THE REPUBLIC OF UGANDA

Transcription

1 THE REPUBLIC OF UGANDA REPORT AND OPINION OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF NATIONAL AGRICULTURAL RESEARCH ORGANISATION FOR THE YEAR ENDED 30 TH JUNE, 2014 OFFICE OF THE AUDITOR GENERAL KAMPALA, UGANDA

2 TABLE OF CONTENTS LIST OF ACRONYMS... 2 REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF NATIONAL AGRICULTURAL RESEARCH ORGANISATION (NARO) FOR THE YEAR ENDED 30 TH JUNE, INTRODUCTION BACKGROUND INFORMATION ENTITY FINANCING OBJECTIVES OF NARO AUDIT OBJECTIVES AUDIT PROCEDURES PERFORMED FINDINGS Mischarge of expenditure Budget Performance Un recovered car loan Internal Audit Function Audit Inspections Status of Prior year audit Issues... 18

3 LIST OF ACRONYMS Acronym NARO ISSAIs MBAZARDI EAAPP ZARDI NARS UNRA CRSG IDA GOU NARL MOFPED Shs NTR PARIs Bn NAROSEC UEDCL RPS NAFORRI BOQs NaLIRRI NAFIRRI COREC NASARRI NABUZARDI NIC ABIZARDI KAZARDI BUZARDI RVR Nge ZARDI ATAAS MTEF MP MOU PPDA RT. HON Meaning National Agricultural Research Organisation International Standards of Supreme Audit Institutions Mbarara Zonal Agricultural Research Development Institute East African Agricultural Productivity Project Zonal Agricultural Research Development Institute National Agricultural Research System. Uganda National Roads Authority China Railway Seventh group International Development Agency Government of Uganda National Agricultural Research Laboratories Ministry of Finance, Planning and Economic Development Uganda Shillings Non Tax Revenue Public Agricultural Research Institutes Billion National Agricultural Research Organisation Secretariat. Uganda Electricity Distribution Company Limited Reserve Protection Services National Forestry Resource Research Institute Bills of Quantities National Livestock Resources Research Institute National Fisheries Resources Research Institute Coffee Research Centre National Semi-Arid Resources Research Institute Nabuin - Zonal Agricultural Research Development Institute National Insurance Corporation ABI Zonal Agricultural Research Development Institute Kabale Zonal Agricultural Research Development Institute. Buginyanya Zonal Agricultural Research Development Institute Rift Valley Railways Ngetta Zonal Agricultural Research Development Institute. Agricultural technology and Agribusiness Advisory services. Medium Term Expenditure Framework. Member of Parliament Memorandum of Understanding Public Procurement and Disposal of Public Assets. Right Honourable 2

4 REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF NATIONAL AGRICULTURAL RESEARCH ORGANISATION (NARO) FOR THE YEAR ENDED 30 TH JUNE, 2014 THE RT. HON. SPEAKER OF PARLIAMENT I have audited the financial statements of National Agricultural Research Organization (NARO) for the year ended 30 th June 2014 as set out on pages 6 to 40. These financial statements comprise of the statement of financial position, the statement of financial performance and cash flow statement together with other accompanying statements, notes and accounting policies. Management Responsibility Under Article 164 of the Constitution of the Republic of Uganda (as amended) and Section 8 of the Public Finance and Accountability Act, 2003, the Accounting Officer is accountable to Parliament for the funds and resources of the Organization. The Accounting Officer is also responsible for the preparation and fair presentation of these financial statements in accordance with the requirements of the Public Finance and Accountability Act 2003, and the Financial Reporting Guide, 2008, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error. Auditor s Responsibility My responsibility as required by Article 163 of the Constitution of the Republic of Uganda (as amended) and Sections 13 and 19 of the National Audit Act, 2008 is to audit and express an opinion on these statements based on my audit. I conducted the audit in accordance with International Standards on Auditing. Those standards require that I comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing audit procedures to obtain evidence about the amounts and disclosures in the financial statements as well as evidence supporting compliance with relevant laws and regulations. The procedures selected depend on the Auditor s judgment including the assessment of risks of material misstatement of financial statements whether due to fraud or error. In making those risk assessments, the Auditor considers internal control relevant to the entity s preparation and fair presentation of financial 3

