Osillo & Co Certified Public Accountants AFRICA FREEDOM OF INFORMATION CENTRE IN PARTNERSHIP WITH INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT, THE INTERNATIONAL DEVELOPMENT ASSOCIATION (WORLD BANK). The project- "Enhancing Accountability and Performance of Social Service Contracts in Uganda." P1 50872, GPSA grant no. TF 018160 FUND ACCOUNTABILITY STATEMENT AND AUDIT REPORT FOR THE PERIOD ENDED 30TH SEPTEMBER 2019 Page: 1 AFRICA FREEDOM OF INFORMATION CENTRE FUND ACCOUNTABILITY STATEMENT AND AUDIT REPORT FOR THE PERIOD ENDED 30TH SEPTEMBER 2019 CONTENTS Table of contents Page :1 Project information page : 2 Background 'Page : 3 Scope of the audit Page :3 STATEMENT OF THE GOVERNING COUNCIL'S RESPONSIBILITIES Page : 4 REPORT OF THE INDEPENDENT AUDITORS TO AFRICA FREEDOM OF INFORMATION CENTRE Page: 5-6 Fund Accountability Statement Receipts and Expenditure statement for the period ended 30th September 2019 Page : 7 Basis of Accounting and Principle accounting policies Page: 8-9 Notes to the Fund Accountability Statement for the period ended 30th Septermber 2019 Page: 10-13 Page : 2 AFRICA FREEDOM OF INFORMATION CENTRE FUND ACCOUNTABILITY STATEMENT AND AUDIT REPORT FOR THE PERIOD ENDED 30TH SEPTEMBER 2019 Project Information Title of the Project: Enhancing Accountability and Performance of Social Service Contracts in Uganda Funded by : International Bank for Reconstruction and Development and the International Development Association (World Bank) acting as administrator of grant funds provided by multiple donors under the GPSA Trust Fund Registered Office Plot 436/437 Mawanda Road Suite A4, Corner House P.O. Box 35643, Kampala Uganda Tel: +256 414 533 554 Bankers Standard Chartered Bank (U) Ltd Auditors Osillo & Co. Certified Public Accountants Plot 3120, Kamuli Road Muyudaya House P.O. Box 4660 Kampala, Uganda Governing Council Mr. Saffa Abdulai Emmanuel Chairperson Ms. Elsy Saina Vice Chairperson Ms. Zoe Titus Treasurer Mr. Henri Christin Longendja Member Ms. Sandra Musoga Member Mr. Edetaen Ojo Member The Organization designated secretary is Mr. Sendugwa Gilbert Executive Director Sendugwa Gilbert Plot 436/437 Mawanda Road Suite A4, Corner House P.O.Box 35643, Kampala Uganda Tel: +256 414 533 554 AFRICA FREEDOM OF INFORMATION CENTRE Page : 3 FUND ACCOUNTABILITY STATEMENT AND AUDIT REPORT FOR THE PERIOD ENDED 30TH SEPTEMBER 2019 Introduction Project Description The Enhancing Accountability and Performance of Social Service Contracts in Uganda project was implemented for a four year period in 5 Local Government ( Districts) in the Sectors of agriculture, education and health. The project enhanced performance of contracts through increasing contract information disclosure and citizen monitoring with a view of addressing challenges that negatively impact on the quality, schedule and cost of contracts in Uganda. Scope of the Audit Osillo & Co was contracted by Africa Freedom Of Information Centre to carry out a specific project audit of the enhancing accountability and performance of social service contracts in the districts of Mubende, Mityana, Nakaseke, Nebbi and Ntungamo". The Audit was conducted in accordance with International Standards on Auditing and Covered a period running from December 10,2014 to September 10, 2019. The Auditors are required to consider the following matters > To establish whether the project grant funding of USD 650,000 have been managed in compliance with the partnership agreements as well as the organization regulations. > To establish whether salary costs debited to the project are recorded throughout the duration of the year in a systemized way amd examine whether the salary costs can be verified by sufficient supporting documentation. > To examine whether the financial report includes a comparison for every budget item, between the actual expenditures of activities and the budgeted expenditures as approved by the WB for the period. > To establish whether there is supporting documentation related to incured costs. > To establish whether foreign exchange gains and losses are disclosed in accordance with what is stipulated in the agreement including appendixes. > To follow up whether AFIC is compliant with the applicable tax legislation in regard to taxes ie PAYE and Social Security Fees. > To follow up whether AFIC has adhered to the WB procurement guidelines. > To review if outgoing balance for previous period is the same as incoming balance for the current period. > To examine whether AFIC applies