UGANDA HIGH COMMISSION, PRETORIA

Transcription

1 OFFICE OF THE AUDITOR GENERAL THE REPUBLIC OF UGANDA UGANDA HIGH COMMISSION, PRETORIA REPORT AND OPINION OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 TH JUNE 2014 OFFICE OF THE AUDITOR GENERAL UGANDA

2 TABLE OF CONTENTS PAGE Abbreviations... ii Report and Opinion of the Auditor General to Parliament... 1 Detailed report of The Auditor General Introduction Background Information Mission Responsibilities Audit Scope Audit Procedures Performed Audit Findings... 5 i

3 ABBREVIATIONS GoU MOFPED MOFA NTR PFAA TAI UCF UGX Government of Uganda Ministry of Finance Planning and Economic Development Ministry of Foreign Affairs Non Tax Revenue Public Finance and Accountability Act Treasury Accounting Instruction Uganda Consolidated Fund Uganda Shillings ii

4 UGANDA HIGH COMMISSION, PRETORIA REPORT AND OPINION OF THE AUDITOR GENERAL TO PARLIAMENT FOR THE FINANCIAL YEAR ENDED 30 TH JUNE 2014 THE RT. HON. SPEAKER OF PARLIAMENT I have audited the financial statements of the Uganda High Commission, Pretoria which comprise of the Statement of Financial Position as at 30 th June 2014 and the Statement of Financial Performance, Statement of Changes in Equity, Statement of Cash Flows and a summary of significant accounting policies and other explanatory information for the year then ended, as set out on pages 6-9 and Management Responsibility for the Financial Statements Under Article 164 of the Constitution of the Republic of Uganda and Section 8 of the Public Finance and Accountability Act (PFAA), 2003, the Accounting Officer is accountable to Parliament for the funds and resources of the Mission. The Accounting Officer is also responsible for the preparation of financial statements in accordance with the requirements of the PFAA, 2003, and the modified cash basis of accounting and for maintenance of such internal controls that are necessary for the fair presentation of financial statements that are free from material misstatements, whether due to fraud or error. Auditor s Responsibility My responsibility as required by Article 163 of the Constitution of the Republic of Uganda and Sections 13, 15, and 19 of the National Audit Act, 2008 is to express an opinion on the financial statements based on my audit. I conducted my audit in accordance with the International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the Auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the Auditor considers internal controls relevant to the entity s preparation and fair presentation of the 1

5 financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Part A of my report sets out my opinion on the financial statements. Part B which forms an integral part of this report presents in detail all the significant audit findings made during the audit which have been brought to the attention of management. PART "A" Opinion In my opinion; The financial statements present fairly in all material respects the financial position of the Uganda High Commission, Pretoria as at 30 th June 2014 and the income and expenditure for the year then ended in accordance with the requirements of the PFAA, 2003, and the modified cash basis of accounting stated under note 2(a) to the financial statements. The expenditure and receipts have been applied in all material respects for the intended purpose. John F.S. Muwanga AUDITOR GENERAL KAMPALA 10 th November

6 PART B DETAILED REPORT OF THE AUDITOR GENERAL This section outlines the detailed audit findings, management responses and my recommendations in respect thereof. 1.0 INTRODUCTION Article 163 (3), of the Constitution of the Republic of Uganda, requires me to audit and report on the public accounts of Uganda that is to say, all public offices including the courts, the central and local government administrations, universities and public institutions of the like nature and any public corporation or other bodies or organizations established by an Act of Parliament. Accordingly, I carried out the audit of the above Mission to enable me report to Parliament. 2.0 BACKGROUND INFORMATION The Uganda High Commission, Pretoria is located on Plot 882 Stanza Bopape Street, Arcadia 0083, Pretoria, South Africa. It represents Uganda in the Republic of Botswana, the Kingdom of Lesotho, the Republic of Namibia, the Republic of South Africa, the Kingdom of Swaziland and the Republic of Zimbabwe. 3.0 MISSION RESPONSIBILITIES The Mission responsibilities include, inter alia:- Political representation to the countries named by maintaining government to government contact; Monitoring and periodically reporting on political and economic developments in the Southern Africa region; Promoting trade between Uganda and the individual countries; Promoting Uganda s tourism potential; Providing consular services, including issuance of passports and emergency travel documents to Ugandans in South Africa; Facilitating travel to Uganda for residents of Southern Africa, by issuing visas; Offering assistance (prison visits, hospital visits and answering distress calls) to Ugandan residents or those travelling through South Africa; Registering births and deaths of Ugandans in Southern Africa; and Projecting a good image of Uganda in Southern Africa. 3

