OFFICE OF THE AUDITOR GENERAL ANNUAL REPORT OF THE AUDITOR GENERAL VOLUME 1 PERFORMANCE REPORT

Transcription

1 THE REPUBLIC OF UGANDA OFFICE OF THE AUDITOR GENERAL ANNUAL REPORT OF THE AUDITOR GENERAL FOR THE YEAR ENDED 30 TH JUNE 2011 VOLUME 1 PERFORMANCE REPORT i

2 Table of Contents List of Tables... iii List of Acronyms... iv Executive Summary... ix 1.0 Introduction Performance of the Audit Function Major Audit Focus during the year Performance in Financial and Value for Money Audits Audit of Central Government Entities Audit of Statutory Corporations Audit of Local Authorities Value for Money and Specialized Audits Support to Oversight Committees of Parliament Information Technology and Audit Development Audit Quality Control and Quality Assurance Performance of the Corporate Services Function Human Resource Management and Development Human Resource Policies Staff Recruitment and Promotion Staff Trainings and Development i

3 3.1.4 International Trainings Restructuring of the Office De-linkage from Public Service OAG Health Policies Administration, Communication and Judicial Matters Records and Information Management Communication and Public Relations Legal Representation Financial Management and Internal Audit International Relations Registrations of Accountants Appendix I: Unaudited Financial Statements of OAG for the year ended 30 th June Appendix II: Regional Branch Offices ii

4 List of Tables Table 1: Major Audit Focus in the FY 2010/ Table 2: Status of Audit Performance for the FY 2010/ Table 3: Value of grants of credits issued during the FY 2010/ Table 4: Trends in the number of Professional Accountants since 2004/ Table 5: Budget, Actual Releases and MTEF Projections (Billions) iii

5 List of Acronyms ACCA ADB AFROSAI AFROSAI-E AG BFP Bn CAATS CHOGM COSASE CPA DFID DPAC FINMAP GAO GoU HLGs HRMD ICGFM ICT IDI IFMS INTOSAI ISSAI IT JICA KCC Association of Chartered Certified Accountants African Development Bank African Organization of Supreme Audit Institution Sub-Regional Organization of English Speaking AFROSAI Auditor General Budget Framework Paper Billion Computer Assisted Audit Techniques Common Wealth Heads of Government Meeting Committee on Commissions, Statutory Authorities and State Enterprises Certified Public Accountant Department for International Development District Public Accounts Committee Financial Management and Accountability Programme United States Government Accountability Office Government of Uganda Higher Local Governments Human Resource Management and Development International Consortium on Government Financial Management Information Communications Technology INTOSAI Development Initiative Integrated Financial Management System International Organizational of Supreme Audit Institutions International Standards of Supreme Audit Institutions Information Technology Japan International Cooperation Agency Kampala City Council iv

6 KCCA LGMSD LGAC LLGs MAAG MCC MDA MTEF NAA NAADS OAG PAC PFAA PPDA ROM RRHs SAI Shs VFM Kampala Capital City Authority Local Government Management Service Delivery Programme Local Government Accounts Committee Lower Local Governments Multilateral Audit Advisory Group Millennium Challenge Cooperation Ministries, Departments and Agencies Medium Term Expenditure Framework National Audit Act National Agricultural Advisory Services Office of the Auditor General Public Accounts Committee Public Finance and Accountability Act Public Procurement and Disposal Authority Results Oriented Management Regional Referral Hospitals Supreme Audit Institution Shillings Value for Money v

7 Office of the Auditor General Vision, Mission and the Core Values Vision To be an effective and efficient Supreme Audit Institution (SAI) in promoting effective public accountability. Mission To audit and report to Parliament and thereby make an effective contribution to improving public accountability and value for money spent. Core Values The Auditor General and the staff of the Office of the Auditor General in executing their responsibilities are committed to live by the office s core values of: Integrity: Being upright and honest Objectivity: To display impartiality and professional judgment Professional competence: To act with diligence, proficiency and team spirit. vi

8 Foreword by the Auditor General In accordance with my mandate as stipulated under Article 163 of the Constitution of the Republic of Uganda and as elaborated on by the National Audit Act, 2008, it is my pleasure to present to you the Annual Audit Report on the public accounts of Uganda for the Financial Year 2010/2011 in five volumes. The first volume of the report is about the general performance of the office as a whole, while the second, third, fourth and fifth volumes are about the performance of the external audit function. The executive summary which follows this foreword outlines the content of the five volumes which constitute my annual report for the year 2010/11. In the audit of the accounts of the FY 2010/11, the office adopted a sector approach in order to improve on the quality and content of the audit reports. To achieve this, the former directorates of Central Government and Statutory Corporations were collapsed and reconstituted into the directorates of Central Government One and Central Government Two. The central government directorates cover the audit of specific sectors as defined by Government in the National Development Plan The office planned to carry out a total of 1,888 Audits which included 1,872 financial, 12 Value for Money and 4 forensic audits. As at 31 st March 2012, a total of 1,292 audits were completed and reported on, while 591 were in progress. In addition, all the 1,059 sub county audit backlogs relating to FY 2009/10 were completed. Under Value for Money and Specialized Audits, the office audited and reported on 12 audits as detailed in Volume 5 of my report. The division of Corporate Services that supports and facilitates the performance of the audit function successfully managed the budget process for the financial year. It prepared and submitted for approval to Parliament a total budget of Shs 38.76Bn vii

9 including a funding gap of Shs 5.25Bn. Parliament subsequently approved a total budget of Shs Bn for the financial year 2011/12. I would like to acknowledge the support from the Parliament of the Republic of Uganda and its oversight committees, the Executive and the Development Partners who have enabled me to successfully execute my statutory mandate. My sincere gratitude is also extended to my staff for positively embracing the ongoing developments in the office and for their efforts towards the achievements realized during the year. John F.S. Muwanga AUDITOR GENERAL viii

10 Executive Summary Under Article 163(3) of the Constitution of the Republic of Uganda and Section 13 of the National Audit Act 2008, the Auditor General is mandated to audit and report to Parliament, on the public accounts of Uganda and of all public offices, including the courts, the central and Local Government Administrations, Universities and public institutions of like nature, and any public corporation or other bodies or organizations established by an Act of Parliament annually, a report of the accounts audited for the financial year immediately preceding. It is in line with the above mandate that this report is herewith provided in five volumes: Volume 1 Volume 2 Volume 3 Volume 4 Volume 5 - Annual Performance Report of the Office of the Auditor General; - Audit Report on Central Government Ministries, Departments and Agencies; - Audit Report on Local Authorities including Regional Referral Hospitals; - Audit Report on State Enterprises, Commissions and Statutory Corporations; - Value for Money and Specialized Audit Reports. This Volume 1 of the report is presented in 5 sections as follows; Section 1, covers a brief introduction of OAG, Mandate, Functions of the Auditor General, Corporate Plan implementation, Current Macro Structure and Recent Developments. Section 2, presents a summary of the performance of the audit function as defined under Article 163 of the Constitution of the Republic of Uganda and Section 13 of the National Audit Act ix

