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

OTUKE DISTRICT LOCAL GOVERNMENT FOR THE

YEAR ENDED 30TH JUNE 2018

OFFICE OF THE AUDITOR GENERAL UGANDA TABLE OF CONTENTS

LIST OF ACRONYMS ...... 2 Opinion ...... 3 Basis for Opinion ...... 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 Failure to transfer recovered funds to the recovery account in BOU ...... 5 1.4 Inspection of performance of Youth Projects...... 6 1.4.1 Oringolut youth piggery group...... 6 1.4.2 Note en Kuc youth Poultry group...... 6 2.0 Implementation of the Uganda Road Fund ...... 7 2.1 Funding of the Uganda Road Fund ...... 7 3.0 Unsupported Pension and Gratuity Payments ...... 10 4.0 Revenue Shortfall ...... 10 5.0 Under-collection of Local Revenue ...... 10 Other Matter ...... 11 6.0 Under Staffing in Orum HCIV ...... 11 7.0 Poor pupil to facilities ratio ...... 11 Other Information ...... 12 8.0 Lack of legal ownership of Forest reserves and Wetlands ...... 15 9.0 Unlicensed activities on Natural resources ...... 15 10.0 Shortage of medical equipment at the health facility ...... 16 11.0 Lack of Budget for the Physical Planning committee...... 16 12.0 Revenue generated by committees ...... 17 13.0 Lack of Safe Work Procedures for the road equipment ...... 17 14.0 Procurement Compliance review by PPDA ...... 18 Appendices ...... 20 Appendix I: Compliance with Repayment Schedules ...... 20 Appendix II: Understaffing in Orum HCIV ...... 24 Appendix III: Forest reserves without land titles ...... 26 Appendix IV: Shortage of Medical Equipment ...... 27 Appendix V: Inadequate Protective Wear ...... 29 Appendix VI: Management of road Equipment ...... 29

LIST OF ACRONYMS BOU Bank of Uganda

DEC District Executive Committee

IESBA International Ethics Standards Board for Accountants

INTOSAI International Organization of Supreme Audit Institutions

ISSAI International Standards of Supreme Audit Institutions

MOFPED Ministry of Finance Planning and Economic Development

MOGLSD Ministry of Gender Labour and Social Services

MOPS Ministry of Public service

NAA National Audit Act

PPDA Public Procurement and Disposal Authority

RDC Resident District Commissioner

URF Uganda Road Fund

UWEP Uganda Women Entrepreneurship Programme

YIG Youth Interest Groups

YLP Youth Livelihood Programme

REPORT OF THE AUDITOR GENERAL ON THE AUDIT OF FINANCIAL STATEMENTS OF OTUKE 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 Otuke 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 Otuke 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, 2015 and the Local Government Financial and Accounting Manual, 2007.

Basis for Opinion I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the District 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 Matter 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

3 were addressed in the context of my audit of the financial statements taken as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters;

I have determined the matter described below as key audit matter 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) through the Local Government Administrations. The programme, which started in the financial year 2013-2014, was to respond to the existing challenge of unemployment among the Youth. The programme is implemented through the District and support to the vulnerable youth in form of revolving funds for skills development projects and income generating activities.

The audit focused on an amount of UGX. 231,189,800 disbursed to the District in the Financial Year 2014/2015 since no disbursement was made for F/Y2013/2014 and whose recovery period of three years had expired by 30th June 2018. The audit procedures performed included 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 and  Whether on a sample basis the funded projects exist and are operating. I made the following observations; I made the following observations; 1.1 Underfunding of the Programme A review of the approved budget for the YLP program revealed that whereas the District had budgeted for a total amount of UGX.300,000,000 for the financial year 2014/2015, only UGX. 231,189,800 (77%) was realized resulting in a shortfall of UGX. 68,810,200 (23%). The released funds were disbursed to the approved Interest Groups. This undermined the intended objective of responding to the challenge of unemployment amongst the Youths.

The Accounting Officer explained that the variance of UGX. 68,810,200 was beyond the District control because the MoGLSD YLP programme secretariat determines how much to give a group after further scrutiny of funds applied for visa-visa the project to be implemented by the group.

