office of the auditor general · office of the auditor general annual report of the auditor general...

OFFICE OF THE AUDITOR GENERAL

ANNUAL REPORT OF THE AUDITOR GENERALFOR THE YEAR ENDED 30TH JUNE 2009

VOLUME 1PERFORMANCE REPORT

THE REPUBLIC OF UGANDA

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• Acroynms 3 • Vision,MissionandCoreValues 4

• CurrentStatusandRecentDevelopment 5

• CurrentMacroStructureoftheOffice 6

• Foreword 7

1. Introduction 9

2. ImplementationoftheCorporatePlan 10

3. ImplementationoftheNationalAuditAct(NAA) 14

4. PerformanceofAuditActivities 15

5. HumanResourceManagementandDevelopment ��

6. OfficeAssetsandLogistics �6

7. ICTandAuditDevelopment �7

8. FinancialManagementandBudgetPerformance �8

9. RelationshipwithOversightCommitteesofParliament 31

10. InternationalRelations 3�

11. CorporateSocialResponsibility 35

12. RegistrationofAccountants 35

13. AppendixI 36

• ListofOAGoffices

14. AppendixII 37

• UnauditedOAGAccounts

TABLE OF CONTENTS

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ACRONYMSACCA AssociationofCharteredCertifiedAccountantsADB AfricanDevelopmentBankAFROSAI AfricanOrganizationofSupremeAuditInstitutionAFROSAI-E ASub-RegionalOrganizationofEnglishSpeakingAFROSAIAG AuditorGeneralBFP BudgetFrameworkPaperBns BillionsCAATS ComputerAssistedAuditTechniquesCHOGM CommonWealthHeadsofGovernmentMeetingCISA CertifiedInformationSystemsAuditorCOSASE CommitteeonStateEnterprises,CommissionsandStatutoryCorporationsCPA CertifiedPublicAccountantDFID DepartmentforInternationalDevelopmentDPAC DistrictPublicAccountsCommitteeFINMAP FinancialManagementandAccountabilityProgrammeGAO GeneralAccountingOfficeGoU GovernmentofUgandaHLGs HigherLocalGovernmentsICGFM InternationalConsortiumonGovernmentFinancialManagementICT InformationCommunicationsTechnologyIDI InternationalDevelopmentInitiativeIFMS IntegratedFinancialManagementSystemINTOSAI InternationalOrganizationalofSupremeAuditInstitutionsIT InformationTechnologyJICA JapaneseInternationalCooperationAgenciesKCC KampalaCityCouncilLGDP LocalGovernmentDevelopmentProgrammeLLGs LowerLocalGovernmentsLPAC LocalGovernmentPublicAccountsCommitteeMAAG MultilateralAuditAdvisoryGroupMCC MillenniumCollegeCooperationMTEF MediumTermExpenditureFrameworkNAA NationalAuditActNAADS NationalAdvisoryAgriculturalServicesNDA NationalMedicalStoresNMS NationalMedicalStoresNSADP NorthWestSmallholder’sAgriculturalDevelopmentProjectNSSF NationalSocialSecurityFundNUSAF NorthernUgandaSocialActionFundOAG OfficeoftheAuditorGeneralPAC PublicAccountsCommitteePFAA PublicFinanceandAccountabilityActPPDA PublicProcurementandDisposalActRHs ReferralHospitalsROM ResultOrientedManagementSAI SupremeAuditInstitutionUNBS UgandaNationalBureauofStandardsUNRA UgandaNationalRoadsAuthorityUSAID UnitedStatesAgencyforInternationalDevelopmentVFM ValueforMoney

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VISION:

TobeaneffectiveandefficientSupremeAuditInstitution(SAI)inpromotingeffectivePublicAccountability.

MISSION:

ToauditandreporttoParliamentandtherebymakeaneffectivecontributiontoimprovingPublicAccountabilityandValueforMoneyspent.

CORE VALUES:

Inexecutingitsresponsibilities,theOfficeoftheAuditorGeneral(OAG)anditsstaffarecommittedtolivebytheoffice’scorevaluesof:-

• Integrity: Beinguprightandhonest

• Objectivity: Displayimpartialityandprofessionaljudgement.

• Professional Competence: Toactwithdiligence,proficiencyandteamspirit.

OFFICE OF THE AUDITOR GENERALVISION, MISSION AND CORE VALUES

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Brief History

TheOfficeoftheAuditorGeneral(OAG)beganasanofficeestablishedatEntebbeheadedbyanAuditorin19�9.In195�theofficewastrans-ferredtoKampalaattheTreasuryBuildinghead-edbyanAuditorGeneral.In196�itbecametheSupremeAuditInstitution(SAI)ofUgandabeingheaded by a Comptroller and Auditor General.Since its inception and establishment to-date,theOfficehasbeenheadedbyanAuditorandsix(6)AuditorsGeneral–thecurrentonebeingMr.JohnF.S.Muwanga.

Current Status

The office presently has its Headquarters inKampalaattheTreasuryBuildingswithitsthree(3)technicalauditDirectoratesofLocalGovern-ment, Central Government, State CorporationsandValueforMoney;andthefourthDirectorateofFinanceandAdministration.

In addition, the Office (OAG) has ten (10)Regional Audit Branch offices located in theMunicipalities of Arua, Fort Portal, Gulu, Jinja,Kampala City Council (KCC), Mbale, Mbarara,MasakaandSoroti.

TheNationalAuditAct(NAA)wasenactedandoperationalized in �008. Besides providing forthefinancialandhumanresourcesautonomyoftheOAG,itamplifiesthefunctionsoftheofficesas:-

i) to audit and report on the Public AccountsofUgandaandofallPublic Offices.ii) toconductfinancial,ValueforMoney andotheraudits.iii) toauditclassifiedexpendituresiv) toauditallGovernmentinvestmentsv) tocarryoutprocurementauditsandvi) toauditTreasuryMemoranda.

IntheFinancialYear�008/�009thesefunctionswere executed by 348 members of staff; com-prisedof�35auditstaff,46administrativestaff;44supportstaffand�3temporaryworkers.

Recent Developments

TheNationalAuditAct (NAA)enacted in �008enhanced the operational and professionalindependenceoftheOffice.Asaresult,arealisticoperational budget for the office was obtainedcoupled with greater autonomy to recruit staffaccordingtotheneedsoftheOffice.Thismadeitpossiblefortheofficetoundertakeanumberofdevelopments.

TheAct increasedthescopeofauditcoveragebypermittingtheAuditorGeneraltoinquireintoand examine the expenditure of public moniesdisbursedtoprivateorganisations.

Additionally,theActalsomadeitarequirementtoundertakegenderandenvironmentalaudits.TheTreasuryMemorandawasalsorequiredtobeaudited.

The process to draft Regulations to operation-alize the NAA was commenced together withtheprocesstode-linkstaffoftheOAGfromtheMinistryofPublicService.

AnewDirectorateofFinanceandAdministrationwascreatedandaviableDepartmentofValueforMoney(VFM)auditwasalsoestablished.

TheconstructionofanewAuditbuildingtohousetheHeadquartersinKampala,andBranchofficeconstructionsinMbale,JinjaandMbararawereplanned.

The process of restructuring the OAG to havean appropriate structure for the increasedauditfunctionswasalsocommenced.

TheprocesstoprocureaMedical/HealthInsur-ance Scheme to enable all staff of the officeaccess health care services is being designedandisinit’sfinalstagesbeforebeingtendered.

CURRENT STATUS AND RECENT DEVELOPMENTS

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The Office of the Auditor General (OAG) is headed by the Auditor General (AG) who is theChiefExecutiveof theOffice.TheAG isdeputizedby theAssistantAuditorGeneral (AAG)whoisassistedinturnbytheDirectorsofAudit(DAs)whoheadtheDirectorates.TheDirectorsareassistedbyAssistantDirectorsofAudit.

Thecurrentmacro-structureoftheOfficeisasdepictedbelow:-

Under the current structure, there are four (4) Directorates namely: Directorate of CentralGovernment Audit, Local Government Audit, Statutory Corporations and Value for Money AuditandtheDirectorateofFinanceandAdministration.

Consultants from the United Kingdom, National Audit Office have been engaged in an Officere-organisationalandstructuringexerciseandthusthepresentstructureisunderconsideration.

CURRENT MACRO STRUCTURE OF THE OFFICE OF THE AUDITOR GENERAL

Auditor General

Assistant Auditor General

Director of Audit Central

Government

Director of Audit Local

Government

Director of Audit Statutory

Corporations/ VFM

Director of Audit Finance &

Administration

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IampleasedandhonouredtosubmittoParlia-mentmyannualreportandopiniononthepublicaccountsofUgandafortheyearended30June�009.

Ithasalsobeenagreatprivilegetofulfilmypartand roleasmandatedunderArticle163of theConstitutionofUgandabyprovidingParliamentthe requisite attestations on government’shandlingofpublicresourcesentrustedto them,and elaborating upon the stewardship functionundertaken by the Executive in managing thepublic funds with due regard to regularity andpropriety.

The report is also a celebration of our continued success in a year which marks the first fullannualaudittobeconductedunderthelegalframeworkoftheNationalAuditActwhichcameintoforceinOctober�008.TheNationalAuditActoperationalisedthe“auditindependence”provisionsthatwerecharacterizedintheConstitutionandpavedthewayfortheOfficeoftheAuditorGeneralastheSupremeAuditInstitutioninUgandatoembarkonanewandheightenedlevelofoperation.

AsParliament’sExternalAuditorandsupportedbyastaffcomplimentof350people,theOfficeoftheAuditorGeneralcontinuedtoexecuteitsmissiontoauditandreporttoParliamentandtherebymakeaneffectivecontributiontoimprovingpublicaccountabilityandvalueformoneyspent.

Asrequiredundersection19oftheNationalAuditAct,theOfficeundertookfinancialandregular-ityauditsandissuedopinionsonthefinancialstatements.TheOfficealsoundertookperformanceauditsofgovernmentprogramstoestablishtheeffectivenessandefficiencytowhichpublicfundshadbeenappliedinservicedelivery.

