Shs400m unaccounted for in Kabarole audit

Mr Richard Rwabuhinga, the Kabarole District chairperson, displays documents explaining the delayed accountabilities last Friday. Photo by Alex Ashaba

More than Shs400m remains unaccounted for in Kabarole District, a newly released internal audit report has revealed.
The Local Government Internal Audit Department Audit report covers January to March 2019.
In one of the queries, the district paid out Shs6.8m for fuel but no receipt was issued.

In another transaction, Shs3.5m was paid for fuel for Mr Richard Rwabuhinga, the district chairperson, but no receipt was availed.
Mr Rwabuhinga on Friday attributed the anomaly to delays in providing accountability.

“Last financial year, a total of 37 youth groups received funds under youth livelihood programme and by the time the internal audit was conducted, they had not signed the acknowledgement forms indicating they received the money but every group has now acknowledged and we have forms here confirming that they received the money,” he said.

According to the report, Shs361m was paid to various youth livelihood groups as sitting allowances but had no acknowledgement of receipt of funds by groups and no project financing agreements.

The report also indicates that Shs8m and Shs7m was paid to Mr Smart Bwango, the Clerk to Council, to organise Lands Board sittings and District Public Accounts Committee and Mbarara Industrial Park exposure visit, respectively but no accountabilities were availed at the time.

Regulation 43 (2 & 3) of the Local Government Financial and Accounting Regulations of 2007 requires that administrative advances to any council employee should be authorised by the chief executive and be accounted for within a month.

It adds that the chief executive should not authorise any further advances to a council employee who has not accounted for the previous advance.
Mr Rwabuhinga said the district is currently using Integrated Financial System where heads of department request for money for any event and Bank of Uganda transfers it.

Commenting on the unaccounted funds for fuel, he said the stations had now issued reports.
“Every month, the district gives Shs1.5 million for fuel to do monitoring but I don’t touch that money. The money is paid to fuel stations by the bank. We just get receipts only to confirm that we used the fuel,” Mr Rwabuhinga said.

He said other heads of department such as Mr Bruno Basude, Mr Bwango, Mr George Sabiti, and Mr Steven Wakatama, who had not accounted for the money, had their July salaries frozen until they accounted for them.

“[Regarding] the Shs7.5m that was not accounted for by the committee, Mr Bwango had not written the report showing the accountability by the time of audit, which he has done now,” Mr Rwabuhinga said.

The auditor recommended that the chief administrative officer sets punitive measures against employees who have not accounted for the funds and service providers who have not issued receipts on payments effected.

Breakdown of unaccounted funds
Shs312,000 for inspection of new fish farmers and ponds
Shs480,000 for inspection of fish markets
Shs1,050,000 fuel for senior fisheries officer
Shs240,000 for beneficiary selection and training in Rwengaju
Shs500,000 for data collection of fish farming
Shs768,000 for supervision visits
Shs1,613,000 for consultations at the Ministry of water
Shs576,000 for inspection of water points
Shs1,303,000 for fuel for water office
Shs6,875,000 for fuel for inspection and road maintenance
Shs846,000 for car servicing
Shs2,500,000 fuel for district executive committee
Shs3,500,000 fuel for district Chairperson
Shs800,000 fuel for Clerk to Council
Shs1,000,000 for food for council sitting
Shs1,050,000 for finance committee sitting
Shs2,820,000 for verification of management report to Audit
Shs2,000,000 for council sitting
Shs8,000,000 for Land board and District Public Ac’ts Committee
Shs361,868, 000 transfer of funds to Youth Livelihood groups
Shs750,000 for fuel for ACAO (Kisembo M)
Shs750,000 for ACAO (Kato S)
Shs1,000,000 electricity for health department
Shs7,460,000 for Mbarara Industrial park exposure visit
Shs1,065, 229 for electricity district headquarters
Shs1,500,000 for fuel for two ACAOs
Total Shs410,626, 229