5 statements in order to design audit procedures that are appropriate in the circumstances but not for purposes of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Part A of this report sets out my opinion on the financial statements. Part B which forms an integral part of this report represents in detail all the significant audit findings made during the audit which have been brought to the attention of management and form part of my Annual Report to Parliament. PART A Opinion In my opinion, the financial statements of the National Agricultural Research Organization (NARO) for the year ended 30 th June, 2014 are prepared in accordance with the Financial Reporting Guide, 2008 and Section 31(6) of the Public Finance and Accountability Act, Other matters I consider it necessary to communicate the following matters other than those that are presented or disclosed in the financial statements that, in my judgement are relevant to users understanding of the audit, the auditor s responsibilities and the auditor s report. Mischarge of expenditure-shs.206,704,980 Expenditure worth Shs.206,704,980 was charged on wrong expenditure codes contrary to GOU chart of accounts. This practice undermines the budgeting process and intentions of the appropriating authority. The practice also leads to financial misreporting. Land matters During the review, I noted that there were continued illegal acts on the Organisation s land specifically encroachment on MBAZARDI Land. While management carried out eviction exercise of some encroachers during the year; inspection of the Institute land indicated that more land was being encroached on by the same person earlier evicted to an estimated 31.8 acres and this continues to affect the operations of NARO. As reported 4

6 on in my previous report; lack of strong measures continues to place the organisation s land at more risk of encroachment by deceitful persons. John F.S. Muwanga AUDITOR GENERAL KAMPALA 16 th February,

7 PART B DETAILED REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF NATIONAL AGRICULTURAL RESEARCH ORGANISATION FOR THE FINANCIAL YEAR ENDED 30 TH JUNE 2014 This section outlines the detailed audit findings, management responses, and my recommendations in respect thereof. 1.0 INTRODUCTION In accordance with Article 163(3) of the Constitution of the Republic of Uganda (as amended) I am required to audit and report on the public accounts of Uganda that is to say, all public offices including the courts, the central and the local government administrations, universities and public institutions of the like nature and any public corporation or other bodies or organizations established by an Act of Parliament. Accordingly, I carried out the audit of NARO to enable me report to Parliament. 2.0 BACKGROUND INFORMATION NARO is the apex body for guidance and coordination of all agricultural research activities in the National agricultural research system in Uganda. NARO is a Public Institution established by an Act of Parliament, which was enacted on the 21 st November It is a body corporate with perpetual succession and a common seal. NARO comprises of the council as its governing body, committees of the council as its specialized organs, a secretariat for its day-to-day operations with semi-autonomous public agricultural research institutes under its policy guidance. The Secretariat is located at Plot 3 Lugard Avenue, Entebbe. NARO s vision is A farmer responsive research system that generates and disseminates problemsolving, profitable and environmentally sound technologies, knowledge and information on a sustainable basis and its mission is The generation, adoption and dissemination of appropriate and demand-driven technologies, knowledge and information through an effective, efficient, sustainable, decentralized and wellcoordinated agricultural research system. 6

8 3.0 ENTITY FINANCING During the year, NARO was financed by grants from Central Government and locally generated revenues. Funds were also received from IDA for the ATAAS and EAAPP projects, but these were reported on separately. Grants totalling to Shs35,027,197,017 from Central Government were received, while a total of Shs3,080,262,958 was received from locally generated revenue. Furthermore; NARO participated in International competitive grants system and received a number of Research grants. The total operating revenue of Shs.38,107,701,005 constituted 80% of its approved budget estimates of Shs.47,682,761, OBJECTIVES OF NARO The following are the objectives of NARO:- To enhance the cohesion in the NARS and NARS programmes, To empower and enhance the capacity of stakeholders in demand articulation and governance of the research programmes To match competence needs in the public and non-public institutions with the dynamics of the demand for research products and services To improve access to and ensure effectiveness and efficiency in resource use in the research for development programs. 5.0 AUDIT OBJECTIVES The audit was carried out in accordance with International Standards on Auditing and accordingly included a review of the accounting records and agreed procedures as was considered necessary. The audit was carried out with regard to the following objectives:- a. Whether the financial statements have been prepared in accordance with the requirements of the Public Finance and Accountability Act 2003 and the regulations, and fairly present the income and expenditures for the year and of the financial position as at the end of the year. b. Whether all Organization funds were utilized with due attention to economy and efficiency and only for the purposes for which the funds were provided. c. Whether goods and services financed have been procured in accordance with the PPDA Act. 7

