{"paragraphs": [{"content": "THE REPUBLIC OF UGANDA \nREPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE MINISTRY OF INTERNAL AFFAIRS \nFOR THE YEAR ENDED 30 TH JUNE 2023 \nTable of Contents \nList of Acronyms", "metadata": {"headings": [{"headings_0": {"content": "THE REPUBLIC OF UGANDA", "page": 1, "level": 2}}, [{"headings_0": {"content": "REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE MINISTRY OF INTERNAL AFFAIRS", "page": 1, "level": 2}}], [{"headings_0": {"content": "REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE MINISTRY OF INTERNAL AFFAIRS", "page": 1, "level": 2}}], [{"headings_0": {"content": "Table of Contents", "page": 2, "level": 2}}], [{"headings_0": {"content": "List of Acronyms", "page": 3, "level": 2}}]], "page": 1, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "heading"}}, {"content": [["Bn", "Billion"], ["ICT", "Information Communication Technology"], ["IESBA", "International Ethics Standards Board for Accountants"], ["IFMS", "Integrated Financial Management System"], ["INTOSAI", "International Organization of Supreme Audit Institutions"], ["ISSAIs", "International Standards of Supreme Audit Institutions"], ["LGs", "Local Governments"], ["MDAs", "Ministries, Departments and Agencies"], ["MIA", "Ministry of Internal Affairs"], ["Mn", "Million"], ["MoFPED", "Ministry of Finance, Planning and Economic Development"], ["MoJCA", "Ministry of Justice and Constitutional Affairs"], ["NAA", "National Audit, Act 2008"], ["NTR", "Non-Tax Revenue"], ["PBS", "Programme Budgeting System"], ["PFMA", "Public Finance Management Act, 2015"], ["PPDA", "Public Procurement and Disposal of Public Assets"], ["PS/ST", "Permanent Secretary/Secretary to Treasury"], ["TI", "Treasury Instructions, 2017"], ["UGX", "Uganda Shillings"]], "metadata": {"headings": [{"headings_0": {"content": "List of Acronyms", "page": 3, "level": 2}}], "page": 3, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "columns": ["Acronym", "Meaning"], "type": "table"}}, {"content": "REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE MINISTRY OF INTERNAL AFFAIRS FOR THE YEAR ENDED 30 TH JUNE 2023 \nTHE RT. HON. SPEAKER OF PARLIAMENT Opinion \nI have audited the financial statements of the Ministry of Internal Affairs, which comprise the Statement of Financial Position as at 30 th June 2023, the Statement of Financial Performance, Statement of Changes in Equity and Statement of Cash Flows, together with other accompanying statements for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. \nIn my opinion, the accompanying financial statements of the Ministry of Internal Affairs, for the financial year ended 30 th June 2023 are prepared, in all material respects, in accordance with Section 51 of the Public Finance Management Act, 2015 and the Financial Reporting Guide, 2018 (as amended). \nBasis for Opinion", "metadata": {"headings": [{"headings_0": {"content": "REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE MINISTRY OF INTERNAL AFFAIRS FOR THE YEAR ENDED 30 TH JUNE 2023", "page": 4, "level": 2}}, [{"headings_0": {"content": "THE RT. HON. SPEAKER OF PARLIAMENT Opinion", "page": 4, "level": 2}}], [{"headings_0": {"content": "THE RT. HON. SPEAKER OF PARLIAMENT Opinion", "page": 4, "level": 2}}], [{"headings_0": {"content": "THE RT. HON. SPEAKER OF PARLIAMENT Opinion", "page": 4, "level": 2}}], [{"headings_0": {"content": "Basis for Opinion", "page": 4, "level": 2}}]], "page": 4, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "heading"}}, {"content": "I conducted my audit in accordance with the International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further described in the Auditor\u2019s Responsibilities for the audit of the Financial Statements section of my report. I am independent of the Ministry in accordance with the Constitution of the Republic of Uganda 1995 (as amended), the National Audit Act, 2008, the International Organization of Supreme Audit Institutions (INTOSAI) Code of Ethics, the International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants (Parts A and B), 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. \nKey Audit Matter \nKey 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. \nIn arriving at my findings, I reviewed documents such as work plans, budgets and performance reports. I also conducted interviews and physical inspections to corroborate my findings from the review of documents. \nThe mandate of the Ministry of Internal Affairs under Article 216 (1) of the Constitution of the Republic of Uganda is to ensure and maintain security, peace and stability in the country. \nDuring the financial year 2022/2023, the entity had a budget of UGX.60.588Bn, out of which UGX.57.335Bn was warranted, as shown below;", "metadata": {"headings": [{"headings_0": {"content": "Basis for Opinion", "page": 4, "level": 2}}, [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}], [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}], [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}], [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}], [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}]], "page": 4, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": [["1", "Recurrent (Wage)", "3.812", "3.812", "100%"], ["2", "Recurrent (Non-wage)", "53.129", "51.079", "96%"], ["3", "Development", "3.647", "2.444", "67%"], ["", "**Total**", "**60.588**", "**57.335**", "**95%**"]], "metadata": {"headings": [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}], "page": 5, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "columns": ["Sn", "Details", "Budget (UGX\u2019Bn)", "Warrants (UGX\u2019Bn)", "Percentage release"], "type": "table"}}, {"content": "Out of the total warrants of UGX.57.335Bn, I reviewed activities/outputs worth UGX.46.341Bn (81%), as summarised in the table below;", "metadata": {"headings": [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}], "page": 5, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": [["1", "Wage expenditure", "3.810", "7%"], ["2", "Outputs/activities performance review selected for budget", "42.531", "74%"], ["", "Total amounts audited", "**46.341**", "81%"], ["", "**Total warrants**", "**57.335**", ""]], "metadata": {"headings": [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}], "page": 5, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "columns": ["No", "Details", "Actual Amount (UGX)", "Cumulative Percentage"], "type": "table"}}, {"content": "Below are my findings from the performance of revenues/warrants, absorption of warrants and implementation of outputs and activities under the budget performance review;", "metadata": {"headings": [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}], "page": 5, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": [["**1.1**", "**Revenue Performance** of Non-Tax Revenue (NTR)** to the approved NTR estimates for the financial year 2022/2023, the entity budgeted to collect UGX.1.7Bn during the financial year. However, by the end of the year, only UGX.1.6Bn had been collected, representing a 94% performance. collection of non-tax revenue at vote level negatively affects NTR collections at Treasury level, thereby denying government resources for the implementation of activities. Accounting Officer explained that due to budget cuts, the NGO Bureau had a limited scope within which they could manoeuvre to enforce compliance, but it has developed strategies to improve compliance and generate more NTR in the FYR 2023-2023. **Performance** According Under The", "I advised the Accounting Officer to fast-track the strategies put in place to enhance NTR collections. advised the Accounting Officer to roll over the unimplemented activities subsequent years.  I  the further advised Accounting to the I"]], "metadata": {"headings": [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}], "page": 5, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "columns": ["No", "Observation", "Recommendation"], "type": "table"}}, {"content": [["The entity had an approved budget of UGX.60.58Bn from the various programmes, out of which UGX.57.33Bn was warranted, resulting in a shortfall of UGX.3.25Bn representing a 95% performance. performance of warrants from each of the programmes from which the entity was allocated funds is shown in the table below;  **Programme Approved Warrants** (UGX\u2019Bn)** **Variance (UGX\u2019Bn)** **Percentage** **Budget** performance** **(UGX\u2019Bn)**  Governance  60.58  and Security 57.33 3.25 95 UGX.3.25Bn that was not warranted under the Governance and security programme was meant for the following activities, which were either partially or not implemented at all;  **No Activity** 1\\. Transfers NGO Bureau to **Amount not warranted (UGX\u2019 Bn)** 2.050 **Purpose of the unimplemented activity** facilitation of These are unrealized NGO Bureau funds meant for rent, medical insurance, and gratuity, review of NGO Policy 2010 and NGO Act 2016, reintegration of reporters and victims through training in various fields, and the adjudication committee.  No effect because the market price of time of procurement was lower than the estimated price at the budgeting stage  Procurement  equipment vehicles at assorted ICT the of Procurement of assorted security equipment (boom barriers, concrete barriers)  Renovation of the Roof of the Ministry main building 2\\. Purchase of Motor vehicles 0.172 3 4 5 6 Purchase  ICT hardware of  0.230 Acquisition of Classified Assets Renovation of the Ministry Roof  **Total** 0.297 0.484 **3.253** Purchase Furniture of 0.020 Procurement of assorted furniture and fittings The The", "Officer to keep engaging  the Ministry of Finance to ensure that all the warranted funds are released in the future."], ["**1.2 Utilisation of warrants** of the total warrants of UGX.57.33Bn availed to the entity during the year, UGX.57.23Bn was utilised, resulting in un-utilised warrants of UGX.0.10Bn representing 99.8% utilisation as shown in the table below; **Programme Warrants (UGX Bn)** **Utilisation of warrants (UGX\u2019Bn)** **Variance (UGX Bn)** **Percentage performance** Governance 57.33 57.23 0.10 99.8 and security unutilised warrants were meant for the following activities that were partially or not implemented at all. Out The", "I advised the Accounting Officer to devise strategies to ensure all released funds are utilised as budgeted to deliver services to the community."]], "metadata": {"headings": [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}], "page": 6, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "columns": ["column_0", "column_9"], "type": "table"}}, {"content": [["11(2)(d) of the Public Finance Management Regulations, 2016 states that the work plans of a vote shall indicate the funding allocated to each activity. to the above, I observed that the budgets for three (3) outputs assessed were not supported by individual activity costing and budgets. **No. Budget**  **Output** Code** **Budget Output Budget (UGX\u2018Bn)** 460021 District Technical Support Services 460025 Offender\u2019s Rehabilitation and Reintegration  460148 Supervision and Advisory services 1.280 1.375 1.257 **Total** 3.912** to provide detailed costing for activities implies that the costing at output level cannot be justified, and as such, there is a risk that the entity either over or under-budgeted for these outputs. Accounting Officer explained that the Programme Budgeting system does not provide for budgeting at the activity level but rather at the budget output level. **Table showing activities affected by under-utilisation of warrants.** **Warrants**  **not Utilised.