I advised the Accounting Office to liase with Ministry of Gender Labour and Social Development to ensure allocation of adequate resources to the programme so as to achieve the intended objective of the Youth employment.

1.2 Non-Compliance with the repayment schedule It was observed that whereas the groups funded in 2014/2015 were expected to have repaid a total amount of UGX. 243,798,975 (Interest inclusive) by close of the financial year 2017/2018, only UGX.62,161,600 (25%) was collected leaving a balance of UGX. 181,637,375 (75%) outstanding as shown in appendix I. Delayed repayment was attributed to slow rate to repay, lack of funds, late releases and youth based challenges such as diversion of funds and failure to maintain records.

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 has embarked on mobilization for recoveries in all the groups funded to ensure recovery of funds disbursed to them. Amongst the strategies being used are renegotiating the repayments schedules for all groups affected by natural disasters and groups that have failed to recover funds disbursed to them in time and in some circumstances forceful means are used.

I advised the Accounting Officer to ensure that all outstanding amounts are recovered.

1.3 Failure to transfer recovered funds to the recovery account in BOU A review of the bank statements of YLP collection accounts revealed that out of the collected amount of UGX.62,161,600, the district had not transferred UGX.12,321,111 to the National Revolving Fund Collection Account by the end of the financial year 2017/18.

The failure to transfer the collected funds to the recovery account were attributed to programme based challenges and youth based challenges such as diversion of funds and failure to maintain records. Failure to repay in a timely manner implies that other eligible groups were unable to access the funds since this is a revolving fund. This undermines the effective implementation of the program.

The Accounting Officer explained that the delays to transfer funds was due to the cost of making weekly transfers to BOU compared to making monthly transfers because the cost of transfers may affect the recovered funds if done on weekly basis.

I advised the Accounting Officer to ensure that the collected funds are transferred.

1.4 Inspection of performance of Youth Projects. Physical inspection was carried out on two selected projects namely; Oringolut Youth Piggery Group and Note en Kuc Youth Poultry Group who had received funds in 2014/2015 to ascertain whether they were being implemented in accordance with the operational guidelines. The following observations were made;

1.4.1 Oringolut youth piggery group. Section 2.8 (f) of the project guidelines requires the enterprise to have a clear physical address/location.

Physical field inspection of Oringolut youth piggery group revealed that the business is registered and found to be located in Adwari Sub-County but it lacked the required sign post for identity. In addition, the records for the project could not be availed.

1.4.2 Note en Kuc youth Poultry group. Physical field inspection of IIwange Piggery Youth Project revealed that the business is register and found to be located in Ogor Sub County but it lacked the required sign post for identity. Furthermore, records regarding the project operations were not availed.

The Accounting Officer explained that the district always ensures that all projects are identified by providing budget for the sign post for every project but for those two,

members claimed that the sign posts were stolen by unknown people. In addition, the youths were trained in record keeping and were advised to always handle group records with care.

I advised the Accounting Officer to follow up this matter.

2.0 Implementation of the Uganda Road Fund Section 45 (3) of the Public Finance Management Act, 2015 states that “ An Accounting Officer shall enter into an annual budget performance contract with the Secretary to the Treasury which shall bind the Accounting Officer to deliver on the activities in the work plan of the vote for a Financial year, submitted under section 13 (15)” of the said Act.

It has been observed over years that planned and budgeted for activities of a number of Local Governments are not implemented thereby affecting service delivery.

During the overall office wide planning, I identified risks such as inadequate release of funds and failure to undertake budget monitoring and supervision that are likely to be the causes of failure to implement the planned activities under Uganda road fund. The focus was put on the planned major outputs under Uganda Road Fund which greatly impact on service delivery in the Local Governments. Consequently, I developed specific audit procedures which included ascertaining whether;  The budgeted URF releases for Local Governments for the year under review were actually received ;  The planned URF outputs were achieved;  The monitoring and supervision was carried out by reviewing reports to assess performance. Based on the procedures performed, the following observations were made; 2.1 Funding of the Uganda Road Fund A total of UGX.450,000,000 was budgeted to cater for routine manual maintenance, routine mechanized maintenance, periodic maintenance and emergency activities on several district roads using road gangs and the Force Account mechanism .

