ELEPHONE OFFICE OF THE AUDITOR GENERAL APOLLO KAGWA ROAD, General Line: +256 - 41 - 7336000 PLO K R Auditor General: +256 - 41 -7336004 Sec. P0. Box 7083, KAMPALA. xmail; info@oag.go.ug Vebsite: www.oag.go.ug THE REPUBLIC OF UGANDA FOR ANY CORRESPONDENCE ON C THIS MATTER PLEASE QUOTE NO: VEM.252/305/01/23 ... C CONFIDENTIAL 2,6S O 27th December, 2023 The Executive Director Uganda National Roads Authority P. 0. Box 28487 Kampala FINAL MANAGEMENT LETTER ON THE AUDIT OF THE FINANCIAL STATEMENTS FOR THE ALBERTINE REGIONAL SUSTAINABLE DEVELOPMENT PROJECT (ARSDP) (IDA LOAN AGREEMENT CR 54060 - UG) FOR THE YEAR ENDED 30TH JUNE, 2023 1.0 INTRODUCTION During the course of my audit of the Project Financial Statements for the year ended 30th June 2023, there were unresolved matters that I need to bring to your attention. The matters have been ranked according to the level of significance. Those considered high have been included in the annual audit report to Parliament, in accordance with my reporting responsibilities. The objective of an audit is to obtain reasonable assurance whether the financial statements are free of material misstatements due to fraud or error and express an independent opinion on the financial statements prepared in accordance with the basis of accounting described in the Financial Statements and the terms and conditions of the International Development Association (IDA) Loan Agreement, CR 54060-UG). The management letter precedes the Auditor General's report and includes all significant matters that remained unresolved arising from the audit process after discussion with Management and verification of all the information availed during the audit. This letter is not intended for further discussions/verifications but contains outstanding audit findings and my recommendations that Management should implement for better stewardship and enhanced accountability. 2.0 SCOPE AND DETERMINATION OF RESPONSIBILITY The audit was conducted in accordance with the International Standards of Supreme Audit Institutions (ISSAIs). These standards require that the audit is planned and performed to obtain reasonable assurance that, in all material respects, fair presentation is achieved in the annual financial statements. 1 VISION: "A Model Supreme Audit Institution that adds Value to Society." GiSIGN:, "To provide our stakeholders with independent audit results that promote good governence for better service delively" The audit included; * Examination, on a test basis, of evidence supporting the amounts and disclosures in the financial statements; * Assessment of the accounting principles used, and significant estimates made by Management; * Evaluation of the overall financial statement presentation; * Evaluation of the effectiveness of the internal controls; and * Examination on a test basis, of evidence supporting compliance in all material respects with the relevant laws and regulations which came to my attention and are applicable to financial matters. The matters mentioned in this letter are therefore those that were identified through tests considered necessary for the purpose of the audit and it is possible that there might be other matters and/or weaknesses that were not identified. The financial statements, maintenance of effective control measures and compliance with laws and regulations are the responsibility of the Accounting Officer. My responsibility is to express an opinion on the financial statements. Below are the significant audit findings that remained outstanding together with the Management responses and my recommendations thereof; 3.0 CATEGORISATION AND SUMMARY OF AUDIT FINDINGS 3.1 Categorisation of Findings The matters have been ranked according to the level of significance as below; No Category Description 1 High Has a significant/material impact, has a high likellhood of Significance reoccurrence, and in the opinion of the Auditor General, it requires urgent remedial action. It is a matter of high risk or high stakeholder interest. 2 Moderate Has a moderate impact, has a likelihood of reoccurrence, and in the Significance opinion of the Auditor General, it requires remedial action. It is a matter of medium risk or moderate stakeholder interest. 3 Low Has a low impact, has a remote likelihood of reoccurrence, and in the Significance opinion of the Auditor General, may not require much attention, though its remediation may add value to the entity. It is a matter of low risk or low stakeholder interest. 3.2 Summary of Findings No Title of Finding Significance Effect on Report 4.1 Overall Project Performance 4.1.1 Failure to exit from the Public Investment High Key Audit Matter Plan (PIP) 4.1.2 Status of Implementation of Project High Key Audit Matter Components 4.1.3 Disbursement performance _igh Key Audit Matter 4.2 Performance of the budget for the year 2 4.2.1 Lack of an Annual project Budget and Work High Key Audit Matter plan for the financial year 2022/2023 4.2.2 Absorption of funds High Key Audit Matter 4.3 Lack of Project Completion Report (Accounts) Low Management Letter Only The following is a detailed description of the audit findings, management responses and my recommendations thereof. 4.0 DETAILED FINDINGS 4.1 Overall Project Performance The Albertine Regional Sustainable Development Project (ARSDP) is implemented by Uganda National Roads Authority. The project is funded by a loan of SDR 94,600,000 from International Development Association. The development project objective was to improve regional and local access to infrastructure, markets and skills development in the Albertine region. The specific objective of the project was the upgrade of approximately 100 kilometres from Kyenjojo to Kabwoya of unpaved gravel Kyenjojo - Kigumba road to a paved class 11 (Bitumen) standard. The project component (UNRA) involving civil works commenced on 5th April, 2016 and project closed on 31st December 2022. I undertook procedures to confirm if the project was implemented as expected. Based on the procedures undertaken I observed the following; 4.1.1 Failure to exit the Public Investment Plan (PIP) Paragraph 4.1 of the Project Development Committee Guidelines 2016 requires that the Development Committee shall undertake an annual review of all on-going projects in the Public Investment Plan in order to; assess the performance of on-going projects, clean up the PIP of ineligible interventions especially those that are best implemented under the recurrent budget, ensure that projects that reach the end of their implementation phase exit the PIP to create fiscal space for new projects, and guide on change in project scope and phase. I reviewed the Budget execution circular issued by the PSST for the financial year 2022/2023 and established that the Albertine Regional Sustainable Development Project should have exited the Public Investment Plan by 30th June 2023. However, at the time of audit (November 2023), there was no evidence that the project had exited the PIP. This was attributed to the outstanding commitments as detailed in table 2 that UNRA had not cleared and the project exiting the PIP would result in lack of budgetary allocations to settle the outstanding commitments. 3 Implication This is not only contradicting the guidelines but also negatively affects the UNRA's ability to initiate and take on new projects in accordance with the requirements of the Project Development Committee Guidelines. Management Responses UNRA asked for an extension of time from MoFPED for one year ending Financial Year June 2024. Recommendation I advise the Accounting Officer to engage the relevant stakeholders and ensure that outstanding project payments are made to facilitate exit of the project from the PIP. 4.1.2 Status of Implementation of Project Components The project component involving civil works commenced on 5th April, 2016 and project closed on 31st December, 2022. I assessed the cumulative performance for the project activities to assess the extent to which project targets had been achieved over time. The status of implementation of the project activities by component is summarised in table 1 below; Table I: Status of imWlementation of Project Component Activities Activity contractor Amount Status Response 1.0 Civil Works 1.1 Civil Works for M/s Shengli UGX.189,803,292,228 Works Completed the Upgrading Engineering and handed over of Kyenjojo- Construction to UNRA. Kabwoya Road (Group) Co. (100km) from Ltd of Gravel to Paved Shengli (Bitumen) Oilfield, Standard and China 3Km of town roads 1.2 Additional 8Km M/s Shengli UGX.24,760,697,018 Works Completed There was Town Roads Engineering and handed over exhaustion of Construction to UNRA. disbursed funds, (Group) Co. There are late submission Ltd. of Shengli outstanding of payment Oilfield, China payable of UGX.15, certificates and 262,348,650 and the remaining USD.3, 606,697.62 allocation were Yet to be paid by not disbursed to UNRA. UNRA instead it serviced the whole project (component: 1, 2 and 3). Exchange losses led to this outstanding. 4 UNRA asked for an extension of time from MoFPED for one year ending' Financial Year June 2024 to have outstanding obligation settled. 2.0 Design Review and Construction Supervision 2.1 Design Review Comptran USD 4,592,805.00 Supervision works Consultant and Construction Engineering completed. Closure written to in Supervision and Planning report not yet February 2023 to Services Associates availed to UNRA. produce the 2.2 Direct Comptran USD 565,086 completion Procurement for Engineering Outstanding report. To date Supervision of and Planning payable of USD no response. 8Km Town Road Associates 98,036 yet to be Works paid by UNRA. The outstanding (additional payable was due works) late conclusion of the procurement of the Addenda and eventual invoicing. UNRA is holding the outstanding payment until when the consultant complies. UNRA asked for an extension of time from MoFPED for one year ending Financial Year June 2024 to have outstanding obligation settled. 3.0 HIV/AIDS M/S UGX.489,738,728.00 100% Awareness and Community implemented Prevention Health Services Promotion Consultants (COHEPCO), Uganda -J 4.0 Gender-Based BRAC Uganda UGX. 100% Late conclusion Violence/Violenc 2,058,831,335.00 implemented with of the e Against Child an outstanding procurement of (GBV/VAC) payment of the Addenda and Services UGX.510,735,643 eventual owed by UNRA. invoicing. I UNRA asked for 5 an extension of time from MoFPED for one year ending FinanCial Year June 2024 to have outstanding obligation settled. 5.0 End of project Esteem UGX.266,000,000 100% Delayed Evaluation and International implemented but conclusion of preparation of Consultants not yet paid procurement for project closure component 2 report and eventual invoicing. UNRA asked for an extension of time from MoFPED for one year ending Financial Year June 2024 to have outstanding obligation settled. 