** (UGX Bn)** **No. Activities affected** **by** the underutilisation** Funds were meant for incapacity,  death benefits and funeral expenses  Payment of gratuity Acquisition of ICT hardware  Payment of activity allowances Purchase of stationery and printing services **the of** **Reason** for** **underutilisation**  **warrants**  Entity  per incapacities that arose during the year. spent as There was key missing information from the staff for whom gratuity was to be paid. Procurement delays The need for the allowances did not arise. 0.012 0.042 0.010 0.007 0.006  The need did not arise. **1.3 Unsupported output budgets** 1 2 3 4 5 1 2 3 Regulation Contrary Failure The", "I advised the Accounting Officer to ensure that outputs  and activities  are appropriately  costed  forward. going"], ["**1.4 Implementation of outputs** assessed the implementation of 17 outputs that had been fully quantified with a total of 90 activities worth UGX.42.5Bn and noted that: \uf0b7 Nine (9) outputs with 35 activities and expenditure worth UGX.23.05Bn were fully implemented.  \uf0b7 Eight (8) outputs with 55 activities worth UGX.19.4Bn were partially implemented. Out of the 55 activities, the entity fully implemented 44 activities; three (3) activities were partially implemented, while eight (08) activities remained unimplemented. I Details are in **Appendix 1.**", "to the advised the Accounting Officer to roll over key unimplemented activities subsequent  financial year implementation.  I  the  Officer  engaging further advised Accounting to keep the for I"]], "metadata": {"headings": [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}], "page": 7, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "columns": ["The entity had an approved budget of UGX.60.58Bn from the various programmes, out of which UGX.57.33Bn was warranted, resulting in a shortfall of UGX.3.25Bn representing a 95% performance. performance of warrants from each of the programmes from which the entity was allocated funds is shown in the table below;  Programme Approved Warrants (UGX\u2019Bn) Variance (UGX\u2019Bn) Percentage Budget performance (UGX\u2019Bn)  Governance  60.58  and Security 57.33 3.25 95 UGX.3.25Bn that was not warranted under the Governance and security programme was meant for the following activities, which were either partially or not implemented at all;  No Activity 1\\. Transfers NGO Bureau to Amount not warranted (UGX\u2019 Bn) 2.050 Purpose of the unimplemented activity facilitation of These are unrealized NGO Bureau funds meant for rent, medical insurance, and gratuity, review of NGO Policy 2010 and NGO Act 2016, reintegration of reporters and victims through training in various fields, and the adjudication committee.  No effect because the market price of time of procurement was lower than the estimated price at the budgeting stage  Procurement  equipment vehicles at assorted ICT the of Procurement of assorted security equipment (boom barriers, concrete barriers)  Renovation of the Roof of the Ministry main building 2\\. Purchase of Motor vehicles 0.172 3 4 5 6 Purchase  ICT hardware of  0.230 Acquisition of Classified Assets Renovation of the Ministry Roof  Total 0.297 0.484 3.253 Purchase Furniture of 0.020 Procurement of assorted furniture and fittings The The", "Officer to keep engaging  the Ministry of Finance to ensure that all the warranted funds are released in the future."], "type": "table"}}, {"content": "Non-implementation of planned activities implies that the expected Ministry of Finance services to the beneficiary communities were not attained. For example, to ensure that all despite receiving the funds, the entity did not implement the following the  \napproved planned activities:  \nplanned activities are funded.", "metadata": {"headings": [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}], "page": 8, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": "1. Parliamentary Committee on Defence and Internal Affairs (PACODIA) retreat was not conducted.\n2. Two (2) International study visits (to Hong Kong and South Africa) were not conducted.\n3. One (1) inter-regional study visit was not conducted, and no conferences were conducted despite planning for Six (6).\n4. The Ministry roof was not renovated.\n5. Regulations to operationalise the Small Arms and Light Weapons (SALW) Law was not drafted.\n6. The structure of the Police Authority was not reviewed.\n7. 20 staff were not trained in the E-recruitment system for Police Officers of Rank U4 and above.", "metadata": {"headings": [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}], "page": 8, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "list"}}, {"content": "The Accounting Officer explained that the Parliamentary Committee on Defence and Internal Affairs retreat was not conducted due to the lack of quorum of MPs on the committee, the study visits were not conducted due to Government\u2019s ban on travel abroad, the inter-regional study visit and none of the planned conferences were conducted, the Ministry roof was not renovated and staff were trained in the E-recruitment system for Police Officers due to insufficient releases, Regulations to operationalise the Small Arms and Light Weapons (SALW) Law was not drafted due to delays in enactment of the SALW Act and the review of the structure of the Police Authority was halted due to the ongoing rationalisation and merger of Government MDAs. \n2.0 \nManagement of the Government Salary Payroll", "metadata": {"headings": [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}, [{"headings_0": {"content": "Key Audit Matter", "page": 4, "level": 2}}], [{"headings_0": {"content": "Management of the Government Salary Payroll", "page": 8, "level": 2}}]], "page": 8, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": "Over the years, the execution of the Government budget has been characterised by wage overruns and persistent requests to the Minister for Finance Planning and Economic Development (MoFPED) by entities, for supplementary funding to cater for shortfalls on salaries, yet this is an area where employee numbers are certain and specific. In his letter to the Auditor General