[{"content": "FOR THE YEAR ENDED 30 TH JUNE 2022 \nFOR THE YEAR ENDED 30 TH JUNE 2022 \nTHE RT. HON. SPEAKER OF PARLIAMENT \nI have audited the accompanying financial statements of Gulu District Local Government,", "metadata": {"headings": [{"headings_0": {"content": "REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF GULU DISTRICT LOCAL GOVERNMENT", "page": 0}}, {"headings_1": {"content": "THE REPUBLIC OF UGANDA", "page": 0}}], "page": 0, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 0}}, {"content": "Financial Performance, Statement of Changes in Equity, 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. \nPublic Finance Management Act (PFMA), 2015 (as amended) and the Financial Reporting Guide, 2018.", "metadata": {"headings": [{"headings_0": {"content": "which comprise the Statement of Financial Position as at 30 th June 2022, the Statement of", "page": 3}}, {"headings_1": {"content": "Opinion", "page": 3}}], "page": 3, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 4}}, {"content": "I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further described in the \nEthics Standards Board for Accountants\u2019 Code of Ethics for Professional Accountants (IESBA \nStatements in Uganda. \nto provide a basis for my opinion. \nwere addressed in the context of my audit of the financial statements as a whole, and in \ncommunicated in my report. \naudit of payroll management in the Districts, Cities, and Municipal Councils, which \nstill being considered by various stakeholders. \nbe communicated in my report. \non salaries, Pension, Gratuity and arrears, representing 71% of the total expenditure of UGX.23,679,289,662 as detailed below; \nI designed audit procedures to ascertain whether; \nwere paid accordingly. \ninstitutions. \nstatements. \nBased on the audit procedures performed, I made the following significant audit findings; \n1.1 \ninadequacies in land management as impediment to effective and efficient service", "metadata": {"headings": [{"headings_0": {"content": "Basis for Opinion", "page": 3}}, {"headings_1": {"content": "In my opinion, the financial statements of Gulu District Local Government for the year ended 30 th June 2022 are prepared, in all material respects, in accordance with section 51 of the", "page": 3}}], "page": 3, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 6}}, {"content": "prioritised land management reforms to prevent degradation, adverse effects of climate change and unsustainable land use practices. It has also embarked on \ninterventions such as computerizing of land registration system to ensure efficient and effective land management.", "metadata": {"headings": [{"headings_0": {"content": "delivery in the country. In NDP III, and in line with Vision 2040, Government has", "page": 13}}, {"headings_1": {"content": "The reviews on the country\u2019s performance under the NDP I and II pointed out", "page": 13}}], "page": 13, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 23}}, {"content": "As a result, I considered Management of Public Land a Key Audit Matter because of its importance to the county\u2019s development agenda.", "metadata": {"headings": [{"headings_0": {"content": "delivery in the country. In NDP III, and in line with Vision 2040, Government has", "page": 13}}, {"headings_1": {"content": "The reviews on the country\u2019s performance under the NDP I and II pointed out", "page": 13}}], "page": 14, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 25}}, {"content": "planning for public land acquisition, whether such acquisitions comply with land acquisition and budgeting guidelines and whether the acquired land is registered and titled. \nIn addition, I ascertained extent of recording in the assets/inventory registers and/or", "metadata": {"headings": [{"headings_0": {"content": "Consequently, I designed audit procedures to ascertain whether the DLG undertakes", "page": 14}}, {"headings_1": {"content": "delivery in the country. In NDP III, and in line with Vision 2040, Government has", "page": 13}}], "page": 14, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 26}}, {"content": "time of disposal/leasing of government land, whether the applicable guidelines are followed and proceeds thereof properly accounted for. Finally, I assessed the likelihood of fraud in the management of public land. \nBased on the audit procedures performed, I made the following significant audit findings; \n2020 accrued to UGX.4,383,715,416.", "metadata": {"headings": [{"headings_0": {"content": "system modules, usage and whether land is generally free from encumbrances. At the", "page": 14}}, {"headings_1": {"content": "Consequently, I designed audit procedures to ascertain whether the DLG undertakes", "page": 14}}], "page": 14, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 28}}, {"content": "The attachment \nIn July 2017, Court authorised Select Auctioneers and Court Bailiffs to attach and sell immovable property belonging to the District to realise the said sum of money. \nIrregularities noted", "metadata": {"headings": [{"headings_0": {"content": "system modules, usage and whether land is generally free from encumbrances. At the", "page": 14}}, {"headings_1": {"content": "Consequently, I designed audit procedures to ascertain whether the DLG undertakes", "page": 14}}], "page": 20, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 31}}, {"content": "- There was evidence that court sold off un-surveyed plots of land according to the letter of sale of un- surveyed plots of land addressed to the CAO- Gulu by High Court of Uganda, Gulu dated 03/03/2022.\n- There was no evidence that the district appealed the decision of court to have their properties attached.\n- There was no evidence that management reported the loss of properties to the Secretary to the Treasury, Accountant General, Internal Auditor General and Auditor General contrary to instruction no 21.1.3 of the Treasury Instructions 2017.\n- The valuation report was not availed by the entity to establish whether the attached properties were sold at a price not less than the force sale value in the report as directed in the court decree made on the 15 th of August, 2017. \nIn his response, the Accounting Officer explained that;", "metadata": {"headings": [{"headings_0": {"content": "system modules, usage and whether land is generally free from encumbrances. At the", "page": 14}}, {"headings_1": {"content": "Consequently, I designed audit procedures to ascertain whether the DLG undertakes", "page": 14}}], "page": 20, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "list", "index": 33}}, {"content": "- It was an auction of property ordered by court through Court Bailiffs following Court judgement issued.\n- The District appealed to Court of Appeal and court ordered for immediate attachment of council properties.\n- The District also filed their reports to Ministry of Finance who in turn sent technical team to verify the outstanding arrears/claims of the Plaintiffs.\n- There was no way they could value those properties because the entire process was handled by court and their agents. \nE mphasis of Matter \nNote 19, Note 24 and Note 25 on Pages 36 and 39 respectively of the financial statements;", "metadata": {"headings": [{"headings_0": {"content": "system modules, usage and whether land is generally free from encumbrances. At the", "page": 14}}, {"headings_1": {"content": "Consequently, I designed audit procedures to ascertain whether the DLG undertakes", "page": 14}}], "page": 20, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "list", "index": 35}}, {"content": "provides a basis for a uniform budget classification and execution, therefore, it is mandatory for all votes to use the coding structure to budget and execute the budget. \nthe expenditure account balances were misreported.", "metadata": {"headings": [{"headings_0": {"content": "Section 7.10.3 of the Treasury Instructions 2017 stipulates that the chart of accounts", "page": 20}}, {"headings_1": {"content": "3.0 Misclassification of expenditure (Mischarges)", "page": 20}}], "page": 20, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 38}}, {"content": "T he Accounting Officer explained that, the budget was planned for emergency responses and the funds were budgeted for under one line; transfers to lower local", "metadata": {"headings": [{"headings_0": {"content": "I noted that expenditure amounting UGX.146,888,000 was charged on wrong account item codes contrary to those in which they were budgeted. This therefore implies that", "page": 20}}, {"headings_1": {"content": "Section 7.10.3 of the Treasury Instructions 2017 stipulates that the chart of accounts", "page": 20}}], "page": 20, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 40}}, {"content": "emergency responses, it was accompanied with guidelines and budget on how it should be utilized hence, the funds were spent based on the work plans not the budget. \nI informed the Accounting Officer that I would bring this matter to the attention of the relevant authority. \naccounts item codes so that budgeting can be done appropriately. \nof funds. \nfall due. \nUWEP advances, accrued revenue and others. \nthe Council the opportunities to utilize the funds to implement planned activities. \ngroups. \nfollowing matters other than those presented or disclosed in the financial statements: \n2021/2022, UGX.30,936,957,369 (90%) was realized. \nthe planned revenue negatively affected provision of services to the communities. \nThe Accounting Officer explained as shown in the table below: \nensure that all budgeted funds are realized. \n6.2 Absorption of funds \nsubsequently swept back to the consolidated fund account. \nsubsequently partially or not implemented at all; \neducation facilities. \nfrom health centres in neighboring Sub counties due to incomplete health facilities \ngratuity. \nThe Accounting officer explained the following for the under absorption of funds;", "metadata": {"headings": [{"headings_0": {"content": "government on the PBS. However, when the funds were released to handle COVID-19", "page": 20}}, {"headings_1": {"content": "I noted that expenditure amounting UGX.146,888,000 was charged on wrong account item codes contrary to those in which they were budgeted. This therefore implies that", "page": 20}}], "page": 21, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 41}}, {"content": "I advised the Accounting Officer to ensure that procurements and recruitments are undertaken in time and to also ensure that construction contracts are adequately managed. \n7.0 \nImplementation of Selected Service Delivery Activities \nservice delivery; \n2. Ex-gratia Payments \nThe Parish Development Model is a Government strategy for wealth creation and \ninstitutional and operational frameworks/structure for the successful implementation \nare my observations; \n2021/2022 and noted that Gulu DLG had an approved budget of UGX.817,287,144.", "metadata": {"headings": [{"headings_0": {"content": "\uf0b7 Kal Ali B Paicho PDM SACCO was not funded hence demotivating the SACCOs. \uf0b7 Estate of Late Okema A Raymond was not paid retirement/ death pension and", "page": 23}}, {"headings_1": {"content": "\uf0b7 Citizens in Omel Sub county have to move long distances to attain health services", "page": 23}}], "page": 23, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 61}}, {"content": "planned 47 SACCOs were funded by the District with each receiving UGX.7,051,875, leaving out 01 (2%) SACCOs because they submitted wrong accounts information to \nfunds to be re-voted back in the financial year 2022/2023. \nunimplemented activities should be rolled over to the next financial year. \nUGX.128,923,919; and observed the following:", "metadata": {"headings": [{"headings_0": {"content": "As a result, funds available for implementation of PDM activities were not sufficient to meet the original activity planned targets. For instance, only 46 (98%) of the", "page": 24}}, {"headings_1": {"content": "Out of this, the district received UGX.570,563,830 (70%) leading to a shortfall of UGX.246,723,326 (30%) as shown in the table below.", "page": 24}}], "page": 24, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 69}}, {"content": "The district was supposed to disburse UGX.324,386,250 to 47 registered SACCOS. I undertook analysis of the disbursement and noted the following: \nthe vote. \nInitially planned procurement of gadgets and tools could not be implemented. As", "metadata": {"headings": [{"headings_0": {"content": "7.1.3 Revolving fund", "page": 25}}, {"headings_1": {"content": "I undertook a review of the utilization of funds for Revolving fund worth UGX.333,977,723, administrative costs of UGX.107,662,188 and staff cost of", "page": 25}}], "page": 25, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 73}}, {"content": "it was guided that part of the funds under staff costs, gadgets & tools be repurposed for the Parish Revolving funds with the same votes. Therefore, those", "metadata": {"headings": [{"headings_0": {"content": "The Accounting Officer explained that UGX.53,237,683 diverted from gadgets and tools was based on a PS/ST circular dated 20 th May 2022 ref.BPD86/150/01 where", "page": 25}}, {"headings_1": {"content": "a result, monitoring and supervision of SACCO activities was hindered.", "page": 25}}], "page": 25, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 76}}, {"content": "administrative structures at the district/municipality, sub county and parish level for the effective implementation of the PDM. A detailed breakdown of the administrative costs is shown in the table below: \nDepartment was diverted to the Administrative cost without the approval of the \nexample, payment sheets, receipts, reports and attendance sheets were attached where necessary. \nprograms to the community, as well as coordinate and support implementation of", "metadata": {"headings": [{"headings_0": {"content": "The administrative costs were meant for coordinating operations and implementing", "page": 25}}, {"headings_1": {"content": "7.1.4 Administrative Costs", "page": 25}}], "page": 25, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 77}}, {"content": "properly accounted for the balance of UGX.821,912 was bounced salary for one parish chief for the months of May 2022 and June 2022 which was swept back to the consolidated fund. \nThe Accounting Officer indicated management had written to MoFPED for funds to be re-voted back in the financial year 2022/23. \nI advised the Accounting Officer to make a follow up of unspent funds to have the missed salary paid. \nreceived numerous guidance\u2019s from different authorities and at times they appeared \nguidance\u2019s include: \nactivities. \nthe relevant authorities. I advised the PDM secretariat to review the various \nguidance\u2019s issued with view of harmonizing guidance given to implementers of PDM activities. \nentitled to monthly allowance (ex-gratia) of UGX.250,000. \naccordingly.", "metadata": {"headings": [{"headings_0": {"content": "I noted that out of UGX.128,923,919 released, UGX.128,102,007 was spent and", "page": 26}}, {"headings_1": {"content": "PDM activities among others. The following were observed;", "page": 26}}], "page": 26, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 81}}, {"content": "I developed procedures to establish whether the ex-gratia in the DLD was adequately budgeted for, paid timely and in accordance with the rates prescribed by", "metadata": {"headings": [{"headings_0": {"content": "The PS/ST, in the 2nd budget call circular for the financial year 2021/22 noted that, a number of LGs continue to report shortfalls in councillors\u2019 allowances and ex-gratia for Political Leaders in their budgets. Therefore, PS/ST directed all Accounting Officers to adequately budget for ex-gratia and Councillor\u2019s allowance and pay", "page": 27}}, {"headings_1": {"content": "According to the Local Government Act (as amended), District/City councillors are", "page": 27}}], "page": 27, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 91}}, {"content": "I noted that the District adequately budgeted for UGX.150,360,000 and paid ex- gratia and allowances for 22 District councillors under the LG Council Administration Services output (138201).", "metadata": {"headings": [{"headings_0": {"content": "the Local Government Act. Below are my observations:", "page": 27}}, {"headings_1": {"content": "The PS/ST, in the 2nd budget call circular for the financial year 2021/22 noted that, a number of LGs continue to report shortfalls in councillors\u2019 allowances and ex-gratia for Political Leaders in their budgets. Therefore, PS/ST directed all Accounting Officers to adequately budget for ex-gratia and Councillor\u2019s allowance and pay", "page": 27}}], "page": 27, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 92}}, {"content": "The Accounting Officer is responsible for the Other Information. The Other Information comprises the statement of responsibilities of the Accounting Officer and the commentaries \ndo not express an audit opinion or any form of assurance conclusion thereon.", "metadata": {"headings": [{"headings_0": {"content": "Other Information", "page": 27}}, {"headings_1": {"content": "the Local Government Act. Below are my observations:", "page": 27}}], "page": 27, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 93}}, {"content": "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. \nthe preparation of financial statements that are free from material misstatement whether due to fraud or error. \nDLGs ability to continue delivering its mandate, disclosing, as applicable, matters affecting \nrealistic alternative to the contrary. \na whole are free from material misstatement, whether due to fraud or error, and to issue an \nbut is not a guarantee that an audit conducted in accordance with ISSAIs will always detect", "metadata": {"headings": [{"headings_0": {"content": "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", "page": 27}}, {"headings_1": {"content": "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\u2019 report thereon. My opinion on the financial statements does not cover the Other Information and I", "page": 27}}], "page": 27, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 95}}, {"content": "considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.", "metadata": {"headings": [{"headings_0": {"content": "a material misstatement when it exists. Misstatements can arise from fraud or error and are", "page": 28}}, {"headings_1": {"content": "auditor\u2019s report that includes my opinion. Reasonable assurance is a high level of assurance,", "page": 28}}], "page": 28, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 101}}, {"content": "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", "metadata": {"headings": [{"headings_0": {"content": "\uf0b7 Identify and assess the risks of material misstatement of the financial statements,", "page": 28}}, {"headings_1": {"content": "As part of an audit in accordance with ISSAI\u2019s, I exercise professional judgment and maintain professional scepticism throughout the audit. I also:", "page": 28}}], "page": 28, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 102}}, {"content": "higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. \naudit procedures that are appropriate in the circumstances, but not for the purpose of \naccounting estimates and related disclosures made by management. \naccounting and, based on the audit evidence obtained, whether a material uncertainty", "metadata": {"headings": [{"headings_0": {"content": "my opinion. The risk of not detecting a material misstatement resulting from fraud is", "page": 28}}, {"headings_1": {"content": "\uf0b7 Identify and assess the risks of material misstatement of the financial statements,", "page": 28}}], "page": 28, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 103}}, {"content": "to deliver its mandate. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor\u2019s report to the related disclosures in the financial \nare based on the audit evidence obtained up to the date of my auditor\u2019s report.", "metadata": {"headings": [{"headings_0": {"content": "exists related to events or conditions that may cast significant doubt on the DLGs ability", "page": 28}}, {"headings_1": {"content": "\uf0b7 Conclude on the appropriateness of management\u2019s use of the going concern basis of", "page": 28}}], "page": 28, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 107}}, {"content": "including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.", "metadata": {"headings": [{"headings_0": {"content": "However, future events or conditions may cause the DLG to fail to deliver its mandate. \uf0b7 Evaluate the overall presentation, structure and content of the financial statements,", "page": 28}}, {"headings_1": {"content": "statements or, if such disclosures are inadequate, to modify my opinion. My conclusions", "page": 28}}], "page": 28, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 109}}, {"content": "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", "metadata": {"headings": [{"headings_0": {"content": "However, future events or conditions may cause the DLG to fail to deliver its mandate. \uf0b7 Evaluate the overall presentation, structure and content of the financial statements,", "page": 28}}, {"headings_1": {"content": "statements or, if such disclosures are inadequate, to modify my opinion. My conclusions", "page": 28}}], "page": 28, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 110}}, {"content": "ethical requirements regarding independence, and to communicate with him/her all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. \nwere of most significance in the audit of the financial statements of the current period and \nlaw or regulation precludes public disclosure about the matter or when, in extremely rare \nthe adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. \nIn accordance with Section 19 (1) of the National Audit Act, 2008, I report to you, based on", "metadata": {"headings": [{"headings_0": {"content": "I also provide the Accounting Officer with a statement that I have complied with relevant", "page": 28}}, {"headings_1": {"content": "deficiencies in internal control that I identify during my audit.", "page": 28}}], "page": 28, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 111}}, {"content": "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. \nare as follows; \n8.0 \nregulations requires entities to submit to NPA their five-year development plans for \nI noted that the entity did have a strategic plan that had been approved by NPA. \nachievement of NDP-III objectives. \nNPA for review before approval. \napproved. \n9.0", "metadata": {"headings": [{"headings_0": {"content": "my work described on the audit of Financial Statements, that; except for the matters raised", "page": 29}}, {"headings_1": {"content": "Other Reporting Responsibilities", "page": 29}}], "page": 29, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 116}}, {"content": "Paragraph 6.5.2 (e) of the Treasury Instructions 2017 require the Accounting Officer to maintain a risk register indicating (i) source of the risk, (ii) type of the risk, (iii) mitigating strategy and (iv) the responsible officer for the mitigating strategy.", "metadata": {"headings": [{"headings_0": {"content": "Preparation of Risk Register", "page": 29}}, {"headings_1": {"content": "I advised the Accounting Officer to urgently ensure that the entity\u2019s strategic plan is", "page": 29}}], "page": 29, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 125}}, {"content": "I noted that the entity did not maintain a detailed risk register of risks that may affect the implementation of activities as detailed in the approved work plans and \noccurrence of such risks or to minimize the impact in the event that these risks materialized. \nmitigation or response strategy to risks that may affect the achievement of planned activities.", "metadata": {"headings": [{"headings_0": {"content": "Preparation of Risk Register", "page": 29}}, {"headings_1": {"content": "I advised the Accounting Officer to urgently ensure that the entity\u2019s strategic plan is", "page": 29}}], "page": 29, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 126}}, {"content": "The Accounting Officer acknowledged the shortcoming and pledged to develop a risk register and assign an officer to manage the register. \nJohn F.S. Muwanga \n25 th November 2022", "metadata": {"headings": [{"headings_0": {"content": "The failure to maintain risk registers implies that the entity does not have a", "page": 29}}, {"headings_1": {"content": "budgets. As such, there were no strategies and officers responsible to mitigate the", "page": 29}}], "page": 30, "document_name": "Gulu DLG Report of Auditor General 2022", "type": "paragraph", "index": 129}}, {"content": "| | Acronym | Meaning |\n|---:|:----------|:------------------------------------------------------------------|\n| 0 | CoC | Certificates of Compliance |\n| 1 | GoU | Government of Uganda |\n| 2 | FY | Financial Year |\n| 3 | IESBA | International Ethics Standards Board for Accountants |\n| 4 | INTOSAI | International Organisation of Supreme Audit Institutions |\n| 5 | ISSAIs | International Standards of Supreme Audit Institutions |\n| 6 | LGFAM | Local Government Financial and Accounting Manual |\n| 7 | HR | Human Resource |\n| 8 | HCMS | Human Capital Management System |\n| 9 | IPPS | Integrated Payroll Personnel System |\n| 10 | NDP | National Development Plan |\n| 11 | NPA | National Planning Authority |\n| 12 | MoPS | Ministry of Public Service |\n| 13 | MoFPED | Ministry of Finance Planning and Economic Development |\n| 14 | OAG | Office of the Auditor General |\n| 15 | PAYE | Pay As You Earn |\n| 16 | PBS | Program Budgeting System |\n| 17 | PCA | Payroll Consults Africa |\n| 18 | PDMS | Payroll Deduction Management System |\n| 19 | PSST | Permanent Secretary/Secretary to Treasury |\n| 20 | UCLA/UBA | Uganda Consumer Lenders\u2019 Association/ Uganda Bankers\u2019 Association |\n| 21 | NUSAF | Northern Uganda Social Action Fund |\n| 22 | PFMA | Public Finance Management Act |\n| 23 | PFMR | Public Finance Management Regulations |\n| 24 | SSTA | Sub Single Treasury Account |\n| 25 | STA | Single Treasury Account |\n| 26 | UgIFT | Uganda Intergovernmental Fiscal Transfers Program for Results |\n| 27 | UGX | Uganda Shillings |\n| 28 | NTR | Non-Tax Revenue |\n| 29 | URF | Uganda Road Fund |\n| 30 | UNICEF | United Nation International Children\u2019s Emergency Fund |\n| 31 | GAVI | Global Alliance for Vaccines and Immunisation |\n| 32 | VAT | Value Added Tax |\n| 33 | WHT | Withholding Tax |", "metadata": {"page": 3, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | Account code | Particulars | Amount (UGX) |\n|---:|:---------------|:----------------------------------|:---------------|\n| 0 | 211101.0 | General Staff Salaries | 12,198,466,935 |\n| 1 | 212102.0 | Pension for General Civil Service | 2,682,198,164 |\n| 2 | 213004.0 | Gratuity Expenses | 1,183,204,586 |\n| 3 | 321617.0 | Salary arrears | 14,710,558 |\n| 4 | 321608.0 | Pension and gratuity arrears | 709,480,229 |\n| 5 | | Total | 16,788,060,472 |", "metadata": {"page": 5, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | No | Unnamed: 6 | Recommendation |\n| 1 | Funding and absorption of wage, pension and gratuity I reviewed the approved wage, pension and gratuity estimates for the financial year 2021/2022 and noted that the District budgeted to receive UGX.22,043,000,902 during the year under review and received UGX.22,043,000,902 representing 100% performance. showing breakdown of District Budget and releases Revised budget (UGX) Amount released (UGX) 16,200,065,155 16,200,065,155 3,467,384,396 3,467,384,396 1,636,177,116 14,710,558 1,636,177,116 14,710,558 and 724,663,677 724,663,677 %age funding received (UGX) 100 100 100 100 100 22,043,000,902 22,043,000,902 100 for the year Category Salary Pension Gratuity Salary arrears Pension gratuity arrears Total Table | to advised the Accounting Officer liaise with MoFPED and ensure that the funds for recruitment of staff are released in the first and second quarter. I | nan |\n| 2 | nan | nan | also advised the Accounting Officer to ensure that the DSC are encouraged to sit and approve recruitment on time such reoccurrences. to avoid I |\n| 3 | nan | nan | nan |\n| 4 | nan | nan | nan |\n| 5 | nan | nan | nan |\n| 6 | nan | nan | nan |\n| 7 | nan | nan | nan |\n| 8 | nan | nan | nan |\n| 9 | nan | nan | nan |", "metadata": {"page": 5, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 |\n|---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------|\n| 0 | Out of the total receipts year of UGX.22,043,000,902, UGX.16,788,060,472 was spent by the entity resulting in an unspent balance of UGX.5,254,940,430, representing an under absorption level of 24% as shown in the table below; for the financial Category Expenditure (C) Salary Pension Gratuity Salary arrears Pension and gratuity arrears Total Releases/ Warrant (B) (UGX) 16,200,065,155 3,467,384,396 1,636,177,116 14,710,558 724,663,677 Unspent (B-C) (UGX) 12,198,466,935 2,682,198,164 1,183,204,586 14,710,558 709,480,229 (UGX) 4,001,598,220 785,186,232 452,972,530 0 15,183,448 % absor ption 75% 77% 72% 100% 98% 22,043,000,902 16,788,060,472 5,254,940,430 76% he unspent balance of salaries at the end of the financial year was subsequently swept back to the consolidated fund account, consequently affecting the recruitment of staff. he Accounting Officer explained that the under absorption was due to the district\u2019s failure to complete the planned recruitment within the financial year due to inadequate resources to fund sittings of the District Service Commission members, delayed clearance to fill some key positions by MoPS, failure to attract staff in key positions, bounced payments due to wrong account details, invalid supplier numbers among other issues. T T | Unnamed: 7 |\n| 1 | nan | nan |\n| 2 | nan | nan |\n| 3 | nan | nan |\n| 4 | nan | nan |\n| 5 | nan | nan |\n| 6 | nan | nan |\n| 7 | nan | nan |\n| 8 | nan | nan |\n| 9 | nan | nan |\n| 10 | nan | nan |", "metadata": {"page": 6, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 |\n|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------|\n| 0 | Section B-a (7) of the Uganda Public Standing Orders, 2021 requires salaries to be fixed at annual rates and paid in twelve (12) equal instalments. It also requires salaries to be paid correctly, promptly and as a lump sum in accordance with the approved salary structure for the Public Service. 