6.0 Beneficiary Gard UGX.199,390,000 100% Delayed satisfaction Development implemented but conclusion of survey Solutions not yet paid. procurement for Limited component 2 and eventual invoicing. UNRA asked for I an extension of time from MoFPED for one year ending Financial Year June 2024 to have outstanding obligations settled. 7.0 Compensation Government of UGX.28,848,225,10 193 PAPs with a UNRA asked for of Project Uganda value of an extension of Affected Persons UGX.2,381,684,640 time from are yet to be paid. MoFPED for one year ending Financial Year June 2024 to have outstanding obligations settled. Implication There is delayed project closure due to outstanding commitments. 6 Recommendation I advise the Accounting Officer to appropriately prioritize the settlement of the outstanding payments in the FY 2023/2024. I further advise UNRA to follow up the Consultant to produce the completion report and ensure that the project is closed. 4.1.3 Disbursement performance I compared the total cumulative disbursements of project funds as at 30th June 2023 against the project financing agreement and noted that the total cumulative disbursements to date were less than expected as per the project financing agreement as shown in the table below; Table 2: Summary of funding Details Expected total Actual Undisbursed Remarks disbursement disbursemen funds (USD) as per financing t as at 30th agreement June 2023 (USD) (USD) Donor funds 75,890,000 68,104,000 7,786,000 The project utilized the donor funds of USD 68,104,000 that were made available. However, the undisbursed of USD 7,786,000 was for foreign exchange losses over the project lifetime which was aggravated by the delayed utilization of the available project funds arising from delayed completion of civil works. Counterpart funding 6,890,000 4,630,000 2,260,000 Management indicated that the Undisbursed funds of (USD) 2,260,000 will be used to settle outstanding Total 10,046,000. 1 payments. Total 82,780,000 72,734,000 10,046,000 Implication The undisbursed funds resulted into project outstanding commitments which remained unpaid at the financial year end. Manaaement Response During project restructuring, UNRA 's loan amount was reduced to USD 75,890,000 from USD 95 million with the expectation that the Exchange Losses to be incurred had been exduded in the restructured amount The restructured loan amount was adequate to cover the outstanding commitments highlIghted above. However, at the final disbursement, the exchange losses were factored in leading to shortfalls. 7 UNRA has prioritized the outstanding payments in the Budget allocations to use Government of Uganda funds to offset the outstanding payments, and it is expected that these will be affected by June 2024. Recommendation I advise the Accounting Officer to prioritise the settlement of outstanding payments in the FY 2023/2024. 4.2 Performance of the budget for the year 4.2.1 Lack of an Annual project Budget and Workplan for the financial year 2022/2023 A review of financial statements revealed that the project had UGX.49,054,325,373 available for spending for the financial year 2022/2023 however, no project work plan/budget was provided for audit. Implication In the circumstances, I could not assess the annual budget performance of the project. Similarly, lack of activity work plans and budgets undermines monitoring and evaluation of the project. Management Responses The project was already in the exit phase after the end of Defects Notification Period. Therefore, the previous work plan was largely maintained with only project end activities that came in through MOUs which by that time was not yet concluded. Recommendation I advise the Accounting Officer of UNRA to always prepare project budgets/work plans clearly showing the planned activities and their related budget provisions. 4.2.2 Absorption of funds Out of the total available funds of UGX.49,054,325,373 (Received 2,449,810,267 + opening Balance 46,604,515,106), UGX.49,054,240,373 (Total expenditure UGX. 48,886,444,701 + 167,795,672 forex loss) was spent resulting into 100% absorption and an over absorption of UGX.85,000. Implication The UGX.85,000 as an over absorption is not material and could be a foreign exchange gain. Management Response There were no un-absorbed funds since all the funds were spent during the year. 4.3 Lack of Project Completion Report (Accounts) Best practice requires that at the completion of the project, the Project Manager prepares a comprehensive project completion report showing all the project activities 8 carried out and the status of the project completion. A review of last performance certificate dated 27th December, 2022 and taking over certificate dated November 1s 2022 and a discussion with management confirmed that the project was completed and handed over. Through discussion with the management, I noted that there was no project completion report prepared. Implication Without a project completion report, it was difficult to assess the performance of the activities carried out after project handover. Management Responses The project completion reports will be prepared after the contractor's submission of project closure report and final statement that are underway. Recommendation I advise the Accounting Officer to expedite preparation of a project completion report to facilitate project closure. Acknowledqement I would like to take this opportunity to express my appreciation to the Project staff for the cooperation and assistance rendered to the staff of the Office of the Auditor General during the course of the audit. John F. S Muwanga AUDITOR GENERAL 27th December, 2023 9 h TELEPHONE .OFFICE OF THE AUDITOR GENERAL APOLLO KAGVVA ROAD, General Line: -256 - 41 -7336000 PLOT 2C, Audi[or General: +256-41-7336004 Sec. PO. Box 7083, KAMPALA. m ail inforoag.go.ug W'Iebsite: wwwv.oag.go.ug THE REPUBLIC OF UGANDA FOR ANY CORRESPONDENCE ON I-IIMATTER PLEASE QUOTE NO: ........................ VFM .2.52/305/01/23 . o 27th December, 2023 - The Rt. Hon. Speaker of Parliament Parliament of Uganda Kampala REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE ALBERTINE REGIONAL SUSTAINABLE DEVELOPMENT PROJECT (ARSDP) (IDA LOAN AGREEMENT CR 54060 - UG) FOR THE YEAR ENDED 30TH JUNE 2023 In accordance with the Article 163, (4) of the Constitution of the Republic of Uganda 1995 (as amended), I forward herewith audited Financial Statements of Albertine Regional Sustainable Development Project for the year ended 30th June, 2023 John F. S. Muwanga AUDITOR GENERAL Copy to: The Hon. Minister of Works and Transport The Hon. Minister of Finance, Planning and Economic Development The Hon. Minister of Ethics and Integrity The Inspector General of Government The Permanent Secretary/Secretary to the Treasury Ministry of Finance, Planning and Economic Development. The Executive Director Uganda National Roads Authority The Country Director World Bank The Program Manager ARSDP 0N: "A Model Supreme Audit Institution that adds Value to Society. M/SSION. "To provide our stakeholders with independent audit results that promote good governence for better service delivery" OFFICE OF THE AUDITOR GENERAL THE REPUBLIC OF UGANDA REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE ALBERTINE REGIONAL SUSTAINABLE DEVELOPMENT PROJECT (ARSDP) (IDA LOAN AGREEMENT CR 54060 - UG) FOR THE YEAR ENDED 30TH JUNE 2023 OFFICE OF THE AUDITOR GENERAL UGANDA TABLE OF CONTENTS TA BLE O F CO NT ENTS ....................................................................................................ii LIST A C RO N Y M S .......................................................................................................... iv REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE ...............1 ALBERTINE REGIONAL SUSTAINABLE DEVELOPMENT PROJECT (ARSDP) (IDA LOAN AGREEMENT CR 54060 - UG) FOR THE YEAR ENDED 30TH JUNE 20223.............................1 O p in ion......................................................................................................................... Basis for O pinio n ........................................................................................................... 1 Key A udit M atters ..........................................................................................................1 1.0 Project Im plem entation .......................................................................................1 O ther Inform ation .........................................................................................................8 Management Responsibility for the Financial Statements...................................................8 Auditor's Responsibilities for the Audit of the Financial Statements.....................................8 Other Reporting Responsibilities......................................................................................9 Report on the Audit of Compliance with Legislation ........................................................10 REPORT OF THE AUDITOR GENERAL ON STATEMENT OF INCOME AND EXPENDITURE OF ALBERTINE REGIONAL SUSTAINABLE DEVELOPMENT PROJECT (ARSDP) (IDA LOAN AGREEMENT CR 54060 - UG) IMPLEMENTED BY UGANDA NATIONAL ROADS AUTHORITY FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2023......................................................11 O p in io n .......................................................................................................................1 1 Project Management's responsibility for the statement of Income and expenditure............11 A uditor's responsibility .................................................................................................11 REPORT OF THE AUDITOR GENERAL ON THE SPECIAL ACCOUNT OPERATIONS OF THE ALBERTINE REGIONAL SUSTAINABLE DEVELOPMENT PROJECT (ARSDP) (IDA LOAN AGREEMENT CR 54060 - UG) FOR THE YEAR ENDED 30TH JUNE 2023.............................12 O p in io n .......................................................................................................................12 Management Responsibility for the Special Account Statement........................................12 A uditor's Responsibility ................................................................................................12 REPORT OF THE AUDITOR GENERAL ON THE INTERNAL CONTROLS OF ALBERTINE REGIONAL SUSTAINABLE DEVELOPMENT PROJECT (ARSDP) (IDA LOAN AGREEMENT CR 54060 - UG) FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2023.................................. 13 O p in io n ....................................................................................................................... 