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+![](assets_MWTS%20Report%20of%20Auditor%20General%202021/img-1616.jpg)
+
+# THE REPUBLIC OF UGANDA
+
+# REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE MINISTRY OF WORKS AND TRANSPORT (MoWT) FOR THE FINANCIAL YEAR
+
+**ENDED 30 TH JUNE 2021**
+
+# OFFICE OF THE AUDITOR GENERAL UGANDA
+
+---
+
+**TABLE OF CONTENTS**
+
+LIST OF ACRONYMS - 3  
+Opinion - 4  
+Basis for Opinion - 4  
+Key Audit Matters - 4  
+  1.0 Implementation of the Approved Budget - 4  
+Emphasis of Matter - 13  
+  2.0 Long outstanding advances - 13  
+Other Matter - 13  
+  3.0 Failure to maintain district road equipment - 13  
+  4.0 Grounded aircrafts used for training - 14  
+Other Reporting Responsibilities - 16  
+Report on the Audit of Compliance with Legislation - 16  
+  5.0 Delayed compensation of PAPs for the development of Kampala Port in Bukasa - 16  
+  6.0 Implementation of unplanned procurements - 17  
+  7.0 Delayed completion of road construction project - 17  
+  8.0 Planned procurements not implemented – UGX 7,465,000,000 - 18  
+  9.0 Delayed acquisition of land for the Right of Way (RoW) for the SGR project - 18
+
+---
+
+**LIST OF ACRONYMS**
+
+| **Acronym** | **Meaning** |  
+|---|---|  
+| **BEC** | Budget Execution Circular |  
+| **Bn** | Billion |  
+| **CGV** | Chief Government Valuer |  
+| **EACAA** | East African Civil Aviation Academy |  
+| **GCALA** | Guidelines for Compensation Assessment under Land Acquisition |  
+| **GoU** | Government of Uganda |  
+| **HR** | Human Resource |  
+| **ICT** | Information & Communication Technology |  
+| **INTOSAI** | International Organization of Supreme Audit Institutions |  
+| **ISSAIs** | International Standards of Supreme Audit Institutions |  
+| **KCCA** | Kampala Capital City Authority |  
+| **MDAs** | Ministries, Departments and Agencies |  
+| **MoFPED** | Ministry of Finance, Planning and Economic Development |  
+| **MoWT** | Ministry of Works and Transport |  
+| **NAA** | National Audit Act |  
+| **NTR** | Non-Tax Revenue |  
+| **OAG** | Office of the Auditor General |  
+| **PAPs** | Project Affected persons |  
+| **PBS** | Program Budgeting System |  
+| **PDU** | Procurement & Disposal Unit |  
+| **PFMA** | Public Finance Management Act |  
+| **PPDA** | Public Procurement & Disposal of Public Assets |  
+| **PS/ST** | Permanent Secretary / Secretary to the Treasury |  
+| **ROW** | Right of way |  
+| **SGR** | Standard Gauge Railway |  
+| **TI** | Treasury Instructions |  
+| **UCF** | Uganda Consolidated Fund |  
+| **UGX** | Uganda Shilling |  
+
+
+---
+
+# REPORT OF THE AUDITOR GENERAL ON THE AUDIT OF THE FINANCIAL STATEMENTS OF THE MINISTRY OF WORKS AND TRANSPORT FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2021
+
+# THE RT. HON. SPEAKER OF PARLIAMENT Opinion
+
+I have audited the accompanying financial statements of the Ministry of Works and Transport (MoWT) which comprise the Statement of Financial Position as at 30 th June 2021, the Statement of Financial Performance, Statement of Changes in Equity and Statement of Cash Flows together with other accompanying statements for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
+
+In my opinion, the financial statements of the Ministry of Works and Transport (MoWT) for the financial year ended 30 th June 2021 are prepared, in all material respects, in accordance with Section 51 of the Public Finance Management Act, 2015 and the Financial Reporting Guide, 2018.
+
+**Basis for Opinion**
+
+I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements Section of my report. I am independent of Ministry of Works and Transport in accordance with the Constitution of the Republic of Uganda 1995 (as amended), the National Audit Act, 2008, the International Organization of Supreme Audit Institutions (INTOSAI) Code of Ethics, the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B) (IESBA Code), and other independence requirements applicable to performing audits of Financial Statements in Uganda. I have fulfilled my other ethical responsibilities in accordance with the IESBA Code, and in accordance with other ethical requirements applicable to performing audits in Uganda.
+
+I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
+
+**Key Audit Matters**
+
+Key Audit atters are those matters that, in my professional judgment, were of most significance in my audit of the financial statements of the current period. These matters were addressed in the context of my audit of the financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters. I have determined the matters described below to be key audit matters communicated in my report.
+
+**1.0**
+
+# Implementation of the Approved Budget
+
+On the 24 th of April 2020, Parliament approved the annual budget for MDAs and LGs that contained the specific resource envelope allocated to each vote to implement agreed on outputs. Subsequently, the PS/ST issued a Budget Execution Circular that communicated the budget strategy, policy, and administrative issues to guide the budget implementation for the financial year 2020/2021.
+
+---
+
+During my overall risk assessment exercise, I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance’s issued by PS/ST, which has continued to affect the performance and credibility of the budget negatively. These challenges include; lack of strategic plans that are aligned to the National Development Plans, underperformance of revenue, implementation of off-budget activities, under absorption of funds, insufficient quantification of outputs, partial and non-implementation of outputs, diversion of funds and challenges in budget monitoring and reporting of performance.
+
+I am aware that the Covid-19 Pandemic continues to significantly affect the implementation of several activities. Consequently, a number of activities were not implemented due to budget cuts and lockdown measures instituted to control the spread of the pandemic. It is against this background that the implementation of the budget was again considered a key audit area during the office-wide planning for the current audit year.
+
+The Ministry of Works and Transport (MoWT) was established in May 2006 when Government re-organized Ministries, and is mandated to:
+
+- Plan, develop and maintain an economic efficient and effective transport infrastructure;
+- Plan, develop and maintain economic, efficient and effective transport services by road, rail, water and air;
+- Manage public works including government structures, and;
+- Promote good standards in the construction industry.
+
+To achieve this mandate, MoWT planned to implement both recurrent and capital development activities. A review of the entity’s ministerial policy statement and budget revealed that the entity had a revised approved budget of UGX 1,818.717 bn, out of which UGX 1,280.322 bn was warranted. Table 1 below shows a summary of the key outputs of the MoWT for the financial year 2020/21.
+
+| **No** | **Details** | **Budget (UGX) “000”** | **Cumulative percentage share of the total approved budget** |  
+|---|---|---|---|  
+| 1 | 040107 Safety of Navigation Programs Coordinated and Monitored | 25,633,264 | 1.4 |  
+| 2 | 040176 Purchase of Office and ICT Equipment Including Software | 19,450,000 | 2.5 |  
+| 3 | 040252 Rehabilitation of Upcountry Aerodromes by UCAA and Wages for UNACL Staff | 175,383,950 | 12.1 |  
+| 4 | 040254 Development of Standard Gauge Railway (SGR) Infrastructure | 19,000,000 | 13.2 |  
+| 5 | 040273 Roads, Streets and Highways | 200,450,000 | 24.2 |  
+| 6 | 040275 Purchase of Motor Vehicles and Other Transport Equipment | 539,719,100 | 53.9 |  
+| 7 | 040280 Construction / Rehabilitation of Inland Water Transport Infrastructure | 92,036,439 | 58.9 |  
+| 8 | 040281 Construction / Rehabilitation of Railway Infrastructure | 89,811,712 | 63.9 |  
+
+
+---
+
+| 9 | 040283 Border Post Rehabilitation / Construction | 298,883,115 | 80.3 |  
+|---|---|---|---|  
+| 10 | 040304 Monitoring and Capacity Building Support | 10,598,160 | 80.9 |  
+| 11 | 040402 Monitoring and Capacity Building | 13,288,450 | 81.6 |  
+| 12 | 040473 Roads, Streets and Highways | 116,432,487 | 88 |  
+| 13 | 040474 Major Bridges | 23,461,350 | 89.3 |  
+| 14 | 040481 Urban Roads Construction and Rehabilitation (Bitumen Standard) | 11,967,419 | 90 |  
+| 15 | 040505 Operation and Maintenance of MV Kalangala Ship | 35,488,000 | 91.9 |  
+| 16 | 040551 Transfers to Regional Mechanical Workshops | 16,588,600 | 92.8 |  
+| 17 | 044919 Human Resource Management Services | 24,080,823 | 94.1 |  
+|| **Total** | **1,712,272,869** | **94.1** |  
+
+
+MoWT planned to accomplish its budgetary objectives by implementing sixty three (63) outputs with a total approved budget of UGX.1,818.717bn. I sampled three (3) Programmes; 0404 District, Urban and Community Access Roads; 0403 Construction Standards and Quality Assurance and Programme: 0402 Transport Services and Infrastructure with thirty seven (37) outputs with a total of one hundred sixty eight (168) activities and a budget of UGX 1,315.281bn representing 72.3% of the total approved budget for review.