1.2 Payments of Salary, pension and gratuity a) Over payment of salary, pension and gratuity article 254 (1) & (3) of the constitution of the Republic of Uganda 1995 as amended provides that a public officer shall, on retirement, receive such pension as is commensurate with his or her rank, salary and length of service. The payment of pension shall be prompt and regular and easily accessible to pensioners. review of the payroll registers (IPPS) and IFMS payments revealed an over payment of UGX.5,146,400 in respect of pension as shown in the table below; Category Number of staff/pensioners Pension Total 1 1 Over payment 5,146,400 5,146,400 payment of pension created financial loss to government. he Accounting Officer acknowledged the anomaly and promised to effect recovery of the overpaid amount. T Whereas, My Over | advised the Accounting Officer to effect recovery of excess funds paid. I |\n| 1 | nan | nan |\n| 2 | nan | nan |\n| 3 | nan | nan |\n| 4 | nan | nan |\n| 5 | nan | nan |\n| 6 | nan | nan |\n| 7 | b) Under payment of salary, pension and gratuity Article 254 (1) & (3) of the constitution of the Republic of Uganda | I informed the |\n| 8 | nan | nan |", "metadata": {"page": 6, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|:-----------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | 1995 as amended provides that a public officer shall, on retirement, receive such pension as is commensurate with his or her rank, salary and length of service. The payment of pension shall be prompt and regular and easily accessible to pensioners. review of the payroll registers (IPPS) and IFMS payments revealed an non/under payment of UGX.90,255,113 in respect of pension and gratuity as shown in the table below; Number Category of Under payment staff/pensioners Salaries Pension Gratuity Total 05 49 01 55 4,002,323 65,798,802 20,453,988 90,255,113 noted that the underfunding was mainly caused by Medium Term Expenditure Framework (MTEF) ceilings communicated by MoFPED. payments affected livelihood of pensioners/beneficiaries. he Accounting Officer acknowledged the shortcoming and explained that; \uf0b7 The affected staffs have been informed to fill and submit claim forms on time to enable processing of their payments. \uf0b7 The non-payments of pension were due to lack of supplier numbers, system errors and bounced payments as a result of inconsistent names. However, all pensioners have been formally requested to fill residual pension arrears forms to be submitted to MoFPED and MoPS. \uf0b7 Non-payment of gratuity was caused by the delay in processing the supplier number for the estate. The beneficiary has been advised to fill the residual arrears form for submission to MoFPED. I T My Under | Accounting Officer that this matter would be brought to the attention of the relevant authority. (MoFPED) should consider paying pension and gratuity obligations as a statutory charge without subjecting it to budget ceilings. Government |\n| 1 | Category | nan | nan |\n| 2 | Salaries | nan | nan |\n| 3 | Pension | nan | nan |\n| 4 | Gratuity | nan | nan |\n| 5 | Total | nan | nan |", "metadata": {"page": 7, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | noted that the underfunding was mainly caused by Medium Term Expenditure Framework (MTEF) ceilings communicated by MoFPED. payments affected livelihood of pensioners/beneficiaries. he Accounting Officer acknowledged the shortcoming and explained that; \uf0b7 The affected staffs have been informed to fill and submit claim forms on time to enable processing of their payments. \uf0b7 The non-payments of pension were due to lack of supplier numbers, system errors and bounced payments as a result of inconsistent names. However, all pensioners have been formally requested to fill residual pension arrears forms to be submitted to MoFPED and MoPS. \uf0b7 Non-payment of gratuity was caused by the delay in processing the supplier number for the estate. The beneficiary has been advised to fill the residual arrears form for submission to MoFPED. I T Under | nan | nan |\n| 1 | c) | Payment of salary using wrong salary scales and salary bands/levels/notches Section B \u2013 a (6) & (7) of the Uganda public service standing orders, 2021 provides that the Salary Structure shall indicate salaries attached to each salary scale in the public service, hence, salaries should be paid correctly, promptly and as a lump sum in accordance with the approved salary structure for the Public Service. (B - c) 1 of Public Service Standing Orders, 2021 provides that a public officer who holds a post graded in a salary scale with incremental levels, shall receive annual increments up to the maximum of the salary scale, provided his or her work during the year has been satisfactory. comparison of the base pay as per IPPS payroll registers with the base pay as per salary structure for 2021/22 revealed that all staff were paid on the right scales. 391 of them were paid on wrong bands/levels/notches. This led to over payments of UGX.15,872,018 and under payments of UGX.2,598,635. Section My Also | I I informed the Accounting Officer that this matter would be brought to the attention of the relevant authority. advised the government through MoPS to ensure that the Human Capital Management System (HCMS) that is to be rolled out to all MDALGs automates notch salary increments. the |", "metadata": {"page": 7, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|:-----------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | payment due to lower notches denies the affected staff their emoluments and affects their terminal benefits. Over payments caused financial loss to government. he Accounting Officer explained that; \uf0b7 Salary annual increments have remained a challenge to the district since it has to date not been automated on IPPS by Ministry of Public Service. \uf0b7 For the overpaid officers, a recovery schedule has been developed and will be captured on IPPS effective October, 2022 and for the staff underpaid, their salary will be adjusted to the correct salary steps or notches. T Under | Unnamed: 2 |\n| 1 | d) | Salary payment to non-existent employees and pensioners Section (L - b) (2) of Uganda public service standing orders 2021 on retirement benefits provides that a public officer will not normally become pensionable unless he or she is appointed and confirmed in an established office. A pensionable public officer has a legal right to a pension and the Constitution protects this position. noted that UGX.1,909,067 was paid to 01 pensioner who neither appeared on the IPPS payroll register nor had the necessary documentation in his pension file to support his existence to non-existent pensioners leads to over statement of expenditure and understatement of receivables in the Financial Statements. he Accounting Officer explained that this issue was brought to the attention of Management by the Internal Auditor and recovery had been effected. I T Payment | advised the Accounting Officer to finalize with the investigation and delete the officer/ghost from the payroll. I |", "metadata": {"page": 8, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|:----|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------|\n| 0 | e) | Inaccurate computation of pension and gratuity Paragraph (L-d) (1) & (2) of the Uganda Public Service Standing Orders, 2021 on the computation of pension and commuted pension gratuity provides that pension is computed on the basis of (1/500) th of the annual salary at the time of retirement, multiplied by the total number of completed months of service using the formula P = LS x Sal/ (500) where P is Pension, LS is the length of Service in months, and Sal is the annual salary on retirement. Paragraph (L-d) (3) provides that a public officer has an option to receive all his or her pension as an annuity or to commute a third (1/3) of his or her pension for a 15-year period and receive it as a lump sum at retirement. recomputed the pension and gratuity benefits and noted the following; Gratuity payments Through a re-computation of gratuity benefits, I noted that Gulu District had wrongly computed the gratuity benefits of 3 pensioners who were paid gratuity during the year resulting into an overstatement of UGX.1,411,474 and understatement of UGX.2,325,648. I Additionally, i) | I advised the Accounting Officer to ensure that PHRO/PIA carries out internal and checks confirm reviews to |", "metadata": {"page": 8, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | In addition, I compared the re-computed gratuity and actual gratuity paid and noted an over payment of UGX.1,411,474 to 01 and of UGX.2,325,648 to 02 pensioners/beneficiaries. pensioner/beneficiary an underpayment Officer acknowledged the issues and pledged to recover the overpayment and make good the underpayment. Accounting | accuracy of computation prior making payments. to |\n|---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | ii) Pension benefits Through a re-computation of pension benefits, I noted no significant variance resulting into an overstatement and understatement. In addition, I compared the re-computed pension given the number of months the person was paid in the year and actual pension paid and noted an over payment of UGX.8,172,877 to 2 pensioners/beneficiaries. Accounting Officer attributed to erroneous understatement of length of service, recovery has been instituted. The this | I advised the Accounting Officer to ensure that PHRO/PIA carries out internal reviews and checks to confirm accuracy of computation prior making payments. to | |\n| 1 | f) | Delayed removal of staff from payroll Section B-a (12) of the Uganda Public Standing Orders, 2021 provides that payment of a salary to a public officer shall be stopped immediately the officer ceases to render services to Government under whatever circumstances including death. noted that UGX.8,073,588 was paid to 5 staff who had either retired, transferred, absconded or died with average delays of 5 months. elayed removal of staff from payroll resulted into financial loss to government. Officer acknowledged the issue and explained that the recovery will be made from the retirement benefits. forward, the introduction of HCMS, will most likely resolve this issue. I informed the Accounting Officer that the matter would be brought to the attention of MoPS. I D Accounting Going | I advised the Accounting Officer in case of transfer of staff from one district to another, the transferee district should be notified immediately. for the retirees, abscondees, and in cases of death, funds should be recovered. the As |\n| 2 | g) | Misclassification of salary, pension and gratuity expenditure Section 7.10.3 of the treasury instructions 2017 stipulates that the chart of accounts provides a basis for a uniform budget classification and execution, therefore, it is mandatory for all votes to use the coding structure to budget and execute the budget. By implication the entities have to charge expenditure to the appropriate code during budgeting and execution. I noted that funds amounting to UGX.41,648,614 relating to salary and gratuity were charged on account codes other than those prescribed for salary and gratuity. a result, the financial statements do not show the true nature of transactions of the district. As | I I informed the Accounting Officer that this matter would be brought to the attention of the relevant authority. advised the Accounting Officer to ensure payment of salary, |", "metadata": {"page": 9, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Accounting Officer explained that for a number of years, the Ministry of Public Service have continued to send gratuity for political leaders and chairperson DSC combined with their salaries on one payroll (salary) and one interface file and being charged from salary