The World Bank                                          Plot 1, Lumumba Avenue
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT   Rwenzori House                    Tel:    (256-41) 4230 094
INTERNATIONAL DEVELOPMENT ASSOCIATION                   Kampala, Uganda                   Fax:    (256-41) 4230 092




            The Permanent Secretary
            Ministry of Energy and Mineral development
            Kampala.

            Introduction

            1.          We have reviewed the audit report on the project financial statements of
            the ESDP for MEMD, covering the CR. 4988 for the FY ended June 30, 2019. The
            financial statements were independently audited by Auditor General, and the audit
            report is dated November 20, 2019.

            Submission of Audit Report

            2.         The audited financial statements were submitted to the Bank on December
            31, 2019, which is within the submission deadline of December 31, 2019.

            Conduct of the Audit

            3.        The audit was conducted in accordance with International Standards on
            Auditing.

            Audit Opinion

            4.          The auditor issued an un qualified opinion on the financial statements.

            Management Letter

                 5.     A copy of the auditor’s Management Letter highlighting accounting and
                        internal control weaknesses identified during the audit was submitted to
                        the Bank. It contains the following key findings:
                 i)     Review of the power sector reforms in Uganda at a cost of US$
                        443,362.41; the audit identified the following gaps
                        •   the consultancy report did not provide an implementation plan and a
                            tracking mechanism for implementation of recommendations.
                        •   No evidence that report was shared with key stakeholders sector wide
                 ii)    Establishment of the power sector information Centre (PSIC) at a cost of
                        US$ 197,993.38;. the audit noted the following gaps in the deliverables:
                        •   The PSIC database had inadequate information pertaining to ESDP
                            thus limiting realization of key objective
                        •   Lack of procedures for information acquisition, verification, update
                            and retrieval
                        •   Absence of an approved work plan for the roll out of the system
                        •   Uncertainty of the future operations of the PSIC
Conclusion

iii)     The report is acceptable to the Bank.

iv)      I concur with the auditors’ opinion on the financial statements.

                                    Sincerely,


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