13 M anagem ent Responsibility .......................................................................................... 13 A uditor's Responsibility ................................................................................................ 13 ii Appendices .................................................................................................................14 Appendix I: Status of implementation of Project Component Activities ............................. 14 iii LIST ACRONYMS Acronym Meaning ARSDP Albertine Regional Sustainable Development Project DA Designated Account FY Financial Year GoU Government of Uganda IDA International Development Association IESBA International Ethics Standards Board for Accountants IFMS Integrated Financial Management System MOFPED Ministry of Finance, Planning and Economic Development PSST Permanent Secretary/ Secretary to Treasury UNRA Uganda National Road Fund iv REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE ALBERTINE REGIONAL SUSTAINABLE DEVELOPMENT PROJECT (ARSDP) (IDA LOAN AGREEMENT CR 54060 - UG) FOR THE YEAR ENDED 30TH JUNE 20223 THE RT. HON. SPEAKER OF PARLIAMENT Opinion I have audited the accompanying financial statements of the Albertine Regional Sustainable Development Project (ARSDP) (IDA Loan Agreement CR 54060 - UG), which comprise the Statement of Financial Position as at 30th June 20223, Statement of Income and Expenditure and Statement of Cash Flows, together with other accompanying statements for the year then ended, and notes to the financial statements, which have been prepared on the basis of the accounting policies set out under Note 9.1 (b) to the financial statements. In my opinion, the accompanying Financial Statements of the Albertine Regional Sustainable Development Project (ARSDP) (IDA Loan Agreement CR 54060 - UG), for the year 30th June 2023 are prepared in all material respects, in accordance with the basis of Accounting described under Note 9.1 of the financial statements, and in conformity with the terms of the Financing Agreement. Basis for Opinion I conducted my audit in accordance with the International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of my report. I am independent of Project Management in accordance with the Constitution of the Republic of Uganda (1995) as amended, the National Audit Act (NAA) 2008, the International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants, together with the ethical requirements that are relevant to my audit of the financial statements in Uganda, and I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Key Audit Matters Key audit matters are those matters that, in my professional judgment, were the most significant in my audit of the financial statements of the current period. These matters were addressed in the context of my audit of the financial statements as a whole and in forming my opinion thereon, and I do not provide a separate opinion on these matters. I have determined the matter described below to be key audit matters communicated in my report. 1.0 Project Implementation The Albertine Regional Sustainable Development Project (ARSDP) is implemented by Uganda National Roads Authority. The project is funded by a loan of SDR 94,600,000 from International Development Association. The development project objective was to improve regional and local access to infrastructure, markets and skills development in the Albertine region. The specific objective of the project was the upgrade of approximately 100 kilometres from Kyenjojo to Kabwoya of unpaved gravel Kyenjojo - Kigumba road to a paved class 11 (Bitumen) standard. The project component (UNRA) involving civil works commenced on 5th April, 2016 and project closed on 31st December 2022. 1 I undertook procedures to confirm if the project was implemented as expected. Based on the procedures undertaken I observed the following; 1.1 Overall Project Performance The Albertine Regional Sustainable Development Project (ARSDP) is implemented by Uganda National Roads Authority. The project is funded by a loan of SDR 94,600,000 from International Development Association. The development project objective was to improve regional and local access to infrastructure, markets and skills development in the Albertine region. The specific objective of the project was the upgrade of approximately 100 kilometres from Kyenjojo to Kabwoya of unpaved gravel Kyenjojo - Kigumba road to a paved class 11 (Bitumen) standard. The project component (UNRA) involving civil works commenced on 5th April, 2016 and project closed on 31st December 2022. I undertook procedures to confirm if the project was implemented as expected. Based on the procedures undertaken I observed the following; 1.1.1 Failure to exit the Public Investment Plan (PIP) Paragraph 4.1 of the Project Development Committee Guidelines 2016 requires that the Development Committee shall undertake an annual review of all on-going projects in the Public Investment Plan in order to; assess the performance of on- going projects, clean up the PIP of ineligible interventions especially those that are best implemented under the recurrent budget, ensure that projects that reach the end of their implementation phase exit the PIP to create fiscal space for new projects, and guide on change in project scope and phase. I reviewed the Budget execution circular issued by the PSST for the financial year 2022/2023 and established that the Albertine Regional Sustainable Development Project should have exited the Public Investment Plan by 30th June 2023. However, at the time of audit (November 2023), there was no evidence that the project had exited the PIP. This was attributed to the outstanding commitments as detailed in table 2 that UNRA had not cleared and the project exiting the PIP would result in lack of budgetary allocations to settle the outstanding commitments. This was not only contradicting the guidelines but also negatively affects the UNRA's ability to initiate and take on new projects in accordance with the requirements of the Project Development Committee Guidelines. The Accounting Officer explaned that UNRA asked for an extension of time from MoFPED for one year ending Financial Year June 2024. Recommendation I advised the Accounting Officer to engage the relevant stakeholders and ensure that outstanding project payments are made to facilitate exit of the project from the PIP. 2 1.1.2 Status of Implementation of Project Components The project component involving civil works commenced on 5th April, 2016 and project closed on 31st December, 2022. I assessed the cumulative performance for the project activities to assess the extent to which project targets had been achieved over time. The status of implementation of the project activities by component is summarised in table 1 below; Table I: Status of implementation of Project Component Activities Activity Contractor Amount Status Response 1.0 Civil Works 1.1 Civil Works for M/s Shengli UGX.189,803,292,228 Works Completed the Upgrading Engineering and handed over of Kyenjojo- Construction to UNRA. Kabwoya Road (Group) Co. (100km) from Ltd of Gravel to Paved Shengli (Bitumen) Oilfield, Standard and China 3Km of town roads 1.2 Additional 8Km M/s Shengli UGX.24,760,697,018 Works Completed There was Town Roads Engineering and handed over exhaustion of Construction to UNRA. disbursed (Group) Co. There are funds, late Ltd. of Shengli outstanding submission of Oilfield, China payable of UGX.15, payment 262,348,650 and certificates and USD.3, 606,697.62 the remaining Yet to be paid by allocation were UNRA. not disbursed to UNRA instead it serviced the whole project (component: 1, 2 and 3). Exchange losses led to this outstanding. UNRA asked for an extension of time from MoFPED for one year ending Financial Year June 2024 to have outstanding obligation settled. 2.0 Design Review and Construction Supervision 2.1 Design Review Comptran USD 4,592,805.00 Supervision works Consultant and Construction Engineering completed. Closure written to in Supervision Planning report not yet February 2023 3 Services Associates availed to UNRA. to produce the completion Outstanding report. To date 2.2 Direct Comptran USD 565,086 payable of USD no response. Procurement for Engineering 98,036 yet to be Supervision of and Planning paid by UNRA. The 8Km Town Road Associates outstanding Works payable was (additional due late works) conclusion of the procurement of the Addenda and eventual invoicing. UNRA is holding the outstanding payment until when the consultant complies. UNRA asked for an extension of time from MoFPED for one year ending Financial Year June 2024 to have outstanding obligation settled. 3.0 HIV/AIDS M/S UGX.489,738,728.00 100% Awareness and Community implemented Prevention Health Services Promotion Consultants (COHEPCO), Uganda 4.0 Gender-Based BRAC Uganda UGX. 100% Late conclusion Violence/Violen 2,058,831,335.00 implemented with of the ce Against an outstanding procurement of Child payment of the Addenda (GBV/VAC) UGX.510,735,643 and eventual Services owed by UNRA. invoicing. UNRA asked for an extension of time from MoFPED for one year ending Financial Year June 2024 to have outstanding obligation settled. 4 5.0 End of project Esteem UGX.266,000,000 100% Delayed Evaluation and International implemented but conclusion of preparation of Consultants not yet paid procurement project closure for component report 2 and eventual invoicing. UNRA asked*for an extension of time from MoFPED for one year ending Financial Year June 2024 to have outstanding obligation settled. 6.0 Beneficiary Gard UGX.199,390,000 100% Delayed satisfaction Development implemented but conclusion of survey Solutions not yet paid. procurement Limited for component 2 and eventual invoicing. UNRA asked for an extension of time from MoFPED for one year ending Financial Year June 2024 to have outstanding obligations settled. 7.0 Compensation Government UGX.28,848,225,10 193 PAPs with a UNRA asked for of Project of Uganda value of an extension of Affected Persons UGX.2,381,684,640 time from are yet to be paid. MoFPED for one year ending Financial Year June 2024 to have outstanding obligations settled. There was delayed project closure due to outstanding commitments. Recommendation I advised the Accounting Officer to appropriately prioritize the settlement of the outstanding payments in the FY 2023/2024. I further advised UNRA to follow up the Consultant to produce the completion report and ensure that the project is closed. 