T HOFFICE OF TELEPHONE THE AUDITOR GENERAL APOLLO KAGWA ROAD, PLOT 2C, P.O. Box 7083, KAMPALA. Fax: +256 -41 -4345674 Emal: info@oag,go.ug THE REPUBLIC OF UGANDA Website: www.oag,go.ug DCG. 79/340/01/21 20th December 2021 The Accounting Officer Ministry of Education Albertine Region Sustainable Development Project (ARSDP) Kampala MANAGEMENT LETTER FOR THE AUDIT OF THE ALBERTINE REGION SUSTAINABLE DEVELOPMENT PROJECT (ARSDP) - MOES COMPONENT THREE FOR THE FINANCIAL YEAR 2020/2021 I am enclosing herewith a report which I have already sent to the Rt. Hon. Speaker of Parliament jrfioordance with Article 163 (4) of the Constitution of Uganda 1995 (as amended). John F. S. Muwanga AUDITOR GENERAL Copy to: The Inspector General of Government, Kampala The Permanent Secretary/Secretary to the Treasury Ministry of Finance, Planning and Economic Development The International Development Association - IDA The Project Coordinator - ARSDP The Head of Accounts - MoES VISION: "A Model Supreme Audit Institution that adds Value to MISSION: "To provide our stakeholders with independent audit results THE REPUBLIC OF UGANDA REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE ALBERTINE REGION SUSTAINABLE DEVELOPMENT PRO]ECT (ARSDP)- MINISTRY OF EDUCATION COMPONENT FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2021 OFFICE OF THE AUDITOR GENERAL UGANDA Table of Contents O p in io n .......................... ........... .................. ........................................................................................... 4 B a s is fo r O p in io n .............................................................................................................................. 4 K e y A u d it M a tte r.................................................................................................................................... 4 * Im plem entation of the A pproved Budget.....................................................................................5 O th e r M a tter................................................................ - ...a...............................................................8 In addition to the matters raised above, I consider it necessary to communicate the following matter other than those presented or disclosed in the financial statements; ...............................8 Status of Implementation of the Aide Memoir Recommendations..................................9 Lack of Internal Audit Reviews on ARSDP Operations...................................................9 O th e r In fo rm a tio n .................................................................................................................... ........ 1 0 Management Responsibilities for the Financial Statements ...........................................................10 Auditor's Responsibilities for the Audit of the Financial Statements..............................................10 O ther Reporting Responsibilities...sb............................................................................................11 Report on the Audit of Compliance with Legislation ..........................gsl................. ......... 1 2 LIST OF ACRONYMS Acronym Meaning AIA Appropriation in Aid GoU Government of Uganda INTOSAI International Organization of Supreme Audit Institutions ISSAIs International Standards of Supreme Audit Institutions MDAs Ministries, Departments and Agencies Mn Million Bn Billion MoFPED Ministry of Finance, Planning and Economic Development NAA National Audit Act NTR Non-Tax Revenue OAG Office of the Auditor General PFM Public Finance Management PFMA Public Finance Management Act PFMR Public Finance Management Regulations PPDA Public Procurement & Disposal of Public Assets PBS Program Budgeting System BEC Budget Execution Circular PS/ST Permanent Secretary / Secretary to the Treasury TI Treasury Instructions UCF Uganda Consolidated Fund UGX Uganda Shilling MOES Ministry of Education and Sports ARSDP Albertine Region Sustainable Development Project (ARSDP) PDU Procurement & Disposal Unit ICT Information & Communication Technology HR Human Resource 3 REPORT OF THE AUDITOR GENERAL ON THE AUDIT OF FINANCIAL STATEMENTS OF THE ALBERTINE REGION SUSTAINABLE DEVELOPMENT PROJECT (ARSDP)- COMPONENT THREE, FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2021 THE RT. HON. SPEAKER OF PARLIAMENT Opinion I have audited the accompanying financial statements of the Albertine Region Sustainable Development Project (ARSDP) which comprise the Statement of Financial Position as at 30th June 2021, the Statement of Financial Performance, Statement of Changes in Equity and Statement of Cash Flows together with other accompanying statements for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In my opinion, the financial statements of the Albertine Region Sustainable Development Project (ARSDP) for the financial year ended 30th June 2021 are prepared, in all material respects, in accordance with Section 51 of the Public Finance Management Act, 2015 and the Financial Reporting Guide, 2018. Basis for Opinion I conducted my audit in accordance with 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 the Authority in accordance with the Constitution of the Republic of Uganda 1995 (as amended), the National Audit Act, 2008, the International Organization of Supreme Audit Institutions (INTOSAI) Code of Ethics, the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B) (IESBA Code), and other independence requirements applicable to performing audits of Financial Statements in Uganda. I have fulfilled my other ethical responsibilities in accordance with the IESBA Code, and in accordance with other ethical requirements applicable to performing audits in Uganda. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Key Audit Matter Key Audit Matters are those matters that, in my professional judgment, were of most significance 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 matters described below to be key audit matters communicated in my report. 4 Implementation of the Aproved Budget On the 24th of April 2020, Parliament approved the annual budget for MDAs and LGs that contained the specific resource envelope allocated to each vote to implement agreed on outputs. Subsequently, the PS/ST issued a Budget Execution Circular that communicated the budget strategy, policy, and administrative issues to guide the budget implementation for the financial year 2020/2021. During my overall risk assessment exercise, I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance's issued by PS/ST, which has continued to affect the performance and credibility of the budget negatively. These challenges include; lack of strategic plans that are aligned to the National Development Plans, underperformance of revenue, implementation of off-budget activities, under absorption of funds, insufficient quantification of outputs, partial and non-implementation of outputs, diversion of funds and challenges in budget monitoring and reporting of performance. I am aware that the Covid-19 Pandemic continues to significantly affect the implementation of several activities. Consequently, a number of activities were not implemented due to budget cuts and lockdown measures instituted to control the spread of the pandemic. It is against this background that the implementation of the budget was again considered a key audit area during the office-wide planning for the current audit year. ARSDP has 3 Components and the Ministry of Education and Sports (MoES) is mandated to implement Component 3 which has two sub-components namely; improving BTVET Institutions in the Albertine Region and improving access to relevant skills training programs through the provision of bursaries to people from the region. To achieve this mandate, ARSDP planned to implement both recurrent and development activities. A review of the Project's work plan and budgets revealed that the Project had an approved budget of UGX.41.32Bn of which UGX.35.53Bn was released. The table below shows a summary of the key deliverables of the Project for the financial year 2020/21. Table showing the expected key deliverables for the ARSDP for the year No Details Amount Cumulative Spent percentage of UGX "Bn" Actual expenditure 1 070501: Policies, laws, guidelines plans and 3.58 11% strateqies 2 070502: Training and Capacity Building of 0.68 13% BTVET Institutions 3 070577: Purchase of Specialized Machinery & 13.48 55% Equipment 4 07058: Construction and rehabilitation of 14.53 100% learninq facilities Total 32.27 5 The Project planned to achieve its budgetary objectives by implementing four (4) outputs with a budget of UGX.41.3Bn and all the four (4) outputs worth UGX. 41.3Bn, representing 100% of the total approved budget for review as summarised in the table below; Table showing planned and sampled outputs Total Number Number of Total budget of Actual % budget allocation of of Outputs outputs the sampled expenditure of the sampled outputs in sampled outputs (UGX) sampled output relation to net budget " Bn" UGX "Bn" 4 4 41.3 32.3 100% From the procedures undertaken, I noted the following; No Observation| Recommendation 1.1 Review of the five year Project work plan implementation status ARSDP has a 5 year project work plan which sets out both I advised the Accounting the long term and short term targets to be achieved during Officer to expedite the the duration of the 5 year Project. execution of the work plan This being the fifth year of implementation of the Project so as to achieve the planned work plan, I undertook an assessment of the achievement Project goals and activities in of the Project's objectives/strategic goals. the one year of Project extension. I noted that at close of the financial year, out of the planned eight (8) strategic targets/objectives, one objective/goal had been achieved, while the remaining seven (7) were partially achieved. Details are in Appendix I The Accounting Officer explained that most of the targets were achieved in the current financial year (2021/2022). 1.2 Revenue Performance Performance of Donor Revenue The project budgeted to receive UGX.41.3Bn out of which I advised the Accounting UGX.35.5Bn was released, resulting in a shortfall of 5.5Bn Officer to design strategies representing 86% performance. The underperformance that will improve fund was attributed to under absorption. absorption. Performance of GoU receipts The project budgeted to receive UGX. 2.94Bn out of which I advised the Accounting UGX.2.66Bn was released, resulting in a shortfall of 0.28Bn Officer to liaise with representing 91% performance. Treasury to ensure that all budgeted funds are received The Accounting Officer explained that the by the entity in the underperformance was due to the failure to release the subsequent period. entire approved budget by Government which affected the implementation of some planned activities. 6 1.3 Absorption of funds I advised the Accounting Out of the total warrants of UGX.35.5Bn received during Officer to ensure that all the financial year. UGX.32.3Bn was spent by the Project funds availed are absorbed leaving a balance of UGX.3.2Bn representing 91% in the one year project performance. extension. The Accounting officer explained that COVID-19 slowed down the pace of execution of some activities including Civil Works, Equipment deliveries, and other activities for Twinning Institutions are still significantly affected due to restrictions on International Travels hence the funding planned for such activities could not be absorbed. 