THEAUDITOR GENERAL nord Unes: +,25,6 - 41 - 733600 POLO AGW RAD Audio General: +256 - 41 -733604~ Sec PLO 2C, 7r0. Box 7083, FAX: +-:56 - 41 - 4345674 'jMPALA. Ernail info@oa~q.qcj.t4 Websii.e: wvjw.oag,go,ugW ViSOiON: "10 be an effc-ctive and efficient Supreme ALIdit tLition (SVAI) in prt ng effectve publo MISSioN: "To A udit and report to Parliament and thereby ma lcl on feci,, rontribution o inprovinq pubfic accountability and valu for Money Spent" I ANY CORRESPONDENCE ON DCG.151/374/02/2019 r 1S SUBJECT PLEASE QUOTE NO:............. 13tr December, 2019 The Rt. Hon. Speaker of Parliament Parliament of Uganda Kampala REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) FOR THE YEAR ENDED 30TH JUNE, 2019 In accordance wJth-Article 163.,(4) of the Constitution, I forward herewith audited financial statements o le Development Response to Displacement'impat Projec( RDgIPie y.ear ended idJie,Ž1. gethér with my report and opinien herëon. John F.S. Muwanga AUDITOR GENERAL Copy to: The Permanent Secretary/Secretary to the Treasury The Permanent Secretaiy, Office of the Prime Minister " The International Development Agency (IDA) Thru: The World Bank Country Office Kampala The Project Coordinator, Development Response to Displacement Impacts Project Member of the intemational Organisation of Supreme Audit institutions (INTOSA) Mem.ber of the Africa Organisation of Supme Audit itttions (AFROSAI LEO ~OFFICE OF THE AUDITOR GENERAL TELinON -4APOLLO KAGWA ROAD, General Lines: +256 -41 - 7336000 PLOT 2C, P.O. Box 7083, Auditor General: +256 - 41 - 73360041 Sec. gMAA FAX: +256 -41 - 4345674 TR LIC OF UGANDA Email: Info@oag.go.ug THE REPUBLIC OF GADA Websile: www.oag.go.ug VISION: "To be an effec6e and efficient Supreme Audit Institution (SAm) nPrOMOibng effective pualdvauetabi MISSION: "To Audit and report to Padiament and thereby make an effectiNe wntdbution to improving publid accountability and value for koney Spenr IN ANY CORRESPONDENCE ON THIS SUBJECT PLEASE QUOTE NO: . . cifI91374/01/19 DCWG0 R 1, D B AfN-.9 * WORLDBN CONFIDENTIAL 13t December, 2019 R E The Accountipg Officer Office of the Prime Minister Kampala MANAGEMENT LETTER 0" THE AUDIT OF DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACT PRJECT_(D 122UG FOR THE FINANCIAL YEAR ENDED 3OTH,NE 0:LI 1.0 INTRODUCTION During the course of my audit of the Financial Statements for the year ended 3P June 2019, there were unresolved matters that I need to bring to your attention. The matters have been ranked according to the level of significance. Those considered high have been incuded in the annual audit report to Parliament, in accordance with my reporting responsibilities. The objective of an audit is to obtain reasonable assurance whether the financial statements are free of material misstatements due to fraud or error and express an independent opinion on the financial statements prepared in all material respects, in accordance with Section 51 of the Public Finance Management Act, 2015, and the Financial Reporting Guide, 2018. The management letter precedes the Auditor General's report and includes all significant matters that remained unresolved arsing from the audit process after discussion vith Management and verification of all the information availed during the audit. This letter is not intended for further discussions/verifications but contains outstanding audit findings and my recommendations that management should implement for better stewardship and enhanced accountability. 2.0 SCO N OF RE5PONS1BM-TY The audit was conducted In accordance With the International Standards of Supreme Audit Institutions (ISSAIs). These standards require that the audit is planned and performed to obtain reasonable assurance that financial statements are presented in all 1 Member of Mhe InternationalI organdsationl of Supreme Audit Institutions (UNTOSAI) Member of dhe Affles Oroanisation of SuoremRe Audit Institutions ('AFROSAII material respects, in accordance with the applicable financial reporting framework; Section 51 of the Public Finance Management Act, 2015, and the Financial Reporting Guide, 2018. The audit included: Examination on a test basis of evidence supporting the amounts and disclosures in the financial statements; * Assessment of the accounting principles used and significant estimates made by Management; * Evaluation of the overall financial statements presentation; and * Examination, on a test basis, of evidence supporting compliance in all material respects with the relevant laws and regulations, which came to my attention and are applicable to financial matters. The matters mentioned in this letter.are therefore those that were identified through tests considered necessary for the purpose of the audit and it is possible that there might be other matters and/or weaknesses that were not identified. The financial statements, maintenance of effective control measures and compliance with laws and regulations are the responsibility of the Accounting Officer. My responsibility is to express an opinion on the financial statements. Below are the significant audit findings that remained outstanding together with the management responses and my recommendations thereof; 3.0 CATEGORISATION AND SUMMARY OF AUDIT FINDINGS 3.1 Categorisation of Findingi The matters have been ranked according to the level of significance as below:- Category Description 1 High Significance fHas a sIgnificantImatedal impac has a high likelihood of reoccurrence, and in the opinion of the Auditor General, it requires urgent remedial action. It is a matter of hIgh risk or high stakeholder interest. 2 Moderate Has a moderate Impact, has a likelihood of reoccurrence, and in Sign/icance the opinion of the Auditor General, It requires remedial action. It is a matter of medium risk or moderate stakeholder Interest. 3 Low Sgn/icance Has a low impact, has a remote likelihood of teoccurrence, and in the opinion of the Auditor General, may not require much attention, though its remediagon may add value to the entity. It is a matter of low isk or low stakeholder interest. 3.2 Summary of Findings No Title of Finding Significance Effect on the Report 4.0 Project Overview 5.1 Implementation Of the approved 2 b dget s11Under absorption of funds I-lhKe Audit Matter L~4.. m lmetatoriofthelanedactivities H-i hi Key Audit Maqter U r oaIo tffnne activities HH M te 5.2 Failure to utilise und h Ke Audit Matter 5.3 Prior Year Audit Recommendations Low Managemen t Lette 4.0 Project overview The Development Response to Displacement Impacts Project (DRDIP) is a community demand-driven project funded by the International Development Agency (IDA) of the World Bank with a focus on refugee host communities. The project is designed to contribute to addressing the needs of host communities in targeted districts of Arua, Yumbe, Koboko, Moyo, and Adjumani in west Nile, Lamwo in Acholi, Kiryandongo and Holma in Bunyoro, Isingiro, Kamwenge and Kyegegwa in the south western region of Uganda: The Project Objective is to improve access to basic social services, expand economic opportunities and enhance environmental management for communities hosting refugees in targeted areas. 4.1 Proiect vrofile IDA Loan InformatiOn IDA grant Iiformation Loan Number IDA 58210 rant Number IDA D4210 Loan Amount 50000,000 Loan Amount 150,000,000 Date of Loan 1 June 2017 Date of Loan 11 June 2019 Signature -Signature Sgat of Loan 2Date of Loan - 7 'October 2019 Effectiveness Effectiveness Project Completion 31 Dec 2021 Project Completion 31St December Date Date 2023 Bankers Bank of Li nda Bankers Bank oF U anda 4.2 Proiect allocation.b component IDA Loan IDA rant Amount Components Amount Component Amount CUSD (USD) Social Economic 30,000,000 Social Economic 70,000,000 Infrastructure Infrastructure Sustainable 8,500,000 gustainable Environmental 30,000,000 Environmental Management Management rm3,0,0 tloTotal 150,000,000 Total .so -- 3 4.3 Performance of the proiect as at 30t" June 2019 No Component Performance 1 Social Economic Services and Infrastructure A total of 187 community Infrastructure sub- p rofects 5.0 DETAILED FINDINGS 5.1 Implementation of the aporoved-budoet Section 45 of the Public Finance and Management Act, 2015, requires the Accounting Officer to control the regularity and proper, use of the money appropriated to the vote. According to Section 45 (3) of the same Act, the Accounting Officer shall enter into an annual performance contract with the Secretary to Treasury which