THE REPUBLIC OF UGANDA OFFICE OF THE AUDITOR GENERAL ANNUAL REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF STATUTORY AUTHORITIES AND STATE ENTERPRISES FOR THE YEAR ENDED 30TH JUNE 2009 VOLUME 4 STATUTORY CORPORATIONS 1 LIST OF ACRONYMS AND ABBREVIATIONS AHP Allied Health Professionals AHL Amber House Limited LI Live stock Industries AC Amnesty Commission BOU Bank of Uganda CCL Cable Corporation Limited CMA Capital Markets Authority CAA Civil Aviation Authority COCTU Coordinating Office for Control of Trypanosomiasis in Uganda CDO Cotton Development Organization HTTI Crested Crane Hotel & Tourism Training Institute CAA Civil Aviation Authority DDA Dairy Development Authority PU Privatization Unit EAC East African Community ERA Electricity Regulatory Authority UICT Institute of Communication & Information Technology KCCL Kasese Cobalt Company Limited KML Kilembe Mines Limited KSW Kinyara Sugar Works LVFO Lake Victoria Fisheries Organization LDC Law Development Centre MTAC Management Training and Advisory Centre MNS Mandela National Stadium MEMD Ministry of Energy and Mineral Development NAGRIC National Animal Genetic Resources Centre and Data Bank NWMS Nakivubo War Memorial Stadium NCC National Council for Children NCHE National Council for Higher Education NCS National Council of Sports NCDC National Curriculum Development Centre NDA National Drug Authority NEC National Enterprises Corporation & Subsidiaries NFA National Forestry Authority NHCCL National Housing & Construction Company Limited NMS National Medical Stores NPA National Planning Authority NWSC National Water & Sewerage Corporation NWC National Women‟s Council NYC National Youth Council NHI Nile Hotel International NSSF National Social Security Fund 2 PLB Public Libraries Board PPDA Public Procurement & Disposal of Public Assets Authority REA Rural Electrification Agency UACC Uganda Air Cargo Corporation UBC Uganda Broadcasting Corporation BC Broadcasting Council UBOS Uganda Bureau of Statistics UCDA Uganda Coffee Development Authority UCC Uganda Communications Commission UDB Uganda Development Bank UDC Uganda Development Corporation UEB Uganda Electricity Board UEDCL Uganda Electricity Distribution Company Limited UEGCL Uganda Electricity Generation Company Limited UEGCL-TA Uganda Electricity Transmission Corporation (Twinning Arrangement) UETCL Uganda Electricity Transmission Company Limited UEPB Uganda Export Promotion Board UIC Uganda Insurance Commission UIA Uganda Investment Authority UMDPC Uganda Medical and Dental Practitioners Council UNBS Uganda National Bureau of Standards UNCST Uganda National Council of Science & Technology UNCC Uganda National Cultural Centre UNEB Uganda National Examinations Board UNMC Uganda Nurses & Midwives Council CASSOA Civil Aviation Safety and Security Oversight Agency MERECP Mount Elgon Regional Ecosystem Conservation Programme KCCL Kasese Cobalt Company Limited PSA Production Sharing Agreement PPP Public Private Partnership SCOUL Sugar Corporation of Uganda Ltd. NIC National Insurance Corporation Ltd. UTL Uganda Telecom Ltd. QCIL Quality Chemical Industries Ltd. UGCEA Uganda Ginners and Cotton Exporters Association CSDP Cotton Subsector Development Credit NHL Nsimbe Holdings Ltd. MEL Mugoya Estates Ltd. JV Joint Venture MCELU Mugoya Construction and Engineering Limited Uganda. MIC Management Investment Committee VPDL Victoria Property Development Ltd. BOD Board of Directors 3 UPPC Uganda Printing & Publishing Corporation UPHL Uganda Property Holding Limited URC Uganda Railways Corporation USL Uganda Seeds Limited UTB Uganda Tourism Board UWA Uganda Wildlife Authority 4 TABLE OF CONTENTS CHAPTER ONE ................................................................................................................................................................ 9 1.1 Mandate and Legal framework ........................................................................................... 9 1.1.1 The Auditor General’s Responsibilities............................................................................... 9 1.1.2 Responsibilities of Public Organisations on the financial statements ........................... 10 1.1.3 Representations by management..................................................................................... 10 1.2 VISION ............................................................................................................................... 11 1. 3 STATUS OF ACCOUNTS AUDITED DURING THE YEAR ..................................................... 11 1.4 SUMMARY OF MAJOR AUDIT FINDINGS OF THE REPORT .............................................. 12 1.4.1 Unremitted statutory deductions ..................................................................................... 