11 Section 3, presents a performance review of the Corporate Services function in the following areas: Human Resources Management and Development, Administration, Communication and Judicial matters, Financial Management and Internal Audit. Section 4, provides details of the performance of the office in international relations and its obligations. Section 5, presents a review of the performance of the Auditor General as Registrar of Accountants as mandated under Section 18 of the Accountants Act, x

12 1.0 Introduction 1.1 Brief History External audit function in Uganda dates back to 1920s when Uganda as a protectorate had its accounts audited by the Colonial Audit Office in London. It evolved overtime from being headed by an Auditor in 1929 to an Auditor General appointed in 1952 in Kampala. In 1962, the office started expanding progressively by opening regional offices. To-date, a total of nine regional offices are operational in Gulu, Arua, Mbale, Soroti, Jinja, Masaka, Mbarara, Fort Portal and Kampala. Plans are underway to open additional regional offices to meet the ever increasing audit entities in Local Governments. 1.2 Mandate and functions of the Auditor General Article 163 (3) of the Constitution and as amplified by Section 13(1) and Section 18 of the National Audit Act 2008, the Auditor General is required to audit and report to Parliament on the Public Accounts of Uganda and of all Public offices including the Courts, the Central and Local Government Administrations, Universities and Public Institutions of like nature, and any public Corporations or other bodies established by an Act of Parliament and report to Parliament. Article 163 (3) (b) requires the Auditor General to conduct Financial and Value for Money audits in respect of any project involving public funds. 1.3 Corporate Plan Implementation The Office of the Auditor General has been implementing a Five Year Corporate Plan for the period which has since been updated to cover the period The Strategic Objectives of OAG as stated in the above Corporate Plan have been: To secure the financial and operational independence of the Auditor General 1

13 To improve the quality of both the OAG s budget preparation and Monitoring processes and management information systems. To create an environment that enables the OAG to operate efficiently and recruit, retain and motivate suitable staff. To improve internal and external communications to raise the profile of the OAG with staff and key stakeholders To improve the quality of audit work by improving financial and value for money audits and developing and implementing effective quality assurance arrangements To 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. The Corporate Plan provided policy direction in the preparation of the Annual Operational Plans of the financial years since 2006/07. The assessment of performance regarding achievements of the objectives runs through this performance report of the office as contained in this Volume 1 of the OAG report. The implementation of the OAG Corporate Plan expired on 30 th June During the same year, with support from the Financial Management and accountability Program (FINMAP) under the Ministry of Finance Planning and Economic Development, the office procured the services of the National Audit Office of the UK to assist in the development of the next Corporate Plan for the period At the time of reporting the new Corporate Plan was in place. 1.4 Current Macro Structure of the Office The Office of the Auditor General (OAG) underwent a restructuring process which was aimed at coming up with an appropriate structure which matches with the Audit Workload. The new Strucure with a total establishment of 481 positions was approved in the FY 2010/11. According to the new structure, the office has 5 Directorates, 4 2

14 Departments and 3 Units. The Office is headed by the Auditor General (AG) who is assisted by the Assistant Auditor General (AAG) and Chief Operating Officer. The Assistant Auditor General who heads the external audit function is assisted by 4 Directors of Audit. The Chief Operating Officer who heads the Corporate Services function is assisted by the Director Corporate Services. The Macro-Structure of the OAG is as depicted below:- 3

15 1.5 Recent Developments Automation of Audit Processes The office has extended the use of ICT beyond facilitating internal and external communications to automation of audit processes. The use of computerized audit tools has taken root in financial audit directorates and currently 75% of the audit staff are using teammate audit soft ware Adoption of Sector Approach to Audit The Office adopted a sector wide approach to auditing with effect from the FY 2010/11. This methodology aligns the audit process to the Government sector wide planning and budgeting approach. This has contributed to knowledge accumulation and audit efficiency Quality Assurance In accordance with International Standards of Supreme Audit Institutions (ISSAI) 40, all Supreme Audit Institutions are required to establish and maintain an appropriate quality control system which covers all their work. The new structure provided for a Quality Assurance unit and it was instituted during the year Corporate Services The Corporate Services function that is responsible for supporting the external audit function was strengthened by the recruitment of a Chief Operating Officer who is responsible for ensuring that business operations within the office are efficient and effective and that resources are properly managed Increased Audit Scope The audit Scope has of recent increased to cover new Audits like, Energy, Oil and Gas, Environment, Public Works, post primary schools and newly created Local Government Councils. 4

16 2.0 Performance of the Audit Function 2.1 Major Audit Focus during the year In determining the major focus for the FY 2010/11 audits, the office based its approach on the following: i. The National Budget Estimates for the FY 2010/11; ii. Sector Priorities for the FY 2010/11; iii. Major Findings in the Audit Report for the FY 2009/10. iv. The OAG Corporate Plan 2006/ /2011; The two strategic objectives considered in the OAG Corporate Plan 2006/ /2011 were: i) To promote increased accountability, probity and transparency in the management of public funds and resources by producing reports that add value; ii) To improve quality of audit work by improving financial and Value for Money audits and having effective quality assurance arrangements. In the FY 2010/11, the Accountability sector of which OAG is a member committed itself to strengthening the adherence to compliance policies, service delivery standards and regulations; promotion of the culture of public demand for accountability and value for money as well as intensifying the fight against corruption. Hence, the major focus in the Audits of the FY 2010/11 was as summarized in table 1 below: 5

17 Table 1: Major Audit Focus in the FY 2010/11 Audits Local Authorities Audits Statutory Corporations Audits Central Government Audits Value for money and specialized audits Major focus Service delivery with focus on Universal Primary Education, Health services and roads Energy sector Public works, budget performance and consolidated financial statements Roads, electricity, agriculture, maternal health, tourism, communication services, environment, police and lands. 2.2 Performance in Financial and Value for Money Audits In the Audit Period, the Auditor General planned to conduct a total of 1,872 Financial/regularity audits, 12 value for money and 4 forensic audits. However, it completed a total of 2,339 financial audits including a backlog of 1,059 sub county audits and 12 Performance audits respectively. The details are provided in table 2 below. Table 2: Status of Audit Performance for the FY 2010/11 Directorate Entities Planned number of audit entities Audits Completed Percentage Audits in progress Central MDAs % 1 Government Projects % 20 Special Audits % - Local Government HLGs % LLGs 1,183 1, % 550 Regional % Hospitals Projects % Special Audits % 13 State Corporations State Corporations % 7 Special Audits % - Total 1,872 2, % 591 Value for Money VFM Audits % - Forensic Audits 4 - Total 1,888 2, % 591 6