shall bind the Accounting Officer to deliver on the activities in the work plan for the vote for the financial year. Work plans are based on outputs to be achieved for the financial year and during implementation effort is required to achieve the agreed objectives/targets for the entity within the available resources. Paragraph 49 of the budget execution circular for financial year 2018/2019 requires management to prepare budget performance reports that clearly indicate the actual performance against the planned outputs and performance for each quarter showing the quantity/quality and physical location of the reported outputs against expenditure. All perforinance reports should be based on the program budgeting system (PBS) pr'ograms and subprograms. It has been observed over the years that planned and budgeted for activities of a number of Government entities are not implemented, thereby affecting service delivery. In the overall office-wide planning, I assessed risks like the inadequate release of funds and failure to undertake budget monitoring and supervision that are likely to be the causes of failure to implement entity planned activities. The focus was put on the planned outputs of the entities that impact on the wellbeing of communities. Consequently, I developed procedures in order to address the performance of the budget of the entity: * Ascertaining the amount received by the entity and the source of the funding * Inquiring from management regarding off-budget financing received and ascertaining the basis for the off-budget financing, if any. * Comparing the approved budget against the actual receipts Comparing the planned vote function outputs against the actuals and determining the variances * Reviewing the utilization of these funds 4 ...ELE.HON.. OFFICE Or ' THE AUDITOR GENERAL 1General Lines: +256 - 41 - 7333000 APOLLO KAGWA ROAD Audilor General: -256 - 41 - 7336004 ' Sec. PLOT 2C, P.O. Box 7083, FAX: 4-26 - 41 - 4345674 KAMPALA. Email: infb@oaq.go.t1g h EULCOUADAKMA. Website: www.oag.go.ug TE REPUWLIC OF UGANDA VISION: "T be an effective and efficient Supreme Audit Institution (SAl) in promoting effective public accountability" MISSION: To Audit and report to Parliamenr and thereby make an effective contribution to improving public accountability and value foriMoney Spen" IN ANY CORRESPONDENCE ON DCG.151/374/02/2019 T"IS SUBJECT PLEASE QUOTE NO:.................... 13th December, 2019 The Rt. Hon. Speaker of Parliament Parliament of Uganda Kampala REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) FOR THE YEAR ENDED 30TH JUNE, 2019 In accordance with .Article .163.(4). of the. Constitution, I forward herewith.-auditedfinancial s m.ttments of Developnent Response to Displacemeht rmas oject(pDPyf6r the yeK' i . e1 g with my report and opirik, the on. John F.S. Muwanga . . * AUDITOR GENERAL Copy to: ... The Permanent Secretary/Secretary to the Treasury The Permanent Secretary, Office of the Prime Minister The International Development Agency (IDA) Thru: The World Bank Country Office Kamvala The Project Coordinator, Development Response to Displacement Impacts Project Member of the international Organisation of Supreme Audit institutions (INTOSAI) Member of the Africa Organisation of Supreme Audit Onstitutions (AFROSAI) The objective of DRDIP is to improve access to basic social services, expand economic opportunities, and enhance environmental management in the refugee-hosting districts. To achieve its objective, the project planned to implement and achieve a number of both recurrent and development deliverables under various outputs. A review of the DRDIP approved work plan, and budget revealed that the project had an approved budget of UGX.126,245,843,107, out of which UGX.117,974,040,274 was received. The table below the projects key deliverables during the period under review. A table showing Ice deliverables for the roect for the ear 2018e9 Sn Key deliverablesbudget UGX I Output 06: Refugees and host 114,500,080,000 90.6 communities livelihoods Improved -22 0,02 li Output: 75 Purchase of Motor Vehicles and 2,240,000,000 Other Transport Equ ment The project planned to achieve the above deliverables through the implementation of 9 activities with a budget of 126,245,843,107. I reviewed the implementation of all the outputs and below are my findings. Observation mmendAtiqn 5.1.1 Under absorption of funds Section 15 (1) of the Public Finance and Management Act 2015 states I advised " the that after approval of the annual budget by Parliament, the Secretary Accounting Officer to to Treasury shall Issue the annual cash nlow plan of Government, ensure that planned based on the procurement plans, work plans and recruitment plans activities are approved by Parliament. Section 15 (2) states that the annual cash Implemented on time flow plan issued under subsection (1) shall be the basis for release of to ensure that delays funds by the Accountant General to the Accounting Officers. Further to do not affect the this, section 15 (3) requires an Accounting Officer to commit the absorption of funds. budget of a vote, based on the annual cash flow plan Issued under this section. In the meantime the Implementation of Based on the work performed, I observed that: activities should be The project budgeted to receive UGX.126,245,843,107 out of expedited given that which UGX. 117,974,040,274 was received leaving the Initial challenges UGX.8,271,802,833 representing 93.4% release. faced have been UGX.,27,802833addressed. * Out of receipts of UGX.117,974,040,274 UGX.85,238,965,132 was spent resulting Into unspent balance of UGX.32,735,075,142 representing an absorption level of 72%. Refer to the table below; DRDIP APP EST RELEAS Varianc Expenditor Unspe (1S) SNS) C= (A- (D) (8-D) UGX UGX ( S) (BNS) UGX ((BNS) UGXS UG FY18/219 162 117.97 8.27 85. 2 32.73 Failure to absorb released funds may result in partial or non-| implementation of activities. The practice also negates the purpose of budgeting as funds availed cannot be absorbed. In response, management indicated that the unspent balance of UGX.32,735,626,605 relates to funding under the Livelihoods and Environmental Components of the DRDIP project. A detailed technical review on the model for the DRDIP Livelihood Support Program, specifically focusing on value chain-based livelihoods using both revolving fund and grants based approaches was jointly undertaken with the World Bank during the course of the financial year under review. This improved approach called for greater investment in time and preparatory process in an effort to build capacity of the project beneficiaries before they were in position to access and fully utilize the project funds. 5.1.2 Implementation of Wanned outputs I noted that all planned outputs were quantified in the project annual I advised the work plans. However, further analysis of the implementation of Accounting Officer to planned outputs revealed that some of the activities remained partially implement activities implemented. in a timely manner to ensure that all The project planned to implement nine (9) activities for the financial activities in the work year 2018/19. I assessed all the nine (9) outputs/activities and noted plans are fully the following. Details attached Appendix I implemented. Table showing the level of implementation S/n Description Reporting Outputs Performance in /b 1 ALL the planned out- Fully 7 78% puts have been Implemented achieved or realised (100/0). 2 A portion of some of Partially 2 22% the planned outputs Implemented were partially achieved or realised (less than 100%). Total 9 100%b Management indicated that the activities not implemented were in relation to the Livelihood and Environmental Components as well as delay in procurement of motorcycles owing to contract termination on the basis of delayed delivery timelines. Procurement of the 23 Motorcycles was completed and registration of number plates done and handover processes are underway. 