9 d. To evaluate and obtain a sufficient understanding of the internal control structure of the organisation, assess control risk and identify reportable conditions, including material internal control weaknesses e. Whether management was in compliance with the Government of Uganda financial regulations. f. Whether all necessary supporting documents, records and accounts have been kept in respect of all activities, and are in agreement with the financial statements presented. 6.0 AUDIT PROCEDURES PERFORMED The following audit procedures were undertaken:- a. Revenue Obtained all schedules of all revenues collected and reconciled the amounts to the Organization s cashbooks and bank statements. b. Expenditure The Organization s payments vouchers were examined for proper authorization, eligibility and budgetary provision, accountability and support documentation. c. Internal Control System Reviewed the internal control system and its operations to establish whether sound controls were applied throughout the period d. Procurement Reviewed the procurement of goods and services under the Organization during the period under review and reconciled with the approved procurement plan. e. Fixed Assets Management Reviewed the use and management of the Organization 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. 8

10 7.0 FINDINGS 7.1 Mischarge of expenditure-shs.206,704,980 The Parliament of Uganda appropriates funds in accordance with the needs of the country and this appropriation is implemented through the budget in which funds are tagged to particular activities and outputs using account codes and MTEF codes. During examination, it was noted that expenditure worth Shs.206,704,980 was charged on wrong expenditure codes contrary to GOU chart of accounts. Mischarge leads to misallocation and diversion of resources to non-planned activities contrary to appropriation by Parliament. The practice also leads to misrepresentation of facts in the financial statements and undermines the importance of the budgeting process. The Accounting Officer explained that they have on several occasions written to the PS/ST and the Accountant General seeking for a research code to over-come the budgeting anomaly without any response. The research activities include; client priority setting and planning, experimental site visits and maintenance, surveys and other data collection activities; which require much of the budget and the amount involved cannot be accommodated on the related codes like travel inland because of restricted budget line allocations. I urged the Accounting Officer to continue pursuing the matter with the Accountant General to have it resolved. 7.2 Budget Performance Under funded budget Management budgeted to receive Shs.41,867,739,709 in order to carry out its activities for the financial year under review. However, only Shs.35,027,197,017 (79.9%) was received leaving a balance of Shs.6,840,542,692 un released as summarized below: Funding category Budgeted Released variance Recurrent releases 27,737,246,147 27,614,680, ,565,296 Development releases 6,130,493,562 4,597,870,172 1,532,623,390 Gross tax 8,000,000,000 2,814,645,994 5,185,354,006 Total transfer from 41,867,739,709 35,027,197,017 6,840,542,692 Govt. 9

11 The shortfall in releases affected the research works and a number of activities. These activities included; data collection on farm performance trials, data collection on pests & diseases, training of rural artisans, assessment of economic impact of management of fruit flies, nursery activities & field trials monitoring, data collection on plant bio diversity, monitoring of project activities, field activity on vector specimens, identification of termite specimens, monitoring, purification of cultures experiments and data collection on plant bio diversity purification of cultures and experiments. The Accounting Officer explained that the bulk of the unreleased funds relate to gross tax that could not be utilised because of the length of the procurement process. He further explained that there was underfunding from Government as the Organization did not receive its 4 th quarter release. I advised management to pursue the matter of funding with MoFPED with a view of ensuring that in future all the resources for all the planned activities are accordingly released to enable implementation Un-collected NTR - Shs.2,734,758,542 NARO s approved NTR budget for year was Shs.5,815,021,500 but I noted that Shs.3,080,262,958 was realised leaving Shs.2,734,758,542 un collected. This translates into underperformance of 47% of the budgeted revenue collections. Compared to the previous year, performance declined by Shs.298,081,719 (9%). The declining performance could be attributed to poor collection strategies and or weak revenue collection controls. The Accounting Officer attributed the under collection to compensation from UEDCL of over Shs.2bn for land occupied by electricity line sub-station at NARL- Kawanda Institute which did not materialize due to land wrangles between NARO and the veterans. However, the matter was reported to the courts of law under suit no. 434/2014. I advised management to follow up the matter with a view of having the compensation settled. 10