I also undertook special assignments which included forensic investigations and special auditswhichweregiventoParliamentthroughouttheyear.TheabilityforParliamenttocontinueexercis-ingcontroloverthepublicpurseismanifestedinitsabilitytoholdgovernmenttoaccount.Thistaskwasablyundertakenbytheparliamentaryoversightcommitteesandissueswhicharosefromourauditreportsweredebated.

Mycurrentauditfortheyearended30June�009hasraisedmanyissueswhichIamhopefulparlia-mentshalldebateanddeliberateupon.However,twoareasofconcernare;

(i) increasing government expenditures which exceed appropriated funds and often lacking appropriateaccountabilitycanbeviewedaslimitingparliament’sabilitytocontrolthepublic purseand

(ii) thoseexpendituresundertakenwithdisregardtothelawsofUgandanotablywithregardto abuseof theprocurement laws.Article164of theConstitution isexpliciton the issuesof accountability.

FOREWORD BY THE AUDITOR GENERAL

The Auditor General Mr. John F. S. Muwanga

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The Office audited and reported on �,051 MDAs, Local Governments, State Corporations andgovernmententities.Another�,�09auditsareinprocessofbeingcompleted.

TheDirectorateofAudit (CentralGovernment)completedandreportedon�19auditsconsistingofMinistries,DepartmentsandAgencies (MDAs) (83),Projects (131)andspecialaudits (5).Sixspecialauditsarecurrentlyworkinprogress.Ofinteresttonote,isthesignificanteffortundertakeninthecomprehensivecountrywidespecialengineeringauditoftheRoadsSector,whichhasbeenreportedundertheUgandaNationalRoadsAuthority(UNRA).

Inaddition,theDirectorateissued71auditwarrantsforrecurrent,developmentandstatutorywith-drawalsoffundsfromtheconsolidatedfundaccountamountingtoShs.5,638,47�,056,063;and,inspected70TertiaryInstitutionsundertheMinistryofEducationandSports.

TheDirectorateofAudit(LocalGovernments)completedandreportedon1,66�accountscompris-ingofHigherLocalGovernments(195),RegionalReferralHospitals(11),specialaudits(15)andLowerLocalGovernments(1,441).

TheDirectorateofAudit(StatutoryCorporations/VFM)completedandreportedon155accounts.Afurtherauditof(43)accountsarework-inprogress. Inaddition, theDirectoratealsoundertookfive(5)specialauditsthatwererequestedforintheperiod.ThenewlyestablishedValueforMoney(VFM)AuditDepartmentwithonly17staffmanagedtocompleteandreportonten(10)VFMauditswithten(10)otherstudiesasworkinprogress.

The Directorate of Finance and Administration that supports and facilitates the performance oftheauditfunctionmanagedandimplementedthechangeprocesses.Itsuccessfullymanagedtheapproved�008/�009budgetandsubmitted forapproval toParliamenta realisticbudgetofShs.�7billionforthefinancialyear�009/�010,andpreparedthefinancialstatementsoftheofficeforthefinancialyear�008/�009.

AspartofthechangemanagementprocesswithintheframeworkoftheCorporatePlan,theDirec-toratealsosuccessfullyimplementedtheTrainingplan,PerformanceAppraisalPlan,ProcurementPlan,aswellasmanagedtheassetsandotherlogisticsoftheofficeduringtheyear.

Inconclusion, ithasbeenaneventfulyearwhich isstillexperiencing theeffectsof theNationalAuditActand thechanges thatmustbebroughtabout.Ournewstaff rulesand regulationsareunderconsiderationbyourParliamentaryoversightcommitteeandtheorganizationalrestructuringofourOffice(whichisbeingundertakenbytheUKNationalAuditOffice)iswelladvanced.

Staff have been tremendously supportive, patient and resilient in facing these changes and Iam very grateful for their steadfastness and loyalty. To Parliament and the three parliamentaryOversight Committees, Development Partners, and the Government headed by His Excellencythe President, we thank you for the unwavering support, interest and confidence placed in uswhichhasenabledusmakeitasuccessfulyear.

Ithankthee.

John F. S. MuwangaAUDITOR GENERAL

FOREWORD BY THE AUDITOR GENERAL...contd

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1.1 Mandate of the Auditor General

TheOfficeoftheAuditorGeneralistheSupremeAuditInstitution(SAI)providedforintheConstitu-tionoftheRepublicofUganda.

UnderArticle163(3)of theConstitution, theOffice is required toauditandreporton thePublicAccountsofUgandaandonallPublicoffices,includingtheCourts,theCentralandLocalGovern-mentAdministrations,UniversitiesandPublic Institutionsof likenature; anypublicCorporationsorotherbodiesestablishedbyanActofParliament;andreporttoParliament.

1.2 Functions of the Auditor General

Section 13(1), 8(�) of the National Audit Act (NAA) amplifies the mandate and functions of theAuditorGeneralanddetailsthesefunctionstoincludetheauditofclassifiedexpenditure,Govern-mentinvestments,TreasuryMemoranda,ProcurementauditsaswellasconductSpecialAudits.

Under Article 163(4) of the Constitution (1995) as amended, the Auditor General is required tosubmit to Parliament annually by 31st March a report of the accounts audited for the financialyearimmediatelypreceding.Thisreportisherewithprovidedunderfive(5)volumes:-

Volume 1 -AnnualPerformanceReportoftheOfficeoftheAuditorGeneral

Volume 2-AuditReportofCentralGovernmentMinistries,DepartmentsandAgencies

Volume 3-AuditReportofLocalGovernmentsandReferralHospitalsReportoftheAuditor General

Volume 4-AuditReportofStateEnterprises,CommissionsandStatutoryCorporations

Volume 5-ValueformoneyAuditReports

Inthisreportofvolume1,theOfficeoftheAuditorGeneralpresentstheannualperformancereportwhichincludesthemandateoftheAuditorGeneral,thestatusofCorporatePlanimplementation,thestatusofNationalAuditActimplementation,futureplansandbudgetperformanceoftheyear;thesessionswith theoversightcommitteesofParliament;Relationswith InternationalOrganiza-tions;AuditorGeneral’s roleas the registrarofAccountants;andasummaryof themajorcrosscuttingissuesacrossGovernment.

1.0 INTRODUCTION

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2.0 IMPLEMENTATION OF THE CORPORATE PLAN

2.1 The Corporate Plan of the Office of the Auditor General

TheCorporatePlanoftheOfficeoftheAuditorGeneral covers a five (5) year period from 1stJuly,�006to30thJune,�011.

The six (6) main strategic objectives of theCorporatePlantobeachievedby�011andtheachievementsrealized in�008/�009areasfol-lows:-

2.2 Achieve Financial and Operational Independence of the Auditor General

TheimplementationoftheActbytheOAGcom-menced in theFinancialYear�008/�009.Mostofthiscorporateobjectivewasachieved.

TheStaffRegulationsaspartoftheRegulationstooperationalizetheAct,wasdrafted.Itisawait-ingtheapprovalofParliament.

Plans were made to produce the HumanResourcesmanual, theRegulations for theActandtheFinancialRegulationsfortheOAG.

2.3 Improve the Budgeting, Financial Management and Moni-toring Systems for the OAG

A new Accounting Officer for the Office of theAuditor General, was appointed in November�008tomanagethefinancialandotherresourc-esoftheOffice.

In the Financial Year �008/�009 a budgetwas prepared for the following Financial Year�009/�010ofShs.�7.043andapprovedbyPar-liament.

The Senior Internal Auditor deployed at theOfficeoftheAuditorGeneralconductedseveralinternal audits and reportedon them toadvise

theAccountingOfficerandassisthiminmanag-ingtherisksinvolvedintheuseoftheresourcesoftheOffice.

The External audit of the Office is carried outby an audit firm appointed by Parliament. TheprocesstogetanauditfirmtoaudittheOffice’saccounts for the financial years �005/�006,�006/�007,�007/�008wascompleted.

However,theappointmentoftheauditfirmisstillawaited. The process to engage an audit firmto audit OAG accounts for the Financial Year�008/�009 has not commenced, and is alsoawaited.

TheAccountabilitySectorWorkingGroupalsoestablishedanauditCommitteetofollowupontheauditissuesraisedbytheInternalandExternalAuditorstotheOAG.

2.4 Create an Environment that enables the Office of the Audi-tor General to operate efficiently and Recruit, Retain, and Moti-vate suitable staff

UnderthisobjectivethefollowinginitiativeswereundertakenintheFinancialYear�008/�009:-

• Theprocessforreviewingthe organizationstructureoftheOfficewas commenced(Consultantisnow reviewingthestructure).

• TheOAGstaffRulesandRegulations weredrafted(finalcopyiswith Parliamentforapproval).

• Anumberofchangemanagement activitieswereplannedandexecuted.

• Thearrangementsfordevelopinga HumanResourcesManualwere discussedandagreedon.

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• Adequatefundsfortheimplementationofthereformsweresecuredinthe�008/�009 budget.

• Theofficeacquiredsix(6)newvehiclesduringtheyearforitsoperationsattheUganda RevenueAuthority(�),ValueforMoneyaudits(1),andtheHeadquarters(3).

• Anumberofstaffwhoobtainedhigherqualificationswerepromoted,two(�)staffwere receivedonsecondmentandthirty(30)supportstaffwereemployedontemporaryterms.

2.5 Improve Internal and External Communications to raise the Profile of the Office of the Auditor General with Staff and other Stakeholders

IntheyeartheCommunicationsCommitteeoftheOfficecontinuedtoimprovetheinternalcommu-nicationsoftheOfficethroughtheIntranet,flyersandthequarterlybulletin.

ThecommitteealsostrengthenedtheOffice’srelationshipwiththecommitteesofParliamentandotherstakeholders.

2.6 Improve the Quality of Audit work by Developing and Implementing Value for Money Audit Strategy and Setting up Effective Assurance Arrangements

In the Financial Year �008/�009, several activities were planned and executed to achieve thiscorporateobjectivewiththefollowingachievements:-

a) Professional Development and Capacity Building of the staff

TheOfficesponsoreditsstafftopursueprofessionalaccountingqualifications.Atotalof6officersqualifiedasprofessionalaccountantsand80arestillundertrainingtoqualifyasqualifiedaccount-ants.ThenumberofprofessionallyqualifiedstaffintheOAGhasbeenincreasingovertheyearsasindicatedbelow:-

Year Number at the begin-ning of the year

Increment* (Net Adjustment)

Number at end of year

�004/�005 48 4 5��005/�006 5� 6 58�006/�007 58 5 63�007/�008 63 7 70�008/�009 70 6 76

Theincrement(Netadjustment)figurecatersforstaffwhohaveleftorjoinedOAGwithfullprofes-sionalqualifications.