6 5.2 Failure to utilise subproject grants - UGX. 1,623,900,000 Section 5.2 of DRDIP Operational Manual requires that subsequent disbursements to the subprojects will be based on submission of progress reports and fulfilment of fiduciary requirements (at least 80% accountability for the previous disbursement to the subproject). The same fiduciary requirement of 80% accountability shall apply for the releases of operations funds. I noted that contrary to this, disbursement to different subgroups amounting to UGX.1,623,900,000 remained unutilised and on the bank accounts for the different subgroups at the close of the financial year. Details provided in Appendix II. Failure to utilise funds negates the purpose of disbursing the funds to the subgroups. It also negatively affects the impact of the project and the achievement of its objectives. In response, management indicated that the outstanding subproject grants at the end of FY 2018/19 were in relation to funding under the DRDIP infrastructure component. Procurement process involving bidding, evaluation, and site clearing typically account for 3-4 months of duration, before actual project implementation, thus affecting the speed of accountability. I advised management to ensure that procurements for these sub-projects are undertaken in a timely manner to avoid unnecessary delays. Management should also engage the districts where funds have not yet been utilised to ensure that all disbursed funds are fully utilised. . 5.3 Failure to utilise subproject grants - UGX. 1,623,900,000 Section 5.2 of DRDIP Operational Manual requires that subsequent disbursements to the subprojects will be based on submission of progress reports and fulfilment of fiduciary requirements (at least 80% accountability for the previous disbursement to the subproject). The same fiduciary requirement of 80% accountability shall apply for the releases of operations funds. I noted that contrary to this, disbursement to different subgroups amounting to UGX.1,623,900,000 remained unutilised and on the bank accounts for the different subgroups at the close of the financial year. Details provided in Appendix II. Failure to utilise funds negates the purpose of disbursing the funds to the subgroups. It also negatively affects the impact of the project and the achievement of its objectives. In response, management indicated that the outstanding subproject grants at the end-of FY 2018/19 were in relation to funding under the DRDIP infrastructure component. Procurement process involving bidding, evaluation, and site clearing typically account for 3-4 months of duration, before actual project implementation, thus affecting the speed of accountability. I advised management to ensure that procurements for these sub-projects are undertaken in a timely manner to avoid unnecessary delays. Management should also 7 engage the districts where funds have not yet been utilised to ensure that all disbursed funds are fully utilised. 5.4 Review of urior year audit matters I reviewed the implementation of recommendations by the management on issues raised in the previous audit, and I noted the following. Sn Observation Recommendation Status 5.4.1 ImvIementation of Budoet I advised the Under absorption and atproved by Parliament Accounting Officer to faIlure to fully expedite the process implement planned I observed that out of the budgeted of implementing the out-puts was still revenue of UGX.57,523,400,000, the remaining project noted in the current entity received UGX.57,523,400,000 activities so as to year of audit representing 100% funding of the meet the project entity budget. -The project advanced objectives within the funds amounting to planned time. UGX.14,803,036,838 for district operations to undertake official activities. However, by the end of the financial year, only UGX.2,587,946,125 had been utilised by the districts representing 4% absorption level. I noted that planned activities such as procurement of motor vehicles, motorcycles, laptops (Software and back up), desktop computers, installing a module for DRDIP In the NUSAF 3 MIS and the national budgetary model. Further, district and national level training, recruitment of 5 key staffs and induction of key new staff were partially Implemented, which Impacted on the achievement of the DRDIP 5.4.2 Delayed Implementation of sub- I advised the I still noted cases of proiects Accounting Officer to delayed expedite the Implementation of The project approved a budget of implementation of sub-projects which has UGX.29, 497,075,741 for 83 subproject activities if even affected subprojects In eleven (11) refugee- the project has to utilisation/absorption hosting districts. However, only achieve the Intended of funds. UGX.13,706,056,293 was disbursed to objectives. 38 subprojects during the year under review. It was further noted that most of the subprojects had not commenced pending Solicitor General's approval of sub-projects' contracts for goods and services while others were still under the rocurement rocess. 8 5.4.3 Advance to Personal Accounts The Accounting This was not observed Officer was advised in the current audit I noted that UGX.629,311,633 was to appoint imprest year advanced to project staffs personal holders before accounts to undertake the activities of undertaking future the project. Such a practice of payments in order to depositing huge funds on personal avoid risking loss of accounts of non imprest holders project funds. exposes the project funds to risk of loss of funds since the project does not have any control over such funds deposited on personal accounts. ADreciation Finally, I express my sincere appreciation to the Project staff for the co-operation and assistance re -eved to my staff during the course of the audit. John F.S. 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N р+ s v0 '• N М О М . � о о Оо О � О1OО N .о Q О N (`�'1 О ро О О � Q р р о nj О �О м v � �^ ы r �' и �^ т �,°�„ 3- и а _�сq � о�°^ _L т о. °..' � ьN. � и Тп >ирд°о°J рл.j�о ов'Ер� Рiiштш i��ii$'�J .°�.а°С��¢ n. � Е�'i и с �а n Е •- и n с 7у1 �О О dNar7 �ь' QC O1�c.wS>и01-оши en ixil yn trUlisedsub-proiect funds District ted for Disbursed Accountedfor Balance 000,000 coun '140,000 ADJUMANI 6,469,140,000 6,380,140,000 69,000,000 ARUA 6,983,000,000 6,723,000,000 260,000,000 0000 50.000.00() HOIMA 3,264,500,000 3,214,500,000 50,000,000 ISINGIRO 9,530,947,434 9,431,047,434 99,900,000 KAMWENGE 11,346,160,000 11,096,100,000. 250,000,000 KIKUUBE 400,000,000 400 000,000 KIRYANDONGO 7,355,240,123 7,225,2240,123 00.000 KOSOKO 6,510,000,000 6,480,000,000 30,0000,000o KYEGEGWA 7,881,500,000 7,751,500,000 130,000,000 LAMWO 9,174,5 000 9,085,500,000 1- 89,000,000 MOYO 9,883,000,000 9,767,000,000 1 116,000,000 10,883,000,000 10-503,000,000 380,000,00 YUMBE 0" Grand Total 89,680,927,557 88,05L,027,55T71,623,900 Odo 14 THE REPUBLIC OF UGANDA OFFICE OF TH E PRIME MINISTER REPORT OF THFE AUDITTOR GENERAL ON THE FINANCIAL STATEMENTS OF DEVELOPMENT RESPONrSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) FOR THE YEAR ENDED 3OT" J UNE 20:19 OFF-ICE,OF THJE AUDITOR GENERAL UGANDA TABLE OF CONTENTS LIST OF ACRONYMS2.................................................................... REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) FOR THE YEAR ENDED 30M JUNE, 2019 ................3 O pinion . ...............................................................*.*...--.-.*.*.. .................................................. 3 Basis of Opinion .......................................ion.3--..--*..-*.-. -.*****........................................................3 Project over viw ...................e-w.---****-******* * " " " "" " " " " " ' " " Project p r ie ........................................pl....ro. -" Project allocation by Component..........................-. ---.*.. ******..... ***............................................ .4 Performance of the project as at 30th June 2019....................------.-.***.*.**.*************** .*** .*.*.* ... Key Audit Matters..............................e..rs.4....................*.*****............................" 1.0 Implementation of the approved budget.......................-- ..-- .-- ....................................4 Other Matters.........................r..s.......... .. ...*.***********...***.*****.***..............."*"*"" .." ..-7. 2.0 Failure to utilise subproject grants - UGX. 1,623,900000.....................................................7 Responsibilities of the Accounting Officer for the Financial Statements .............................................7 Auditor's Responsibilities for the Audit of the Financial Statementsta.......................................---8 Other Reporting Responsibilities...........................-....-.. ----... *. ---.. --..-... **......"..."...".. Report on the audit of Compliance With Legislation....................*.---..---.---..-.************** .--- .....