+
+From the procedures undertaken, I noted the following:
+
+| **No** | **Observation** | **Recommendations** |  
+|---|---|---|  
+| 4.1.1 | **Existence of a Strategic plan that is aligned to NDP-III** Paragraph 5 of the budget execution circular for the financial year 2020/2021 cites poor alignment of Government Budgets with the National Development Plans. The PS/ST urges Accounting Officers to ensure that all activities for Financial Year 2020/2021 are aligned with NDP III and implemented accordingly. Regulation 26 (1) of the National Planning Authority (development of Plans) regulations require entities to submit to NPA their five-year development plans for certification before approval. being the first year of implementation of the NDP-III, the entity was expected to prepare a strategic plan aligned to NDP III and ensure that the plan is approved. The strategic plan would then form the basis of the preparation of the entity’s annual plans. document review and interviews, I noted that the entity had prepared a strategic plan. However, this had not been approved by NPA by the end of the year under review. is a risk that activities implemented during the FY 2020/21 were not aligned to NDP III, which negatively affects the achievement of NDP III objectives. Accounting Officer pledged to work closely with NPA in-order for This Through There The | I advised the Accounting Officer to follow up with NPA for the approval of the Strategic plan to ensure achievement of the NDP III objectives |  
+
+
+---
+
+|| the strategic plan to be approved. ||  
+|---|---|---|  
+| 4.1.2 | I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that MoWT did not budget to collect NTR during the year under review. the review of financial statements indicated that NTR amounting to UGX. 6,995,230,920 was collected during the year under review. for NTR collections at the vote level results in an aggregate revenue under budgeting at the Treasury level, which negatively affects planning at a Government-wide level. Accounting Officer explained that the NTR figures were not captured because PBS was not formatted to capture NTR estimates. **of GoU receipts** The Ministry budgeted to receive UGX.1,818.717Bn (including donor funding) out of which UGX.1,4905.60Bn (UGX1,280.322bn GOU warrants and UGX 210.77bn donor funding) was warranted/availed resulting in a shortfall of UGX.327.625bn, which is 18% of the revised budget. Revenue shortfalls affect the implementation of planned activities. **Revenue Performance Performance of NTR** However, Non-budgeting The **Performance** | I advised the Accounting Officer to always ensure that NTR  is budgeted for. collection |  
+| 4.1.3 | Out of the total warrants of UGX.1,280.322Bn received during the financial year, UGX.1,067.967Bn was spent by the entity resulting in an unspent balance of UGX. 212.355Bn representing absorption level of 83.4%. The unspent funds were swept back to the consolidated fund as required by the PFMA. The funds were meant for activities that were not fully implemented by the end of the financial year. **Absorption of funds** further noted that the entity did not seek a revision of its budget and work plan as provided for by section 17 (3) of the PFMA2015. I | I advised the Accounting Officer to ensure that all funds availed are absorbed. Where reallocations are found necessary, I  the Accounting Officer to seek for revision of the entity’s budget and work plan. advised |  
+| 4.1.4 | **Quantification of outputs/activities** Section 13 (15, b) of the PFMA 2015 states that a policy statement submitted by a vote shall contain the annual and three months’ work plans, outputs, targets and performance indicators of the work plans. Regulation 11 (3) of PFMR 2016 requires that a vote prepares a work plan that indicates the outputs of the vote for the financial year; the indicators to be used to gauge the performance of the outputs and funds allocated to each activity. assess the performance of an output, all activities supporting the output must be quantified. reviewed the extent of quantification of outputs and activities for a sample of thirty seven (37) outputs with a total of one hundred sixty I To | I commended the Accounting Officer for ensuring that all activities and out- puts are fully quantified  at planning  to facilitate  performance measurement. level I advised the  Accounting However, |  
+
+
+---
+
+|| eight (168) activities and expenditure of UGX. 779.62Bn and noted they were fully quantified. That is, all the one hundred sixty eight (168) activities (100%) within these outputs were clearly quantified to enable the assessment of performance. The **Table** refers. **Summary of Performance by Outputs** Activity details-Analysis** **Catego**  **ry of**  **output** s** **No.** of outp uts samp led** **% of total outp uts samp led** **% prop ortio n to total expe nditu re** **Tota l no of acti vitie s in the outp uts** **No. of Full y Qua ntifi ed acti vitie** **s**  168 **Exp end itur e UG X Bn** 779. 62 **No of activi ties not fully quan tified** **% of quanti ficatio n of activiti es per catego ry of output** 37 33.6 73 168 0 100 noted that MOWT did not have unit cost estimates at activity level to provide a link between inputs, processes, outputs and intermediate outcomes realized during the year. **Fully quantif ied outputs** I |<|<|<|<|<|<|<|<|<|<|<|<|<|<|<|<| Officer to ensure that there are unit cost estimates at activity level to provide a link between  inputs, processes  and outputs. |  
+|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|  
+| **Summary of Performance by Outputs** |^|<|<|<|<|<|<|<|<|<|<|<|<|<|<|<|<|^|  
+| **Catego ry of output s** |^|<|<|<|<|<|<|<|<|<|<|<|<|<|<|<|<|^|  
+| **Fully quantif ied outputs** |^|<|<|<|<|<|<|<|<|<|<|<|<|<|<|<|<|^|  
+| noted that MOWT did not have unit cost estimates at activity level to provide a link between inputs, processes, outputs and intermediate outcomes realized during the year. I |^|<|<|<|<|<|<|<|<|<|<|<|<|<|<|<|<|^|  
+| 4.1.5 | I assessed the implementation of thirty seven (37) outputs that were fully quantified with a total of one hundred and sixty eight (168) activities worth UGX.779.621Bn and noted that; Four (4) outputs with seven (7) activities and expenditure worth UGX 543.224Bn were fully implemented. That is all the seven (7) activities within these outputs were fully implemented.  Thirty (30) outputs with one hundred and fifty seven (157) activities worth UGX.236.397Bn were partially implemented. Out of the one hundred and fifty seven (157) activities, the entity fully implemented forty seven (47) activities, and seventy two (72) activities were partially implemented while thirty eight (38) activities remained unimplemented.  Three (3) outputs with four (4) activities worth UGX.0.0Bn were not implemented. That is none of the four (4) activities was implemented at all because budgeted funding was not availed. **The Table below refers:** **% prop ortio n to total expe nditu** **Tot al no of acti viti** **No of** **Full y imp lem** **No.** **Of parti ally impl eme** **No of activiti es that were not imple mente** **Exte nt of impl eme ntati on of activi** **% of imp lem ent atio** **Exp end itur e** **UG** **of** **N o** **o** **p** **Cate gory of outp ut** **Summary of Performance by Output** **Activity details-Analysis** **Implementation of quantified outputs**  **ut** **ut** |<|<|<|<|<|<|<|<|<|<|<|<|<|<|<|<| I advised the Accounting Officer to ensure that outputs are implemented as planned and where funds are not availed, to seek for revision of the entity work plan. |  
+|^|^|<|<|<|<|<|<|<|<|<|<|<|<|<|<|<|<|^|  
+|^|^|<|<|<|<|<|<|<|<|<|<|<|<|<|<|<|<|^|  
+
+
+---
+
+######### s n X re es ent nted d ties
+
+**ed activi**
+
+######### Bn acti ties per viti
+
+######### cate es
+
+######### gory of outp ut
+
+######### Fully impl eme
+
+543.  
+4 10.8 42.17 7 7 0 0 100
+
+######### nted
+
+22
+
+######### outp
+
+**uts 1**
+
+######### Parti ally Impl
+
+236.  
+**eme** 30 81.1 18.35 157 47 72 38 45.86 39
+
+######### nted
+
+######### outp
+
+**uts 2**
+
+######### Outp uts Not
+
+3 8.1 0.0 0.0 4 0 0 4 100
+
+######### Impl
+
+######### eme
+
+**nted 3**
+
+######### 3 779 60.5 Total 100 168 54 72 42 7 .61 2
+
+Non-implementation of planned activities implies that the expected services to the beneficiary communities were not attained. For example, the MoWT did not implement the following planned activities despite having received the required funds;
+
+1. Bridge inventory Data for BMS not collected.
+2. Bridge management System (BMS) Software not procured
+3. Upgrading to Bitumen Standard Sebbowa road (1.0km) in Makindye Ssabagabo Municipal Council was not implemented.
+
+4. Study for the determination of design load factors and traffic capacity assessment on selected DUCAR roads in Adjumani and Moyo under DINU not undertaken.
+
+The Accounting Officer explained that implementation of majority of the above activities was affected by the covid-19 pandemic and the nationwide lockdown during quarter two and three of the financial year. In addition, budget cuts by MOFPED affected the planned implementation of activities.
+
+1 Fully implemented output **-All** the activities within the outputs are fully implemented  
+2 Partially implemented Output-Activities within the output are either; Fully implemented, partially implemented or not implemented 3 Outputs not implemented-All the activities within the output not implemented at all  
+9
+
+---
+
+| 4.1.6 | **Achievement of intended services from implemented outputs-** I undertook an assessment to establish whether there has been service delivery from a sample of outputs that were implemented and noted the following: **Output Activities/Details Audit comments** **details**  40252  Rehabilitation  of Upcountry  Aerodromes  (CAA) 100% civil works for Expansion of Apron 1 for Entebbe airport completed at a cost of  UGX 149,683,950,000  10% of civil works at New Passenger Terminal Complex for Entebbe airport completed; Output: 40304 Monitoring and Capacity Building Support Technical  support services rendered to MDAs and 40 reports prepared. 8 buildings assessed for structural integrity 98% civil works for Expansion of Apron 1 for Entebbe airport were completed contrary to reported 100% 0% of civil works at New Passenger Terminal Complex for Entebbe airport  Done. This was attributed to delayed movement of cargo from where the passenger terminal was supposed  to another area. This has limited service delivery provision to the public.  6 out of the 40 planned MDAs were provided technical support services and reports prepared. to be constructed 1 out of the 8 investigations  construction  accidents conducted and prepared. planned building fire-related report and on failure to achieve the intended services from the implemented outputs negates the purpose of budgeting and implementing these activities. Accounting Officer explained that the Covid-19 lockdown restrictions affected progress of works coupled with budget cuts which led to partial or non-implementation of planned outputs. The The |<|<|<| I advised the Accounting Officer to address the gaps noted in the implementation of these outputs to enable  the communities  fully benefit  the projects/programms implemented Government. from by |  
+|---|---|---|---|---|---|  
+|^|^|<|<|<|^|  
+|^|^|<|<|<|^|  
+|^|^|<|<|<|^|  
+|^|^|<|<|<|^|  
+|^|^|<|<|<|^|  
+|^|^|<|<|<|^|  
+| 4.1.7 | **Submission of Quarterly Performance Reports** Paragraph 8.12 (4,5,6) of the Treasury Instruction 2017, require the Accounting Officer to prepare reports for each quarter of the Financial Year in respect of the vote for which he/she is responsible. These reports shall contain financial and non-financial information on the performance of the vote and shall be submitted to Treasury not later than 15 days after the end of each quarter. noted that the entity submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports. The **Table** below shows the delays per quarter on submission of budget performance reports; I |<|<|<| I advised the Accounting Officer to ensure  that performance reports are prepared and submitted in time. |  
+
+
+---
+
+######### No Details Deadline Actual date Comment
+
+**for of (submitted in submission submission time/ delayed)** 1 Quarter One 15/10/2020 16/01/2021 Delayed  
+2 Quarter Two 15/01/2021 17/02/2021 Delayed  
+3 Quarter Three 15/04/2021 25/05/2021 Delayed  
+4 Quarter Four 15/07/2021 03/08/2021 Delayed
+
+Failure to submit performance reports in time and failure to prepare monitoring reports contravenes the Treasury Instructions and affect timely tracking and evaluation of performance.