18 Grants of Credit Issued Article 154 (3) of the Constitution of the Republic of Uganda requires the Auditor General to approve withdrawals of all monies from the consolidated funds. Accordingly, during the year 2010/2011, the Auditor General authorized withdrawals from the consolidated funds amounting to Shs. 9,821,544,153,083. The details are in the table 3 below: Table 3: Value of grants of credits issued during the FY 2010/11 Expenditure No. of Warrants Amount (Shs) Issued Recurrent 25 4,546,120,650,371 Development 17 3,836,396,733,773 Statutory 10 1,439,026,768,939 Total 52 9,821,544,153, Audit of Central Government Entities This audit covered 92 MDAs and 42 projects and below are the major findings. Summary of Major Findings Implementation of the National budget during the year was not properly aligned with the National Development Plan (NDP). Comparison of NDP Sectoral allocations with the approved budget allocation showed huge variances at both budget and release level. Physical performance fell short of the planned outputs in many sectors as a result of budget cuts undertaken during the year. This impairs the credibility of the budget process. Shs.10billion was released by MOFPED to Microfinance Support Centre Ltd in 2011 to cater for the Presidential initiative for market vendors and small business operators. There were no procedures in place to ensure proper accountability and management of the funds especially with respect to Kampala based SACCOS. 7

19 Between March 2006 and May 2011, UMEME offset shs billion against lease rentals payable to UEDCL in respect of outstanding electricity bills for government ministries, however, there is no record showing the various ministry accounts credited. number of roads because of failure by government to meet the commitments made during the year. This will attract extra claims for interest by the contractors resulting in nugatory expenditure. The Ministry of Local Government spent a total of US$4,298,636 to open a Letter of Credit (LC) for the supply of Ministry of works made irregular payments amounting to Shs.4, 473,003,963 to contractors. 70,000 bicycles for the chairpersons of parish and village councils. 40% of the LC representing US$1,719,454 was fraudulently paid to the supplier since the bicycles had not been delivered. The fraudulently paid funds had not been recovered by the time of audit. Shs.1, 214,590,305 to four contractors was nugatory since it arose from interest accrued on the delayed payments for CHOGM 2007 infrastructure works maintenance projects. Shs.10, 501,924,831were irregular payments made to the contractor for Kabale-Kisoro-Bunagana road as compensation for change of prices of basic materials and labour under the Price Adjustment (VOP) clause in the contract. Shs.837, 386,254 and Euros A case of loss (embezzlement) of shs.521, 688,900 in a ministry that occurred in 2007/2008 and involved a number of employees in the Ministries of Works & Transport, and Finance, Planning and Economic Development was dismissed by the magistrate 255,124 were overpaid to various road contractors resulting from inaccurate measurements. because the State failed to present Police file in court throughout the period the case was mentioned inspite of overwhelming evidence available. By year end, UNRA had not paid a total of Shs.146, 264,347,800to various contractors and consultants on a Government entered into a memorandum of Understanding with an unknown foreign firm for the sale of 8

20 Posta Uganda Ltd without the approval of the Attorney General. The matter needs further investigation to establish the circumstances and the implications to government. Agreement for seven loans equivalent to shs.1.1 trillion were signed before their approval by Parliament contrary to Article 159 of the Constitution of the Republic of Uganda. Government has not yet put in place a policy or law to regulate and guide compensations, particularly those relating to war yet Ministry of Justice is processing war debt compensation claims for Northern Uganda (Acholi, Lango, and Teso) in spite of similar verifications undertaken earlier by the Bigombe Team and another by the Ministry of Defence. A total of shs.906, 568,335 was granted as incentives for hotel construction when the facility had ended in December shs.150,284,885,491 had been paid to the supplier for implementation of National Security information Systems (National Identity Card)project yet by March 2012, only 400 cards had been personalized. No funding of the operational costs estimated at shs.72, 271,834,000 had been released crippling the overall implementation of the project. This project funded through borrowing from BOU has attracted interest costs of over shs.3, 227,538,712. Since 2006 government has budgeted shs.92 billion annually for subsidies for electricity despite the fact that subsidies have been much higher. This has created a shortfall of shs.275 billion since 2006 to date. UMEME energy loss broken down into technical and commercial losses is not known yet over the years, UMEME reported that its actual losses at 30% which is higher than the target loss of 28%. Audit undertaken of Production Sharing Agreements have ascertained a total of US$.492, 544,876 as recoverable expenses to be borne by government upon the commencement of oil production. The Accountant General has not yet prescribed the accounting treatment of such expenses in the GoU financial statements. 9

21 Challenges The major challenges encountered were; The organizational reforms (i.e) restructuring, recruitment and reorganization impacted on the implementation of the agreed operational plan. Staff had to adapt to the new sector based approach to audits. In addition new staff had to adopt to the use of electronic working papers. Due to constraints in funding, key areas of focus like public works had to be undertaken on a sample basis. Out of 225 contracts implemented by UNRA the Directorate was able to audit 25 with the funds that were allocated for that purpose 2.4 Audit of Statutory Corporations This audit covered 63 Statutory Corporations and 40 projects and below are the major findings. Summary of Major Findings Based on the above scope and objectives, below is a summary of the Major finding for the year: During the year, Bank of Uganda issued letters of comfort to various commercial banks in favour of borrowings by HABA Group amounting to shs.153 billion. As at 30th June 2011, the Bank had paid shs.82 billion to two of the commercial banks following nonpayment of HABA Group s borrowings as agreed with the commercial banks. Other commitments amounting to shs.71 billion for which letters of comfort were issued were due to mature after 30th June The letters of comfort were issued on the request of the Minister of Finance, Planning and Economic Development. Parliamentary approval was not obtained. The Bank has recognized a financial loss of shs.153 billion in the financial statements as it follows up this matter with Government. As at 30th June 2011, the Bank of Uganda capital reserves after excluding accumulated unrealised foreign exchange gains (translation 10