modified cash basis as an accounting principle and establish whether the applied accounting principle is acceptable for the financial report. > To follow up on the funds channelled to implementing partners. Page : 4 AFRICA FREEDOM OF INFORMATION CENTRE FUND ACCOUNTABILITY STATEMENT AND AUDIT REPORT PERIOD 30TH SEPTEMBER 2019 STATEMENT OF THE GOVERNING COUNCIL'S RESPONSIBILITIES The Governing council is responsible for the preparation and presentation of the fund accountability statement of the enhancing accountabiliy and performance of social service contracts in Uganda Projects for the period ended 30th September 2019 set out on pages 7 to 13 which presents in all material aspects the receipts and expenditure and fund balance, in accordance with the accounting policies described in the notes. The Governing council's responsibility includes; determining that the basis of accounting and accounting policies described in notes are acceptable basis for preparing and presenting the Fund Accountability Statement, and for such internal control as the Governing Council determines is necessary to enable the preparation of Fund accountability statement that is free from material misstatements, whether due to fraud or error. The Governing council is also required to prepare a Fund Accountability Statement which presents in all material respects, the state of affairs of the enhancing accountability and performance of social service contracts in Uganda project at the end of the reporting period. The Governing Council is also required to ensure the maintenance of proper accounting records which disclose with reasonable accuracy the financial affairs of Africa Freedom of Information Centre (AFIC). The Governing council accepts responsibility for the Fund Accountability Statement set out on pages 7 to 13 which have been prepared using appropriate accounting policies, supported by reasonable and prudent judgment and estimates, in conformity with accounting policies of the organization described in the notes. The Governing Council is of the opinion that the Fund Accountability Statement is prepared in all material respects in accordance with the project accounting policy. The Governing council further accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of Fund Accountability Statement, as well as adequate systems of Internal Control. Approval of Fund Accountability Statement The Fund Accountability statement as indicated above was approved by the Governing Council of AFIC on .... i . ....And was signed on its behalf by Execu ive Director Date I 1 - , INDEPENDENT AUDITOR'S REPORT To the members of Africa Freedom of Information Centre ( AFIC) Report on the Audit of the Financial Statements Opinion We have audited the Fund Accountability Statement of the "Enhancing Accouritabity and Performance of Social Service Contracts in Uganda" Project whicn comprises the fund balances as at 30th Septomber 2019 and noros to the Fund statement of receipts and expenditures for the poriod ended 30th September 2019 and notcs to tho Fund Accountability Statement. including a summary of significant accounting policies set out on pages 7 to 13. In our opinion, the Fund Accountability Statement of the Africa Freedom of Information Centre (A-IC) "Enhancing Accountability and Performance of Social Service Contracts in Uganda" Project for the Period ended 30th September 2019 is prepared in all material respects, in accordance with the accounting policies sot out in Notos to 13. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and Guidolines issued ty the Institute of Certified Public Accountants of Uganda (ICPAU) Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of Africa Freedom of Information Centre in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IES13A Code) together with trio ethical requirements that are relevant to our audit of the financial staterrents in Uganda, and we hIav fulfil[ed our ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to previdE a basis for our opinion. Responsibilities of the Governing Cowicil and Those Charged with Governance for the Fund accountability statement The Governing Council is responsible for the preparation of the Fund Accountability Statemerrt in occordanc tJh the accounting policies set out in Note 7 to 13 and for such internal control as the Governing council dOrmiCS IS necessary to enable preparation of the Fund Accountability Statement that are free from inatoarl misstatoronit whether due to fraud or error. The