A comprehensive review of how central government entities manage their assets, stores, cash, and bank balances across the country reveals critical insights into the operational health of ministries, agencies, referral hospitals, and public universities. The findings, recently published in the Consolidated Annual Board of Survey Report for 2023 and available on the Ministry of Finance website as of March 26, 2024, highlight a spectrum of practices. These practices range from efficient asset management to severe inefficiencies and neglected maintenance, underscoring urgent needs for renovation and improvement. The review is mandated by the Public Finance Management Act 2015.
This second installment of the analysis of the Board of Survey report delves into the specific ministries, including Justice and Constitutional Affairs, Finance, Planning & Economic Development, Internal Affairs, Agriculture, Animal Industry and Fisheries, Lands, Housing and Urban Development, and Health. By examining the operational practices within these ministries, the report aims to identify patterns of efficiency and areas requiring significant improvement.
Ministry of Justice and Constitutional Affairs
The Ministry of Justice and Constitutional Affairs presents a relatively organized front. The asset register at the headquarters details all assets across various regions, and the fixed assets register for all regional offices is updated. The disposal of outdated assets has been effectively managed.
“Periodic and quarterly checks by independent officers to verify balance in stores are being done,” the report notes, indicating a proactive approach to inventory management. However, storage space remains inadequate, particularly in the Administrator General’s Office and the Mbarara regional office.
Ministry of Finance, Planning & Economic Development
The Ministry of Finance, Planning & Economic Development (MOFPED) demonstrates a mixed performance. Most assets are in good condition, though some require disposal. A critical issue identified is the lack of integration of subvention asset registers, such as those of the PPDA Appeals Tribunal and the Tax Appeals Tribunal (TAT), into the IFMS system.
“The Tribunal maintains an asset register in Excel, well updated though not incorporated onto the IFMS,” the report states, highlighting a gap that needs addressing. The Ministry’s stores are generally well-maintained, but some stations face space constraints.
Ministry of Internal Affairs
The Ministry of Internal Affairs shows significant operational challenges. Although many assets are in good condition, the storage facilities are severely congested and disorganized. Obsolete items are mixed with new procurements, posing risks of loss and quality compromise.
“Stores are very congested and items therein were mixed up,” the report reveals. The lack of a structured inventory management system and the absence of a dedicated inventory management officer aggravate these issues.
Recommendations and Urgent Needs
The Board’s recommendations emphasize the need for systemic changes across various ministries. For the Ministry of Justice and Constitutional Affairs, the installation of CCTV in regional offices, additional storage facilities, and the disposal of outdated items are critical. For MOFPED, integrating all asset registers into the IFMS and addressing space constraints are priority actions.
The Ministry of Internal Affairs needs immediate intervention to reorganize storage facilities, recruit inventory management officers, and ensure all assets are engraved and properly documented.
“Management should recruit an inventory management officer for proper management of assets and inventory,” the report advises for the Ministry of Internal Affairs, underscoring the necessity for professional oversight.
Ministry of Agriculture, Animal Industry, and Fisheries
The Ministry of Agriculture, Animal Industry, and Fisheries shows a blend of well-maintained and neglected assets. While most assets are in good condition and properly engraved, there are several areas of concern.
“Buildings are generally in good condition, but some still contain asbestos, and workshops at the residency side are dilapidated,” the report states, highlighting the need for modernization. Additionally, the report notes that several new laboratory and medical equipment items remain unused at the National Agricultural Research Organisation (NADEC), and some agricultural machinery at Namalere has been idle for extended periods.
A government tractor with a private number plate at Kampilingisa, unresponsive head office communications, and an incomplete water dam at Kampilingisa further underline the inefficiencies.
Ministry of Lands, Housing, and Urban Development
The Ministry of Lands, Housing, and Urban Development demonstrates organized asset management but faces space constraints and the need for updated facilities. The ministry maintains a well-reconciled and regularly updated store at its headquarters.
“The store at Surveying and Mapping in Entebbe is well-organized and has enough space, but the strong rooms in Zonal offices like Wakiso and Mukono have run out of space,” the report highlights. This situation points to the need for additional storage solutions to manage the ministry’s extensive documentation and assets.
Ministry of Education and Sports
The Ministry of Education and Sports (MoES) oversees significant government programs like Universal Primary Education (UPE) and Universal Post Primary Education and Training (UPPET). The report underscores the ministry’s commitment to quality education and sports services but identifies several asset management issues.
“The assets register is printed from the system but requires manual updates to ensure accuracy,” the report notes. It also points out the need for proper storage and disposal of obsolete items, such as an old truck at UCCT, and the importance of addressing health risks associated with asbestos iron sheets in some schools.
Key Recommendations
The Board of Survey’s recommendations stress the need for immediate and comprehensive improvements across these ministries. For the Ministry of Agriculture, this includes completing long-standing construction projects, utilizing unused new items, replacing asbestos sheets, and clearing bushy store areas.
For the Ministry of Lands, Housing, and Urban Development, the focus should be on completing the disposal process for items due for disposal, expanding storage space at the headquarters and Zonal offices, and maintaining separate storage for items pending disposal.
The Ministry of Education and Sports should engage reputable firms for asset engraving, ensure all assets are properly posted and recorded, fund ongoing projects to completion, and address health hazards in schools.
Asset Findings: Discrepancies and Double Counting
The Ministry of Health maintains a centralized asset register at its headquarters, which has been updated and submitted for upload onto the Integrated Financial Management System (IFMS). However, several discrepancies have been identified, particularly with transport equipment.