However, the district received UGX.444,612,709(98%) resulting into a deficit of UGX.5,387,291. The deficit constituted 2% of the budgeted amount.

Routine mechanised maintenance It was observed that during the year under review, the District spent a total of UGX.89,746,000 on routine road maintenances, and emergency works. A review of the supporting documentation and field inspections revealed the following;

 A contract for supply of culverts was awarded to M/s MOFA Investments however, a payments of UGX.14,664,000 was made to M/s Pur-Ber Engineering Works. In addition, supporting documents for the delivery of the culverts were not presented for verification.  On inspection it was observed that at Ocokiwa Swamp the damaged culverts had not been removed from the site and the wall gabions had started giving way implying that they had not been set properly as shown below:

Damaged culverts still at site and loose stones from the gabions

 At Okwongo TC- Okere Road, it was observed that the road shoulders had been eaten up, and the side drains had not been opened for the road that was created as shown in below:

Road Shoulders eaten up and no side drains opened

The shortcoming have been a result of poor supervision of the works.

The Accounting Officer explained that although M/s MOFA Investments was awarded the contract, it did not take the offer. M/s Pur-Ber Engineering Works was then given and accepted offer under the same terms and paid as per the budget. All these were done by

the Contracts Committee. Regarding Ocokiwa Swamp, the damaged culverts will be removed when the water dries out.

I advised the Accounting Officer to address the defects.

2.2 Low Cost Sealing at Adolo Swamp

It was observed that the District signed a contract with Roone Engineering Company Ltd for Low Cost Sealing of Adolo Swamp financed under RTI referenced Otuk586/Wrks/17-18/00008 at a contract price of UGX.241,688,694. The contract start and end dates were 15h February 2018 and 15h Jun 2018. By the time of audit UGX.225,432,289 (93%) of the contract sum had been paid.

Document review and inspections revealed the following:

 The stone chippings had already become loose and falling off even before the site could be handed over implying that poor quality work may have been done as shown below:

Loose chippings on the road before handover

 The middle of the road at the motor way was already developing potholes before the contract was handed over as shown below

Motor Way already developing potholes

The Accounting Officer explained that the sweeping of the stone chippings was yet to be done by the contractor but retention money could be used to correct the defects after the Defects Liability Period elapses.

I advised the Accounting Officer to ensure that the defects are corrected before payment of retention money.

Emphasis of matter Without qualifying my opinion, I draw attention to the following matters disclosed in the financial statements 3.0 Unsupported Pension and Gratuity Payments It was observed that the District paid a sum of UGX.233,605,815 as pension and gratuity without supporting approvals and gratuity computation forms as verified and processed by Ministry of Public Service disclosed in the statement of outstanding commitments on page 33 of the financial statements.

The Absence of the supporting reports, pension certificates, pension files, letters of administration and computation schedules, limits confirmation of the identity of the paid beneficiaries and completeness and accuracy of amounts paid to each in respect to pension and gratuity.The Accounting Officer explained that there was a delay in obtaining computations from public service.

I advise the Accounting Officer to ensure that the forms are obtained. 4.0 Revenue Shortfall The District realised total revenue from government and transfers from other Government units amounting to UGX.11,264,288,690 out of the budgeted amount of UGX.12,510,474,000 resulting into a shortfall of UGX.124,618,310 per statement of appropriation on page (14) of the financial statements.

The shortfall negatively affect service delivery and achievement of the District development objectives for the year. The Accounting Officer attributed the shortfall to majorly budget cuts by the Ministry of Finance, Planning and Economic Development.

I advised the Accounting Officer to continue engaging Ministry of Finance planning and Economic Development to honour its obligations. 5.0 Under-collection of Local Revenue It was observed that the district had budgeted to collect a total of UGX. 139,794,000 in local revenue however, it was noted that only UGX. 130,065,734 (93%) were realized resulting into a shortfall of UGX.79,728,266 (7%) as disclosed in the

statement of revenue collected on page (29) to the financial statements. The under collection of local revenue adversely affects service delivery in the District.

The Accounting Officer explained that this was due to lack of revenue officers and a small revenue base but the district has tendered out 4 (four) markets and intends to recruit Revenue Officers with the ongoing restructuring of staff in the Local Government.