-.. REPORT OF THE AUDITOR GENERAL ON THE SPECIAL ACCOUNT OPERATIONS OF DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT FOR THE YEAR ENDED 30m JUNE, 2019..........10 LI 1- LIST OF ACRONYMS Acronym Meaning DRIP Development Response to Displacement Impacts Project GoU Government of Uganda IDA International Development Agency ISA International Standards on Auditing ISSAIs International Standards of Supreme Audit Institutions IESBA International Ethics Standards Board for Accountants MoFPED Ministry of Finance, Planning and Economic Development UGX Uganda Shillings . US $ United States Dollar TAT Treasury Accounting Instructions Ii2 It 2 REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP. FOR THE YEAR ENDED 30T" JUNE, 2019 lHE RT. HON. SPEAKCER OF PARLIAMENT Ppjinlion I have audited the accompanying financial statements of the Development Response to Displacement Impacts Project (DRDIP) for the year ended 30th June 2019. The financial statements set out on pages 10 to 20 comprise of; Statement of receipts and payments, Statement of comparative budget and actual performance, Statement of DRDIP disbursements, Statement of DRDIP loan balances and 'Notes to the financial statements including a summary of accounting policies used. In my opinion, the project financial statements present fairly in all material respects the financial performance of the Development Response to Displacement Impacts Project (DRDIP) for the year ended 30th June 2019 and the receipts and payments for the period then ended in accordance with the IDA guidelines and the accounting policies stated on pages 7 of the financial statements. Basis of Opinion I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further Oescribed in the Auditor's Responsibilities for the Audit of the Financial Statement's section of my report. I am independent of the project in accordance with the Constitution of the Republic of Uganda, 1995 (as amended), the National Audit Act, 2008, the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B) (IESBA Code), the International Organization of Supreme Audit Institutions (INTOSAI) Code of Ethics and other independence requirements applicable to performing audits of Financial Statements in Uganda. I have fulfilled my other ethical responsibilities in accordance with the IESBA Code, and in accordance with other ethical requirements applicable to performing audits in Uganda. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Project overview The Development Response to Displacement Impacts Project (DRDIP) is a community demand-driven project funded by the International Development Agency (IDA) of the World Bank with a focus on refugee host communities. The project is designed to contribute to addressing the needs of host communities in targeted districts of Arua, Yumbe, Koboko, Moyo, and Adjumani in west Nile, Lamwo in Acholi, Kiryandongo and Hoima in Bunyoro, Isingiro, Kamwenge and Kyegegwa in the southwestern region of Uganda. The Project Development Objective is to improve access to basic social services, expand economic opportunities and enhance environmental management for communities hosting refugees in targeted areas. 3 . Project Profile IDA Loan Information IDA grant Information Loan Number IDA 58210 Grant Number IDA D4210 Loan Amount 50,000,000 Loan Amount 150,000,000 Date of Loan Signature 15th June 2017 Date of Loan 11th June 2019 Signature Date of Loan 29th June 2017 Date of Loan 7th October 2019 Effectiveness Effectiveness Project Completion Date 31st Dec 2021 Project Completion 31st December Date 2023 Bankers Bank of Bankers Bank of Uganda Uganda Project allocation by Component IDA Loan IDA grant Components Amount Component Amount (USD) (USD) Social Economic 30,000,000 Social Economic 70,000,000 Infrastructure Infrastructure Sustainable Environmental 8,500,000 Sustainable Environmental 30,000,000 Management Management Livelihoods Program 7,750,000 Livelihoods Program 30,000,000 Proect Administration 3,750,000 Social Accountability 2,000,000 Disaster Risk Management 4,500,000 Project Administration 13,500,000 Total 50,000,000 Total 150,000,000 Performance of the project as at 30th June 2019 No Component Performance 1 Social Economic Services and A total of 187 community infrastructure sub- Infrastructure projects Key Audit Matters Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the financial statements of the current period. These matters were addressed in the context of my audit of the financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters. I have determined the matters described below to be key audit matters communicated in my report. 1.0 Implementation of the approved budaet Section 45 of the Public Finance and Management Act, 2015, requires the Accounting Officer to control the regularity and proper use of the money appropriated to the vote. According to Section 45 (3) of the same Act, the Accounting Officer shall enter into an annual performance contract with the Secretary to Treasury which shall bind the Accounting Officer to deliver on the activities in the work plan for the vote for the financial year. Work plans are based on outputs to be achieved for the financial year and during implementation effort is required to achieve the agreed objectives/targets for the entity within the available resources. 4 Paragraph 49 of the budget execution circular for financial year 2018/2019 requires management to prepare budget performance reports that clearly indicate the actual performance against the planned outputs and performance for each quarter showing the quantity/quality and physical location of the reported outputs against expenditure. All performance reports should be based on the program budgeting system (PBS) programs and subprograms. It has been observed over the years that planned and budgeted for activities of a number of Government entities are not implemented thereby affecting service delivery. In the overall office-wide planning, I assessed risks like the inadequate release of funds and failure to undertake budget monitoring and supervision that are likely to be the causes of failure to implement entity planned activities. The focus was put on the planned outputs of the entities which greatly impact on the wellbeing of communities. Consequently, I developed procedures in order to address the performance of the budget of the entity: * Ascertaining the amount received by the entity and the source of the funding * Inquiring from management regarding off-budget financing received and ascertaining the basis for the off-budget financing, if any. * Comparing the approved budget against the actual receipts * Comparing the planned vote function outputs against the actuals and determining the variances * Reviewing the utilization of these funds Based on the work done, I noted that the objective of DRDIP is to improve access to basic social services, expand economic opportunities, and enhance environmental management in the refugee-hosting districts. To achieve its objective, the entity planned to implement and achieve a number of both recurrent and development deliverables under various outputs. A review of the DRDIP approved work plan, and budget revealed that the entity had an approved budget of UGX.126,245,843,107, out of which UGX.117,974,040,274 was received. The table below shows the projects key deliverables during the period under review A table showing key deliverables for the roject for the year 2018/19 Sn Key deliverables Amount UGX Cumulative 0/0 of approved budget UGX. i. Output 06: Refugees and host communities 114,500,080,000 90.6 livelihoods improved ii. Output: 75 Purchase of Motor Vehicles and 2,240,000,000 92.2 Other Transport Equipment The project planned to achieve the above deliverables through the implementation of 9 activities with a budget of 126,245,843,107. I reviewed the implementation of all the outputs and below are my findings. Observation Recommendation 1.1 Under absorption of funds Section 15 (1) of the Public Finance and Management Act 2015 states I advised the that after approval of the annual budget by Parliament, the Secretary Accounting Officer to Treasury shall issue the annual cash flow plan of Government, to ensure that the based on the procurement plans, work plans and recruitment plans implementation of 5 approved by Parliament. Section 15 (2) states that the annual cash planned activities in flow plan issued under subsection (1) shall be the basis for release of done in a timely funds by the Accountant General to the Accounting Officers. Further