UGANDA HUMAN RIGHTS COMMISSION

THE REPUBLIC OF UGANDA UGANDA HUMAN RIGHTS COMMISSION REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE DANIDA PREVENTION AND PROHIBITION OF TORTURE ACT PROJECT FOR THE 18 MONTHS PERIOD ENDED 31 ST OCTOBER, 2015 OFFICE OF THE AUDITOR GENERAL UGANDA

TABLE OF CONTENTS LIST OF ACRONYMS...iii REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE DANIDA PREVENTION AND PROHIBITION OF TORTURE ACT PROJECT FOR THE 18 MONTHS PERIOD ENDED 31 ST OCTOBER, 2015... iv 1.0 INTRODUCTION... 1 2.0 PROJECT BACKGROUND... 1 3.0 PROJECT OBJECTIVES... 1 4.0 AUDIT OBJECTIVES... 2 5.0 AUDIT PROCEDURES PERFORMED... 2 6.0 CATEGORIZATION AND SUMMARY OF FINDINGS... 3 6.1 Categorization of findings... 3 6.2 Summary of Findings... 4 7.0 COMPLIANCE WITH FINANCING AGREEMENT PROVISIONS AND GOU... 4 7.1 Unsatisfactory financial information... 4 ii

LIST OF ACRONYMS DANIDA PPTA UHRC M&E ISA UHCR UNCAT Danish International Development Agency Prevention Prohibition of Torture Act Uganda Human Rights Commission Monitoring & Evaluation International Standards on Auditing United Nations High Commissioner for Human Rights -United Nations Convention against Torture and other Cruel, Inhuman, Degrading Treatment or Punishment. iii

REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE DANIDA PREVENTION AND PROHIBITION OF TORTURE ACT PROJECT FOR THE 18 MONTHS PERIOD ENDED 31 ST OCTOBER, 2015 THE RT. HON. SPEAKER OF PARLIAMENT I have audited the financial statements of DANIDA Prevention and Prohibition of Torture Act Project for the 18 month period ended 31 st October, 2015. The financial statements which are set out on pages 13 to 21 in appendix 1 comprise of statement of financial position, statement of financial performance, statement of cash flows and accompanying notes to the financial statements including major accounting policies adopted. Management Responsibility for the financial statements Management is responsible for the preparation of these financial statements in accordance with International Public Sector Accounting Standards, Public Finance Management Act 2015 and the requirements of DANIDA funding Agreement, and for such internal control as management determines necessary to enable preparation of the Financial Statements that are free from material misstatements, whether due to fraud or error. Auditor s Responsibility My responsibility is to express an opinion on the financial statements based on my audit. I conducted the audit in accordance with International Standards on Auditing (ISA). Those standards require that I comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements. 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 misstatements 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 financial statements in order to design audit procedures that are appropriate in the circumstances. 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 iv

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 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 DANIDA Prevention and Prohibition of Torture Act Project for the 18 months period ended 31 st October, 2015, and of its financial performance and its cash flows for the period then ended in accordance with International Public Sector Accounting Standards and Public Finance Management Act 2015, and the requirements of the DANIDA Funding Agreement. John F. S. Muwanga AUDITOR GENERAL 15 th December, 2015 v

REPORT OF THE AUDITOR GENERAL AND SUPPLEMENTARY INFORMATION

PART B DETAILED REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE DANIDA PREVENTION AND PROHIBITION OF TORTURE ACT PROJECT IMPLEMENTED BY UGANDA HUMAN RIGHTS COMMISSION FOR THE PERIOD 1 ST MAY, 2014 TO 31 ST OCTOBER, 2015 This Section outlines the detailed audit findings, management response, and my recommendations in respect thereof. 1.0 INTRODUCTION Article 163 (3) of the Constitution of the Republic of Uganda, 1995 (as amended), requires me to audit and report on the public accounts of Uganda and 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 contracted M/s J.B Musisi and Associates, Certified Public Accountants to carry the audit of the above Programme on my behalf to enable me report to Parliament. 2.0 PROJECT BACKGROUND The Uganda human Rights Commission (UHRC) signed a funding agreement with the Danish Ministry of Foreign Affairs (under DANIDA) for a grant for the implementation of the Prevention and Prohibition of Torture Act, 2013. Danish International Development Agency (DANIDA) entered into a contract agreement dated 18 th December, 2013 with Uganda Human Rights Commission and funded it with an amount of UGX.1,100,000,000 to implement the programme for the period 1 st May, 2014 to 30 th June, 2015. However, this project was extended to end by 31 st October, 2015 in a written consent dated 15 th May, 2015. 3.0 PROJECT OBJECTIVES The Project s immediate objectives are as below: i. Contribute to the prevention of torture in Uganda through the effective implementation of the national anti-torture law and the UNCAT. ii. Bring together Uganda Law Practitioners and other relevant actors for a collective reflection on the newly adopted anti-torture law; iii. Create awareness on the provisions under the Anti-Torture Act; 1