dated 29 th November 2022 referenced HRM 155/222/02, the Minister for Finance Planning and Economic Development (MoFPED) highlighted that, despite the reforms introduced by Government to mitigate against persistent supplementary requests for additional funds to cater for wage shortfalls, there has not been significant results. Yet, expenditure on wage is a substantial percentage of all entity budgets. Other anomalies highlighted included: payments for non-existent employees, underpayments to staff and irregular overpayments to staff, among others. \nexamined their records supporting their appointments into service. I further undertook other procedures to review the accuracy of the payroll including: reviewing the planning, budgeting and payments during the four-year period. \nI established that, during the last four financial years, the Ministry of Internal Affairs had a wage budget of UGX.9.5Bn, out of which UGX.8.4Bn was utilised as shown below;", "metadata": {"headings": [{"headings_0": {"content": "Management of the Government Salary Payroll", "page": 8, "level": 2}}, [{"headings_0": {"content": "Management of the Government Salary Payroll", "page": 8, "level": 2}}], [{"headings_0": {"content": "Management of the Government Salary Payroll", "page": 8, "level": 2}}]], "page": 8, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": [["1", "2019/2020", "2.299", "2.070", "90%"], ["2", "2020/2021", "2.299", "1.561", "68%"], ["3", "2021/2022", "2.448", "2.280", "93%"], ["4", "2022/2023", "2.448", "2.448", "100%"], ["", "**Total**", "**9.494**", "**8.359**", "88%"]], "metadata": {"headings": [{"headings_0": {"content": "Management of the Government Salary Payroll", "page": 8, "level": 2}}], "page": 9, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "columns": ["SN", "Financial year", "Budget (UGX\u2019Bn)", "Actual Expenditure (UGX\u2019 Bn)", "Percentage"], "type": "table"}}, {"content": "I issued a separate detailed audit report upon completion of the audit procedures. Below is a summary of the key findings from the audit;", "metadata": {"headings": [{"headings_0": {"content": "Management of the Government Salary Payroll", "page": 8, "level": 2}}], "page": 9, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": [["**No**", "**Observation**", "**Recommendation**"], ["**2.1**", "of 156 employees on the Ministry of Internal Affairs\u2019 February 2023 salary payroll, a total of 155 (99.4%) were fully verified, while one (1) staff (0.6%) did not show up as summarised in the table below; **Amount (UGX Bn** **of** **156** **Number Individuals** **showing a summary of the validation results of staff Details** **Total number of staff as per** **February 2023 payroll**  Number of employees fully verified Number of employees who did not appear for the headcount-Accounted for (on payroll)  **Subtotal**  Employees who for headcount but were not on the payroll - new records  **Overall total covered** **156** appeared  23 155 1 **179** **0.172** 0.172 0.0007 **0.172** 0.037 **0.209** a) Out of 156 employees, a total of 155 (99.4%) who appeared for the validation presented pre-requisite documents/information and were fully verified. exercise all the b) One (1) employee on the payroll did not appear for the validation because he was away on official study leave and was left on the payroll, pending validation upon his return.  c) A total of twenty-three (23) individuals whose names were not on the payroll appeared for the validation exercise with all pre-requisite documents. Upon confirmation by the Accounting Officer regarding their status, these individuals were included on the validated payroll. are details of the validation results: response to my validation findings, the Accounting Officer concurred that the records captured were accurate. Accordingly, the verified employees have been included on the validated payroll for MIA, which has been presented to the Minister of Finance Planning and Economic **Validation of Employees on the Entity\u2019s Main payroll** Out **Table** Below In", "I advised the Accounting Officer to  routinely maintain  an updated  payroll, ensuring  that prompt adjustments are made for any new staff as well as deletion  of employees  who have ceased to be personnel of the entity.  For the staff who was not validated, I advise  the Accounting Officer to ensure that the staff is validated by the Ministry of Public Service upon his return from study leave."]], "metadata": {"headings": [{"headings_0": {"content": "Management of the Government Salary Payroll", "page": 8, "level": 2}}], "page": 9, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "columns": ["column_0", "column_1", "column_6"], "type": "table"}}, {"content": [["Development and copied to the Ministry of Public Service for further management.", ""], ["**2.2** Inconsistencies in Employee Details** (07) employees on the payroll had inconsistencies in their dates of birth captured in the payroll and data captured by NIRA on the National Identity cards. in the dates of birth and other staff details not only affect the employees\u2019 credibility but could also lead to employees remaining on the payroll beyond their retirement age. Accounting Officer explained that guidance on addressing data inconsistencies was received from the Permanent Secretary, Ministry of Public Service, vide the letter COM 6/7/11 dated February 2017, and that all staff were subsequently informed of the procedures to change inconsistencies in their data. Consequently, the process of correcting staff biodata is ongoing. Seven Inconsistencies The", "I advised the Accounting Officer to engage the affected staff and ensure  that employee records are duly updated and brought to the attention of the appropriate authorities within a specified timeline for action."], ["**2.3** Utilisation of the Wage Budget** reviewed the budgets and actual expenditure for the period 2019/20 to 2022/23 and noted that out