2001年-世界发展银行全球_Uganda___Country_Financial_Accountability_Assessment_51页_3mb

Uganda Country Financial Accountability Assessment Summary

Core Content

This document presents the Country Financial Accountability Assessment (CFAA) for Uganda, conducted by the World Bank in 2000. It evaluates the financial accountability processes in both the public and private sectors and outlines recommendations for improving transparency, efficiency, and compliance in financial management. The assessment covers legal and institutional frameworks, budgeting and expenditure control, accounting and financial reporting, oversight arrangements, local government accountability, ethics and integrity, the accountancy profession, and the private sector.

Main Points and Key Information

1. Legal and Institutional Framework

• Present Framework: Uganda has a relatively well-established legal and institutional framework for public sector financial management, based on the 1995 Constitution, Public Finance Act 1964, and Treasury Accounting Instructions (Parts I and II).
• Constitutional Provisions:
  • Article 163 establishes the Office of the Auditor General (AG), who audits public accounts and reports to Parliament.
  • Article 164 mandates that Accounting Officers are accountable to Parliament for the funds in their ministry or department.
• Recommendations:
  • Finalize and present the draft Public Finance Bill to Parliament.
  • Finalize and promulgate the Draft Treasury Accounting Instructions and Financial Regulations.
  • Define the role of MFPED in local government accountability.
  • Draft constitutional changes to enhance the public accountability framework.

2. Budgeting and Expenditure Control

• Current Practice: Uganda has made progress in reforming the budget process with initiatives like Cash Budgeting, Medium-term Expenditure Framework (MTEF), and Commitment Control System (CCS).
• Challenges:
  • Budget execution remains risky due to incomplete reporting, inefficient use of funds, and lack of financial discipline.
  • There is a need to improve domestic revenue mobilization and budget transparency.
• Recommendations:
  • Improve the completeness of the budget framework by capturing all donor funds under MTEF.
  • Enhance budget execution and financial discipline.
  • Develop a strategic framework to integrate and sustain ongoing initiatives.
  • Strengthen capacity building for budgeting and expenditure control.

3. Accounting and Financial Reporting

• Current Situation: The manual accounting system is inefficient and prone to errors. The Public Accounts contain material non-reconciled balances, including the Consolidated Fund.
• Issues:
  • Inadequate transaction recording and reporting.
  • Poor maintenance of ledgers and asset registers.
  • Fiduciary risks due to lack of financial discipline and insufficient follow-up on audit findings.
  • Shortage of qualified accountants with salaries significantly lower than private sector rates.
• Recommendations:
  • Short-term: Regularize non-reconciled items, ensure timely monthly reporting, introduce quarterly consolidated financial reports, and establish a Financial Management Committee.
  • Medium-term: Improve the quality of Public Accounts, recruit and retain better-qualified staff, enforce financial discipline, and reduce overlaps between oversight bodies.
  • Long-term: Implement an Integrated Financial Management System (IFMS) and comply with International Federation of Accountants (IFAC) standards.

4. Oversight Arrangements

• Key Oversight Bodies:
  • Office of the Auditor General (OAG).
  • Public Accounts Committee (PAC).
  • Committee on Commissions, Statutory Authorities and State Enterprises (COSASE).
• Weaknesses:
  • The OAG has not issued an annual audit certificate for the last four years.
  • Auditor independence and access to public bodies are lacking.
  • Quality assurance and capacity building for oversight institutions are needed.
• Recommendations:
  • Enhance OAG independence by approving its annual budget.
  • Ensure the AG issues audit certificates in line with international standards.
  • Strengthen capacity of the PAC and COSASE with technical and financial support.
  • Clear audit backlogs and address accounting weaknesses.
  • Ensure timely follow-up on audit reports and enforce sanctions and penalties.

5. Local Governments (LGs)

• Legal Framework: The 1995 Constitution and Local Government Act 1997 provide the basis for LG financial management.
• Decentralization: LGs now manage a significant portion of public funds, but their systems and capacity are weak.
• Challenges:
  • High fiduciary risks due to poor financial management.
  • Inadequate accounting controls and reporting.
• Recommendations:
  • Rationalize and improve accounting controls for PAF and conditional grants.
  • Provide technical assistance and incentives for LGs to prepare annual audited financial reports.
  • Study staff structures and salary arrangements to attract qualified personnel.
  • Strengthen LG PACs and funding mechanisms.
  • Implement the Local Government Development Project (LGDP).

6. Ethics and Integrity

• Government Strategy: The President of Uganda launched a Strategy and Plan of Action to combat corruption and promote ethics in public office.
• Key Challenges:
  • Resource constraints hinder the implementation of the strategy.
  • Informalities in public resource management need to be addressed.
• Recommendations:
  • Mobilize resources for the implementation of the GOU Strategy Plan.
  • Enforce procedures to sanction and penalize informalities in public resource management.

7. Accountancy Profession

• Institute of Certified Public Accountants of Uganda (ICPAU):
  • Faces legal challenges in defining membership criteria.
  • Has financial weaknesses, with 70% of income from the government.
  • Only 25% of Ugandan accountants are registered members.
• Recommendations:
  • Resolve the legal wrangle on ICPAU membership.
  • Develop and implement a Strategic Plan to strengthen the capacity of ICPAU to fulfill its statutory obligations.

8. Private Sector

• Legal Framework: The private sector is regulated by outdated laws, such as the Companies Act 1964, and recent reforms in financial institutions and insurance.
• Challenges:
  • Weak corporate governance.
  • Need for judicial and administrative capacity to enforce laws.
• Recommendations:
  • Finalize and present draft Companies and Financial Institutions Bills to Parliament.
  • Develop a corporate governance model inspired by South Africa and the UK.
  • Strengthen the Judiciary and law enforcement agencies.

Conclusion

The CFAA identifies high fiduciary risks in Uganda's financial management, particularly in central and local government and the accountancy profession. It emphasizes the need for legal updates, institutional strengthening, capacity building, and technical assistance. The Development Action Plan outlines short, medium, and long-term measures to address these issues, including the implementation of the EFMP II and FAP projects. The report calls for coordinated efforts between the public and private sectors, along with international donor support, to improve financial accountability in Uganda.