1.4 Quantification of Outputs/Activities Section 13 (15, b) of the PFMA 2015 states that a policy I advised the Accounting statement submitted by a vote shall contain the annual and Officer to ensure that all three months' work plans, outputs, targets and activities and out-puts are performance indicators of the work plans. . Regulation 11 fully quantified at planning (3) of the PFMR 2016 requires that a vote prepares a work level to facilitate plan that indicates the outputs of the vote for the financial performance measurement. year; the indicators to be used to gauge the performance of the outputs and funds allocated to each activity. To assess the performance of an output, all activities supporting the output must be quantified. I reviewed the extent of quantification of outputs and activities for all the Four (4) outputs with a total of nine (9) activities and expenditure of UGX.32.3Bn and noted the following; Three (3) outputs with a total of eight (8) activities and expenditure worth UGX.18.79Bn were fully quantified. That is, all the eight (8) activities (100%) within these outputs were clearly quantified to enable the assessment of performance. One (1) output with one (1) activity and expenditure worth UGX.13.48Bn was insufficiently quantified. I observed that the one (1) activity was not clearly quantified to enable the assessment of performance. Details in Appendix II I observed that in cases where outputs were either partially or not quantified, management reported performance in generic ways. Some of the activities that were not sufficiently quantified were; 1. Assorted Equipment and Consumables procured and installed at UPIK & UTC Kichwamba". Failure to plan and report on the quality/quantity of 7 activities implemented renders it difficult to establish the reasonableness of individual activity costs for each planned output which curtails effective accountability when funds are subsequently spent. Further, without clearly and fully quantified outputs, I could not ascertain the level of achievement of this output and whether funds appropriated by Parliament and released were spent and the intended objectives achieved. The Accounting officer indicated that management had taken note of the guidance and will ensure that all outputs will quantified in the next planning period. 1.5 Implementation of quantified outputs I assessed the implementation of three(3) out puts that I advised the Accounting were fully quantified with a total of eight (8) activities Officer to roll over the worth UGX.25.18Bn and noted that: unimplemented activities and ensure that outputs are One (1) output with two (2) activities and expenditure fully implemented to be able worth UGX 14.53Bn was fully implemented. That is all the to achieve the project two (2) activities within this output were fully implemented. objectives. One (1) output with Five (5) activities worth UGX.3.6OBn was partially implemented. One (1) output with one (1) activity Worth UGX.O.68Bn was not implemented. That is; the one (1) activity was not implemented at all. Non-implementation of planned activities implies that the expected services to the beneficiary communities were not attained. For example, the Project did not implement the following planned activities despite having received the required funds 1. Hold Workshops involving various stakeholders in the oil and gas sector. 2. Training of Instructors at the 2 UPIK & UTC Kichwamba in Oil & Gas related Trades. The Accounting officer attributed this to the COVID-19 restrictions that limited or affected most of the activities and indicated that the unimplemented activities have been rolled over FY 2021/22 Other Matter In addition to the matters raised above, I consider it necessary to communicate the following matter other than those presented or disclosed in the financial statements; 8 * Status of Implementation of the Aide Memoir Recommendations A review of the aide Memoir reports by the World bank for the Project monitoring mission activity for the period 27th July -3rdAugust 2020, 2nd-10th December 2020 Mission and 16th-25th March, 2021 revealed that some of the agreed upon actions/recommendations between the World Bank and MoES had either been partially or not implemented as at the time of writing the report (December, 2021). Appendix III refers. Failure to implement agreed upon recommendations undermines the efficient and effective implementation of the Project programs and activities. I advised the Accounting Officer to expedite the implementation of the agreed recommendations of the Aide memoirs so as to efficiently and effectively implement the Project programs and activities. * Lack of Internal Audit Reviews on ARSDP Operations Section II (B) of the ARSDP Financing agreement on Financial Management, Financial Reports and Audits in part 5 states that, "To facilitate the carrying out of internal audits under the Project, the Recipient, through MoES, MLHUD and UNRA, shall carry out semi- annual internal audit reviews and prepare relevant reports, and thereafter furnish the said reports to the Association not later than forty-five (45) days after the end of the period covered by such reports". Section 7.4 of the approved internal audit work plan further indicated that the internal audit department rated ARSDP and USDP Projects as high risk and allocated 800 hours to review their operations. I noted that there was no internal audit review carried out on the operations of ARSDP during the period under review. As a result, the Project risks were not assessed. Internal controls were also not properly managed and this could partly explain the challenges leading to Project delays. The Accounting officer explained that the audit reviews were disrupted by the lock downs due to Covid-19 pandemic. He however indicated that two internal audit reviews had been conducted by August 2021. The reports were however not availed for verification. I advised the Accounting Officer to always ensure that the internal audit reviews are carried out regularly for the remaining Project period for effectiveness and better monitoring/accountability. 9 Other Information The Accounting Officer of ARSDP (MOES Component) is responsible for the other information. The other information comprises the statement of responsibilities of the Accounting Officer and the commentaries by the Head of Accounts and the Accounting Officer, 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 Responsibilities for the Financial Statements Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 of the Public Finance Management Act, 2015, the Accounting Officer is accountable to Parliament for the funds and resources of the Project. The Accounting Officer is also responsible for the preparation of financial statements in accordance with the requirements of the Public Finance Management Act, 2015 and for such internal control as management determines necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error. In preparing the financial statements, the Accounting Officer is responsible for assessing the Project's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Accounting Officer has a realistic alternative to the contrary. The Accounting Officer 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 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 judgement and maintain professional scepticism throughout the audit. I also; 10 * 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 my 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 Authority's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the 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 Authority's ability to continue as a going concern. 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 Authority to cease to continue as a going concern. * Evaluate-the-overall -presentation, structure and content of the firandIal 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 the Accounting Officer 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 the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them 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 the Accounting Officer, 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, 2008, I.report to you, based on my work described on the audit of Financial Statements, that; except for the matters raised in compliance with legislation section below, and whose effect has been considered in forming my opinion on financial statements, the activities, financial transactions and information reflected in 11 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. Report on the Audit of Compliance with Legislation In accordance with Section 13 of the NAA 2008, I have a responsibility to report material findings on the compliance of the Institute with specific matters in key legislations. I performed procedures primarily to identify findings but not to gather evidence to express assurance. The material findings in respect of the compliance criteria for the applicable subject matters are as follows; I have determined that there are no material findings in respect of the compliance criteria for the applicable subject matters to communicate in my report. John F.S. Muwanga AUDITOR GENERAL 20th December, 2021 12 1,―慌・ ао�ого�р �ш�0-1 �, �1 Г1 � С = �' Q д � �i П f�iD N� � r� N и rt�D 7 �р � з O1 fD П д (D lD N д N rt 7 - г�rt S� й ..�тст�д°Ч'' тг�ос3Пр����с'' п � i� сл о°с й� т о а ь� и о j а N!'' й О р� � О ш. r � 7 Ш о`� Ф ш N п f' �' К и(иD г� `� � 3 С r�t С а (1'1 ~.. � rt� �.�i � о j у ЭЕ � сл о 3 (П д�� �� �О О N r�t о и�• Я го � rt т°n rv сл �_ г� й � о ггrtз � v�m о � �*о о �. � о о т R�m о� пш й R�o z� гг �� �� < �-' а � °с � и F-� -А rn � °о о о •° о о о О О rt rt О О 7 7 Ф Ф О О rt гм � О О 7 7 (р N l�n'�+U а'�. И "''� И П ����va � а ш л ш гv� �3� п'" � 3� а О�с � ш�� сл Z �����а� �оаао3 �о�т�аш ��о� аш �т�та гиа а �roo °гD�°а°ro� `"игDnй� c�c��n•от•'�5'�°ааш�г�и'`D,tiог��с•�"�'шг,n�� j.г�о�4йтог�n �.�•�U ИС С�,• � п n �а т т��� т го� �л� �'� ;о �т � т���,'`� `�. а�� ш т �' 3�т г�� �� ��`° Э 4иg �о �� � °� �'а,•"' ш о ��° °�а�о ш ш г3 � Q � � а о � ё:г� с�оо�.,. `^й �гп �a��gro�� �гот�т 3 а г� � � �. о �, '� а а � 4 cn 3' �. го �`^ �`�. ш:� � � ш`^ �n оги, 'т \� �аи �' о `^ Т `� �•�� j аа� 4\ � � и � ° �т й� �;�. и`�о4 �c�n��o�S���4 ��оси�g,о� °т � gш � `�° ����г�'с� и°'�3п��`��ас1� Э�''`�`д�'ош � �с�'ог�'ис°сл � ,� ,т � �. � ш е � �. г. �� �, о� �т � о �; и' о, �т \ °' � � �т ш � ш а � о г�n °,т й°, �44�i° ° г�и о�о гал � гал гсй `�4о 4 `�° т т�'� ай гаn 4� °��4 �L��� оо�•°i а ~v �ш"'то'о г°v+��.,�г��игаоа�ег�о°�'��.с�у� ¢� v, а`, a�v �� о s v�, .¢ �� v.c г°v о,�,� о'� � а� ��И � ш��� `И°��о�с и � °v�ш`�ti ш���Q�'� pNm�b �о°' а, 4 й•�'с ��� ш� j 3� ш� с.�и\ г� oi � � ш�� � ш`'; �.р�' N ш и �.и ё� � ��,��ит �Z�•�ао .��й� оИ4�о о �����vv�`.�'р����°о� ио���.с� �v,� sи ,,�°т�,� го °'ша� v�аи ш+✓��, И.�.��о �� v�n.� о�� � аЙ � �� v v°�'а � т� И ш�о � Ёга� �°�' ш �а �°�'•� �' И�'г и а и о'0 гИо �.и� v F av ��с и�� ��га �ti0 v`•� а+., о^+ .