12 7.3 Un recovered car loan-shs.22,910,000 Sect of the NARO human resource manual requires NAROSEC and PARIs management to recover any outstanding amount from its members by deducting such amount from gratuity if it cannot be recovered from the salary. Besides, according to condition b (5 & 6) of the car loan agreement, a staff is under obligation to pay the loan whether he/she is in full employment with NARO or not. However, I noted that NAROSEC terminated the services of its two staff after the expiry of their employment contracts without recovering the outstanding loans. The other staff is on a study leave whose loan is not being settled. Details in the table below: Name Designation Terms of service Outstanding Loan Last date of recovery Staff Principal Still employed by 6,910, th June,2013 Research Officer Quality NARO but on Study Leave Assurance Former staff Senior Procurement Officer Contract terminated in June ,000, st October2013 Former staff Civil Engineer Contract terminated 8,000, th June 2013 in June 2013 Total 22,910,000 I explained to management that failure to recover outstanding loans from the former staff translates into financial loss to government. The Accounting Officer explained that the matter of the affected former staff was brought to the attention of the governing council and have written to them to have the outstanding amounts settled. The staff on study leave promised to pay in 2 installments and so far US $ 1,200 has been recovered. I urged management to pursue the affected staff and ensure that their outstanding loans are recovered. 7.4 Internal Audit Function Operations of Internal Audit NARO has twenty (20) internal audit staffs and out of these; 4 are based at Headquarter while the rest are based at the Institutes spread across the country. 11

13 During the audit, I noted that the Institutes of ABI Arua and Mukono ZARDI did not have internal auditors. I explained to management that a review of the structure of operations of internal audit needs to be carried out to ensure the available staff can offer services to the Institutes. Strengthening the internal audit is very essential as it will empower the unit to handle the ever growing responsibilities at all the Institutes country wide. The Accounting Officer explained that the internal auditors for ABI and Mukono ZARDIS resigned from NARO service and the process of replacing them was in advanced stages. In the meantime, the internal audit staffs at NAROSEC were reportedly providing internal audit services to these institutes. I advised management to expedite the recruitment process with a view of strengthening the internal audit department for effective service delivery Inadequate staffing NARL Kawanda A review of the Institute s internal control environment showed that NARL has one internal auditor responsible for all internal audit assignments including carrying out verification of monthly reconciliation statements of over 65 bank accounts. I noted that during the year, the auditor s key role at the institute was to carry out preaudits however, there were no internal audit reports, an indication that there was limited review of the systems and processes at the Institute. I explained to management that lack of a strong internal audit could result into non-detection of errors and therefore misstatements of the financial statements. The Accounting Officer explained that the recruiting process was on-going. I await the outcome of management s commitment. 7.5 Audit Inspections Continued illegal encroachment on MBAZARDI Land I previously reported that an individual had encroached on MBAZARDI land. During the year under review, management carried out eviction of some encroachers on this land. However during inspection, I noted that more land is being encroached on by the same person earlier evicted. An estimated 31.8 acres had been encroached on by this person. 12

14 It was also noted during the eviction exercise that a staff of NARO was assaulted by the same encroacher and the case is before the courts of law. However, after a period of more than 5 months, the case has not been put to mention. The organisation s land is at more risk of encroachment. The Accounting Officer explained that the case is in court suit no. 070 of I urged management to pursue the matter and strengthen measures against land encroachers Rwebitaba ZARDI a. Lack of official hand over report of properties NAROSEC received land and other properties from Kabarole local Government. Rwebitaba ZARDI then shifted to Kyembogo station as its administration centre. However, I was not availed with the hand-over report/list of assets to NAROSEC from Local Government for verification and the land title to confirm ownership. Furthermore, I noted that the institute has not fenced off its boundaries putting the assets at more risk as evidenced by a public road passing through the institute as illustrated in the pictures below: Office block without a gate/fence The public road that passes through the compound. I explained to management that this could cause thefts due to open access of the facility. The Accounting Officer explained that the hand over is being done in phases and has not been completed, a complete report is expected after the exercise and will be availed as soon as it is received. 13

