UGX 268B Spent on Non-Budgeted Items - Auditor General

Government entities over the past one year spent 268 billion Shillings on non-budgeted items, reads part of the newly released Auditor General report.
Auditor General John Muwanga, his deputy Keto Nyapendi Kayemba with a staff from the office of the Auditor General.

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Government entities over the past one year spent 268 billion Shillings on non-budgeted items, reads part of the newly released Auditor General's report.

Auditor General John Muwanga and his deputy Keto Nyapendi Kayemba today presented the June 2016 audit report to Speaker of Parliament Rebecca Kadaga.

The report indicates that expenditure on non-budgeted items has been on the increase in the past three years despite warnings that it impacts on the credibility of the financial statements.  

According to his 2014 audit report, 51 billion shillings was spent on non-budgeted items. The figure increased to 83 billion by June 2015 and currently stands at 168 billion Shillings.

“I was informed that the Ministry of Finance has developed a concept note to address mischarges. This is still under internal discussions and once finalised, guidelines to all accounting officers on the matter will be issued,” Muwanga says in his new report.

Muwanga advised government to further streamline budgeting processes and to enforce strict adherence to the provisions regarding reallocation of funds in order to have the mischarge practice contained.

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The Auditor General also noted that Shillings 2.3 billion was advanced by various government entities to staff personal bank accounts. However, this is a decrease from a reported figure of 12.7 billion Shillings that his 2015 audit reported.

Muwanga advised that the practice is not only contrary to accounting regulations but also exposes government funds to a risk of loss since staff may be tempted to divert such funds to personal gain.

Speaker Rebecca Kadaga reported to the Auditor General that parliament accountability committees are ensuring that his reports are acted upon immediately with a view of curbing corruption.

She noted that parliament even resolved to co-opt officials from the offices of the Inspector General of Government (IGG) and the Directorate of Public Prosecutions (DPP) on its accountability committees to speed up investigations.

Kadaga noted that when parliament reconvenes on Tuesday next week, the House will debate reports from the committee of Local Government Accounts and receive the Public Accounts Committee. (PAC)

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Accountability committees of parliament scrutinise the auditor general's annual reports and make recommendations to improve government's management of public finances.