Office of the Auditor General the Republic of Uganda

OFFICE OF THE AUDITOR GENERAL

THE REPUBLIC OF UGANDA

REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF

BUVUMA DISTRICT LOCAL GOVERNMENT

FOR THE YEAR ENDED 30TH JUNE 2018

OFFICE OF THE AUDITOR GENERAL UGANDA

Table of Contents

Opinion ...... 3 Basis for Opinion ...... 3 Key Audit Matters ...... 3 1.0 Performance of Youth Livelihood Programme ...... 4 1.1 Underfunding of the Programme ...... 4 1.2 Non Compliance with the Repayment Schedule ...... 5 1.3 Transfer of recovered funds to the recovery account in BOU ...... 5 2.0 Implementation of the Uganda Road Funds ...... 5 2.1 Routine manual maintenance ...... 6 2.2 Routine Mechanised Maintenance ...... 7 2.3 Periodic Maintenance ...... 7 Other Matter ...... 8 3.0 Lack of Property Valuation Roll ...... 8 4.0 Construction of the District Administration Block under Phase II ...... 8 4.1 Un Confirmed Ownership of Land ...... 8 4.2 Lack of Land titles ...... 9 5.0 Under Staffing ...... 9 Other Reporting Responsibilities ...... 12 REPORT ON THE AUDIT OF COMPLIANCE WITH LEGISLATION ...... 12 6.0 Management and Utilization of Natural Resources ...... 12 6.1 Lack of a District Environment Committee ...... 13 6.2 Failure to carry out demarcation of Wetlands ...... 13 6.3 Encroachment on Natural Resources ...... 14 7.0 Status of Medical Equipment at Buvuma Health Centre IV ...... 15 7.1 Lack of Essential Medical Equipment ...... 15 7.2 Lack of Power at the Health Centre IV...... 15 8.0 Lack of a fully Constituted District Physical Planning Committee ...... 16 Appendices...... 18 Appendix 1: Noncompliance with Repayment Schedules ...... 18 Appendix 2; Review of Budget Performance of Uganda Road Funds ...... 20 Appendix 3: Encroachment on Natural Resources ...... 22 Appendix 4: Lack of Essential Medical Equipment ...... 24

LIST OF ACROYNMS

DEC District Executive Committee

DLG District Local Government

HCIV Health Centre IV

IESBA International Ethics Standards Board for Accountants

INTOSAI International Organization of Supreme Audit Institutions

ISSAI International Standards of Supreme Audit Institution

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

MoESTS Ministry of Education Science and Technology and Sports

MoFPED Ministry of Finance Planning and Economic Development

MoGLSD Ministry of Gender Labour and Social Development

NAA National Audit Act

PFMA Public Finance Management Act 2015

S/C Sub-County

TC Town Council

UGX Uganda Shillings

URF Uganda Road Fund

YIG Youth Interest Groups

YLP Youth Livelihood Programme

REPORT OF THE AUDITOR GENERAL ON THE AUDIT OF FINANCIAL STATEMENTS OF BUVUMA DISTRICT LOCAL GOVERNMENT FOR THE YEAR ENDED 30TH JUNE, 2018

THE RT. HON. SPEAKER OF PARLIAMENT

Opinion I have audited the accompanying financial statements of Buvuma District Local Government 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 Buvuma District Local Government 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 Account- ing 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 Re- sponsibilities for the Audit of the Financial Statements section of my report. I am independent of Buvuma District Local Government 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.

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 ad-

3 dressed 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 matters described below as the key audit matters to be communicated in my report.

1.0 Performance of Youth Livelihood Programme The Youth Livelihood Programme (YLP) is a Government Programme being implemented under the Ministry of Gender, Labour and Social Development (MoGLSD). The programme, which started in the financial year 2013-2014, was to respond to the existing challenge of unemployment among the Youths. The programme, which is implemented through the District provides support to the vulnerable youth in form of revolving funds for skills development projects and income generating activities initiated by youth groups.

The audit focused on an amount of UGX.268, 090,000 disbursed in the Financial Year; 2014/2015 whose recovery period of three years had expired by 30th June 2018.

The audit procedures performed focused on ascertaining the following;

 Whether all funds budgeted for YLP during the period under review were actually released and used only for the program.

 Whether all funds advanced to the youth groups were repaid in accordance with the agreed repayment schedule and to establish reasons for failure or delays to repay the funds.

 Whether all funds recovered during the period under review were transferred to the revolving fund account in Bank of Uganda to be disbursed to other Youth Livelihood Groups (YLGs) in accordance with the revolving funding model and

 Whether on a sample basis the funded projects do exist and are operating.