of the UGX.9.5Bn Budgeted and approved wage funds for the four financial years, only UGX.8.4Bn was spent, giving rise to unspent balances amounting to UGX.1.1Bn as shown in the table below; **showing analysis of spending on budgeted wage funds** **Years**  **Budget** (UGX \u2018Bn)** **Actual UGX\u2019Bn)** 2.299  2.299  2.448  2.449  **9.495** **Un-utilized funds (UGX Bn)** 0.230 0.738 0.168 0 **1.136** 2.070 1.561 2.280 2.448 **8.359** 2019/20 2020/21 2021/22 2022/23 **Total** of wage budgets may indicate poor financial planning and budgeting and can affect the Ministry\u2019s ability to deliver the organisation\u2019s programs and services effectively, resulting in delays, reduced service quality and interruption of critical services. Accounting Officer explained that the variances resulted from the failure to recruit staff, yet the funds were budgeted under the wage budget. I **Table** Under-absorption The", "I advised the Accounting Officer to review and address  the weaknesses causing the failure to promptly  recruit staff.  Where corrective action cannot be taken promptly,  the Accounting Officer should reassess the organisation\u2019s budgetary priorities and revise the budgets  accordingly."]], "metadata": {"headings": [{"headings_0": {"content": "Management of the Government Salary Payroll", "page": 8, "level": 2}}], "page": 10, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "columns": ["column_0", "column_8"], "type": "table"}}, {"content": [["Development and copied to the Ministry of Public Service for further management.", ""], ["**2.2** Inconsistencies in Employee Details** (07) employees on the payroll had inconsistencies in their dates of birth captured in the payroll and data captured by NIRA on the National Identity cards. in the dates of birth and other staff details not only affect the employees\u2019 credibility but could also lead to employees remaining on the payroll beyond their retirement age. Accounting Officer explained that guidance on addressing data inconsistencies was received from the Permanent Secretary, Ministry of Public Service, vide the letter COM 6/7/11 dated February 2017, and that all staff were subsequently informed of the procedures to change inconsistencies in their data. Consequently, the process of correcting staff biodata is ongoing. Seven Inconsistencies The", "I advised the Accounting Officer to engage the affected staff and ensure  that employee records are duly updated and brought to the attention of the appropriate authorities within a specified timeline for action."], ["**2.3** Utilisation of the Wage Budget** reviewed the budgets and actual expenditure for the period 2019/20 to 2022/23 and noted that out of the UGX.9.5Bn Budgeted and approved wage funds for the four financial years, only UGX.8.4Bn was spent, giving rise to unspent balances amounting to UGX.1.1Bn as shown in the table below; **showing analysis of spending on budgeted wage funds** **Years**  **Budget** (UGX \u2018Bn)** **Actual UGX\u2019Bn)** 2.299  2.299  2.448  2.449  **9.495** **Un-utilized funds (UGX Bn)** 0.230 0.738 0.168 0 **1.136** 2.070 1.561 2.280 2.448 **8.359** 2019/20 2020/21 2021/22 2022/23 **Total** of wage budgets may indicate poor financial planning and budgeting and can affect the Ministry\u2019s ability to deliver the organisation\u2019s programs and services effectively, resulting in delays, reduced service quality and interruption of critical services. Accounting Officer explained that the variances resulted from the failure to recruit staff, yet the funds were budgeted under the wage budget. I **Table** Under-absorption The", "I advised the Accounting Officer to review and address  the weaknesses causing the failure to promptly  recruit staff.  Where corrective action cannot be taken promptly,  the Accounting Officer should reassess the organisation\u2019s budgetary priorities and revise the budgets  accordingly."], ["**2.4** Findings from other payroll audit procedures** undertook other special audit procedures to review the accuracy of the payroll, including planning, budgeting and payments for the period of four years (2019/2020-2022/2023). I noted that the remittances of PAYE amounting to UGX.152.306Mn exceeded the tax deductions on the payrolls. Accounting Officer contested the audit finding and explained that according to the invoices extracted from the IFMS, no over remittance I The", "I advised the Accounting Officer to  consistently charge PAYE to the same budget and account code as the underlying  payment, which in this case was allowances."]], "metadata": {"headings": [{"headings_0": {"content": "Management of the Government Salary Payroll", "page": 8, "level": 2}}], "page": 10, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "columns": ["column_0", "column_8"], "type": "table"}}, {"content": [["", "of Pay As You Earn (PAYE) was made to Uganda Revenue Authority (URA). noted the Accounting Officer\u2019s response. Nevertheless, I observed that the additional PAYE remittance pertained to deductions made on staff allowances was charged to the payroll code. I", ""], ["**2.5**", "**Review of the Entity Staff Establishment** the audit, I undertook procedures to review the completeness and relevancy of the entity establishment and noted that: Out of 225 approved positions, a total of 176 positions were filled, leaving a gap of 49 vacant positions.  