+
+The Accounting Officer explained that the delays were as a result of the nationwide lockdown due to the COVID-19 outbreak that affected timely validation of data and reporting.
+
+4.1.8 **Accuracy of Performance reports submitted**  
+I advised the From my review of the annual performance reports and physical Accounting Officer to inspections/verification of outputs reported coupled with interviews, I report  
+accurate noted inconsistencies in the reported performance, as shown in the performance.  
+**Table** below:
+
+######### Output Reported Target in the Q4 report
+
+######### Verified Achieved Target by the Audit team
+
+Output: 40402  
+271No. road camps Only 147. road camps surveyed Monitoring and surveyed  
+capacity building
+
+contrary to the reported 271 road camps that were reported by support for management  
+district road  
+30No. road reserves Only 24 road reserves out of the works surveyed planned 40 surveyed. This is contrary to what was reported in the performance report by management.  
+Roads Database of  
+Only Roads Database of 5 Districts 90No. Districts  
+were updated  
+updated  
+4No. MoWT trained None of the 20 planned MoWT in HDM4  
+staff were trained in HDM4 And
+
+Output: 40304  
+145km of District
+
+Civil Cad 3D
+
+Only 20km of District Roads were Monitoring and Roads gravelled in gravelled in Kapelebyong, Capacity Building Kapelebyong,  
+Kaberemaido, Serere, Butaleja, Support Kaberemaido, Tororo, Katakwi, Nebbi, Apac, Serere,Butaleja, Oyam, Arua, Napak, Moroto, Tororo, Katakwi, Masaka, Mubende, Kiboga, Nebbi, Apac,Oyam, Butambala, Nakaseke, Arua, Napak,  
+Nakasongola using Force Account; Moroto,  
+Masaka,Mubende,  
+Kiboga, Butambala,  
+Nakaseke,Nakasong  
+ola using Force  
+Account;
+
+---
+
+100 Km of  
+50 Km of community access roads community access in Arua, roads in Arua,  
+Kyegegwa,Kakumiro,Kasese,Ntoro Kyegegwa,Kakumiro ko, Rubanda, Kayunga, Kasese,Ntoroko,Ru Mukono,Buikwe, Luwero, Wakiso, banda, Kayunga, Soroti, Mayuge, Kamuli, Kaliro, Mukono,Buikwe,  
+Buyende,Namutumba,Amuria,Alep Luwero, Wakiso,  
+tong, Kwen,Budaka, Tororo were Soroti, Mayuge, rehabilitated;  
+Kamuli, Kaliro,  
+Buyende,Namutumb  
+a,Amuria,Aleptong,  
+Kwen,Budaka,  
+Tororo rehabilitated  
+Output: 40301 Construction  
+Construction Standard issues were Policies, laws, Standard issues disseminated to 35 districts guidelines, plans disseminated to 135 contrary to the reported 135  
+and strategies districts  
+Output: 40303 1,100  
+No. 280 construction materials tests Monitoring Construction reports produced;  
+Compliance of Materials testing  
+Construction reports produced  
+Standards and 06 No. projects Only 4 Projects were Assessed for undertaking  
+Assessed for Gender  
+Research and Equity  
+Compliance
+
+Gender and Equity Compliance
+
+Output: 40304 40No. Monitoring and Technically
+
+MDAs Only 10 technical support services were rendered to MDAs and Capacity Building Supported and Reports prepared.  
+Support where necessary  
+report prepared  
+6No.  
+buildings Only 1 building was assessed for assessed for structural integrity  
+structural integrity  
+Output: 40306 5No. investigations Only 1 investigation on Makerere Construction on  
+building University fire was conducted and related accidents construction and report prepared.  
+investigated  
+fire-related  
+accidents conducted  
+and  
+reports  
+prepared
+
+Inaccurate reporting of performance misleads the users of this financial information and casts doubt on the reliability and authenticity of the information (both Financial and Non-financial) presented by the entity.
+
+The Accounting Officer explained that the inconsistencies in reporting were as a result of the delay by MOFPED to undertake timely adjustments on the Integrated Financial Management System (IFMS) in the quarter summary analysis report (BIG Report) to enable the entity use adjusted expenditure figures as at 30 th July before production of the vote budget performance report. In addition, the Accounting Officer explained that adjustments are delayed by two months after end of the financial year (August-September) yet the 4 th quarter cumulative annual report is produced not later than 30 th July of every financial year.
+
+---
+
+**Emphasis of Matter**
+
+Without modifying my opinion, I would like to draw the readers’ attention to the following matter(s) which have been disclosed in the financial statements of the Ministry:
+
+# 2.0 Long outstanding advances
+
+Review of Receivables in the Statement of Financial Position and Note 19 revealed that the Ministry had receivables worth UGX.1,570,776,843 out of which those worth UGX.623,855,947 were outstanding at the end of the previous year.
+
+The likelihood of eventual clearance of the receivables that have been outstanding for over a year therefore seemed remote.
+
+The Accounting Officer explained that the figure included the loss which was incurred in 2008, where the MoFPED staff that were attached as IT support, created a fictitious company on IFMS.
+
+I advised the Accounting Officer to follow up on the clearance of the advances as soon as possible.
+
+# Other Matter
+
+In addition to the matters raised above, I consider it necessary to communicate the following matters other than those presented or disclosed in the financial statements:
+
+**3.0**
+
+# Failure to maintain district road equipment
+
+The inspection of the Ministry’s Regional Mechanical Workshops during August and September 2021 revealed that twenty one (21) units of district road equipment had been lying in the workshops’ yards for more than a year without repair. The equipment included: thirteen (13) motor graders of different models; four (4) bulldozers; One (1) pickup; two (2) dump trucks, and one (1) wheel loader.
+
+In addition, requests for 136 tyres for running district road equipment were not honoured during the year.
+
+This means that the districts that own the concerned equipment could not maintain their roads and deliver such critical service to the country as planned. In addition, the cost of repair is escalating because other parts also become faulty when the equipment is grounded for a long time.
+
+The Accounting Officer explained that the amount budgeted and received to maintain road equipment represents 30% of the total funds (UGX44.6bn) required for equipment maintenance. Hence, during the FY 2020/21, the Ministry prioritized mainly the servicing of the newly acquired equipment from Japan leaving out the older equipment (from China) that requires major repairs but have no budget. Maintenance of district equipment is one of the critically underfunded activities in the Ministry.
+
+The Accounting Officer also said that it is true that a number of road equipment in the districts lack tyres. This is mainly due to an inadequate maintenance budget for the equipment.
+
+---
+
+I advised the Accounting Officer to liaise with the responsible authorities to obtain the necessary funding for the full maintenance of the equipment so that the equipment operates and serves the Districts.
+
+**4.0**
+
+# Grounded aircrafts used for training
+
+Audit inspection and review of the East African Civil Aviation Academy (EACAA) in Soroti; and review of the Academy’s assets register and aircraft annual serviceability status report of 06/09/2021 revealed that 3 out of the 9 aircrafts were grounded due to non- repair and maintenance. The aircrafts were (registration numbers): 5X-RWE grounded due to a defective fuel injector pump; 5X-UAN grounded for mandatory structural modification and 5X -YKM grounded for a propeller overhaul.
+
+It was further noted that their certificates of airworthiness (C and A) for had expired. This made it difficult for the Academy to offer practical training.
+
+Management explained that this was due to reasons beyond their control such as delay by the foreign contractor to commence repairs of 5X-UAN 310 due to the closure of the boarders immediately after the signing of the contract. Management further stressed that the academy had challenges in the procurement of spares for the aircraft due to global delays due to the effects of COVID-19.
+
+I advised the Accounting Officer to follow up with the contractor to ensure that the aircrafts are repaired as soon as the situation normalizes.
+
+# Other Information
+
+The Accounting Officer of MoWT is responsible for the other information. The other information comprises the statement of responsibilities of the Accounting Officer and the commentaries by the Head of Accounts and the Accounting Officer, and other supplementary information. The other information does not include the financial statements and my auditors’ report thereon. My opinion on the financial statements does not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.
+
+In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially consistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information; I am required to report that fact.
+
+I have nothing to report in this regard.
+
+# Management Responsibilities for the Financial Statements
+
+Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 of the Public Finance Management Act, 2015, the Accounting Officer is accountable to Parliament for the funds and resources of the Ministry.
+
+The Accounting Officer is also responsible for the preparation of financial statements in accordance with the requirements of the Public Finance Management Act, 2015 and for such internal control as management determines necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.  
+14
+
+---
+
+In preparing the financial statements, the Accounting Officer is responsible for assessing the Ministry’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Accounting Officer has a realistic alternative to the contrary.
+
+The Accounting Officer is responsible for overseeing the Ministry’s financial reporting process.
+
+# Auditor’s Responsibilities for the Audit of the Financial Statements
+
+My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISSAIs will always detect a material misstatement, when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users, taken on the basis of these financial statements.
+
+As part of an audit in accordance with ISSAIs, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:-
+
+- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
+
+- Obtain an understanding of internal control relevant to the audit 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 Ministry’s internal control.
+
+- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
+
+- Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Ministry’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Ministry to cease to continue as a going concern.
+
+- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
+
+I communicate with the Accounting Officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
+
+---
+
+I also provide the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards.
+
+From the matters communicated with the Accounting Officer, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
+
+**Other Reporting Responsibilities**
+
+In accordance with Section 19 (1) of the National Audit Act, 2008, I report to you, based on my work described on the audit of Financial Statements, that; except for the matters raised in compliance with legislation section below, and whose effect has been considered in forming my opinion on financial statements, the activities, financial transactions and information reflected in the financial statements that have come to my notice during the audit, are in all material respects, in compliance with the authorities which govern them.
+
+# Report on the Audit of Compliance with Legislation
+
+In accordance with Section 13 of the NAA 2008, I have a responsibility to report material findings on the compliance of the Authority with specific matters in key legislations. I performed procedures primarily to identify findings but not to gather evidence to express assurance.
+
+The material findings in respect of the compliance criteria for the applicable subject matters are as follows;
+
+**5.0**
+
+# Delayed compensation of PAPs for the development of the New Kampala Port in Bukasa
+
+Paragraph 11 of the land acquisition procedure of Appendix 1 in the Guidelines for Compensation Assessment under Land Acquisition (GCALA) of June 2017 states that the period from final report approval to payment of compensation awards shall not exceed 6 months.