I made the following observations; 1.1 Underfunding of the Programme A review of the approved budget for the YLP program for the FYR 2014/2015 revealed that whereas the District had budgeted to receive UGX.295,149,464 for funding the different youth groups, only UGX.268,090,000 was released resulting into a

shortfall of UGX.27,059,464 (9.2%). This undermined the intended objective of re- sponding to the challenge of unemployment amongst the youths.

The Accounting Officer attributed the underfunding to budget cuts by the Ministry of Gender Labour and Social Development and indicated that he had written to the Min- istry regarding the matter.

I advised the Accounting Officer to liaise with MoGLS to ensure allocation of adquate resources to the program so as to enable the achievement of the intended objective.

1.2 Non Compliance with the Repayment Schedule It was noted that whereas the groups funded in 2014/2015 were expected to have repaid a total amount of UGX.279,364,296 (Interest inclusive) by close of the financial year 2017/2018, only UGX.59,909,085 had been repaid leaving a balance of UGX.219,455,211 (78.6%) outstanding as shown in the Appendix 1

Delayed repayment was attributed to various causes like; complete failure of some projects and disagreements among the group members. Failure to repay in a timely manner implies that other eligible groups were unable to access the funds since this is a revolving fund.

The Accounting Officer explained that the district was making efforts to have the advances recovered from the groups. I advised the Accounting Officer to ensure that all outstanding advances to the groups are recovered to enable other eligible YIG access the funds.

1.3 Transfer of recovered funds to the recovery account in BOU A review of the bank statements of YLP collection accounts revealed that the district had collected UGX.59.909,085 from the groups and all the funds collected had been transferred to the National Revolving Fund Collection Account in BOU by the end of the financial year 2017/18. 2.0 Implementation of the Uganda Road Funds Section 45 (3) of the Public Finance Management Act, 2015 states that “ An Account- ing 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.

Regulation 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 the Council. It has been observed over years that planned and budgeted for activities of a number of Local Govern- ments 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;  The monitoring and supervision was carried out by reviewing reports to assess performance.

Based on the procedures performed, the following observations were made; A total of UGX.646, 914,672 was budgeted to cater for routine manual maintenance, periodic maintenance and emergency activities on several district and community roads using Road gangs and the force Account mechanism. However, the district received UGX.645, 075,785 resulting into a deficit of UGX.1, 838,887. The deficit constituted 0.3% of the budgeted amount.

A review of planned outputs against actual performance is shown in appendix 2.

2.1 Routine manual maintenance A total of 112.4 kms at an estimated cost of UGX.88, 700,000 was planned to be undertaken. Audit revealed that a positive performance of 110.56 kms (98.4%) was actually undertaken at a cost of UGX.84, 908,000 (96% of the budget).

2.2 Routine Mechanised Maintenance There was no routine mechanized maintenance planned or carried out within the year.

2.3 Periodic Maintenance

A total of 21.06 kms at an estimated cost of UGX.253,090,000 was planned to be undertaken. However, audit revealed that 19.62 kms (93%) were actually undertaken at a cost of 303,914,000 (120%) leading to an expenditure above budget of UGX.50,824,000 while a road distance of 1.44 kms was not worked on.

The Accounting Officer explained that extra works of graveling and grading were done on some sections because of the heavy rains in that period which led to more expenditure on fuel, murrum and allowances to staff and indicated that approval was sought to do more works because of the extra funds of UGX.35,804,696 that was received. The Accounting Officer further explained that while planning, fuel was at a price of 3,800 which went up during execution.

An inspection was carried out of Busamuzi-Namugiri-Bugabo Road on the 4th of Oc- tober, 2018 on the works covering 10km that involved sealing, shoulder re-graveling and sealing, major draining works, edge repairs, grading and others. It was observed that a portion of the road was being eroded by water as shown in the picture below;

Part of the gravel on road eroded by water

This is evident that drainage works were not carried out as planned which is attributed to poor monitoring and supervision of road works by management.

The Accounting Officer explained that due to heavy rainfall during the month of April up to June coupled with the loose soils of Buvuma, that section of the road was eroded. He indicated that while it had been planned to be worked on; at the time of Audit the machines had been deployed on another island but would be done when the machines are back.

I advised the Accounting Officer to ensure culverts are installed along this section of the road to facilitate proper drainage.

Other Matter I consider it necessary to communicate the following matters other than those presented or disclosed in the financial statements.

3.0 Lack of Property Valuation Roll Section 4 of the Local Government (Rating) Regulations, 2006 requires the Local Gov- ernment to produce a valuation list every five (5) years. However, the district has never carried out a valuation exercise since its establishment in 2010. I noted that there were no efforts put in place by management to secure funds for the exercise. As a result, the district continues to lose revenues from this source as there is no database for properties to aid collection of the tax.