��. т�� а•� с С,� �' ш ё v•с �,� ¢•с а°�' � � v т v а т ш о о С�. � a�i °i' ш ш о ,с +.� о�� р.� 3г� �.� С 4 Q•и о 4с 4т �n S о�� т-с� игз,о тС� 4и•oN о � 7.и с+� ш С � i о�� С� 7 N о N� С � N д� 'ь' L � О о й`�и�ш � шш�nо,..� ого�+а о ойй °о�о � 3 3 о Е г г т га 'й и д ги с с �° � о о г г о °о ° о о о °о ° °о °v '^ й и о '� t '� � � N д � �� ~ Q О � О Z О N О N N И N П1 О U �' �' N И С И г0 01 01 � U� - гСо� � о��йа�гСос о �`°ош rn Z' о v rn•с с О w. � � т Uw й с гСо=°-•Е а у Ct шо о�`�ша�йа��сй��Ё�� L p�L � Е L-�О О N ��И й и� а .-i •� ш Е о.-i rn �е ш� о о 2i � и N У .-i р�� �� н.С а� i� н U7 н й � а ri 3 ш и и о м го ° 3о °и..а3 � ri `� �о� ('�О о � с � о v� г�0 и и И � а С 7 Е � �д йs шN 3> О о� � ���v Оссьj anc_И �oVfOр ш а� о го о й � о о ссо w э� �!� а�i э� гао 1-о э� а,� � й� с г�' � т с-о ш ,� гиа го +-� го � V io ��' с� л с� с +�� т•- иш с о � �с�го �ш�� �'�� а� � � С � а � и +� � (р С "О с0 � V N д О N � а- С'j И �--� N V Ш> i ои й f0 С 7� а>, f0 о- 7 м 0¢ а v S� о й го и т Е л� n0 и ·魚 и ш ш.� а ш� ш �� v ш ш`� от с о,ш���+r и `� сг ш и v и �^ шо� и ш с о�� с�с �о о�.с .с о о � �.с о у. ,� о.с �о с� ш с 4 о о � ,СΡ �0 с� .с ш` ,., с �� о о•ui r1jШi �+.. О OiOOa, о Oi. �0 о до О у+� �h ��0 а.� о� О С о,'с`� j.,,, о у �°' � vy, v� с N 4 � � о��си с �? 4 � S'G � о�с у.С +. Ф с а .и Oi �� ш�+.. т � ае �•а�г va� �О� 1о, S.��' i��л i�о� Й�� й Й� •` у� у, .с '� �$ � 4� о� � о �, ш р. о ш С;� •G ��� т�n ° й.? о ш� j .с а•� т с о с� ,с � v� o�v ша ш 3 � ш с с'� ш'' �с �' о� ш�с � v а� а� с т` го•� �, а rn � с о �с .с� И и ��U о° у ш ша и,.�'\ С ш 3 i о с ш'Q4 �,,,��°�'.��t �� � ш �с ���. � ��v,m��o.c•��� ,° гсош� .с ссо� ш+✓ с�и �, � с v и ,� с ��.о,� �. с т Е 4C+� v ш ш �� .'�.� � о� ш i и.� о о с L о� о 'С с а�с � го � �� г�'о °�' �.с•�`O �� ° ш Q,� �т с° ш о �°�'о 3 v о а,� с.�.с � а-.�'� шь с�� 3 о �°, Ё о � •� 'т � � � � � i � � � � � ш � и �, � � `v � •` а � � „о, у' � � � й •� � ��.`о � � 3 ;с � � �°L' и 4 �� 1� � О� � Q� т О•� 'й ��.с � � с 4,о � �'�и со� т+�S 3 о•� 4°N й`. � О т 3 г�°.и �� °vw � •'-" О +� U и ° п� с 2_� +� �i � д л� �о у а� о о о о о й n� � n ,--i � шо и г� ° н - оа С = С ++ р� •fp � С � i � О °' �'' а �л 2 � � r,i с о � L о � У� о о ���n о о о� О С г ,> О С о J ° N L р� N р °1 � `� о tJ О !� а'' р �° � ° С N С 7 а С 7 � rn °.~° � _ � � ° с * -С � ? 'С � р О �С 2 гv rn 'га '�^ и 'т 'I''п iпи °°� ой�LL гиой °и'ййv эг ;,.°� � э� ; F_й 걍 rш°Ст°L'т г'и о��'о��.�, v� �v��ro L•°iо��`O� усо���о�•°� iй �v`с ,,� � �о v ш й о� mN +�0.�.+.. а� ш �° ° о �� `°v ш � о �� о � йw v �.с ���� � �, � v ш е � •И � т 4 .� N ,°с •`0с � � .а ���s'O ° � ��о о.и� 4И с .с �N � �°� й Ё,�Со v v�� �.� �.� � 4 j� �� � .и о ` �.,,'� �� v ��а aa�i•И � ш Q v� Q ш� �i° и S� �,�� ш� ° о'` шQйт��о� О°�'ш�3°v°�U°Q�' ао•5 �йш6v° v о � й ш fO � �°� 'J с +� '� с с с � О о� с b � ш г�о � 3 ш и ш >� и- - �>,� о ш с �а � n � � л о ŭL г�и ш � ш о��'w Qc о � w. .о г т�, t д v v и го � о ш�о и ?' д с '° ш 9° а � г° °о °о о о о о о о й о ni г� .� пi Q� ,--i ао и n .--i и ,� �ш о � о с_ vs с� rnи� •+�v rnио � � �-U-- с О 2] С N� �� С С М N N F�� 1] 7� f�0 д ��•С v � а f�'О С� о� �О Т ti }' �с w i р т с ш го � о ш iл �уΡ�..� д �� и N О� � а С j а V f0 � N а••i �� � U 7 Й�� И � й �б�3?��_ ° сш� шЕш•йош��� �ййt'л�1�'лш ой� ,��и�°оа� г`о с+-' и � т�,� го �+� ш м � S[ � n �� о � гл и пi S а �`: b и го � �' +� Й oi о о го �`� v� � а � ш г`о ао � v � сог°.i ш t'i � �. J rn.°r�`V й rn�o � и� л� v^ � го с � с � '_ � 7\ х7 С\� С Ь U1 С� N С(ТО L С С �'' � �� и о с O1 о '`° ЙС и г� '{''^ а '" � го гп '" '° ° о э� о ш., � т й°и й й v эt +, �-, � э� �, � й э� го п ш эt а и гЧ г � � W О и � ~ - _� V ° п N � г т °rt' `г Vfи rn° э�гv�*т и и�� rnи ы-�� v -1vrn�*ш �*n ¢ogv �� ш эtгvи *��т-^wрш гi (� э� о�-ггг��*vо�д��* с'�сл ш тшдт�о� ° гг�-чо� с�ооат�о о+тс ���стси �� ои �� с � и �о°°'оЭ�'о �3и,� ит �< �,�, д fn� °n соо� г_i.,ай �*� с с а�Э �� ° и �� п� о� �п Г) °-: 'т- с rr �+ и йд 3 � о и т Э о з`��т �р ао т о� ш v т г�о � �т � n�� rtm о °�тиа 3 ��о �° �и оо° с• го-г 3 �� ,� � а ° п�о о rt а й и ~,, � с ш�,� � о ��� -� °° v о �* и ,� о т о�° ш. со rr �'1� ш � n 2' �i т г.г и W i"i � Г� W 3 7 � й о�_ ~ �: n' Й V rг ✓ '"r L? rt � С � � � й С(� v �у. � � N n 01 L? • 7 �* О N � � °. � � 7 О П о р N Г1 � � С � lD (D И � :� Г2 -оМ п�� п,а о с_ о с й `� й ш N О r r о N о � О �-` О � О О rt м О О N N с о а� ��° ш� ° о о о �� ��° ш� ° о о с сD т� � g и т' �� с о т� ё го `� т� �' rt т �?_� о`� о т ��3 о`,� о о а т т о � п �D ° н ° а ° ° и�. ° а ° р N 3 Ш д м ° N О Ш 3 Ш д r�r ° `(°D -. и N L*. � т rr г� � и N с*. � rn rr г� � т� � � 5`�� г� � Э'а�п � °i `"��an� о ��° � ��`�� � � `�° �а��� �а �� � � с��о г�и��� а�гаn � Q�.ë�. �а �сг:� �тЭ �' "� °' Э � сс � г�о�. `�, �. j � ^' Э �� � ~ .`Dр й' � � о �' � °„�,' о. .т �; � ^; 3 й' � � о �.т ^' � л г�n � ай �• гии ° а� й �� Q° � io ш г�о � 4°^г v� `DТЙо� ti��.o� ����� Ои���°т � г°�,и�о�; а�с�"; о�й�� а ,аш° 3и. �г ; °��т� гQи'�ат �'тш о гаn о и.� тйш ш� о а �'аш о иororo �оroи� а�ат гnьн.иr,.шпи �оти�,, а ��`о °°'° �S О � ��" ш а о � �а`°i `С�'`v'�� S т го �С� ш И О � Ш Ф О .� L� Ш � � С � L Ф И� т � ,ШСΡ О�О� � ��� h Ш Q j С Ш у(�О ����`�- � V � о о д с о�с -йс 3 � � с'� п� � с о v ш � � с � о t'i ° �rt'i ш ,� ш Е�,., о �`� ` v, а ш v 3 ш � й � о+� а с+� п� � +� t'п 'о^и а о^ш и с и о`tv й о го�+� > оС7 z n° n3 ° Е о n� йг °и 3 по.гоо ш�w г'о ос7£О с с �о v° � � о о г г о о о о о о о о о о о н N н в-�1 N Тн а� ^ О �N О � ш 01 � � � � С � С �С � о � и �� � о го � го го о � о оЕ ¢ ¢ го�+� N Uo� � �, � л0'о р У � j, д с U N>' V с � г0 :ь� о � 3 С °' � � v � ° с м го '-' � шг со й � с й о+И й�'п oti'ir с � с� о �% н С � р � Т`t � о+� �, `t С+� о � с И а� 02i 'Й � М oU U д L.L д д¢ �' С n. д U С у L.L f0 `�� �р�� �=.о. О .�О оС��� �Сс t''д°Nt'' �� � Ё an°i ш t'i а, й•`�vy ш� Ё� 'O L°� р _Q�cE �с ш�'+�оаи �о �о b � с с �' � п й о С с о � с dS с ш и ш`t ш о °и oCU°'й�эи о ш`� � г'"ай ° йй�й с°и.о� а`+� аш С �' О с а..� � � о О С а И '� j � N � о С Ш О ., М � гсО О г�0 о а � �с���ос.`' о� а��г., С � г�--г � pNp а г� �. с �^ °� й �* о � т � N S и р (D г� и и W О� � Я з (7р о о С О � г-� � �. � � (D � О �� G1rV�,j аШ 3п0 W < (D N и� Iv � n N ��� 3~ N � . � � гм (р OD П а� � � (D '�^ �r а и � й � 3 а � � т п а � гn N� о v гл о� �ш_*. t�D � 3 � � о � � � 3 о � оп т т т rso n� ° nrt {.� п 01 о� о6 й ' а�о N N � �о � � � и ~ о N о 1л о {О О n д п o�i < д G д а '� а '� О� � О � 7_ p�j � j j_ N� N О О j '--`('J � �� �, dfD� � (D (D О QO1 О �_ � � � �lo о � �? 7 �--� � � � п о `n' j, � < j 7 n< о j й p�j С й fD fD lL� lD п д rt п rt � S•�S�ŭ � о�� �3��4а��о�° °�°-��°�� '�п����� ешЙа о ш�ро о�й � п гD г�и И� �оа° , Э о �'а �-° й п �°i � ш �'� � �'\а Y,�c��n� �о' ��rn�;гo�n�~'�g? � о�'� n�as о4�а� й�, � �г^*о � ао ��• rn Qл �Q3'�^ � р� �4 ¢ т � ш и..'о � гn о оо `�° °i � �,И Q �о -�� г�v��`�° �,wti ' й 4 �о �� � �,�3 �г"гnп оогао й��� гаио �оо��,� ш�� С �4 о оо� � �, � о Q^, � � п о'� v, и о' �1 о С `� о~. � � � ° ~ т��� и �й � � а � � аа °i 3 �ш а:� `Oш rn о•е 4Т� �аа о� тт ° г�n °о �. � � � �'rn �•ао о й � о о'�й• '�`�о й�n�.�гогогn гn3Эо Эгnrn �о��ош�G3'о й•4о t Ф L С� Ф �"� >_ С � � � л с � .. � Ё1 9 rp � О � �_ `� � �уг С а' 't > й аш� ааиi � N � н ао т т �� а��°с L s s с > ^ •- �'�'у�'v_ о ' г O1с т�ас�оtИ°aa�i°� 3��оаЕL�н� '" -а о Е � с'i >, �.. г а ао+ н �o��i�a �Есг ас�.°_а..а лон ш.. у ++ � а � о w и ai и й � 7 а+ 'С й о > с � т jj '� .. >д�ш �о �о � c�i�i`о�+>��vшсасгоа�i�с � а д Н v д а с л ш.. о а о т � �, n� � в �, 4 ,� � С м тs Е с аа+�°о= н^ = а ои с�� о.. � и уΡ _ � 7 у И � О° i � � а оа+ � mv�� о.. �] w � � � ооС йа р��Х�о�.. � ''►' 7 N 9 � 7 �7 р е LL D � 00 pf Ф 10 О а+ �:С е О� � С Ф 0 С С 01Ч-. 10- �� 10 � � Ш С �р � а ФНдлу{L V �v Е ш �о ,. о .. ш � � � a�i `о �� й vг �о � ���ca�i�'v ш$'шосгио �"� а �+ �о ас С и� б�н �� а.+ Ф � С N � т �� �' ° С '> N f0 '�+ � � а а� � a�i ; а. n. Q О °�° L ,� а д ` � 'С а`Ёо� v� р g и v D,� О fD С(D й� � W (D r°т ° �U О_ � О � � � N V� � lC у О О � й � .'�^ г+. сл in ш � й ° . > й а й ' и < ' S л � С7 И � � (° = Z И Ш � � 7 `'': D д --� '++ (� !D ~+ D йп��'<гоо °�Пnпот�nи°' ��о�т�соа�й?.�йш�о �� s с о n��� С сл� � а� с п �. с rt io' � й rt й ° �� �^ ш ш о о.аи� о -°�-t ov1'�о�� й�й �й �� .6' ° с° с � iп и гg о ш � � � N й ш С п г� а R° ш р й а и Л SZ° � � � f�D ~+ W n° (�D N N l�D N и и и и и w и r � iv �о owo ао и �о owo ао и � � слйёо �и W N ti V � ti .b о � w сл ��� 'а О W о N �О ~ р°n с т ����° � й р 5�' �� v �D � �а� ° �и.n°• о�Oз��т ° �-,�' '<'-*�°� о; � `° Q ш � rn т ш о о. ,� с rt и п � (� ° � �< �, о rt и � ° rt 7 д N�'' rt S l0 С �' п гоит z п v v п н N (�D N N N И И И И И N N N N N и и и и и i r r r � � � r r н г а � и. �-� ш о о т � о й о v о � о v ом о � �� лс ш •� � ш •� +� с ° г�о ш � � го с гO1о `� га � > �,� i3 �,� � ' о v�>ш`° >и' ° �� �� � � д � с vi � с с°� � ш� т о о с� � г�'о � ш г с v и го с �° го � .� 'го с г�'о v с v и'2й'сш,��}'.�и°�-,>с_n�и�__ с�йаоvnшЁ ш� с�йао � С� С р�-' �> 3 С v О (О N U U� а V� д а� �� р U U� i с 7(р с Й U °'(р У L'Й a..i a..i О О С р д 7. л._ a..i р р._ а 11 О�А У � C w г�О S+`+ � О Й i� H J а а С O L U�7/1 N д д Й J n d C О W N О О +-� О � [r O1 �м йй йn N м � �r ": N' `° �о ~°; ^+ МН �,р и � ао оо �rn �°�� ��� �о`�► о м ,,.i �О��-1 ,N-�й й°о ноо лг^vcn м ni о ао о о г� и � м�? о0 н й й о � и о � М мnio аооо n�iй° �М?о0 о г� v� м w г°� � �� С у _и р" д й U р С � Z� N fp С О Е._ � � д$ ULL U �° н i'] � С д°��J .П Q 01 а N� 2] 'ri �� �°TS � и N� � N� о� � t � У t � г�о ° 3 `�'` ` а `�'` 3 ао tO ' о ш U ���`��° 'и� Q с о°'й а � ° �_ ° � й Nн���У С�Е-- QШ г0U аС�У �°и г�о � U г�аУ О � р � � � '�7 � г� с � � '_' г� гио '� с Е о?��' � ш ru .� й 'с г�о � � � й � 'и � а й й с :д '� •с = �и Q о'�vn= � о� ш� '� осfO�° `.-1-~ оН гсоС�оро�S и оа ov�i�aSw oU о� о vw00 О 긔’ шо�� v°iо ��.о'`��.ое°i� � °�''Ci, �,о��.ошо � �.с � � �' ,`�� ,о о, � v � � � � � 3 � ° '° � ш � � � � � � � �� " ~ � � о� И +° �1O �`�о� о �b � �n � о .`�о� т �� 3 � �`'`°`i � о°� � о ш.с� � о ш ш•� о `' о о оа о v т �`-'� ,с � ш°� ш.о ш�ч � i г, ш �° ш.�'р шм �', �� .¢ �.�.с v ° `ог � �� �+..�с� с �°� � av �.4 °'+и � о о � •ё'�т v ё � �а � о ё� � �� � � ? � °'°� � 4� i �� .� `�°о`^ � �ч,и �°,ooo+..v, ш г��°то�о, v+.. oi � о,°с �� ш� и ш й �° и � о �� ш й�� �° и'� о i С� :с � v� �+��.. ��� i о�� Ё�� о, 4'O� i�°�� `^ 3.а р� ,о `о о° о° v Й°WN'� v о+? v �•с .C'� .� �, о � � �,� ,оа �° ш� 3 т °~о .�и�-; � ао.с ai т а ,с о�. ш v � с���,°� �, ш~п, vиi гv �`п+ � ш г� v � ���N 3\N а�.с � ��� 'о сг��одё� у,�ого шо�'о��'гиог�4 ���ivo`vo`^'�г�а 4.°� v` �� ��� а� °° аа �� ш го�� о� .и �.�;а� г�о� ш� 3� о т .й � � с о���� о°и �^ v��� о � � о� о ��`о °' гио �� о� � о�' о � ог о U 3 о о т hгv�o,o��o� �Zti�цU о с a+..�v�,o� �г1WС� о с а...+.. о о С С 01 � 61 � С С � С � � 'г0 � �г0 � 0 I- ои � ои Z � О ^ и ` 3 N fO - о �L i� N ¢ � � N О С � О С � � , С � U О �CCCQJJJ N �л ш й �. ш � �� �3 о о с� ш ш и t'i �о..r с о С � lJ +� у У� Е �°-� �7 с р � � з С 'f0 � Х � С � � С i С� С г�0 .� �J 0 о N С .--1 �'' � ; С С о .� й .� О о � � � � И I- N � � � lL й � й ги г� �' г�о �' � 7 f0 7 `'у � �'"� 7 �"� � О Ш О � О г� N LL N r-� N w �ь- w О О О У � а � � т � 'с �, 'е +, 'с .� � .� � .� *' и �' и '-' ш ш � v г� го г�''о й ''' й �' й � с с с � с о � � � � � v � = У О � � О � � О � д U�� U tn' � U н � гдi'o��VODcm`��о 3��'о ��on Ё°п� ш nп _ 2= n`� �G��� -п.