to manner to ensure this, section 15 (3) requires an Accounting Officer to commit the that delays do not budget of a vote, based on the annual cash flow plan issued under this affect the section. absorption of funds. In the Based on the work performed, I observed that: meantime the * The project budgeted to receive UGX.126,245,843,107 out of which implementation of UGX.117,974,040,274 released representing 93.4% performance. activities should be expedited given * Out of receipts of UGX. 117,974,040,274, UGX.85,238,965,132 was that the initial spent resulting into unspent. -balance of UGX.32,735,075,142 challenges faced by representing an absorption level of 72%. Refer to the table below; the project have been addressed. DRDIP APP EST RELEAS Variance Expenditure Unspent (A) (BNS) E (B) C= (A- (D) (B-D) UGX (ONS) B) (BNS) UGX ((BNS) UGX -(8NS) UGX I I UGX I FY18/2019 126.24 117.97 8.27 85.2 32.73 Failure to absorb funds that have been released may result in partial or non-implementation of activities. The practice also negates the purpose of budgeting due to under absorption. In response, management indicated that the unspent balance of UGX.32,735,626,605 relates to funding under the Livelihoods and Environmental Components of the DRDIP project. A detailed technical review on the model for the DRDIP Livelihood Support Program required greater investment In time and preparatory process to build the capacity of the project beneficiaries before funds were passed on. The restructuring of the DRDIP project from 4 to 11 districts further interrupted project delivery timelines. 1.2 Implementation of planned outouts I noted that all planned out-puts were quantified in the project annual I advised the work plans. An analysis of the implementation of these out-puts Accounting Officer revealed that some of the activities remained partially implemented. to implement all planned outputs/ The project planned to Implement nine (9) activities for the financial activities in their year 2018/19. I assessed all the nine (9) outputs/activities and noted approved work plan the following. Details attached Appendix I. in a timely manner Table showing the level of implementation S/n Description Reporting Outputs Performance in %/b 1 ALL the planned out-puts Fully 7 78% have been achieved or Implemented realized (100%/). 2 A portion of some of the partially 2 22% planned outputs were Implemented partially achieved or realised (less than 100%). Total 9 100%/0 6 Management indicated that the activities not fully implemented were in relation to the Livelihood and Environmental Components as well as delay in procurement of motorcycles owing to contract termination on the basis of delayed delivery timelines. Procurement of the 23 Motorcycles was completed and the registration of number plates done and handover rocesses are underwa Other Matters I consider it necessary to communicate the following matters other than those presented or disclosed in the financial statements: 2.0 Failure to utilise subroject orants - UGX. 1,623,900,000 Section 5.2 of DRDIP Operational Manual requires that subsequent disbursements to the subprojects will be based on submission of progress reports and fulfilment of fiduciary requirements (at least 80% accountability for the previous disbursement to the subproject). The same fiduciary requirement of 80% accountability shall apply for the releases of operations funds. I noted that contrary to this, disbursement to different subgroups amounting to UGX.1,623,900,000 remained unutilised and on the bank accounts for the different subgroups at the close of the financial year. Failure to utilise funds negates the purpose of disbursing the funds to the subgroups. It also negatively affects the impact of the* project and the achievement of its objectives. I In response, management indicated that the outstanding subproject grants at the end of FY 2018/19 were in relation to funding under the DRDIP infrastructure component. Procurement process involving bidding, evaluation, and site clearing typically account for 3-4 months of duration, before actual project implementation, thus affecting the speed of accountability. I advised management to ensure that all procurements for the sub-projects are undertaken early enough to avoid unnecessary delays. Management should also engage the districts where funds have not yet been utilised to ensure that all disbursed funds are fully utilised. Responsibilities of the Accounting Officer for the Financial Statements Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 of the Public Finance Management Act, 2015, the Accounting Officer is accountable to Parliament for the funds and resources of the Development Responses To Displacement Impacts Project (DRDIP) The Accounting Officer is also responsible for the preparation of financial statements in accordance with the requirements of the Public Finance Management Act 2015, and the Financial Reporting Guide, 2018, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. In preparing the financial statements, the Accounting Officer is responsible for assessing the Project's ability to continue delivering its mandate, disclosing, as applicable, matters related to affecting the delivery of the mandate of the Development Response to Displacement Impacts 7 Project, and using the Financial Reporting Guide 2018 unless the Accounting Officer has a realistic alternative to the contrary. The Accounting Officer is responsible for overseeing the Project's financial reporting process. Audit _or's Iesoonsibilities for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAls will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are 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. As part of an audit in accordance with ISSAls, I exercise professional judgment and maintain professional skepticism throughout the audit. I also: Identify and assess the risks of material rmisstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that. is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Project's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the project's ability to deliver its mandate. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor's report. However, future events or conditions may cause the Development Response to Displacement Impacts Project to fail to deliver its mandate. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. I communicate with the Accounting Officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. I also provide the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding Independence, and to communicate with him/her all relationships and other matters that may reasonably be thought to bear on my Independence, and where applicable, related safeguards. From the matters communicated with the Accounting Officer, I determine those matters that were of most significance in the audit of the financial statements of the current period and are, therefore, the key audit matters. I describe these matters in my auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare 8 circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Other RPnnrtin" Resp-onsibilties In accordance with sections 19(1) of the National Audit Act, 2008, 1 report to you, based on my work described on the audit of Financial Statements, that; 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. eS.or.ton_;he audit of Comoliance With Legislation There were no aterial non-compliance findings that came to my notice during the audit. John F.S. Muwanga AUDITOR GENERAL KAMPALA 13t December, 2019 9 rOR GENERAL ON THE SPECIAL ACCOUNT OPERATIONS OF DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT FOR THE YEAR ENDED 30H JUNE, 2019 on inon I have audited the special account statement of Development Response to Displacement Impacts Project (DRDIP) for the year ended 30h June 2019 which is set out on page 4 of the financial statements. In my opinion, Project Management complied in all material respects with IDA rules and procedures and that the Special Account' Statement for the Development Response to Displacement Impacts Project (DRDIP) for the year ended 30t June 2019 presents fairly in all material respects the account transactioni and the closing balance as at 30 June 2019. Manaiemnt Rsposiblityforthe pecal ccout Sateent Pr ject management is responsible for preparQtion of the special account statement and its fair presentation in accordance with the requirements of the Government of Uganda regulations and IDA guidelines. Management is also responsible for designing and implementing internal controls relevant to the preparation of the special account statement that is free from material misrepresentation, whether due to fraud or error and selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. Auditor's Responsibility My responsibility is to express an opinion on the Special Account Statement based on my audit. I conducted the audit in accordance with International Standards on Auditing and the IDA guidelines on auditing. Those standards and guidelines require that I plan and perform the audit to obtain reasonable assurance about whether the Special Account statement is free from material missta ments. I believe that the audit provides a reasonable basis for my opinion. John F. S. 