The Accounting Officer explained that this was caused by the meagre resources of the district that could not support management to take on the expensive venture of valuation of properties. However; he indicated that the enumeration of properties in the district was to begin later in the financial year 2018/2019.

I advised the Accounting Officer to expedite the process.

4.0 Construction of the District Administration Block under Phase II During the financial year under review; the district entered into a contract for the construction of Buvuma district Administration Block phase (2) two at a contract sum of UGX.165,987,654. Construction works were to commence on 1st December 2017 and the completion date set for 30th June 2018. Review of the contract management process revealed the following matters;

4.1 Un Confirmed Ownership of Land In accordance with section 35-b and c of the Building Control Act 2013, an application for a building permit shall be accompanied by the land title or other proof of ownership of the land. Or where the applicant is not the owner of the land on which the building operation is to be carried out, contain the name of the landowner, the land title or other proof of ownership of the land and a statement of the legal relationship between the applicant and the land owner. It was however observed that the district did not have a

land title for the land on which the Administration block was being constructed nor was there consent from the land lord.

There is a risk that the district may lose the property should the land lord wish to re- claim the land. The Accounting Officer explained that transfer forms were signed by the land lord to transfer the land title to the district and the process was in the final stages. However, during discussions held with the Accounting Officer on 12th November 2018, the transfer forms were not presented for verification.

The matter requires urgent attention by the Accounting Officer.

4.2 Lack of Land titles

Regulation 58(4) of the Local Governments Financial and Accounting Regulations, 2007 requires that properties and assets of Local Governments are properly registered and ownership secured through titles. However; it was observed that the district lacked land titles for its properties while some of them are not surveyed. This exposes the district land to encroachment.

The Accounting Officer explained that the district had embarked on the process of ac- quiring land titles in a phased manner which was hindered by inadequate resources.

I advised the Accounting Officer secured land titles for the Council land.

5.0 Under Staffing A review of the district staff establishment revealed that out of the 729 approved posts only 458 (62.8%) positions are filled leaving 271 (37.2%) posts vacant. Notable among the vacant posts are these of Heads of Departments including District Planners, Internal Audit, Commercial Officer and District Health Officer. Understaffing overstretches the available staff beyond their capacity, creates job-related stress to the fewer staff and negatively affects the level of public service delivery to the community.

The Accounting Officer explained that he wrote to the relevant authorities and some positions were filled and that the recruitment plan for the vacant positions was submitted to the Ministry of Public Service for consideration.

I await the outcome of the action taken.

Other Information

The Accounting Officer is responsible for the other information. The other information comprises the statement of responsibilities of the Accounting Officer and the commen- taries by the Head of Accounts and the Accounting Officer, and other supplementary information. The other information does not include the financial statements and my audi- tors’ 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 audit, or oth- erwise 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 ac- countable to Parliament for the funds and resources of Buvuma District Local Govern- ment. 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 District’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 District’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.

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 uncertain- ty exists related to events or conditions that may cast significant doubt on the Com- pany’s ability to continue as a going concern. If I conclude that a material uncertain- ty 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 under- lying 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 de- ficiencies 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 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;

6.0 Management and Utilization of Natural Resources A review of management of Natural resources in form of land forests resources and wet lands in the district during the year 2017/18 revealed the following;

6.1 Lack of a District Environment Committee According to Section 14 of the National Environment Act, 1995 the Authority shall, in consultation with the district council, provide guidelines for the establishment of a Dis- trict Environment Committee on the environment for each district. The function of the committee among others is to coordinate the activities of the district council relating to the management of the environment, ensure that there are appropriate mechanisms in place to address the poor practices on the natural resources and prepare a district state of the environment report every year.

Contrary to the above; I observed that the district neither had a District environment Committee nor Environmental Officer. As a result; there was no environmental action plan in place which makes it difficult to monitor the environment activities adequately to ensure natural resources are protected.

The Accounting Officer explained that under the current law, the Social Services Commit- tee of Council performs the responsibility of the Environment Committee since the inad- equacy of the wage bill could not allow the recruitment of an environment Officer.

I advised the Accounting Officer to ensure that a District environment committee is set up and to plan to recruit the environment officer.

6.2 Failure to carry out demarcation of Wetlands Section 44(1) of the Land Act Chapter 227 states that the Government or a Local Gov- ernment 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.