22 reserves) was a net deficit of shs.168 billion. This indicates that the capital of the Bank is eroded and there is need for urgent corrective action. respect of human resource management, Electricity Sector planning and tariff setting. This has affected the effectiveness of ERA. Management of Uganda Broadcasting Corporation disposed acres out of 59.1 acres of UBC land located at Bugolobi in Kampala, between 2007 and However, the disposal of this land was characterized by a number of irregularities. These included sale of UBC core assets contrary to the established policies, disposal of the land without the prior approval of the Minister, sale of the land at less the market valuation, breach of contracts of sale by the purchasers and undue influence exerted by the Minister on the Board in matters relating to land disposal. The Corporation Secretary of the Electricity Regularity Authority (ERA) did not seek the approval of the Board before issuing a letter to a thermal company amending the terms of the license relating to the power plant fuel consumption rates, which action resulted into a loss of US$4,078,329 to government. Differences in the interpretation of some of the provisions of the Electricity Act 1999 by the Electricity Regulation Authority (ERA) and the Ministry of Energy and Mineral Development (MEMD) has resulted in the duplication of some of the key functions of the Sector regulation in The duplication of roles resulted in ERA seeking a legal opinion from the Solicitor General whose response also appears to be at variance with the provisions of the Act. Four parastatal bodies, three of them wholly Government owned proposed dividends totalling Shs.4,098,059,000 during the year under review. However, the dividends had not been remitted to the Government Consolidated Fund Account by the time of writing this report. Government entered into a consent judgment to settle Pension, Gratuity and other costs to former employees of UEB totalling Shs.47,972,421,017. Out of this amount, a total of Shs.17,953,672,247 in respect of Interest (Shs.16,144,172,247) and damages (Shs.1,109,500,000) could have been avoided had the provisions of Section 129 of the Electricity Act been complied with by the Privatization, Enterprise Reform and Divestiture Unit (PU). Contractual arrangements between UEDCL and UMEME allow UMEME to set off from lease rentals payable to UEDCL amounts outstanding in respect of GOU MDA bills. A sum of Shs.27, 911,559,659 had been offset against lease rentals between 15th 11

23 March 2006 to 15th May 2011, however, because individual MDAs are not informed of this arrangement, they have continued making full payment of their Electricity bills. There is a risk of double payment of these bills by MDAs. A private law firm was paid Shs.5.4 billion by Civil Aviation Authority (CAA) as debt collection fees having purportedly assisted CAA collect a debt of shs.54 billion owed by Government. This expenditure was unnecessary, could have been avoided given that Government had already committed itself to pay it. I have recommended that the matter should be investigated further to establish the circumstances under which the transaction was handled and any loss arising should be recovered and action taken against those response. Ministry of Finance, Planning and Economic Development through the Privatization Unit paid an amount of Shs.4.7bn to a local firm as an out of Court settlement after directing Kilembe Mines Ltd not to pursue a court case in a matter that KML had been assured by their lawyers that they had a Good Case. This amount, which KML was directed to recognize as a loan in its books at an interest rate of 9% was not approved by KML Board of Directors. As at 31st December, 2010 the Loan had attracted accumulated interest of shs.1,269, 000,000. Challenges The major challenges encountered were; Delayed presentation of draft accounts for audit by some entities. Failure by some entities to provide timely responses to management letters issued to them. Delayed start of the audits due to unavailability of documents withdrawn from some entities by other investigative agencies e.g. National Theatre, Cancer Institute, etc. 12

24 2.5 Audit of Local Authorities This audit covered 2,093 Local Authorities including 5 projects and below are the major findings. Summary of Major Findings Basing on the above scope and objective, below is a summary of the major findings for the year. Accounts for 45% of HLGs and 45% of LLGs were unqualified;51% of HLGs and 42% of were qualified while 4% for HLGs and 13% for LLGs had disclaimer opinions. Revenue performance of 87 councils revealed that out of the budgeted sum of Shs. 38,186,314,821 only Shs. 25,824,525,226 was realized resulting into a short fall of Shs. 12,361,789,595 which is equivalent to 32.4% under collection. With regard to the sampled Lower Local Governments (Sub Counties) an amount of Shs. 8,489,933,773 remained uncollected during the period. A review of Various Council records revealed losses of funds amounting to Shs 1,039,878,751. The losses were in respect of misappropriated revenue and unauthorized withdrawal of funds from bank accounts. and Doubtful expenditure remained outstanding contrary to the regulations. Shs. 34,034,740,313 in Higher Local Governments were balances in cash unspent by year end. This represents an increase of 17% from the previous year. In addition Shs. 2,646,728,346 remained unspent in the sampled Lower Local Governments. A number of higher and lower local governments accumulated outstanding commitments amounting to Shs. 9,629,524,558 and Shs 271,983,680 beyond their approved budget estimates respectively. A number of Local Governments procured items and services worth Shs. 24,346,888,735 without following Public Procurement Regulations and guidelines. Shs. 17,909,576,428 in respect of HLGs comprising of administrative advances, incompletely vouched expenditure, un-vouched expenditure Shs. 12,306,938,816 and Shs. 1,322,057,657 was spent by higher and sampled lower local governments respectively in excess of provisions 13

25 authorized in the approved estimates contrary to Financial Regulations. The previous year s unauthorized excess expenditure for higher local governments amounted to Shs. 6,944,000,005 implying an increment of 77% in the current year. A sum of Shs. 2,334,135,412 in respect of conditional grants was diverted by some Local Governments to activities not prescribed in the conditions and guidelines of the grants in question. This represents an increase of 1.3 billion from the previous year. Expenditure amounting to Shs 1,434,444,106 in some council was utilized for activities that were not beneficial to the Councils and hence were considered wasteful. This represents an increase of Shs.1.2 billion from the previous year. latrine facilities; Crowded class rooms, a ratio of over 1:80 compared to the recommended 1:53;Delayed distribution of UPE funds; Poor infrastructure such as old dilapidated classrooms and toilets. Inspection of Referral Hospitals, District hospitals and Health centers revealed a number of weaknesses that hinder effective health services which included: Severe staffing shortages; inadequate transport facilities; Lack of medical equipment; inadequate delivery of medical supplies; Expiry of drugs; Inadequate patients wards; Dilapidated buildings; Incomplete building structures; Limited staff accommodation; Poor record keeping and in some cases non- availability of records; Minimal support supervision; Inadequate power supply; Lack of drug store keepers With reference to Primary Leaving Examinations for the academic year 2010 an average pass rate of 84% and a failure rate of 16% were observed. My inspection of schools revealed the following as the major shortcomings that negatively affect service delivery in the education sector: Lack of teacher s accommodation; Lack of lunch for pupils and teachers; High Teacher to pupil ratio of 1:83 compared to the recommended 1:53; Inadequate Review of the utilization of Uganda Road Funds by 10 entities revealed that out of disbursements of Shs. 14,097,342,554 only Shs.2,600,728,856 was utilized leaving Shs. 11,496,613,698 idle. It was noted that various entities lacked land titles for public land occupied by schools, Health Centers and administrative headquarters. There is a risk of encroachment and loss of the properties. 14