b) I was not availed the approved structure for Amnesty Commission, though the above-validated staff includes those of the Commission. stretches the available staff and prevents the entity from effectively delivering its mandate and objectives. Accounting Officer explained that the Ministry will continue engaging the Ministry of Finance, Planning and Economic Development and Public Service to address the staffing gaps. During a) Understaffing The", "I advised the Accounting Officer to continue liaising with the Ministry of Public  Service, Ministry of Finance, Planning  and Economic Development and Parliament to avail the necessary wage to fill the vacant positions."]], "metadata": {"headings": [{"headings_0": {"content": "Management of the Government Salary Payroll", "page": 8, "level": 2}}], "page": 11, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "columns": ["column_0", "column_1", "column_2"], "type": "table"}}, {"content": "Other matter \nI consider it necessary to communicate the following matters other than those presented or disclosed in the financial statements: \n3.0 \nManagement of Community Service Orders by the Ministry \nThe National Community Service Act 2000 mandates the Ministry of Internal Affairs to promote community service orders as a non-custodial sentence to facilitate rehabilitation, reformation and reintegration of offenders within their communities. \nSection 3 (1) of the Community Service Act 2000 Chapter 115 provides that where a person is convicted of a minor offence, the court may make a community service order instead of sentencing that person to prison. Subsection (2) further provides that before passing a community service order, the court shall consider the offender\u2019s circumstances, character and antecedents and ask whether he or she consents to the order. \nI noted that the Directorate of Community Service has eight (08) regions across the country, each with one staff and offices in seventy-nine (79) districts, each with one officer, leaving 67 out of the 146 districts in the country without any district community service officers. \nFurther, the Directorate has only five operational vehicles, three at the Ministry headquarters and two (2) at the regional offices; thus, the six regional offices do not have vehicles. \nThese shortcomings affect the effectiveness of the community service programmes due to inadequate supervision of the district community service officers by the regional officers. \nThe Accounting Officer explained that the shortage in staffing levels and fleet capacity are due to budgetary constraints arising from little or zero budget provision. Government freeze on procurement of more fleet. There is sufficient justification for staff increase and fleet based on the reasons stated below; The directorate structure was approved in 2017 and was based on 112 districts., hence 112 district-based staff. Currently, there are 76 District Community Service Officers, leaving a staffing gap of 70 if based on one officer per district. \nThe Judiciary has recently increased the number of courts to 394 courts, with Grade One magistrates nationwide. Ideally, Community Service officers are court-based. This implies that the justice chain can\u2019t be complete without Community Service staff in the newly created courts. This has created a staffing gap of 318 Community Service officers.", "metadata": {"headings": [{"headings_0": {"content": "Management of the Government Salary Payroll", "page": 8, "level": 2}}, [{"headings_0": {"content": "Management of the Government Salary Payroll", "page": 8, "level": 2}}], [{"headings_0": {"content": "Management of the Government Salary Payroll", "page": 8, "level": 2}}], [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}], [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}], [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}], [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}], [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}], [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}], [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}], [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}]], "page": 11, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": "The Directorate operates in eight regions, with only three having motor vehicles that can facilitate supervision of the district Community Service Staff. 37 District Community Service officers lack motorcycles, which makes their work on monitoring offenders and social reintegration a challenge. The costs for the motorcycles (214) and Motor vehicles (12) based on the current staff will be 8.214 billion shillings. This excludes the wage necessary. In the last seven years, 82,653 Community service Orders have been issued and managed. (2015/16-10,975, 2016/17-12,004, 2017/18 \u2013 9893, 2018/19 \u2013 10,107, 2019/20 \u2013 11,099, 2020/21- 11,969, 2021/22 \u2013 16,606) Making an annual average of 11,808 about 18% of the current prison population. \naccording to the client charter of the Directorate of Community Service, the Directorate commits to make social inquiry reports for all eligible offenders. \nSocial inquiry reports provide courts with an offender\u2019s character and circumstances, which the court may need before sentencing. \nI noted that in the financial year 2022/2023, out of the 29,183 offenders identified as eligible for community service orders, only 13,993 (48%) social inquiry reports were prepared. Details are in the table below;", "metadata": {"headings": [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}, [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}], [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}], [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}]], "page": 12, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": [["1", "Central", "4,219", "2,884", "68%"], ["2", "Kampala Extra", "6,494", "3,043", "47%"], ["3", "Busoga", "2,646", "1,514", "57%"], ["4", "Eastern", "4,383", "1,573", "36%"], ["5", "Northern", "2,246", "1,162", "52%"], ["6", "West Nile", "1,583", "790", "50%"], ["7", "Western", "5,079", "1,959", "39%"], ["8", "Rwenzori", "2,533", "1,068", "42%"], ["**Total**", "**29,183**", "**13,993**", "**48%**", null]], "metadata": {"headings": [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}], "page": 13, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "columns": ["S/N", "Region", "Number of eligible offenders identified", "Number of social inquiry