On the contrary; it was observed that wetlands in the district were neither surveyed to confirm the size of the wetland nor properly demarcated as shown in the schedule below; Sn Type of natural Location of Size of the Is the N/resource Is the area resource (land ,forest, the natural natural included in the register properly wetland) resource resource for wetlands (for demarcated wetlands only) 1 Bukiyindi – Namuziru Nairambi SC Not surveyed No No wetland 2 Bugema – Bugongo Nairambi SC Not surveyed No No wetland 3 Nkusi – Kulwe Nairambi SC Not surveyed No No wetland 4 Nkoka wetland Busamuzi SC Not surveyed No No

5 Kasansa wetland Busamuzi SC Not surveyed No No 6 Bulondo wetland Busamuzi SC Not surveyed No No 7 Butende wetland Busamuzi SC Not surveyed No No 8 Kabugombe wetland Buvuma TC Not surveyed No No 9 Namadiwa-Kalambi Bugaya SC Not surveyed No No wetland 10 Lake Victoria 200M Along the Not surveyed No No buffer zone Lake Shore line

Failure to demarcate the wetlands makes the boundaries obscure which encourage encroachment on the wetlands.

In response, the Accounting Officer explained that the district lacked financial resources to develop the plan but was making efforts to partner with the National Association of Professional environmentalists to have the wetlands demarcated.

I advised the Accounting Officer to liaise with the responsible authorities to have the wetlands demarcated.

6.3 Encroachment on Natural Resources Inspection carried out on the 4th of October 2018 revealed that there were many illegal activities being carried out on the natural resources in the district such as rice growing, deforestation and many others as shown in the pictures below which leads to degrada- tion of the natural resources;

Rice growing at Kabugombe wetland Rice farming, Bulondo wetland in Busamuzi Sc

Deforestation at Kirigye in Nairambi Sc Part of Forests cut down for firewood

Although management was aware of illegal activities carried out on the natural resources as shown in the register maintained by the district, no efforts had been put in place to stop the same. Details are in appendix 3.

The Accounting Officer explained that the district lacked adequate funding and support from other enforcement agencies to protect the natural resources. I advised the Ac- counting Officer to lobby for more funding and support from the relevant agencies to fight illegal activities on natural resources.

7.0 Status of Medical Equipment at Buvuma Health Centre IV

7.1 Lack of Essential Medical Equipment Section 5.17 of the Service standards & Service delivery standards for the Health Sector, 2018 requires that medical equipment is available and properly maintained to meet the needs of the patient population. However, a review of the departmental reports and audit inspection revealed that a number of medical equipment was obsolete, faulty and not in fair condition as summarized below;

Department General observations/Challenges ophthalmic Lack of medical equipment. The Health Centre IV can only handle minor conditions and the rest are referred elsewhere which inconveniences patients. Theatre The Boyle machine in the theatre had no monitor and was not calibrated. Doctors are not able to clearly monitor administration of anesthesia during operations. Maternity The ultra sound machine required servicing. IUD sets were also missing and this made family planning a challenge on the island. Laboratory There was no complete blood count machine, chemistry analyzer and colorimeter. The laboratory is not fully operational. Besides; there was no safety cabinet for handling infec- tious substances, no running water and a Bunsen burner. Lack of X-Ray. There was no x-ray at the centre Details are in appendix 4.

Without essential equipment, emergencies cannot be handled which affects health service delivery. In his response; the Accounting Officer explained that Council would liaise with the Ministry of Health to provide the missing equipment.

I advised the Accounting Officer to take up the matter with the Ministry of Health.

7.2 Lack of Power at the Health Centre IV It was observed that the health centre did not have a consistent power supply which affects operations in the theatre and sterilization of equipment in all the departments. For example; the autoclaves and Gene expert machine needed power to function. I noted that the Ultra sound machine operates only when the generator is on. The reagents and

blood bank refrigerators are not fully utilized as a result. Below are some of the equipment not fully in use as a result of power challenges.

Unused refrigerator Unused gene expert machine

The absence of power makes the Health centre almost non-functional. The Accounting Officer attributed this to the absence of Hydroelectricity in the district.

I advised the Accounting Officer to take up the matter with the responsible authorities to have alternative sources of energy like solar or generator at the Health Centre.

8.0 Lack of a fully Constituted District Physical Planning Committee Part III of the Physical Planning Act 2010, requires each District to establish a physical planning committee which should be composed of the Chief Administrative Officer of the district, who shall be the chairperson; the district physical planner who shall be the secretary, the district surveyor, the district roads engineer, the district education officer; the district agricultural officer; the district water engineer; the district community development officer; the district medical officer; the clerks of all urban and town councils within the district; the district environment officer; the natural resources officer; and a physical planner in private practice appointed by the council on the advice of the secretary to the Board.