12 1.4.2 Corporate Governance ...................................................................................................... 13 1.4.3 Asset Management ............................................................................................................ 14 1.4.4 Performance Review of Public Organizations.................................................................. 15 1.5 REGIONAL AUDITS ............................................................................................................ 16 CHAPTER TWO ............................................................................................................................................................. 18 2.1 AUDIT OPINION (CERTIFICATION OF ACCOUNTS) ........................................................ 18 2.1.1 Unqualified Opinion ........................................................................................................... 19 2.1.2 Unqualified opinion with Emphasis of Matter (EOM) ...................................................... 20 2.1.3 Qualified Opinion ............................................................................................................... 20 2.1.4 Disclaimer of Opinion ........................................................................................................ 22 2.1.5 Adverse Opinion ................................................................................................................. 23 2.2 ACCOUNTS WHERE EXAMINATION OF BOOKS OF ACCOUNTS HAVE BEEN CONCLUDED BUT THE ACCOUNTS HAVE NOT BEEN CERTIFIED .......................................................... 23 2.2.1 COORDINATING OFFICE FOR THE CONTROL OF TRYPANOSOMIASIS IN ..................... 24 2.2.2 LAW DEVELOPMENT CENTRE: Year ended 30th June 2006 ............................................ 26 2.2.3 UGANDA NATIONAL CULTURE CENTRE: Years ended 30th June ................................... 26 2.2.4 UGANDA LIVESTOCK INDUSTRIES LTD ........................................................................... 27 2.2.5 NATIONAL COUNCIL FOR HIGHER EDUCATION .............................................................. 29 2.2.6 NATIONAL COUNCIL FOR HIGHER EDUCATION: ............................................................. 30 2.2.7 JOINT CLINICAL RESEARCH CENTRE: .............................................................................. 31 2.2.8 NAKIVUBO WAR MEMORIAL STADIUM (NWMS) ............................................................. 34 2.3 AUDITS IN PROGRESS ...................................................................................................... 36 CHAPTER THREE .......................................................................................................................................................... 37 3.1 UNQUALIFIED AUDIT OPINION WITH EMPHASIS OF MATTER PARAGRAPHS.............. 37 3.1.1 NILE HOTEL INTERNATIONAL LIMITED (31st DECEMBER 2008) ................................... 37 3.1.2 UGANDA COFFEE DEVELOPMENT AUTHORITY (30TH SEPTEMBER 2008) ...................... 37 3.1.3 NATIONAL DRUG AUTHORITY (30TH JUNE 2009) ............................................................ 38 3.1.4 CABLE CORPORATION LIMITED (31ST DECEMBER 2008) ............................................... 38 3.1.5 UGANDA NATIONAL COUNCIL OF SCIENCE AND TECHNOLOGY (30TH JUNE 2008) ...... 38 3.1.6 UGANDA NATIONAL COUNCIL OF SCIENCE AND TECHNOLOGY (30TH JUNE 2009) ...... 38 3.1.7 AMBER HOUSE LIMITED (31ST DECEMBER 2008) .......................................................... 39 3.1.8 UGANDA PRINTING AND PUBLISHING CORPORATION (30TH JUNE 2009) ................... 39 3.1.9 NATIONAL COUNCIL FOR CHILDREN (30TH JUNE 2007) ................................................ 40 3.2 QUALIFIED OPINIONS ...................................................................................................... 40 3.2.1 NATIONAL WATER AND SEWERAGE CORPORATION (30th JUNE 2009) ....................... 40 5 3.2.2 UGANDA AIR CARGO CORPORATION (30TH JUNE 2008) ................................................ 40 3.2.3 NATIONAL CURRICULUM DEVELOPMENT CENTRE (31ST DECEMBER 2004) ................. 41 3.2.4 NATIONAL CURRICULUM DEVELOPMENT CENTRE (31ST DECEMBER 2005) ................. 41 3.2.5 UGANDA DEVELOPMENT BANK (31ST DECEMBER 2008) ................................................. 41 3.2.17 UGANDA PROPERTY HOLDINGS LIMITED (30TH JUNE 2009) ...................................... 50 3.2.18 UGANDA SEEDS LTD (30TH JUNE 2007) ......................................................................... 50 3.2.24 NATIONAL COUNCIL FOR CHILDREN (30TH JUNE 2005) .............................................. 54 3.2.25 NATIONAL CURRICULUM DEVELOPMENT CENTRE ....................................................... 55 3.3 QUALIFIED OPINIONS