reports prepared", "Percentage of social inquiry reports prepared"], "type": "table"}}, {"content": "Without the preparation of social inquiry reports for all the eligible offenders, the judicial officers may not have adequate information about the offender to enable them consider the issuance of community service orders, which impacts the utilisation of the non-custodial sentencing option as a means of decongesting the prisons cells through remanding petty offenders. \nThe Accounting Officer explained that Social Inquiry Reports could not be prepared for all the identified offenders due to the following:", "metadata": {"headings": [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}, [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}]], "page": 13, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": "- Identification is made based on offenders\u2019/inmates\u2019 stories and willingness to accept community sentences. The story is told by the offender while in prison or the police. At this stage, identification is conducted by prison or police officers. However, upon close scrutiny of their case files, where the facts do not warrant community service, no report is made.\n- Due to transport-related challenges, some identified offenders\u2019 localities/villages could not be reached. the Directorate has serious transport challenges.\n- Some offenders cannot be traced because of the absence of a centralised offender database. The staff use details as captured on police files that sometimes make it difficult for the offender\u2019s village to be traced. This also hampers the effective preparation of reports.", "metadata": {"headings": [{"headings_0": {"content": "Management of Community Service Orders by the Ministry", "page": 11, "level": 2}}], "page": 13, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "list"}}, {"content": [["Employee costs", "0.075", "0.075"], ["Goods and services", "2.001", "7.938"], ["Property,  plant equipment and", "0.346", "0.187"], ["Total", "**2.422**", "**8.2**"]], "metadata": {"headings": [{"headings_0": {"content": "Under budgeting for domestic arrears", "page": 18, "level": 2}}], "page": 18, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "columns": ["Domestic arrear details", "As at 30 th June 2022 (UGX\u2019Bn)", "As at 30 th June 2023 (UGX \u2018Bn)"], "type": "table"}}, {"content": "Non-settlement of outstanding debts may lead to increased financial pressure in future, as unsettled debts may attract interest, penalties or even legal action. Non-settlement of debts also adversely affects the suppliers and creditors. \nThe Accounting Officer explained that MoFPED didn\u2019t provide a budget for settling domestic arrears. However, the Ministry will continue to engage MOFPED to provide a budget for arrears. \nRecommendation \nIn connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially consistent with the financial statements, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. \nManagement Responsibilities for the Financial Statements \nUnder 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 Ministry.", "metadata": {"headings": [{"headings_0": {"content": "Under budgeting for domestic arrears", "page": 18, "level": 2}}, [{"headings_0": {"content": "Under budgeting for domestic arrears", "page": 18, "level": 2}}], [{"headings_0": {"content": "Recommendation", "page": 18, "level": 2}}], [{"headings_0": {"content": "Recommendation", "page": 18, "level": 2}}], [{"headings_0": {"content": "Management Responsibilities for the Financial Statements", "page": 19, "level": 2}}], [{"headings_0": {"content": "Management Responsibilities for the Financial Statements", "page": 19, "level": 2}}]], "page": 18, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": "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 for such internal control as the Accounting Officer determines is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error. In preparing the financial statements, the Accounting Officer is responsible for assessing the Ministry\u2019s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Accounting Officer has a realistic alternative to the contrary. \nThe Accounting Officer is responsible for overseeing the Ministry\u2019s financial reporting process. \nAuditor\u2019s Responsibilities for the audit of the Financial Statements", "metadata": {"headings": [{"headings_0": {"content": "Management Responsibilities for the Financial Statements", "page": 19, "level": 2}}, [{"headings_0": {"content": "Management Responsibilities for the Financial Statements", "page": 19, "level": 2}}], [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the audit of the Financial Statements", "page": 19, "level": 2}}]], "page": 19, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": "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\u2019s 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 ISSAIs will always detect a material misstatement, when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users, taken on the basis of these financial statements. \nAs part of an audit in accordance with ISSAIs, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the audit of the Financial Statements", "page": 19, "level": 2}}, [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the audit of the Financial Statements", "page": 19, "level": 2}}]], "page": 19, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": "- Identify and assess the risks of material misstatement 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 my 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.\n- 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 Ministry\u2019s internal control.\n- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Accounting Officer.