On the contrary; the district did not have an environment officer and a physical planner in private practice appointed by the council. Lack of a fully constituted physical planning committee affects its effective operation. As a result; I noted that the district did not have physical development plans which make it difficult to plan and streamline development activities within the district.

The Accounting Officer explained that the district had embarked on the process of hav- ing development plans in the district and indicated that the process of recruiting the En- vironment Officer and soliciting for a Physical Planner in private practice would start soon.

I advised the Accounting Officer to expedite the process.

John F.S. Muwanga AUDITOR GENERAL KAMPALA

10th December, 2018

Appendices

Appendix 1: Noncompliance with Repayment Schedules

S/N Project name Date of Amount Repayment Recovera- 5% ser- Amount Amount disbursed disbursed date ble amount vices fee Repaid due where applicable 1 Victoria fish 2014/2015 7,450,000 27 July 2018 7,450,000 332,500 800,000 6,982,500 packers Associa- tion 2 Tukolerewamu 2014/2015 6,540,000 30 August 2018 6,540,000 327,000 300,000 6,567,000 Buwanga youth group 3 Tolimwavu 2014/2015 5,200,000 31 August 2018 5,200,000 260,000 1,200,000 4,260,000 Mutwego gwemwavu 4 Kiruguma youth 2014/2015 5,163,000 30 October 2018 5,163,000 91,035 3,342,306 1,911,729 with a mission 5 Namitti Agali 2014/2015 5,270,000 02 December 5,270,000 263,500 595,000 4,938,500 Awamu youth 2018 Association 6 Lubya Youth 2014/2015 5,000,000 02 December 5,000,000 250,000 800,000 4,450,000 Mukene Associa- 2018 tion 7 Kaserere youth 2014/2015 8,400,000 01 April 2017 8,400,000 312,500 2,450,000 6,262,500 fishing group 8 Lukalu youth 2014/2015 6,500,000 15 April 2017 6,500,000 165,000 3,200,000 3,465,000 development group 9 Musatu youth 2014/2015 7,338,000 01 May 2017 7,338,000 323,400 2,270,000 5,391,400 poultry project 10 Kasali .B youth 2014/2015 7,327,000 01 June 2017 7,327,000 209,350 4,690,000 2,846,350 poultry project 11 Bwavu 2014/2015 12,500,000 08 June 2017 12,500,000 590,000 700,000 12,390,000 Mpologama 12 Baseka majja 2014/2015 5,870,000 20 June 2017 5,870,000 293,500 1,570,000 4,593,500 youth Heifer 13 Kyanja youth 2014/2015 4,800,000 30 June 2017 4,800,000 225,000 300,000 4,725,000 development group 14 Bukula youth 2014/2015 6,350,000 30 June 2017 6,350,000 209,125 2,637,500 3,921,625 development group 15 Bukiyindi youth 2014/2015 8,256,000 30 June 2017 8,256,000 362,800 1,300,000 7,318,800 development group 16 Kekejje youth 2014/2015 6,550,000 30 June 2017 6,550,000 239,580 3,758,400 3,031,180 piggery group 17 Busamuzi youth 2014/2015 5,700,000 01 July 2017 5,700,000 202,500 3,050,000 2,852,500 dev't association 18 Bukwaya youth 2014/2015 5,184,000 22 July 2017 5,184,000 256,200 60,000 5,380,200 development group

19 Bugaya youth 2014/2015 7,000,000 31 July 2017 7,000,000 350,000 0 7,350,000 development Initiative 20 Tome youth 2014/2015 10,460,000 20 August 2017 10,460,000 423,000 2,000,000 8,883,000 development group 21 Mpolwe youth 2014/2015 7,020,000 30 August 2017 7,020,000 276,500 1,810,000 5,486,500 development group 22 Buwangwe 2014/2015 5,300,000 01 September 5,300,000 246,206 775,879 4,770,327 youth dev't as- 2017 sociation 23 Agri business 2014/2015 11,500,000 30 September 11,500,000 575,000 0 12,075,000 development 2017 enterprise 24 Nezikokolima 2014/2015 8,000,000 30 September 8,000,000 375,000 500,000 7,875,000 youth dev't 2017 group 25 Youth with a 2014/2015 9,000,000 30 September 9,000,000 327,500 2,450,000 6,877,500 mission 2017 26 Obwegasi ge 2014/2015 10,460,000 30 September 10,460,000 523,000 0 10,983,000 manyi cage 2017 farming 27 Mukisa youth 2014/2015 10,650,000 01 October 2017 10,650,000 532,500 500,000 10,682,500 farmers 28 Wakikere 2014/2015 7,450,000 20 October 2017 7,450,000 347,500 500,000 7,297,500 Twezimbe youth dev't group 29 Malijja youth 2014/2015 7,658,000 30 October 2017 7,658,000 327,900 1,600,000 6,385,900 poverty allevia- tion 30 Bajjampola 2014/2015 8,000,000 30 October 2017 8,000,000 300,000 2,000,000 6,300,000 youth heifer project 31 Katambula fish 2014/2015 10,750,000 30 October 2017 10,750,000 412,500 2,500,000 8,662,500 farming project 32 Lwazi youth 2014/2015 7,300,000 30 October 2017 7,300,000 155,000 4,400,000 3,055,000 development group 33 Yesu Amala 2014/2015 5,184,000 20 November 5,184,000 171,700 5,250,000 105,700 youth develop- 2017 ment group 34 Kembo youth 2014/2015 10,460,000 30 December 10,460,000 433,000 1,800,000 9,093,000 development 2017 group 35 Buvuma youth 2014/2015 12,500,000 30 December 12,500,000 585,000 800,000 12,285,000 bakers 2017 Total 268,090,000 11,274,296 59,909,085 219,455,21 1