+
+The valuation report for 2,378 PAPs with a total compensation sum of UGX 29.2 billion was approved by the Chief Government Valuer in October 2018. The review of documents indicated that a total of 1,253 PAPs with a total compensation value of UGX.19.5 billion had been paid by 30 th June 2021. As a result a total of 1,125 PAPs with a total compensation value of UGX.9.7 billion have remained unpaid for about three years.
+
+Delayed compensation of PAPs delays implementation of the project leading to escalation of the project cost.
+
+---
+
+The Accounting Officer explained that the Ministry budgeted for the remaining funds UGX 9.7Bn in the FY 2021/22 that was approved by the Ministry of Finance, Planning and Economic Development. The Ministry has compensated 1,704 PAPs out of 2,378 PAPS as at 30 th October 2021. The remaining 674 PAPS will be compensated this FY 2021/22.
+
+I advised the Accounting Officer to ensure that the budgeted funds are realised so that compensation is completed and works start in the FY 2021/2022.
+
+**6.0**
+
+# Implementation of unplanned procurements
+
+Section 15(1) of the PFMA, 2015 provides that “after approval of the annual budget by Parliament, the Secretary to Treasury shall issue the annual cash-flow plan of Government, based on the procurement plans, work plans and recruitment plans approved by Parliament”.
+
+In addition, section 21(1) provides that “an Accounting Officer shall, based on the annual cash-flow plan issued by the Secretary to the Treasury under section 15, plan and manage the activities as indicated in the policy statement of the vote”.
+
+A review of procurement records revealed that procurements worth UGX 1,772,908,757 which were not planned were implemented by the Ministry.
+
+Implementation of unplanned procurements is not only contrary to the PPDA Act, but it negatively affects the implementation of planned procurements and defeats the purpose for procurement planning.
+
+Although the Accounting Officer explained that the the procurements were planned, I was not availed evidence to support the assertion.
+
+I advised the Accounting Officer to always implement the budget basing on the procurement plans and work plan as approved by Parliament.
+
+**7.0**
+
+# Delayed completion of road construction project
+
+The review of procurement reference number MoWT/WRKS/2018/19/00191 indicated that the Ministry entered into a contract with M/s Probase Manufacturing SDN BHD and Abubaker Technical Services and General Supplies Limited JV on 16 th May, 2019 for piloting the use of probase technology for construction of roads in Uganda. The contract was for designing and building Kayunga - Nabuganyi and Nansana – Kireka - Bbira roads at a total cost of UGX.45,349,361,632. The contract provided that the works were to be completed by 01/07/2020.
+
+However, the examination of records indicated that contract spilled over into the year under review and t payments amounting to UGX.10,907,877,818 were made during the year.
+
+The intended objective of piloting the technology in Uganda was not achieved.
+
+The Accounting Officer explained that the contract implementation spilled over to the year under review due to the following reasons;
+
+---
+
+1. The contractor encountered unforeseen adverse physical conditions along the swamp section on the Kayunga – Nabuganyi road (20.2km) such as soft ground high water table measuring up to a length of 4.65km which necessitated special treatment such as the use of rockfill, geosynthetics, and embankment construction to avert possible premature defects and failure of the road. The extra works required extra time for both construction and also allow for consolidation of the new fill sections to warrant stability.
+
+2. The employer required additional works.
+
+3. The outbreak of the COVID-19 pandemic across the world led to difficulty in site operations, worker movements and general mobility of supplies. For instance, the factories manufacturing inputs for the technology (Probase TX-85 soil stabilizers and Probase PB-65 sealants) in Malaysia were closed to curb the spread of the virus for some time and on reopening the factories, shipping schedules became a challenge.
+
+A lot of time lost is attributed to that.
+
+I advised the Accounting Officer to closely supervise the contract to ensure that the project is completed by the extended timeline.
+
+**8.0**
+
+# Planned procurements not implemented – UGX 7,465,000,000
+
+Section 15(1) of the PFMA, 2015 provides that “after approval of the annual budget by Parliament, the Secretary to Treasury shall issue the annual cash-flow plan of Government, based on the procurement plans, work plans and recruitment plans approved by Parliament”.
+
+In addition, section 21(1) provides that “an Accounting Officer shall, based on the annual cash-flow plan issued by the Secretary to the Treasury under section 15, plan and manage the activities as indicated in the policy statement of the vote”.
+
+A review of the procurement plan and the procurement reports to PPDA indicated that procurements worth UGX.7,465,000,000 which were planned were not implemented.
+
+The Ministry did not manage the procurement activities as indicated in the policy statement and hence not all planned services were delivered.
+
+The Accounting Officer explained that some procurements were not implemented due to budget cuts and thus lack of funds.
+
+I advised the Accounting Officer to always liaise with the responsible authorities to ensure that the Ministry’s approved budget is fully availed.
+
+**9.0**
+
+# Delayed acquisition of land for the Right of Way (RoW) for the SGR project
+
+Objective 1 of the project strategic plan for 2016-2020 was to acquire 5200 acres of land free of encumbrances at an estimated cost of UGX 534,600,000,000 for the Right of Way (ROW) for the construction of Kampala – Malaba SGR route by October 2016.
+
+---
+
+However, the review of documents indicated that only 1,295.98 (24.9%) acres of land had been acquired at a cost of UGX.95,361,767,388 (18%) as of September 2021.
+
+It was further noted that the project had not acquired titles for the pieces of land already paid for.
+
+Delayed acquisition of the Right of Way is likely to delay project implementation. As a result, the intended objectives of the project may not be achieved.
+
+The Accounting Officer explained that currently, land acquisition is one of the core activities of the project. Valuation reports for the section between Tororo-Mayuge and Kakubansiri village in Buikwe district and Fish Ponds worth UGX 139.35bn were approved by the CGV starting from 2016. The amount paid to Project Affected Persons (PAPs) as compensation for land and property is directly dependent on the approved budgets and subsequent releases to the project. The releases however have been going down in comparison to the annual budgets. For example: in 2016/2017, UGX46.8bn was released out a budget of UGX113.5bn; in 2017/2018, UGX25.5bn was released out of a budget of UGX72.5bn; in 2018/2019, UGX25bn was released out of a budget of UGX39.2bn and in 2019/2020, UGX16.8bn was released out of a budget of UGX20bn. It is only in 2020/2021 where the budget was UGX19bn and all of it was released.  
+The Accounting Officer further explained that due to the passing of time from 2016 when assessment and valuation of PAPs in the section between Jinja-Kampala was done, reassessment and revaluation is on-going as advised by the CGV on this section where the compensation estimate was UGX 432.47bn in 2016.
+
+I advised the Accounting Officer to obtain and transfer land titles to Government for the land paid for and expedite the acquisition of all the land needed for the project.
+
+![](assets_MWTS%20Report%20of%20Auditor%20General%202021/img-1611.jpg)
+
+John F.S. Muwanga
+
+# AUDITOR GENERAL
+
+**24 th December, 2021**
+

data/MWTS Report of Auditor General 2022.md

@@ -0,0 +1,560 @@
+OFFICE OF THE AUDITOR GENERAL  
+OFFICE OF THE AUDITOR GENERAL  
+UGANDA
+
+![](assets_MWTS%20Report%20of%20Auditor%20General%202022/img-2950.jpg)
+
+# THE REPUBLIC OF UGANDA
+
+# REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF MINISTRY OF WORKS AND TRANSPORT (MoWT)
+
+**FOR THE FINANCIAL YEAR ENDED 30 TH JUNE 2022**
+
+---
+
+**TABLE OF CONTENTS**
+
+List of Acronyms - iii  
+Opinion - 1  
+Basis for Opinion - 1  
+Key Audit Matter - 1  
+  1.0 Implementation of the Approved Budget - 1  
+  2.0 Management of Public Land - 5  
+Other Matter - 7  
+  3.0 Un-Recovered Advance Payment-EURO.8,854,839.68 - 7  
+Other Information - 7  
+Management Responsibilities for the Financial Statements - 8  
+Auditor’s Responsibilities for the audit of the Financial Statements - 8  
+Other Reporting Responsibilities - 9  
+Report on the Audit of Compliance with Legislation - 9  
+  4.0 Management of Information Technology (IT) Investments in Government - 9  
+  5.0 Implementation of the PDM by Ministry of Works and Transport - 11  
+  5.1 Implementation of the expected deliverables before full roll out of the PDM - 12  
+6.0 Delayed Completion of the consultancy for the unit cost study for road construction  
+and maintenance in Uganda - 13  
+Appendix I: Outputs affected by budget cuts - 14  
+Appendix II: Extent of Implementation of Outputs and Activities - 16  
+Appendix III: Mischarge of expenditure Error! Bookmark not defined.
+
+---
+
+**List of Acronyms**
+
+| **Acronym** | **Meaning** |  
+|---|---|  
+| **BEC** | Budget Execution Circular |  
+| **Bn** | Billion |  
+| **CGV** | Chief Government Valuer |  
+| **EACAA** | East African Civil Aviation Academy |  
+| **GCALA** | Guidelines for Compensation Assessment under Land Acquisition |  
+| **GoU** | Government of Uganda |  
+| **HR** | Human Resource |  
+| **ICT** | Information & Communication Technology |  
+| **INTOSAI** | International Organization of Supreme Audit Institutions |  
+| **ISSAIs** | International Standards of Supreme Audit Institutions |  
+| **KCCA** | Kampala Capital City Authority |  
+| **MDAs** | Ministries, Departments and Agencies |  
+| **MoFA** | Ministry of Foreign Affairs |  
+| **MoFPED** | Ministry of Finance, Planning and Economic Development |  
+| **MoWT** | Ministry of Works and Transport |  
+| **NAA** | National Audit Act |  
+| **NTR** | Non-Tax Revenue |  
+| **OAG** | Office of the Auditor General |  
+| **PAPs** | Project Affected Persons |  
+| **PBS** | Program Budgeting System |  
+| **PDM** | Parish Development Model |  
+| **PDU** | Procurement & Disposal Unit |  
+| **PFMA** | Public Finance Management Act |  
+| **PPDA** | Public Procurement & Disposal of Public Assets |  
+| **PS/ST** | Permanent Secretary / Secretary to the Treasury |  
+| **ROW** | Right of Way |  
+| **SGR** | Standard Gauge Railway |  
+| **TI** | Treasury Instructions |  
+| **UCF** | Uganda Consolidated Fund |  
+| **UGX** | Uganda Shilling |  
+
+
+---
+
+# REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF MINISTRY OF
+
+**WORKS AND TRANSPORT**
+
+# FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2022
+
+# THE RT. HON. SPEAKER OF PARLIAMENT
+
+# Opinion
+
+I have audited the accompanying financial statements of the Ministry of Works and Transport (MoWT) which comprise the Statement of Financial Position as at 30 th June, 2022, the Statement of Financial Performance, Statement of Changes in Equity and Statement of Cash Flows together with other accompanying statements for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
+
+In my opinion, the financial statements of the Ministry of Works and Transport (MoWT) for the financial year ended 30 th June, 2022 are prepared, in all material respects, in accordance with Section 51 of the Public Finance Management Act, 2015 and the Financial Reporting Guide, 2018.