2.0 IMPLEMENTATION OF THE CORPORATE PLAN...contd

1�


A totalof�15OAGstaffundertookvarious trainings tobuild theircapacity inperformanceskillsin theauditingofcomputerizedaccountingsystems(IFMSandCAATs),useofTeamMateauditSoftware,Procurementaudits,Revenueaudits,ManagementDevelopmentPrograms(MDPs)andFinancialaudits.

b) Information Technology and Audit Development

Intheyear,theOfficecontinuedinitseffortsofimplementingitsITStrategicPlanwhichfocusesonthecreationofanappropriateITgovernancestructure,developmentofITauditcapacity,useofAutomatedAuditTools,useofanewAutomatedAuditsManagementSystem(electronicworkingpapers)andthecreationofanofficewideICTinfrastructuretoenhancecommunicationandim-proveonbusinessprocesses.

c) Value for Money Audits

Article163(3)oftheConstitutionoftheRepublicofUgandaandsection13oftheNationalAuditAct�008,mandatetheOfficeoftheAuditorGeneraltoconductValueforMoney(VFM)auditsinrespectofanyprojectinvolvingpublicfunds.

IntheFinancialYear�008/�009,duetothesupporttheOfficeoftheAuditorGeneralreceivedfromtheRoyalNorwegianEmbassyandtheAfricanDevelopmentBank(ADB),anumberofachieve-mentsweremadeasfollows:-

• TheOfficecompletedtraining50ofitsauditstaffintoValueforMoneyauditors,ofwhich17 havebeendeployedtothenewlyformedVFMAuditUnitintheOAGtoconducttheVFM auditactivitiesonasustainablebasis.

• Ten(10)VFMauditreportswereproduced.

• Seventeen(17)staffweretrainedasVFMauditTrainers/Facilitators.Theywillbeusedto facilitatethetrainingofmoreOAGstaffinVFMaudittechniques.

• TheOAGVFMauditManualwasdevelopedandtestedbytheVFMAuditUnitoftheoffice withtheassistanceoftheAFROSAI-EConsultants.

• Fifty(50)oftheVFMauditorsweretrainedintwo(�)workshopsondataanalysis techniquesforVFMaudits.

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Participants & Trainers of the AFROSAI-E VFM Training of Trainers Course pose for a group photo with the Auditor General Mr. John F. S. Muwanga (1st Row 3rd from Left) & the Director of Audit Statutory Corporations/VFM Mr. Francis Masuba (1st Row 6th from Left)

2.7 Promote Increased Accountability, Probity and Transparency in the Management of Public Funds and Resources by Producing Reports that Add Value and make Positive and Practical Recommendations.

By carrying out its Constitutional mandate and reporting the audit results to Parliament and byattending thediscussionof thePublicAccountsCommitteeson theaudit recommendations, theOfficeoftheAuditorGeneralispromotingaccountability,probityandtransparencyinthemanage-mentofpublicfunds.

AlltheManagementLettersonLocalGovernmentAuditson�008/�009accountswerediscussedbothattheHeadquartersandtheRegionalBranchOfficestoproducereportsthataddvalueandmakepositiverecommendations.

Inaddition,toachievethisobjective,theOfficeintheyearinitiatedthematicauditsinLocalGovern-ments;conductedengineeringauditsintheroadsectorunderCentralGovernment;venturedintotheauditinspectionsoftertiaryinstitutions;andformulatedastrategyforauditofpensionsandpay-rollpaymentsystems(PPPS).

Toachievethesameobjective,theOfficeintheyearalsoengagedincarryingoutauditsofbacklogaccountsinLocalAuthoritiesandStateCorporations;directlyliaisedwithAccountingOfficersandParliamenttoassessneedsandimproveonvalueaddition;undertooksystemsauditstoinformtheExecutiveindecision-making;andmadeastrongfollow-upofCHOGMauditsinthePAC.

The staff have also been trained in various audit methods and techniques in order to assist inproducingqualityreportsthataddvalueandmakepositiveandpracticalrecommendations.


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3.1 Implementation of the NAA

TheNAAwasoperationalizedandputintopracticeassoonasitwasenactedandassentedtobythePresidentintheyear�008.

3.2 Continued Existence of the OAG (S.3) NAA

TheOAGinexistenceimmediatelybeforethecommencementoftheNAA,hascontinuedinexist-enceasabodycorporatesubjecttotheprovisionsoftheAct.AllpersonswhoimmediatelybeforethecommencementoftheNAAwereemployedintheOAGhavecontinuedtobeemployedthereinwithoutanybreakorinterruptionintheiremployment(S.46).

Inaccordancewiththenewtermsandconditionsofservice,allOAGstaffuptothelevelofPrincipalOfficer(U�)shallserveonpermanenttermswhiletheSeniorofficers(U1)andaboveshallserveona5yearcontractualterm.

3.3 Staff Recruitment, Promotion and Discipline

The futuremodeofoperationwith thePublicServiceCommission in regard to theProvisionsofSection9(�)oftheNAAwasdetermined,finalizedanddocumented.

This mode of operation was used to internally promote staff in consultation with Public ServiceCommission.ItwasalsousedinadvertisingpostsexternallyfortheOffice.

Themodewillbeusedinfutureindiscipliningstaffwheneversuchcasesarise.

3.0 IMPLEMENTATION OF THE NATIONAL AUDIT ACT, (NAA) 2008

The Principal Auditor Kampala Branch Mr. Thomas Kununka taking an oath of office assisted by Mrs. Beatrice Wambete, Principal Personnel Officer.

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4.1

TheConstitutionalmandateof theAuditorGeneral is toauditallpublicaccountsofUgandaandmakeareportontheauditstoParliament.AuditisthereforethemainengagementoftheAuditorGeneral.

FortheFinancialYear�008/�009Parliamentapprovedshs.�1.178billionstoenabletheOfficetocarryoutitsauditfunctionsmoretimely,comprehensively,efficientlyandeffectively.

4.2 Financial Audits

In the Financial Year, the Auditor General planned to carry out 4,�60 audits of the PublicAccountsofUgandaincludingaccountsofProjectsandValueforMoney(VFM)audits.TheAuditorGeneralwasabletocomplete�,051oftheauditsplannedleavingworkinprogressof�,�09audits.Thedetailsareasinthetable1-4below:Directorate Entities Planned audits In-process CompletedCentralGovernment MDA 83 - 83

Projects 133 � 131SpecialAudits 9 4 5

LocalGovernment HLGs 195 - 195LLGs 3,589 �,148 1,441RegionalHospitals 11 - 11SpecialsAudits 17 � 15

StateCorporation StateCorporations 198 43 155Specialaudits 5 - 5

ValueforMoney VFMaudits �0 10 10Total 4,260 2,209 2,051

Table 1-4

TheuncompletedauditsarebacklogauditsofaccountsofLLGs(�,148);StateCorporations(43);VFMaudtis(10);Specialaudits(6),Projects(�).

4.2.1 Central Government Audits

The Directorate of audit (Central Government), audits Government Ministries, Departments andAgencies (MDAs). In addition, the Directorate is also responsible for the auditing of TreasuryMemoranda,issueofGrantsofCredittotheMinistryofFinanceandInspectionofTertiaryInstitutionsundertheMinistryofEducation.

During the Financial Year �008/�009 the Directorate completed �19 audits of accounts ofGovernment MDAs (83), Projects (131) and Special audit investigations 4 as against a total of��5planned.

4.0 PERFORMANCE ON AUDIT ACTIVITIES

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4.0 PERFORMANCE ON AUDIT ACTIVITIES

Thedetailsareintable�-4below:

Status of Audits MDAs Projects Special Audits TotalPlannedAudits 83 133 9 ��5CompletedAudits 83 131 5 �19In-process NIL � 4 6

Table 2-4

Itisworthnotingthatinthecourseoftheyear,theDirectoratecarriedoutacomprehensivecoun-try wide engineering special audit of the roads under the Public Works Sector which has beenreportedonundertheUNRAaudit.

4.2.1.1 Audit of Treasury Memoranda

The Treasury Memoranda are prepared by the Treasury following the Treasury’s review of thePublicAccountsCommittee (PAC) reports.TheNationalAuditAct (NAA)�008,provides for theAuditorGeneraltoaudittheTreasuryMemoranda.

However,theTreasurywasnotabletopresenttreasurymemorandaintime.ThelastknownTreas-uryMemorandapreparedwasforthe�000/�001FinancialYear.Hence,noTreasuryMemorandawasauditedbytheOfficeinthe�008/�009financialyear.

Education audit exit meeting chaired by the Auditor General in the OAG Boardroom

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4.0 PERFORMANCE ON AUDIT ACTIVITIES...contd

4.2.1.2 Grants of Credit Issued

Article154(3)of theConstitutionof theRepublicofUgandarequirestheAuditorGeneral toap-provewithdrawalsofallmoniesfromtheconsolidatedfunds.Accordingly,intheyear�008/�009,theDirectorateofCentralGovernmentauditonbehalfoftheAuditorGeneralauthorizedwithdrawalsoffundsfromconsolidatedfundsamountingtoShs.5,638,47�,056,063billion.

Thedetailsareinthetable3-4below:

Expenditure No. of Warrants Issued Amount (Shs)Recruitment 48 �,855,639,73�,�84Development 17 1,836,3�0,860,95�Statutory 06 946,511,46�,7�7Total 71 5,638,472,056,063

Table 3-4

4.2.1.3 Inspection of Tertiary Institutions

In the financial year �008/�009, the Directorate of Audit (Central Government) inspected andreportedon70TertiaryInstitutionsintheEducationSector.

4.2.1.4 Challenges

AlthoughtheDirectorateofAudit (CentralGovernment)hasperformedverywell, itseffortswereconstrainedbyanumberofchallenges:-

• Delaysinprovisionofinformationandotherrecordsduringaudit,providingresponsesto theManagementLettersanddelaysinprovidingadditionalinformationaftertheexit meetingsbytheAccountingOfficers.