Appendix 2; Review of Budget Performance of Uganda Road Funds

Vote Planned Planne Amount Audit Remarks Func- Item De- Actual Vari- expendi- Variance d spent for out-put Management Response tion scription Output ance ture (UGX)'000' Output (UGX)'000' variance output (UGX)'000' Periodic Maintenance Fr. Mugalu target 1 0.56 0.56 0 16,347 16,347 rd achieved Extra works of graveling and grading had to be done on some sections because of the heavy rains in that period this led to also more expenditure on fuel, murrum and allowances to staff but Busamuzi- approval was sought to do target not met 2 Namugiri- 10 9.76 0.24 74,092 119,916 -45,824.20 more works because of the by 2.4% Bugabo extra funds of UGX 35,804,696 received as per letter evidence availed. It was further evidenced that when planning we had planned for fuel at a price 3800 but during execution the price was higher Bugaya being an island away from the main Buvuma Island meant that we had to construct a temporary ramp 18.5% of for the ferry to dock for road output not equipment. we had planned Mubale- 3 6.5 5.3 1.2 105,651 110,651 -5,000 met despite 4 trips but ended up doing 6 Kijaka release of trips instead this meant that more funds. additional costs had to be incurred in terms of fuel and constant of temporary ramp because of the High water waves Bukwaya- target 4 4 4 0 57,000 57,000 0 Namugiri achieved All planned Sub –total 21.06 19.62 1.44 253,090 303,914 output not achieved Routine mecha- No routine mechanized maintenance was planned or carried out nized mainte- within the year nance Routine manual maintenance

Some road workers left target not Unpaved work and others worked 112.4 110.56 1.84 88700 84,908 3,792 achieved by roads 1.64% less than expected hence the short fall in output All planned Sub-Total 112.4 110.56 1.84 88,700 84,908 3,792 output not achieved Other qualifying Works Purchase Some road workers failed to of road purchase road tools hinder- Was not in the Tools & 1,405 -1,405 ing performance hence ne- - work plan office cessitated us to do so on equipment their behalf. No evidence of due to extra funds received Equipment source of that necessitated more 40,000 43,195 -3,195 repairs extra funds works we incurred extra spent expenses in terms of servic-

ing and maintenance of equipment District Road 4,000 4,000 Committee - Operations Unforeseen allowances to Supervisi- the ferry crew going to si- Overspent by Bugaya to take road equip- on/Admini 22,893 29,867 -6,973.75 30% ments resulting from in- strative creased trips on Mubaale costs kijaka road Bank 0 845 -845 charges Capacity Under 3,263 200 3,063 Building performed Sub-total 70,157 79,512 Maintenance of bridg- es/culverts and road safety activities Extra costs incurred from movement from landing site at Bugaya island to the Mubaale- Target 2 2 0 4,930 5,830 900 construction site 5.33km, Kijaka achieved collection of stones from Namagulu area point, murrum filling of two culverts Busamuzi- Target Bugabo 2 2 0 4,927 4,980 53 achieved road Sub-Total 10,359 10,810

Appendix 3: Encroachment on Natural Resources

S/N Type of nat- Location of Size of the Is the area Type of activities car- Are the activi- Are activities mon- ural resource the natural natural re- properly ried out on the re- ties legal or itored regularly? (land ,forest, resource source demarcat- source illegal Are forest patrols wetland) ed conducted? DISTRICT LOCAL FOREST RE- SERVES

Nsense Nairambi 36 Yes Tree planting Legal Yes SC Fire wood, medicine collection Cultivation Illegal