5 1.1.3 Disbursement performance I compared the total cumulative disbursements of project funds as at 30th June 2023 against the project financing agreement and noted that the total cumulative disbursements to date were less than expected as per the project financing agreement as shown in the table below; Table 2: SummarEl of funding Details Expected total Actual Undisbursed Remarks disbursement as disbursement as funds (USD) per financing at 30th June 2023 agreement (USD) (USD) Donor funds 75,890,000 68,104,000 7,786,000 The project utilized the donor funds of USD 68,104,000 that were made available. However, the undisbursed of USD 7,786,000 was for foreign exchange losses over the project lifetime which was aggravated by the delayed utilization of the available project funds arising from delayed completion of civil works. Counterpart 6,890,000 -4,630,000 2,260,000 Management funding indicated that the Undisbursed funds of (USD) 2,260,000 will be used to settle outstanding payments. Total 82,780,000 72,734,000 10,046,000 1 The undisbursed funds resulted into project outstanding commitments which remained unpaid at the financial year end. The Accounting officer explained that during project restructuring, UNRA's loan amount was reduced to USD 75,890,000 from USD 95 million with the expectation that the Exchange Losses to be incurred had been excluded in the restructured amount. The restructured loan amount was adequate to cover the outstanding commitments highlighted above. However, at the final disbursement, the exchange losses were factored in leading to shortfalls. UNRA has prioritized the outstanding payments in the Budget allocations to use Government of Uganda funds to offset the outstanding payments, and it is expected that these will be affected by June 2024. Recommendation I advised the Accounting Officer to prioritise the settlement of outstanding payments in the FY 2023/2024. 6 1.2 Performance of the budget for the year 1.2.1 Lack of an Annual project Budget and Workplan for the financial year 2022/2023 A review of financial statements revealed that the project had UGX.49,054,325,373 available for spending for the financial year 2022/2023 however, no project work plan/budget was provided for audit. In the circumstances, I could not assess the annual budget performance of the project. Similarly, lack of activity work plans and budgets undermines monitoring and evaluation of the project. The Accounting Officer explained that the project was already in the exit phase after the end of Defects Notification Period. Therefore, the previous work plan was largely maintained with only project end activities that came in through MOUs which by that time was not yet concluded. Recommendation I advised the Accounting Officer of UNRA to always prepare project budgets/work plans clearly showing the planned activities and their related budget provisions. 1.2.2 Absorption of funds Out of the total available funds of UGX.49,054,325,373 (Received 2,449,810,267 + opening Balance 46,604,515,106), UGX.49,054,240,373 (Total expenditure UGX. 48,886,444,701 + 167,795,672 forex loss) was spent resulting into 100% absorption and over absorption of UGX.85,000. 1.3 Lack of Project Completion Report (Accounts) Best practice requires that at the completion of the project, the Project Manager prepares a comprehensive project completion report showing all the project activities carried out and the status of the project completion. A review of last performance certificate dated 27th December, 2022 and taking over certificate dated November 1st 2022 and a discussion with management confirmed that the project was completed and handed over. Through discussion with the management, I noted that there was no project completion report prepared. Without a project completion report, it was difficult to assess the performance of the activities carried out after project handover. The Accounting Officer explained that the project completion reports will be prepared after the contractor's submission of project closure report and final statement that are underway. Recommendation I advised the Accounting Officer to expedite preparation of a project completion report to facilitate project closure. 7 Other Information Management is responsible for the other information. The other information comprises the Project Information, the Project Management report, the statement of management responsibilities and other supplementary information. The other information does not include the financial statements and my auditors' report thereon. My opinion on the financial statements does not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon. In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially consistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. Management Responsibility for the Financial Statements The Project Management is also responsible for the preparation of financial statements in accordance with the requirements of the Public Finance Management Act 2015, and the Project Funding Guidelines, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the project's ability to continue delivering its mandate, disclosing, as applicable, matters related to affecting the delivery of the mandate of the , and using the Project Funding Guidelines, unless management has a realistic alternative to the contrary. Management is responsible for overseeing the Project's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISSAIs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISSAIs, I exercise professional judgment and maintain professional scepticism throughout the audit. I also; * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the project's internal control. 8 * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to,events or conditions.that may cast significant doubt on the project's ability to deliver its mandate. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor's report. However, future events or conditions may cause the Albertine Regional Sustainable Development Project (ARSDP) (IDA Loan Agreement CR 54060 - UG) to fail to deliver its mandate. * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. I communicate with Management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. I also provide Management with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with him/her all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. From the matters communicated with Management, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Other Reporting Responsibilities In accordance with Section 19 (1) of the National Audit Act (NAA), 2008, I report to you, based on my work described on the audit of Financial Statements, that the activities, financial transactions and information reflected in the financial statements that have come to my notice during the audit, are in all material respects, in compliance with the authorities which govern them. 9 Report on the Audit of Compliance with Legislation In accordance with Section 19 of the NAA 2008, I have a responsibility to report material findings on the compliance of the Project Management with specific matters in key legislations. I performed procedures primarily to identify findings but not to gather evidence to express assurance. There were no material compliance audit findings during the financial year 2022/2023. John F.S. Muwanga AUDITOR GENERAL 27th December, 2023. 10 REPORT OF THE AUDITOR GENERAL ON STATEMENT OF INCOME AND EXPENDITURE OF ALBERTINE REGIONAL SUSTAINABLE DEVELOPMENT PROJECT (ARSDP) (IDA LOAN AGREEMENT CR 54060 - UG) IMPLEMENTED BY UGANDA NATIONAL ROADS AUTHORITY FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2023 Opinion I have audited the Statements of Income and Expenditure for Albertine Regional Sustainable Development Project (ARSDP) (IDA Loan Agreement CR 54060 - UG) for the year ended 30th June, 2023. In my opinion, the expenditures reimbursed on the basis of Statement of Receipt and Expenditure are eligible to Bank financing and Generally Accepted Accounting Principles, and the expenditures have been properly reflected on the Periodic Financial Statements of Albertine Regional Sustainable Development Project (ARSDP) (IDA Loan Agreement CR 54060 - UG) for the year ended 30th June, 2023. Project Management's responsibility for the statement of Income and expenditure UNRA is responsible for the preparation and fair presentation of the Statement of Income and Expendituret in accordance with the requirements of IDA and the project agreement. This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud and error; selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. Auditor's responsibility My responsibility is to express an opinion on the Statements of Income and Expenditure based on my audit. I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs) and the requirements of IDA. The standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Statement of Receipts and Payments are free from material misstatements. I believe that the audit evidence I have obtained provides a reasonable basis for my opinion. John F.S. Muwanga AUDITOR GENERAL 27th December, 2023 11 REPORT OF THE AUDITOR GENERAL ON THE SPECIAL ACCOUNT OPERATIONS OF THE ALBERTINE REGIONAL SUSTAINABLE DEVELOPMENT PROJECT (ARSDP) (IDA LOAN AGREEMENT CR 54060 - UG) FOR THE YEAR ENDED 30TH JUNE 2023 THE RT. HON. SPEAKER OF PARLIAMENT Opinion I have audited the Special Account Statement of the Albertine Regional Sustainable Development Project (ARSDP) (IDA Loan Agreement CR 54060 - UG) for the year ended 30th June 2023. In my opinion, Project Management complied in all material respects, with IDA rules and procedures and the Special Account Statement for Albertine Regional Sustainable Development Project (ARSDP) (IDA Loan Agreement CR 54060 - UG) presents fairly in all material respects, the accounts transactions and the closing balances as at 30th June 2023. Manaqement Responsibility for the Special Account Statement Project management is responsible for the preparation of the special account statement and their fair presentation in accordance with the requirements for the Government of Uganda regulations, and loan (IDA) guidelines. Management is also responsible for designing and implementing internal controls relevant to the preparation of the special account statement that is free from material misrepresentation, whether due to fraud or error and selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. Auditor's Responsibility My responsibility is to express an opinion on the designated account statements based on my audit. I conducted my audit in accordance with the International Standards of Supreme Audit Institutions (ISSAIs) and the IDA guidelines on auditing. Those standards and the financing guidelines require that I plan and perform the audit to obtain reasonable assurance about whether the special account statement is free from