15 I advised management to ensure that a proper hand over is done and also ensure that the administration block is fenced off. Acquisition of ownership of the land should be expedited. b. Dilapidated properties The institute buildings where the staffs are accommodated are roofed with asbestos that was internationally condemned. Furthermore, I noted that some structures (staff quarters) and a toilet in the compound were very old and inhabitable and some blocks within the compound were not completed as shown in the pictures below: The building with asbestos sheets One of the public toilets in the compound Un completed block Dilapidated structure at staff quarters I explained to management that the poor state of structures affects the operations of the institute and reflects a bad image of the organisation. Management explained that NARO inherited the infrastructure from Kyembogo Local Government and that some rehabilitations are being done gradually. Once funds are available, the unroofed blocks will be roofed. I advised management to plan and have the renovations completed. Meanwhile the asbestos which is a health hazard to staff should be replaced. c. Security at the station It was noted that the security at the station is inadequate; there are four contracted security guards of Reserve Protection Services (RPS) and one locally employed. Two guards at night and others during the day. I noted that the two guards deployed at night were not enough to provide the required protection for 14

16 the institutes assets and resources that are scattered on approximately 500 acre piece of land. Information gathered at the station indicated that the institute experienced thefts of research materials in the cassava fields and fire out breaks by the outsiders during the year but the guards could not do much to prevent such occurrences. I explained to management that those were clear signals that the institute s security is not enough hence putting the assets at high risk of theft and destruction. Management explained that provision of security to such a wide area including experimental gardens is a challenge. However costs of recruiting local based guards to support those deployed by RPS were considered in the budget estimates of I advised management to plan for adequate security and ensure the institute land is fenced off MBAZARDI Land encroachment by a Company Inspection of MBAZARDI land indicated that other encroachers have installed an illegal structure and a container on the institute land but management has not taken any action to have them evicted. Below is a picture of the illegal structures: Discussion with management indicated that the case is now before the courts of law. Containers and a structure illegally erected on the institute land. I further noted that there were a number of encroachers on the institute land along Kasese road. These encroachers have started operating on the institute s land, an indication that there are no strong safeguards set up by management to stop them. There is a possibility that the entity land could all be grabbed in the near future thereby affecting the research activities of the organisation. 15

17 I advised management to pursue the matter with relevant authorities and ensure that the government land is recovered from the encroachers. Meanwhile, strong measures should be put in place to counter any further encroachment Un compensated land - MBA ZARDI Institute During the inspection, I noted that the current construction of Mbarara by pass by China Railway Seventh group (CRSG) contracted by UNRA affected the activities of the Institute on approximately acres of land on plot 4 & 4a along Kabale road. It was evident that the water pipes had been destroyed, water troughs had been affected, EAAPP cassava garden destroyed, trees for animal shades and pasture for animals destroyed as indicated in the pictures below: The by-pass that crosses the NARO land Part of the cassava that remained undestroyed A review of correspondences available revealed that the Institute was to be compensated for the development structures and crops destroyed to the tune of Shs.1,836,545,630 broken down as below; Item Valued Amount Land 1,586,900,000 Development 5,786,200 Crops 4,310,000 Sub-total 1,596,996,200 Disturbance allowance 239,549,430 Total 1,836,545,630 However, at the time of reporting (December 2014), no compensation had been received. I noted that there was lack of adequate follow up of this claim with the relevant authorities. The Accounting Officer explained that a follow up with UNRA to have the funds paid has not yet yielded results. I advised management to pursue the matter further and have the compensation resolved. 16