26 Challenges The major audit challenges encountered were; Increasing audit population; Shortages in staffing levels though it Delayed submission of financial has been solved. statements and responses to audit queries by Accounting Officer; 2.6 Value for Money and Specialized Audits Value for Money (VFM) audit examines the economy, efficiency, effectiveness and environmental effects of government projects and operations. The audits endeavor to evaluate if activities, programmes or projects involving public funds in audited organizations have been managed and conducted with due regard to economy, efficiency and effectiveness. During the FY 2010/2011, the VFM audits were conducted in accordance with the International Organizations of Supreme Audit Institutions (INTOSAI) standards. During the year 2010/11, the Directorate of Value for money and specialized audits carried out 12 studies and completed all of them. The detailed findings and recommendations are in Volume 5 of the Auditor General s report and in the individual audit reports. The individual studies were as follows: 1. Regulation and Provision of Communication Services by Uganda Communications Commission (UCC); 2. Production of Deed Plans and Maps by the Department of Surveys and Mapping in the Ministry of Lands, Housing and Urban Development; 3. Rehabilitation and Maintenance of Feeder Roads in Uganda: A case study of Hoima, Kumi, Masindi, Mukono and Wakiso Districts; 15

27 4. Conservation of Wildlife by the Uganda Wildlife Authority; 5. Management of Accommodation by the Uganda Police Force; 6. Implementation of Bujagali Interconnection Project by Uganda Electricity Transmission Company Limited (BIP); 7. Management of Fisheries on Lake Victoria; 8. Management of National Agricultural and Advisory Services (NAADS): A case study of Kabarole, Kasese, Lira, Manafwa, Mubende and Tororo Districts; 9. Protection of Central Forest Reserves in Uganda Implemented by National Forest Authority (NFA); 10. Management of the Presidential Initiative on Banana Industrial Development Project (PIBID); 11. Provision of Maternal Health Services by the Ministry of Health; 12. Management of Academic Programmes at Makerere University; Challenges The major challenges encountered were; Delayed consideration of VFM audit reports by Parliament 16

28 2.7 Support to Oversight Committees of Parliament In accordance with Article 153 of the Constitution of the Republic of Uganda, Parliament through its oversight Committees, performs the oversight function over public funds and requires the Executive to account for the public resources entrusted to them for provision of the public services. The Accountability Committees include: the Public Accounts Committee (PAC) for Central Government, the Local Government Accounts Committee (LGAC) for Local Governments and the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE). During the year 2010/2011, the Auditor General actively provided support to the Committees during discussions. 2.8 Information Technology and Audit Development In the OAG Corporate Plan , the Office of the Auditor General focused on creation of an appropriate IT governance structure, development of IT infrastructure and staff capacity to facilitate the adoption and rollout of automated audit tools for improved audit business processes. The office also acquired software licenses for teammate and IDEA data analysis soft ware and trained staff in the areas of IT audit, network data back up and data management and structured query language (SQL). 2.9 Audit Quality Control and Quality Assurance Besides the internal audit quality control and assurance through regular reviews by supervisors, the office is also subjected to external quality review carried out after every three years by the African Organization of Supreme Audit Institutions of the English Speaking Countries (AFROSAI-E), Office of the Auditor General was carrying out. 17

29 During the year, AFROSAI carried out a quality control and assurance review on the office by a high level team of eight reviewers drawn from five SAIs of Norway, Sweden, South Africa, Kenya and Tanzania with representation from AFROSAI-E secretariat. AFROSAI-E team poses for a group photo with the Assistant Auditor General Mrs. Keto N. Kayemba (centre), the Chief Operating Officer (2 nd row first from right) and the Director / Corporate Support Executive (first from right) 18

30 3.0 Performance of the Corporate Services Function The Corporate services function supports the external audit function by managing financial and human resources; internal and external communications; other office operations and administrative issues. The subsequent sections explain the achievements during the year. 3.1 Human Resource Management and Development The office of the Auditor General continued with the implementation of its strategic objective of creating an environment that enables it to operate efficiently, Recruit, Retain and Motivate suitable staff. During the year, the Human Resource Department managed the restructuring process, implemented the new structure, and managed staff performance, capacity building activities as well as staff welfare. OAG Staff during the Annual Staff meeting held at Serena Hotel 19

31 3.1.1 Human Resource Policies The final OAG staff structure, the National Audit (Terms and Conditions of staff) Regulation 2011 were approved by Parliament and is now operational Staff Recruitment and Promotion The new staff structure with a total establishment of 481 provides for a total of 324 Audit staff and 157 non audit staff. The structure is being implemented in phases due to financial and Office Accommodation Constraints. During the Audit year 2011/12, 68 Officers were recruited and 69 promoted. The 68 officers recruited included 55 Audit and 13 non Audit staff. At the time of reporting the staffing level was at 88% of which 74% are audit while 13% are non audit staff. Recently recruited OAG staff taking oath of secrecy following a pre-induction ceremony held in the Ministry of Finance Planning and Economic Development Conference room. 20

32 3.1.3 Staff Trainings and Development The office sponsored staff to pursue professional accounting and other qualifications. A total of nine (9) officers completed various professional courses while 20 staff are yet to complete. The number of professionally qualified staff increased from 52 in 2005 to 98 in 2010/11 as indicated below:- Table 4: Trends in the number of Professional Accountants since 2004/2005 Year Number at the beginning of the year Increment* (Net Adjustment) Number at end of year 2004/ / / / / / / Note: The increment (Net adjustment) figure caters for staff who trained and qualified as well as those who joined OAG with full professional qualifications. In regards to other professions, at the time of reporting one staff had completed a Masters Degree in Business Administration and total of 9 staff members were pursuing various courses leading to the award of Masters, Post graduate Diplomas, Diplomas and certificates. In addition the office supported staff for skills development trainings. During the year, staffs were trained in the following areas: procurement audit; forensic audit, IDEA, Records Retention and Disposal, Advanced auditing, taxation auditing and treasury management. 21