“There are vehicles donated without log books by various donors, like Global Fund, and the Ministry similarly donates to other entities but retains the log books,” the report states. This practice has led to issues of double counting, with assets being recorded by both the Ministry of Health and the receiving government entities.
Additionally, a land dispute has emerged involving Plot 2-4 Lourdel Road in Kampala, where the Ministry of Internal Affairs titled the land, which is also claimed by the Ministry of Health. This land houses the National Tuberculosis and Leprosy Project (NTLP) and the National Chemotherapy Research Institute (NCRI), highlighting the need for resolution.
Stores Findings: Organizational and Training Needs
The Ministry of Health operates several stores at its headquarters, Butabika, and Wabigalo. While the headquarters’ stores are generally well-organized and equipped with fire safety measures, other locations require improvements.
“The stores were found to be clean and well organized, but the store shelves are not labeled, making it hard to identify items easily,” the report notes about the headquarters. In contrast, the Wabigalo stores, which mainly store medical equipment, require better labeling and management training for the store’s manager.
The Butabika stores, housing medical laboratories, and cold rooms are clean and organized but also contain expired drugs that need disposal. Moreover, there are several spare parts at Wabigalo that need assessment for functionality or obsolescence.
Recommendations for Improvement
The Board’s recommendations for the Ministry of Health include several critical actions:
- Timely Updates: Ensure timely update and reconciliations of books of accounts.
- Shelf-Life Management: Monitor the shelf life of laboratory and medical supplies to control and manage inventory effectively.
- Proper Labelling: Implement proper labeling of shelves at both Wabigalo and Butabika stores to facilitate easier identification of items.
- Asset Disposal: Dispose of all items recommended for disposal, including expired drugs and obsolete spare parts.
- Avoid Double Counting: Retire all donated assets from the main asset register to prevent double-counting.
- Asset Accounting Policies: Utilize the Government of Uganda Asset Accounting Policies and Guidelines (AAPG) for proper accounting treatment of assets.
- Resolve Land Disputes: Continue dialogue with the Ministry of Internal Affairs to resolve the land dispute involving Plot 2-4 Lourdel Road.
Storage Challenges: Overcrowding and Safety Risks
The Ministry of ICT and National Guidance operates one major store at its headquarters, along with two additional containers. The store is organized but suffers from severe space limitations.
“There is inadequate storage space for stationery,” the report states, pointing to a critical issue that hampers efficient operations. Moreover, the store houses an electrical board, posing a significant fire risk, and a water pipe located in the upper left corner could potentially damage stationery if it bursts.
Additionally, the Ministry struggles with obsolete items stored at the headquarters, Civil Service College, and National Archives. The storage of items pending boarding off is also lacking, leading to further clutter and inefficiencies.
Asset Management: Data Gaps and Double Counting
The Ministry maintains a centralized asset register at the headquarters. However, there are notable gaps in the data, particularly historical asset information that has not yet been uploaded onto the system. Furthermore, the Ministry faces issues with transport equipment, including vehicles donated without log books, leading to double counting in both the Ministry’s and the receiving entities’ registers.
“The entity’s historical asset data has not yet been uploaded onto the system,” the report highlights, underscoring the need for comprehensive updates to ensure accurate asset tracking.
Recommendations for Improvement
The Board’s recommendations emphasize several critical actions:
- Fire Safety: Separate the storeroom from the electrical board to mitigate fire risks.
- Water Protection: Secure the water pipe to prevent potential damage to stationery.
- Increase Storage Space: Plan for and provide more storage space to avoid overcrowding.
- Dispose of Obsolete Items: Implement a plan for the disposal of obsolete items and unserviceable motor vehicles.
- Improve Storage for Boarding Off Items: Enhance the storage of items pending boarding off to prevent clutter.
- Update Historical Asset Data: Follow up on uploading the historical asset data onto the system for accurate records.
Ministry of East African Community Affairs
The Ministry of East African Community Affairs maintains two stores: a general store and a records store. While the general store is spacious and well-organized, the records store lacks sufficient shelving, resulting in files being dumped on the floor.
“Assets are well engraved except for new ones like scanners and television sets procured within the financial year,” the report notes, highlighting the need for consistent asset engraving practices.
Ministry of Tourism, Wildlife, and Antiquities: Need for Asset Register Updates
The Ministry of Tourism, Wildlife, and Antiquities faces challenges with outdated asset registers. The physical asset registers were unavailable during the visit, preventing comparison with the system asset register for completeness.
“The team was not availed with registers of the ministry subventions and their assets were not verified,” the report states, indicating a gap in asset verification processes.
Ministry of Kampala Capital City and Metropolitan Affairs: Shared Resources
The Ministry of Kampala Capital City and Metropolitan Affairs shares storage and asset management resources with the Office of the President. This arrangement complicates the ministry’s ability to maintain its asset records independently.
“The Ministry maintains a manual asset register in Excel, but all assets are incorporated in the Asset Register of Office of the President on IFMS,” the report notes, suggesting the need for separate registers to ensure proper accountability.
Conclusion
The Consolidated Annual Board of Survey Report for 2023 highlights significant inefficiencies in storage and asset management across various ministries. Addressing these issues through the recommended actions is crucial to ensure the effective use of public resources and the overall operational efficiency of these ministries. The findings should prompt immediate and decisive action to rectify these problems and improve the management of assets and inventories within the government.