Governing Council is responsible for overseeing the enhancing accountability and performance of social service contracts in Uganda project financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the Fund Accountability Statement as a wholc is free froe material misstatement, whether due to fraud or error, and to issue an aEditor' report that inl.dks oir opinion Roasonable assurance is a high level of assurance, but is not a guarantoo that an audIt conducted in accordance w th ISAs will always detect a material misstatement when it exists. Misstatements can arise torn fraud or error and are considered material if, individually or in aggregate they could rennsonably be expected to influence the economic decisions of users taken on the basis of the Fund Accountab ility Statemrint As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit We also: Identify and assess the risks of material misstatement of the fund accouAntability staterriont . vhethrr die to fraud or error, design and perform audit procedures responsive to those risKs, and obtain audit ovidenHrice that is sufficient and appropriate to provide a basis for our opinion. The risk of not dtecting a niinial m sstatement resulting from fraud is higher than for one resulting from error, as fraud may involve gpJsron, forgery, intentional omissions, misrepresentations, or the override of internal control. A Osillo & Compuny Cet i6d Public Accountans Plot 20 Muliadciya House Opp. Majwanda Royal Gardens Kireka, Konuli Road P.0 Box 36164 Kampalo Tel : +256 756 665 452 INDEPENDENT AUDITOR'S REPORT......contd Mob: 4256 757 634 878 Obtain an understanding of internal control relevant to the audit in order to design audit proceA)Thatarel tpopri ate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control. > Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disciosures made by management. > Conclude on the appropriateness of management's use of the going concern basis of accounting arid. based on the audit evidence obtained, whether a material uncertainty exists related to events and conditions that may cast doubt oii the Organization's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw your attention in our auditor's report to the related disclosures in the financial statements or, f such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Organization to cease to continue as a going concern. > Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, arid whether the financial statements represent the underlying transactions and events in a imaniner that achieves fai presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timinq of the audit and significant audit findings, including any significant deficiencies in internal control that we identify duiniig our audit. We also provide those charged with governance with a statoment that we have comTplied with rolovant ethical requirements regarding independence, and to communicate with therm all relationships arid other matters that may be reasonably be thought to bear on our independence, and where applicable, related safeguards From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the imitter or wheii, inl extremely rare circumstances, we determine that a matter should be communicated in our report because of the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on Other Legal and Regulatory Requirements As required by the NGO Act 2017, Sec 30(4) we report to you based on our audit, that 1. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit: 2. In our opinion, proper books of account have been kept by the NGO so far as appears frorm our exam nation of those books; and 3. The NGO's statement of financial position and staterment of conpreherisive income are in agreenent with the books of account. The engagemnt partner on the audit resuting in this independent auditor's report is CPA Owora Fredricks - P10223. CPA Owra Fredricks Date: P022 Osi10n & Co Date: Certified Public Accountants Parer, CPA Jusl,nK 0,.Ilo & CPA Fr ich Owoi, r Page: 7 AFRICA FREEDOM OF INFORMATION CENTRE FUND ACCOUNTABILITY STATEMENT AND AUDIT REPORT FOR THE PERIOD ENDED 30TH SEPTEMBER 2019 Incomes and Expenditures for the Period ended 30th September 2019 Notes Budget Actual Ushs. Ushs. Incomes Grants 2 650 000 649 940 Total Income 650000 649940 Expenditures Agriculture monitoring- AFIC & INFOC 96 496 79 064 Health monitoring and Education monitoring - AFIC & TI 121 826 118 963 Knowledge and Learning (Social Accountability Learning) - 36 732 Staff salaries 276397 