• InadequateofficespacefortheOAGauditorsattheauditeepremisesandatOAG Headquarters.ThischallengemaybeeliminatedwhenOAGfinallycompletesthe constructionofitsHeadquartersofficesandtheBranchofficesinMbale,JinjaandMbarara.

• NumerousrequestsforspecialauditinvestigationsontheDirectorateascompared totheavailabletime,funds,workloadandthehumanresourcetocarryoutthenormalor knownexternalauditsofMDAs.

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4.1.2 Local Government Audits

TheDirectorateofAudit(LocalGovernments)carriesoutfinancialauditsofalltheLocalAuthori-ties,includingRegionalReferralHospitals.IntheFinancialYear�008/�009theDirectorateplannedtoaudit195HigherLocalGovernments(HLGs); eleven(11)RegionalReferralHospitals;3,589LowerLocalGovernments(LLGs)and17Specialauditsamountingto3,795audits.

During theyear theDirectoratewasable toauditandor reporton1,66�auditscomprising195HLGs;1,441LLGs;11RegionalReferralHospitalsand15specialauditsasdetailedinthetable4-4below:

Audit Entity Year Planned Number of Audits

No. of completed Audits

No. of audits in progress

HLGs �008/�009 195 195 NILRegional ReferralHospitals

�008/�009 11 11 NIL

LLGs �008/�009 899 - 899�007/�008 899 - 899�006/�007 896 713 183�005/�006 895 7�8 167

Specialaudits �008/�009 17 15 �Total 3,812 1,662 2,150

Table 4-4

The Assistant Auditor General Mrs. Keto Nyapendi Kayemba (1st Row 2nd from Left) & the Director of Audit Local Government Mr. Aloysius Mayanja (1st Row 1st from Left) pose for photo with Gulu Branch Staff

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4.1.2.1 Challenges

Though the Directorate performed very well, this was amidst the several challenges it faced incarryingoutitsauditactivities.Thechallengesinclude:-

• LatesubmissionoffinancialstatementsandaccountingrecordsforauditbytheChief AdministrativeOfficers(CAOs)andtheTownClerks.

• LatesubmissionofresponsestotheManagementLettersbytheAccountingOfficersof LocalGovernments.

• FrequentabsenceofLocalAuthoritiesManagementstaffoftheLocalAuthoritiesduring audits.

• UseofoutdatedLocalGovernmentAccountingmanualthathasnotbeenupdatedfor preparationoffinancialstatementsinaccordwithemergingaccountingstandards.

• Difficultiestoaccessremoteauditentitiesinsomepartsofthecountry.

4.1.3 State Corporation Audit

TheDirectorateofAudit(StateCorporations)conductsauditsonStateCorporations,PublicEnter-prisesandStatutoryCommissions.Theentitieshavedifferentaccountingdatesforexample:-

• Yearending30thJune• Yearending30thSeptember• Yearending31stOctober• Yearending31stDecember

Duringthefinancialyear�008/�009theDirectorateaudited156accountsofStateCorporations,PublicEnterprisesandStatutoryCommissionoutofatotalof197accountsoftheentities.

Inaddition, theDirectoratecarriedout5Specialaudits.Thiswasa tremendous improvement intheperformancebytheDirectorateoverthepreviousyear.

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4.2 Value for Money

Value for money (VFM) audit is an audit of economy, efficiency, and effectiveness with whichauditedbodiesusetheirresourcesincarryingouttheirresponsibilities.

In the year (�008/�009) the Directorate carried out and completed ten (10) VFM audits,namely:-

i) ProcurementandDistributionofDrugsbytheNationalMedicalStores(NMS).

ii) RegulationsandEnforcementofStandardsbytheUgandaNationalBureauofStandards (UNBS)

iii) ProcurementandDistributionofReliefFoodItemsintheOfficeofthePrimeMinister- DepartmentofDisasterPreparednessandRefugeesinUganda.

iv) NorthernUgandaSocialActionFund(NUSAF)Project.

v) ProvisionofBasicNecessitiestoPrisoners,byUgandaPrisonsServices(UPS)

vi) SolidWasteManagementinKampala,byKampalaCityCouncil(KCC).

The Director of Audit Statutory Corporations Mr. Francis Masuba (1st Row 2nd from Left ) poses for a group photo with directorate staff after a meeting.

�1

4.0 PERFORMANCE ON AUDIT ACTIVITIES...contdvii) ManagementofForeignDebts:AcasestudyonEightDebtFundedProjectsby MinistryofFinance,PlanningandEconomicDevelopment(MoFPED)

viii) InspectionofSchoolsbytheMinistryofEducationandSports.

ix) ManagementofPensionsbytheMinistryofPublicService.

x) ProcessingofPassportsbytheMinistryofInternalAffairs.

4.2.1 Challenges

Inspite of the tremendous achievement, the VFM Audit Department faces serious challenges inexecutingitsVFMauditresponsibility.Forinstance:

i) ithaslowstaffinglevelsnotcommensuratewiththedemandforVFMauditreportsbyOAG stakeholders;

ii) VFMauditstakelongandarecostlytocompleteastheyarenotsettobesubmittedbya certaindate;

iii) auditeesdelaytorespondintimethusdelayingthewholeVFMauditprocess;

iv) VFMauditstaffneedadditionalcontinuoustrainingtosharpentheirskillstoproducequality auditreports.

Uganda Prisons Services audit exit meeting at Crusader House boardroom

��

5.1 Change Management

FollowingtheenactmentoftheNationalAuditAct,�008,therewasneedtosensitizeallOAGstaffonthechanges,newrolesandresponsibilitiesoftheoffice.

Tothateffect,threeworkshopswereconductedinthefinancialyear�008/�009atwhichleadingmanagement consultants were engaged to give motivational speeches to the staff at all levels.Suchchangemanagementinitiativesaretocontinue.

5.2 Restructuring of the office

UndertheCorporatePlanobjective3,ithadbeenanticipatedthatthecurrentOAGstructurewouldbereviewedinordertocreateanenvironmentthatenablestheofficetooperateefficiently,recruit,retainandmotivatesuitablestaff.

However,theprocurementprocessfortheConsultancyunderFINMAPstalledontechnicalgrounds.Asaresult,withfundingfromDFID,theofficeprocuredtheserviceoftheNationalAuditOfficeoftheUKtoconducttherestructuringexercise.Theinitialworkoffact-findinganddataverificationhascommenced.

Subsequenttothedelayedcompletionoftherestructuringexercise,newcriticalpostswerecreatedtoboostthecapacityoftheofficetomeetthediredemandsofoperationalisingtheNationalAuditAct,�008andeffectiveimplementationofthecorporateplan.

Thepostsare:DirectorFinance&Administration(ScaleU1SE),SeniorPersonnelOfficer(ScaleU3),SeniorPlanner(ScaleU3),SeniorProcurementOfficer(ScaleU3),SeniorPrincipalAdminis-trativeOfficer(ScaleU1E),SeniorPublicRelationsOfficer(ScaleU3),SeniorAdministrativeOfficer(ScaleU3),AssistantSecretary(ScaleU4),PrincipalStoresAssistant(ScaleU5),andSeniorLegalOfficer(ScaleU3).

Somemembersofstaffhavebeenassignedthedutiesinactingcapacitypendingtherecruitmentprocesstobeeffected.

5.0 HUMAN REOURCE MANAGEMENT AND DEVELOPMENT

OAG Staff attending a workshop at Speke Resort Munyonyo to discuss staff Rules & Regulations

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5.3 Delinkage from Public Service

TheprocessofdelinkingallOAGstafffromthemainstreamPublicServicecommenced.Inaccord-ancewiththePensionsAct(Cap�86),theOAGwasdeclared“OtherPublicService”byMinistryofPublicService/PensionAuthorityunderEstablishmentNoticeNo.1of�009.

Inaddition, theOAGStaffRulesandRegulationswerefinalizedandsubmittedtoParliamentforapprovalinaccordancewithSection4�(1).ArrangementsareunderwaytodeveloptheHumanResourcePolicyManual.

Theofficealsostartedpayingenhancedstaffsalarieswitheffectfrom4thOctober,�008asprovidedforintheBudgetCircular�008/09.

Furtherstill,allOAGstaffmemberswereregisteredbyNSSFandtheOfficeeffectivelyremittedthecontributions,inaccordancewiththeNSSFAct.

Despitetheachievementsstatedabove,therearesomechallenges:

i) theStatutory Instrumentgivingeffect to theprovisionsof theNationalAuditAct,�008as providedforunderSection4�oftheAct,hasnotbeenprepared;

ii) thedelayedapprovaloftheStaffRulesandRegulationsbyParliament,whichhasmadeit hard to issuenewappointment letters toOAGstaff,and thereforecontinueddependency oftheOfficeonthemainstreamPublicServiceRegulations.

5.4 Staff Training and Capacity Building

Theofficehadplannedtobuildthecapacityof�00membersofstaff.Theplantargeted50trainingsessions in financialauditmethodologies, ITaudit,TeamMate,Fraud/Forensicaudit,VFMaudit,andEnvironmentalaudit.

The plan also included continuation of sponsoring 100 members of staff that were pursuingprofessional courses in order to enhance professionalism and the quality of output generatedbytheOffice.

All the targets were met and 9 officers successfully completed their respective professionalcoursesinACCA,CPAandCISA.Inaddition,3officersattainedMastersDegreeswhile15otherscompletedunder-graduatestudiesintheircareerdisciplines.

5.0 HUMAN REOURCE MANAGEMENT AND DEVELOPMENT...contd

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5.5 Staff Performance Appraisal

InabidtocontinueimplementingResultsOrientedManagement(ROM),theOfficehadplannedtoconduct15staffsensitizationworkshops.TheAssistantAuditorGeneralissuedanAdministrativeNoticeguidingstaffonthedevelopmentofindividualperformanceplansandaperformanceassessmentcalendarwasissuedforthecomplianceofallmembersofstaff,includingthetopmanagement.

AlltheplannedstaffsensitizationworkshopsonROMandPerformanceAppraisalwereorganizedforallOAGstaffbothinKampalaandtheregionalbranchoffices.

However,theeffortstoimplementROMhavecontinuedtosufferduetoinadequatemanpowertoprovidecontinuedsupportandmonitoringofstaffperformance,especially in theregionalbranchoffices.