I advised the Accounting Officer to establish a Revenue Enhancement Committee to develop strategies for revenue enhancement.

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

6.0 Under Staffing in Orum HCIV The Public Service Standing Orders Chapter (A-a) paragraph 15(a) requires Ministry of Public Service to determine the terms and conditions of service and the structures of Local Governments.

It was observed that Orum Health Centre IV had an approved staff establishment of 47 positions out of which only 34 (72%) positions were filled leaving a staffing gap of 13 (28%) positions as shown in appendix II.

Understaffing overstretches the available staff beyond their capacity create job related stress to the fewer staff and negatively affect service delivery.

The Accounting Officer explained that this is due to insufficient PHC wage allocation but requests have been submitted for additional wage bill to Permanent Secretary Ministry of Finance.

I advised the Accounting Officer to liaise with the relevant authorities to ensure that the vacant posts are filled to improve on health service delivery.

7.0 Poor pupil to facilities ratio It was observed that the essential pupil to facilities at the school ratios were very high and below the minimum standards of schools in Uganda as recommended by the Ministry of Education and Sports as shown in table below:

Ratio Recommended ratio Current ratio High Pupil to Classroom Ratio 1:53 1:84 High Pupil Latrine Coverage 1:40 1:118 Desks To Pupil Ratio. 1:3 1:5

The limitation in educational facilities could negatively affect the general academic performance of the schools.

The Accounting Officer explained that this was due to limited structures and facilities in the school due to inadequate government funding and small number of schools in the district.

I advised the Accounting Officer to continue lobbying for more facilities for the schools in the District from the responsible Ministries to improve the standard of education in the District.

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 commentaries by the Head of Accounts and the Accounting Officer, and other supplementary information. The other information does not include the financial statements and my auditors’ report thereon. My opinion on the financial statements does not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.

In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially consistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information; I am required to report that fact. I have nothing to report in this regard.

Management Responsibilities for the Financial Statements Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 of the Public Finance Management Act, 2015, the Accounting Officer is accountable to Parliament for the funds and resources of Kaberamaido District Local Government.

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

uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.  Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Accounting Officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

I also provide the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with 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;

8.0 Lack of legal ownership of Forest reserves and Wetlands Section 45 (1) of the Uganda Land Act,1998 (as emended) states that a government or local government shall hold in trust for the people and protect natural lakes, rivers, ground water, natural ponds, natural streams, wetlands ,forest reserves, national parks and any other land reserved for ecological and touristic purposes for the common good of the citizens of Uganda.

Documentation review revealed that the district is responsible for various pieces of land, forest reserves and wetlands as shown in appendix III. However, the ownership of the resources could not be ascertained in the absence of certificates of ownership by the District.

Lack of legal ownership of the natural resources exposes them to possible risks of encroachment and misuse. The Accounting Officer explained that due to inadequate funding, land, forest and wetlands could not be surveyed and titled.

I advised the Accounting Officer to ensure that the various resources in form of land, forests and wetlands under the management of the district are surveyed and issued with titles in the names of the District.

9.0 Unlicensed activities on Natural resources According to Sec. 38(3) of the National Environment Management Act, the authority may, in consultation with the lead agency and the district environment committee, declare any wetland to be a protected Wetland, thereby excluding or limiting human activities in that wetland while Sec.36 provides for restrictions on the use of wetlands and requires a person to obtain written approval from the authority given in consultation with the lead agency.

It was observed that there were a number of activities unlicensed activities carried out on various wetlands and forests in form of cultivations, constructions and waste dumping as shown below.

S/No WETLANDS ILLEGAL ACTIVITIES 1 Angetta LFR Crop growing and rearing livestock. 2 Ayito LFR Crop growing and rearing livestock. 3 Acwao LFR Crop growing and rearing livestock.

The activities are degrading the environment.

The Accounting Officer explained that enforcement works are expensive and the sector responsible faces budget constraints to perform this function to the expected number of visits in a year of at least 12 visits as opposed to two or one visit the sector conducts but the sector shall continue to lobby more funds from the budget desk to adequately handle this challenge.

