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PAC Grills Auditor General Over Audit Discrepancies

The Public Accounts Committees (PAC) have raised concerns about inaccuracies and omissions in financial audits conducted by the Auditor General’s Office for the financial year ending June 30, 2023. These issues were discussed during a harmonization meeting held on November 20, 2022, in Parliament. The meeting aimed to address gaps in audit reports and ensure greater accountability in government expenditure.

The session, chaired by Hon. Muhammad Muwanga Kivumbi, Chairperson of PAC-Central, and Hon. Henry Musasizi, Minister of Finance (General Duties), brought together several PACs, including those overseeing Local Government, Central Government, and Statutory Authorities.

Key Concerns Highlighted

Incomplete Activity Reporting
Hon. Muwanga Kivumbi criticized the lack of detailed information in audit reports on government activities. For instance, the Ministry of Lands, Housing, and Urban Development reported on 10 outputs involving 75 activities valued at Shs11.03 billion but failed to indicate the total planned outputs or the financial details of unimplemented activities.

“This lack of clarity raises doubts about the transparency of the audit process and undermines the integrity of service delivery assessments,” he stated.

Ministry of Education Discrepancies
Similar shortcomings were noted in the Ministry of Education and Sports, where the audit assessed 31 outputs involving 81 activities worth Shs14.81 billion. Of these, 61 activities valued at Shs10.81 billion were only partially implemented, yet the financial details were incomplete. Additionally, Shs223.97 billion in activities were unaccounted for, raising questions about the thoroughness of the audit.

Insufficient Sampling
Under the Ministry of Education and Sports, only 4.6% of Shs322.4 billion (excluding wages) was audited, leaving Shs307.6 billion unexamined. Hon. Kivumbi urged the Auditor General to focus on high-value transactions using the Pareto principle to ensure more comprehensive and meaningful audits.

Unbudgeted and Mismanaged Expenditures
The Ministry of Agriculture was flagged for paying Shs107 billion in domestic arrears without budgetary allocation. Similarly, the Ministry of Education diverted Shs17.5 billion from planned activities to settle arrears, spending Shs28.5 billion instead of the allocated Shs11 billion.

 

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