33 3.1.4 International Trainings As one of the Capacity Building Strategy, Office of the Auditor General facilitates its staff for attachment programs to other SAIs and relevant organizations abroad to learn, share information and experiences. During the year of reporting: a team of 8 Officers were trained in India in the areas of Performance Audit, IT Audit, Public Sector Audit and Regularity Audit. The Internal Audit Unit staff attended an international Annual Conference in Tanzania. Other officers from the office also attended the East and Southern African Association of Accountant Generals Conference, in Swaziland. Two staff attended training in Value for Money performance audit in Sierra Leone. Two staff in Information security from Nairobi and 2 staff trained in IT management from National Audit Office of UK Staff Performance Appraisal The Office of the Auditor General is currently using the scalar rating method in appraising staff performance. The office conducted appraisals for 358 staff members. Initiatives were undertaken to adopt the Result Oriented Management but it could not be fully implemented due to inadequate manpower in the Human Resource Department to provide continued support and monitoring of staff performance, especially in the regional Branch Offices. However, as a result of the implementation of the new structure, the Staffing level in the Human Resource Department increased from 4 staff in the year 2010/11 to 6 in the audit year 2011/12. The two staff recruited included a Manager (HRMD) and a Senior Personnel Officer Restructuring of the Office To achieve objective 3 in the Corporate Plan 2006/ /2011 which is; to create an environment that enables the office to operate efficiently, recruit, retain and motivate suitable staff, it was envisaged that the OAG structure needed to be reviewed. During the year 2009/2010 the Office outsourced the services of the National Audit Office of the 22

34 UK to conduct the restructuring exercise. The draft OAG restructuring report containing findings and recommendations was submitted to Parliament for approval and subsequently approved. The implementation of the approved structure commenced in the year 2010/11 and is in progress The structure is being implemented in phases due to financial and office accommodation constraints. The new structure provided for the Directorate of Corporate Services, Department of Technical Support Services under which the Quality Assurance Section falls and the IT Department. During the year, a Chief Operating Officer, Director Corporate Services and Manager IT were recruited. The Value for Money Audit Department was also elevated to a Directorate in charge of Value for Money and Specialized Audits and a Director Value for Money was recruited De-linkage from Public Service Section 9 of the National Audit Act 2008 empowers the Auditor General to appoint and manage staff of the office. However, to fully operationalise these provisions, there was need to come up with OAG specific staff Rules and Regulations (TCS) to facilitate the de-linkage of OAG staff from the Main stream Public Service. In the Audit year 2010/11, The National Audit (Terms and Conditions) Regulations 2011 which operationalises the above provisions were approved and appointments for all staff from the main stream public service were regularized. At the time of reporting, the draft Human Resource Manual was under review and it is expected to be approved by end of the year OAG Health Policies The office of the Auditor General Continued with the implementation of the HIV/AIDS policy under which 27 staff and their spouses who live with HIV/AIDS as well as those with life threatening illnesses like hypertension, cancer and diabetes are supported to ensure that they live a useful life both to the nation in general and OAG in particular. In addition, a health care scheme which covers the employee, their spouses and two biological children was introduced in the year

35 3.2 Administration, Communication and Judicial Matters Records and Information Management The OAG Records Information Management (RIM) Unit comprises of the Central Registry at the Headquarters where all current Human Resource Management and administrative records are controlled, Records centre (Archives) where all semi-current and archival records are managed, Resource Centre where all Library and knowledge resource material are managed. There is also a Branch Registry at every Regional Audit Branch Office managed by 9 Administrative Assistants. Office of the Auditor General, like any other organization, needs records in the conduct of current business, making decisions and taking actions. Where records are not properly managed, the ability of government to deliver its programs and services while meeting its accountability requirements is compromised. Poorly managed information can increase the risk of OAG s failure to make an effective contribution to improving public accountability and value for money spent hence the need for effective means of managing information. During the Audit year 2011/12, the Resource Centre was stocked with 144 publications including journals and various reports; the office boosted the storage capacity by reequipping every department with shelves, cabinets, desktops and acid-free file boxes and a refresher training in Records retention and disposal for Administrative Assistants was carried out. However, the office continued to grapple with proliferation of paper documents in very limited and expensively rented office space. Priority shall thus be apportioned to electronic archiving and establishing an e-resource Centre for enhanced knowledge management. As a step to the achievement of the above, a Senior Knowledge management Officer was recruited and the resource center equipped with 8 Desk Top Computers and a projector. 24

36 In the OAG Corporate Plan , the office has committed itself to strategically re organize information both manually and electronically. The knowledge and information management function and staff will be rationalized under the Technical Support Services Department. A robust records storage and retrieval system is to be established with well developed mechanisms for automated knowledge management and skills transfer with aim to benefit both internal and external stakeholders Information Communications Technology Development The application of ICT in the office of the Auditor General has been extended beyond facilitating internal and external communication to automation of audit processes; modernization of training methods; facilitation of knowledge sharing and management of Records and Information. In the audit year 2009/2010, the OAG web site and the intranet were launched. The intranet has continued to be an important communications tool in the Office with regular updates on office activities on the net. In the audit year 2011/12, the OAG web site was upgraded to improve on its user interface and the quality of the content. At the time of reporting all OAG regional offices except Jinja and Mbale were connected to the Wide Area Network and staff members have access to the intranet. The office used to experience net work failures as the staffing levels increased due to limitations in the band width and load shedding. During the year, band width for the head Office and Regional Offices was upgraded from 1MB- 7MB and 128KB to 1 MB respectively. In a bid to address the frequent load shedding which affect the operations of the Regional Offices, power back up batteries were installed at Gulu, Soroti, Masaka and Fort Portal Regional Offices. With support from JICA, the Office developed its IT Strategic Plan for the period which covers both IT audit an ICT infrastructure development within the Office. 25

37 However, the efficient operation of OAG-ICT was hampered by several challenges. The office has not been able to fully develop ICT infrastructure in the Rented Premises due to the high installations costs involved. In addition due to budget constraints, the office was not able to connect the newly commissioned Regional Offices in Jinja and Mbale to WAN. Maintaining optimum link speed in our branches and Headquarters office provided a challenge in the IT operations of the Office. Embassy house and Lourdel road were seriously affected so were Soroti and Arua Offices. The measure to mitigate this challenge include upgrading the Data Centre to provide better services Communication and Public Relations The communications unit which falls under the technical support department is charged with the responsibility of formulation, implementation, monitoring and review of the internal and external OAG communication strategies. Through the execution of the above stated functions the unit has assisted the office in raising its profile amongst the stakeholders. Following the recruitment of the Senior Public Relations Officer last year, internal communication has been boosted through the bi-monthly flyers which are accessed by staff through the intranet. With the upgrade of the intranet, staff will now be able to interact and chat by blogging. The suggestion box and the notice board were also included on the intranet. A draft Communications Policy was developed and at the time of reporting, it was under review. In addition, the Senior Public Relations Officer maintained a close link with the media to ensure accuracy and consistence of the information communicated to the public. The office undertook various social initiatives to support social causes which contribute to community welfare. These initiatives were aimed at improving the corporate image of the office. 26