I advised the Accounting Officer to initiate measures to ensure that utilization of natural resources is in accordance with the law.

10.0 Shortage of medical equipment at the health facility Section 5.17.1 of the Health Sector Service standards & Service delivery standards 2016, requires that appropriate medical equipment is available for services delivery and level of care.

However, review of the inventory list and physical inspections of the equipment at Orum HCIV revealed variances between the available equipment and standard inventory list provided by Ministry of health standard equipment guidelines as shown in appendix IV.

Failure to have basic medical equipment could negative affect service delivery in terms of poor diagnosis of various diseases, increased cost of referrals and possible loss of lives. The Accounting Officer explained that it’s the mandate of NMS to procure and distribute adequate medicines and health supplies to public health facilities but is in contact with Ministry of Health.

I encouraged the Accounting Officer to continuously engage Ministry of Health so that funds can be secured for purchase of the required Medical Equipment.

11.0 Lack of Budget for the Physical Planning committee PART VII, Section 44 of the Physical Planning Act, 2010 provides that all activities of the physical planning committees shall be financed by the local government finances.

However, review of the budget and financial statements of the District revealed that there was no budget and therefore no expenditure on activities of the committee. Failure to fund activities of the Committees adversely affects their operations.

The Accounting Officer explained that the department budget is small but plans are underway to increase funding.

I advised the Accounting Officer to make adequate budget provisions to fund planned activities of the committee.

12.0 Revenue generated by committees Rule.7 of Statutory Instrument 281—1 of the Public Health (Building) Rules provides that every person who sends or delivers any plan, section, elevation or drawing to the local authority under rule 6(1) (b) of these Rules shall, at the time of the sending or delivery, pay to the local authority an inspection fee based upon the superficial area of every floor of the building which he or she proposes to erect at the appropriate rate for the class to which the building belongs.

However, it was observed that there was no revenue reported in the Financial Statements for the year. Besides, the absence of a budget provision humpers effective service delivery.

The Accounting Officer noted the issue and is committed to comply with the guidelines.

I advised the Accounting Officer to take appropriate action to facilitate the committee activities for revenue generation.

13.0 Lack of Safe Work Procedures for the road equipment Paragraph 2.2 (d) of the guidelines for care and management of road equipment states that the LGs shall be responsible for checking that Safe Work Procedures (SWP) are readily accessible for each item of plant and equipment.

Contrary to the guidelines, it was observed that there were no SWPs in place for all road equipment received as shown in appendix V.

This could be attributed to non-compliance with set guidelines. In absence of the required SWPs the equipment operators are left without proper guidance on how to handle and operate this equipment. It also makes the management and supervision of the machine operators difficult. The Accounting Officer noted the issue and is committed to comply with the guidelines.

I advised the Accounting Officer to task the responsible officers to have these SWPs readily available for all road equipment and should be easily accessible to all.

14.0 Procurement Compliance review by PPDA Part II Section 5 (1) of the PPDA regulation requires that In the exercise of its functions and powers under the Act PPDA to undertake compliance monitoring, build procurement and disposal capacity, undertake procurement audits, inspections and investigations of a procuring and disposing entity’s procurement and disposal functions

Accordingly, PPDA undertook procurement compliance review in Dokolo District and made observations outlined below;

No Finding Risk/Implication Recommendation 1. Procuring outside the plan: The Authority Procurements outside the The Head Procurement and found that three (3) procurements worth procurement plan may affect Disposal Unit should UGX 37,902,000 were procured outside the achievement of objectives of the aggregate all items in the approved procurement plan, contrary to budget through encroachment on annual procurement plan of Section 58(7) of the PPDA Act, 2003. resources that would have been the Entity and where available for already planned necessary the plan is updated activities and may also lead to in accordance with Section 31 domestic arrears. (f) of the PPDA Act 2003. 2. Irregularities in evaluation of bids: The Possible collusion and lack of  The Head Procurement Authority found irregularities in evaluation fairness and transparency in the and Disposal Unit should of bids in eleven (11) procurement evaluation of bids. always ensure that requirements worth UGX 452,685,032 Evaluation Committees contrary to Regulations 72 to 82 of the conduct detailed Local Governments (PPDA) Regulations, evaluation in accordance 2006. The Authority was not satisfied with with Regulations 72 to the evaluation processes as they were 82 of the Local unfair, led to wrong contract award Governments (PPDA) decisions, denied the Entity value for Regulations, 2006. money.  The Accounting Officer should ensure that key technical staffs involved in evaluation are trained.