material misstatement. I believe that the audit evidence I have obtained provides a reasonable basis for my opinion. John F. S. Muwanga AUDITOR GENERAL 27th December, 2023 12 REPORT OF THE AUDITOR GENERAL ON THE INTERNAL CONTROLS OF ALBERTINE REGIONAL SUSTAINABLE DEVELOPMENT PROJECT (ARSDP) (IDA LOAN AGREEMENT CR 54060 - UG) FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2023 Opinion I have audited the financial statements of Albertine Regional Sustainable Development Project (ARSDP) (IDA Loan Agreement CR 54060 - UG) for the year ended 30th June, 2023 and reviewed the internal control procedures relevant to generation of accounting information presented in the financial statements, and those relevant to control over project finances and the safeguard of its assets. I obtained all the information and explanation I considered necessary for the audit. In my opinion, Project Management maintained an adequate internal control system for the preparation of reliable financial statements, control over finances and safeguard of the projects assets during the year ended 30th June 2023. Management Responsibility Management is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgment are required to assess the expected benefits and related costs of internal control structure policies and procedures. Auditor's Responsibility My examination was made in accordance with ISSAIs and accordingly included such tests of the accounting records, verification of assets and liabilities and such other auditing procedures I considered necessary in the circumstances. For the purpose of this report, I have classified the significant internal control structure policies and procedures in the following categories: - * Control over preparation of withdrawal applications for funds from the project account * Bank and cash purchases and payments, * Monitoring, evaluation and reporting. For all the internal control structure categories listed above, I obtained an understanding of the design of the relevant policies and procedures and whether they have been placed in operation and I assessed control risk. John F.S. Muwanga AUDITOR GENERAL 27th December, 2023 13 ;’〔‘! ‘井”· THE WORLD BANK IBRD -IDA I WORLD BANKGROUP Ion' I Mn ALBERTINE REGION SUSTAIBALE DEVELOPMENT PROJECT Implemented by: Uganda National Roads Authority (UNRA) With support from: INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA LOAN AGREEMENT CR 54060-UG) REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 Audited by: OAG ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 TABLE OF CONTENTS CONTENTS PAGE ACRONYMS / ABBREVIATIONS .......................................................................................... 2 1.0 BACKGROUND INFORMATION ................................................................................. 3 2.0 MANAGEMENT INFORMATION ................................................................................ 5 3.0 MANAGEMENT ASSERTIONS ON THE FINANCIAL STATEMENTS.......................6 4.0 PERFORMANCE HIGHLIGHTS FOR THE YEAR ENDED 30 JUNE 2020..................7 6.0 STATEMENT OF RECEIPTS ANDPAYMENTS ........................................................ 11 7.0 STATEMENT OF FUND BALANCES .............................................................12 8.0 STATEMENT OF INTERNATIONAL DEVELOPMENT ASSOCIATION SPECIAL ............13 ACCOUNT 9.0 SIGNIFICANT ACCOUNTING POLICIES ................................................................. 14 9.0 NOTES TO THE FINANCIAL STATEMENTS............................................................16 APPENDICIES........................................................................................19-29 1 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 ACRONYMS/ ABBREVIATIONS AIDS - Acquired Immune Deficiency Syndrome ARSDP - Albertine Regional Sustainable Development Project BOU - Bank of Uganda DLP - Defects Liability Period GOU - Government of Uganda HIV - Human Immune- Deficiency Virus IAS - International Accounting Standards IDA - International Development Association IFAC - International Federation of Accountants IFMS - Integrated Financial Management Systems IFRS - International Financial Reporting Standards IP - Implementing Partner NEMA - National Environment Management Authority OAG - Office of the Auditor General PAPs - Project Affected Persons PAYE - Pay as You Earn PFSs - Project Financial Statements POM - Project Operations Manual PSC - Project Steering Committee RAP - Resettlement Action Plan ROW - Right of Way UGX - Uganda Shillings UNRA - Uganda National Roads Authority USD - United States Dollars W/A - Withdrawal Application WB - World Bank 2 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 1.0 BACKGROUND INFORMATION 1.1 INTRODUCTION The Financing Agreement for Albertine Region Sustainable Development Project (ARSDP) was entered into on 24th August 2015 between the Republic of Uganda ("Recipient") and International Development Association ("Association"). The Association agreed to extend to the Recipient, on the terms and conditions a credit in an amount equivalent to Ninety-four million six hundred thousand special drawing rights (SDR 94,600,000) (variously, "Credit", and: Financing"), to assist in financing the Project described whose details are as below ("Project"). Article Ill of the agreement states that the Project will be in parts under different implementing agencies of the recipient. Part 1 of the Project through Uganda National Roads Authority (UNRA); part 2 of the Project through the Ministry of Lands, Housing and Urban Development (MLHUD); and part 3 of the Project through the Ministry of Education and sports (MoES) all in accordance with the provisions of article IV of the General conditions. The objective of the project is to improve regional connectivity and local access to infrastructure, markets and skills development in the Albertine region. 1.2 PROJECT OBJECTIVES The audit deals with Part 1 Component of the Project. This Project component is implemented by UNRA and is referred to as ARSDP-UNRA. The ARSDP-UNRA involves: a) The upgrading of an appropriate 100 kilometers of the unpaved gravel road to a paved class II (bitumen) stamdard from Kyenjojo to Kabwoya. The contract for upgrading of 100km road between Kyenjojo and Kabwoya was signed with Shengli Engineering Construction Company of Shengli the Oil Field. The supervision contract was signed with Comptran Engineering and Planning Associates (Ghana). b) Strengthening the capacity of UNRA for activities under part 1 (a) above, all through the provision of technical advisiory services non-consulting services, training operating costs and acquisition of goods for the purpose. 3 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 The Project component is implemented by Uganda National Roads Authority (UNRA). The project closure date was extended from July 31 2019 as earlier planned to 31st December 2022. 1.3 COMMENCEMENT OF WORKS CONTRACT AND DURATION The project commenced on 5th April, 2016. The original project duration (construction supervision phase) was 36 months, ending on 4th April 2019. As at end of the 30th June 2022, an interim Extension of Time (EoT) of 89 days has been agreed upon by UNRA for effect of abnormal rainfall within the period from April 2016 to February 2018. This interim EoT takes the project completion date to 3rd July 2019. Time elapsed since commencement of the project to the end of the reporting month is 1182 days, representing 99% of the current extended project completion period. 1.4 Possession of site and land acquisition The Contractor was granted site possession for the entire road length of 100.4km by UNRA, the last section from km0+000 to km30+000 having been granted on 14th September 2018. 1.5 Land acquisition Compensation for PAPs in ROW on the entire completed road Section (Km 100.4) stands at 96.7%. The remaining 3.27% is represented by one hundred ninety three (193) PAPs who still have unresolved issues like court cases, family disputes and some PAPs rejected assessment for the title interest. A table below highlights the status of PAPs. Road Project Project Affected Persons Un paid PAPs au s aing Kyenjojo-Kabwoya No. of PAPs Valued Valuation Amount No. of PAPs paid Amount paid No of PAPs Un paid amunt 1 5,908 28,848,225,150 5,715 26,516,071,950 193 2,332,153,200 4 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 2.0 MANAGEMENT INFORMATION 2.1 PRINCIPAL PLACE OF BUSINESS Plot 3-5 New port Bell Road, Nakawa Nakawa Business Park P.O. Box 28487 Kampala - Uganda 2.2 MANAGEMENT PERSONNEL INVOLVED Mrs. Edna Rugumayo - Director corporate services Eng. Samuel Muhoozi - Director Roads and Bridges Development Mr. Kwesiga Brazza - Head Finance and Accounts Eng. Alex Otim - Project Co-ordinator/Project Manager Eng. Dan Iga - Project Engineer Ms. Betty Namatovu - Project Accountant Ms. Juliette Oyellah - Head Land Acquisition 2.3 BANKERS Bank of Uganda P.O. Box 7120 Kampala 2.4 AUDITORS The auditor for the project is the Office of the Auditor General (OAG) in accordance with its constitutional mandate. 5 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 3.0 MANAGEMENT ASSERTIONS ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 This section presents UNRA management's confirmation of its responsibilities under the IDA Loan Agreement CR-54060 - UG for information in the financial statements and information provided during the course of audit. UNRA management is responsible for preparing the financial statements for each financial year which give a true and fair view of the state of affairs of the Project as at the end of the financial year. The Project management is required to ensure the Project keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the Project. They are also responsible for safeguarding the assets of the Project and are ultimately responsible for the internal controls. Standards and systems of internal control are designed and implemented by management to provide reasonable assurance as to the integrity and reliability of the financial statements and to adequately safeguard, verify and maintain accountability of the Project's assets. Appropriate accounting policies supported by reasonable and prudent judgements and estimates, are applied on a consistent basis. These systems and controls include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties. The Project management accepts the responsibility for the Financial Statements which have been prepared using appropriate accounting policies supported by reasonable and prudent judgment and estimates, and in conformity with the World Bank guidelines and the Public Financial Management Act, 2015. The Directors are of the view that the Financial Statements give a true and fair view of the state of the financial affairs of the Project as at 30 June 2023 and of its operating results for the year then ended. The Directors further confirm the accuracy and completeness of the accounting records maintained by the Project, which have been relied upon in the preparation of the Financial Statements as well as on the adequacy of the systems of internal financial controls. The Project management asserts that the Project funds have been expended in accordance with the intended purpose specified in the loan agreement with the IDA. The financial statements were approved by UNRA project management on ........................and signed on its behalf by Executive Director Ag. Director Corporate Services Date: - -- - - - - - Date. --------- 6 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 4.0 PERFORMANCE HIGHLIGHTS FOR THE YEAR ENDED 30 JUNE 2023 4.1 PROJECT IMPLEMENTATION STATUS The Uganda National Roads Authority (UNRA) is responsible for implementing the Albertine Region Sustainable Development Project component 1 - UNRA; on behalf of the Government of Uganda who is the Borrower identified in the IDA Financing Agreement. In this section, management of UNRA reports on the progress of the project activities. 