Efforts will continue to be made to sensitize the staff on the importance of staff performanceappraisalandthepositivedevelopmentsaccruingfromROM.

5.6 Recruitment of staff

The form of consultation between the office and Public Service Commission in the recruitment,promotionanddisciplineofstaffwasdocumentedfollowingaconsultativeprocess.

OAG Records Officers attending Induction Training at Crusader House

�5

For the first timeever, following theenactmentoftheNationalAuditAct,�008,theOAGrananinternal advertisement and a number of staffwere promoted to various posts while someExaminers of Accounts were appointed asAuditorsonattainmentofhigherqualificationstofill the positions of 6 Senior Principal Auditors,7PrincipalAuditors,15SeniorAuditors,and�4Auditors.

As a result of the continued capacity buildingefforts,agoodnumberofmembersofstaffatalllevelshaveacquiredprofessionalqualificationsandotherhigherqualificationsintherespectivecareerdisciplines.

Keeping thesehighlyqualifiedandenthusiasticemployees at lower posts is likely to generatedissatisfaction, poor job performance and highlabour turnover in the longrun.Already,duringtheyeartheoffice lost7membersofstaffwhotransferredtheirservicestootherofficeswheretheygotopeningsforpromotion.

5.7 Staff Medical Scheme

TheOfficecontinuestosupport�7staffwiththeirspouseswholivewithHIV/AIDsaswellasthosewith life-threatening illness like hypertension,canceranddiabetes.

Theprocurementprocess tosecureacompre-hensivereputablehealthinsuranceservicepro-vider for the staff was commenced in the year�008/�009.

5.8 Records and Information Management

The OAG recognizes the Records and Infor-mation Management Function as its life blood.Deliberate efforts have been directed towardsmaintainingasustainableRecordsandInforma-tionManagementSystemtosupportbetterserv-icedelivery,qualityandtimelyreportingaswellasevidence-baseddecision-making.

A number of activities were undertaken inthe records and information managementresource unit during the year �008/�009. FiveRecordsstaffmembershaveundergonetrainingattheUgandaManagementInstituteinabidtoimprove their professional calibre.Twoofficersalso acquired training in electronic documentsandrecordsmanagementsystems.

Effortsareunderway toautomateanumberofdocumentationand recordsmanagementproc-esses. The Office is developing a comprehen-siverecordsmanagementpolicy thatwillcoverallrecordsregardlessofthemedium.

Theresourcecentrehasbeenreplenishedwithadditional journals, reports and other recentpublications, totaling to 181, so as to enhancethe reading culture and facilitate the researchendeavoursoftheOAGstaffatalllevels.

However,therearechallengestobeovercome.There is acute shortage of storage space forsemi-currentrecordsthatarecriticaltosupport-ingdeliberationsofthePublicAccountsCommit-tees(PAC).

Officers have continued to suffer congestionin their respective offices to accommodate theincreasingvolumeofpaperrecords.

Proliferationofpaperdocumentshasremainedabigchallengealthoughthemanagementcon-tinuestoencouragestafftominimizepaperworkbymakinguseofavailableITfacilities.

Anumberofareasthatwillneedtobeaddressedinclude: improvement of information security;vital records protection and disaster manage-mentplanning;developingknowledgemanage-mentstrategiesthatareinlinewithinternation-al standards and global best practice; keepingabreast with the challenges of implementingan electronic records and document manage-mentsystem;andautomatingtheOAGrecordsmanagementprocessesinaccordancewiththeAFROSAI-Ebenchmarks.


�6

6.1 Office Accommodation

TheOfficeoftheAuditorGeneral(Headquarters)iscurrentlypartlyhousedattheTreasuryBuilding,1stFlooroftheEmbassyBuildingandinrentedpremisesatCrusaderHouse,inKampala.

The Regional Branch offices of Arua, Gulu, Soroti, Fortportal and Masaka are housed in OAGpremiseswhiletheregionalbranchofficesofKampala,KampalaCityCouncil,Jinja,MbararaandMbaleareeitherhousedinrentedpremisesorotherGovernmentInstitutionalbuildings.

However,theGovernmentofUgandawithsupportoftheDevelopmentPartnersmadeaprovisionfortheconstructionoftheAuditHouse(OAGHeadquarters)and3regionalofficesinMbale,Mbara-raandJinja.ThearchitecturaldesignsforOAGHeadquartersinKampalaandtworegionalbranchofficesofMbaleandJinjawerenear completion for the tenderingprocesses for construction tocommenceinMarch�009.ItwashopedthatconstructionwouldcommencebyJanuary�010.

ThearchitecturaldesignforMbararaRegionalofficewouldcommenceassoonaslandisavailedtotheoffice.MbararaDistrictLocalGovernmentpromisedtoallocatelandforthispurpose.

6.2 Transport Equipment

Duringtheyear�008/09,theofficeacquiredfour(4)stationwagonvehiclesfromGoUresources,two(�)stationwagonvehiclesfromtheAnti-CorruptionThreshold(MCC)andone(1)stationwagonvehiclefromJICAbringingthetotalto7vehiclesacquiredinthisperiod.ThesevehiclesweredeployedtothevariousDirectoratestofacilitatefieldoperations.By31stMarch�009,theofficehadatotalfleetof33vehiclesand6�motorcycles.

6.3 Assets Management

TheAssetsRegisterwasupdatedbytheAccountantGeneral’sOfficeandwashandedovertotheOfficeoftheAuditorGeneralforcontinuousupdateonacquisitionanddisposalofassets.UnderJICA,theofficeacquiredfurnitureand34computersforthetrainingroom.

6.0 OFFICE ASSETS AND LOGISTICS

An artistic impression of the proposed Mbale Regional Branch Office

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7.1

Foroversixyearsnow, theOfficehasbeen implementing the InformationTechnologyStrategicPlanwhich focusesoncreationofappropriate ITgovernancestructure,developmentof ITauditcapacity, use of automated audit tools, use of a new automated Audit Management Systems(TeamMate) and the creation of office wide IT infrastructure to enhance communication andimprovethebusinessprocessesoftheOffice.

7.2 Information Communications Technology Infrastructure

In theyear�008/�009theofficeacquired67 laptopsfromJICAwhichweredistributedtoall theDirectorates of the OAG. JICA also revamped the OAG Training Centre with new furniture and18desktopstomakeitfullyfunctional.

AllthedesktopshaveaccesstoIFMSandhaveTeamMateandIDEAapplicationsoftwareinstalledin them. ICTand ITaudit trainingarenowregularlyand frequentlyundertakenwith the facilitiesat the centre. Two additional projectors for training and cameras for field audits were procuredforthecentre.

Since�007/�008,theOAGwebsitecontinuestobeworkinprogresswithconstantupdates.Thewebsitefeaturesallthelatestauditreportspublished.Itiscurrentlyundergoingitssecondupdate.

TheIntranetcontinuestobeanimportantcommunicationstoolintheOfficewithregularupdatesofourofficeactivitiesonthenet.

7.0 INFORMATION COMMUNICATIONS TECHNOLOGY AUDIT DEVELOPMENT

The Auditor General Mr. John F.S. Muwanga launching the OAG Intranet during the staff workshop at Speke Resort Munyonyo. On his Right is the Director of Audit Central Government/ IT and on his

Left is the IT Manager Mr. Fabian Tonda

�8

Gulu branch was successfully added to the OAG network bringing the number of branchesconnectedtoseven(7).RegularmaintenancevisitstoallourauditbranchofficeswereundertakenbyourITmaintenanceteamvisitingeachbranchonquarterlybasis.

However, the efficient operation of OAG-ICT has been hampered by several challenges whicharesometimesoutoftheOffice’scontrol.TherehasbeenunreliableserviceprovidedtotheOAGnetworkconnectivity.

MaintainingoptimumlinkspeedinourbranchesandHeadquartersofficehasprovidedachallengeintheIToperationsoftheOffice.EmbassyandCrusaderHousehavebeenheavilyaffectedsohavebeenSorotiandAruaoffices.

Our future measures to ameliorate these challenges shall include upgrading the network at theEmbassy House and Crusader House; upgrading the Data centre to provide better services;acquiring further consignmentof laptops tohave1:1staff laptop ratio;and renewalof theOAGTeamMateandWinIDEAlicences.

7.0 INFORMATION COMMUNICATIONS TECHNOLOGY AUDIT DEVELOPMENT...contd

8.1

Timelyandcomprehensiveministerialpolicystatementfor�008/09oftheOAGwaspresentedtoParliament and approved with the required funding amounting to �1.178bn shillings. The officewasabletoaccomplishitsoperationalandauditactivitiesenumeratedbelowby30thJune�009.

8.2 Budget Performance

As stated earlier in the preceding paragraph, a budget of Shs.�1.178 bn was approved byParliament for the financial year �008/�009 to assist not only with the implementation of auditprograms but also to increase human resource skills in various specialized audit areas as wellasprovidetherequiredfacilitationforadministrationandoperationsoftheOffice.

However,duetostaffgapsandbureaucraticallyslowrecruitmentprocesses,onlyShs.�0.046billion(95%)oftheresourceswereactuallyreceivedfromtheTreasury.

Ontheotherhand,thedonorsfulfilledall(100%)theirpromiseddevelopmentfundingwhichwasfullyutilizedinaudittrainingprogramsandothermemorandumrequirements.

8.0 FINANCIAL MANAGEMENT AND BUDGET PERFORMANCE

�9

AsummaryoftheBudget,ActualReleasesandMTEFProjectionsisinthetable1-8below:

Budget Type Approved Budget 2008/09 (Bns)

Actual Out-turn 2008/09 (Bns)

Approved 2009/10 (Bns)

MTEF Alloca-tion 2010/11 (Bns)

MTEF Alloca-tion 2011/12 (Bns)

Recurrent 19.486 18.354 �3.833 �3.833 30.330GoUDevt 0.310 0.310 0.560 0.660 0.890DonorDevt 1.38� 1.38� �.300 - -Total 21.178 20.046 27.043 24.490 31.220

Table 1-8:

Atotalof1,763auditswerecarriedoutusingtheabovefunds,9�OfficerstrainedintheareasofValue forMoney, InformationSystemsAudit (1�0),ProfessionalTraining (86)aswell ason jobtraining(��8).

