THE REPUBLIC OF UGANDA REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF JUSTICE, LAW AND ORDER SECTOR (JLOS) SWAP DEVELOPMENT FUND FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2015 OFFICE OF THE AUDITOR GENERAL UGANDA TABLE OF CONTENTS LIST OF ACRONYMS ...................................................................................................... 2 REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OFJUSTICE LAW AND ORDER SECTOR (JLOS) SWAP DEVELOPMENT FUND FOR THE YEAR ENDED 30TH JUNE, 2015 ............................................................................................................................ 3 1.0 INTRODUCTION .................................................................................................. 6 2.0 BACKGROUND INFORMATION .............................................................................. 6 3.0 MANDATE AND OBJECTIVES OF JLOS- SWAP DEVELOPMENT FUND ........................ 6 4.0 AUDIT OBJECTIVES ............................................................................................. 7 5.0 AUDIT SCOPE ..................................................................................................... 8 6.0 PROCEDURES PERFORMED .................................................................................. 9 7.0 CATEGORIZATION AND SUMMARY OF FINDINGS .................................................. 9 7.1 Categorization of findings .................................................................................... 9 7.2 Summary of findings .......................................................................................... 10 8.0 DETAILED FINDINGS .......................................................................................... 11 8.1 JLOS Secretariat and General Observations .......................................................... 11 8.2 Uganda Law Society (ULS) .................................................................................. 16 8.3 Uganda Police Force (UPF) .................................................................................. 16 8.4 Judiciary ............................................................................................................ 21 8.5 Uganda Prisons Service (UPS) ............................................................................. 24 8.6 Directorate of Citizenship and Immigration Control (DCIC) ..................................... 28 8.7 Ministry of Internal Affairs ................................................................................... 33 8.8 Law Development Centre (LDC) ........................................................................... 36 8.9 Directorate of Public Prosecutions (DPP) .............................................................. 38 8.10 Uganda Human Rights Commission (UHRC) ...................................................... 39 8.11 Amnesty Commission (AC) ............................................................................... 41 8.12 Ministry of Labor, Gender and Social Development (MoGLSD) ............................. 42 1 LIST OF ACRONYMS Acronym Meaning BOQ Bills of Quantities DLG District Local Government DPC District Police Commander FY Financial Year GOU Government of Uganda JLOS Justice, Law and Order Sector LDC Law Development Centre LGPS Local Government Prisons Services PDE Procuring and Disposing Entity PMIS Project Management Information System SWAP Sector Wide Approach UGX Uganda Shillings ULS Uganda Law Society UPF Uganda Police Force UPS Uganda Prisons Service PFMA Public Finance Management Act, 2015 MoFPED Ministry of Finance, Planning and Economic Development 2 REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE JUSTICE LAW AND ORDER SECTOR (JLOS) SWAP DEVELOPMENT FUND FOR THE YEAR ENDED 30TH JUNE, 2015 THE RT. HON. SPEAKER OF PARLIAMENT I have audited the accompanying financial statements of the Justice Law and Order Sector (JLOS) SWAP Development Fund for the year ended 30th June 2015. These financial statements comprise of the statement of financial position, the statement of financial performance and notes to the financial statements including a summary of significant accounting policies adopted. Management Responsibility 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 the JLOS SWAP Development Fund. The Accounting Officer is also responsible for the preparation and fair presentation of these financial statements in accordance with the requirements of the of the Public Finance Management Act 2015, and the cash receipts and payments basis of accounting, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. Auditor’s Responsibility My responsibility as required by Article 163 of the Constitution of the Republic of Uganda, 1995 (as amended) and Sections 13 and 19 of the National Audit Act, 2008 is to audit and express an opinion on these statements based on my audit. I conducted the audit in accordance with International Standards on Auditing. Those standards require that I comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing audit procedures to obtain evidence about the amounts and disclosures in the financial statements as well as evidence supporting compliance with relevant laws and regulations. The procedures selected depend on the Auditor’s judgment including the assessment of risks of material misstatement of financial statements whether due to fraud or error. In making those risk assessments, the Auditor considers internal control relevant to the entity’s preparation and fair presentation of financial statements in 3 order to design audit procedures that are appropriate in the circumstances but not for purposes of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Part “A” of this report sets out my opinion on the financial statements. Part “B” which forms an integral part of this report presents in detail all the significant audit findings made during the audit which have been brought to the attention of management and will form part of my Annual Report to Parliament. PART “A” Opinion In my opinion, the financial statements present fairly, in all material respects, the financial position of the Justice Law and Order Sector (JLOS) SWAP Development Fund as at 30th June, 2015 and its financial performance for the year then ended in accordance with the requirements of the Public Finance Management Act, 2015 and the accounting policies stated under note 1(a) to the financial statements and the Funding Agreement. John F.S. Muwanga AUDITOR GENERAL KAMPALA 7th December, 2015 4 REPORT OF THE AUDITOR GENERAL AND SUPPLEMENTARY INFORMATION 5 PART “B” JUSTICE LAW AND ORDER SECTOR (JLOS) SWAP DEVELOPMENT FUND DETAILED REPORT OF THE AUDITOR GENERAL FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2015 This Section outlines the detailed audit findings, management responses, and my recommendations in respect thereof. 1.0 INTRODUCTION In accordance with Article 163(3), of the Constitution of the Republic of Uganda, 1995 (as amended), I am required to audit and report on the public accounts of Uganda that is to say, all public offices including the courts, the central and the local government administrations, universities and public institutions of the like nature and any public corporation or other bodies or organizations established by an Act of Parliament. Accordingly, I carried out the audit of Justice Law and Order Sector (JLOS) SWAP Development Fund to enable me report to Parliament. 2.0 BACKGROUND INFORMATION The Justice Law and Order Sector (JLOS) SWAP Development Fund is a significant innovation for the administration of Justice in Uganda, bringing together all institutions involved in the administration of Justice through a holistic and sector wide approach to planning, prioritization and budgeting. The programme receives support from various development partners in form of budget support to the Government of Uganda to implement a sector wide strategic plan for reform. Justice Law and Order Sector (JLOS) SWAP Development Fund Secretariat is based at Ministry of Justice and Constitutional Affairs Head Quarters located on Parliamentary Avenue. 3.0 MANDATE AND OBJECTIVES OF JLOS- SWAP DEVELOPMENT FUND The mandate of Justice Law and Order Sector (JLOS) SWAP Development Fund is to coordinate the implementation of the sector reform program. Funding of the sector reforms is through the JLOS-SWAP Development Fund. The objectives of the JLOS SWAP Development Fund are to improve the effectiveness and efficiency of the administration of justice and the maintenance of law and order. The SWAP 6 development process comprises of activities which contribute to the following results:- a. Ownership by institutions in the Sector of a Sector-wide approach to reform and consolidate financing; b.