7 4.0 AUDIT OBJECTIVES The audit was carried out in accordance with the International Standards on Auditing and accordingly included a review of the accounting records, agreed procedures as was considered necessary. In conducting my reviews, special attention was paid to establish whether:- a. The Financial Statements have been prepared in accordance with the requirements of the PFAA, 2003, and the modified cash basis of accounting and that they present fairly the financial performance and position of the Mission as at 30 th June 2014; b. The Mission funds were utilized with due regard to economy and efficiency and only for the purposes for which the funds were provided; c. Sufficient internal controls have been applied consistently throughout the year to safeguard the assets of the Mission and mitigate the risk of misstatement of the financial statements; d. All necessary supporting documents and records have been maintained and are in agreement with the financial statements presented; e. Goods and services have been procured in accordance with the Government of Uganda (GoU) procurement regulations; f. The Mission s assets were well managed in the period under review. 5.0 AUDIT PROCEDURES PERFORMED a. Revenue/Receipts Obtained schedules of receipts and reconciled the amounts to the Mission s cashbooks and bank statements. b. Expenditure Vouched transactions to establish whether documentation in support of the expenditures agreed with the amounts and descriptions on the vouchers; reviewed and reconciled the bank statement transactions to test for occurrence and whether they were properly controlled and accounted for. c. Internal Control System Reviewed the internal control system and its operations to establish whether the controls were sound and were applied throughout the period under review. d. Procurement Reviewed the procurement of goods and services during the period under review and reconciled with the procurement plan. 4

8 e. Fixed Asset Management Reviewed the use and the management of the Mission s assets during the period under review. f. Financial Statements Examined, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessed the accounting principles used and significant estimates made by management; as well as evaluating the overall financial statement presentation. 6.0 AUDIT FINDINGS 6.1 Rent The mission incurs a monthly rent of R 43,200 ($ 43,200) for renting accommodation for the home based staff as follows: Landlord Accommodation rented for Amount per month 1 Catherine Susanne Administrative attaché R Broadways Accounting officer R 11,500 3 Dream works Financial attaché R Ditto Third secretary R Ron mark Second secretary R6500 Total R 43,200 This translates into an annual rent 0f R 518,400 ($51,840) equivalent to UGX 126,577,728 would have been saved if efforts are undertaken to acquire own residential properties. In a written response the Accounting Officer explained that the Mission has engaged the Ministry of Foreign Affairs (MOFA)on the issue. I have advised management to follow up the matter with the Ministry of Foreign Affairs to ensure that the mission acquire its own residences for its staff. 5

9 6.2 The Chancery Condition of the Building Documentary review file regarding the chancery revealed that it was acquired on 25 th January 2001 at R, 1,424,000 equivalent to UGX 347,698,080. However since that time its maintenance has been minimal due to lack of sufficient funds in the annual budget allocations. Its condition requires repair and renovation to save it from further deterioration. For example some of the floor and roof tiles are getting off and the interior wall require painting. In a written response the Accounting Officer stated that the Ministry of Foreign Affairs was aware of the condition of the chancery and has indicated that funds will be availed in the financial year 2015/16 for its renovation. I urged the Accounting officer to follow up the matter with the Ministry Of Foreign Affairs so that the requisite funds are provided for in the budget Security Although the chancery has electric steel gates at the staff and visitors entrances and the building fitted with an alarm system there are no CCTV cameras, provision of access control readers and other devices that enhance security. There is a risk that sophisticated security threats may not be adequately prevented and handled. It was observed that the mission has raised the matter with Ministry of foreign affairs to be allocated funds so that the security at the mission can be strengthened. In a written response the Accounting Officer promised to follow up the matter with the Ministry Of Foreign Affairs and Ministry Of Finance, planning and Economic Development. 6

10 I urged the Accounting officer to follow up the matter with Ministry of foreign Affairs (MOFA) and Ministry of finance planning and economic development (MOFPED) for financial support so that the chancery is adequately secured. 6.3 Renovation of the Official Residence There is a commitment to pay for renovation works going on at the official residence amounting to R 7,261,116.92(UGX 1,772,946,918) and consultancy fees of R 508,098 (UGX 124,062,289) that will fall due in September when the works are expected to be completed. So far R 2,241,163.67(UGX 547,224,933) has been paid leaving a balance of R5, 448,391.25(UGX 1,330,333,692). According to the site meeting held on 20 August 2014 the contractor is committed to complete on the scheduled date of 18 September It was observed that the mission has only R 3,071,235.99(UGX 749,903,692) available which is not enough to clear the obligation when it falls due. Unless funds of R 2,378,155.26(UGX 580,674,170) are provided this may result in a domestic arrear. According to the Accounting officer the renovated residence will also require furniture befitting it, rebuilding of the perimeter wall and strengthening of security which have not been provided for. In addition, reply the Accounting Officer explained that the Mission was following up the matter with the Ministry Of Foreign Affairs and the Ministry Of Finance, Planning and Economic Development. I urged the Accounting officer to follow up the matter accordingly. 7

11 FINANCIAL STATEMENTS 8