� � W�-л� 9 г�v�� � сЭ � р � ш � � � � � `�• � � � v, � т д о � �-�гоо�� °� iort т о_о �� � О о � � ` �- �j � С г� и Ф N � � п (�j � � г�, о О � г* ' � д 7 = 7 р� -п � N � и Q ? S"i fD � � � о Э � � � и � О oi гр� р� � ,� О ь+ n f+ � 1С � � r.� 3 rv п w w б�� r�.i Q r � д `- и-� � г�, � о о О � ° и~i rr а �7 П И С го {q ' 3 й г" � � �л й � Ф д� й т � о 1�i Н О� а_ rг � 0 V � � �. С! 'г� 7 g' � О �. (D � > > о' о 01 о_ _ � п � � �, о 01 и а О г��, � � й о � й �р n г г � м О о� д 0. fD � � � = О О д Ol �j О � � � N � rt � О N fzj П1 r�r `G j а � о 7 (D 3•� 0�10'ro' л оа с т�� о� О и о� о� и�� 3� ш� 3 3а ^ ё� � � 3'�� �Оауо� а �.а о, ��йт � 4� � � �� о о п4с °,� о`° о� ш агn'��,� �`о о.°' а а' `^� �о � ,1D � 4� о�� т � 4� ш. пv� ш ��о ш°� Do �, ? ги гn� о ш j � � � `^ 4 � гС�, � � � � ё � � т г� �ои о и �о n� о о° ��°о'' •"� й �� а� � о и �''� о а�о� � ш о�и ' � ti�qo � ш о � � л и� `�� � �.� о,��• �о ��,� � � �_ .� о;D Q � р� `^' Q г,n � о \�',� т°' а о� 3' � ш 4 � а. и го�. го т `4 �с а а 4 г�n � и' GOVERNMENT OF THE REPUBLIC OF UGANDA V I ki I Ministry of education and Sports Reports and Financial Statements for the Year Ended 30 June 2021 For The Albertine Region Sustainable Development Project - Component 3 INTERNATIONAL DEVELOPMENT ASSOCIATION (Credit no: 5406-UG) Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Miristry ofEducadon and Sports -ARSDP Project Component 3 Table of Contents Statem ent of Responsibilities of the Accounting O fficer .......................................................................................................................2 Comm entary on the Financial Statem ents by the Accounting O fficer .................................................................................................3 Com m entary on the Financial Statem ents by the H ead of Accounts....................................................................................................6 Statem ent of Financial Perform ance...................................................................................................... ................................ ....... 9 Statem ent of Financial Position................................................... ........................................................................................................ 10 Statem ent of Changes in Equity (N et W orth)..........................................................................................................................................10 Cash flow Statem ent for the year ended [Direct M ethod]..................................................................................................................... 11 Statem ent of Appropriation Account [Based O n Services Voted]....................................................................................................... 13 Statem ent of Appropriation Account [based on nature of expenditure]............................................................................................ 14 Reconciliation between total expenditure per Appropriation Accounts and per Statement of Financial Performance...........15 N otes to the Financial Statem ents ..............................................................................................................................................................16 Accounting Policies................................................................................................................................................................................ 16 O ther N otes to the Financial Statem ents............................................................................................................................................21 Statem ent of Perform ance...................................................................................................................................................................... 31 Statem ent of Revenues collected during the year..............................................................................................................................32 Statem ent of Arrears of Revenues [Based on source of revenue] ................................................................................................. 33 Statem ent of contingent liabilities and guarantees............................................................................................................................34 Statem ent of non-quantifiable contingent liabilities.......................................................................................................................... 35 Statem ent of O utstanding Com m itm ents ..........................6......., ................ ..........,,,. . . . . . . . . . . ........ 36 Statem ent of losses of public m oney and stores written off, and claim s abandoned during the year ....................................37 Statement of reported losses of public moneys, stores and other assets whether or not written off during the year.........38 Sum m ary statem ent of stores and other assets (physical assets) as at the end of the year ......................................................39 Schedule of Letters of Credit............................................................................................................................................................... 40 Schedule of Project Balances................................................................................................................................................................. 41 Annexes to the Financial Statem ents ...................................................................................................................................................42 Annex (i): Pension Payroll............................................................................................................................................................. 42 Annex (iii): Trial Balance.................................................................................................................................................................. 42 Annex (iv): Bank Reconciliations and list of all bank accounts................................................................................................42 Annex (V): Schedule of Verified Arrears ......................................................................................................................................42 Annex (vi):Sum m ary Staff Payroll................................................................................................................................................. 42 Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry of Education and Sports -ARSDP Project Conponent3 Statement of Responsibilities of the Accounting Officer The financial statements set out on pages . to ......... have been prepared in compliance with the provisions of the Public Finance Management Act, 2015 (the Act) and the generally accepted accounting principles for the public sector. They have been prepared on the modified accrual basis of accounting where revenue is recognised when earned with the exception of taxes and grants which are recognised when received. Expenditure on the other hand is recognised when incurred as further detailed in the accounting policies attached to these financial statements. In accordance with the provisions of Section 45 and Schedule 5 of the Public Finance Management Act, 2015, I am responsible for and personally accountable to Parliament for the activities of the vote to which I am the accounting officer. Further, I am responsible for the regularity and proper use of the funds appropriated to the vote to which I am the Accounting Officer. I am also responsible for authorizing any commitments made by the vote and for controlling resources received, held or disposed of by or on account of the vote. Finally, I am responsible for putting in place effective systems of risk management and internal control in respect to all resources and transactions of the vote. Section 45 (3) of the Act require the Accounting Officer to enter into an annual budget performance contract with the Secretary to the Treasury which shall bind the Accounting Officer to deliver on the activities in the work plan of the vote for a financial year. Sections 50 and 51 of the Act require me to prepare and submit financial statements of my vote to the Accountant General for consolidation and to the Auditor General for audit within the specified timelines using the prescribed formats. Accordingly, I am pleased to report that I have complied with these provisions in all material respects and I atn also pleased to submit the required financial statements in compliance with the Act. I have provided, and will continue to provide all the information and explanations as maybe required in connection with these financial statements. To the best of my knowledge and belief, these financial statements agree with the books of account, which have been properly kept. I accept responsibility for the integrity and objectivity of these financial statements, the financial information they contain and t i-hrcompliance with the Public Finance Management Act, 2015 as amended. S ig n ed ....... . . .... .............. ... ............... KETTY LAMARO Accountin ffice .4&(9-f o Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Commentary on the Financial Statements by the Accounting Officer General Information about the Reporting Entity Please provide the following information within a maximum of a three (3) page commentary! Principal Activity of the Vote The Ministry of Education and Sports (MoES), is a cabinet-level ministry of Uganda. It is mandated to provide technical support, guide, coordinate, regulate and promote quality education, training and sports to all persons in Uganda for national integration, development and individual advancement", according to the website of the ministry. The Ministry operates autonomously as Vote Number 013. As part of its mandate, the MoES also implements projects fully funded or co-funded by External Development Partners. The Albertine Region Sustainable Development Project (ARSDP) is one of the projects, and the MoES implements Component 3 of the project. Key Performance highlights Summary Physical Performance for the FY 2020/2021 Component Physical Performance Component 3: Skills Access and Upgrading Sub-Component 3.1: 1) International Accreditation and Certification of UPIK and UTC Improving institutions in the Kichwamba Albertine Region and i. Procure OPITO for re-assessment of UPIK: Completed. UPIK was re- establishing mechanism for the assessed and approved for accreditation by OPITO. coordination for skill ii. Procure OPITO for accreditation of UPIK: At Contract signing stage. development. Procure City & Guilds for assessment and accreditation of UPIK and UTC Kichwamba: Completed. Both UPIK and UTC Kichwamba got accredited by City & Guilds. 