4.1.1 PROJECT COSTS AND FINANCING The total financing to the project is to the tune of USD 153.89 including USD 145 from IDA alone. Table 3-1 gives details of project financing by component. Table 3-1 Project Costs and Financing AgMne IDA(SR IDA(US$ GoU TotalCost IDA (SOR IDA GoU Total Cost IDA(S0R IDA (US$ GoU Total Cost million) million) (US$ (US$ million) (US$ (US (US$ million) million) (US$ (US$ million) million) million) million) million) million) million) 1. Regioal UNRA Access and 62.00 95 6.89 10189 5900 90.88 6.89 97.71 49.510 75.89 6.89 82.78 Connectivity (Cateory 1) 2. Local Access, MHUD 16,30 25 0 25 18.16 27.56 0 27.56 22.775 34.91 0 34.91 Planning and (Category 2) Development 3. Skills MoES Access and (Category 3) 9.78 15 2 17 9.78 14.33 2 16.33 12,775 19.58 2 21.58 Upgrading MoES (Category 4) 6.52 10 0 10 7.66 12.23 1123 9.540 14.62 14.62 Total Costs Tad iCins 94.60 145 &89 15189 94.60 145 8.89 153.89 94.60 145 8.89 153.89 and Financing 7 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 4.2 Project funding status The table below summarizes the disbursements as at 30th June 2023 In accordance to the restructured loan amount. Project: Regional Access and Connectivity ARSDP-UNRA IDA (USD million) GOU (USD million) Total(USD million) Total expected funding 75.89 6.89 82.78 Disbursements to 30th June 2023 68.1 4.63 72.73 Percentage of disbursements 89.74% 67.20% 87.86% 4.3 Physical Progress The main road (100.4km) and 3km town roads were substantially completed on September 14, 2021 and October 30, 2021 respectively. Works on the additional 8Km town roads has been substantially completed. A summary of Physical Work Progress, by category, is presented in Table 2. Table 2: Summary of Physical Progress Upgrading of Town Main Road Roads (100.4Km) 3Km 8Km Cumulative Planned Physical 100% 100% 100% Progress: Cumulative Actual Physical 100% 100% 100% Progress: Cumulative Slippage: 0.0% 0.0% 0.0% Monitoring of Snag list for Main Road (100.4km) The main road of Kyenjojo - Kabwoya - Kagadi (100.4 km long) was substantially completed on 14 September 2021 and since then the road has been under the defect liability period of one year ending on 13 September 2022. Joint inspection by the Contractor, Consultant and UNRA have been carried out every quarter and a report on monitoring the progress of snag list is updated at the end of every quarter. In summary, 75% of main road DLP has elapsed and the progress achieved in addressing the snag list is estimated at over 83%. 4.4 Progress Report Project Name: Civil Works for the Upgrading of Kyenjojo-Kabwoya Road (1 00km) from Gravel to Paved (Bitumen) Standard. Procurement Ref. No.: UNRA/WORKS/2013-14/00002/01/01 Financed by: The World Bank/Government of Uganda 8 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30t June 2023 Employer/Implementing Agency: Uganda National Roads Authority (UNRA) Contractor: M/s Shengli Engineering Construction (Group) Co. Ltd. of Shengli Oilfield, China Consultant (Design Review and M/s Comptran Engineering & Planning Associates, Construction Supervision): Ghana. Project Districts: Three (3): Kyenjojo, Kagadi and Kikuube. Main Road (100Km + 3Km Town Roads) -Contract Signing Date: April 24, 2015 Commencement Date: April 05, 2016 Original Time for Completion: 36 months (1095 days) Original Completion Date: April 04, 2019 Extension of Time (EOT): 941 Days Revised Completion Date: October 31, 2021 (2,036 days) Substantial Completion (100.4km): September 14, 2021 Substantial Completion (3km Town October 30, 2021 Roads): Change Order Signing Date: October 25, 2021 Commencement Date: November 01, 2021 Time for Completion: Eight (8) Months Completion Date: June 30, 2022 Change Order Amount: UGX 24,760,697,018.00 Total Works Contract Amount: UGX 214,563,989,426.00 (inclusive of Change Order No. 01 amount of UGX 24,760,697,018.00) Contract Signing Date: April 30, 2015 Design Review Commencement Date: August 31, 2015 Design Review Completion Date: March 22, 2017 Construction Supervision Commencement: April 05, 2016 Original End of CS Services Date: April 04, 2019 Revised End of CS Services Date: October 31, 2021 Original Consultancy Contract Amount USD 3,079,482.00 (ncl. Design Review): Revised Consultancy Contract Amount: USD 4,592,805.00 (inclusive of signed Addendum No. 01, 02 and 03) Direct Procurement for Supervision of 8Km Town Road Works Commencement of Services: November 01, 2021 End of Construction Supervision Services: June 30, 2022 End of Defects Liability Period December 31, 2022 Total Direct Procurement Amount: USD 565,086.00 Nominated Service Provider (NSP): M/s Community Health Promotion Consultants 9 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 (COHEPCO), Uganda Commencement of Services: November 07, 2016 End of Services: January 06, 2020; Since then, the services have been rendered by Individual Specialists nominated by UNRA. Services Contract Amount: Original: UGX 447,605,516.00 Revised: UGX 489,738,728.00 Nominated Service Provider (NSP): BRAC Uganda Commencement of Services: December 18, 2017 Revised Contract Completion Date December 31, 2022. Services Contract Amount: Original: UGX 1,318,210,000.00 Revised: UGX 2,058,831,335.00 10 '� cv и и � и�t о cv о о о м о и л а с� и м м о cv �t м о о о о м д� о � С� о� г� �. оо .- и оо v^ о о о м о м �.- Z N и .= г° й о й v д� о й й г� с; г� св Q ��( и со м т ш м r- � r. .- м в> а� о о о .- � � � s � и й со �о сч и и с� и о о о м • � ш о� cv с� ао г� �t м с� о о h� et о ,..� N и о о г� �л r: вi v й й е� er � а. а о� аГо о rn � й ш й т °0 er т ' :�j 2 и� °� е`� й й� с° м о v о о°°о � о ». а _ ^ О Н N N �!' г- � 00 tG .«. t� � � � � и L Q и Е �� ш rn а м со оо .- �r м v � cv оо r. rn � . Q = г с� � и и .- сд м оо v и r. er er с р N G •- � м о и � а0 (О N �ff м � � � tЛ м м и �- о ct� с� и с� о r. Е ш с� � м м о �r со � ш и � и и �, � о о о г� w cfl и с� сл й �ё � ,-� о ш� со .- v м.- о о � о г• � а ш N и т о ct cr •- о et z Q Z N М N � и �, .- е- � а ш w � т � " а � � � � > � � с� � � cv м v о/� � ш О � N�i N N �i Г Г i^L г о оо о о о Г Г � � � � и ш р 1- � N � N а ш г 3 О � ш м � а п � с � ш � � � � Х о о > С� о ш р� м � � п � L шс°г�� QN °i, }' и : � т� � ш�°, � ° � rn � � g _ а с� � а й z�, О г й �, _ ` с� �¢ й ссв L ?-� °с' 3 о�i О U л и � ш � Z� о Ом _� д � � �s >'� � s ш рГ.� гш а � � � � �-° °�' ° а� ` ш С� ° ш ш Z � р� ы й и с>_ �� п�,� "-. и'� � шш � с и й о�'' = о° L.i � й ш n- � а 4 ��� �`� с а�� и. с а� д� � �z° � й� д ш �.� а'т� y`о r � � � й w�� к vз � а ev т � � � �"� Е и� N �в д у и= � п?- � п � � � ш �, � о с = .. с, � с � � с � � _ _ � �_ т�о � � �v р,_, о �> о у с. � о �v � � о а� и Q� i� � 5 I- С7 О t- ш U с� 1- О ш .- и. ti и. t- 0 � ш � г и ••• � r- .- о0 со и v cV с0 -о и ч_ � о•� aNO � °о °м r°. о о ° to � � и сиv аCOо � о о � ги. � � м и � r- .- и r- с� � м и � О и= �(ор ti N еиF биi О О •"= ш и �r � � и cv r.� v_ � со с г 07 � О (О et � � д� Q ш � � � с а � ш 'и } -о ш с л 1 '� i=- о� с°� й т а�о о°о о�о й о°о о � и о й о м й N �v й ' Ш и � - ~ и й� т й � � с°'v v � Ш й м � � оо ш сч с� и •г � cv и <- � .- .- : т � и а . �� � L Z О ш • ; �. м ^ �r с� со сс : о р о t о о о о ; : U ш � и о й iл й о ;� .✓ и к � м й й � о . д ш N� со оо et �!' � � � � ° � � � � � � � � � � � J т �' � �' �' � : Q � а с г � F � с� _ и � � � а и й� � й аоо аоо Z � о и -� и а � N � N � � � � w О о � � и U � N � � д' �' � � � � -° Ш ш � � � п � � N � г о а. � � �.,� � cQa ш о ш � т а ш ¢ 3 , • � � � р � . � > � о О z � : .� Ш� м �Л Г : о � � -t, ш г- : � �о� г � � о т�� J � � :; � й г ш т � й с • c�i � � С � � L о Q Ci и�.с г � v, � .и :ш� �� ` � с с с с Q °� ° ш � � '' � г и. г, т � � о�- -� о � � о о к� п� ш`о Е Z °� � � а� � �' ji = м tб С ;«� � n � � � � � о � � R с � •а c�i сиi � и ш .... ш •� � ��° о ы n, о с т s � �й � г � ta- и а � л��� О ш � �,д д сыs сса � с с т•°' � и и � сf°ц сса т ш.-с.о.. о � � д ссп � � N Q�� � и. т т т� О t- � и� т т т � ш J л т � Q сЧ ^ ао оо г� и v о о т с� а с� cv "-' г сч = о о о с� �t о м о о с� оо о � � о о о о0 Г и о а0 м 1� с0 о 1+ � N t� сч ri со о й о�t ��f й й �t � 1- �- Х �- Р м v � cfl rn о о с� г- о t/) с� �ry и и о и с� оо ао �. er ао м с� и � �°у � �r ef c�i г� � со r� й й о ао и и й й ° rи. м� н г��. �° � о о Q О � � о й м й � v Г � � . г Г Р с О � � •и ш � � � г� ш г су л Г Р м Ср с0 00 о0 Р о v cD о ' F= о� со ео о ш аэ г� cr оо оо ао rn ао . � �у С ui ui ai �ri со �t c�i оо со со ai cfl V� N N ор (�. с{� аэ Г м Ор �t м OD и ш `т � о о и со и с� с� м т с� v: со : д т � N N 1�•� N м м N CE N 00 � N � V N Qi � � ai О r' ai Г i� l� Г р� !� , .г Q rn и и и и �t �- cv et ' т со оо" й �о с� с� сЧ ; и � :V N Г (� !� Г Р � о : ` О �- • О. г л ; О = N и О О ��� 0 N hN- О : : U О о� Г Р ао � v_ о м ш Р •� V N и й й ш й r• о й й й о ;� Q N Х й й й гм- й аCOо r~- °r� й �-' : д J N= о' о о й ш v � ш о� � � � о ; t�'� Q и ео rn со r: Г cS � � V � V V Г Г У у, • Q � ш � а � и f° � г м о а r• er м v с� о � ``' р N v ао ао �r со м Г с� оо "' n. � м N G ш со c.fl ai ui м cv со Z � Q о �'�v � й ш й r а°о о rм- й = � � N N � Г 1 1 Р � � � Г 1 Р t 1 1 1 � � й г �t er �t �t v et '''' � и� cv сч Г� с� � U ,в� ' Г l� Г {� �i .о � О г°м о � Ш � Q Z �„� а р � N О г Г с� м �t sr о � N Ш ш о c�i cV cv cv cV � а � �� г со о о со со 3 О � ш а Г Г Г Г Г м � � � � .- ` ш � � ш ° е ° �� т ZF=- .Г- С ь о т� � шш.� О� и ; � т,ii ш 4� � ; > � с1-Лг � �V о м Q' • � Q +-� N С • с� � с� F^ 7 0> � N о � � Z и о� ? О � �� д •и : ш � -� J L; � ы с�р С С Q� о ша у и� .