3. Failure to obtain performance securities: This exposes the Entity to a risk of The Heads of User The Authority found that in seven (7) lack of recourse in the event the Departments should through procurements worth UGX 671,911,971, contractor fails to execute the their contract supervisors where the Special Conditions of the contract. where it is required obtain a Contract required that the providers furnish performance security before the Entity with a performance security of the contract becomes 5% of the contract price, there was no effective. evidence the required performance securities were submitted.

4. Inadequate contract management This casts doubt on whether the  Contract supervisors records: In the thirty (30) procurement Entity was supervising the projects should submit regular action files reviewed, the Authority noted effectively and efficiently. progress reports and that the contract supervisors did not prepare detailed contract progress reports during the course of management reports as implementation of projects but rather per their functions in

No Finding Risk/Implication Recommendation submitted a single half page contract accordance with management report with no detailed Regulations 119 (10) and information for each procurement for 46 (3) of the Local purposes of certification of payments which Governments (PPDA) casts doubt on the effectiveness of the Regulations, 2006. Entity in supervision of projects yet funds  The Accounting Officer for contract supervision were provided to should plan for training the contract supervisors. This contravenes of contract supervisors Regulations 119 (10) and 46 (3) of the on contract management Local Governments (PPDA) Regulations, procedures and 2006. preparation of reports to ensure that supplies, works and services are actually delivered in accordance with the technical specifications laid down in the contract.

John F.S. Muwanga AUDITOR GENERAL KAMPALA

17th December, 2018

Appendices

Appendix I: Compliance with Repayment Schedules

AMOUNT OUT NAME OF SUB AMOUNT 5% OF DUE AMOUNT STANDING GROUP COUNTY DISBURSED INTEREST INTEREST PAID AMOUNT INCLUSIVE

Oringolut youth Adwari 7,830,000 391,500 0 8,221,500 piggery group 8,221,500

Okwongo Central Youth Adwari 7,475,000 373,750 7,025,000 823,750 piggery group 7,848,750

Agali youth piggery Adwari 7,705,000 385,250 2,182,000 5,908,250 group 8,090,250

Anyomi youth Adwari 7,780,000 389,000 7,125,000 1,044,000 piggery project 8,169,000

Akailor youth Adwari 7,934,000 396,700 752,500 7,578,200 piggery grouo 8,330,700

Acaba youth piggery Okwang 8,419,000 420,950 1,370,000 7,469,950 group 8,839,950

Amele fish farming Okwang 12,489,500 624,475 2,180,000 10,933,975 group 13,113,975

Okurunyang youth Okwang 8,299,000 414,950 1,000,000 7,713,950 piggery group 8,713,950

Apii Oguru youth Okwang 7,845,000 392,250 1,461,000 6,776,250 Piggery group 8,237,250

Bar Oceco youth Okwang 8,179,000 408,950 2,240,000 6,347,950 piggery group 8,587,950

Bar Okango youth Ogor 5,269,000 263,450 2,483,000 3,049,450 Poultry group 5,532,450

Mak Tic youth Ogor 6,965,000 348,250 816,000 6,497,250 piggery group 7,313,250

Note en Kuc youth Ogor 6,820,000 341,000 0 7,161,000 Poultry group 7,161,000

Can onotowa Youth Ogor 6,965,000 348,250 3,725,000 3,588,250 Poultry group 7,313,250

Omede itic youth Ogor 6,910,000 345,500 390,000 6,865,500 piggery group 7,255,500

Aluga Bee keeping Olilm 5,405,000 270,250 124,000 5,551,250 youth group

5,675,250

Awido Aula youth Olilm 6,414,000 320,700 340,000 6,394,700 piggery project 6,734,700