18 7.5.5 Coffee Research Centre (COREC)-Kituza a. Outstanding fuel arrears-shs.24m A review of the institution s documents revealed that there were outstanding fuel arrears worth Shs.24m to an oil company that were consumed during the year. However, there was no documentation detailing the outstanding fuel bill. Only fuel statements were availed for review but these lacked the purpose for which the fuel was consumed. I explained to management that payment of such claims without supporting documents could lead to misappropriation of funds. The Accounting Officer explained that the bill was received after the financial year and its accuracy was being assessed. I advised management to verify the claim before settlement is made National Forestry Resources Research Institute (NAFORRI) a. Use of the Guest House Inspection of the Institute s Guest house was carried out as a follow up of the issues raised in the previous audit. I noted that the 10 bed roomed Guest House requires renovation as its roof top, some walls and parts of the floor had developed cracks. In my previous report, I advised management to maintain the building to avoid further deterioration however, no action has been taken since the previous audit and the asset continues to deteriorate. This has affected the collection of revenue to the Institute. The Accounting Officer explained that NARO engineer was asked to inspect the guest house and prepare technical reports and BOQs so that the estimates for renovation are included in the budget, however the process has delayed. I advised management to ensure that the repairs are carried out urgently and the assets put to use Destruction of property at Bulegeni Satellite Station Bulegeni Satellite station was attacked by a riotous mob of local people on the 27 th February The Institute property was burnt to ashes that included buildings, office property, dormitory property, livestock, and crops. It was also indicated that the attackers stole Shs.1,500,000 (One million five hundred thousand shillings) 17

19 which was in the cash box. Two people were reported dead during the incident; one a security guard hired from RPS to guard the Institute and another person who had come to graze animals on the Institute land. Furthermore, I noted that staffs who were residing at Bulegeni also lost their property which included motor cycle, beddings, utensils, furniture, documents and clothes. As at the time of inspection (August 2014), it was reported that management was still compiling the list of the lost property. I noted that management delayed to compile the list. There was also no evidence that management has taken steps to have the lost assets valued with a view of quantifying the loss for subsequent reporting to appropriate authorities and financial statements. The Police report was also not availed for review. The Accounting Officer explained that the list of destroyed property was available and that the government valuer would soon cost the property lost. It was further explained that the case was in Mbale High court and that the satellite was earmarked for renovation while Police is keeping guard of the property. I advised management to quantify the loss in compliance with the regulations for subsequent action and reporting. 7.6 Status of Prior year audit Issues A review of the status of recommendations of the prior year audit issues indicated that some issues are still unresolved especially the land matters as indicated below: Audit Issue Raised (FYR:2012/2013) Assets Management Land Issues Current Status It was noted that NARO does not have title deeds as evidence of ownership for most of its Research Institutions located country wide. Institute Observation A NAFORRI Untitled Land. 425 hectares of land with no evidence of legal ownership. 18 All Land matters have not been Resolved yet and matters are before PAC.

20 A C Coffee Research Center (COREC) - KITUZA MBAZARDI, ABIZARDI KAZARDI, BUZARDI 2 acres of land not titled. Lack of land Titles and land encroachment. It was noted that there was no proof of land ownership for Mbazardi, ABIZARDI, KAZARDI, BUZARDI and Kakumiro land. D BUZARDI Land at Kakumiro The land at Kakumiro is held in trust by the Land Commission. It was noted that this land has been encroached. Other challenges included; Land Commission parcelling out pieces of land and allocating it to private developers. E NaFIRRI Land for construction of a pier Institute operates from a pier that belongs to Rift Valley Railways (RVR) but there was no MoU between the two Institutions. F Irregular Allocation of NAFIRRI Institute land to private developers: G NaLIRRI Irregular use of NaLIRRI s property (Plot 48 Osukuru Road) H I BUGINYAN YA (BUGIZAR DI) NASARRI SERERE Encroachment on the Institute s land. Land measuring approximately 270 acres has triplicate title deeds in different individual names and the land was under threat of encroachment. Land Grabbing by Local community. Some encroachment was reported on the Institute s land situated at Serere by the local community. In Kumi Town Council; un known persons had started putting up permanent structures. 19