Namunyolo Nairambi 85 Yes Tree planting Legal Yes SC Firewood, medicine legal collection Crop farming illegal Kirigye Nairambi 73 Yes Fire wood and fuel Yes SC wood collection. Legal Nawaitale Busamuzi 93 No Cultivation in some Illegal Yes SC areas. Mawanga Busamuzi 10 No A few settlements. Yes SC Farming Beach establishment Illegal (camp Oven) Buduuli Busamuzi 30 Yes A few settlements. Illegal Yes SC Kerenge Lwajje SC 73 No Firewood , medicine Legal Yes collection

CENTRAL FOREST RESERVES

Bira Buvuma 313 Yes Firewood , medicine Legal Yes T/C collection Pitsawying Illegal Buloba Buvuma 269 Yes Legal Yes Firewood , medicine T/C collection Pitsawying illegal Nakunyi Buvuma 111 Yes Firewood , medicine Yes T/C collection legal Bugomba Busamuzi 272 yes Illegal Yes Charcoal burning SC Bugusa Busamuzi 243 Yes Tree planting legal Yes SC cultivation illegal Bukaibale Busamuzi 1,137 Yes Cultivation Illegal Yes SC A few settlements Sozi Busamuzi 220 Yes legal Yes Tree planting SC Buluku Busamuzi 300 yes Cultivation Yes SC A few settlements Illegal Buwanzi Busamuzi 458 Yes Charcoal burning Illegal Yes SC Firewood , medicine collection legal Yubwe Nairambi 197 Yes Cultivation Legal Yes SC A few settlements Olamusa Nairambi 391 Yes Legal Yes Tree planting SC

Namabowe Nairambi 130 yes Firewood , medicine Illegal Yes SC collection Pitsawying Lukale Nairambi 383 Yes Cultivation Illegal Yes SC A few settlements Kande Nairambi 249 Yes Firewood , medicine legal Yes SC collection Pitsawying illegal Koja Nairambi 231 Yes Cultivation Illegal Yes SC A few settlements Kakonwa Nairambi 743 Yes Tree planting legal Yes SC Cultivation A few settlements illegal Ngogwe Bweema 62 Yes Minimal Encroach- Illegal Yes SC ment Mala Island Bweema 03 yes - Yes No activity SC Izinga Island Bugaya SC 104 yes Firewood , medicine Yes collection Legal Pits awying illegal DISTRICT WETLANDS S/N Type of nat- Location of Size of the Is it in- Is the Are activi- Are activities ural resource the natural natural re- cluded in area Type of activities ties legal monitored regu- (land, forest, resource source register properly carried out on the or illegal larly? wetland) of wet- demar- resource lands? cated? Bukiyindi - Nairambi Not surveyed No No Paddy rice farm- Yes Namuziru SC ing Illegal Bugema – Nairambi Not surveyed No No Yes Paddy rice farm- Bugongo SC Illegal ing wetland Nkusi – Kul- Nairambi Not surveyed No No Paddy rice farm- Yes we wetland SC ing Illegal Nkoka wet- Busamuzi Not surveyed No No Paddy rice farm- Yes land SC ing Illegal Kasansa Busamuzi Not surveyed No No Paddy rice farm- Yes wetland SC ing Illegal Bulondo wet- Busamuzi Not surveyed No No Paddy rice farm- Yes land SC ing Illegal Butende Busamuzi Not surveyed No No Paddy rice farm- Yes wetland SC ing Illegal Kabugombe Buvuma TC Not surveyed No No Paddy rice farm- Yes wetland ing Illegal

Namadiwa- Bugaya SC Not surveyed No No Illegal Yes Kalambi wet- Yam cultivation land Lake Victoria Along the Not surveyed No No Settlements Yes 200M buffer Lake Shore Farms Illegal zone line Fishing Kyanja PS Bweema Not surveyed N/A Yes Legal Yes Education services SC Lingira PS Buwooya Not surveyed N/A Yes Legal Yes Education services SC Bugabo Par- Buwooya Not surveyed N/A Yes Legal Yes Education services ents PS SC

Appendix 4: Lack of Essential Medical Equipment

THEATRE S/N Name Of Equipment Required Use/Purpose Quantity Variance Remarks Quantity available 1 C/s sets (caesarean 5 For C-Section operations 4 1 1 set lacking sets) 2 Oxygen cylinders (large 3 For administration of Oxygen 0 3 - size) 3 D&C sets 3 Used for dilatation and curettage 2 1 The set is incom- plete. It has no curette 4 MVA 3 For manual volume aspiration 0 3 5 Ambu bag 1. Neonatal 2 Used to provide positive pres- 1 1 1 needed sure ventilation 2. Adult 2 Used to provide positive pres- 1 1 1 needed sure ventilation 6 Penguin sucker 2 Helps in clearing the babies air- 1 1 1 needed way 7 Nasal oxygen prongs 10 Used to deliver supplementary 2 8 8 needed oxygen 8 Laparotomy set 2 Surgical incision into the abdo- 1 1 1 needed men for evacuation or preparation for surgery