+
+**Basis for Opinion**  
+I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements Section of my report. I am independent of Ministry of Works and Transport in accordance with the Constitution of the Republic of Uganda 1995 (as amended), the National Audit Act, 2008, the International Organization of Supreme Audit Institutions (INTOSAI) Code of Ethics, the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B) (IESBA Code), and other independence requirements applicable to performing audits of Financial Statements in Uganda. I have fulfilled my other ethical responsibilities in accordance with the IESBA Code, and in accordance with other ethical requirements applicable to performing audits in Uganda.
+
+I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
+
+**Key Audit Matter**  
+Key Audit Matters are those matters that, in my professional judgment, were of most significance in my audit of the financial statements of the current period. These matters were addressed in the context of my audit of the financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters. I have determined the matters described below to be key audit matters communicated in my report.
+
+**1.0**
+
+# Implementation of the Approved Budget
+
+Paragraph 2 of schedule 5 of the PFMA requires Accounting Officers to prepare an appropriation account showing the services for which the money expended were voted, the sums actually expended on each service and the state of each vote compared with the amount appropriated for that vote by Parliament.
+
+Over the years, I have observed improvements in the performance regarding implementation of the budget but entities still face a number of challenges including COVID-19, which continue to affect implementation of activities, service delivery and
+
+---
+
+credibility of the budget. It is against this background that budget performance was considered a key audit area during the office-wide planning. I reviewed documents such as work plans, performance reports, conducted interviews and physical inspection in arriving at my findings.
+
+The MoWT is mandated to plan, develop and maintain an economic, efficient and effective transport infrastructure and services by road, rail, water, air and pipeline; manage public works including Government structures and promote good standards in the construction industry in support of the overall vision of government to bring about socio-economic transformation in the country.
+
+The Ministry had a revised approved budget of UGX.836,607,573,082, out of which, UGX.767,113,898,027 was warranted. The Ministry’s key deliverables for the financial year under review were:-
+
+### Table 1: Key deliverables for MoWT for the year
+
+| **No** | **Output** | **Details** | **Budget (UGX) “000”** | **Cumulative % share of the total approved budget** |  
+|---|---|---|---|---|  
+| **1** | 52 | Contributions to National, Regional and International Organizations | 186,847,396 | 22.3 |  
+| **2** | 83 | Border Post Rehabilitation/Construction | 178,584,883 | 43.6 |  
+| **3** | 73 | Roads, Streets and Highways | 123,891,000 | 58.4 |  
+| **4** | 80 | Construction/Rehabilitation of Inland Water Transport Infrastructure | 95,997,248 | 69.9 |  
+| **5** | 05 | Water and Rail Transport Programmes Coordinated and Monitored. | 63,295,890 | 77.5 |  
+| **6** | 81 | Construction/Rehabilitation of Railway Infrastructure | 60,591,014 | 84.7 |  
+| **7** | 75 | Purchase of Motor Vehicles and Other Transport Equipment | 46,763,817 | 90.3 |  
+| **8** | 02 | Road Safety Programmes Coordinated and Monitored | 24,651,296 | 93.2 |  
+| **9** | 72 | Government Buildings and Administrative Infrastructure | 23,760,000 | 96 |  
+| **10** | 01 | Policies, laws, guidelines, plans and strategies | 23,332,601 | 98.8 |  
+||| **Total** | **827,715,145** | **98.8** |  
+
+
+I reviewed the implementation of the approved 2021/2022 budget by the entity and noted the following.
+
+| **No** | **Observations** | **Recommendations** |  
+|---|---|---|  
+| **1.1** | **Revenue Performance** ||  
+|| **Performance of Non-Tax Revenue (NTR)**  I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2021/2022 and noted that the entity budgeted to collect NTR of UGX.215.63Bn during the year under review. Out of this, only UGX.209.00Bn was collected, representing a performance of 97% of the target. was however, noted that the NTR target was set by MoFPED without the participation of the Accounting Officer. I could not therefore confirm whether this target was realistic. It | I advise the Accounting Officer to ensure that the promised action is followed up and implemented. |  
+
+
+---
+
+| The Accounting Officer explained that during the BFP preparation for FY 2023-24 the Ministry has engaged MoFPED to ensure that realistic NTR projections are made. |<|<|<|<|<|<|<|<|<|  
+|---|---|---|---|---|---|---|---|---|---|  
+| **Performance of GoU receipts** |<|<|<|<|<|<|<|<||  
+| According to the revised approved budget, the entity was supposed to receive UGX.836.61Bn, out of which UGX.767.1Bn was warranted, resulting into a shortfall of UGX.69.51Bn. The shortfall represents 8.31% of the approved budget. funds that were not warranted were meant to facilitate the implementation of various outputs, which were either partially implemented or not implemented at all. The under funding for the affected outputs are included in **Appendix I.** Accounting Officer explained that the Ministry is in constant engagement with MOFPED to ensure full and timely release of the Ministry’s budget. The The |<|<|<|<|<|<|<|<||  
+|^|<|<|<|<|<|<|<|<||  
+|^|<|<|<|<|<|<|<|<| I advise the Accounting |  
+|^|<|<|<|<|<|<|<|<| Officer to continue |  
+|^|<|<|<|<|<|<|<|<| liaising with MoFPED to |  
+|^|<|<|<|<|<|<|<|<| ensure that that the |  
+|^|<|<|<|<|<|<|<|<| approved budget is |  
+|^|<|<|<|<|<|<|<|<| fully warranted. |  
+|^|<|<|<|<|<|<|<|<||  
+|^|<|<|<|<|<|<|<|<|^|  
+|^|<|<|<|<|<|<|<|<|^|  
+|^|<|<|<|<|<|<|<|<|^|  
+|^|<|<|<|<|<|<|<|<|^|  
+| advised the Accounting Officer to always ensure that activities and outputs are implemented as planned. I **Implementation of outputs and activities**  I assessed the implementation of a sample of twenty (22) outputs that had been fully quantified with a total of one hundred and ten (110) activities worth UGX.693Bn and noted that;  Five (5) outputs with eight (8) activities and expenditure worth UGX.294.6Bn were fully implemented.   Fifteen (15) outputs with ninety seven (97) activities worth UGX.390.4Bn were partially implemented. Out of the ninety seven (97) activities, the entity fully implemented thirty one (31) activities; forty (40) activities were partially implemented, while twenty six (26) activities remained unimplemented.   Two (2) outputs with five (5) activities worth UGX.8.1Bn were not implemented at all. the details of implementation of planned outputs, refer to the **Appendix II.** **2: Level of implementation of outputs** **Summary of Performance by Output** Activity details-Analysis** **Catego ry of output** **No of ou tp ut s** **% Propo rtion to total expen diture** **Tota l no of activ ities** **No of Fully imple mente d activiti es** **No.** Of partiall y implem ented activiti es** **of** **that** **No activitie** **s**  **were** not impleme nted** **Extent of impleme** **ntation** of activities per category of output** 5 42.5 8 8 0 0 100 15 50 56.3 97 31 40 26 50 **Exp end itur e UG X Bn** 294. 6 390. 4 **% Of i m** **e m e** **at io n** **Fully**  33 **imple**  **mente**  **d**  **output**  **s 1**  **Partiall**  **y**  **Imple**  **mente**  **d**  **output** s 2** **1.2** For  **Table** pl** **nt** |<|<|<|<|<|<|<|<|<|  
+|^|<|<|<|<|<|<|<|<|<|  
+|^|<|<|<|<|<|<|<|<|<|  
+|^|<|<|<|<|<|<|<|<|<|  
+|^|<|<|<|<|<|<|<|<|<|  
+|^|<|<|<|<|<|<|<|<|<|  
+
+
+1 Fully implemented output -All the activities within the outputs are fully implemented  
+2 Partially implemented Output-Activities within the output are either; Fully implemented, partially implemented or not implemented
+
+---
+
+| 2 17 8.1 1.17 5 0 0 5 0 **22 1 693 100 110 39 40 31** **0** 0** **Output s Not Imple mente** **d 3** Total** funding affected the implementation of panned activities. Non-implementation of planned activities implies that the expected services to the beneficiary communities were not attained. Accounting Officer explained that non implementation of planned activities was affected by underfunding. Under The |<|<|<|<|<|<|<|<|<|  
+|---|---|---|---|---|---|---|---|---|---|  
+|^|<|<|<|<|<|<|<|<|<|  
+|^|<|<|<|<|<|<|<|<|<|  
+| **1.3** Mischarges** |<|<|<|<|<|<|<|<||  
+| Regulation 16 (1) of the Public Finance and Management Regulations, 2016, requires an Accounting Officer to request the Minister for approval to vary, within a vote, the amount of money allocated to the vote. 10.3.1 (step 4-approval of payments) states that in reviewing payment requests, an Accounting Officer shall have a primary responsibility of ensuring that there is no mischarge and diversion of funds through wrong coding of transactions. An Accounting Officer shall be held personally liable for any wrong charge accounts used for expenditure incurred by his/her vote From a sample of transactions reviewed, I noted that funds to the tune of UGX.2,097,464,868 were irregularly mischarged from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. Details of cases where this was observed are in **Appendix III.** of funds is not only contrary to the Public Finance and Management Act, but it negatively affects the delivery of services and negates the purpose of budgeting. Accounting Officer explained that during the financial year, the Ministry budgeted to support regional workshops for the maintenance and repair of earth moving equipment which fall under force account, interconnectivity and DRRU units. These funds were transferred to the regional workshops to cater for outstanding bills for the Japanese Equipment to avert a crisis at the local Government, District and Municipal council. Paragraph Mischarge The |<|<|<|<|<|<|<|<| I advised the |  
+|^|<|<|<|<|<|<|<|<| Accounting Officer to |  
+|^|<|<|<|<|<|<|<|<| ensure that charging of |  
+|^|<|<|<|<|<|<|<|<| expenditure is based |  
+|^|<|<|<|<|<|<|<|<| on the expenditure |  
+|^|<|<|<|<|<|<|<|<| classification and |  
+|^|<|<|<|<|<|<|<|<| coding as defined by |  
+|^|<|<|<|<|<|<|<|<| the chart of Accounts |  
+|^|<|<|<|<|<|<|<|<| and not reasons for the |  
+|^|<|<|<|<|<|<|<|<| expenditure. |  
+|^|<|<|<|<|<|<|<|<| Furthermore, the |  
+|^|<|<|<|<|<|<|<|<| Accounting Officer is |  
+|^|<|<|<|<|<|<|<|<| advised to advocate for |  
+|^|<|<|<|<|<|<|<|<| increasing in the |  
+|^|<|<|<|<|<|<|<|<| budget to support the |  
+|^|<|<|<|<|<|<|<|<| regional workshops. |  
+|^|<|<|<|<|<|<|<|<|^|  
+|^|<|<|<|<|<|<|<|<|^|  
+|^|<|<|<|<|<|<|<|<|^|  
+|^|<|<|<|<|<|<|<|<|^|  
+|^|<|<|<|<|<|<|<|<|^|  
+|^|<|<|<|<|<|<|<|<|^|  
+|^|<|<|<|<|<|<|<|<|^|  
+|^|<|<|<|<|<|<|<|<|^|  
+|^|<|<|<|<|<|<|<|<|^|  
+|^|<|<|<|<|<|<|<|<|^|  
+|^|<|<|<|<|<|<|<|<|^|  
+|^|<|<|<|<|<|<|<|<|^|  
+|^|<|<|<|<|<|<|<|<|^|  
+
+
+**1.4**
+
+# Delivery of services from implemented activities
+
+I under took procedures to establish if activities were undertaken in timely manner, were of expected quality and quantity, and if citizens were getting the expected services. The following observations were noted;
+
+**a) Maintenance of district and zonal road equipment**  
+I carried out inspection of the regional mechanical workshops and established that 23 Districts’ road equipment, especially Motor graders remained in the Workshops’
+
+3 Outputs not implemented-All the activities within the output not implemented at all
+
+---
+
+yards for more than a year without repair with some having been grounded since 2016.