258481 Office rent 72000 60265 Communication expense 7875 5988 Stationery - 1 269 IT Consultancy data entryand analysis 1 500 1 289 Commuinication strategy consultant 2500 2501 ATI manual skills training for district public officials and CSOs 9000 9769 ATI follow up workshops 6750 6290 Dialogue on UCMC Governance documents 1 200 1 200 Consultation meetings on UCMC governance 1 000 871 Training workshop on constructive engagement for all UCMC members 1 200 1 191 Training workshop on strategic communication and use of new media 1 200 807 Training on social accountability tools for all UCMC members 1 200 1 150 Advocacy training for all UCMC members 1 200 1 200 Proposal writing and fundraising training for all UCMC members 1200 1 200 Monthly UCMC steering committee meetings 7 200 6 893 Quarterly UCMC general meetings 12000 12000 Digital Camera 499 555 Laptop Computers 1 800 1 507 Video production 1 297 701 Askyourgov reports 660 - Social accountability bestpractices report 3000 1 007 M&E plan, midterm evaluation, endof project 16000 9014 Financial Audit 5000 5016 650000 624923 Fund balance 25017 The Fund Accountability Statement was approved by the governing Council on f4?)020 and was signed on its behalf by: Executive Director Page : 8 AFRICA FREEDOM OF INFORMATION CENTRE FUND ACCOUNTABILITY STATEMENT AND AUDIT REPORT FOR THE PERIOD ENDED 30TH SEPTEMBER 2019 Notes to the Fund Accountability Statement for the year period 30th September 2019 1 SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these fund accountability statements are set out below :- a) Basis of accounting and principal accounting policies. The Fund Accountability Statements have been prepared on a cash basis of accounting. They are therefore not intended to comply with International Financial Reporting Standards. The financial reporting is in accordance with the accounting policies of Africa Freedom of Information Centre. b) Income Transfers represent receipts from World Bank Incomes is recognized in the Fund Accountability Statement when received. c) Expenditures Expenditure incurred by Africa Freedom of Information Centre is recognized in the Receipts and Expenditure Statement at the time of payment. d) Currency The Fund Accountability Statement is recognized in USD e) Foreign Currency Translations The Fund Accountability Statement are presented in United State Dollar (USD) which is not the Organization's functional and presentation currency. Transactions in foreign currencies are initially recorded in the functional currency rate ruling at the date of the transaction Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the balance sheet date. All differences are taken to the income statement. Non- monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of initial translation. Non monetary items measured at fair value in a foreign currency shall be translated using the exchange rates at the date when the fair value was determined. Page : 9 AFRICA FREEDOM OF INFORMATION CENTRE FUND ACCOUNTABILITY STATEMENT AND AUDIT REPORT NOTES TO THE FUND ACCOUNTABILITY STATEMENTS FOR THE PERIOD ENDED 30TH SEPTEMBER 2019 Summary of 'Significant accounting policies (continued) f) Retirement benefits Scheme Africa Freedom of Information Centre contributes to the statutory National Social Security Fund (NSSF). This is a defined contribution scheme registered under the National Social Security Act (1985). The Organization's obligation under this scheme are limited to specific contribution regulated from time to time and currently stated at 10% of the employee's gross pay. The organization's contributions are charged to fund accountabiity statements in the year to which they relate. g) Cash and Cash Equivalents For the purposes of cash flow statement, cash and cash equivalents comprises of cash in hand, cash with other financial institutions ( banks) and bank overdrafts. AFRICA FREEDOM OF INFORMATION CENTRE Page : 10 FUND ACCOUNTABILITY STATEMENT AND AUDIT REPORT NOTES TO THE FUND ACCOUNTABILITY STATEMENTS FOR THE PERIOD ENDED 30TH SEPTEMBER 2019 INCOMES TRANSFERS The funds totafling to USD 649,940 transferred from World Bank to AFIC through Standard Chartered Bank Uganda Account number 8702840959001 for project number TF18160. Thereafter,AFIC transferred some amounts to transparency International Uganda and INFOC Uganda as shown Below; 2 Transfers to AFIC Date Bank Actual amount USD 16/03/2015 Standard Chartered Bank 162 500 03/08/2016 Standard Chartered Bank 227 480 10/04/2018 Standard