The Office Logistics and infrastructure was expanded by acquiring additional vehicles (6), andfurniture.

8.3 Internal controls, Internal Audit and Risk Management

TheOfficeoftheAuditorGeneralhasasectionof internalaudit,whichverifiestheeffectivenessofinternalcontrolsandadvisesonriskmanagement.TheOfficecontinuestoimproveoninternalcontrol systems in a bid to ensure proper adherence to the financial management policies andprocedures.

Thesectioniscurrentlystaffedwithoneofficerwhoproduced4quarterlyreportsandtwoad-hocreportsduringthefinancialyear�008/09.

However,oneofficerisnotadequatetomeetthecontrolneedsoftheofficeandasaresult,aplanhasbeenfinalizedtorecruitanadditionalofficerinthefinancialyear�009/10.

8.0 FINANCIAL MANAGEMENT AND BUDGET PERFORMANCE...contd

30

8.4 Procurement

A procurement plan for �008/09 was prepared and executed fully in the year with the approvalofPPDA.AnewContractsCommitteewasappointedandwasathandtoensurethattheofficereceivedvalue formoney in itsprocurements.Anewplan for�009/10wasalsocompletedandapprovedbyPPDA.

The unit (with One Officer) was able to meet the minimum office procurement requirementsamidst difficulties due to understaffing capacity gaps as well as complying fully with theprocurementlawrequirements.

AplanisalsoinadvancedstagestorecruitonemorestafftotheunitatPrincipalInternalAuditorLevel.

8.5 Asset Management

Anassetregisterwasinstalledin�007/08andhasbeenpostedup-to-datewiththedetailsofalltheofficeassetsincludingvehicles,furniture,motorcycles,buildings,etcintheyear�008/�009.

Thesystemisupdatedonanyassetacquisition,transferanddisposalbasis.TheassetsarefullyengravedintheirrespectivecategoriesincludingbothdonatedandGoUassets.

An assets register list is printed quarterly for management purposes and an annual report isnormallyattachedtothefinancialstatementsforagivenfinancialyear.

8.6 Financial Reporting and Audit

Theresultsfor thefinancialyear�008/09weresummarizedinthefinancialstatementspreparedas at 30th June �009 and submitted by the Office as per the required statutory date of 30thSeptember�009.(SeeappendixII-UnauditedfinancialstatementsoftheOAG).

FINMAPhascompleted theprocurementprocessofanauditorawaitingParliamentaryapprovaltoauditOAGaccountsforthefinancialyearsfrom�005/06to�007/08.TheauditwillcommenceanytimeafterParliamentgivesitsapproval.

8.0 FINANCIAL MANAGEMENT AND BUDGET PERFORMANCE...contd

31

TheConstitutionofUgandaArticle164(3)mandatestheParliamentofUgandatoperformtheover-sightfunctionoverthepublicfundsandrequirestheExecutivearmofGovernmenttoaccountforthePublicResourcesentrustedtotheExecutiveforprovisionofpublicservices.

Theoversight functionofParliamentover thepublic funds inpractice isexecuted through threeaccountabilityCommitteesofParliamentwhichinclude:thePublicAccountsCommittee(PAC)forCentralGovernmentMinistries,DepartmentsandAgencies;theLocalGovernmentPublicAccountsCommittee(LGPAC)forLocalGovernments;andtheCommitteeonStatutoryAuthorities,Commis-sionsandStateEnterprises(COSASE).

TheAuditorGeneralisexpectedtoprovidetechnicalguidancetothethree(3)CommitteesofParlia-mentaswellastotheDistrictPublicAccountsCommittees(DPACs)foreachDistrict.

IntheFinancialYear�008/�009, theAuditorGeneralreportedtotheSpeakerofParliamentandparticipatedactivelyintheCommitteediscussions.

ThenumberofcommitteediscussionsandmeetingstheOfficeoftheAuditorGeneralattendedinParliamentisdepictedinthetable1-9below.

Committee Number of meetings Reports HandledPAC 117 MDAsLGPAC 1� LGsCOSASE 17 SCsTotal 146

Table 1-9

9.0 RELATIONSHIP WITH OVERSIGHT COMMITTEES OF PARLIAMENT

3�

10.1

The Office of the Auditor General (OAG) is a member of several International Organizations inwhose activities the office actively participates. The Office does receive delegations from otherInternationalOrganizationsthatareinterestedinlearningandsharingexperienceswiththeOAG.

Inaddition,theofficersoftheOffice(OAG)alsomakeinternationalvisitstootherrelevantorganiza-tionsoutsideUgandatolearnfromandshareexperienceswiththem.

10.2 International Consortium on Government Financial Management (ICGFM)

TheICGFMworksgloballywithGovernments,Organizationsandindividualswhoareinterestedindevelopments inpublic financialmanagement.TheConsortiumbrings togetherdiverseGovern-mentalEntities,Organizationsand individualswho include financialmanagementpractitioners inatlevelsofGovernment.

The Office of the Auditor General, currently, is one of the six organizational members of theConsortium who serve on its Governing Board. In the Financial Year �008/�009 the Officesentfour(4)SeniorOfficerstoparticipateintheConferenceactivitiesoftheConsortium.

10.3 United Nations Independent Audit Advisory Committee (UN-IAAC)

TheIndependentAuditAdvisoryCommitteeoftheUnitedNations(UN-IAAC)isasubsidiarybodyof theGeneralAssemblyof theUnitedNations (UN)established to serve inanexpert advisorycapacitytoassisttheGeneralAssemblyoftheUNinfulfillingitsoversightresponsibilities.

Thecommitteeismandatedtoadvise:-

i) theGeneralAssemblyonthescope,resultsandeffectivenessofauditandotheroversight functions;

ii) on measures to ensure management’s compliance with audit and other oversight recommendations,and

iii) onvariousriskmanagementandaccountingdisclosureissues.

The Auditor General of Uganda was appointed and is a member of the UN Independent AuditAdvisoryCommittee.InhiscapacityasamemberoftheUN-IAAC,theAuditorGeneralattendedallthemeetingsoftheCommitteeintheFinancialYear�008/�009.

10.0 INTERNATIONAL RELATIONS

33

10.4 World Bank Multilateral Advisory Group

TheWorldBankGrouphasestablishedaMultilateralAuditAdvisoryGroup(MAAG)thatisspecifi-callytaskedwithadvisingtheAuditCommitteeoftheWorldBank(WB)onauditrequestsfromtheSupremeAuditInstitution(SAI)orotherNationalAuditOffices.

TheAdvicegiven(byMAAG)includesassessingcomplianceoftheSAIswiththeagreedtermsofreferencesfortheaudit;assessingadherencetotheagreedgrouprules,andprovidingobjectivecommentsontheresultingauditreports.

TheAuditorGeneralofUgandaisamemberofthisMultilateralAuditAdvisoryGroup(MAAG)oftheWorldBank.TheAuditorGeneralisassistedbyMrs.KetoKayembaontheMAAGcommittee.

10.5 INTOSAI and IDI

INTOSAI in full means the International Organizations of Supreme Audit Institution. It is anorganizationorAssociationofSupremeAuditInstitutions(SAIs)ofcountrieswhicharemembersoftheUnitedNations(UN).

IDI,which in fullmeans, InternationalDevelopment Initiative is the trainingarmof the INTOSAIthroughwhichmembersofINTOSAIshareknowledge,skillsandinformationthroughtraining.

TheOfficeoftheAuditorGeneralsubscribestoandisapermanentmemberofINTOSAI.DuringtheFinancialYear�008/�009theOAGwasrepresentedandactivelyparticipatedintheprogrammesandactivitiesofINTOSAIthroughconferences,workshops,trainingeventsandcorrespondences.

TheactivitiesandprogrammesenabledtheOAGtoshareknowledge,informationandexperienceswithotherNationalAuditOffices(SAIs)globally.

10.6 The CommonWealth Auditors General Conference

The Commonwealth Auditors General Conference is an association and conference organizedonceeverythree(3)yearsbytheCountrieswhobelongtotheCommonwealthofNations.

TheOfficeoftheAuditorGeneralofUgandaisamemberofandsubscribestotheCommonwealthAuditorsGeneralConference.TheofficelastparticipatedintheBermudaConferenceinJulyofthefinancialyear�008/�009.

10.0 INTERNATIONAL RELATIONS...contd

34

10.0 INTERNATIONAL RELATIONS...contd10.7 AFROSAI and AFROSAI-E

AFROSAImeansAfricanOrganizationofSupremeAuditInstitutions.Itisacontinentwideorgani-zationofSupremeAuditInstitutions(SAIs)ofAfricaandaRegionalAfricancontinentalmemberofthe INTOSAI. Through participating in the programmes and events of AFROSAI, member SAIsshareknowledge,informationandexperiencesonpublicsectorauditissues.

TheofficeoftheAuditorGeneralsubscribestoandisamemberofAFROSAI.Duringthefinancialyear �008/�009 the office participated actively in exchanging knowledge, skills, information andexperienceswithin the frameworkofAFROSAI throughconferences,workshops, trainingeventsandsurveyingcorrespondences.

AFROSAI-Eisasub-regionalorganizationofEnglishSpeakingAFROSAImembers.ItsSecretariatisinPretoria,SouthAfrica.TheOfficeoftheAuditorGeneralsubscribestoandisaneffectivemem-berofAFROSAI-E.

Inthefinancialyear�008/�009theofficeactivelyandextensivelyparticipatedinseveralactivitiesofAFROSAI-Ethroughmeetings,conferences,workshops,trainingeventsandself-assessmentvisitstoshareknowledge,information,skillsandexperiences.

AFROSAI-Ewascontractedtotrain50OAGstaffinVFMaudittechniques.TheConsultancywassuccessfullycompletedinthe�008/�009FinancialYear.

10.8 International Delegations

Since the visible increment in quality and quantity of performance of the Office of the AuditorGeneral in the eyes of the external stakeholders; and the successful adoption of efficient andeffective audit tools and methods in auditing Computerized Accounting and FinancialManagement System, such as the IFMS, the office started receiving a stream of InternationalDelegations wishing to share experiences and broaden their knowledge with the National AuditOffice(SAI)ofUganda.