+
+This has affected the maintenance of roads in the affected districts.
+
+The Accounting Officer explained that the Regional Workshops received only UGX.10,492,000,000 as operational funding against an actual requirement of UGX.45,000,000,000 thereby not able to carry out all the necessary repairs.
+
+I advised the Accounting Officer to lobby the responsible authorities and have the road equipment maintenance budget improved.
+
+**b) Grounded Aircrafts at the East African civil Aviation Academy**  
+The inspection of the East African civil Aviation Academy (Soroti Flying School) indicated that all its nine (9) training aircrafts were grounded due to the expiry of their insurance or being faulty. I further noted that three aircrafts involved in accidents during the year under review had not been repaired due to the delayed compensation by the insurance service provider.  
+The training of pilots had been suspended resulting into un-necessary costs of keeping students on the campus without training and extension of the time within which students would complete their courses. In addition salaries for the Instructors and staff are being paid without activities, which is wasteful.
+
+The Accounting Officer explained that the financial challenges have derailed the Academy from executing its mandate. It was further explained that the Academy procured an insurance service provider (Sanlam), however after accepting the offer, the Academy received a late communication from Sanlam declining to offer the service. The issue has however been escalated to the Attorney General for further guidance on the next action against Sanlam Insurance. In addition, 5X-UAN 310 aircraft was manufactured in 1978 whose production line had been stopped, hence the Academy had to make special arrangements for the production of the parts required. It should also be noted that the aircraft was undergoing major structural repairs which required lots of parts.
+
+I advised the Accounting Officer to engage relevant authorities to ensure that the insurance cover is renewed and urgently follow up with the insurance provider for compensation of the aircrafts involved in accidents. Management of Ministry of Works should work out a strategy for enhancing the revenues of the Academy.
+
+**2.0**
+
+# Management of Public Land
+
+Section 45 of the Public Finance and Management Act (PFMA), 2015 (as amended) requires the Accounting Officers to be responsible for the management of the land under their custody. Public land management is the process by which public land resources are put to proper utilization. Paragraph 16.13.11 of the Treasury Instruction, 2017 requires that for a government entity to be considered to have control over land only when it has the title.
+
+The current financial reporting framework requires Land to be recognized as Non- produced assets in the statement of financial position (effective 2014) for all reporting entities on both Modified accrual and accrual basis of Accounting. The framework further requires land procured prior to 2014, and where the value cannot
+
+---
+
+be ascertained to be recorded in the memorandum statement to the financial statements.
+
+I observed that Ministries, Departments and Agencies (MDAs), and Local Governments (LGs) have challenges with regard to planning and budgeting, protecting, reporting, utilization and disposal of Public Land. These challenges include; inadequate record keeping, non-compliance to recognition and measurement criteria, loss of entity control due to encroachment and encumbrances, and lack of land titles, among others. These have negatively affected the quality of financial statements, and hampered service delivery and fulfilment of entity mandates.
+
+Documents, such as; Laws and Regulations, approved strategic plans, policy statements, budgets, Financial Statements, Asset Register, Court case files and correspondences, Land titles and lease files were reviewed. In addition, I interacted with entity management and discussed issues affecting public land management. Furthermore, I physically inspected some of the pieces of land owned by the entities.
+
+From the procedures undertaken, I noted the following:-
+
+| **SN** | **Observation** | **Recommendation** |  
+|---|---|---|  
+| **2.1** | **Recording of land in IFMS and presentation in the** **financial statements**  Paragraph 10.12.4 of the Treasury Instructions, 2017 requires all fixed assets acquired to be captured in the fixed asset module of the Government Financial Management Information System (GFMIS)-IFMS A review of the land register and land transactions during the period under review revealed that the land acquired under the SGR project, measuring approximately 1,305.886 acres costing UGX.99,343,193,128 were not recorded in the GFMIS fixed asset module thus affecting the accuracy of the non-produced assets in the financial statements. to record all land in the land register could lead to misstatement of the non-produced asset in the statement of financial position and in the summary statement of stores and other assets (physical assets). he Accounting Officer explained that with the upgrading of the IFMS - assets module has been operationalized and the SGR land which had been acquired over the years will be uploaded on the IFMS as we have done for the Ministry. T Failure | advised the Accounting Officer to ensure that all entity land is updated in the GFMIS asset module and appropriately presented and disclosed in the financial statements. I |  
+
+
+---
+
+# Other Matter
+
+I consider it necessary to communicate the following matters other than those presented or disclosed in the Financial Statements;
+
+# 3.0 Un-Recovered Advance Payment-EURO.8,854,839.68
+
+The PSST/National Authorising Officer of the European Development Fund (EDF)- Ministry of Finance, Planning and Economic Development (PSST/NAO) signed a contract with an International firm for civil works for the rehabilitation of the Tororo- Gulu Railway at a contract price of EUR.39,337,756 (excluding VAT/other taxes). This included EU component of EUR.17,526,000 and GoU of EUR.21,811,756.
+
+Article 46.8-a of the contract (pre-financing) required that repayment of pre- financing shall take the form of deductions based on monthly claims. The flat rate pre-financing (maximum of 10%) shall be repaid by means of deductions from instalment and, if necessary, the balance due to the contractor. This repayment shall begin with the first instalment and be completed; at the very latest by the time 80% of the amount of the Contract has been paid.
+
+I noted that the contractor terminated the contract on 12 th July, 2022 due to failure by the Government of Uganda to honour payments. A review of payment certificates and Supervising Consultant reports established that, although 30% advance payment was made to the contractor amounting to EUR.11,801,326.80, by the time of termination of the contract, only EUR.2,946,487.12 had been recovered with the balance EUR.8,854,839.68 not yet recovered.
+
+An inspection carried out during the audit of Uganda Railways Corporation, which was the contract manager, indicated that by the time of termination of the contract, the old railway line had been dismantled by the contractor in several areas. This exposed the dismantled but re-usable materials to theft.
+
+There is a risk of loss of public funds of EUR.8,218,950.59 since the outstanding un- paid certificates amounted to only EUR.635,889.09. In addition, some or all the dismantled but re-usable materials may ultimately not be traceable.
+
+The Accounting Officer explained that the outstanding advance payment is still secured by advance and pre-financing security bonds provided by the contractor at commencement which are in the custody of the Ministry of Finance, Planning and Economic Development which are valid up to the intended completion date of 9 th February, 2023 as per the requirements of the contract.
+
+I advised the Accounting Officer to liaise with the various stakeholders with a view of coming up with interventions to ensure that the rehabilitation of the Tororo-Gulu Railway is completed.
+
+# Other Information
+
+The Accounting Officer of Ministry of Works and Transport is responsible for the other information. The other information comprises the statement of responsibilities of the Accounting Officer and the commentaries by the Head of Accounts and the Accounting Officer, and other supplementary information. The other information does not include the financial statements and my auditors’ report thereon. My opinion on the financial statements does not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.
+
+---
+
+In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially consistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information; I am required to report that fact. I have nothing to report in this regard.
+
+# Management Responsibilities for the Financial Statements
+
+Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 of the Public Finance Management Act, 2015, the Accounting Officer is accountable to Parliament for the funds and resources of MoWT.
+
+The Accounting Officer is also responsible for the preparation of financial statements in accordance with the requirements of Public Finance and Management Act, 2015 and for such internal control as management determines necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.
+
+In preparing the financial statements, the Accounting Officer is responsible for assessing the Ministry\`s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Accounting Officer has a realistic alternative to the contrary.
+
+The Accounting Officer is responsible for overseeing the Ministry\`s financial reporting process.
+
+# Auditor’s Responsibilities for the audit of the Financial Statements
+
+My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAIs will always detect a material misstatement, when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users, taken on the basis of these financial statements.
+
+As part of an audit in accordance with ISSAIs, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:-
+
+- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
+- Obtain an understanding of internal controls relevant to the audit 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 internal controls in the Ministry.
+- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
+- Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Ministry’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I
+
+---
+
+am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Ministry to cease to continue as a going concern.
+
+- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
+
+I communicate with the Accounting Officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
+
+I also provide the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards.
+
+From the matters communicated with the Accounting Officer, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
+
+**Other Reporting Responsibilities**  
+In accordance with Section 19 (1) of the National Audit Act, 2008, I report to you, based on my work described on the audit of Financial Statements, that; except for the matters raised in compliance with legislation section below, and whose effect has been considered in forming my opinion on financial statements, the activities, financial transactions and information reflected in the financial statements that have come to my notice during the audit, are in all material respects, in compliance with the authorities which govern them.
+
+# Report on the Audit of Compliance with Legislation
+
+In accordance with Section 19 of the NAA 2008, I have a responsibility to report material findings on the compliance of the Ministry with specific matters in key legislations. I performed procedures primarily to identify findings but not to gather evidence to express assurance.
+
+The material findings in respect of the compliance criteria for the applicable subject matters are as follows:-
+
+**4.0**
+
+# Management of Information Technology (IT) Investments in Government
+
+The Government of Uganda (GOU) is making large investments in Information Technology (IT) systems because of the tremendous benefits that IT can bring to its operations and services. One of the key programmes of NDPIII 2020/21-2024/25 is Digital Transformation, in which Government of Uganda aims to increase Information, Communication Technology (ICT) penetration and use of digital services for enhancing social and economic development.
+
+---
+
+As a result of national prioritisation of IT, the Auditor General undertook a thematic audit covering three financial years’ expenditure (2019/20 to 2021/22) to scrutinise the management of IT Investments across Government. The overall objective was to assess whether the IT investments in Government are strategically aligned, managed appropriately and focused on achieving the NDP III objective. The procedures undertaken covered: planning and budgeting; procurement, utilization, maintenance and disposal of IT systems; governance, and financial reporting.
+
+For the current year 2021/2022, the entity budgeted for UGX.5,572,875,000 for acquisition and implementation of IT systems and equipment and received UGX.4,793,109,187.
+
+A review of IT activities implemented revealed the following:
+
+| **SN** | **Observation** |<|<|<|<|<|<| **Recommendation** |  
+|---|---|---|---|---|---|---|---|---|  
+| **4.1** | **Procurement/Development and Use of Software/Licenses (IT Systems) and Equipment** The IT Systems Development Lifecycle (SDLC) requires a systematic approach which includes; initiation, planning and execution. In addition, I made my assessment basing on PS/ST and NITA-U guidance on IT developments which aim to promote rationalisation and avoid further development of isolated IT systems in MDAs and LGs. During the audit of the Ministry, I observed that a total of two (2) IT systems/equipment with a total cost of UGX.200,780,000 were implemented without business cases and approval by NITA-U. The **table** below refers. **Table 3: IT systems procured without business cases** **Purpose of** the System** **Cost of the System (UGX.)** **User Department** 4,900,000 All departments **Name of IT System** Undefined PTV Visum Modeler Biometric software system upgrade Transport planning software **Total** **Date of purchas e** 6/6/202 2 19/11/2 021 195,880,000 Directorate of Transport services **200,780,000** may lead to duplication of acquisition, procurement of non-compatible solutions and equipment; and general deviation from Government’s efforts to rationalize resources for better service delivery. be approved by NITA-U before they are initiated by the Ministry. Accounting Officer promised that in future all ICT procurements will Non-compliance The |<|<|<|<|<|<| I advised the Accounting Officer to request NITA-U to review the systems. |  
+|^|^|<|<|<|<|<|<|^|  
+|^|^|<|<|<|<|<|<|^|  
+|^|^|<|<|<|<|<|<|^|  
+|^|^|<|<|<|<|<|<|^|  
+|^|^|<|<|<|<|<|<|^|  
+| **4.2** | **IT Governance**  IT governance entails leadership, structures, and processes that enable an organization to make decisions to ensure that its IT sustains and extends its strategies and objectives. However, a review of the ICT governance structure of the entity revealed that; i. There were no specific structures that steer and oversee IT implementation.  ii. The entity has nine (9) positions of IT staff on the establishment, out of which, four (4) (44%) were filled and have the required qualifications. **The table below refers.** |<|<|<|<|<|<| advised the Accounting Officer to institute governance policies and structures and to fill vacant positions to effectively manage IT investments. I |  
+
+
+---
+
+iii. There was no approved IT risk management framework/policy at the entity, and risk register.  
+iv. There was no business continuity plan, contrary to Section 4.6 of the National Information Security Policy 2014.
+
+### Table 4: IT staffing levels
+
+##### Position Per Establishment No. of No. of Vacant Approved Positions Positions Positions Filled
+
+Principal Information 1 0 1 Technologist  
+Senior Information scientist 1 0 1 Senior Information Technologist 2 2 0 Librarian 1 0 1 Web Master 1 1 0 Information Technologist 2 1 1 Systems administrator 1 0 1
+
+##### Total 9 4 5
+
+Absence of IT governance structures and understaffing hampers formulation of appropriate IT policies, strategies and real time upgrade of IT interventions. In addition, it may lead to misalignment of IT investments with the overall entity strategic objectives.
+
+The Accounting Officer explained that the Ministry will ensure that a structure is set up to steer and oversee IT implementation in consultation with other stakeholders. It was further explained that the Ministry is in the process of initiating engagements with NITA-U to provide support to enable it undertake recovery of any data to aid business continuity.
+
+**5.0**
+
+# Implementation of the PDM by Ministry of Works and Transport
+
+The Parish Development Model (PDM) is a strategy by the Government of Uganda aimed at organizing and delivering the public and private sectors out of poverty through the creation of employment opportunities at the lowest economic planning unit, the Parish. The Parish Development Model (PDM) is the last mile strategy for service delivery by Government of Uganda to improve the incomes and welfare of all Ugandans at the household level.
+
+The Parish Development Model is expected to cover all the 10,594 parishes in Uganda and is premised on seven major pillars: The primary pillar is “Agriculture value chain development (Production, Storage, Processing and Marketing). The achievement of this pillar is supported by six other pillars namely; infrastructure and economic services, financial inclusion, social services, community mobilization, mind- set change Parish-based management information system, and governance and administration.
+
+Pillar Two (2) – Infrastructure and Economic Services supports the provision of reliable transport and economic services for production and marketing.
+
+The roles of the Ministry of Works and Transport are to;  
+i.  
+Chair the Pillar Working Group  
+ii.  
+Construct and maintain community access roads  
+iii.  
+Improve check points/bridges on community roads  
+iv.  
+Upgrade community local markets by developing marketing strategy
+
+---
+
+v.  
+Extend safe water facilities for domestic use and production  
+vi.  
+Extend of power facilities to communities and ensure availability of power in each Parish  
+vii.  
+Create free internet zones in communities  
+viii. Improve physical development planning to facilitate planned, waste management and renewable energy
+
+I reviewed the implementation of the PDM activities and noted the following;-
+
+**5.1**
+
+# Implementation of the expected deliverables before full roll out of the PDM
+
+According to the approved PDM Policy Framework, 2022, the Ministry of Works and Transport was supposed to undertake a number of activities before the full roll out of the PDM to ensure that the Pillar objectives are achieved. I undertook verification of the extent to which these activities had been implemented and noted that out of six (6) activities, only one (1) had been implemented at the time of audit as per the details below;
+
+| **S/N** | **Pillar activity** | **What should be in place before full roll out** | **Implemented (Yes/No)** |  
+|---|---|---|---|  
+| **1** | Construction and maintenance of Community Access roads | Identification or existence of a database of all the roads to be worked on facilitate implementation of the PDM to | No |  
+| **2** | Improve choke points and bridges on community roads | Identification or existence of a database of all the choke points to be worked on facilitate implementation of the PDM to | No |  
+| **3** | Upgrade community local markets by developing a marketing strategy | An approved marketing strategy | No |  
+| **4** | Creation of free internet zones | Free internet zones identified and created | No |  
+| **5** | Functional Pillar working group | 1 pillar working group | Yes |  
+| **6** | Pillar manual | 1 pillar manual | No |  
+
+
+Due to the failure to fully implement the above activities before full roll out there is a risk that implementation of the pillar activities will face challenges which may impair the achievement of the pillar objectives.
+
+Management explained that the non-implementation is attributed to the absence of a budget provision to implement the activities as per the framework.
+
+I advised the Accounting Officer to liaise with the relevant stakeholders to obtain the necessary resources to implement the activities as per the PDM policy framework.
+
+---
+
+**6.0** Delayed Completion of the consultancy for the unit cost study for road**
+
+# construction and maintenance in Uganda
+
+On 30 th July 2019, the Ministry entered into a contract for a unit cost study for road construction and maintenance in Uganda at a contract price of UGX.2,102,966,500. The contract was to be executed in nine (9) months from the date of contract signing, implying that the contract completion date was supposed to be 30 th April, 2020.
+
+A review of the performance of the contract revealed the following:-
+
+i. Although the cumulative payments to the consultant totalled to UGX.1,472,076,550 (70% of the contract price) by end of September 2022, almost 2 & ½ years later, most aspects of the contract such as testing the cost management system, 2 nd stakeholders’ workshop, final report, cost estimation and monitoring systems and implementation strategy had not been delivered.
+
+ii.  
+Although, section 7.6 of Terms of Reference(TORs) for the study required six (6) staff from MoWT, UNRA, KCCA and Uganda Road Fund to be attached to the Consultant as counterpart staff for training and knowledge transfer, there was no evidence that it was done.
+
+iii.  
+The most recent report submitted by the Consultant was the draft final report in December 2020. This report was not approved by the Ministry as it reportedly lacked cost drivers for road maintenance.
+
+There is a risk of loss of UGX.1,472,076,550 so far paid to the Consultant if no acceptable report is eventually delivered. In addition, there was no evidence that the Ministry was employing the penalty provisions in the contract.
+
+The Accounting Officer explained that the Consultancy has been delayed because of a number of issues, including the Covid-19 pandemic outbreak and the insufficient data that has been gathered from key stakeholders both internally and outside the benchmarking countries. It is important to highlight that access to offices and documents was necessary for the majority of the Consultancy's primary activities.
+
+I advised the Accounting Officer to follow up with the Consultant to ensure that the report is delivered expeditiously to enhance decision making.