account despite the two being budgeted for separately having two different accounts codes. This at the end is being considered as misclassification by Local Governments when actually the challenges are being created by the MoPS. We request that this matter be addressed to MoPS | pension and gratuity is done right account codes. on the |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 1.3 | 3 Payroll Deductions | |\n| 1 | | Management of non-statutory deductions Government of the Republic of Uganda represented by the Ministry of Public Service entered into a service agreement with UCLA/UBA on 3 rd January 2020 to manage the loan deductions of civil servants. Consumer Lenders\u2019 Association/ Uganda Bankers Association (UCLA/UBA) contracted Payroll Consults Africa (PCA) to manage employee deductions on their behalf using the Payroll Deduction Management System (PDMS). reviewed employee payroll deductions (non-statutory) and the PDMS records (active deductions report and my approvals) and observed the following; a) Letters of undertaking or Consent Section 4.2 (b) of the guidelines of managing salary deductions on the Government payroll, 2014 states that as part of the due diligence process, the credit lending institutions and banks will seek for a letter of undertaking from the Accounting Officer/employer or a designated officer confirming that the officer is a bona fide Government employee indicating his or her positions in the MDA/LG, payment details, terms of appointment and other details that may be prescribed by the lending institution. observed that all loan/savings deductions to employees were supported with letters of undertaking or consent letters as a prerequisite of approval of the deductions. ) Deduction past the deduction end date I observed that UGX.10,251,751 relating to 06 employees was deducted past the end date. Deductions past the end date reduces the net pay of the affected employees. resulted into financial loss of the affected employees. Deductions past the end date result into financial loss to the affected staff. Unrealistic loan end dates I noted that unrealistic loan end dates for 45 employees ranging from 9 to 232 years. In the year under review, UGX.74,553,000 had been deducted from these employees. I b I T he above end dates are unrealistic and cast doubt on the integrity of the PDMS system. This has led to continuous Uganda c) This | I informed the Accounting Officer that these matters would be brought to the attention of the relevant authorities. Government through |", "metadata": {"page": 10, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | the PDMS Section 2.1.2 & 2.1.4 of the service agreement requires that written approval should be obtained from the Responsible Officer(s) for each Government employee before uploading a deduction on their payroll record or making an employee reservation (an invitation to treat) on the PDMS. In addition, only deductions consented to by employees, in writing, should be submitted to the Ministry of Public Service for timely monthly payroll processing or as advised by Ministry of Public Service. ) Unapproved loan deductions by Accounting Officer in deductions from staff resulting into financial loss. payroll deductions under code 482 are required to be approved by the Accounting Officer in the PDMS under \u201cmy approvals\u201d report. I observed that UCLA/UBA deducted UGX.1,468,850 from 8 staff without approval of the Accounting Officer from the PDMS. This creates an opportunity for misappropriation of funds through making fictitious deductions as well as over deductions. addition, an over deduction of UGX.3,483,930 and under deduction of UGX.9,736,407 was made by UCLA/UBA from 113 staff against the approved amounts by the Accounting Officer. This resulted into financial loss to the affected staff. Reliability of the Payroll Deduction Management System \u201cActive\u201d deductions report and \u201cmy approvals\u201d report in the PDMS should have consistent deduction amounts to give confidence in the accuracy and integrity of the system. comparison of the \u201cactive deductions\u201d and \u201cmy approvals\u201d reports in the PDMS revealed that there were variances in deduction amounts. also noted that there were variances in monthly deduction amounts in active deductions report in the PDMS and IPPS payroll. of integrity of the system creates an opportunity for manipulation of the deduction which could result into financial loss to the affected employees. Accounting Officer explained that the entity had no control over the challenges in the management of non-statutory deductions in the PDMS system by UCLA/UBA. The role of the District is to receive the finalised payroll and interface files, process and make payments to Uganda Consumer Lenders Association (UCLA)/ Uganda Bankers Association (UBA). d A I e) All In Lack The | MoPS should consider revisiting the MoU with UCLA/UBA with a view of streamlining the management of deductions. deductions the meantime, the role of coding and decoding of should revert to the respective Accounting Officers. In |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 1.4 | Management of Statutory Deductions | |\n| 1 | a) | T Computation and deduction of Local Service Tax (LST) The Local Governments (Amendment) (No. 2) Act of 2008 provides that local service tax shall be levied on all persons in gainful employment. he Act also prescribes the rates of LST in respect of persons in | informed the Accounting Officer that these matters would be brought to the attention of the relevant I |", "metadata": {"page": 11, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|:-----------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | gainful employment and earning a monthly take-home salary. An analysis of the IPPS register and re-computation of LST revealed the following; \uf0b7 LST was deducted from all employees on the payroll. \uf0b7 The District had wrongly deducted the LST of 592 employees resulting into an over deduction of UGX.85,000 and under deduction of UGX.2,615,000. A soft copy of 592 transactions was submitted to the Accounting Officer. The Accounting Officer explained that, the computation of Local Service Tax (LST) is the responsibility of Ministry of Public Service. The district receives the computed and finalized deductions on the payroll and the interface file for payment. | authorities. Government through MoPS to ensure that the system deducts the right amounts from the staff. |\n| 1 | b) | Computation and deduction of Pay As You Earn (PAYE) Section 116 (1) of the Income Tax Act Cap 340 as amended provides that every employer shall withhold tax from a payment of employment income to an employee as prescribed by Regulations made under Section 164. The third schedule of the Income Tax Act Cap 340 as amended prescribes a threshold of UGX.235,000 per month above which an individual should be subjected to PAYE. he third schedule also prescribes the income tax rates applicable to individuals in gainful employment. analysis of the IPPS register and re-computation of PAYE revealed that PAYE of UGX.2,796,827 was not deducted from 1 employee on the payroll as shown below. Employ ee No. 746659 SN 1 Name Annual Taxable Income PAYE not deducted Individual 13,242,756 2,796,827 to deduct PAYE leads financial loss to government. he Accounting Officer explained that, the computation of Pay As You Earn (PAYE) is the responsibility of Ministry of Public Service. The district receives the computed and finalized deductions on the payroll and the interface file for payment. T T An Failure | informed the Accounting Officer that these matters would be brought to the attention of the relevant authorities. through MoPS to ensure that the system deducts the right amounts from the staff. I Government |\n| 2 | nan | nan | nan |\n| 3 | nan | nan | nan |\n| 4 | nan | nan | nan |\n| 5 | nan | nan | nan |", "metadata": {"page": 12, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|:----|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------|\n| 0 | c) | Remittance of deductions (LST, PAYE, UNATU, UCLA) Section B-a (17) of the Uganda Public Standing Orders, 2021 requires the Accounting Officer to deduct any monies due to Government from an Officer\u2019s salary by way of statutory taxes like and any other authorized deductions. Furthermore, section B-a (18) requires that a public officer\u2019s individual contractual obligations such as hire purchase, loan, and contributions to saving schemes, trade unions and staff associations may be deducted from his or her salary in accordance with the regulations. addition, section 10.2 of the guidelines and procedures for decentralized salary processing 2014 required MALGS to pay deductions to the respective beneficiaries and that no arrears in respect to payroll deductions would be accepted. In | to update advised the Accounting Officer the payroll so as to remove the staffs who have been relocated to Gulu City Council. I |", "metadata": {"page": 12, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 |\n|---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------|\n| 0 | I compared the deductions in the IPPS payroll registers with the remittances/payments in the IFMS details XML payment file and noted an under remittance of UGX.29,022,567 as shown in the table below. Beneficiary Deducti on code IPPS payroll Deduction amount (UGX) Amount remitted as per IFMS (UGX) 1. URA UNATU UBA LST 249 257 482 250 2,373,617,23 9 30,277,547 966,175,382 62,190,000 2,372,793,73 8 29,140,894 950,616,670 59,657,500 Variance Under remittance (UGX) 823,501 1,136,653 15,558,712 2,532,500 Over remitt ance (UGX) 0 0 0 0 Gulu District 0 General Fund (SALREC) Total SALREC 8,971,201 0 8,971,201 3,441,231,3 69 3,412,208,8 02 0 29,022,567 remittance creates obligations to the entity that could result into fines and penalties. Under remittance also creates avenues for siphoning funds through creation of fictitious suppliers/ beneficiaries in the system. he Accounting Officer explained that; One staff called Opiru Santo; a Veterinary Officer Omoro DLG who keeps appearing on Gulu DLG Payroll. However, before payments of salary and deductions are effected, the name is usually remittance of deductions. removed therefore causing under \uf0b7 When Gulu City was created, a number of facilities that included Schools, Health Centres, Parishes and Tertiary institutions were curved from Gulu DLG to Gulu City. However, the process of automatic migration of their names from Gulu DLG payroll to Gulu City payroll delayed and some of the staffs kept appearing on the Gulu DLG payroll and before payments of salary and deductions are effected, the names are usually removed therefore causing under remittance of deductions. . S N 2. 