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Office of the President OFFICE OF THE AUDITOR GENERAL ANNUAL REPORT OF THE AUDITOR GENERAL FOR THE YEAR ENDED 30 JUNE 2007 VOLUME 2 CENTRAL GOVERNMENT TABLE OF CONTENTS INTRODUCTION .............................................................................. 1 GENERAL OBSERVATIONS .................................................................. 5 REPORT OF THE AUDITOR GENERAL ON GOVERNMENT OF UGANDA CONSOLIDATED FINANCIAL STATEMENTS ............................................. 29 OFFICE OF THE PRESIDENT ............................................................... 42 STATE HOUSE ............................................................................... 44 OFFICE OF THE PRIME MINISTER ........................................................ 47 PUBLIC SERVICE ............................................................................ 57 FOREIGN AFFAIRS .......................................................................... 59 JUSTICE AND CONSTITUTIONAL AFFAIRS .............................................. 66 FINANCE, PLANNING AND ECONOMIC DEVELOPMENT ............................... 71 AGRICULTURE, ANIMAL INDUSTRY AND FISHERIES .................................. 77 LANDS, HOUSING AND URBAN DEVELOPMENT ........................................ 93 WATER AND ENVIRONMENT ............................................................ 101 EDUCATION AND SPORTS ............................................................... 119 HEALTH 140 WORKS AND TRANSPORT ............................................................... 152 DEFENCE …………………............................................................................ 168 INTERNAL AFFAIRS ....................................................................... 175 INFORMATION AND COMMUNICATION TECHNOLOGY .............................. 181 LOCAL GOVERNMENT .................................................................... 184 TOURISM, TRADE AND INDUSTRY ..................................................... 185 ENERGY AND MINERAL DEVELOPMENT ............................................... 188 GENDER, LABOUR AND SOCIAL DEVELOPMENT ..................................... 197 ii UGANDA POLICE .......................................................................... 203 UGANDA PRISONS ........................................................................ 211 NATIONAL AGRICULTURAL RESEARCH ORGANISATION (NARO) .................. 219 NATIONAL AGRICULTURAL ADVISORY SERVICES (NAADS) ....................... 224 JUDICIARY …………………………………………………………………………… 247 DIRECTORATE OF PUBLIC PROSECUTION (DPP) .................................... 251 PARLIAMENTARY COMMISSION ........................................................ 253 HEALTH SERVICE COMMISSION ........................................................ 254 JUDICIAL SERVICE COMMISSION ...................................................... 254 ELECTORAL COMMISSION ............................................................... 256 UGANDA HUMAN RIGHTS COMMISSION .............................................. 259 PUBLIC SERVICE COMMISSION ......................................................... 261 LAW REFORM COMMISSION ............................................................. 261 EDUCATION SERVICE COMMISSION ................................................... 262 LOCAL GOVERNMENT FINANCE COMMISSION ....................................... 262 UGANDA BLOOD TRANSFUSION SERVICES ........................................... 263 UGANDA LAND COMMISSION ........................................................... 264 UGANDA INDUSTRIAL RESEARCH INSTITUTE ........................................ 270 UGANDA AIDS COMMISSION ............................................................ 274 MAKERERE UNIVERSITY ................................................................. 277 MBARARA UNIVERSITY ................................................................... 301 KYAMBOGO UNIVERSITY ................................................................ 305 GULU UNIVERSITY ........................................................................ 311 MAKERERE UNIVERSITY BUSINESS SCHOOL ......................................... 316 MULAGO HOSPITAL ....................................................................... 318 BUTABIKA HOSPITAL ..................................................................... 328 iii ARUA HOSPITAL ........................................................................... 331 GULU HOSPITAL ........................................................................... 342 JINJA HOSPITAL ........................................................................... 343 LIRA HOSPITAL ............................................................................ 350 MASAKA HOSPITAL ....................................................................... 351 FORT PORTAL HOSPITAL ................................................................ 355 KABALE HOSPITAL ........................................................................ 359 HOIMA HOSPITAL ......................................................................... 362 SOROTI HOSPITAL ........................................................................ 366 MBARARA HOSPITAL ..................................................................... 367 LONDON MISSION ........................................................................ 370 NEW YORK MISSION ..................................................................... 378 WASHINGTON MISSION ................................................................. 387 NEW DELHI MISSION ..................................................................... 392 CAIRO MISSION ........................................................................... 395 ADDIS ABABA MISSION .................................................................. 399 BEIJING MISSION ......................................................................... 409 OTTAWA MISSION ........................................................................ 411 TOKYO MISSION .......................................................................... 413 TRIPOLI MISSION ......................................................................... 416 RIYADH MISSION ......................................................................... 420 COPENHAGEN MISSION .................................................................. 420 NAIROBI MISSION ........................................................................ 424 DAR ES SALAAM MISSION ............................................................... 428 ABUJA MISSION ........................................................................... 431 BRUSSELS MISSION ...................................................................... 434 iv ROME MISSION ............................................................................ 442 JUBA MISSION ............................................................................. 447 KINSHASA MISSION ...................................................................... 449 GENEVA MISSION ......................................................................... 452 PRETORIA MISSION ...................................................................... 459 KHARTOUM MISSION ..................................................................... 463 KIGALI MISSION .......................................................................... 464 MOSCOW MISSION ....................................................................... 470 BERLIN MISSION .......................................................................... 477 PARIS MISSION ............................................................................ 479 TEHRAN MISSION ......................................................................... 483 CANBERRA MISSION ...................................................................... 485 APPENDIX CONSOLIDATED FINANCIAL STATEMENTS OF THE REPUBLIC OF UGANDA v 1.0 INTRODUCTION I am required by Article 163 (3) of the Constitution of the Republic of Uganda to audit and report on the Public Accounts of Uganda and of all public offices including the courts, central and local government administrations, Universities and public institutions of like nature and any public corporations or other bodies established by Act of Parliament. Under Article 163 (4) of the Constitution I am also required to submit to Parliament annually a report of the accounts audited by me for the year immediately preceding. I am therefore issuing this report in accordance with the above provisions. This is Volume two of my Annual Report to Parliament and it covers financial audits carried out on Central Government Ministries, Agencies, Universities, Uganda Missions abroad and Referral Hospitals. Separate volumes have been issued on the Annual Performance of the Office of the Auditor General, audit of Local Governments, and audit of Statutory Corporations. In this introduction I give an overview of the financial audit work carried out, status of completion of the audits and a summary of the audit opinions issued on the financial statements of the entities audited. Part II of this report presents the major general observations and cross cutting issues arising from the results of the audits carried out. In Part III, I present my findings and audit opinion on Government of Uganda Consolidated Financial statements and all the significant findings made on the other audited entities i.e Ministries, Agencies, Universities, Referral Hospitals, and Uganda Missions abroad. 1 1.1 STATUS OF COMPLETION OF AUDITS The Directorate of Central
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