The recently published Consolidated Annual Board of Survey Report for 2023 offers critical insights into the operational health of Uganda’s local governments, including 109 districts, 25 municipal councils, and 10 cities. This comprehensive review, mandated by the Public Finance Management Act of 2015, examines assets, stores, cash, bank balances, and books of accounts for the financial year ending June 30, 2023.
One of the most significant findings from the report is that much of the district land, valued at over Shs 2.1 trillion, remains unsurveyed and untitled. This leaves the land vulnerable to encroachment, particularly in areas with multiple ownership claims involving religious institutions and other foundation bodies. The report highlights the urgent need for proper land titling to protect these valuable assets. “Several pieces of land that are not titled are highly susceptible to encroachment,” the report states, underscoring the potential risks associated with unregistered land.
In the area of transport equipment, the report found numerous grounded vehicles parked at various locations, exposing them to vandalism. Additionally, many government assets and pieces of equipment were identified as lacking proper engraving, which is essential for inventory tracking and asset management. “This gap in asset management practices can lead to difficulties in asset recovery and accountability,” the report partly reads.
Regarding cash and bank balances, the report summarizes the verified balances as of June 30, 2023. It notes that Stanbic Bank, Centenary Bank, and DFCU held the largest deposit balances for the previous financial year ending June 2022. Ensuring that bank statements and cash balances are reconciled with cashbooks is crucial for financial accuracy and transparency.
The findings on inventory management reveal that the process of receiving, storing, and dispatching items remains manual. This method is time-consuming and prone to errors, the report found, highlighting the need for modernization and automation. The Board of Survey Guidelines emphasize the importance of reconciling inventory closing stocks with stock ledgers and carrying forward proper opening balances.
Recurring challenges identified in the report include the failure to implement previous Board of Survey (BoS) recommendations, non-submission of BoS reports, late reconciliations of cash and bank balances, and incomplete asset registers. These challenges have persisted over the past three financial years, indicating systemic issues that require urgent attention.
Current challenges highlighted in the report include the double counting of assets, particularly within the Ministry of Health and other receiving government entities, and hazardous risks in storage areas due to the presence of electrical boards and water pipes. Additionally, gaps in asset registers, particularly concerning biological and intangible assets, were noted.
The report offers several recommendations to address these challenges. First, assets due for disposal should be included in the disposal plans of the respective votes to prevent holding onto obsolete assets. Second, “asset registers should be regularly reviewed and updated, with disposed items removed from the registers on the Integrated Financial Management System (IFMS).” Third, “all government land should be valued to provide accurate asset assessments.” Additionally, improvements in storage spaces are needed to prevent overcrowding and to ensure that new items are stored separately from obsolete ones. Regular stock takes and updates of store records should be conducted to maintain accurate inventory tracking. Furthermore, unserviceable motor vehicles should be boarded off to free up space and resources. Lastly, all assets should be engraved and updated in the asset register before issuance to ensure proper tracking and accountability.
These recommendations aim to enhance the efficiency and effectiveness of asset management across Uganda’s local governments, addressing long-standing issues and paving the way for improved operational health.
A comprehensive analysis of the Consolidated Annual Board of Survey Report for 2023 reveals critical operational challenges and inefficiencies in various local governments, including Amolatar, Amuria, Budaka, and Bududa Districts. The findings underscore the need for significant improvements in asset management and storekeeping practices to enhance service delivery and accountability.
In Amolatar District, the survey revealed that “the asset register is not up to date, with newly acquired assets not captured.” Additionally, items recommended for disposal in previous years remain unaddressed. The stores in the district are inadequately arranged and cluttered with obsolete items, occupying valuable space. Despite maintaining stock records, these are not regularly updated. The report recommends updating the asset register, disposing of unserviceable items promptly, and ensuring timely bank reconciliations to avoid delays in the submission of survey reports.
Similarly, Amuria District faces challenges with asset management. “Most assets are not engraved, and items recommended for disposal await action from the Chief Government Valuer,” according to the report. Issues such as the incomplete surveys and titling of government land, and the lack of established administrative office blocks for newly created lower local governments, were highlighted. The stores in Amuria suffer from poor management and inadequate space, with some local government entities lacking designated store personnel.
Recommendations include gazetting independent stores, completing council chambers to address office space limitations, and ensuring proper management of government land through survey and titling.
Budaka District’s survey highlighted issues with asset engraving and the non-implementation of previous Board of Survey recommendations. Many government land pieces are not titled, making them susceptible to encroachment. Additionally, routine inspections of mechanical stores are inadequate, and there is a lack of storage space, with medical and regular items stored together. The report advises that repairable assets be fixed to enhance service delivery, and that all assets be regularly updated in their respective registers. It also stresses the need for proper storage and prompt disposal of expired drugs to ensure safety and efficiency.
Bududa District, while finding most buildings in sound condition, identified several departments with incomplete asset registers, increasing the risk of asset mismanagement. Previous recommendations from the Board of Survey 2021/2022 were not fully implemented, exacerbating the depreciation of assets. The district is urged to update its asset register, form a valuation committee to assess asset values and dispose of obsolete items promptly. Ensuring all departmental assets are valued and properly recorded in asset registers is critical for future accountability and operational efficiency.
The report emphasizes the importance of regular updates to asset registers, the disposal of obsolete items, and the segregation of new and obsolete items in storage to maintain quality and prevent losses. It also calls for proper asset engraving, regular stock takes, and updates to store records to improve traceability and accountability. The implementation of these recommendations is essential to address the identified challenges and enhance the efficiency and effectiveness of local government operations.