38 In the year 2010/11, the office participated in the MTN marathon which is an annual sports event hosted by MTN to mobilize resources to support various community health programs like maternal health, water and sanitation and to assist the disadvantaged persons in the war ravaged areas of Northern Uganda. Through the OAG Women s Forum the office contributed mattresses and baby cots to Nakaseke Hospital. Through employee s contributions, the office donated Shs. 2.77m for clinical beds to Lungujja Community Health Caring Organization (LUCOHECO) which provides health care and support to the vulnerable people of Lubaga Division especially those infected and affected by HIV/AIDS, orphans, widows, and the elderly. In addition, the office contributed Shs 1m towards Kyanja Community Health Center to help in the fight against infant mortality. Members of the OAG Women s Forum led by the Assistant Auditor General Mrs. Keto N Kayemba (center) at Nakaseke Hospital handing over baby cots and mattresses Legal Representation The office has a Legal Unit/Chambers that is fully registered and operational with two (2) staff members. This Unit is fully responsible for providing legal guidance and also 27

39 over seeing all legal issues that may arise against the office. In addition the Unit has effectively represented the office as far as legal matters are concerned. During the year, the unit created a mini-library that includes; Laws of Uganda and subsidiary legislation and, Publications from renowned legal scholars. Furthermore, the National Audit Regulations 2011 were enforced and are operational. The Legal and Compliance Policy was drafted and at the time of reporting, it was under review by Top Management. The Unit is also acknowledged for its conclusive disposal of 5 staff disciplinary cases Professional Liability Indemnity Insurance During the year 2010/2011, the office took a professional liability indemnity insurance policy to protect itself in the probable event that the office is sued on the contents of its audit reports Office Accommodation and Transport Equipment The Office of the Auditor General Headquarters is accommodated partly in the Treasury Building and in rented premises within Kampala. At the beginning of the financial year 2010/11, five Regional Offices of Arua, Gulu, Soroti, Fort Portal and Masaka were accommodated in OAG premises while the other five Offices of Jinja, Mbale, Kampala, Kampala City Council and Mbarara were accommodated in other Government institutional buildings. With support from FINMAP, the office secured funding for the construction of the Audit House in Kampala and three Regional Offices in Jinja, Mbale and Mbarara Towns. During the Financial year 2010/11, construction of two Regional office blocks in Jinja and Mbale Towns were completed and the Offices handed over to the office and are now in use. At the time of reporting, the construction of the Audit House and the development of the detailed design for Mbarara Regional Office were in progress. 28

40 The Speaker of Parliament, Rt. Hon. Rebecca Alitwala Kadaga (left) officially breaking the ground for Kampala Audit House. Looking on is the Auditor General, Mr. John F.S. Muwanga, the Chairman Parliamentary Committee on Finance Hon. Frank Tumwebaze and the representative of the Contractor, M/s Seyani Brothers & Co. (U) Ltd. Due to inadequate office space at the head quarters, some of the OAG staff members were temporarily being accommodated in the premises of the Audit entities which was envisaged to be a threat to their independence in execution of their statutory mandate. To overcome the above threat, during the year, the office rented extra office space and withdrew all its staff members from the premises of the Audit entities. During the year 2010/2011, the office acquired a total of 4 vehicles. These vehicles were deployed to the various Directorates to facilitate field operations. 3.3 Financial Management and Internal Audit In accordance with the two strategic objectives of the OAG; To improve the quality of budget preparation, financial management and budget monitoring ; To secure financial and operational independence of the Office. During the year, the office used the Output Budgeting Tool (OBT) to prepare its Budget Framework Paper, Draft Budget Estimates for the FY 2011/12 and the Quarterly 29

41 Progress Reports for the FY 2010/11 and submitted to the Ministry of Finance Planning and Economic Development in time Budget Performance for the FY 2010/11 Pursuant to the National Audit Act 2008 section 33 which provides for the preparation and submission of estimates for the year, of administrative and development expenditures and estimates of revenues of the Office of the Auditor General, the office prepared its budget for the financial year 2011/2012 and Submitted to Parliament. The total budget approved for the office for the Financial Year 2010/2011 was Shs Bn for both development and statutory recurrent expenditures including non resource taxes. The total budget of Shs Bn included Shs Bn GoU funds and Shs 0.754Bn donor funds. The allocation of Shs Bn GOU funding was as follows: Statutory wage Shs Bn, non wage Shs Bn and Development Shs 0.960Bn including taxes. In addition, donor funds totaling to US$6.588m administered under FINMAP project were allocated to the office for capacity building interventions which included construction of the Audit House and a Regional Office in Mbarara, retooling and staff training. The OAG budget increased as compared to financial year 2009/10. Whereas the approved budget for 2009/10 was Bn (with an actual outturn of Shs.22.5Bn) a 20% increment was given in the Financial Year 2010/11 to reach an approved budget of Shs Bn with an outturn of Shs Bn. 30

42 A summary of the Budget, Actual Releases and MTEF Projections for three years is shown in table 5 below: Table 5: Budget, Actual Releases and MTEF Projections (Billions) Budget Type Approved Budget 2009/ / /12 MTEF Projections Actual Outturn Approved Budget Actual Outturn Approved Budget 2012/ /14 Recurrent GoU Devt Donor Devt Total Internal Audit The Internal Audits Unit is charged with the responsibility of verifying the effectiveness of internal controls and advise Top management on risk management. The recruitment of a Principal Internal Auditor strengthened the Capacity of the Unit which has enhanced its performance. During the year, the unit was able to produce a draft copy of the Enterprise Risk Management Frame work; a risk register and 2 Consolidated Internal Audit Reports for the FY 2010/ Financial Reporting and Audit In accordance with section 35 of the National Audit Act 2008 the office prepared and submitted the financial statements for the financial year ending 30th June 2011 as per the required statutory date of 30th September In regards to external audit of accounts of the office, at the time of reporting, Parliament was handling the procurement process for the external Auditor to audit the accounts of the Office of the Auditor General for the Financial Years 2005/2006 to 2010/

43 3.3.4 Procurement and Disposal The Procurement and Disposal Unit is headed by the Senior Procurement Officer. Together with the contracts committee, the unit is entrusted with handling the procurement and Disposal function in the office. In order to facilitate orderly execution of the procurement activities of the office, the Unit consolidated the Procurement Plan for the year 2010/2011 which was executed. As a statutory and compliance requirement, the Unit prepared and submitted the monthly reports to PPDA in time; it updated the prequalification list of providers for works, supplies and services which are of routine nature Assets Management The office has continued to maintain an asset register that was installed in 2007/2008. The register was updated with the details of all the office assets including vehicles, furniture, motorcycles, buildings etc acquired during the year 2010/2011. Updates were done in the assets register whenever there was any asset acquisition, transfer and disposal. The assets were fully engraved in their respective categories including both donated and GoU assets. 32

