ANNUAL MONITORING AND EVALUATION REPORT FY 2018/19 Uganda Revenue Authority Research, Planning and Development Corporate Performance Reporting, Monitoring and Evaluation P.O. Box 7279 Kampala © Uganda Revenue Authority 2018 i Executive Summary Assessment of strategy execution is acknowledged as one of the most important aspect of achieving the Corporate Plan objectives. It highlights areas of improvement, leading to corrective action. In that fold, the Financial Year 2018/19 Corporate Monitoring and Evaluation report, provides an objective assessment of progress made, at different levels of the Corporate Plan. The assessment focused on the corporate measures, key departmental results, budget efficiency, and project implementation. 15 measures were analyzed out of the 17 that indicate progress towards the 6 strategic objectives. The 2018/19 targets of six objective measures were met. These were proportion of revenue collected, tax administration costs as a percentage of revenue, average turnaround time (for services whose time exceeds 7 days), Proportion of the risk based compliance programmes implemented, system mean time to recover and proportion of stakeholders involved in URA interventions. There was an average achievement (performance between 75% & 99%) for 8 objective measures including compliance level, business process maturity level, client satisfaction level, proportion of agreed partnership expectation implemented, staff productivity levels, staff motivation, staff integrity level and employee stability. Two of the objective measures were not achieved (average turnaround time (average turnaround time for services whose time does not exceeds 7 days and number of unplanned system downtimes) as expounded in the details in the report. In terms of departmental performance, IAC, TID and LSBA achieved 100% of their 2018/19 targets. They fully executed 100% of their activities within the period. The other departments didn’t fully achieve the output targets within the period however there was a significant improvement among all departments in comparison with the previous years. There is need to continuously monitor and review work plan execution at different levels for better performance. Various recommendations have also been provided in the report, focusing on each department and result area. ii URA Performance at a glance Annual performance of the URA corporate scorecard FY 2018/19 Total number of measures assessed % Not % Achieved % Average Achieved 16 37.5% 50.0% 12.5% Total Annual departmental scorecards performance FY 2018/19 Total number of Outputs % Achieved % Average % Not achieved % No data measures CGO 62.50% 37.50% 0% 0% 8 CSD 33.33% 66.67% 0% 0% 6 TID 100% 0% 0% 0% 6 LS&BA 100% 0% 0% 0% 11 IAC 100% 0% 0% 0% 10 DT 13.33% 60.00% 26.00% 0% 17 65.22% 17.39% 17.39% 0% 22 CD Annual Budget performance FY 2018/19 Budget Target (Bn UGX) Spent % Budget spent (Bn UGX) URA overall 350.22 350.22 100 CGO 13.29 13.29 100 DT 99.57 9.57 100 TID 6.71 6.71 100 LS&BA 6.57 6.57 100 IAC 5.69 5.69 100 CSD 108.79 108.79 100 CD 74.02 74.02 100 Capital purchases 35.57 35.57 100 Source: Activity Based Budget, Finance Division Source: Activity Based Budgeting Report Finance Division iii Table of Contents Executive Summary .................................................................................................................... ii URA Performance at a glance ................................................................................................... iii Table of Contents ...................................................................................................................... iv List of Tables ............................................................................................................................. v Acronyms ................................................................................................................................... vi 1.0 Introduction ................................................................................................................... 1 1.1. Objectives and focus of the Annual M&E report FY 2018/19 ....................................... 1 1.2. Scope ............................................................................................................................ 1 1.3 Methodology ................................................................................................................. 2 2.0 Corporate Performance Outlook/ Strategic Results FY 2018/19 ........................................ 4 2.1 Assessment of the Financial Perspective ......................................................................... 4 2.1.1 Revenue Collection to target ........................................................................................ 4 2.1.2 Revenue performance trend: ................................................................................... 6 2.2 Tax administration costs as percentage of revenue ..................................................... 6 2.3 Improve Compliance ..................................................................................................... 9 2.3.1 Position of national importance .................................................................................... 9 2.3.2 Compliance level .......................................................................................................... 9 2.3.3 Other key aspects of compliance ............................................................................... 10 2.3.4 Proportion of the risk based compliance programme implemented ........................... 13 2.4 Assessment of the Client Perspective ........................................................................ 14 2.4.1 Improve quality of service .......................................................................................... 14 2.4.2 Client Satisfaction ...................................................................................................... 14 2.4.3 Average turnaround time ............................................................................................ 14 2.5 Optimize Stakeholder relations................................................................................... 16 2.5.1 Stakeholders involved in URA interventions .............................................................. 16 2.5.2 Stakeholder relations at station level ......................................................................... 17 2.6 Assessment of Business Process Perspective .......................................................... 19 2.6.1 Transform processes ................................................................................................. 19 2.6.2 Business Process Maturity Level: .............................................................................. 19 2.6.3 Number of unplanned system downtimes .................................................................. 20 2.6.4 System meantime to recover ................................................................................ 20 2.7 Assessment of Learning and Innovation ................................................................... 21 2.7.1 Improve our people .................................................................................................. 21 2.7.2 Staff productivity level ........................................................................................... 21 2.7.3 Employee stability level ......................................................................................... 21 3.0 Progress of the Projects ............................................................................................. 23 4.0 Progress on the implementation of Tax administrative Measures for 2018/19 ................. 25 5.0 DEPARTMENTAL PERFORMANCE FY 2018/2019......................................................... 27 5.1 Legal Services and Board Affairs departmental performance assessment ...................... 27 5.2 Office of the Commissioner General’s performance assessment ..................................... 29 5.3 Tax Investigations performance assessment .................................................................... 32 5.4 Customs Department performance assessment ............................................................... 34 5.5 Internal Audit and compliance department performance assessment .............................. 36 5.6 Corporate Services department performance assessment ............................................... 37 5.7 Domestic Tax department performance assessment ........................................................ 40 Annexes ................................................................................................................................... 44 iv List of Figures Figure 1: Comparison of Net Revenue Collections for FY 2014/15 to 2018/19 ........................ 6 List of Tables Table 1: URA performance Rating System ............................................................................... 2 Table 2: Performance of corporate objectives FY 2018/19 ...................................................... 3 Table 3: Revenue performance by tax category in FY 2018/19 (UGX Bn/%) .......................... 4 Table 4: Cost of tax administration in the FY 2018/19 ............................................................. 7 Table 5: Compliance level in FY 2018/19 ................................................................................ 10 Table 6: Tax payer register for the period FY 2016/17 – FY 2018/19 ....................................