� � N О�' � р~ � � �_ � д са 0 Х� ш _о с г -� `С го �. � и о .... ш и Ё г г °' Г� °' N й °� ��_ � м с�и с �� Ф ш 0. � п1 о ш� L �, сп � с� coi c�i � п1 � сц г О - Е ш '_' ш J •еа ���`- О а> w ` с а сл с�о й G. � N N � U � Z_пт Q� Q с°�з n. •� О=�S �'� ,� U� д� д л � с ш ш� Й � с о toi =.�° с. - с с'�i v с�.i� Q' с с!ц "_ т•-. tтS 7 tD tll ..� р �>_ О� � fa О О �(й ПS �б � Q�� � и. т� О i- ш U U I- <С т и. Е- и т т т � ALBERTINE REGIONAL SLISTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 9.0 SIGNIFICANT ACCOUNTING POLICIES AND OTHER DISCLOSURES 9.1 PRINCIPAL ACCOUNTING POLICIES ADOPTED The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented unless otherwise stated. a. Accounting convention The financial statements are prepared under the historical cost convention. b. Basis of preparation The policy of the project is to prepare financial statements on a cash basis and in conformity with the IDA requirements. On this basis funds are recognized only when received and expenses when paid rather than incurred. c. Recognition of receipts/contributions from development partners Income is recognized in the statement of financial performance when such income is received. Receipts represent the total transfers made by the development Partner International Development Association (IDA) and Government of Uganda (GOU) for civil works, consultancy and land compensation. d. Expenditure Expenditure is recognized in the Project financial statements in the period in which it is paid rather than incurred. e. Fixed assets Fixed assets are expensed in full in the year of acquisition/purchase. As such they are not capitalized. f. Foreign Currency Transactions The accounting records are maintained in Uganda Shillings which is both the functional and operational currency. Assets and liabilities denominated in foreign currencies are translated at the rates ruling at the statement of financial position (year -end) date. Transactions in foreign currencies during the period are converted into the functional currency using the exchange rate prevailing at the date of the transation. Foreign exchange gains or losses resulting from the re-statament of assets and liabilities at the month end using the closing rates are recognized in the statement of fianancial performance. g. Taxation As the project is implemented by G.O.U. It is exempted from paying income tax on surplus funds. All other necessary project taxes are deducted. 14 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 9.2 CONTINGENT LIABILITIES There were no known contingent liabilities that qualify for accrual or disclosure as at 30th June 2023. 9.3 RELATED PARTY TRANSACTIONS . There were no known reportable related party transactions during the year ended 30th June 2023. 9.4 CURRENCY The reporting currency is Uganda Shillings. 15 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 10.0 NOTES TO THE FINANCIAL STATEMENTS 10.1 FUNDS RECEIVED BY THE PROJECT 10.1.1 RECEIPTS FROM INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) These funds are deposits on the Special Account held in Bank of Uganda from which payments are directly made to providers of goods and services. Funds from International Develpoment Association (IDA) 2023 2023 2022 2022 USD($) UGX(Shs) USD($) UGX(Shs) IDA Release -_-_-_- This financial year, there were no relaeases from IDA. The expenditure was from funds brought forward from the previous financial year. 10.1.2 RECEIPTS FROM GOVERNMENT OF UGANDA These relate to the Government of Uganda counterpart funding received. Releases 2023 2023 2022 2022 USD($) UGX(Shs) USD($) UGX(Shs) Quarter 1 10,305.03 36,487,333 Quarter 2 - - 2,772.19 10,000,000 Quarter 3 13,353.81 50,000,000 - - Quarter 4 544,146.65 2,022,321,007 5,276.15 18,600,000 TotaL Releases 557,500.46 2,072,321,007 18,353.37 65,087,333 Land Acquistion 102,628.41 377,574,260 54,816.92 202,774,402 Total 660,128.87 2,449,895,267 73,170.29 267,861,735 16 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 10.2 EXPENDITURE BY THE PROJECT The amounts in the schedule below relate to payments made towards road construction works under the Kabwayo-Kyenjojo project. 10.2.1 Civil Works Funded by IDA 2023 2023 Date IPC No. USD UGX 11/08/2022 Shengli -IPC 27F 365,433.61 1,409,112,000 04/08/2021 Shengli -IPC 27L 502,638.66 1,930,635,113 02/09/2022 Shengli -IPC 28F 1,084,708.25 4,158,717,195 02/09/2022 Shengli -IPC 28L 1,513,541.10 5,730,660,142 26/09/2022 Shengli -IPC 28A F 96,490.04 369,053175 26/09/2022 Shengli -IPC 28A F 134,636.80 509,769,924 15/11/2022 Shengli -IPC 29F 488,705.58 1,834,762,020 16/11/2022 Shengli -IPC 29L 686,956.24 2,581,897,566 09/12/2022 Shengli -IPC 25A F 3,010,194.80 11,091,303,556 08/12/2022 Shengli -IPC 25A L 897,105.39 3,292,000,000 12/12/2022 Shengli -IPC 25A L(FINAL) 627,231.26 2,301,675,289 27/02/2023 Shengli -IPC 30F 387,414.11 1,439,309,279 20/01/2023 Shengli -IPC 30L 544,574.39 2,046,761,068 02/03/2023 Shengli -IPC 25B F 576,636.38 2,144,032,089 22/02/2023 Shengli -IPC 25B L 556,639.84 2,067,968,397 Total 11,472,906.47 42,907,656,814 10.2.1.1 Civil Works Funded by GOU 2023 2023 Date IPC No. USD UG - 16/05/2023 Shengli -DRB CLAIM (LOCAL) 544,146.65 2,022,321,OC Total expenditure for Civil Works 12,017,053.11 44,929,977,821 10.2.2 Consultancy Services Funded by IDA 2023 2023 Date Description USD UGX 15/11/2022 Comptran Inv. 72,73,74,75 &76 286,625.00 1,098,905,919 12/12/2022 Comptran Inv. 69,70 &71 162,794.64 599,829,875 Total 449,419.64 1,698,735,793 17 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 10.2.3 Technical Assistance (Individual Consultants) Funded by IDA 2023 2023 Description USD UGX Net Pay-Local consultants (Appendix 1) 70,625.79 263,940,000 PAYE (Appendix 2) 36,139.72 135,060,000 NSSF (Appendix 3) 17,239.82 63,000,000 Subhash Seth (Appendix 4) 352,800.00 1,307,687,499 476,805.33 1,769,687,499 10.2.4 Operating Costs funded by IDA 2023 2023 USD UGX Bank charges USD Account 76.31 268,001 Bank charges UGX Account 36.80 136,000 Total Bank Charges 113.11 404,001 Consultant's Field facilitation 3,528.60 13,375,327 Sub Total(Bank Charges & Field fa 3,641.70 13,779,328 Audit Fees 12,823.14 46,860,000 Total Operating Costs(Appendix 5) 16,464.84 60,639,328 10.2.5 Government of Uganda (GOU) Expenditure 2023 2023 2022 2022 Item USD UGX USD UGX Land Compensation (Appendix 6) 100,952.68 371,389,260 42,761.22 160,005,616 Civil Works (DRB Claim) 544,146.65 2,022,321,007 Costs related to land compensation 12,055.06 42,768,786 (Appendix 6B) 1,675.73 6,185,000 10% NSSF- Individual Consultants - - 4,355.69 15,400,000 (Appendix 8) Monitoring Supervision And Appraisal Of 10,752.20 38,145,000 Capital Works (Appendix 7) 13,556.92 49,915,000 Sub-Total -Project Expenditure 660,331.98 2,449,810,267 69,924.17 256,319,402 Funds Reallocated to Other Funds - - 577.24 2,055,000 Funds Returned to the Consolidated Fund 22.70 85,000 2,668.86 9,487,333 Total GOU Release 660,354.68 2,449,895,267 73,170.27 267,861,735 18 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 APPENDICIES Appendix I Salary Netpay Date Reference no. Line Description USD UGX 06/12/2022 1310-IDA-UGX23120001 July'21 to June'22 Net Salary 06/12/2022 1310-IDA-UGX23120002 July'21 to June'22 Net Salary 28,090.23 105,576,000 To Mabel Sebikari 2 1/03/2023 1310-IDA-UGX23030005 July'22 to Sept'22 Net Salary 7,222.66 26,394,000 To Mabel Sebikari 21/03/2023 1310-IDA-UGX23030006 July'22 to Sept'22 Net Salary26,394,000 To Bernard Tumwebaze Total 70,625.79 263,940,000 Appendix 2: Pay As You Earn Date Reference no. Line Description USD UGX 06/12/2022 1310-IDA-UGX23120003 July'21 to June'22 PAYE for54,024,000 Bernard Tumwebaze 06/12/2022 1310-IDA-UGX23120004 July'21 to June'22 PAYE for 14,373.97 54,024,000 Mabel Sebikari 27/03/2023 1310-IDA-UGX23030009 July'22 to Sept'22 PAYE for 3,695.89 13,506,000 Mabel Sebikari 27/03/2023 1310-IDA-UGX23030010 July'22 to Sept'22 PAYE for 3,695.89 13,506,000 Bernard Tumwebaze TOTAL 36,139.72 135,060,000 19 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 Appendix 3 National Social Security Fund -5% Date Reference no. Line Description USD UGX 5% NSSF contribution by 01/03/2023 1310-IDA-UGX23030003 Bernard T and Mabel Sebikari July'21 -June'22 13,791.86 50,400,000 NSSF CONTRIBUTION 1310-IDA-UGX23030007 FOR BERNARD TUMWEBAZE FOR 27/03/2023 JULY'22- SEPTEMBER'22 1,723.98 6,300,000 NSSF CONTRIBUTION FOR MABEL SEBIKARI 1310-IDA-UGX23030008 FOR JULY'22- FOR JULY'22- 27/03/2023 SEPTEMBER'22 1,723.98 6,300,000 TOTAL 17,239.82 63,000,000 Appendix 4 Individual Consultant Subhash Seth- Net Pay & With Holding Tax Date Payment Voucher Description Amount Amount Reference. USD UGX July'21 & Aug'21 24/02/2023 1310-IDA-USD-23020003 Remuneration to Subhash 139,928,400 Seth 37,600.00 Sept'21 & Oct'21 27/02/2023 131 0-IDA-USD-23020004 Remuneration to Subhash 139,690,392 Seth 37,600.00 Nov'21 & Dec'21 01/03/2023 131 0-IDA-USD-23020005 Remuneration to Subhash 37,600.00 139,779,504 Seth Jan'22 & Feb'22 01/03/2023 1310-I DA-USD-23030002 Remuneration to Subhash 37,600.00 139,779,504 Seth March'22 & April'22 02/03/2023 1310-I DA-USD-23030003 Remuneration to Subhash 37,600.00 139,803,192 Seth Jul'22 & Aug'22 06/03/2023 1310-IDA-USD-23030004 Remuneration to Subhash 37,600.00 139,279,800 Seth Sept'22 & Oct'22 07/03/2023 1310-I DA-USD-23030005 Remuneration to Subhash 37,600.00 139,168,504 Seth May'22 & June'22 10/03/2023 1310-IDA-USD-23030006 Remuneration to Subhash 37,600.00 139,411,400 Seth 20 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 Nov'22 & Dec'22 20/03/2023 1310-IDA-USD-23030007 Remuneration to Subhash 3760000 140,699,200 Seth WHT For -July'21 to 30/03/2023 1310-IDA-UGX23030011 Dec'22 on Remuneration 14,400.00 50,147,603 To Subhash Total 352,800.00 1,307,687,499 Appendix 5: Operating Costs Payment Voucher Amount Amount Date Reference. Description USD UGX Bank Charges UGX 31/07/2022 ARSDP-UGX-22/01 July'22 bank charges 0 31/08/2022 ARSDP-UGX-23/02 August'22 bank charges 6.77 26,000 30/09/2022 ARSDP-UGX-23/03 Sept'22 bank charges 5.28 20,000 31/12/2022 ARSDP-UGX-23/04 Dec'22 bank charges 13.08 48,000 31/01/023 ARSDP-UGX-23/05 Jan'23 bank charges 0 24/02/2023 ARSDP-UGX-23/06 Feb'23 bank charges 0.55 2,000 31/03/2023 ARSDP-UGX-23/07 March'23 bank charges 10.57 38,000 30/04/2023 ARSDP-UGX-23/10 April'23 bank charges 0 31/05/2023 ARSDP-UGX-23/11 May'23 bank charges 0.55 2,000 30/06/2023 ARSDP-UGX-23/12 June'23 bank charges 0 Sub Total 36.80 136,000 Bank Char es USD 31/08/2022 ARSDP-23-USD/01 August'22 bank charges 3.12 11,014 30/09/2022 ARSDP-23-USD/02 Sept'22 bank charges 1.05 3,711 31/10/2022 ARSDP-23-USD/03 Oct'22 bank charges 0 0 30/11/2022 ARSDP-23-USD/04 Nov'22 bank charges 1.06 3,773 31/12/2022 ARSDP-23-USD/05 Dec'22 bank charges 1.08 3,822 24/02/2023 ARSDP-23-USD/06 Feb'23 bank chares 70 245,682 21 