Auditor General warns on poor accountability

By Norman Katende and Mary Karugaba 

LACK of proper accounting channels in sports has forced the Auditor General to call for increased financial discipline in national sports organs as one of the means to achieve better results. 

This was included in a report released last week for the year ending June 30, 2011. 

The report calls on the government bodies of Nakivubo and Namboole stadiums and National Council of Sports to have financial discipline and accountability. This should include getting internal auditors to check on their books of accounts. 

The report noted under valuing assets, lack of documentary evidence on expenses and utilised money and actual accountability not matching as some of the problems that required attention. 

He advised all to create internal audit systems to regulate expenditure and advise accordingly. 

“An internal audit function assists management in assessing internal control systems, risk management and governance and where there are deficiencies suggest improvements,” said part of the over 300 page report. NCS was also blamed for having no job descriptions for the positions of Internal Auditor, Senior Assistant Secretary, Office Superintendent and Senior Administrative Secretary. 

“This may result into role conflict and failure to apportion responsibility.” 

The auditor general blamed the lack of internal check for a loss of sh22.5m from the stadium expenses and a doubtful sh7m in trustee expenses. 

“Examination of records revealed that the expenditure vouchers amounting to sh22.5m were not accompanied by any supporting documents. Such unsupported expenditure reflects weaknesses in the Trust’s internal control procedures and may signify misappropriated funds” said the report. 

It also blamed the lack of a strategic plan, vision and mission to provide it with purpose and strategic direction for the stadium to get executives as it is the trustees doing the work and are signatories to the bank accounts. 

“Proper corporate governance principles should be introduced to delink the day to day operations of the stadium from the board of trustees. 

Management noted the observation and recommendation and has promised to present it to the board for appropriate action.