Amara sidi beekeeping Olilm 4,843,000 242,150 50,000 5,035,150 youth group

5,085,150

Akodokodoi Olilm 6,544,000 327,200 3,000,800 3,870,400 6,871,200

Anaikopi Olilm 10,100,000 505,000 50,000 10,555,000 ICT group 10,605,000

Akokowoo youth Olilm 7,515,000 375,750 730,000 7,160,750 piggery project 7,890,750 Alemu Olilm 7,350,000 367,500 7,717,500 200,000 7,517,500

Abarler Youth Orum 7,350,000 367,500 0 7,717,500 Piggery Project 7,717,500

Tecwao Youth Orum 7,000,000 350,000 3,150,000 4,200,000 Poultry Project 7,350,000

Oryam Can Brick Laying Orum 4,142,000 207,100 4,190,000 159,100 Youth Group

4,349,100

Oran Metal Fabrication Orum 10,755,000 537,750 1,790,000 9,502,750 Youth Group

11,292,750

OBUMO YOUTH Orum 8,395,000 419,750 1,486,000 7,328,750 PIGGERY PROJECT

8,814,750

Bar Odugu aloo can women T/C 6,118,000 305,900 6,148,000 275,900 poultry group 6,423,900

Jiiny cwinyi youth T/C 6,650,000 332,500 725,000 6,257,500 piggery group 6,982,500

Maki komi fish farming T/C 8,869,000 443,450 0 9,312,450 group 9,312,450

Omuko Oget youth T/C 7,855,000 392,750 7,428,300 819,450 piggery group 8,247,750 TOTAL 232,189,500 11,609,475 243,798,975 62,161,600 181,637,375

Appendix II: Understaffing in Orum HCIV No. Job Title Approved Filled Vacant

1 SENIOR MEDICAL OFFICER 1 0 1

2 MEDICAL OFFICER 1 0 1

3 SENIOR MCO 0 0 0 4 SENIOR NURSING OFFICER 1 1 0

5 ANESTHETIC OFFICER 1 1 0

6 PUBLIC HEALTH NURSE 1 0 1

7 MEDICAL CLINICAL OFFICER 2 2 0

8 OPTHALMIC CLINICAL OFFICER 1 0 1

9 HEALTH INSPECTOR 2 1 0 10 DISPENSER 1 0 1

11 PUBLIC HEALTH DENTAL OFFICER 1 1 0

12 LABORATORY TECHNICIAN 1 1 0

13 ASSISTANT ENTOMOLOGICAL OFFICER (MEDICAL) 1 1 0

14 NURSING OFFICER NURSING 1 1 0

15 NURSING OFFICER MIDWIFERY 1 1 0 16 NURSING OFFICER PSYCHIATRY 1 1 0

17 ASSISTANT HEALTH EDUCATOR 1 0 1

18 ANESTHETIC ASSISTANT 1 0 1 19 THEATRE ASSISTANT 2 1 1

20 ENROLLED PSYCHIATRIC NURSE 1 1 0

21 ENROLLED NURSE 3 3 0

22 ENROLLED MIDWIFE 3 3 0

23 LABORATORY ASSISTANT 1 1 0

24 COLD CHAIN ASSISTANT 1 0 1 25 HEALTH ASSISTANT 1 1 0

26 HEALTH INFORMATION ASST. 1 1 0

27 ACCOUNTS ASSISTANT 1 1 0 28 OFFICE TYPIST 1 1 0

29 STORES ASST 1 1 0

30 NURSING ASSISTANT 5 3 2

31 DRIVER 1 1 0

32 ASKARI 3 2 1 33 PORTER 3 3 0

SUB-TOTAL 47 34 13

Appendix III: Forest reserves without land titles S/N Name of the Total Land Title Encroachm Activities in the Natural Resource Acreage status ent status gazetted areas 1 Angetta LFR Not known No Land Title Encroached Crop growing and rearing livestock. 2 Ayito LFR Not known No Land Title Encroached Crop growing and rearing livestock. 3 Acwao LFR Not known No Land Title Encroached Crop growing and rearing livestock.