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30t June 2023 31/03/2023 ARSDP-23-USD/07 March'23 bank charges 0 0 30/04/2023 ARSDP-23-USD/08 April'23 bank charges 0 0 31/05/2023 ARSDP-23-USD/09 May'23 bank charges 0 0 Sub Total - Bank Charges USD 76.31 268,001 Sub-Total Bank Charges 113.11 404,001 Field Facilitation for Project Monitoring 1310-IDA- Field facilitation to Subhash UGX23080002 & Ronald 433.38 1310-IDA- Field facilitation to Subhash UGX23080003 & Ronald 489.46 1310-IDA- Field facilitation to Subhash UGX23080004 & Ronald 400.94 1310-IDA- REIMBURSEMENTS TO UGX23030004 SUBHASH SETH C 2,019.09 1310-IDA- Field facilitation to Margret UGX23080003 Kayaga 185.73 Sub-Total 3,528.60 13,375,327 Audit Fees 1310-IDA- Audit Fees for FY UGX23030001 2021/2022 12,053.76 01/03/2023 1310-1IDA- WHT- SK & Co. 2,811,600 UGX23030002 769.39 Sub-Total 12,823.14 46,860,000 Grand-Total Bank Charegs,Field facilitation & Audit 16,464.84 60,639,328 Fees 22 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 Appendix 6 Land Acquistion and the Related Cost -IFMS payments Date Reference no. Payee Name Line USD UGX Description 25-Nov-22 1310L0523110001 MICAH BAMUTURA KHMKO1- 14,456,520 SP5- 056 3,860.44 KARUNGI KHMK01- 25-Nov-22 1310L0523110002 ERUNA P KHMK11- 1,971,840 ERUKANA MPOZA SP4-181 526.56 ABIGABA JWS KHMK01- 25-Nov-22 1310L0523110003 GFE 088 1,158.7 4,339,200 GODFREY 0885 1,158.73 25-Nov-22 1310L0523110004 KARUNGI KHMKO1- 38,844,000 ERUKANA MPOZA 0082 10,372.81 ROBERT BOB KHMK01- 15-Feb-23 1310L0523020004 MUGA B 0087 19,188,000 MUGABI 0087 5,233.33 IRUMBA EDWARD KHMK01- 15-Feb-23 1310L0523020005 6620000482 KPMK11- 3,166,800 6620000482 SP7-144 863.71 IRUMBA EDWARD KHMK01- 15-Feb-23 1310L0523020006 6620000482 KM - 4,972,500 6620000482 SP7-156 1,356.20 ADOLF BRIAN 15-Feb-23 1310L0523020007 MUKASA & KIZITO 1284450,400 MABANGASP7-1 06 77,580.9128,540 MABANGA Total i 100,925.68 371,389,260 Appendix 6B: Costs Related to Land Acquistion Line Date Reference no. Payee Name USD UGX Description IVD for Titles 10-Feb-23 1310L0523020001 DAVIS BIZMANA along 1,825,000 Kyenjojo 496.55 1,200 Kabwoya Facilitation for grievance 10-Feb-23 1310L0523020002 DAVIS BIZMANA handling and1,625,000 closure along 442.14 Kyenjojo Kabwoya Facilitation for grievance 10-Feb-23 131OL0523020003 GRACE KABAATI handling and GIFT closure along 326.50 Kyenjojo Kabwoya Facilitation NICHOLAS for grievance 18-Apr-23 1310L0523040001 BYAUKAA handlingand 615,000 BYAMUKAMA handling and 164.22 closure along 23 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 Kyenjojo Kabwoya Facilitation for grievance 25-May-23 1310L0523050001 NATUKUNDA handling and 402,000 DOROTHY closure along 107.63 Kyenjojo Kabwoya Facilitation for grievance 25-May-23 1310L0523050002 RASHIDA handling and42,000 NAMULWASIRA closure along 91.57 Kyenjojo Kabwoya Facilitation for grievance handling and 25-May-23 1310L0523050003 KEERA MOSES clr ang 176,000 closure along 47.12 Kyenjojo Kabwoya Sub-Total- Costs Related to Land Acquistion 1,675.73 6,185,000 Grand- Total- Land Acquistion & Related Costs 102,628.41 377,574,260 24 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 Appendix 7 Monitoring Supervision and Appraisal of Capital Works Date Reference no. Payee Name Line Description USD UGX Facilitation for 27-Jan-23 131 0W0522080001 DAN IGA Monitoring and 59681 2,200,000 supervision Facilitation for 27-Jan-23 1310W0522080002 Monitoring and 625,000 NAMATOVU supervision169.55 Facilitation for 27-Jan-23 1310W0522080003 CHAR Monitoring and 315,000 MUBIRU ..85.45 31,0 supervision HENRY Facilitation for 27-Jan-23 1310W0522080004 Monitoring and 315,000 SSEKIBAAMU 85.45 supervision MAXIMA Facilitation for 27Jn2 3 W52805MUSHABE Monitoring and 31.20 115,000 __________________supervision ______ AHABWE Facilitation for 27-Jan-23 1310W0522080006 Monitoring and 169.55 625,000 supervision SHEILA Facilitation for 27-Jan-23 131W0522080006 NMonitoring and 169.55 625,000 NANKUNDA supervision JUDITHAJIKO Facilitation for 27-Jan-23 131AW0522080008 IT AJ Monitoring and 169.55 625,000 supervision BRIAN Facilitation for 27-Jan-23 131 0W0522080009 BAINOMUGISHA Monitoring and 169.55 625,000 UNRA/GET/024 supervision _____ 27-Jan-23 131W0522080010 DRILNANNA Monitoring and 169.55 625,000 supervision Facilitation for 27-Jan-23 1310W052208001 Monitoring and 625,000 MGANeviio 169.55 supervision MUTABAZI Facilitation for 27-Jan-23 131W0522080009 ANICHOLAS Monitoring and 85.45 315,000 UNRA/GET/024_ supervision Facilitation for 27-Jan-23 1310W0722080014 DAVID Monitoring and 48.83 180,000 supervision MATSIKO Facilitation for 27-Jan-23 131 W0522080011 Monitoring and 85.45 315,000 supervision 25 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30t June 2023 MUHAWE Facilitation for 27-Jan-23 131NZB522080016 Monitoring and 169.55 625,000 supervision JIMMY OKOT Facilitation for 01-Feb-23 1310W0522080017 T0086 Monitoring and 385.76 1,420,000 supervision SUBHASH SETH Inspection of Town 06-Feb-23 1310W0522080018 CHNE od 2.1 825,000 CHANDER roads 224.41 MUKISA Inspection of Town 06-Feb-23 1310W0522080019 RONALD roads 112.88 415,000 MUBIRU ELIJAH 06-Feb-23 1310W0522080020 KAINGINYA ras 168.65n620,000 MUGSHAroads 168.65 MUGISHA MUKISA Joint inspection of 06-Feb-23 131 0W0522090001 RONALD Kyenjojo Kabwoya 515,000 road and Town 140.09 MUBIRUrod roads JULIAN Safeguards 06-Feb-23 1310W0522090002 implementation 333.21 1,225,000 support mission Alleged defilement NYANZI SARAH along Kyenjojo 06-Feb-23 1310W0522090003 750KwyURA 170.0 625,000 765109 Kabwoya UNRA 170.01 GEF:79/2020 Alleged defilement 06-Feb-23 1310W0523020017 MORRISH along Kyenjojo315000 ODICH Kabwoya UNRA 85.68 GEF:79/2021 JULIET ESHS monitoring 06-Feb-23 131 0W0523020018 NANSIKOMBI support along 278.81 1,025,000 KINTU Kyenjojo Kabwoya Facilitation for QC 06-Feb-23 1310W0523020019 DAVID OPEON inspection along 277.45 1,020,000 Kyenjojo Kabwoya DAVIS PHILIP Facilitation for QC 06-Feb-23 131 0W0523020020 inspection along 140.09 515,000 Kyenjojo Kabwoya OKIRIA SAMUEL Facilitation for QC 06-Feb-23 131 0W0523020021 TF1559inspection along 140.09 515,000 Kyenjojo Kabwoya 06-Feb-23 131 0W0523020002 DAN IGA Field facilitation 247.53 910,000 MABEL Safeguards support 06-Feb-23 1310W0523020003 M AL supervision on 1,825,000 SEBIKARI ALICE KynooKboa 496.42 Kyenjojo Kabwaya Safeguards support 06-Feb-23 1310W0523020004 M AL supervision on 2 025,000 SEBIKARI ALICE KynooKboa 550.82 Kyenjojo Kabwoya 26 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30t June 2023 BERNARD Safeguards support 06-Feb-23 1310W0523020005 supervision on 1,825,000 Kyenjojo Kabwoya BERNARD Safeguards support 06-Feb-23 1310W0523020006 supervision on 2 825,000 Kyenjojo Kabwoya BERNARD Safeguards support 06-Feb-23 1310WO523020007 supervision on 2 000,000 Kyenjojo Kabwoya ESHS compliance 06-Feb-23 131 0W0523020008 HILDA ATWINE mop upassessment 1,025,000 PRIMA on Kyenjojo 278.81 Kabwoya Site inspection and 06-Feb-23 1310W0523020009 OTIM ALEX P follow up on 1,025,000 OKENE implementation of 278.81 Kyenjojo Kabwoya Field visit and 06-Feb-23 1310W0523020010 OTIM ALEX P progress monitoring 825,000 OKENE of Kyenjojo 224.41 Kabwoya May'22 facilitation - 07-Feb-23 131 0W0523020034 DAN IGA My22 fawon 4 1,800,000 Kyenjojo Kabwoya 488.93 ELIJAH Joint inspection 07-Feb-23 1310W0523020022 KAINGINYA with external 222.73 820,000 MUGISHA auditors BETTY Joint inspection 07-Feb-23 1310W0523020023 with external 1,025,000 NAMATOVU auios278.42 auditors 2 BETTY World Bank mission 07-Feb-23 1310WO523020025 along Kyenjojo 278.42 1,025,000 Kabwoya from OTIM ALEX P Joint inspection for 07-Feb-23 1310W0523020026 habd over of 11 KM 825,000 OKENE Twrod-224.09 _____ Town roads- SUBHASH SETH Joint inspection for 07-Feb-23 1310W0523020027 final taking over of 224.09 825,000 Kyenjojo Kabwoya MUKISA Joint inspection for 07-Feb-23 1310W0523020028 RONALD final taking over of 112.72 415,000 MUBIRU Kyenjojo Kabwoya Joint DRB SUBHASH SETH inspection and 07-Feb-23 1310W0523020029 World Bank mission 224.09 825,000 along Kyenjojo Kabwoya MUKISA Joint DRB 07-Feb-23 131 0W0523020030 RONALD inspection and 415,000 112.72 MUBIRU World Bank mission 27 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30t June 2023 along Kyenjojo Kabwoya Joint DRB BALI KOWA inspection and 07-Feb-23 1310W0523020031 PETER 746378 World Bank mission 8556 315,000 along Kyenjojo Kabwoya Joint inspection for 07-Feb-23 131 0W0523020032 JAMES final taking over of315,000 SENOGA Kyenjojo Kabwoya 85.56 from 09-12/11/22 Facilitation for NSUBUGA monitoring and 07-Feb-23 1310W0523020033 supervision along 38028 1,400,000 Kyenjojo Kabwoya from 01-08/07/22 Final take over 20-Feb-23 1310W0523020035 JULIA inspection and 299.32 1,100,000 follow up of E MABEL Final take over 20-Feb-23 131ALC523020036 inspection and 496.60 1,825,000 follow up of E BERNARD Final take over 20-Feb-23 1310WOS23020037 inspection and 496.60 1,825,000 follow up of E ELIJAH Support in field 12-Apr-23 131EW0523040001 KAINGINYA preparation and 1,820,000 MUAGINHA participation in 487.85 Wolrd Bank Mission Physical vehicles 12-Apr-23 inspection in 1310W0523040002 IVAN JENGO preparation for 57.63 215,000 project site handover Physical vehicles 12-Apr-23 1310W0523040003 ADEBUA inspection in SAMUEL 761681 preparation for 113.92 project handover TOTAL 13,556.92 49,915,000 28 ALBERTINE REGIONAL SUSTAIBLE DEVELOPMENT PROJECT (ARSDP) Project No: P145101 & Loan No: 54060-UG. Financial Statements for the year ended 30th June 2023 Appendix 8 Schedule of outstanding payments No. SERCIVE PROVIDER InvoiceNumber Arount (UGX) Aiount(USD) 1 BRAC UGANDA LIMITED 16 58,976,501 - 2 BRAC UGANDA LIMITED 17 91,268,546 - 3 BRAC UGANDA LIMITED 18 66,888,516 - 4 BRAC UGANDA LIMITED 19 55,170,530 - 5 BRAC UGANDA LIMITED 20 88,513,900 - 6 BRAC UGANDA LIMITED 21 149,917,650 - 7 SUBHASH SETH CETH WHT FOR SUBHASH 29,827,261 - ESTEEM INTERNATIONAL CONSUUUNRNMoLH 8 CONSULTANTS LIMITED UD/01/12/22 53,200,000 - ESTEEM INTERNATIONAL CONSUUUNRA/MoLH 9 CONSULTANTS LIMITED UD/02/12/22 79,800,000 - ESTEEM INTERNATIONAL CONSUL/UNRAMoLH 10 CONSULTANTS LIMITED UD/03/12/22 79,800,000 - ESTEEM INTERNATIONAL CONSUL/UNRAMoLH 11 CONSULTANTS LIMITED UD/04/12/22 53,200,000 - Shengli Engineering Construction(Group) 12 Co. Ltd of Shengli Oilfield 25b 9,081,732,424 1,400,844.53 Shengli Engineering Construction(Group) 13 Co. Ltd of Shengli Olfield IPC 31 2,484,658,061 705,449.91 Shengli Engineering Construction(Group) 14 Co. Ltd of Shengli Oifield 25C 3,695,958,165 1,500,403.18 15 BERNARD TUMWEBAZE SALARY FOR APRIL'2: 46,200,000 16 MABEL SEBIKARI ALICE SALARY FOR APRIL'2: 46,200,000 COMPTRAN ENGINEERING & PLANNING 17 ASSOCIATES INVOICE NO. 77 VOP - 98,035.89 GARD DEVELOPMENT SOLUTIONS 18 LIMITED INVOICE. 01 199,390,000 TOTAL 16,360,701,554 3,606,698 29