The Controller & Auditor General of the Revolutionary Republic of Zanzibar Madam Fatma Mohammed Said (5th from Right) poses for a photo with OAG staff in Jinja.

35

11.0 CORPORATE SOCIAL RESPONSIBILITY

The Office of the Auditor General is aware of problems, difficulties and challenges that affectour society or certain sections of our society. The office often gets involved in contributing toaddressissues,inwhateversmallway,toimprovethewelfareofhumankindinthesociety.

InNovember�008,theOfficesuccessfullysponsoredabout�0officerstoparticipateintheMTNmarathon.Theproceedsofthiseventwereusedtoassistthoseinneed.

In addition, in February �009, the Office sponsored a Golf Team with Shs. 500,000 at KitantebasedUgandaGolfClubtohelpwarorphansinGulu.Thiswasco-ordinatedbytheUgandaRedCrossSociety.

12.0 REGISTRATION OF ACCOUNTANTS

ProfessionalAccountantsplayavitalroleintheeconomy.Theyarecriticalinprovidingthefinan-cialframeworkinaccountingaswellasinprovidinginformationandadviceinauditing,taxation,financeandbusinessconsultationsinbothPublicandPrivateOrganizations.

Section9oftheAccountant’sStatute(199�)empowerstheAuditorGeneraltobetheRegistrarforAccountantsinUganda.ItrequirestheAuditorGeneraltoregisterandmaintainaregisterfortheAccountants.

In the Financial Year �008/�009 the Auditor General registered 57 Accountants. At the time ofreportingafurther35qualifiedAccountantshadappliedtoberegistered.

10.0 INTERNATIONAL RELATIONS...contd

Intheperiodofreporting,theofficereceivedInternationalDelegationsfrom:-

• TheNationalAuditOfficeoftheRevolutionaryGovernmentofZanzibarfrom�8thJulyto 1stAugust�008.

• TheGeneralAuditingCommissionoftheRepublicofLiberiafrom18thto�0thAugust, �008.

10.9 International Visits

OfficersoftheOfficeoftheAuditorGeneraldomakevisitstorelevantorganizationsabroadtolearn,shareinformationandexperiences.

IntheyearofreportingtheDirectorofCentralGovernmentAuditvisitedNamibiatocarryoutanITself-assessmentoftheNamibianSAI.

36

13.0 APPENDIX I

LIST OF OFFICE OF THE AUDITOR GENERALREGIONAL BRANCH OFFICES

1. ARUARegionalAuditBranchOffice

�. GULURegionalAuditBranchOffice

3. FORTPORTALAuditRegionalBranchOffice

4. JINJARegionalAuditBranchOffice

5. KAMPALARegionalAuditBranchOffice

6. KCCRegionalAuditBranchOffice

7. MASAKARegionalAuditBranchOffice

8. MBALERegionalAuditBranchOffice

9. MBARARARegionalAuditBranchOffice

10. SOROTIRegionalAuditBranchOffice

37

13.0 APPENDIX II

GOVERNMENT OF THE REPUBLIC OF UGANDAUNAUDITED REPORT

REPORTS AND FINANCIAL STATEMENTS FOR

THE OFFICE OF THE AUDITOR GENERAL

FOR THE YEAR END 30 June 2009

Statement of Responsibilities of the Accounting Officer

Thefinancialstatementssetoutonpages5to�0havebeenpreparedinaccordancewiththeprovi-sionsofthePublicFinanceandAccountabilityAct,�003[theAct].Thefinancialstatementshavebeenpreparedonthemodifiedcashbasisofaccountingandcomplywiththegenerallyacceptedaccountingpracticeforthepublicsector.

InaccordancewiththeprovisionsofSection8ofthePublicFinanceandAccountabilityAct,�003,[theAct],IamresponsibleforthecontrolandpersonallyaccountabletoParliamentfortheregularityandproprietyoftheexpenditureofmoneyappliedbyanexpenditurevote,oranyprovisionfundedwhollythroughtheConsolidatedFund,andforallresourcesreceived,heldordisposedof.

UndertheprovisionsofSection31ofthesameAct,Iamrequiredtoprepare,signandsubmitfi-nancialstatementstotheMinisterresponsibleforFinance,theAuditorGeneral,andtotheAccount-antGeneralwithinaperiodofthreemonthsfromtheendoftheFinancialYear.Accordingly,IampleasedtosubmittherequiredfinancialstatementsincompliancewiththeAct.Ihaveprovided,andwillcontinuetoprovidealltheinformationandexplanationsasmayberequiredinconnectionwiththesefinancialstatements.

Tothebestofmyknowledgeandbelief,thesefinancialstatementsagreewiththebooksofaccount,whichhavebeenproperlykept.

Iacceptresponsibilityfortheintegrityofthesefinancialstatements,thefinancialinformationtheycontainandtheircompliancewiththePublicFinanceandAccountabilityAct,�003.

……JOSEPH L EWAMA………………………………………………………….AccountingOfficer[Names&Signature]

38

13.0 APPENDIX II...contd

THEOFFICEOFTHEAUDITORGENERAL

30th-09-�009…………………………….Date

THE ROLE OF OFFICE OF THE AUDITOR GENERAL

TheprincipaladdressoftheOfficeis:

OfficeofTheAuditorGeneralP.OBox7083Plot�/1�AppolloKagwaRoadTel;(�56414)344340/5�1AuditorGeneral;(�56414)�55487Fax:(�56414)345674KampalaE-mail:[email protected]:www.oag.go.ug

VISION: “TobeaneffectiveandefficientSupremeAudit Institution inpromotingeffectivepublicaccountability”

MISSION: “ToauditandreporttoParliamentandtherebymakeaneffectivecontributiontoimprov-ingpublicaccountabilityandvalueformoneyspent”

CORE VALUES

TheOfficeiscommittedtoupholdingthefollowingasitscorevalues:-Integrity–Beinguprightandhonest.Objectivity–Displayimpartialityandprofessionaljudgment.ProfessionalCompetence–Actwithdiligence,proficiencyandteamspirit.

TheOfficeistheSupremeAuditInstitution(SAI)providedforundeArticle163(3)oftheConstitu-tionoftheRepublicofUganda.TheOfficeisresponsibleforauditingandreportingonthepublicAccountsofUgandaandofallpublicOfficesincludingtheCourts,thecentralandLocalGovern-mentAdministrations.UniversitiesandPublicInstitutionsoflikenatureandPublicCorporationsorotherbodiesestablishedbyanActofParliamentalsoformthescopeofthisauditforreportingtoParliament.

39


Commentary on the Financial Statements by the Head of Accounts

TheOfficeembracedtechnologybyimplementingtheIFMSduringthefinancialyear�008/09effec-tiveAugust�008.Asexpected,therewasaslowstartwithissuestodowithsuppliermaintenanceandemployeeentrywhichwerelaterclearedbyDecember�008.

Thesystemhashoweveroutstandingissuesregardingwrongtaxcalculationsandsystemholdsoninvoices.Theseissueshavebeenloggedwiththehelpdeskandasolutionisawaited.Correctionshavebeenmadeintheseaccountsandshallbereflectedonthesystemoncethehelpdeskhasclearedthem.

AnewAuditAct�008wasimplementedeffective4thOctober�008withmajor increasesinstaffemolumentsraisingthebudgetfromShs8bntoatotalcombinedfigureofShs�1bnincludingdonorfunding(Shs.19.979bnGoU).Ofthis,atotalamountofShs.10bnwassalaryandtheoverallbudgetperformanceintermsofreleaseswas93%percentofGoUfundingwhileallthedonorfundswerereleased.

AnamountofShs18.664bnworthofexpenditurewas incurredonGoU fundingofwhichdevel-opment expenditure accounted for Shs. 0.310bn, the balance being on recurrent activities andsalary.

In the financialyear�007/08,a totalofShs.36,567,51�hadbeenreflected in finalaccountsasdomesticarrears.However,thesewerelaterrejectedonverificationandwrittenoffandfinancialstatementsadjustedassuch.

……AMBROSE PROMISE …………………………………..………..HeadofAccounts[Names&Signature]

30th-09-�009………………………………………….Date:

ReportoftheAuditorGeneral

[SpacereservedfortheReportoftheAuditorGeneral]

40


Statement of Financial Performance for the year ended 30 June 2009[Based on classification of expenditures by nature]

Budget 2009 Shs

Notes Actual 30 June 2009

Shs

Actual 30 June 2008

ShsOperating revenueGrantsfromforeigngovernments � - 390,�45,4�8Grantsfrominternationalorganizations 3 - 909,370,876DomesticGrants 4 - 000

19,979,713,805 TransfersreceivedfromtheTreasury 5 18,664,041,664 7,535,10�,958Transfers received from other governmentunits

6 - 000

Non-TaxRevenues 7 7,470,000 346,000OtherRevenue 8 000

19,979,713,805 Total operating revenue 18,671,511,664 8,835,065,262Operatingexpenses

1�,774,963,474 Employeecosts 9 11,074,841,3�5 3,108,079,5986,143,489,331 Goodsandservicesconsumed 10 5,905,�98,��9 4,359,534,8�0

1�5,000,000 Consumption of property, plant & equip-ments

11 1�4,894,106 310,944,778

Interestexpense 1� 000Subsidies 13 000

936,�61,000 Transfers to other Organizations (Grantspaid)

14 868,649,38� 1,044,311,�46

Socialbenefits 15 000Otherexpenses 16 000Foreignexchangelosses(gains) 18 000

19,979,713,805 Total operating expenses 17,973,683,042 8,822,870,4420 Surplus/(deficit) from operating activities 697,828,622 12,194,820

Financecosts 17Lossesofcashonly(refertoStatementofre-portedlosses)Extraordinaryitems 19

0 Net surplus/ (deficit) after extraordinary items

697,828,622 12,194,820

Theaccountingpoliciesandnotessetoutonpages�1to38formanintegralpartofthesefinancialstatements.

Thefinancialstatementsonpages5to�0wereapprovedbytheAccountingOfficeron30th-09-�009

…JOSEPH L EWAMA …………………………………………………………AccountingOfficer[Names&Signature]

41


Statement of Financial Position as at 30 June 2009.