Appendix IV: Shortage of Medical Equipment

Recommend NAME OF EQUIPMENT USE/PURPOSE AVAILABLE VARIANCE ed

Theatre

Oxygen cylinders (large 3 For administration of Oxygen size) 1 2 For operation and management Hernia sets 4 of Hernia 1 3 Used for dilatation and D&C sets 3 curettage 1 2 MVA 3 For manual volume aspiration 1 2

Ambu bag

Used to provide positive 1. Neonatal 2 pressure ventilation 2 0 Helps in clearing the babies Penguin sucker 2 airway 0 2 Used to deliver supplementary Nasal oxygen prongs 10 oxygen 0 10 Surgical incision into the Laparotomy set 2 abdomen for evacuation or preparation for surgery 1 1 Non-invasive method for Pulse oximeter 2 monitoring oxygen levels 0 2

Suction machine

Extraction of mucus and other 1. Manual 1 fluids 0 1 Boyle’s machine bp calf 5 For administering anaesthesia 1 4 Oxygen concentrator 10 For administering oxygen 1 9 Portable operating light 2 Provide light during operations 1 1 Blood pressure 2 Measuring pressure machines[bp] 1 1

Autoclave

Sterilising medical equipment to Steam steriliser 1 get rid of bacteria and other pathogens 1 0 A. OPHTHALMIC DEPARTMENT Used for examining the interior Slit lamp 1 of the eye 0 1 Used to determine the Tonometer 2 intraocular pressure 0 2 Majorly for the inspection of the Ophthalmoscope 2 retina 0 2 Used in reflection and refraction Refraction set 2 demonstrations 0 2 Loop (with lights and 3 Used in eye surgery 0 3

27 battery)

A. MATERNITY DEPARTMENT Delivery sets 5 For the delivery of new born 1 4 Blood pressure 5 Measuring blood pressure machines[bp] 1 4 Used in determining the blood Doppler (hand held) 1 flow 0 1 Fetoscopes 10 Allow access to the foetus 2 8 Used for aspiration or cleaning Penguine sucker 5 of mucus 2 3 Ambubag

Used to provide positive 1. Adult 2 pressure ventilation 1 1 Autoclave

2. Non electric 1 Used for sterilization 0 1 Vaccum extractor 1 Assisted delivery 1 0 Manual suction machine 1 For deep suctioning 1 0 Gas cylinder 3 Oxygen delivery 3 0 A. LABORATORY DEPARTMENT Electric centrifuges (bench Separation of fluids from 5 top) densities 0 5 Autoclave (in wash up) 1 For sterilization 0 0 Bunsen burner 1 For drying slides 1 0 Fridges 2 Storage of reagents and blood 1 1 For use when power supply is Solar backup 2 down 0 0 Colorimeter 1 Measuring the intensity of colour 0 1

Appendix V: Inadequate Protective Wear

Department Protective wear Comments Theatre Gloves Inadequate- 50% under supplied. Gowns/linen for staff and patients Adequate-Still in good condition. Disposable masks Inadequate- 90% under supplied. Supplies like detergents, antiseptics, iodine, and Inadequate- 90% under chloroxidine among others. supplied. Ophthalmic Respiratory musk Inadequate- 70% under supplied Clinical coat Not available Maternity Spectacles Not available Gumboots Inadequate- 70% under supplied. Gloves Inadequate- 50% under supplied Laboratory Gloves Inadequate- 50% under supplied Respirators(N-95) Inadequate- 20% under supplied Biosafety cabinet Not available

Appendix VI: Management of road Equipment Name/Type of Plant and Equipment Maintenance Safe Work Procedures Audit Road Equipment Register is in place and repair (SWP) are readily Remarks and the road history of the accessible for each equipment is plant and item of plant and registered equipment is equipment (Yes/No) therein(Yes/No) kept (Yes/No)

Motor Grader- No Yes No No Safe Work Komatsu Procedures for this.

Motor Grader- No Yes No No Safe Work Chiengling Procedures for this

Wheel loader- No Yes No No Safe Work Komatsu Procedures for this

Wheel roller-Sakai No Yes No No Safe Work Procedures for this

Water bowser- No Yes No No Safe Work Mitshubishi Procedures for this

Dump truck- No Yes No No Safe Work Mitshubishi Procedures for this

Dump truck-FAW No Yes No No Safe Work Procedures for this

Pick Up- JMC No No No No Safe Work Procedures for this