iv. Support torture victims access to justice. v. Provide security agencies with knowledge and skills to respect the freedom from torture, cruel, inhuman or degrading treatment or punishment; 4.0 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) To express an opinion as to whether the financial statements present fairly the program fund balances as at 30 th October, 2015, and its receipts and expenditure incurred for the period, in conformity with Generally Accepted Accounting Principles (GAAP). b) To evaluate and obtain a sufficient understanding of the internal control structure of the project, assess control risk and identify reportable conditions, including material internal control weaknesses. c) To establish whether the project managers are managing the program in compliance with the covenants contained in the financing agreement as well as Government of Uganda financial regulations. d) To establish whether the funds have been used in accordance with the conditions of the financing agreement, with due attention to economy and efficiency and only for the purposes for which they were provided. e) To establish whether procurement of goods and services under the program was done in accordance with the provisions of the financing agreement and Government of Uganda Procurement Regulations. f) To establish whether all necessary supporting documents, records and accounts have been kept in respect of all program activities, and are in agreement with the financial statements presented. 5.0 AUDIT PROCEDURES PERFORMED a. Revenue/Receipts Obtained a schedule of all programme funds provided by DANIDA and Government of Uganda and reconciled the amounts to the programme s cash books and bank statements. 2

b. Expenditure Reviewed the programme funding agreement to ascertain agreed budget line activities for the DANIDA funding and checked whether funds had been utilized in accordance with the approved work plan; Vouched transactions of the programme, in particular funding received and expenditures incurred during the period covered by the audit in order to establish that documentation in support of expenditure agreed with the amount and description on the payment vouchers and or applications, bank statements and was properly controlled and accounted for. 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 procurement of goods and services for the project and reconciled with the approved procurement plan. e. Fixed assets management Reviewed use and management of the assets of the project during the period under review. f. Periodic reports about project activities Reviewed the programme agreement provisions, and reconciled it to the project activities during the period under review. g. Programme financial statements Examined on a test basis, evidence supporting the amounts and disclosures in the programme financial statements; assessed the accounting principles used and significant estimates made by programme management as well as evaluating the overall financial statement presentation. 6.0 CATEGORIZATION AND SUMMARY OF FINDINGS 6.1 Categorization of findings The following system of profiling of the audit findings has been used to prioritise the implementation of audit recommendations: 3

No Category Description 1 High significance Has a significant/material impact, has a high likelihood of reoccurrence, and in the opinion of the Auditor General, it requires urgent remedial action. It is a matter of high risk or high stakeholder interest. 2 Moderate significance Has a moderate impact, has a likelihood of reoccurrence, and in the opinion of the Auditor General, it requires remedial action. It is a matter of medium risk or moderate stakeholder interest. 3 Low significance Has a low impact, has a remote likelihood of reoccurrence, and in the opinion of the Auditor General, may not require much attention, though its remediation may add value to the entity. It is a matter of low risk or low stakeholder interest. 6.2 Summary of Findings No Finding Significance 7.1 Unsatisfactory financial information Low 7.0 COMPLIANCE WITH FINANCING AGREEMENT PROVISIONS AND GOU FINANCIAL REGULATIONS It was noted that management complied in all material respects with the financing agreement provisions and Government of Uganda financial regulations except for the matter below. 7.1 Unsatisfactory financial information Review of payments revealed that expenditure vouchers and supporting documents to the tune of UGX.56,788,500 were not stamped paid contrary to best practice. Without crossing documents after effecting payments, there is a risk that the same document can be presented twice or more for payment leading to loss of funds. Details are as below; Date Voucher No. Particulars Amount (UGX) 2/6/2014 HQ/AW6/CQ02 Sport messages 4,725,000 6/01/2015 - Facilitation for Monitoring Place 6,283,000 of Detention Mbarara. 24/6/2015 HQ/AW6/CQ 16 Workshop Danida Activities in 33,637,000 Mbarara 10/6/2014 HQ/AW6/CQ 05/4 Developing Anti-torture radio 720,000 4

shows & skits 17/6/2015 HQ/AW6/CQ 08/2 Participating in security stake holders meetings 3,653,000 10/6/2014 HQ/AW6/CQ 05/3 Anti-torture radio shows, 720,000 T/shirts 10/6/2014 HQ/AW6/CQ 05/2 Radio talk shows & skits 720,000 17/6/2015 HQ/AW6/CQ 10 Airing Ant-torture messages in 1,600,000 Luo Karibu Fm. 05/06/2015 HQ/AW6/CQ 01 Production of Five skits on 750,000 torture 6/6/2014 HQ/AW6/CQ 04/1 Staff meeting with developing 1,900,000 Partners 17/6/2015 HQ/AW6/CQ 07/1 Workshop costs to the stake 2,080,500 holders Total 56,788,500 Management explained that the Commission s financial management policy provides for stamping all documents and that this was an oversight that management will avoid in future. I advised the Accounting Officer to ensure that financial management is adhered to in future. 5

APPENDIX 1 FINANCIAL STATEMENTS 6