Semakula Accountant General To the best of my knowledge these Consolidated Financial Statements are in compliance with the legal and regulatory framework that governs the public funds of the Government of the Republic of Uganda and its operations for the financial year ended 30th June, 2018. …………………………….. Patrick Ocailap For: Permanent Secretary / Secretary to the Treasury To the best of my knowledge the Consolidated Financial Statements and the financial information contained therein have been prepared in accordance with the Act. ………………………………………… Hon. Matia Kasaija (MP) Minister for Finance, Planning & Economic Development 2 ACCOUNTANT GENERAL’S OFFICE GOVERNMENT OF THE REPUBLIC OF UGANDA CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 Statement from the Hon. Minister of Finance, Planning and Economic Development The Central Government consolidated financial statements for the financial year 2017/2018 indicate the extent to which Government has adhered to the budget objective through compliance to the Appropriation Act and Statutory provisions. These Consolidated Financial Statements present the overall performance of Government as a means of accountability to the people of the Republic of Uganda. Government’s policy, priorities and programmes as well as resource allocations were all aligned towards achieving the commitments in the Second National Development Plan (NDP II) and focused on transforming Uganda from a peasant to a modern and prosperous country as stipulated in Vision 2040. During the financial year, the Ugandan economy registered a higher growth of 3.9% up from 3.2% in FY 2016/17, with an economy size of UGX 101.8 Trillion equivalent to USD 27.9 Billion. The economic growth strategy under the theme: Industrialisation for job creation and shared prosperity for FY 2017/2018 hinged on the following four pillars; (i) Increasing production and productivity in the key primary growth sectors of Agriculture, Tourism and Minerals, Oil and Gas. (ii) Industrialisation through Value Addition (iii) Enhanced Private Sector Development, and Increased Public Sector Eficiency Key sector performance highlights for the financial year 2017/18 are summarized below; (i) Revenue Collection URA collected a net revenue of UGX 14,407 Billion against a set target of UGX 15,062 billion, representing a 96% performance and growth of 14.1% as compared to last financial year. The revenue growth was mainly due to initiatives including tax payer education, Tax Register Expansion Program and Block Management. Despite the revenue growth above, URA fell short of its collection target by over UGX 600 billion The failure to meet the revenue
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