Wakiso district fails to trace sh600m
WAKISO district has failed to account for over sh600m advanced by the central Government for the financial years 2002-2005. The district officials recently appeared before the Public Accounts Committee to answer queries about the funds.
By Joshua Kato
and Paul Kiwuuwa
WAKISO district has failed to account for over sh600m advanced by the central Government for the financial years 2002-2005. The district officials recently appeared before the Public Accounts Committee to answer queries about the funds.
2001/02
According to the Auditor General’s report, the district spent an unexplained sh10m on bank charges. The Auditor General noted that the district operated numerous accounts, which led to high expenditure on bank charges. However, according to the Chief Administrative Officer (CAO), the bank accounts were a requirement by the Local Government Finance and Accounting 1998 Act and conditions of donor funds.
The report also indicated that there was a revenue shortfall of 16%. About 805m in local revenue allocations had been projected but sh671m was realised. Although Wakiso had one of the highest revenue turn over across the country, the performance rate did not match the corresponding rates from conditional and unconditional grants.
It was also noted that payments amounting to sh56m were un- vouched for or improperly vouchered. “The absence of complete and proper documentation renders such payments doubtful and potentially fraudulent,†the report said.
Also within the same period, over sh7m was given to a local firm to provide meals and entertainment to the executive committee with no proper documentation. The CAO admitted that there was no supporting documentation, save for a council sanction that okayed the move.
Also included in this period were sh3m as un - authorised procurements and sh80m as un- accounted- for funds. However, the CAO clarified that sh33m had been accounted for, but admitted that sh46m remained un-accounted for.
“The district was young with very few staff handling several responsibilities hence failure to adhere to regulations,†he said.
2002/03
During this period, it was reported that out of sh840m projected as local revenue, sh801m (95%) was collected. However, according to the Auditor General, the reasons for the shortfall were not clearly explained. The CAO attributed the shortfall to non- payment of graduated tax and shortfall on licence caused by defaulting tenderers. The CAO explained that projects to enhance local revenue collections have already been put in place including mobilisation teams at the district, sub-county and parish levels.
Sh3.6m was recorded as not vouched for. This, according to details given included funds given to individuals. The CAO blamed the lack of staff for the shortcoming in accounting. During the same period, it was discovered that an additional sh10m was un- accounted for. According to the report, these were funds given to various district officials without proper documentation. Again, the CAO blamed the lack of manpower for the discrepancy.
He, however, said reminders were sent to the various officials to recover the funds. Also queried was sh10m in Poverty Alleviation Funds, and around sh130m meant for schools capitation grants. The committee demanded that the district accounting officers clear up the issues.
2003/04
During this period, the Auditor General found out that about sh41m was lost through misappropriation at Masulita sub-county. In his response, the CAO accepted that these funds were abused and up-accounted for. He however said that the culprits were interdicted and the case was before the courts.
The Auditor General also discovered that another sh21m was not properly accounted for. However, the CAO produced up-to-date documentation to account for the funds.
The Auditor General queried how sh8.6m that was received from a donor for a Children and youth project was used, since there were no audit reports about the usage. However, the CAO in his response said although this money was budgeted for, it was never received, thus never used.
2004/05
The first query was about sh13m advanced to staff, but not recovered. The report pointed out that most of the supporting documents provided were photo-copies of and others did not have the signature of the district auditor. In his response, the CAO blamed careless officers for this error. “Most of these queries would not have come up if the concerned officers were a little careful,†he said.
The other query involved sh29m in school facilitation grant that although spent, was not included in the work plan. In his response, the CAO acknowledged the error. He said adjustments were made to accommodate the error.
The committee, however, was not satisfied with some of the responses and ordered the CAO to provide clear documentation of how the money was spent.
and Paul Kiwuuwa
WAKISO district has failed to account for over sh600m advanced by the central Government for the financial years 2002-2005. The district officials recently appeared before the Public Accounts Committee to answer queries about the funds.
2001/02
According to the Auditor General’s report, the district spent an unexplained sh10m on bank charges. The Auditor General noted that the district operated numerous accounts, which led to high expenditure on bank charges. However, according to the Chief Administrative Officer (CAO), the bank accounts were a requirement by the Local Government Finance and Accounting 1998 Act and conditions of donor funds.
The report also indicated that there was a revenue shortfall of 16%. About 805m in local revenue allocations had been projected but sh671m was realised. Although Wakiso had one of the highest revenue turn over across the country, the performance rate did not match the corresponding rates from conditional and unconditional grants.
It was also noted that payments amounting to sh56m were un- vouched for or improperly vouchered. “The absence of complete and proper documentation renders such payments doubtful and potentially fraudulent,†the report said.
Also within the same period, over sh7m was given to a local firm to provide meals and entertainment to the executive committee with no proper documentation. The CAO admitted that there was no supporting documentation, save for a council sanction that okayed the move.
Also included in this period were sh3m as un - authorised procurements and sh80m as un- accounted- for funds. However, the CAO clarified that sh33m had been accounted for, but admitted that sh46m remained un-accounted for.
“The district was young with very few staff handling several responsibilities hence failure to adhere to regulations,†he said.
2002/03
During this period, it was reported that out of sh840m projected as local revenue, sh801m (95%) was collected. However, according to the Auditor General, the reasons for the shortfall were not clearly explained. The CAO attributed the shortfall to non- payment of graduated tax and shortfall on licence caused by defaulting tenderers. The CAO explained that projects to enhance local revenue collections have already been put in place including mobilisation teams at the district, sub-county and parish levels.
Sh3.6m was recorded as not vouched for. This, according to details given included funds given to individuals. The CAO blamed the lack of staff for the shortcoming in accounting. During the same period, it was discovered that an additional sh10m was un- accounted for. According to the report, these were funds given to various district officials without proper documentation. Again, the CAO blamed the lack of manpower for the discrepancy.
He, however, said reminders were sent to the various officials to recover the funds. Also queried was sh10m in Poverty Alleviation Funds, and around sh130m meant for schools capitation grants. The committee demanded that the district accounting officers clear up the issues.
2003/04
During this period, the Auditor General found out that about sh41m was lost through misappropriation at Masulita sub-county. In his response, the CAO accepted that these funds were abused and up-accounted for. He however said that the culprits were interdicted and the case was before the courts.
The Auditor General also discovered that another sh21m was not properly accounted for. However, the CAO produced up-to-date documentation to account for the funds.
The Auditor General queried how sh8.6m that was received from a donor for a Children and youth project was used, since there were no audit reports about the usage. However, the CAO in his response said although this money was budgeted for, it was never received, thus never used.
2004/05
The first query was about sh13m advanced to staff, but not recovered. The report pointed out that most of the supporting documents provided were photo-copies of and others did not have the signature of the district auditor. In his response, the CAO blamed careless officers for this error. “Most of these queries would not have come up if the concerned officers were a little careful,†he said.
The other query involved sh29m in school facilitation grant that although spent, was not included in the work plan. In his response, the CAO acknowledged the error. He said adjustments were made to accommodate the error.
The committee, however, was not satisfied with some of the responses and ordered the CAO to provide clear documentation of how the money was spent.