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BOX 341, KAMPALA, UGANDA TELEPHONES: General Line 0417 770500, Web: 16vvLfw.opm.go.kjg, E-mail: ps@oprn.go.ug August 31, 2019 The Auditor General Office of the Auditor General Kampala, Uganda SUBMISSION OF FINAL ACCOUNTS FOR DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) FOR THE FINANCIAL YEAR 2018/19 This is to submit Final Accounts for Development Response to Displacement Impacts Project (DRDIP) for the financial year. ended 30thJune 2019 Please acknowledge receipt Joel Wanjala ACCOUNTING OFFICER CC: Accountant General - MOFPED The Republic of Uganda OFFICE OF THE PRIME MINISTER DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACT PROJECT (DRDIP) FINAL ACCOUNTS FOR FINANCIAL YEAR 2018/2019 TABLE OF CONTENTS Pg 1. Table of Acronyms i 2. Statement of Management Responsibilities it 3. Annual Progress Report iii 4. Statement of Financial Performance 1 5. Statement of Financial Position 2 6. Translation of Cashbook Closing balances 3 7. IDA Designated Account Activity Statement 4 8. Notes to the Accounts i. Significant Accounting Policies (Note 1) 5-10 ii. List of IDA Receipts 11 9. Bank Reconciliation Statements i. DRDIP Designated Account(IDA) 13 ii. DRDIP Implementation Support Account 14 iii. DRDIP District Support Account 15 1O.Trial Balance 11. Bank Statements DKDIP Final Accounts FY 2018/19 TABLE OF ACRONYMS BOU - Bank of Uganda CDD - Community Demand Driven Model CPC - Community Procurement Committee CPMC - Community Project management Committee CWC Community Watershed Committe(.- DEC - District Executive Committee DRF - Disaster Risk Financing DTPC - District Technical Planning Committee EPRA - Extended Participatory Rural Appraisal GOU - Government of Uganda IHISP - Improved Household Income Support Programme IDA - International Development Agency of World Bank IG Inspectorate of Government JSDF Japan Social Development Fund LIPW Labour Intensive Public Works LIS - Livelihood Investment Support M&E - Monitoring and Evaluation MGLSD - Ministry of Gender, Labour and Sodia1 Development MIS - Management information Systenis DRDIP - Development Response to Displacement Imp acs 5 ject OPM - Office of the Prime Minister PIS - Project Implementation Support PRDP - Peace, Recovery and Development Plan SAC - Social Accountability Committee SEC - Sub county Executive Comnttee SHS - Shillings SLP - Sustainable Livelihood Pilot SNM - Social Net Mechanism STPC - Sub county Technical Planning Committee STAAC - Strengthening Transparency, Accountability & Anticorruption TOT - Training of Trainers TST - Technical Support Team UGX - Uganda Shillings USD - United States Dollars WB - World Bank DRDIP Final Accounts FY 2018/19 The Republic of Uganda STATEMENT OF MANAGEMENT RESPONSIBILITIES Office of the Prime Minister is required to prepare financial statements which present fairly, in all material respects, Development Response to Displacement Impacts Project's receipts and payments incurred during the financial year 1St July 2018 to 30t June 2019. In preparing the financial statements, management is required to: * Select suitable accounting policies and then apply them consistently; * Make judgments and estimates that are reasonable and prudent, and; * State whether applicable accounting standards have been followed. Management is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time, the financial position of Development Response to Displacement Impacts Project, and to enable them ensure that the financial statements comply with the Donor's reporting guidelines. They are also responsible for safeguarding the assets of the Project, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Signed on behalf of Office of the Prime Minister (Development Response to Displacement Impacts Project). vy,K Head of Accounts Vir6dor DRDIP/NUSAF3 Accounti , g Officer DRDIP Final Accounts FY 2018/19 DRDIP ANNUAL PROGRESS REPORT July 01, 2018 - June 30, 2019 1.0 Introduction Development Response to Displacement Impacts Project (DRDIP) is Community Demand Driven (CDD) Project funded with credit of US $ 50 million from the International Development Agency (IDA) of the World Bank (WB) with focus on refugee host communities. The Project seeks to strengthen the government institutions and systems in these hitherto underserved areas and build synergies in related fields. The project will specifically: a) Support infrastructure development (roads, schools, health centers and others) among host communities; b) Support environmental restoration and access to alternative sources of energy, and; c) Support livelihood projects among host communities through income generating activities. The Project Development Objective (PDO) is "to improve access to basic social services, expand economic opportunities, and enhance environmental management for communities hosting refugees in the targeted areas." The project was designed in Uganda in an attempt to contribute to addressing the needs of host communities in targeted districts of Arua, Yumbe, Koboko, Moyo and Adjumani in West Nile sub-region; Lamwo in Acholi sub region; DRDIP Final Accounts FY 2018/19 Kiryandongo and Hoima in Bunyoro sub-region and Isingiro, Kamwenge and Kyegegwa in South-Western region of Uganda. 2.0 Project Components The project seeks to address the social, economic, and environmental impacts of refugee presence in the host communities through interlinked technical and investment components. There are four major project components implemented in an integrated and sequenced fashion, focusing on mobilization and capacity building for communities and local governments, and through an implementation process that is responsive to community priorities. DRDIP operation is to be implemented through four components namely: 2.1) Social Economic Services and Infrastructure (SESI) - USD 27m The Social Economic Services and Infrastructure Component is aimed at improving access to basic social services, economic infrastructure and improved service delivery capacity of local authorities at the target national and local levels with guidance from the Local Government to identify and prioritize specific projects to be funded. These are financed through community and strategic investments. The component has two sub-components, namely; a) Community Investment Fund b) Capacity Building for Local Planning and Decentralized Service Delivery As at 30th June 2019, 187 Community Infrastructure subprojects were funded to the tune of UGX 89,680,927,557 DRDIP FinalAccoins FY2018/19 iv 2.2) Sustainable Environmental Management (SEM) - USD 11m The Sustainable Environmental management component supports the government's aim to invest in integrated natural resources management including access to alternative energy source and also supports management of natural resources for current and future generations. The Component has two sub-components, namely: a) Integrated Natural Resources Management b) Access to Energy 2.3) Economic empowerment through Livelihoods program - USD 7m The objective of the livelihoods sub-component is to improve livelihoods and increase incomes and resilience of refugee hosting communities through improved productivity of traditional and non-traditional livelihood interventions. The project aims to boost income generating activities by engaging communities in alternative livelihood projects for example value addition, fish farming, etc. The Livelihood Program has two sub-components: 1) Support to Traditional and Non-Traditional Livelihoods 2) Capacity Building of community institutions for Livelihoods 2.4) Project Management, Monitoring and Evaluation (USD 5m) Project Management will support the