44 4.0 International Relations During the year, the Office of the Auditor General maintained its relations with a number of International Organizations for knowledge and experience sharing. Staff from the office (OAG) made international visits to other relevant organizations and for international conferences outside Uganda to learn from and share experiences with them INTOSAI and IDI INTOSAI is the International Organization of Supreme Audit Institutions. It is an organization or association of Supreme Audit Institutions (SAIs) of countries who are members of the United Nations (UN). IDI means International Development Initiative. It is the training arm of the INTOSAI through which members of INTOSAI share knowledge, skills and information through training. The Office of the Auditor General subscribes to and is a permanent member of INTOSAI. During the year, the Assistant Auditor General and the Director/Corporate Support Executive attended a conference for INTOSAI working Group on environmental Audit in Argentina AFROSAI and AFROSAI-E AFROSAI is the African Organization of Supreme Audit Institutions. It is a continent wide organization of Supreme Audit Institutions (SAIs) of Africa and a Regional African continental member of the INTOSAI. Through participating in the programmes and events of AFROSAI, member SAIs share knowledge, information and experiences on public sector audit issues. The Office of the Auditor General subscribes to and is a member of AFROSAI. During the financial year, three staff (Chief Operating Officer, the Director/ Corporate Support Executive and one Senior Principal Auditor) attended the Annual AFROSAI Technical Update. 33

45 The Senior Public Relations Officer Gloria Namugera (left) poses for a photo with communication experts from SAI Tanzania, SAI Namibia and SAI Swaziland during the AFROSAI-E Communication Workshop. In addition, two staff attended a management development conference in South Africa; the Principal Internal Auditor attended a conference on Risk Based Internal Auditing in Swaziland and the Senior Public Relations Officer attended the communications workshop on increasing knowledge and working with communication in supreme audit institutions The Common Wealth Auditor Generals Conference The Commonwealth Auditor Generals Conference is organized once every three (3) years by the Countries who belong to the Commonwealth. The Office of the Auditor General of Uganda is a member of the Commonwealth Auditor Generals Conference. In the FY 2010/11, the office was represented by the Assistant Auditor General and Assistant Director Audit in the 21 st conference whose theme was Pioneering Excellence in Public Sector Auditing, which was held in Windhoek, Namibia, April The next conference will be hosted by the Malta National Audit Office in

46 4.1.4 United Nations Independent Audit Advisory Committee (UN-IAAC) The Independent Audit Advisory Committee of the United Nations (UN-IAAC) is a subsidiary body of the General Assembly of the United Nations (UN) established to serve in an expert advisory capacity to assist the General Assembly of the UN in fulfilling its oversight responsibilities. The Auditor General of Uganda was appointed the Chairperson to the Committee and in his capacity as Chairperson, he attended all the meetings of the Committee in the during the year. Secretary-General Ban Ki-Moon (4 th from left) meets with members of the Independent Audit Advisory Committee (IAAC). 2 nd from right is the Auditor General of Uganda Mr. John F.S. Muwanga who is now the Chairman of the Committee. 35

47 4.1.5 World Bank Multilateral Audit Advisory Group The World Bank Group established a Multilateral Audit Advisory Group (MAAG) that is specifically tasked with advising the Audit Committee of the World Bank (WB) on audit requests from the Supreme Audit Institution (SAI) or other National Audit Offices. The advice given (by MAAG) includes assessing compliance of the SAIs with the agreed terms of references for the audit; assessing adherence to the agreed group rules, and providing objective comments on the resulting audit reports. The Auditor General of Uganda is a member of this Multilateral Audit Advisory Group (MAAG) of the World Bank International Consortium on Government Financial Management (ICGFM) The ICGFM works globally with Governments, Organizations and individuals who are interested in developments in public financial management. The Consortium brings together diverse Governmental Entities, Organizations and individuals who include financial management practitioners in all levels of Government. During the Financial Year 2010/11, the office sent four (5) Senior Officers to participate in the Conference activities of the Consortium International Delegations Due to the improvements in the quality of performance and autonomy of the Office of the Auditor General and the successful adoption of efficient and effective audit tools and methods in auditing computerized accounting and financial management Systems, (such as the IFMS) the office started receiving a stream of International Delegations wishing to share experiences and broaden their knowledge with SAI Uganda. 36

48 In the period of reporting, the office hosted International delegations from the following SAIs and other institutions: The National Audit office of Tanzania; National Audit Office of UK; Swedish National Audit Office. Office of Comptroller & Auditor General of India; Lesotho Revenue Authority; Office of the Accountant General Somalia; National Audit Office of Malawi In addition, the office hosted the audit team comprising of members from SAI Kenya, SAI Tanzania and SAI Cameroon for the joint Value for Money Audit of the Lake Victoria. A team from SAI Tanzania, SAI Uganda, SAI Kenya with an observer from SAI Cameroon pose for photo following Joint Environmental Audit of Management of Fisheries on Lake Victoria. In the middle of the photo is Mr. John F.S. Muwanga, the Auditor General JICA and OAG JICA and OAG have related closely, with the former giving capacity building support to the latter. During the year of reporting, JICA supported the office in three major areas:- VFM, IT and Public works. 37

49 i. In the area of ICT it supported the following capacity building interventions: The development of the IT strategy for the period ; Training 5 staff in IT audit; Training 26 staff in IDEA and 137 staff trained in procurement Audit; Training 30 staff in Teammate refresher course; ii. In the area of Public Works it: Supported the development of the Public Works Audit Strategy for the period ; Trained 2 auditors in public works audit in Japan. iii. In the Area of Value for Money it; Supported the development and production of the VFM Audit awareness leaflets. 38

50 5.0 Registration of Accountants Section 8 of the Accountants Act 1992 empowers the Auditor General to be the Registrar of Accountants in Uganda. It requires the Auditor General to register and maintain a register for the Accountants. During the year the Auditor General registered 190 Accountants. At the time of reporting 89 applications were in process. 39

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52 Appendix I: Unaudited Financial Statements of OAG for the year ended 30 th June GOVERNMENT OF THE REPUBLIC OF UGANDA REPORTS AND FINANCIAL STATEMENTS FOR OFFICE OF THE AUDITOR GENERAL FOR THE YEAR END 30 th June