21 j K Nabuin NABUZA RDI Ngetta Nge ZARDI Un-Surveyed land/lack of a title deed. All the land occupied by the Institute estimated to be 1,300 acres has never been surveyed and hence no title deed to the same land. Land Ngetta Institute has land measuring approx. 540 acres. It was noted that the eastern side of the land that was formerly used for animal rearing has been encroached on. Failure to dispose of old equipment Issue under PAC. Domestic arrears The liability was reduced. In FY 13/14 UGX 198mn was cleared leaving 743m outstanding. Being implemented. Budget Performance Shortfalls in Government funding Lack of laboratory space and equipment Coffee Research Center (COREC) Kituza institute did not have enough space for its laboratory and equipment. In the current year 6.8 bn was not released. Problem still happens. Management explained that the institute gained full status of a National Research Institute in FY13/14. New management has initiated the building of a new state of the art Biotech laboratory and the process awaits Solicitor General s Consent in addition to the planned development under the ATAAS funding. Matter under PAC. 20

22 National Fisheries Resources Research Institute(NaFIRRI) (a) Health Challenges It was noted that NaFIRRI was generally faced with a challenge of water pollution coming from water hyacinth, heavy metals such as phosphorus and too much nitrogenous nutrients. (b) Staffing It was noted that the staffing position of the Institute is not sufficient for its operations. (c) Operations of the Research Marine Vessels NaFIRRI has 3 Research Marine Vessels two of which were reported quite old, with the oldest MV RVIBIS of model 1967, and as a result it consumes excessive fuel. The marine vessels have not been insured contrary to the required Marine vessels operational standards. (d) Insufficient funding for operations of the vessels Road Transport Facilities The Institute is faced with shortage of worthy transport facilities. Originally, NaFIRRI had 14 project donated motor vehicles, however, it was noted that the majority of these vehicles were grounded except four (4) of them. Collapsing Residential Quarters at NaLIRRI Most of the buildings especially staff quarters of National Livestock Resources Research Institute (NaLIRRI) are in a very bad state with the exception of the main administration block. A number of the buildings seemed to have been abandoned and were reported occupied by unknown people as the premises of the Institute were not fenced. Buginyanya zonal Agricultural Research Development Institute Inspection of the Institute revealed the following issues: a) Lack of Adequate Infrastructure (Buildings) Not resolved. Under PAC Not resolved. Management explained the Vessels have been insured with NIC. Issue under PAC. Management stated that funding available is limited and could not cater for all operations of the organization. Not Resolved. The Institute received 2 pickups to alleviate the problem. Steps taken. The future of NaLirri was noted as uncertain as some of the land was given away for development of a phosphate plant. Not resolved. Renovation of old office block to replace the asbestos is in advanced stages and works will commence soon. 21

23 Not Resolved yet. b) Transport facilities at the Institute The Institute was reported to have a fleet of seven (7) Motor Vehicles. However, 3 were grounded due to lack of routine maintenance. Poor internet services Very unreliable, a situation that affects research. Dilapidated Housing Structures at NASARRI Most of the buildings were old and some dilapidated in need of urgent renovations. Some roof tiles were collapsing while some houses still had asbestos roofing. NABUIN Institute (NABUZARDI) a) Lack of Office Infrastructure NaBUZARDI operates from a rented property in Moroto town since its own premises were destroyed during the war period. b) Transport The Institute has a fleet of about 5 motor vehicles and by the time of inspection; only one was found working. c) Security at the Farm Management states that a new double cabin pick up has been procured and another is expected during this year under ATAAS funding. This is in addition to two double cabins received from AGRA and Africa Rice. Progress recorded. Management stated that with improved MTN network services in the area, the problem of internet has been solved. The Institute now has reliable internet and communication. Getting resolved. Not Resolved yet. A new office block is nearing completion. Management explained that Offices will be relocated to the institute land. Implementation on going. Not resolved yet Not resolved yet The station is currently guarded by few UPDF officers, however the permanency of these officers could not be 22

24 guaranteed. Because of its remoteness, security is at risk to both staff and property. Lack of Laboratory and Screen House at Ngetta This is being handled from funding under EAAPP. Not resolved. 23

25 APPENDIX 1 FINANCIAL STATEMENTS 24