+
+![](assets_MWTS%20Report%20of%20Auditor%20General%202022/img-2941.jpg)
+
+John F. S. Muwanga
+
+# AUDITOR GENERAL
+
+Kampala  
+23 rd December, 2022
+
+---
+
+# APPENDICES: Appendix I: Outputs affected by budget cuts
+
+| **No** | **Output** | **Details** | **Un warranted Amounts (UGX)** |  
+|---|---|---|---|  
+| 1 | 040101 | Policies, laws, guidelines, plans and strategies developed | 2,032,850,000 |  
+| 2 | 040102 | Road Safety Programmes Coordinated and Monitored | 1,067,356,240 |  
+| 3 | 040104 | Air Transport Programmes coordinated and Monitored | 260,400,000 |  
+| 4 | 040105 | Water and Rail Transport Programmes Coordinated and Monitored. | 48,700,000 |  
+| 5 | 040106 | Ships and Ports programs coordinated and monitored | 42,000,000 |  
+| 6 | 040107 | Safety of navigation programs coordinated and monitored | 15,725,708 |  
+| 7 | 040108 | Monitored Technical Compliance Inspections Coordinated and | 348,250,000 |  
+| 8 | 040109 | Public Service Vehicles Licensed | 434,951,000 |  
+| 9 | 040110 | Rail Transport Programmes Co-ordinated and Monitored | 1,750,000 |  
+| 10 | 040201 | Policies, laws, guidelines, plans and strategies | 373,860,000 |  
+| 11 | 040202 | Monitoring and Capacity Building | 1,109,529,736 |  
+| 12 | 040251 | Maintenance of Aircrafts and Buildings (EACAA) | 4,091,957,932 |  
+| 13 | 040252 | Rehabilitation of Upcountry Aerodromes (CAA) | 1,157,576,577 |  
+| 14 | 040253 | Institutional Support to URC | 1,694,783,174 |  
+| 15 | 040271 | Acquisition of Land by Government | 11,339,298,959 |  
+| 16 | 040281 | Construction/Rehabilitation of Railway Infrastructure | 29,892,476,459 |  
+| 17 | 040301 | Policies, laws, guidelines, plans and strategies | 404,485,000 |  
+| 18 | 040302 | Management of Public Buildings | 1,500,000 |  
+| 19 | 040303 | Monitoring Compliance of Construction Standards and undertaking Research | 280,703,600 |  
+| 20 | 040304 | Monitoring and Capacity Building Support | 5,230,804,039 |  
+| 21 | 040306 | Construction related accidents investigated | 4,400,000 |  
+| 22 | 040351 | Registration of Engineers | 418,408,714 |  
+| 23 | 040352 | Support to MELTC | 1,726,237,161 |  
+| 24 | 040354 | Support to the National Building Review Board | 1,168,867,630 |  
+| 25 | 040402 | Monitoring and capacity building support for district road works | 619,656,158 |  
+| 26 | 040473 | Roads, Streets and Highways | 488,485,029 |  
+| 27 | 040476 | Purchase of Office and ICT Equipment, including Software | 200,000,000 |  
+| 28 | 040501 | Policies, laws, guidelines, plans and strategies. | 322,684,000 |  
+| 29 | 040502 | Maintenance Services for Central and District Road Equipment. | 199,750,000 |  
+| 30 | 040503 | Mech Tech Advise rendered & Govt vehicle inventory maintained. | 29,774,660 |  
+| 31 | 040505 | Operation and Maintenance of MV Kalangala Ship and other delegated ferries | 410,000,000 |  
+| 32 | 040506 | Maintenance of the Government Protocol Fleet | 150,000,000 |  
+| 33 | 040507 | Monitoring and Inspection of Plant and Equipment | 31,500,000 |  
+| 34 | 040551 | Transfers to Regional Mechanical Workshops | 1,516,810,715 |  
+| 35 | 044901 | Policy, Laws, guidelines, plans and strategies | 213,580,000 |  
+
+
+---
+
+| 36 | 044902 | Ministry Support Services and Communication strategy implemented. | 396,627,800 |  
+|---|---|---|---|  
+| 37 | 044904 | Transport Data Collection Analysis and Storage | 323,950,000 |  
+| 38 | 044905 | Strengthening Sector Coordination, Planning & ICT | 629,100,000 |  
+| 39 | 044906 | Monitoring and Capacity Building Support | 186,027,054 |  
+| 40 | 044919 | Human Resource Management Services | 162,999,314 |  
+| 41 | 044920 | Records Management Services | 86,880,000 |  
+| 42 | 044976 | Purchase of Office and ICT Equipment, including Software | 378,978,184 |  
+| 42 | **Total** || **69,493,674,843** |  
+
+
+---
+
+# Appendix II: Extent of Implementation of Outputs and Activities
+
+| **Fully Implemented Out-puts** |<|<|<|<| **Partially Implemented Out-puts** |<|<|<|<|<|<| **Out-puts not Implemented at all** |<|<|<|<|  
+|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|  
+| **Project** | **Output** | **Total output expenditure (UGX '000')** | **Total No activ ities** | **Number of fully implement ed activities** | **Project** | **Out-put** | **Total Out- put expenditur e (UGX '000')** | **Total No activi ties** | **Number of fully implement ed activities** | **No of partially implement ed activities** | **No of activities that were not implemente d** | **Project** | **Out-put** | **Total Out- put expenditur e (UGX '000')** | **Total No activ ities** | **Activiti es not Implem ented** |  
+| **Maritime** | 52 Contributions to National, Regional and International Organizations | 29,549 | 1 | 1 | **07 Transport Regulation and Safety** | 01 Policies, laws, guidelines, plans and strategies developed | 2,045,429 | 9 | 3 | 2 | 4 | **1284 Development of new Kampala Port in Bukasa** | 80 Construction/Rehabil itation of Inland Water Transport Infrastructure | 7,461,544 | 1 | 1 |  
+| **Transport Infrastructure and Services** | 52 Rehabilitation of Upcountry Aerodromes (CAA) | 1,131,423 | 2 | 2 | **1096 Support to Computerized Driving Permits** | 76 Purchase of Office and ICT Equipment, including Software | 5,236,000 | 2 | 0 | 2 | 0 | **1703 Rehabilitation of District Roads Project** | 76 Purchase of Office and ICT Equipment, including Software | 614,999 | 4 | 4 |  
+| **1284 Development of new Kampala Port in Bukasa** | 83 Border Post Reahabilitation/Con struction | 8,476,928 | 1 | 1 | **16 Maritime** | 01 Policies, laws, guidelines, plans and strategies developed | 413,730 | 1 | 0 | 1 | 0 || **Totals** | **8,076,543** | **5** | **5** |  
+| **1489 Development of Kabale Airport** | 83 Border Post Reahabilitation/Con struction | 124,792,709 | 2 | 2 | **1097 New Standard Gauge Railway Line** | 76 Purchase of Office and ICT Equipment, including Software | 259,230 | 1 | 0 | 1 | 0 ||||||  
+| **1563 URC Capacity Building Project** | 81 Construction/Rehabi litation of Railway Infrastructure | 160,171,907 | 2 | 2 | **1373 Entebbe Airport Rehabilitation Phase 1** | 52 Rehabilitation of Upcountry Aerodromes (CAA) | 19,138,215 | 3 | 2 | 1 | 0 ||||||  
+|| **Totals** | **294,602,516** | **8** | **8** | **1512 Uganda National Airline Project** | 52 Rehabilitation of Upcountry Aerodromes (CAA) | 117,626,000 | 7 | 2 | 1 | 4 ||||||  
+|||||| **1659 Rehabilitation of the Tororo – Gulu railway line** | 81 Construction/Reha bilitation of Railway Infrastructure | 11,229,844 | 3 | 1 | 2 | 0 ||||||  
+|||||| **12 Roads and Bridges** | 52 Support to MELTC | 4,273,763 | 7 | 5 | 2 | 0 ||||||  
+|||||| **1558 Rural Bridges Infrastructure Development** | 74 Major Bridges | 21,641,508 | 16 | 5 | 9 | 2 ||||||  
+||||||^| 76 Purchase of Office and ICT Equipment, including Software | 230,000 | 2 | 0 | 2 | 0 ||||||  
+|||||| **1564 Community Roads Improvement Project** | 73 Roads, Streets and Highways | 43,801,746 | 10 | 2 | 3 | 5 ||||||  
+||||||^| 76 Purchase of Office and ICT Equipment, including Software | 500,000 | 3 | 1 | 0 | 2 ||||||  
+|||||| **1703 Rehabilitation of District Roads Project** | 73 Roads, Streets and Highways | 107,543,822 | 13 | 5 | 4 | 4 ||||||  
+|||||| **1705 Rehabilitation and Upgrading of Urban Roads Project** | 81 Urban roads construction and rehabilitation (Bitumen standard) | 53,428,317 | 17 | 4 | 8 | 5 ||||||  
+|||||| **1617 Retooling of Ministry of Works and Transport** | 76 Purchase of Office and ICT Equipment, including Software | 3,021,448 | 3 | 1 | 2 | 0 ||||||  
+||||||| **Totals** | **390,389,0 52** | **97** | **31** | **40** | **26** ||||||  
+
+
+16
+
+---
+
+### Appendix III: Mischarge of expenditure
+
+| EFT No | Supplier | Description | Amount | Code charged | Right code |  
+|---|---|---|---|---|---|  
+| 37624196 | Bugembe Regional Mechanical Workshop | Payment for outstanding repair commitments on road equipment | 189,437,000 | 312104 | 228003 |  
+| 39798190 | Gulu Regional Mechanical Workshop | Payment for outstanding bills for repair and maintenance of district road equipment to service providers | 300,000,000 | 225002 | 228003 |  
+| 42444206 | Bugembe Regional Mechanical Workshop | Transfer to cater for Outstanding Bills for Road Equipment as per memo. | 398,921,670 | 312213 | 228003 |  
+| 42765740 | Bugembe Regional Mechanical Workshop | Transfer to Support Corrective Maintenance needs and Ground Engaging Implements of Road Equipment under Zonal Centre Central as per memo and Budget. | 292,690,000 | 312104 | 228003 |  
+| 44556151 | Bugembe Regional Mechanical Workshop | Outstanding bills for road equipment | 466,746,198 | 225002 | 228003 |  
+| 44556151 | Bugembe Regional Mechanical Workshop | Outstanding bills for road equipment | 449,670,000 | 225002 | 228003 |  
+|| **Total** || **2,097,464,868** |||  
+
+