\n- Conclude on the appropriateness of Accounting Officer\u2019s 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", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the audit of the Financial Statements", "page": 19, "level": 2}}], "page": 19, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "list"}}, {"content": "the Ministry\u2019s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor\u2019s 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\u2019s report. However, future events or conditions may cause the Ministry to cease to continue as a going concern.", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the audit of the Financial Statements", "page": 19, "level": 2}}], "page": 20, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": "- 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 is in compliance with the Government of Uganda Public Financial Management laws and regulations.", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the audit of the Financial Statements", "page": 19, "level": 2}}], "page": 20, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "list"}}, {"content": "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.", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the audit of the Financial Statements", "page": 19, "level": 2}}], "page": 20, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": "I also provide the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding independence and, to communicate with the Accounting Officer all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, actions taken to eliminate threats or safeguards applied. 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\u2019s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare 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. \nOther Reporting Responsibilities \nIn accordance with Section 19 (1) of the National Audit Act (NAA), 2008, I report to you, based on my work described on the audit of Financial Statements, 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. \nReport on the Audit of Compliance with Legislation \nKampala  \n22 nd December, 2023 \nAppendices Appendix 1: Implementation of Planned Outputs Appendix 1(a): Fully implemented outputs", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the audit of the Financial Statements", "page": 19, "level": 2}}, [{"headings_0": {"content": "Other Reporting Responsibilities", "page": 20, "level": 2}}], [{"headings_0": {"content": "Other Reporting Responsibilities", "page": 20, "level": 2}}], [{"headings_0": {"content": "Report on the Audit of Compliance with Legislation", "page": 20, "level": 2}}], [{"headings_0": {"content": "Report on the Audit of Compliance with Legislation", "page": 20, "level": 2}}], [{"headings_0": {"content": "Appendices Appendix 1: Implementation of Planned Outputs Appendix 1(a): Fully implemented outputs", "page": 22, "level": 2}}]], "page": 20, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}, {"content": [["02 Security", "16071301 Permits and licenses issued", "460018 Commercial Explosives Regulation", "2.847", "5", "5"], ["01 Coordination Institutional", "16060533 Public Relations & Corporate Affairs enhanced", "000011 Communication and Public Relations", "1.443", "4", "4"], ["02 Security", "16071001 Conflict prevention and early warning mechanisms publicised", "460019 Conflict Early Warning and Response Services", "0.285", "7", "7"], ["02 Security", "16071101 Joint Anti-terrorism Task Force (JATT) coordinated", "460022 Internal Security Coordination Services", "8.400", "4", "4"], ["01 Institutional Coordination", "16060504 General Administration", "000010 Leadership and Management", "5.562", "4", "4"], ["01 Institutional Coordination", "16760212 Policy development and analysis undertake", "000036 Strategies and Project Development", "0.392", "3", "3"], ["01 Institutional Coordination", "16040120 Research and Development Undertaken", "000022 Research and Development", "0.380", "1", "1"], ["01 Institutional Coordination", "16071102 Security assessments of vital Government & private installations conducted", "460031 Vital Installations Security Services", "2.952", "3", "3"], ["01 Coordination Institutional", "16060107 Monitoring and evaluation of performance conducted", "000015 Monitoring and Evaluation", "0.789", "4", "4"], ["", "", "**Total**", "**23.05**", "**35**", "**35**"]], "metadata": {"headings": [{"headings_0": {"content": "Appendices Appendix 1: Implementation of Planned Outputs Appendix 1(a): Fully implemented outputs", "page": 22, "level": 2}}], "page": 22, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "columns": ["Sub-program", "PIAP-out", "Budget Output", "Total Output expenditure UGX \u2018Bn\u2019", "Total No activities", "Number of fully implemented activities"], "type": "table"}}, {"content": "19", "metadata": {"headings": [{"headings_0": {"content": "Appendices Appendix 1: Implementation of Planned Outputs Appendix 1(a): Fully implemented outputs", "page": 22, "level": 2}}], "page": 22, "document_name": "Ministry of Internal Affairs Report of the Auditor General, 2023", "type": "paragraph"}}], "table_of_contents": [{"content": ["List of Acronyms - ii", "REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE MINISTRY", "OF INTERNAL AFFAIRS FOR THE YEAR ENDED 30 TH JUNE 2023 - 1", "Opinion - 1", "Basis for Opinion - 1", "Key Audit Matter - 1", "  1.0 Implementation of the approved budget - 1", "  2.0 Management of the Government Salary Payroll - 5", "Other matter - 8", "  3.0 Management of Community Service Orders by the Ministry - 8", "  4.0 Management of trafficking in Persons in Uganda - 11", "  5.0 Review of Domestic Arrears - 15", "Management Responsibilities for the Financial Statements - 16", "Auditor\u2019s Responsibilities for the audit of the Financial Statements - 16", "Other Reporting Responsibilities - 17", "Report on the Audit of Compliance with Legislation - 17", "Appendices - 19", "Appendix 1: Implementation of Planned Outputs - 19", "Appendix 1(a): Fully implemented outputs - 19", "Appendix 1 (b): Partially Implemented outputs - 20"], "page": 2}]}