3. 4. 5. T \uf0b7 Under | Unnamed: 7 |\n| 1 | nan | nan |\n| 2 | nan | nan |\n| 3 | nan | nan |\n| 4 | nan | nan |\n| 5 | nan | nan |\n| 6 | nan | nan |\n| 7 | nan | nan |\n| 8 | nan | nan |\n| 9 | nan | nan |\n| 10 | nan | nan |\n| 11 | nan | nan |\n| 12 | nan | nan |\n| 13 | nan | nan |\n| 14 | nan | nan |", "metadata": {"page": 13, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 |\n|---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | I T T 1.5 Payroll Management System Issues Inconsistencies between interface files and payroll registers Section 13.1 and 13.2 of the guidelines and procedures for decentralised salary payment processing, 2014 requires that the IPPS information tallies with the interface file of the vote. By, the final payroll should be mapped onto the interface to show the same data. compared the payroll registers (IPPS file) with the IFMS interface files and observed that there were variances UGX.46,184,245. his creates an opportunity for manipulation and misappropriation of salary funds and could also lead to over/under payments of salary. he Accounting Officer attributed this to Madi\u2013Okollo DLG staff | informed the Accounting Officer that the matter will be brought to the attention of the relevant Authority. through MoPS should fast track the rollout and implementation of the Human Capital Management system to avoid such errors. I Government |\n| 1 | nan | nan |\n| 2 | nan | nan |", "metadata": {"page": 13, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 |\n|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | appearing on Gulu payroll and staff disappearances from the payroll for August and November 2021 but on interface files their names were sent. However, the Ministry of Public Service can best explain the variation or the inconsistencies. | Unnamed: 6 |\n| 1 | Payments of salaries, pension & gratuity off the IPPS Paragraph 4.5 of establishment notice no. 2 of 2019 requires the responsible officer to pay for only salaries, pension and gratuity processed through IPPS. comparison of the IPPS payroll register and IFMS payment file revealed that UGX.13,908,359 was paid off the IPPS to 02 employees and 02 pensioners/beneficiaries as shown below and detailed in the table below; Category Number staff/pensioners of Payment Off IPPS Salaries Pension Total 2 2 4 9,672,498 4,235,861 13,908,359 he above was caused by payment of eligible employees and pensioners off the IPPS due to errors in the payroll registers generated by MoPS. In addition, despite the submission of pay change reports to MoPs to correct the payroll errors, this at times is not done on time thus paying off IPPS. his creates an opportunity for misappropriation of funds through payment of ineligible staff and creation of non-existent staff/pensioners. he Accounting Officer explained that; These staffs have been on the interface file but not on the payroll. Management established that the names related to Madi-Okollo DLG were coded by MoPS by error. The assignment coded 508 was linked to a health facility in another district. The same way some of their staff also appeared on Gulu DLG interface file but not the payroll. Management wrote to Ministry of Public Service about this anomaly and this was corrected in the month of the August, 2022. One pensioner was paid off IPPS because of validation challenges/errors. He could not be validated because his picture and Date of Birth failed to generate during validation. However, this payment was his pension arrears for the months he missed as a result of this anomaly. Management wrote to Ministry of Public Service about this anomaly. A T T T \uf0b7 \uf0b7 | informed the Accounting Officer that the matter will be brought to the attention of MoPS. through MoPS should fast track the rollout and implementation of the Human Capital Management system. I Government |\n| 2 | nan | nan |\n| 3 | nan | nan |\n| 4 | nan | nan |\n| 5 | nan | nan |\n| 6 | nan | nan |", "metadata": {"page": 14, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | No | Observations | Recommendations |\n|---:|-----:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------|\n| 0 | 2.1 | Planning, Budgeting & Funding for Land Acquisition Regulation 25 (1) of The National Planning Authority (Development Plans) Regulations, 2018 requires a decentralised planning institution (Ministry, Department or Agency of Government, a sector or Local government) to prepare a decentralized development plan highlighting the development needs of the institution. Instruction 3.9.5 the Treasury Instructions, 2017 requires the budget estimates to be based on the pre-determined objectives and outputs as provided in the strategic plans of the sector/entity. of review of the two strategic plans (2015/2016-2019/2020 & 2020/2021-2024/2025) of Gulu District and budgets for the period 2018/19-2021/22 revealed that the district did not plan to acquire Land for that period and therefore there was no budget for land acquisition. review of the procurement plan, reports, payment file and Land inventory revealed that no land was procured during the period under review. A A Furthermore, | |\n| 1 | 2.2 | Registration and Titling of Land Titling and Transfer Section 49 (c) of the Land Act, Cap 227, states that the Uganda Land Commission shall procure certificates of title for any land vested in or acquired by the Government. noted the entity had 92 pieces of land out of which 36 pieces measured approximately 112.214 hectares while 56 pieces had no approximated measure attached at the reporting date. I | the advised the Accounting Officer to expedite title acquisition process in order to safe guard the entity\u2019s land. I |", "metadata": {"page": 15, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | No | Observations | Recommendations |\n|---:|:-----------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | I also observed that the entity did not have Land titles for 76 pieces of land. Out of these, 20 pieces measured 64.5 hectares and 56 pieces had no approximated measure in hectares. The entity has taken an average of 120 months from the time of acquisition without obtaining titles. of Land titles may result into encroachment, disputes and loss of public land. Accounting Officer attributed the anomaly to funding gaps and the non-existence of the District Land Board at the time. He further indicated that the District Land Board had been fully constituted and sworn in and the process of titling had started with the applications to the board. Lack The | Unnamed: 2 |\n| 1 | 2.3 | Instruction 16.6.1 of the Treasury Instruction, 2017 requires the Accounting officer to maintain an electronic or manual register, in a form (TF 26) for all assets that contain the minimum of the following; Date of purchase of the asset, The supplier, The type and description of each asset,(for land - land registration number, The acquisition cost of the asset, The physical location of the asset, User of the asset/, Condition of the asset, Date of disposal (as applicable); and (l) Disposal proceeds (as applicable). review of the district land register revealed the following; A \uf0b7 3 out of 92 pieces of the entity\u2019s land measuring approximately 4.495 hectares had no estimated cost attached whereas 56 pieces had no approximated measures of size attached. \uf0b7 89 pieces of the costed at UGX.31,535,000,000 were not recorded in the entity\u2019s land register and the completeness of its land inventory could not be confirmed. total land The non-recording of land in the land register affects the entity\u2019s ability to keep track and monitor all its land. Accounting Officer explained that the District was going to update its Land registry. Recording & Reporting of Government Land a) Maintenance of land Register The | I advised the Accounting Officer to expedite the process of updating the register to address the identified gaps to ensure all Land is duly recorded in the entity Land register. |", "metadata": {"page": 16, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | No | Observations | Recommendations |\n|---:|:-----|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------|\n| 0 | | b) Recording in IFMS and presentation in the financial statements Instruction 10.12.4 of the Treasury Instruction, 2017 requires all fixed asset acquired to be captured in the fixed asset module of the Government Financial Management Information System (GFMIS)-IFMS. noted land measuring approximately 112.214 hectares and 56 pieces of land I that 36 pieces of | I advised the Accounting Officer to expedite the process of ensuring that all entity land is updated in the GFMIS asset module. |", "metadata": {"page": 16, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | No | Observations | Recommendations |\n|---:|:-----------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | with no approximated measure of size 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 leads to misstatement of the non-produced assets in the statement of financial position and in the summary statement of stores and other assets (physical assets). The Accounting Officer promised to complete the process of updating the Land register in the GFMIS asset module. Failure | Unnamed: 2 |\n| 1 | 2.4 | Utilization of Government Land for Delivery of Service a) Use of Land in accordance with approved purpose in the entity Strategic Plan According to the approved Strategic Plan, the entity did not intend to procure Land. noted that existing 3 pieces of land measuring approximately 11.767 hectares were not used in accordance with the approved purpose set out at the entity. of land for unapproved purposes defeats the purpose for acquisition which may affect the entity\u2019s ability to achieve its intended objectives. he Accounting Officer explained that the District is in the process of fast tracking and resolving land issues to improve service delivery to the beneficiaries. I T Use | advised Accounting Officer to fast track resolving the issues relating to land so as to enable service delivery the rightful beneficiaries to I |\n| 2 | | Instruction 16.13.12 of the Treasury Instruction, 2017 requires that to control an asset, a government entity usually be the predominant user of the asset. noted that 3 pieces of land measuring approximately 11.767 hectares valued at UGX.17,065,000,000 out of the total 92 pieces of entity land (total entity land not measured/costed) was not utilized by the entity at the time of audit. land if not secured