operational expenditures related to management and the monitoring and evaluation of the project. Its support will strengthen the planning and coordination of activities in the project, as well as the monitoring of their implementation both at central and local government levels using a tailored Management Information System (MIS) being developed. DRDIP FinalAccoints FY2018/19 V OFFICE OF THE PRIME MINISTER DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) IDA CREDIT No. 5821 STATEMENT OF FINANCIAL PERFORMANCE For the Financial Year ended 30 June 2019 YTD-Actual JUN - 19 OPERATING REVENU Note H ) Advance disbursement from previous financial year 38,471,091,533 Exchange Rates 1 0 Taxes 2 0 External Grants Received 3 79,502,948,741 Transfers Received From the Consolidated Fund 4 0 Transfers Received From the Contingency Fund 5 0 Transfers received from other Government Unit 6 0 Non-Tax Revenue 7 0 Total Operating Revenue .4 17,974,040,274 OPERATING EXPENSES Employee Costs 8 1,386.246,620 Goods and Services Consumed 9 ,500474,36 Consumption of Property,Plant and Equip 10 237,060,839 Interest Expense 11 0 Subsidies 12 0 Transfers to other Organisations 13 80,115,174,307 Social Benefits 14 0 Other Operating expenses 15 0 Total Operating Exprci,es 85,238,965,132 Excess of Revenue over Expenditure from Operations 32,735,075,142 Foreign Exchange loss (gain) 16 551,463 Finance Costs 17 0 Transfers to Treasury 18 0 Excess of Revenue over Expenditure for the year 32,735,626,605 Head of P Accounts1 "j u 0,ier1 OFFICE OF THE PRIME MINISTER DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) IDA CREDIT No. 5821 STATEMENT OF FINANCIAL POSITION For the Financial Year ended 30 June 2019 YTD-Actual JUN - 19 (SHS) ASSETS Note Cash and Cash Equivalents 32,735,626,605 Receivables 0 Inventories 0 Investments 0 Non Produced Assets 0 Total Assets 32,735,626,605 LIABILITIES Borrowings (Interest Bearing Liabilities) 0 Payables 0 Pension Liabilities 0 Total Liabilities 0 Assets Less Liabilities (Net Worth) 32,735,626,605 Represented by: Revenue Reserves 32,735,626,605 Capital Reserves (Accumulated Fund) - Closing Networth 32,735,626,605 Head of Accounts Dir&dr DRkIP/NUSAF3 Accounting icer Page 2 Office of the Prime Minister DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) Schedule showing Translation of Cashbook Account Closing Balances For the quarter ended 30th June 2019 Closing Cash Balances Currency Uganda Shillings United States Dollars (UGX) (USD) DRDIP IDA Designated Account USD 29,562,768,502 8,121,196 DRDIP inplementation Support Account UGX 2,849,849,807 731,768 DRDIP District Support Account IJGX 323,008,296 82,940 DRDIP SUMMIT Account USD - - Total Closing Cash Balances 32,735,626,605 8,935,904 Head of Accounts Director i DiP/NUSAF3 Accounting ",fficer Page 3 7.0 IDA Designated Account (DA) Activity Statement For the Reporting Period Apr - June. 2019 Project Name: Development Response to Displacement Impacts Project (DRDIP) IDA Loan No: 5821 Deposit Bank: Bank of Uganda, Kampala. A/C No: 000030088400010 Currency of DA: US dollars PART I In USD In USD 1. Cumulative Advances to end of current reporting period 35,000,000 2. Cumulative Expenditures to end of last reporting period 4,994,544 3. Outstanding Advance to be accounted (line 1 minus line 2) 30,005,456 PART II 4. Opening DA balance at beginning of reporting period 23,624,732 S. Add/subtract: Cumulative adjustments (if any) 6,380,724.08 6. Advances from World Bank during reporting period 7. Add lines 5 and 6 6,380,724 8. Outstanding advances to be accounted for (add line 4 and line 7) 30,005,456 9. Closing DA balance at end of current reporting period 8,967,194 10. Add/subtract: Cumulative adjustments (if any) 17,033,201.15 11. Expenditures for current reporting period 4,005,060.92 12. Add line 10 and line 11 21,038,262 13. Add line 9 and line 12 30,005,456 14. Difference (if any) (line 8 minus line 13) (0) PART III 15. Total forecasted amount to be paid by World Bank 23,967,195 16. Less: Closing DA balance after adjusments 8,967,194.12 17. Direct payments/SC payments 18. Add lines 16 and 17 8,967,194 19. Cash requirement from World Bank for next two reporting periods (line 15 minus line 18) 15,000,000 NB: (1) Line 5: Cummulative adjustment is made of; - Oustanding District Operational funds advances as at 31st Mar 2019 36,265.03 - Oustanding Staff advance as at 31st Mar 2019 15,391.57 - Oustanding Sub project advances as at 31st Mar 2019 6,083,395.69 - Oustanding MGLSD Advances as at 31st Mar 2019 245,671.80 - TOTAL 6,380,724 (2) Line 10: Cummulative adjusment is the closing amount of oustanding staff advances at the end of the Quarter is detailed as follows: - Oustanding District Operational funds advances as at 30th June 2019 21,403 - Oustanding Staff advance as at 30th June 2019 74,128 - Oustanding Sub project advances as at 30th June 2019 16,808,161 - Oustanding MGLSD Advances as at 30th June 2019 129,509 - TOTAL 17,033,201 Head of Accounts DirectorD 1P/NUSAF3 ccounting Officer Page 4 OFFICE OF THE PRIME MINISTER Development Response to Displacement Impacts Project (DRDIP) IDA CREDIT No. 5821 L For the Financial Year ended 30 June 2019 Notes to the Financial Statements L Accounting Policies 'he principal accounting policies adopted in the preparation of these financial statements are Lset out below: 1 Reporting Currency The financial statements are presented in Uganda shillings 2 Income and Expenditure Income is recognized when received and expenditure (except for that approved to be accrued) when incurred 3 Fixed Assets Fixed assets are written off against income in the year of purchase. However, a separate inventory of fixed assets is maintained. 4 Translation of Foreign Currencies Transactions in foreign currencies during the year are converted into Uganda Shillings (functional currency) at rates ruling at the transaction dates. Cash balances held in foreign currency are translated at the ruling rate at the financial year end. Any gains or losses on foreign currency transactions or balances are dealt with in the Statement of Financinal Performance Report Head of Accounts Director iRDIP/NUSAF3 Accountin Officer Page 5 OFFICE OF THE PRIME MINISTER DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) IDA CREDIT No. 5821 For the Financial Year ended 30 June 2019 Other Notes to the Financial Statements NOTE 1: Foreign Exchange Rates JUN -19 (SHS) Foreign Exchange Rates 0 Total 0 NOTE 2 : Tax Revenues JUN - 19 (SHS) Local Services Tax 0 Land Fees 0 Total Tax Revenues_ _ Y 7ig Total Tax Revenues 0 NOTE 3: Externa! Grants Received JUN - 19 (SHS) Grants from foreign governments 79,502,948,741 TOTAL 79,502,948,741 NOTE 4: Transfers received from the Consolidated Fund JUN - 19 __ (SHS) Transfers received from treasury - Current 0 Total 0 Note 5: Transfers Received from the Treasury JUN -19 (SHS) iTransfers received from treasury - Current 0 Total 0 Head of Accounts Director PINUSAF 3 Page 6 OFFICE OF THE PRIME MINISTER DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) IDA CREDIT No. 5821 For the Financial Year ended 30 June 2019 Other Notes to the Financial Statements NOTE 6: Transfers received from other Govt units JUN - 19 (SHS) Transfers received from other govt units - Current 0 Transfers received from other govt units - Capital 0 Total 0 NOTE 7: Non-Tax Revenues JUN -19 (SHS) Investment income 0 Dividends 0 Rent 0 Other Property income 0 Sale of goods and Services 0 Administrative fees & Licenses 0 Other Fines & Penalties 0 Miscellaneous revenue 0 Total 0 NOTE 8: Employee costs JUN -19 (SHS) Wages and Salaries 1,197,303,359 Social Contributions 168,135,261 Other employee costs 20,808,000 TOTAL 1,386,246,620 Head of Accounts Diro5yq RDIIP/NISAF 3 Accounting o kicer Page 7 OFFICE OF THE PRIME MINISTER DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) IDA CREDIT No. 5821 For the Financial Year ended 30 June 2019 Other Notes to the Financial Statements NOTE 9: Goods and services consumed JUN - 19 (SHS) General expenses 777,010,947 Communications 777,010,947 Utility and Property expenses 305,615,978 Supplies and services 3 Proffesional services 558,120,330 Insurance and licences _ Travel and Transport ,Maintnance21,391,000 3,500,474,366 NOTE 10: Consumption of Physical assets JUN -19 Buildin)gs - Non Residential (SHS Buildigs - Residential 0 Roads & Bridges 0 Transport Equipment 0-3706,3 237,069,839 Machinery & Equipment 0 Furniture & Fittings 0 Other Fixed Assets 0 ITOTAL 01 A TOTAL237,069,839 