9 Pulse oximeter 2 Non-invasive method for moni- 0 2 2 needed toring oxygen levels 10 Suction machine 1. Manual 1 Extraction of mucus and other 1 0 The Machine is fluids faulty 2. Electric 1 Extraction of mucus and other 0 1 1 needed fluids 11 Boyle’s machine bp calf 5 For administering anaesthesia 1 4 It has no monitor and is not calibrated hence administration of anaesthesia is done blindly 12 Anaesthetic trolley 1 For administering anaesthesia 0 1 1 needed 13 Oxygen concentrator 10 For administering oxygen 1 9 9 needed 14 Laryngoscope 1 Used for examining the larynx 0 1 1 needed 15 Blood pressure ma- 2 Measuring pressure 0 2 2 needed chines[bp] 16 Autoclave 1. Electric 1 Used for sterilization 2 -1 They have power challenges 2. Non electric 1 Used for sterilization 0 1 17 Steam steriliser 1 Sterilising medical equipment to 0 1 Use the autoclave get rid of bacteria and other pathogens

OPTHALMIC DEPARTMENT

S/N Name Of Equipment Required Use/Purpose Quantity Variance Remarks Quantity available

1 Slit lamp 1 Used for examining the interior of the 0 1 1 needed eye 2 Tonometer 2 Used to determine the intraocular 0 2 2 needed pressure 3 Ophthalmoscope 2 Majorly for the inspection of the reti- 0 2 2 needed na 4 Refraction set 2 Used in reflection and refraction 0 2 2 needed demonstrations 5 Lid rotation set 2 For examining and surgery of the eye 0 2 2 needed 6 Loop (with lights and 3 Used in eye surgery 0 3 3 needed battery)

MATERNITY DEPARTMENT

S/ Name Of Equipment Required Use/Purpose Quantity variance Remarks N Quantity available 1 Blood pressure ma- 5 Measuring blood pressure 0 5 5 needed chines[bp] 2 Doppler (hand held) 1 Used in determining the blood flow 0 1 1 needed 3 Fetoscopes 10 Allow access to the foetus 1 9 9 needed 4 Episiotomy set 2 To aid child delivery 0 2 2 needed 5 MVA sets (manual vac- 2 For manual volume aspiration 0 2 2 needed uum aspiration sets) 6 Ultra sound scan ma- 1 Used for scanning 1 0 • It needs ser- chine (basic) for obstet- vicing to im- rics prove function- ality; in its current state, it cannot be used to tell the gesta- tion stage of the foetus • Needs a linear probe to perform other func- tions • No sono paper for the printer 7 Penguin sucker 5 Used for aspiration or cleaning of 2 3 3 needed mucus 8 Ambubag 0 1. Adult 2 Used to provide positive pressure 0 2 2 needed ventilation 2. Neonatal 3 Used to provide positive pressure 1 2 Have other 2 ventilation that are not functional 9 Autoclave 0 1. Electric 1 Used for sterilization 1 0 Share with the theatre 2. Non electric 1 Used for sterilization 1 0 10 IUD set 2 For incision of birth control devises 0 2 2 needed 11 Implant removal set 2 For removing in-plants 0 2 2 needed

LABORATORY DEPARTMEMNT

S/N Name of Equipment Required Use/Purpose Quantity Variance Remarks quantity Available 1 Refrigerator for 1 Keep reagents below 0 1 1 needed but there is no reagents room temperature Power

2 Blood bank refriger- 1 Keeping blood at recom- 1 0 No Power hence limited func- ator mended temperature tionality 3 Microscopes 2 For microscopic examina- 1 1 1 needed tion of samples 4 Electric centrifuges 5 Separation of fluids from 0 5 HCIV has one manual centri- (bench top) densities fuge 5 Autoclave (in wash 1 For sterilization 0 1 1 needed up) 6 Bunsen burner 1 For drying slides 0 1 Have an improvised bunsen burner. 7 Colorimeter 1 Measuring the intensity of 0 1 1 needed colour 8 Haematology ana- 1 Complete blood count 0 1 1 needed lyser (CBC) machine 9 Chemistry analyser 1 For determination of the 0 1 1 needed concentration of analyses