is susceptible to encroachment hence depletion of Public Land. The Accounting Officer explained that the District was financially strained but with many development plans and continuing to engage members of the community who claim ownership the land in question. He also indicated that the entire community agrees to the fact that the land in Oroko belongs to the District. I b) Unutilized Land Vacant | advised the Accounting Officer to have land issues pertaining the above land resolved for enhancement of service delivery. I |", "metadata": {"page": 17, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | c) Unutilized buildings on entity land Instruction 16.13.12 of the Treasury Instruction, 2017 requires that to control an asset, a government entity usually be the predominant user of the asset. noted that 2 blocks of 2 classrooms each at St Martin Primary School in Bungatira Sub County with unknown measure of size valued at UGX.80,000,000 were idle and losing value at a steady rate at the time of audit. infrastructure is susceptible to misuse and loss in value due to non-maintenance hence write-off. he Accounting Officer explained that the matter was before court vide Miscellaneous Application No. 008 of 2022 arising from Civil Suit No. 07 of 2014 by Watwero Enterprises Ltd. Consequently, Gulu District was ordered by the High Court at Gulu to restrain from completion of the 2 blocks of classrooms at St. Martin Lukome Primary School pending the disposal of Civil Miscellaneous Application No. 008/2022. I T Idle | advised the Accounting Officer to expedite the process of resolving the court issues so that these assets are used to deliver services to the beneficiary communities. I |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | | d) Encumbrance on Public Land Instruction 16.13.12 of the Treasury Instruction, 2017 requires that to control an asset, a government entity should be the predominant user of the asset. noted that 2 pieces of land measuring 5.946 hectares valued at UGX.10,065,000,000 out of the unknown hectares of the entity had encumbrances in the form of caveats, court injunctions and encroachment. land owned by his hinders management\u2019s ability to utilize the affected land for the intended purpose, and may pose a risk of loss of land. The Accounting Officer explained that; \uf0b7 For the Land in Oroko, a committee was formed to handle the matter and the complainant was invited for a dialogue with the District. \uf0b7 Whereas for Plot 84-92 Jomo Kenyatta Road, the issue was in court and awaits disposal. I T | I advised the Accounting Officer to resolve all forms of encumbrances on the land ensure uninterrupted utilization of land for service delivery to |\n| 1 | 2.5 | Disposal of Public Land a) Planning for land disposal Regulation 2(2) of the PPDA (Disposal of Assets) Regulation, 2014 requires the user Department to initiate a process for disposal of public assets or the board of survey to recommends the disposal of the asset. noted that the entity donated 1 piece of land along Princess Road at Senior Quarters (Production Office) measuring 0.4420 hectares to Court of Appeal through a council resolution. I | |", "metadata": {"page": 18, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | c) Unutilized buildings on entity land Instruction 16.13.12 of the Treasury Instruction, 2017 requires that to control an asset, a government entity usually be the predominant user of the asset. noted that 2 blocks of 2 classrooms each at St Martin Primary School in Bungatira Sub County with unknown measure of size valued at UGX.80,000,000 were idle and losing value at a steady rate at the time of audit. infrastructure is susceptible to misuse and loss in value due to non-maintenance hence write-off. he Accounting Officer explained that the matter was before court vide Miscellaneous Application No. 008 of 2022 arising from Civil Suit No. 07 of 2014 by Watwero Enterprises Ltd. Consequently, Gulu District was ordered by the High Court at Gulu to restrain from completion of the 2 blocks of classrooms at St. Martin Lukome Primary School pending the disposal of Civil Miscellaneous Application No. 008/2022. I T Idle | advised the Accounting Officer to expedite the process of resolving the court issues so that these assets are used to deliver services to the beneficiary communities. I |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | Unnamed: 1 | Unnamed: 2 |\n| 1 | 2.6 | Lease of Public Land a) Register of Leased land Guideline 8.4.4 of the GoU Asset Management Framework and Guidelines, 2020 requires a schedule of land or any other asset disposed through a lease arrangement to be maintained following the provided format. noted that whereas the DLB leased out 5 pieces of land, 2 of which measured 6.958 hectares and 3 of unknown measurement during the period under review, all leased land was not traceable to the lease register. to maintain a leased land register affects the entity\u2019s ability to properly manage and trace the public land, which may result into fraud. The Accounting Officer promised to update and maintain the lease land register. I Failure | I advised the Accounting Officer to maintain a register of leased land and an updated schedule of land leased out. |\n| 2 | | b) Irregularities in Management of leased land Regulation 6 of the Land Regulations, 2004 requires a lease offer made by a board or the commission to communicate the offer stating the terms and conditions of the offer conditioned upon payment of fees and other charges, in full or by instalment. reviewed a sample of 04 of lease files held by the DLB and noted the following; None of the leases for land had expired at the time of audit. \uf0b7 Two (02) pieces of land, one measuring 5.821hectares leased out had not been developed as per conditions of the lease agreement. \uf0b7 Out of the lease rentals of UGX.30,300,000 expected in the period under review, the entity did not realise any revenue. \uf0b7 One (01) lease for land with unknown measure of hectares to Nsamizi Training Institute of Social Development was renewed on the 10 th of May, 2021 without payment of ground rent arrears or development of land as per lease agreement. in lease management processes lead to loss of revenue and public land. I \uf0b7 The Accounting Officer acknowledged the shortcoming and promised to put in place stringent measures to strengthen the lease management. Irregularities | I advised the Accounting Officer to strengthen internal controls surrounding lease management. |", "metadata": {"page": 19, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | c) Unutilized buildings on entity land Instruction 16.13.12 of the Treasury Instruction, 2017 requires that to control an asset, a government entity usually be the predominant user of the asset. noted that 2 blocks of 2 classrooms each at St Martin Primary School in Bungatira Sub County with unknown measure of size valued at UGX.80,000,000 were idle and losing value at a steady rate at the time of audit. infrastructure is susceptible to misuse and loss in value due to non-maintenance hence write-off. he Accounting Officer explained that the matter was before court vide Miscellaneous Application No. 008 of 2022 arising from Civil Suit No. 07 of 2014 by Watwero Enterprises Ltd. Consequently, Gulu District was ordered by the High Court at Gulu to restrain from completion of the 2 blocks of classrooms at St. Martin Lukome Primary School pending the disposal of Civil Miscellaneous Application No. 008/2022. I T Idle | advised the Accounting Officer to expedite the process of resolving the court issues so that these assets are used to deliver services to the beneficiary communities. I |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | | c) Irregular allocation of Land by District Land Board (DLB). Regulation 23 (1) of the Land Regulations, 2004 on procedure in connection with allocation of land by the board requires a person to apply to the board to be | I await the outcome of the court process. |", "metadata": {"page": 19, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | c) Unutilized buildings on entity land Instruction 16.13.12 of the Treasury Instruction, 2017 requires that to control an asset, a government entity usually be the predominant user of the asset. noted that 2 blocks of 2 classrooms each at St Martin Primary School in Bungatira Sub County with unknown measure of size valued at UGX.80,000,000 were idle and losing value at a steady rate at the time of audit. infrastructure is susceptible to misuse and loss in value due to non-maintenance hence write-off. he Accounting Officer explained that the matter was before court vide Miscellaneous Application No. 008 of 2022 arising from Civil Suit No. 07 of 2014 by Watwero Enterprises Ltd. Consequently, Gulu District was ordered by the High Court at Gulu to restrain from completion of the 2 blocks of classrooms at St. Martin Lukome Primary School pending the disposal of Civil Miscellaneous Application No. 008/2022. I T Idle | advised the Accounting Officer to expedite the process of resolving the court issues so that these assets are used to deliver services to the beneficiary communities. I |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | the application by giving notice allocated land in the district which is not owned by any person or authority. In addition, Regulation 23 (2) of the Land Regulations, 2004 requires the commission to advertise in a newspaper with wide circulation to draw the attention of persons likely to be affected by the application, invite any person to comment on or object to the application and thereafter determine whether the applicant should be allocated the land for which the application is made; I noted that the Board did not allocate/lease land that it did not have control over. \uf0b7 I noted that the Board allocated 2 pieces of land with un-approximated measures in hectares without; advertising or drawing attention to persons likely to be affected by the applications. allocation of Land by the DLB may lead to litigation and conflict. he Accounting Officer explained that, plots 23-25 Obia Road were leased by the former controlling authority (Gulu Municipal Council) in 1968 and 1994 respectively as the lessor. However, the district inherited whatever took place in the past. The matter on this, Civil Suit 0010 of 2011 was in court. \uf0b7 T Irregular | Unnamed: 2 |", "metadata": {"page": 20, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | c) Unutilized buildings on entity land Instruction 16.13.12 of the Treasury Instruction, 2017 requires that to control an asset, a government