Note 11: Interest JUN - 19 (SHS) Interest Expense (H Total 0 Head of Accounts DirecCth r 1$/NUSAF 3 Accounting ficer Page 8 OFFICE OF THE PRIME MINISTER DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) IDA CREDIT No. 5821 For the Financial Year ended 30 June 2019 Other Notes to the Financial Statements Note 12: Subsidies JUN - 19 (SHS) To Private individuals 01 Total 0 NOTE 13: Transfer to other Organisations JUN -19 (SHS) To Foreign Governments 0 To Other General Government Units 80,115,174,307 To Resident Non Government Units 0 ITOTAL 80,115,174,307 NOTE 14: Social Benefits JUN - 19 (SHS) Pensions 0 Social security benefits0 Employer social benefits 0 Total 0 NOTE 15: Other operating expenses JUN- 19 (SHS) Other operating expenses 0 aTotale Note 16: Foreign Exchange Losses (gains) JUN - 19 (SHS) Foreign Exchange Losses (gains) 551,463 Total 51,463 Head of Accounts Direcor DkIP/NUSAF 3 TL CORAT icer Page 9 OFFICE OF THE PRIME MINISTER DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) IDA CREDIT No. 5821 For the Financial Year ended 30 June 2019 Other Notes to the Financial Statements NOTE 17: Finance costs JUN -19 (SHS) Interest income received 0 Total 0 NOTE 18: Transfer to Treasury 0 JUN -19 (SHS) To Treasury NTR, Salary & TGA Balances 0 To Treasury ,Gross Tax 0 Total 0 Head of Accounts Dir DRDIP/NUSAF 3 Accountini officer Page 10 OFFICE OF THE PRIME MINISTER DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) SCHEDULE OF DISBURSEMENT OF IDA CREDIT During FY 2018/19 NOTES 2 Withdrawal Value Date Amount Amount Amount Application USD XDR UGX No. WA 004 12-Feb-19 20,000,000 14,340,618 79,502,948,741 TOTAL , 20,000,000 14,340,618 79,502,948,741 Head of Accounts a Director D IP/NUSAF3 Accounting fficer Page 11 OFFICE OF THE PRIME MINISTER DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) IDA Loan No: 58210 BANK RECONCILIATION STATEMENT AS AT 30TH JUNE 2019 Account Titie: OPM - DR DIP Account No. 000030088400010 Bank Name: BANK OF UGANDA (USD) (USD) I Balance as per Bank statenent $8,121,195.75 2 Balance as per Cashbook $8,121,195.75 3 Direct Credits -..- Ch._ue No. Pac/Pur_ose Amount Sub-total Direct Credits $0.00 Sub-Total (Line 2 plus line 3) $8,121,195.75 4 Add: Unpresented Cheques: Dat_e Cheque No. Payee/Purpose Amount 5 Sub-total of unpresented cheques: $0.00 6 (Line 2 plus line 3 plus line 5) $8,121,195.75 7 Less: Uneredited receipts Date CieNo. Pavee/Pupose Amount 8 Sub-total of Direct Debits $0.00 9 Reconciled Caslibook balance (Line 6 minus Line 8): __$8,12_1,195.75 Difference Head of Accounts Direc RDIP/NUSAF3 Accounting fficer Page 14 OFFICE OF THE PRIME MINISTER DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) IDA CREDIT No. 5821 For the Financial Year ended 30 June 2019 Notes to the Financial Statements 1 The expenditure has been classified in accordance to both GOU chart of accounts and schedule 1 of the financing agreement for FY 2018 19 Statements have consistently been prepared using the modified cash basis of accounting except where stated otherwise. 2 Office of the Prime Minister operates two designated accounts for IDA and JSDF denominated in USD, an IDA account denominated in local currency for OPM operations in Bank of Uganda as well as a District Support Account in local currency supporting transactions to districts 3 DRDIP project received an advance payment of UGX 38,471,091,533 from the worldbank at the end of FY 2017/18 in preparation for project implementation activities related to FY 2018-2019. This is in an effort to allow an expeditous roll out of project activities from one financial year to another, and manage risk associated with delay in funding Head of Accounts Dir ectoi-DRDIP/NUSAF3 ccounting Officer Page 13 OFFICE OF THE PRIME MINISTER DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) IDA Loan No: 58210 BANK RECONCILIATION STATEMENT AS AT 30TH JUNE 2019 Account Tille: OPM - Di DIP INSTITUTIONAL SUPPORT Account No. 000030088000059 Bank Nane: BANK OF UGANDA I Bolonce as er Bank stalenent (UGX),(UGX) 2,849,849,807 2 Balance as er Cashbook 2,849,849,807 3 Uncredited Chcques/Unbanked Cash Date Chequ Ne. PyeProeAon Sub-total Direct Cnedits Sub-Total Line 2 pls line 3) 4 Add: Unpresented Cheques: Dae EFT/Chequ N.. Pave/Pp-se Amount 5 Sub-total ofunpresented cherines: 6 (Line 2 plus line 3 los line 5) 2,849,849,807 7 Less: Direct )ebits L)ate Chenue No. Pavee/lur ose Amon.t 8Sub-total of Direct Debs 9 Reconciled Cshbook balance (Line 6 minus Line S): 2,849,849,807 Difference l [end ofrA.co...-s Director D R I11SA F3 "..sccontngficer Page 15 OFFICE OF THE PRIME MINISTER DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT IDA Loan No: 5821-UG BANK RECONCILIATION STATEMENT AS AT 30th June 2019 Account Title: OPM-DRDIP DISTRICT SUPPORT Account No. 000030088000058 Bank Name: BANK OF UGANDA (UGX) (UGX) 1 Balance as per Bank statement 323,008,2 96 2 Balance as per Cashbook 323,008,296 3 Uncredited Cheques/Unbanked Cash Date Cheque No. Payee/Purpose Amount Sub-total Direct Credits _ Sub-Total (Line 2 plus line 3) 323,008,296 4 Add: Unpresented Cheques: Date EFT/Cheque No. Payee/Purpose Amount 5 Sub-total of unpresented cheques: - 6 (Line 2 plus line 3 plus line 5) 323,008,296 7 Less: Direct Debits Date Cheque No. Payee/Purpose Amount 8 Sub-total of Direct Debits 9 Reconciled Cashbook balance (Line 6 minus Line 8): 323,008,296 Difference Head of Accounts Mir6toE,RDP/usAF3 Accounting Officer Page 16 OFFICE OF THE PRIME MINISTER TELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRI IDA Loan No: 5821 TRIAL BALANCE AS AT 30TH JUNE 2019 JUN - 2019 JUN - 2019 JUN-2019 --DEBITS CREDITS NET BALANCE 1CLASS 1: REVENUE 1201 Donor Funds - Foreign Governments 0 79,502,948,741 -79,502,948,741 0 79,502,948,741 -79,502,948,741 CLASS 2: EXPENSES 211102 Contract Staff Salaries (Incl. Cas 1,197,303,359 1,197,303,359 212101 Social Security Contributions 168,135,261 168,135,261 213004 Expenses 20,808,000 20,808,000 221001 Advertising and Public Relations 100,088,066 100,088,066 221002 Workshops and Seminars 241,604,997 241,604,997 221007 Books, Periodicals & Newspapers 4,990,500 4,990,500 221008 Compute 502,530,500 502,530,500 221009 Welfare and Entertainment 26,310,000 26,310,000 221 011 Printing, Stationery, Photocopying 109,201,881 109,201,881 222001 Telecommunications 21,090,000 21,090,000 222003 Information and communications tec 173,829,287 173,829,287 223003 Rent (Produced Assets) to private 287,799,000 829287,799,000 223005 Electricity 16,575,390 16,575,390 223006 Water 1,241,588 1,241,588 224006 Transfers to other government units 80,115,174,307 80,115,174,307 225001 Consultancy Services- Short term 558,120,330 558,120,330 27001 Travel jiand 1,281,406,644 1,281,406,644 227002 Travel abroad 113,488,415 113,488,415 227004 Fuel, Lubricants and Oils 40,806,768 40,806,768 228002 Maintenance - Vehicles 1,950,000 1,950,000 228003 Maintenance Of Machinery, Equip 19,441,000 19,441,000 312201 Transport Equipment 237,069,839 237,069,839 85,238,965,132 - 85,238,965,132 CLASS 3: ASSETS 321102 DRDIP IDA Designated Account 29,562,768,502 29,562,768,502 321103 DRDIP Implementation Support 2,849,849,807 2,849,849,807 321104 DRDIP District Support Account 323,008,296 323,008,296 forex loss (551,463) (551,463) 32,735,075,142 - 32,735,075,142 CLASS 4: LIABILITIES CLASS 5: RESERVES Balance carried forward from FY 2017/18 38,471,091,533 TOTAL 117,974,040,274 117 974,040,274 38,471,091,533 о о° �,.., ы о N � ° о о � _.., , С к т � и� й 3 Ф и К1 � ю С н а , ~ � 1�D N G п Ф N а. т О И О Х И -__ � N 'п и (D С=7 �О ,..,. т й �•о�о � с i:� fб? � .о wгао"с° � х '� _" aKr`�jн � С ы � � • У Д1 � � N !��{ о � м� � л �'• д С Ф Оу. й п W н• п � ._. п г� Эк т й т г�р О cbo w ~ п -Д � гио � � •�а т п о. r-� и г � .. гг � w п �р � '-' � � ао w т с � ]г Ч rD уг д7 О �_ т "с гг �Э ♦ а w П1т т� � , �ry''й � г� * н•�J Ф 171 � -н�. j п W р д1 �t �� ._ � ~ К � � � � Э, � и н � � гл F. п ы � � �1 `'�-"-' .� � �'""`_'_ т �Р К � t6 W .... •и, •.�А т и ��'•� о 3 т л � � v� ® •� ..� ,:. ;.у•�,� . ._.®, -� ,•�И. й � � � _Q ~ � . �� `� . °'� 'ьи „ и � � � Г- � � '�� �)G��-, м� � О �- •ел, �N � $ �п• У � � у .V � :�.•,.У-�'�'`,"� т и � ® N ® _ т� � � О �' п й � т w � 0 't 1 м С 1 Х �п г л .,-�., т Н 0 д о F+• �- О пй °� с� Эщ �с т .�7 г�,• ° ° А . � `г р' о° о° r• п tq го п У 5• $ 4•• н• и �_ и N и N (� п п у W � (D !D (О Q� OJ га Э а � � п � со о • о •.°i 4 п b °о о° 2 � (П О S� оЭ й7 �ы н Ф � _.. 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