Notes 30 June 2009Shs

30 June 2008Shs

ASSETSCashandcashequivalents �0 649,903,310 7�8,�75,916Receivables �1 000Inventories �� 000Investments �3 000Investmentproperties �4 000Total Assets 649,903,310 728,275,916LIABILITIESBorrowings (interest bearing liabilities)–OverdrawnBoUAccount

�5 �6,590,�79 �6,590,�79

Payables �6 - 36,567,51�Pensionliabilities �7 000Total liabilities 26,590,279 63,157,791NET ASSETS / (LIABILITIES) 6�3,313,031 665,118,1�5

REPRESENTED BY;NET FINANCIAL WORTH 623,313,031 665,118,125

STATEMENT OF CHANGES IN EQUITY (NETWORTH) AS AT 30 June 2009

30 June 2009Shs

30 June 2008Shs

NetworthLastYear(B/F) 665,118,1�5 717,�80,849Less:TransferstotheUCFaccount(Bal-ances)

(5�,089,937) (90,�4�,5�5)

Add:BouncedEFTs(Stalecheques) (��,811,9�9) �5,584,991Less:ProjectBalances (701,�99,36�) 000Adjustment:Under/OverStatementofDomesticArrearsofPastYears

36,567,51� 000

Add:Surplus/DeficitfortheYear 697,8�8,6�� 1�,194,8�0 CLOSING NET FINANCIAL WORTH 623,313,031 665,118,125



…JOSEPH L EWAMA…………………………………………………AccountingOfficer[Names&Signature]

4�

13.0 APPENDIX II...contdCash Flow Statement for the year ended 30 June 2009 [Direct Method]


30 June 2008Shs

CASH FLOWS FROM OPERATING ACTIVITIESTotal receipts from operating revenues were (see below): 18,671,511,664 8,835,065,262PAYMENTS FOR OPERATING EXPENSES:Employeecosts 11,074,841,3�5 3,108,079,598Goodsandservicesconsumed 5,905,�98,��9 4,359,534,8�0InterestexpenseSubsidiesTransferstootherOrganizations(GrantsPaid) 868,649,382 1,044,311,�46

SocialbenefitsOtherexpensesNetAdvancespaidDomesticarrearspaidduringtheyearPensionArrearspaidduringtheYearLossesofcashLettersofCreditreceivableExtraordinaryitemsTotal payments for operating activities 17,848,788,936 8,511,925,664Net cash inflows/(outflows) from operating activities 822,722,728 323,139,598CASH FLOWS FROM INVESTING ACTIVITIESPurchaseofproperty,plantandequipments (1�4,894,106) (310,944,778)Proceedsfromsaleofproperty,plantandequipmentsPurchaseofinvestmentsProceedsfromsaleofinvestmentsPurchaseofinvestmentpropertiesProceedsfromsaleofinvestmentpropertiesNet cash inflows/(outflows) from investing activities (124,894,106) (310,944,778)CASH FLOWS FROM FINANCING ACTIVITIESProceedsfromexternalborrowingsRepaymentsofexternalborrowingsProceedsfromotherdomesticborrowingsRepaymentsofotherdomesticborrowingsNet cash flows from financing activities -Net increase (decrease) in cash and cash equivalents 697,828,622 12,194,820



…JOSEPH L EWAMA……………………………………………………AccountingOfficer[Names&Signature]

43


Cash Flow Statement for the year ended 30 June 2009 (continued)

For cash flow purposes receipts from operating revenue comprise:


30 June 2008Shs

Operating revenueGrantsfromforeigngovernments � 390,�45,4�8Grantsfrominternationalorganizations 3 909,370,876Unconditionalgrants 4Conditionalgrants 4Equalizationgrants 4TransfersreceivedfromtheTreasury 5 18,664,041,664 7,535,10�,958Transfersreceivedfromothergovernmentunits 6 000Non-taxrevenues 7 7,470,000 346,000Miscellaneousandunidentifiedrevenue 8AdvancesRecoveredDepositsReceivedTotal receipts from operating activities 18,671,511,664 8,835,065,262

Reconciliation of movement of cash during the year


30 June 2008Shs

Atthebeginningoftheyear 7�8,�75,916 780,438,640Less:TransferstoUCFaccount(Balances) (5�,089,937) (90,�4�,535)Less:ProjectbalanceswrittenDown (701,�99,36�)Add:BouncedEFTs(Stalecheques) (��,811,9�9) �5,584,991Netincrease(decrease)ofcashfromtheCash flow Statement

697,8�8,6�� 1�,194,8�0

At the end of the year 649,903,310 728,275,916

For purposes of the cash flow statement, cash and cash equivalents comprise

30 June 2009Shs

30 June 2008Shs

Cashandbankbalances �0 649,903,310 7�8,�75,916Lessbankoverdrafts �5Net cash and bank balances 649,903,310 728,275,916



JOSEPH L EWAMA……………………………………AccountingOfficer[Names&Signature]

44

13.0 APPENDIX II...contdStatement of Appropriation Account [Based on services voted by Parliament]

Actual 30 June2008Shs.

Notes Actual30 June 2009

Shs.

Budget30 June 2009

Shs.

Variance30 June 2009

Shs.

RECEIPTS390,�45,4�8 Grantsfromforeigngovern-

ments�

909,370,876 Grantsfrominternationalorganizations

3

7,535,10�,958 TransfersreceivedfromtheTreasury

5 18,664,041,664 19,979,713,805 1,315,67�,141

Transfersreceivedfromothergovernmentunits

6

346,000 Non-TaxRevenues 7Miscellaneousandunidenti-fiedrevenue

8

8,835,065,262 Total receipts 18,664,041,664 19,979,713,805 1,315,672,141EXPENDITURE- by servic-es voted in the Estimates Book.

3,173,819,091 Prog01-Headquarters 6,160,505,150 6,338,�14,�08 177,709,0581,�94,301,006 Prog0�–Directorateof

CentralGovernment3,7�3,848,815 3,774,360,�19 50,511,404

631,937,94� Prog03–DirectorateofStatutoryAuthorities

�,16�,515,��4 3,050,758,000 888,�4�,776

1,645,036,495 Prog04–DirectorateofLocalAuthorities

5,107,55�,111 5,750,767,378 643,�15,�67

18�,999,870 Prog05–DirectorateofValueforMoneyandQualityAssurance

576,490,45� 755,�46,000 178,755,548

1,636,712,816 Development Budget Expenditure

235,301,290 310,368,000 75,066,710

8,564,807,220 Total expenditure for serv-ices voted

17,966,213,042 19,979,713,805 2,013,500,763


Thefinancialstatementsonpages5to�0wereapprovedbytheAccountingOfficeron30th-09-�009……JOSEPH L EWAMA ………………………………………………AccountingOfficer[Names&Signature]

45


Statement of Appropriation Account [Based on nature of expenditure for services voted]

Actual30 June 2008

Shs


Shs

Budget30 June 2009

Shs


ShsRECEIPTS

390,�45,4�8 Grants from foreign govern-ments

2

909,370,876 Grants from international or-ganizations

3

7,535,10�,958 Transfers received from theTreasury

5 18,664,041,664 19,979,713,805 1,315,67�,141

Transfers from other govern-mentunits

6

Non-TaxRevenues 7Miscellaneous and unidenti-fiedrevenue

8

8,835,065,262 Total receipts 18,664,041,664 19,979,713,805 1,315,672,141EXPENDITURE-by nature of expenditure

3,108,079,598 Employeecosts 9 11,074,841,3�5 1�,774,963,474 1,700,1��,1494,359,534,8�0 Goods and services con-

sumed10 5,905,�98,��9 6,143,489,331 �38,191,10�

310,944,778 Consumptionofproperty,plant&equipments(fixedassets)

11 1�4,894,106 1�5,000,000 105,894

Interestexpense 12Subsidies 13

786,�48,0�4 Transferstoothergovernmentunits(Grants)

14 861,179,38� 936,�61,000 75,081,618

Socialbenefits 15Otheroperatingexpenses 16Domesticarrearspaid

8,564,807,220 Total operating expenses 17,966,213,042 19,979,713,805 2,013,500,763Financecosts 17

8,564,807,220 Total Expenditure 17,966,213,042 19,979,713,805 2,013,500,763



…JOSEPH L EWAMA ……………………………………………………AccountingOfficer[Names&Signature]

46


Statement of reconciliation between total expenditure per Statement of Appropriation Account to total expenditure in Statement of Financial Performance


Shs

Actual30 June 2008

ShsTotal expenditure per Appropriation Account 17,966,213,042 8,564,807,220Add:Letters of credit receivable prior year but deliveredduringtheyearTransfersrec’dfromothergovernmentunitsTransfertoTreasuryNTR 7,470,000 346,000TransfertoTreasuryGrossTax �57,717,��AccruedExpenditure

SUB-TOTAL 17,973,683,042 8,822,870,442Less:Lettersofcreditreceivableatyear-endTransfersmadetoothergovernmentunitsDomesticArrearspaid Nil

Total Expenditure per Statement of Financial Performance

17,973,683,042 8,822,870,442



…JOSEPH L EWAMA……………………………………………………AccountingOfficer[Names&Signature]

47


Statement of Revenues collected during the year ended 30 June 2009[Based on source of revenue] (Memorandum Statement)

Actual 30 June

2008Shs


Shs

Budget30 June 2009

Shs


Shs

RECEIPTS

Non-tax revenuesInvestmentincomeDividendsPropertyincomeattributedtoin-surancepolicyholdersRentOtherpropertyincomeSalebymarketestablishments 7,470,000 - (7,470,000)

346,000 Administrativefees&licensesIncidental sale of goods andservicesImputedfinesandpenaltiesCourtfinesandpenaltiesOtherfinesandpenaltiesVoluntary transfers other thangrants-currentVoluntary transfers other thangrants-capitalWithdrawalfromincomeofqua-si-corporationsMiscellaneous and unidentifiedrevenues

346,000 Total Non-Tax Revenue 7,470,000 - (7,470,000)



…JOSEPH L EWAMA ……………………………………………………AccountingOfficer[Names&Signature]

OFFICE OF THE AUDITOR GENERALP.O. Box 7083 Kampala

Plot 2/12 Apollo Kaggwa RdTel: +256-41-4345674Fax: +256-41-4345674E-mail: [email protected]

Website: www.oag.go.ug

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