entity usually be the predominant user of the asset. noted that 2 blocks of 2 classrooms each at St Martin Primary School in Bungatira Sub County with unknown measure of size valued at UGX.80,000,000 were idle and losing value at a steady rate at the time of audit. infrastructure is susceptible to misuse and loss in value due to non-maintenance hence write-off. he Accounting Officer explained that the matter was before court vide Miscellaneous Application No. 008 of 2022 arising from Civil Suit No. 07 of 2014 by Watwero Enterprises Ltd. Consequently, Gulu District was ordered by the High Court at Gulu to restrain from completion of the 2 blocks of classrooms at St. Martin Lukome Primary School pending the disposal of Civil Miscellaneous Application No. 008/2022. I T Idle | advised the Accounting Officer to expedite the process of resolving the court issues so that these assets are used to deliver services to the beneficiary communities. I |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 2.7 | Loss of Land and Buildings Regulation 9 (2(b)) of the Local Government Financial and Accounting Regulations 2007 the responsibility of the Accounting Officer among other is to ensure that the public moneys, property and resources for which he or she is responsible as accounting officer are properly managed and safeguarded. stipulates that 9(2)(J) of the Local Governments Financial and Accounting regulations requires the chief executive to establish proper storage facilities with accounting and financial control systems to ensure efficient receipt, issue and safe custody of stores, vehicles, plant and other assets. I noted during the period under review that Council lost properties land worth over UGX.3,416,000,000 when court attached and disposed off properties vide Civil Suit No. 145 of 2003. including buildings and \uf0b7 In 2003, 89 individuals (former staffs) sued Gulu DLG for special and general damages and costs arising from the respondent\u2019s illegal termination of their respective contracts of employment. \uf0b7 In 2011, 8 years after, the district was ordered to pay severance packages, gratuity, pensions and costs and interest of 18% gratuity per annum from 2002. \uf0b7 Due to the default of the district to comply with the court orders, the decretal sum had by 31 st October, Section Background | action advised forward from the Accounting Officer going to desist taking drastic in terminating district employees without exhausting all the necessary procedures. I |", "metadata": {"page": 20, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | Revenue Source | Approved Budget | warrants | Variance | %age of performance |\n|---:|:--------------------------------------|:------------------|:---------------|:--------------|:----------------------|\n| 0 | Local Revenue | 497,453,999 | 497,004,131 | 449,868 | 99.9% |\n| 1 | Central Government grants | 28,113,411,068 | 27,467,424,781 | 645,986,287 | 98% |\n| 2 | Transfers from other government units | 2,701,140,418 | 2,521,461,161 | 179,679,257 | 93% |\n| 3 | External Assistance | 3,008,001,000 | 451,067,296 | 2,556,933,704 | 15% |\n| 4 | Total | 34,320,006,485 | 30,936,957,369 | 3,383,049,116 | 90% |", "metadata": {"page": 22, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | Category | Management response clearly indicating causes | Effects on service delivery |\n|---:|:-----------------------------------------------|:-------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Local Revenue | The district collected more than was budgeted. | \uf0b7 All activities were fully funded to the full extent of the budget. |\n| 1 | Central Government Grants | This was caused by budget cuts from MoFPED and the district had communicated to MoFPED for the funds to be revoted | \uf0b7 Construction works for schools and health centres remained incomplete which affected delivery of education and the community. health services to |\n| 2 | Transfers received from other government units | This was caused by the fact that URF, UNEB, MGLSD, MOLG (PRELNOR) & MOH send money their discretion. at | improvement \uf0b7 Failure to fund URF, UWEP and You the projects negatively affected expected of livelihoods \uf0b7 Failure to fund Prelnor projects negatively expected improvement of livelihoods and health services were affected as well. affected |\n| 3 | External Assistance | This was caused by the fact that the donors send money at their discretion | \uf0b7 Health services were negatively affected in terms of immunisation, treating of Tuberculosis and Malaria, \uf0b7 Constructions of school facilities and rehabilitations of boreholes which affected education services and clean water services. |", "metadata": {"page": 23, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | No | Out-put | Activity | Amount- Unspent |\n|---:|-----:|:---------------------------------------------------|:--------------------------------------------------------------------|:------------------|\n| 0 | 1 | | Payment of wage, gratuity, pension gratuity arrears and development | 5,213,209,486 |\n| 1 | 2 | Classroom construction and rehabilitation | Transfers to Palaro Seed School (UGIFT) | 126,903,429 |\n| 2 | 3 | Classroom construction and rehabilitation | Transfers to Sir Samuel Baker Secondary school (UGIFT) | 1,180,894,413 |\n| 3 | 4 | Classroom construction and rehabilitation | Transfers to Laminto P/s (non- wage) | 62,622,508 |\n| 4 | 5 | OPD and other ward Construction and Rehabilitation | Transfers to Omel Apem HCII | 598,013,277 |", "metadata": {"page": 23, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | 6 | Unnamed: 1 | Payments to individuals | 6,917,737 |\n|---:|:-----|:-------------|:-------------------------------|:--------------|\n| 0 | 7.0 | | Jonako Investments Limited | 8,258,840 |\n| 1 | 8.0 | | Estate of late Okema A Raymond | 61,776,251 |\n| 2 | 9.0 | | Kal Ali B Paicho PDM SACCO | 7,051,875 |\n| 3 | 10.0 | | Payments to individuals | 1,680,741 |\n| 4 | | Total | | 7,267,328,557 |", "metadata": {"page": 24, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | No | Activity | Management explanations for unspent funds |\n|---:|-----:|:--------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 1 | Payment of wage, gratuity, pension gratuity arrears and development | \uf0b7 Delayed clearance to fill some key positions by the MoPS like position of District Planner. \uf0b7 Failure of the District to attract staff in key positions like District Engineer, District Health Officer, District Commercial Officer. \uf0b7 Some staff getting half pay due to disciplinary cases (Interdiction) \uf0b7 Some payments bounced due to wrong account details |\n| 1 | 2 | Transfers to Palaro Seed School (UGIFT) | \uf0b7 This was caused by the delay by the contractor to complete the work for certificate to be raised; however the work is near completion. |\n| 2 | 3 | Transfers to Sir Samuel Baker Secondary school (UGIFT) | \uf0b7 This was caused by the long process of hybrid procurement by the |\n| 3 | 4 | Transfers to Laminto P/s (non- wage) | \uf0b7 This was caused by delay of the contractor to complete the renovation; hence funds could not be paid for incomplete work. |\n| 4 | 5 | Transfers to Omel Apem HCII | \uf0b7 This was caused by the long process of hybrid procurement by the Ministry of Health. |", "metadata": {"page": 24, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | SN | Purpose | Budgeted amount | Released amount | Variance |\n|---:|:-----|:---------------------------------------------------------------|:------------------|:------------------|:-------------|\n| 0 | 1.0 | Revolving fund | 561,480,083 | 280,740,040 | 280,740,043 |\n| 1 | 2.0 | Administrative costs | 47,026,620 | 107,662,188 | (60,635,568) |\n| 2 | 3.0 | Gadgets and tools | 79,856,523 | 53,237,683 | 26,618,840 |\n| 3 | 4.0 | Staff costs | 128,923,919 | 128,923,919 | 0 |\n| 4 | 5.0 | Repurposed funds\u2013 Productions & Marketing Circular BPD86/150/1 | 0 | 56,000,000 | -56,000,0000 |\n| 5 | 6.0 | Additional Productions & Marketing PDM fund\u2013 | 0 | 4,635,568 | -4,635,568 |\n| 6 | | Total | 817,287,145 | 570,563,830 | 246,723,326 |", "metadata": {"page": 25, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | Description | Prodn Mkting dept & | Administrati ve costs | Gadgets and tools | Staff costs | Revolving fund | Remarks |\n|---:|:--------------|:----------------------|:------------------------|:--------------------|:--------------|:-----------------|:----------|\n| 0 | Release | 56,000,000 | 47,026,620 | 53,237,683 | 128,923,919 | 280,740,040 | |", "metadata": {"page": 25, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | Funds repurposed | (56,000,000 ) | 56,000,000 | (53,237,683) | 0 | 53,237,683 | - All funds for gadgets and tools were repurposed to revolving funds. - Repurposed funds from Prodn /Mrkting |\n|---:|:-------------------------|:----------------|:-------------|---------------:|:------------|:-------------|:---------------------------------------------------------------------------------------------------------------|\n| 0 | Additional PDM funds | 0.0 | 4,635,568 | 0 | 0 | 0 | Additional funding Administrative costs for |\n| 1 | Funds available to spend | | 107,662,188 | 0 | 128,923,919 | 333,977,723 | |", "metadata": {"page": 26, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | S/N | Description | Amounts(UGX) |\n|---:|:------|:------------------------------------------------------------------------------------------------|:---------------|\n| 0 | 1.0 | Mobilization and community sensitization & Monitoring and Supervision by DEC/ senior management | 47,026,620 |\n| 1 | | TOTAL | 47,026,620 |", "metadata": {"page": 26, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}, {"content": "| | Subject/Area | Issuing Authority | Guideline |\n|---:|:-----------------------------------|:-------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Transfer of funds to PDM SACCOs | PDM Secretariat | Funds should go direct to PDM SACCO accounts in commercial banks |\n| 1 | | PSST | Funds to be sent to entity General Fund Accounts |\n| 2 | Diversion/ re- allocation of funds | PSST | letter Referenced BPD86/150/01 and dated 20 th May 2022 stated that funds budgeted for under gadgets and tools should be repurposed to the Parish Revolving Fund |\n| 3 | | Public Finance Management Regulation | Regulation 16(1) of the PFMR. 2016 states that an Accounting Officer may request the Minister for approval to vary, within a vote, the amount of money allocated to the vote. |", "metadata": {"page": 27, "document_name": "Gulu DLG Report of Auditor General 2022", "headings": [], "type": "table"}}]