Chartered Bank 129 980 21/05/2019 Standard Chartered Bank 129 980 Total 649 940 3 Other transfers to AFIC Date Bank/ Source Actual amount USD Standard Chartered Bank ( Funds Refund 04/01/2019 from Transparency International) 17211 06/04/2016 Standard Chartered Bank 630 06/04/2016 Standard Chartered Bank 630 10/09/2019 Refunds of mobile money payments 2 384 10/09/2019 Liquidation of mobile money payments 966 10/09/2019 Balances from Mltistakeholders meetings 188 Total 22 009 4 Transfers AFIC to Transparent International Uganda Date Bank Actua amount USD 17/03/2016 Stanbic Bank 9375 05/07/2016 Stanbic Bank 14475 19/10/2016 Stanbic Bank 14184 20/12/2016 Stanbic Bank 17041 09/05/2017 Stanbic Bank 9954 22/11/2017 Stanbic Bank 18159 29/05/2018 Stanbic Bank 14254 06/12/2018 Stanbic Bank 24384 Total 121 826 5 Transfers AFIC to INFOC Uganda Date Bank Actual amount USD 17/03/2016 Crane Bank 15027 02/09/2016 Crane Bank 11 753 Total 26780 AFRICA FREEDOM OF INFORMATION CENTRE Page: 11 FUND ACCOUNTABILITY STATEMENT AND AUDIT REPORT NOTES TO THE FUND ACCOUNTABILITY STATEMENTS FOR THE PERIOD END 30TH SEPTEMBER 2019 EXPENDITURES 5 AFIC Activity Actual Budget USD USD Staff salaries 258 481 276 397 Office rent an uti ities 60 265 72000 Communication Expense 5988 7875 Stationery 1 269 IT consultant data entry and analysis 1 289 1 500 Communcation strategy consultant 2 501 2 500 ATI manual skills training for district public officials and CSOs 9769 9000 ATI follow up workshops 6290 6750 Dialogue on UCMC Governance documents 1 200 1 200 Consultation Meetings on UCMC governance 871 1 000 documents Training workshop on constructive engagement for 1 191 1 200 all UCMC members 1 Training workshop on strategic communication and use of new media 807 1 200 Training on social accountablity tools for all UCMC 1150 1 200 members115120 Advocacy training for all UCMC members 1 200 1200 proposal writing and fundraising training for all 1 200 1 200 UCMC members120120 Monthly UCMC steering committee meetings 6 893 7 200 Quartely UCMC general meetings 12 000 12 000 Digital Camera 555 499 Laptop Computers 1507 1 800 M&E plan, mid term evaluation, end of project 9014 16000 evaluation Financial Audit 5016 5000 Video production 701 1 297 Askyourgov reports 660 Social accountability best practices report 1 007 3 000 Agriculture monitoring 79 064 96 496 Knowledge and Learning (Social Accountability 36732 learning) Health monitoring & Education monitoring 118 963 121 826 Total 624 923 650 000 AFRICA FREEDOM OF INFORMATION CENTRE Page : 12 NOTES TO THE FUND ACCOUNTABILITY STATEMENTS FOR THE PERIOD ENDED 30TH SEPTEMBER 2019 EXPENDITURES Note 6 Transparency International Uganda Activity Actual Budget USD USD Stakeholder mapping 5350 5000 Stakeholder workshops 9272 10500 Training of community based monitors 7 896 6 000 Train community and civil society leaders 9 256 9 600 Data gathering using UCMC tools training 9 294 10 000 District monthly review and reporting 6199 7500 meetings Feedback meetings for public sector leaders 9 419 11 158 District Dialogues 1 558 2400 National Dialogues Resource persons 25 935 30 000 IEC resource material and tools development - Health infrastructure monitoring tool 2 168 2 100 Video production Askyourgov reports Project site monitoring reports 3 309 6 668 Feedback reports 790 2 400 Social accountability best practices report - Community information walls 2 750 2500 Radio talks shows 3502 4500 Posters 5 333 9000 Health infrastructure monitoring tool (development) 2584 2500 Total 104 615 121 826 Page :13 AFRICA FREEDOM OF INFORMATION CENTRE FUND ACCOUNTABILITY STATEMENT AND AUDIT REPORT NOTES TO FUND ACCOUNTABILITY STATEMENTS FOR THE PERIOD ENDED 30TH SEPTEMBER 2019 EXPENDITURES 7 INFOC Uganda Activity I Code Actual Budget Agriculture Monitoring USD USD Planning meetings 395 1 724 Stakeholder meetings 8575 7784 National Consesus Buliding Inception meeting 1 648 1 144 Personnel Costs / Salaries 9 259 30 000 Office Rent 1 489 4500 Communication 251 1 125 District Consesus building inception meetings 5 163 9 253 [rrt., teZgUUrtcillE[di ULUu Vloevulupriit[L raining - 4 251 Participatory budget tracking -10 621 Contract monitoring report 3 600 Capacity enhancement 12 000 Policy Issues papers produced and corrective strategies established 1 004 Citzens Forum / jury reports- quarterly - 2 040 Registered Changes/ stories of change Annual 450 Radio talk shows 4 500 Community information walls 2 500 Total 26 780 96 496 INFOC Uganda exited the project on 09/May/2017.