2) Upgrading UPIK and UTC Kichwamba into Centers of Excellence (a) UPIK 1, Procurement of Twinning Training institutions to support UPIK to become Centers of Excellence in Oil and Gas related trades: Procurement completed. Implementation was at 58% completion. ii. Construction and upgrading of facilities at UPIK (original scope of 4 workshops) - Ambitious Construction Company Ltd: 100% completed on 8th March 2021. Occupation permit obtained and facilities handed over to Institute. iii. Extra works (1 workshop, Institute gate and 1.2 kms road and external works) - Ambitious Construction Company Ltd: Works commenced on 8tl1 March 2021. Physical progress was at 85%. (b) UTC Kichwamba i. Procurement of Twinning Training institutions to support UTC Kichwamba to become Centers of Excellence in Oil and Gas construction related trades: Procurement completed. Implementation was at 70% completion. ii. Construction and upgrading of facilities at UTC Kichwamba (original _ scnpe of 3 ,workshopt) - Sarick Construction Ltd: Works Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports - ARSDP Project Component 3 Component Physical Performance commenced on 9,h July 2020. Physical progress was at 70% as of 30th June 2021. iii. Extra works (1 workshop and external works) - Ambitious Construction Company Ltd: Works commenced on 4b May 2021. Physical progress was at 20% as of 30h June 2021. 3) Establishment of a New Institute in Nwoya District i. Procure an engineering firm to design infrastructure for the new institution in Nwoya and carry out ESIA: Infrastructure designs for the new institute and a draft ESIA report in place. 4) Supply and Delivery of Equipment, Vehicles and Furniture (a) UPIK i. Supply, delivery, installation and training of technicians and user on equipment for Lot 1 and Lot 2 supplies completed. ii. Supply, delivery, installation and training of technicians and user on equipment for Lot 3 in progress. iii. Supply of furniture completed. (b) UTC Kichwamba: i. Supply and Delivery of equipment for Lot 2(a) is completed. ii. Supply, Delivery and Installation of fume extractors and electrical wiring benches is completed; iii. Supply of a Pick-Up completed. iv. Supply of a 64-seater bus completed. 5) Training of targeted 440 students at UPIK and UTC Kichwamba i. Training of targeted 200 students at UPIK: 80 students enrolled for Electrical and Mechanical Maintenance. Training will resume when schools reopen. ii. Training of targeted 240 students at UTC Kichwamba: 122 students enrolled for welding and fabrication, plumbing and pipe fitting and electrical installation. Trainii)g will resume when schools reopen. Sub-Component 3.2: 1) Provide Bursary to 600 learners from the Albertine Region Improving access to relevant skills training programs through i. Training started for 571 beneficiaries enrolled. provision of bursaries to people from the region. I Risk Management Practice and Internal Control The vote maintained a system of internal control through; i) Senior Management who are accountable for all risk assumed under their respective areas of responsibilies as well as cotrols to address those risk ii) Monitoring and evaluation team which is charged monitoring of risk management and control activities to ensure compliance with policies and regulations iii) Internal audit function whuch provide independent assurance on the adequacy and reliability of all risk management, control and governance process in the Ministry. iv) The audit committee of the education and social services sector oversees the Ministry operation of governance, risk management and control process. The committee also oversees the operations of the Ministry internal audit fuction. The Ministry organizes and hold quarterly finance committee meetings to allocate funds and review quarterly departmental performance. Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministy ofEducadon and Sports - ARSDP Project Component 3 At the ARSDP Project Coordination Unit, Risk Management and Internal Control are enchoed through the Project leadrship at including the Project Coordinator, M& E Specialist, Financial Management Specialist and other staff. PCU Staff are are guided by a number documents including the Financing Agreement (and amendments therefore of, Project Appraisal Document, Project Disbursement Letter, The Public Finance Management Act 2015, Teasury Instructions, among others. Comment on the Payroll for both salary and Pensions The ARSDP project payroll is processed independent of the Ministry of Public Service. Monthly payroll is originated and approval is sought through the Human Resources Department of the Ministry, after which net payments to individuals and statutory deductions are remitted to relevant authorities. Action on Parliamentary Recommendations Listed below are some of the OAG recommendations in the report for the financial year 20219/20. 1. Refund of funds due to ineligible expenditure to the ARSDP Designated Account. There was a refund of UGX68,678,560/= to the IDA Designated Account for ineligible expenditure reported in the audit repon. for the financial year ended 30 June 2020. S ig n ed ......... ............. ............. .......... KETTY LAMARO Accountin Office r Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Commentary on the Financial Statements by the Head of Accounts Give a maximum of a three-page commentary on financial performance and financial position of the vote covering a trend analysis in comparison to previous year's performance. 1) Commentary on the Income and Expenditure of the vote against budget IDA Funding GOU Counter part APPROVED UGX 38,380,500,000 2,938,968,000 US$ Equivalent $10,513,362 UGX 32,867,541,483 2,663,410,500 RELEASE US$ Equivalent $8,959,545 % RELEASE 85% 91% UGX 30,339,110,117 1,791,133,153 SPENT US$ Equivalent $8,267,243 % SPENT 95% 23% Since ARSDP Inception, the financial performance of the Project is summarised below: Status as at 30 June 2021 %ge Credit Amount allocated to ARSDP-Comp 3 Amount (US$) (i) Credit Amount from IDA (USD) $25,000,000 (ii) Revised Credit Amount from IDA USD $34,299,830 (2,000,000+ 1,561,715+7,738,115) (iii) GoU Counterpart funds $2,000,000 Total Amount for ARSDP-Comp 3 (IDA + GoU) $36,299,830 Disbursement/Release from IDA and GoU (i) Amount Disbursed (from IDA) $24,504,726 71% (ii) Amount Disbursed/released from (GoU) $1,036,540 52% Total Disbursed/released from (IDA + GoU) $25,541,266 70% Commitments Committed Amount on IDA funds $23,752,946 Committed Amount on GoU $549,772 Expenditure Expended Amount from IDA (against Disbursement) $16,378,824 67% Expended Amount from GoU (disbursement) $321,717 31/s The project realized disbursement/release from the World Bank of IJS$8,959,545 (equivalent to UGX32,867,541,483), accounting for 85% of the appropriated budget. Out of this release, US$8,499,647 was absorbed, accounting for 95%. The Project also realised GOU releases totaling to UGX2,663,410,500/= accounting for 91% of the appropriated figure. Out of this appropriated release, UGX606,737,814/= was spent (in addition UGX1,388,257,821 was expensed after KPMG accounted for bursary funds brought forward, thus total expenditure under GOU of UGX1,791,133,153) accounting for 23% of the release; and UGX1,878,852,747/= was paid out to KPMG for bursary scheme scholarships and is yet to be accounted for. This amount is currently reported among project receivables under GOU counterpart. Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports - ARSDP Project Component 3 2) Comment on the Assets and Liabilities of the vote and mention any significant acquisition or disposal of asset as well as liability incurred or settled during the reporting period. Generally, expenditure is recognized when it is incurred. Qualifying unsettled expenditure is recognised in the Statement of Financial position as payables. Payments of pension to existing retirees are recognized in the statement of financial performance and any arrears on such payments recognised in the statement of financial position. However, the project did not have any outstanding liabilities as at 30 June 2021. 3) Comment on any multiyear commitments and outstanding obligations by year end Implementation of most project activities is done through contracts signed with providers. Such contracts include those for Twinning Institutions, Civil Works, Supply and delivery of Technical Education Equipment. 4) Comment(s)/ explanatory notes on any adjustments made in the Statement of Changes in Equity or Reconciliation of movement of cash during the year if any. There were no adjustments made to the Statement of Changes in Equity for ARSDP Financial Statements. 5) Departure from accounting principles or practice and justification if any There were no departures from accounting principles or practices while preparing the ARSDP Project financial statements for the year ended 30"' June 2021. 6) Any other information that is deemed relevant by the Head of Accounts a) We would like to present the summary of donor funds movement during the year. This is well illustrated by the Designated Account Activity Statement: Iotes 2021 2020 _________________Not es Opening Balance as at July 01 $10,345,780.97 $5,496,064.86 Add Total IDA Replenishments 3 $8,959,545.00 $6,121,651.00 $19,305,325.97 $11,617,715.86 Less Eligible exp_cndiure Expenditure _ 7,8,9 ($8,267,243.19) ($1,271,934.89) Receivables 19 ($2,830,336.62) - Total ($11,097,579.80) ($1,271,934.89) Closing Bank Balance as at 30th June $8,207,746.17 $10,345780.97 Reconciled Bank Balance as at 30th June 18 $8,207,746.17 $10,345,780.97 b) Commentary on Foreign Exchange rate loss of UGX1,525,875,664/= The project receives donor funds in United States Dollars. Funds flow arrangements under the project require that funds are maintained primarily on the US Dollar Bank Account (ie The Designated Account) except when expenditure designated in local currency is to be paid out. Transitions for both disbursements from donor and donor expenditure during the year are recorded at ruling Bank of Uganda exchange rates and equivalent amounts are reflected in Uganda Shillings. Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 At the reporting date, since the project's reporting currency is in Uganda Shillings, IPSAS 4 requires that the Designated Account balances are revalued, for the purpose of re-stating the US Dollars into Uganda Shillings, at the closing exchange rate. Project receivables and payables, if any, are also re-stated using the same rate. The cumulative effect of such individual transactions throughout the financial year, plus the revaluations carried out at the close of the financial year are the foreign exchange differences. The resulting exchange rate differences are recognized as a gain or as a loss in the Statement of Income and Expenditure. Project Management revalued the Closing Balance on the Designated Account of US$ $6,741,605.40 at a dosing exchange rate of 3,554.07; giving rise to a foreign exchange loss of UGX1,525,875,664 as detailed below. Tnslati[i / orcign exchange loss Item Amount DA Balance as at 30 June 2021 $6,741,605.40 UGX equiv. before Revaluation 25,486,013,168 UGX equiv. after Revaluation 23,960,137.504 Exchange rate loss on revaluation 1,525,875,664 I take full responsibility for the completeness and integrity of these Financial Statements. Sign ed . .......... . ....... .. .. . .............. . ... Kenneth T. Mugumya Head Accoum? Date Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Statement of Financial Performance [Based on classification of expenditures by nature] Actual Actual Note 30-Jun-21 30-Jun-20 IDA GOU IDA GOU UGX [ S. UGX UGX E UGX OPERATING REVENUE Taxes 2-- External Assistance 3 32,867,541,483 $8,959,545 22,836,141,213 $6,121,651 Transfers received from Treasury- UCF 4 2,663,410,500 2,841,296,018 Transfers received from Other Government units Non Tax revenue 6 - Total Operating Revenue 32,867,541,483 $8,959,545 2,663,410,500 22,836,141,213 $6,121,651 2,841,296,018 OPERATING EXPENSES Employee costs 7 566.7 157775 205,061,451 527,195,220 $140,767 286,947,856 Goods snd services consumed 8 3,127,489,979 - 850.740 1,791,133,153 3,829,760,608 $1,131,168 477,613,011 Consumption of property, plant 9 26,644,852,679 $7,258,728 & atu meat Subsidies 10 Transfers to other 11 Orkanisations Social benefits 12 Other operating expenses 13,2. Total operating expenses 30,339,110,117 $8,267,243 1,996,194,604 4,356,955,828 $1,271,935 764,560,867 Excess of revenue over expenditure from operating 2,528,431,366 $692,302 667,215,896 18,479,185,385 $4,849,716 2,076,735,151 activties Foreign exchange loss/Gain 14 1,525,875,664 192,352,348 Finance costs 1 Bad debts expense I 16. Transfers to Treasury 17(a) - 176,620,970 97,555,339 Excs f evenu over 1,979,179,812 expndu r r $692,32 ,94,926 18,286,833.837 $4,849,716 Ketty Larnaro Accounting Officer Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Statement of Financial Position Notes 30-Jun-21 30-Jun-20 IDA GOU IDA GOU _ _ _ _(Shs) US38S (Shs) (Shs) US$ (Shs) ASSETS Cash and cash equivalents 18 29.300.851,802 $8.207.746 38,645.345,787 $10345,781 Receivables 19 10.347,049,687 S2.830.337 2,469,774,738 - - 1979.179.812 Investments 20 - - - Investment ProDerties 21 - . . Non Produced Assets 22 - - Total Assets 39,647,901,489 $11,038,083 2,469,774,738 38.645,345,787 $10.345781 1.979,179,812 LIABILITIES Borrowings 23 Pavables 24 Deposits 25 Pension Linbility 26 Total Liabilities . Net assets (liabilities) 39,647,901,489 $11,038,083 2,469,774,738 38,645,345,787 $10.345,781 1,979,179,812 REPRESENTED BY:- Net Worth 39,647,901,489 $11,038,083 2,469,774,738 38,645,345,787 $10,345.781 1,979,179,812 Statement of Changes in Equity (Net Worth) 30-Jun-21 30-Jun-20 Notes IDA____ GOU IDA GOU (Shs) US$ (Shs) (Shs) US$ (Shsl At 1 July - Net worth last Year (B/F) 38,645,345,787 $10,345.781 1,979,179,812 20,358,512,750 554961065 Less:Transfers to the UCF account 17(b) - +/- Balance sheet adjustments 27 _ - 1.979.179.812 Revaluation reserves Add: Excess of revenue over expenditure for the Year 1,002,555,702 S692,302 490,594,926 18,286,833,037 $4,849,716 Closing Net Financial Worth 39,647,901,489 $11 ,038,083 2,469,774,738 38,645,345,787 $10345781 Ketty Lamaro Accounting Officer Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Cash flow Statement for the year ended [Direct Method] 30-Jun-21 30-Jun-20 IDA GOU IDA GOU (Shs) us$ (Shs) (Shs) US$ (Shs) CASH FLOWS FROM OPERATING ACTIVITIES Re som CC eaumg r)sco ie bel..w) 32.867,541,483 $8.959,545 4,051.668.321 22,836.141.213 56,121,651 2,841,296,018 PAYMI-NTS FO OPERAT[NG EXPENSES: E Cm, tt_o 566.767,458 $157,775 205.061,451 527.195,220 $140,767 286,947,856 Goods and services consumed 3,127,489,979 5850.740 1,791,133.153 3,829,760.608 $1.131,168 477,613,011 Subsidies - T.tolL lsI. Lu l I i plL .ql je,r Sodal benefits Other Te_xpens____ Forn -iuglgf/pm1,525,875,664 192.352348 N l i _ _L 5,987.401,674 $1639486 I,878,852,747 $0 1.979.179.812 Domestic arrteae tpii L rTi the p.u Losses of cash Letters of Credit receivable 4.359,648,013 $1,190,851 _50 Total piyments for ui,1 activities ____ 15,567,182,788 $3,838,851 3.875,047,351 4.549,308,176 $1,271,935 2,743,740,679 Net cash in · /(omiuw . .npermL x rivli ir- 17,300.358,694 $5.120,694 176,620,970 18,286,833,037 $4.849,716 97,555,339 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of lpLJ L Py, LI | 11, tci -- hlire uf non-pmsic l sts 26.644.852.679 $7.258.728 - - Proceeds from sale of_epcay, li:pirt tme - - Purchase of investments Proceeds from sale of srn-u - Nei elus inflw./ mtlttws} Irrm i vest iitg activities 26,644.852,679 $7,258.728 - - I CASI FLOWS FROM IINAN:INGI ACTIVITIES Proceeds 1rmm) ca:m NII I L 'wi -- - Repiaymenu re l sts 10 tl I... . I. ni rrW 9 . - P lnl r~m other 1, m m,i . b.ii,i-.iis, Rý yesn of other donestic hi,rowms - - Net cash flows from xri an c ri getivities - Nei ittmas (dLeca ) u ec, and cath etiiut,s (9,344,493,985) -($2,138.035) 176.620,970 18.286.833.037 $4.849.716 97,555,339 Ketty Lamaro Accounting Officer Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Cash flow Statement for the year ended (continued) For cash flow purposes receipts from revenue comprise 30-Jun-21 30-Jun-20 Notes IDA GOU IDA GOU (Shs) US$ (Shs) (She) U$ (She) Total Revenue as per Statement of Financial Performance 32867,541,483 $8.959.545 2,663,410.500 22.836,141.213 $6,121.651 2.841.296.018 Add : Advances recovered during the year . 1.388,257,821 - - Revenue receivable collected during the period Deposits received Total Revenue Less: Grants received in Kind Revenue in Kind (Tax waivers) Transfers to Treasury (17a) Revenue Receivable for the reporting period .__ Tol reene received fot Cesh flow tatreaet purpoRes 32,867,541,483 $8,959,545 4.051.668,321 22.836,141.213 $6,121,651 2,841,296,018 Reconciliation of movement of cash during the year Notes 30-Jun-21 30-Jun-20 IDA GOU IDA GOU (Shs) IT5 (Shs) (She) us$ (She) At the beginning of the year 38,645,345,787 510,345,781 - 20,358.512,750 $5.496.065 - Less: Transfers to the UCF account (Previous Year Balances) 17b) (176,620,970) 97.555.339 Add/ (Less): Adjustments in cash 27 and cash equivalents (344.493.985). -($2,138.035) . 18,286,833037 $4,849.716 - 97,555.339 Net increase (decrease) of cash from the Cash flow Statement I 176.620,970 - At ohc ed of the ytar 29.300.851,802 $8.2078746.4 38,645,345,787 $10,345,781 For purposes of the cash flow statement, cash and cash equivalents comprise 30-Jun-21 30-Jun-20 Notes IDA 6OU IDA GOU (Shs) US$ (Shs) (She) us$ (She) Cash and cash equivalents 18 29.300.851.802 38,207,746 . 38,645,345,787 $5,496,065 Cash ank kank balances 29,300,851.802 $8,207,746 - 38.645.345.787 $5,496,065 Ketty Lamaro Accounting Officer Govetunient of the Riepublic if 1 ganih, Financial Statements for the Fin.,nwial Year enih-fl 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Statement of Appropriation Account [Based on Services Voted] Initial Approved Budget Revised Warrants Actual Variance Variance 30-jun-21 Approved 30-Jun-21 30-Jun-21 Revised Budget Warrants Vs Budget Vs Actual Actual 30-Jun-21 30-Jun-21 30-jun-21 (Shs) (Shs)(Shs) (Shs) (Shs) (Shs) (Shs) (Shs) (a) (b) (c) (d) (b-d) (c-d) REVENUE Taxes - . External Assistance 38,380,500,000 38,380,500,000 30,235,092,523 32,867,541,483 5,512,958,517 - f e2,632448,960 Treasury- UiCF 2,938,968,000 2,938,968,000 2,663,410,500 2,663,410,500 275,557,500 Transfers received from Other Government units Non Tax revenue Total Revenue 41,319,468.000 41,319,468,000 32,898,503,023 35,530,951,983 5,788,516,017 2,632448,960 EXPENDITURE - by services voted Employee Costs 1,207,598,000 1,207,598,000 1,017,472,768 771,828,909 435,769,091 245,643,859 Allowances . 106,050,000 106,050,000 95,445,000 95,196,447 10,853,553 248,553 Adverts & PR 37,599,000 37,599,000 31,814,526 21,319,300 16,279,700 10,495,226 Wrkshops & Seminars 89,275,000 89,275,000 70,080,204 35,580,000 53,695,000 34,500,204 Welfare & Entertainment 40,000,000 40,000,000 36,000,000 36,000,000 4,000,000 Stationary & Printing 20,394,000 20,394,000 18,354,708 18,354,701 2,039,299 7 Electricity 300,000 300,000 221,929 - 300,000 221,929 Consultancy Long term 3,500,000,000 3,500,000,000 2,760,868,509 2,529,218,047 970,781,953 231,650,462 Travel Inland 531,962,000 531,962,000 414,670,313 121,533,917 410,428,083 293,136,396 Travel Abroad 200,000,000 200,000,000 138,157,032 109,457,004 90,542,996 28,700,028 Fuel, Lubricants & Oils 141,680,000 141,680,000 120,758,516 54,180,000 87,500,000 66,578,516 Maintenance Civil 35,000,000 35,000,000 25,891,644 - 35,000,000 25,891,644 Maintenance Vehicles 50,000,000 50,000,000 40,192,838 17,732,000 32,268,000 22,460,838 Training 3,122,550,000 3,122,550,000 2,465,218,753 - 3,122,550,000 2,465,218,753 Bursary / Scholarships 2,086,560,000 2,086,560,000 1,880,051,716 1,880,051,716 206,508,284 Machinary & Equipment 8,500,000,000 8,500,000,000 6,704,966,380 9,688,913,866 1,188,913,866 2,983,947,486 Non-Residential Buildings 21,650,500,000 21,650,500,000 17,078,338,187 16,955,938,814 4,694,561,186 122,399,373 Tota Expeuiditure 41,319,468,000 41,319,468,000 32,898,503,023 32,335,304,721 8,984,163,279 563198,302 Less: Tr:ii,fri to Treasury Net Revenu) / nditute - - - 3,019,026,292 (3,195,647,262) (3,195,647,262) Ketty Lamaro Accounting Officer Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports - ARSDP Project Component 3 Statement of Appropriation Account [based on nature of expenditure] Initial Approved Revised Approved Warrants Actu Variance Variance Budget _ Budget 30-Jun-21 30-Jun-21 30-Jun-21 30-Jun-21 Revised Budget Warrants Vs Ju Vs Actual Actual 30-Jun-21 30-Jun-21 (Shs) (Shs) (Shs) (b-d) (Shs) (a) (b) (Shs) (Shs) (c-d) (c) (d) REVENUE Taxes External Assistance 38,380,500,000 38,380,500,000 30,235,092,523 32,867,541,483 5,512,958,517.35 2,632,448.960 Transfers received from 2,938,968,000 2,938,968,000 2,663,410,500 2,663,410,500 275,557,500 Treasury- UCF Transfers received from Other Government units Non Tax revenue Total Revenue 41,319,468,000 41,319,468,000 32,898,503,023 35,530,951,983 5,188,516,017 - .2632,448,1960. EXPENDITURE - by nature of expenditure Employee costs 980,461,000 980,461,000 1,017,472,768 566,767,458 413,693,542 450,705,310 Goods and services 10,189,007,000 10,189,007,000 8,097,725,688 3,127,489,979 7,061,517,021 4,970,235,709 consumed Consumption of propert, 30,150,000,000 30,150,000,000 23,783,304,567 26,644,852,679 3,505,147,321 2,861,548,112 plant & equipment2,65412 Subsidies Transfers to other Organizations Social benefits Other expenses - GOU - 1,996,194,604 1,996,194,604 1,996,194,604 Domestic arrears paid - Finance costs Total Expendihure 41,319,468,000 41,319,468,000 32,898,503,023 32,335,304,721 8,984,163,279 563198,302. Less: Transfers to Treasurv (17a) 176,620,970 Net Revenu xpenditure - - 3,019,026,292 (3,1495,647,262) Ketty Lamaro Accounting Officer Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Reconciliation between total expenditure per Appropriation Accounts and per Statement of Financial Performance Actual Actual 30 June 2021 30 June 2020 (Shs) (Shs) Total expenditure per Appropriation Account 32,335,304,721 5,121,516,695 Add: Letters of credit receivable prior year but delivered during the year Accrued expenditure Prepayments performed 10,347,049,688 Less: Letters of credit receivable at year-end (4,359,648,013) Domestic Arrears paid Non produced assets for the period Prepayments for the period (5.987,401,674) Total Expenditure per Statement of Financial 32,335,304,721 5,121,516,695 Perfbr4ance Ketty Lamaro Accounting Officer Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Notes to the Financial Statements Note 1(a): Accounting Policies These are the specific principles, bases, conventions, rules and practices adopted by the Government of the Republic of Uganda in preparing and presenting the financial statements. The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied in all material aspects unless otherwise stated. (i) General Information As required by Sections 50(1) and 51(1) of the Public Finance Management Act, 2015, each vote shall prepare financial statements and submit a copy to the Accountant General. The Annual Accounts shall be submitted for Audit to the Auditor General. (ii) Reporting Entity The Ministry of Education and Sports is a reporting entity of the Government of the Republic of Uganda and is domiciled in Uganda. The principal address of the entity is: Ministry of Education and Sports Embassy House; King George VI Way, at the corner with Parliament Avenue P.O. Box 7063 Email: n Website: www.education.go.ug (iii) The Consolidated Fund Is the Consolidated Fund as established by the Article 153 of the Constitution of the Republic of Uganda. As provided by Section 30 of the Public Finance Management Act, 2015 (the Act), it is the Fund into which all revenues or other money raised or received for the purpose of the Government shall be paid. Except for receivables into another public fund established for a special purpose (for example the Petroleum Fund) where this is authorized by an Act of Parliament, or where a vote, state enterprise or public corporation shall retain revenue collected or received as authorized through an appropriation by Parliament or is a monetary grant exempted under Section 44 of the ACT. Withdrawals from the Consolidated Fund shall only be done upon the authority of a warrant of expenditure issued by the Minister of Finance to the Accountant General after a grant of credit has been issued to the Minister by the Auditor General in the first instance. The withdrawal can be effected only when: (a) the expenditure has been authorized by an Appropriation Act or a Supplementary Appropriation Act; (b) is a statutory expenditure; (c) for repaying funds received in error by the Consolidated Fund; (d) and for paying sums required for an advance, refund, rebate or drawback that are provided for in this and other Act of Parliament. (iv) Classified expenditures Classified expenditures are included under supply of goods and services in the Statement of Finaicial Performance, and are audited separately. The funds appropriated for classified expenditure shall only be used for defense and national security purposes. A committee of Parliament comprising the chairpersons of the committees responsible for budget; defense and internal affairs; and another member appointed by the Speaker will be responsible for scrutiny of classified expenditure budget. Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports - ARSDP Project Component 3 (v) Basis of preparation of financial statements The financial statements have been prepared in accordance with the requirements of the Public Finance Management Act, 2015 [the Act] and comply with generally accepted accounting principles. The Financial Statements have been prepared using the modified accrual basis of accounting. The modified accrual basis of accounting recognizes revenue when earned with the exception of revenue from taxes and grants that is recognised when received. Expenses are recognised when incurred resulting into recognition of payables in the statement of financial position. All non-current assets with the exception of non-produced assets are expensed 100% in the year of acquisition in the statement of financial performance. (vi) Going concern consideration The financial statements have been prepared on a going concern basis. (vii) Presentation currency The reporting and presentation currency is the Uganda Shilling (Shs), which is the functional currency of the Republic of Uganda. Items included in the financial statements are measured in the currency of the primary economic environment in which the entity operates. (viii) Reporting Period The reporting period for these financial statements is from 1 July 2020 to the next 30 June 2021. Prior period comparative information has been presented in the current year's financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format in the current year's financial statements. (ix) Appropriation The initial approved budget is the original forecast as presented and approved by Parliament. A revised budget is the initial approved budget adjusted by a supplementary and reallocations/ virements. (x) Revenue Revenue represents cash and grants in kind received by the entity during the financial year and comprise; tax and non-tax revenue, transfers received from Treasury, transfers from the Contingency Fund and transfers received from other government units. Revenues are recognized as follows; a) Tax revenues Taxes are levied with the authority of Parliament subject to Article 152 of the Constitution of the Republic of Uganda. Payment of tax does not necessarily result into an entitlement to the taxpayer to receive equivalent value of services or benefits. All tax revenues are recognised when received. b) External Assistance Grants are received by the entity either as cash or in-kind from foreign governments (bilateral) or from international Organizations (multi-lateral). All grants (aid assistance) are recognized as income when received. In-kind receipts (donations) are recognized at fair value when received. c) Transfers received from Treasury Transfers received include; transfers received from the Consolidated Fund, and transfers received from other government units. All transfers are recognized when received by the Accounting Officers. d) Transfers from other government units Comprise funds appropriated under one vote but transferred to another vote for execution of the intended activities of the former. These might include road maintenance funds from the Road fund, immunization funds from Ministry of health among others. These funds are recognised when received. e) Non-Tax Revenue 17 Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Non-Tax Revenue (NTR) refers to all revenue due to government that is not tax revenue. Examples include proceeds from sale of designated goods and services, hire of assets, interest/gains associated from ownership of shares and fines/penalties. NTR whether directly collected by the entity or collected by another on its behalf is recognised when revenue is earned. NTR earned but not received is reported in the statement of Financial Position as receivables. (xi) Expenses Generally, expenditure is recognized when it is incurred. Qualifying' unsettled expenditure is recognised in the Statement of Financial position as payables. Payments of pension to existing retirees are recognized in the statement of financial performance and any arrears on such payments recognised in the statement of financial position. Pension liability for non- retirees is neither recognised nor disclosed in the financial statements. (xii) Property, Plant and Equipment (physical assets or fixed assets) Property, plant and equipment (PPE) principally comprises buildings, dams, roads and highways, hydropower stations, plant, vehicles, equipment, and any other infrastructure assets but does not include land and regenerative natural resources such as forests and mineral resources, Acquisitions of PPE are recorded in the asset register on receipt of the item at cost and expensed fully through the Statement of Financial Performance. Cost of the item is defined as the total cost of acquisition. Where the cost of the PPE cannot be determined accurately, the PPE is stated at fair value. Subsequent repairs and maintenance costs of PPE are also expensed as goods and services consumed in the Statement of Financial Performance. Proceeds from disposal of property, plant and equipment are recognized as non-tax revenue in the period in which it is received. (xiii) Translation of transactions in foreign currency Foreign currency transactions are translated into Uganda Shillings using the exchange rates prevailing at the dates of the transactions (spot rates). These result into realized gains/losses which are recognized in the Statement of Financial Performance. Foreign currency assets and liabilities held by the entity at year-end are translated into Uganda Shillings using the period closing rate for reporting purposes resulting into unrealized gains/losses. The unrealized gains/losses are recognized in the statement of changes in Equity through the revaluation reserve. (xiv) Revaluation Gains/Losses Unrealized gains or losses arising from changes in the value of investments, marketable securities held for investment purposes, and from changes in the values of property, plant and equipments are not recognized in the financial statements. (xv) Cash and cash equivalents Cash and cash equivalents are carried in the balance sheet at cost. For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held at call with banks, other short-term highly liquid investments, and bank overdrafts. (xvi) Unspent cash balances In accordance with the requirement of the Public Finance Management Act, 2015, unspent cash balances by Government entities at the end of the financial year are returned through the Single Treasury Account (TSA) to the Consolidated Fund. With the commencement of the TSA, votes fully operational on IFMS no longer have unspent cash balances for Transfers received by MALGs from the Treasury. Escrow Account balances are to be recognized in the Financial Position of the responsible entity and expensed through the Financial Performance in the period when funds are utilized. (xvii) Receivables A//p'ales sboald be irfied/y the IntemwalAudi anda cor.. issued sitnd by theAcconfa(eficer, Head ofInterna/Andit and Head of Acronts/ fPiaunce. Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 (a) Accrued Non-Tax Revenue and Advances Receivables include revenue earned but not collected and advances not retired by the reporting date. These are carried at historical cost and are written down by recovered receipts or write-off of unrecoverable amounts (bad debts are written-off with the approval of Parliament, when identified in the Statement of Changes in Equity). (b) Letters of credit Procurement of goods and services through letters of credit which are cash covered are recognized in the statement of appropriation when the letter of credit is opened. Outstanding letters of credit at period-end are treated as receivable and expensed through the Statement of Financial Performance in the period when the goods and services are delivered. (c) Other Receivables These include expenditure paid for but not consumed during the financial year. Examples include rent expenditure paid for the period crossing financial years. (xviii) Inventories Comprise consumable supplies and goods purchased for resale. All inventories are expensed in the period in which they are acquired. (xix) Investment properties Investment property principally comprises land, office, commercial and residential buildings, and other physical assets, which is held for long-term rental income and is not occupied internally. Investment property is treated as a long-term investment and is carried at cost. Investment properties are currently not recognised in the financial statements. (xx) Investments Investments are classified into three groups, namely: investments held for trading; investments held-to-maturity; and investments available-for-sale. Investments that are acquired principally for the purposes of generating profit from short-term fluctuations in price are classified as "trading investments", and are, therefore, current assets and are treated as monetary assets. Investments with fixed maturities and there is an intention and ability to hold them to maturity dates are classified as "Investments held-to-maturity", and are, therefore, non-current assets, and are treated as non- monetary assets. Investments intended to be held for an indefinite period of time, which may be sold in response to liquidity needs or changes in interest rates, are classified as "investments available-for-sale", and are therefore non-current assets and regarded as non-monetary assets. However, if there is an expressed intention to sell these within 12 months, then these are treated as current assets and are monetary assets. Appropriate classification of investments at the time of purchase and re-evaluation of such designation are carried out on a regular basis but any resulting reclassifications are rare and cannot be made from "trading investments" to "investments held to maturity" All investments in the balance sheet are carried at historical cost. Non-financial assets are measured at net worth. For investments quoted in foreign currency, the historical cost is translated at the closing rate. (xxi) Projects expenditure Government projects are a series of undertakings of a reporting entity with specific objectives and a defined time frame and could be either: (a) fully funded by a Government; (b) jointly funded by Government and a development partner; (c) fully funded by a development partner through either Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports - ARSDP Project Component 3 budget support or project support; and (d) fully funded by development partner through provision of physical items rather than funds. Fully or partly Government funded project expenditure is recognized in the statement of financial performance of the reporting entity to the extent of funding received from Government. Project expenditure that is not recognised is disclosed in the statement/schedule of project/ subvention balances. (xxii) Borrowings Borrowings are initially recorded in the Statement of Financial Position [the balance sheet] at cost net of any transaction costs paid. Interest expense and any other expense on borrowings are recognized in the Statement of Financial Performance when they fall due. (xxiii) Employee benefits Employee benefits include salaries, and other related-employment costs. Employee benefits are recognized when incurred, No provision is made for accrued leave or reimbursable duty allowances. (xxiv) Contingent liabilities and assets Contingent liabilities are disclosed in a memorandum statement (Statement of Contingent liabilities) of the entity when it's probable that an outflow of economic benefits or service potential will flow from the entity or when an outflow of economic benefits or service potential is probable but cannot be measured reliably. Contingent liabilities comprise government guarantees issued, court awards that have been appealed by the Attorney General, those arising from Public Private Partnerships (PPPs) etc. Non quantifiable contingent liabilities are disclosed in the memorandum statement of Non quantifiable contingent liabilities. Contingent assets are neither recognized nor disclosed. (xxv) Outstanding Commitments Commitments include operating and capital commitments arising from non-cancelable contractual or statutory obligations. Loan interest due but not paid is recognised in the Statement of Financial Position. The loan interest not yet due for payment is not recognised but disclosed. Outstanding commitments relating to non-cancelable contractual or statutory obligation where goods have been delivered or service provided are included in the statement of financial position as payables and in the Statement of Outstanding Commitments to the extent of the appropnation. (xxvi) Public Private Partnerships Any investment by the Government in a Public Private Partnership may be through a joint venture or as an associate or as a major shareholder. Except for the latter, these are accounted for as investments whether held for trading purposes or otherwise. The financial statements in that case are consolidated as if the other entity is a controlled entity in accordance with IPSAS 38. In other instances where the Government provides certain guarantees which could crystalize and result into an outflow of resources, the guarantees are quantified and disclosed in the memorandum Statement of Contingent Liabilities. The amounts disclosed as part of contingent liabilities represent the most likely outflow of resources should certain events crystalize which are assessed annually. If the events crystalize, the amounts become payables through the Statement of Financial Performance and Statement of Financial Position on an accrual basis Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Other Notes to the Financial Statements Note 1(b): Exchange Rates All monetary amounts in the financial statements are expressed in Uganda Shillings, the functional currency. The Uganda Shilling closing rates (the Bank of Uganda middle rate) for major currencies were: 30 June 2021 30 June 2020 United States Dollar 3,554.07 3,730.33 British Pound 4,934.84 4,595.70 Euro 4,240.63 4,179.17 Note 2: Tax Revenues Tax revenues comprise both direct and indirect taxes levied and collected on behalf of Government. 30 June 2021 30 June 2020 (Shs) (Shs) Local Services Tax Land fees Business Licenses Other tax revenues Total taxation revenues Note 3: External Assistance 30-Jun-21 30-Jun-20 (Shs) US$ (Shs) US$ Grants from foreign governments - Grants from International Organizations 32,867,541,483 $8,959,545.00 22,836,141,213 $6,121,651.00 Grants from Local sources - Donntions Total Grants J 32,867,541,483 $8,959,545.00 22,836,141,213 $6,121,651.00 Nute 4: Transfers Received Froin the Treasury - Consolidated Fund 30 June 2021 30 June 2020 (Shs) - (Shs) Transfers from the Treasury - (Current & Capital) 2,663,410,500 2,841,296,018 Total Transfers 2,663,410,500 2,841,296,018 Note 5: Transfers received fron Other Government Units Comprise funds appropriated under one vote but transferred to another vote for execution of the intended activities. For instance road maintenance funds, grants recognised by treasury but transferred to other executing MALGS, etc 30 June 2021 30 June 2020 (Shs) (Shs) Transfers received from other Gov't Units - Current (Name of the Government unit) Transfers received from other Gov't units - Capital (Name of the Government unit) Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 |Total Note 6: Non-Tax Revenues Comprise non-tax revenues from exchange transactions collected during the year as follows: 30 June 2021 30 June 2020 (Shs) (Shs) Investment income Dividends Rent Other property income Sale of goods and services Administrative fees and licenses Court fines and Penaities Other fines and Penalties-- M iscellaneous Revenue-- Total Non-Tax Revenue-- Note 7: Employee Costs 30-Jun-21 30-Jun-20 IDA GOU IDA GOU (Shs) US$ (Shs) (Shs) US$ (Shs) Wages and salaries 457,781,744 $127,698 170,477,300 426,693,503.71 $113,932 264,365,362 Social contributions 45,778,174 $12,770 22,633,281 42,669,350.37 $11,393 16,459,126 Other employment $17,308 costs - Gratuity 63,207,540 11,950,870 57,832,365.92 $15,442 6,123,368 Total employee 566,767,458 $157,775 205,061,451 527,195,220 $140,767 286,947,856 costs. Note 8: Goods and Services Expenditure on goods and services during the year principally comprise the following: 30-Jun-21 30-Jun-20 IDA GOU IDA GOU (Shs) _ US$ (Shs) (Shs) US$ (Shs) General expenses 1,220,609,302 $332,625 182,718,962 355,640,600 $105,043 188,657,400 Communications 36,000,000 $9,830 4,182,990 154,560,500 $45,651 5,286,060 Utility and129000 5,3 property expenses 12,950,000 $3,536 853,950 28,200,200 $8,329 16,060,670 Supplies and services 15,378,900 454,007,880 $134,097 18,005,880 Professional 1,254,973,829 $342,691 2,257,806,500 $666,872 -services - 2278650 $6,7 Insurances and licenses - - Travel and 629688 $6,5 transport 602,956,848 $162,057 118,593,917 430,674,980 $127,205 136,450,000 Maintenance - 79,947,644 148,869,948 $43,971 113,153,001 Inventories (goods purchased for - - resale) - - Total cost of goods and 3,127,489,979 $850,739 401,676,363 3,829,760,608 $1,131,168 477,613,011 services Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Noe(9: Consumption of Property Plant andE iquipmlt (Fixed Assers) As explained in accounting policy (xii), property, plant and equipment (physical assets) are expensed in the year of purchase i.e. they are fully expensed in the year of purchase using the cash basis of accounting. 30-Jun-21 I 30-Jun-20 IDA GOU IDA GOU (Shs) US$ (Shs) (Shs) US$ (Shs) Non Residential buildings 16,955,938,814 $4,638,549 - - Residential buildings - - Roads and bridges Transport equipment- - - Machinery and equipment 9,688,913,866 $2,620,180 Furniture and fittings - - Other fixed assets - - Total value of property, plant and equipment expensed 26,644,852,679 $7,258,728 Note 10: Subsidies Subsidies paid during the year are summarized as below: 30 June 2021 30 June 2020 (Shis) (Shs) To public corporations To private enterprises To private individuals tal subsidies for the year Note 11: Transfers to OtiherOrganisations Transfers made during the year are summarized as below: 30 June 2021 30 June 2020 (Shs) (Shs) Transfer to foreign Governments Transfers to International Organisations Transfers to other government units To resident non-government units Total transfers . Note 12: Social Benefits Social benefits paid during the year comprise: 30 June 2021 30 June 2020 Pensions Employer Social benefits Total social benefits 231 Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Noe 13: Other Oper:it ing Expenses These comprise: 30 June 2021 30 June 2020 (Shs) (Shs) Property expenses other than interest Miscell-aneous other expenses- current Miscellaneous other expenses- capital Uotalother operating expenses Note 14:Foeigxchang e ans Gains and Losses During the year, foreign exchange losses and gains were as follows: 30 June 2021 30 June 2020 (Shs)(Shs) Realized loss /gain (SFP) 1,525,875,664 192,352,348 Unrealized loss /gain (SCE) Net foreign exchange gains / losses 1,525,875,664 192,352,348 Note 15: Finance costs Schedule 30th June 2021 30Jun202 (Shs) (Shs) Interest on external debts (external borrowings) - Inter domestic borrowings - Total finance cost Note 16: Bad Debts Expense 30 June 2021 30 June 2020 Shs _Shs Bad debts w/o Pr-ovisionfor the year- Tot-at bad debts. Note 17 (a): Transfers to Treasury These comprise transfers back to the Consolidated Fund of unspent balances from the respective expenditure accounts, transfers of Non tax revenue collected, , unspent salaries, among others for the period. 30-Jun-21 30-jun-20 IDA GOU IDA GOU (Shs) US$ (Shs) (Shs) US$ (Shs) Non Tax revenue . Expenditure account balances -- 176,620,970 - 97,555,339 Other cash balances - - Total fr the year. -- r176,620,970 - 7,555,339 Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Note 17 fb): TLansfers to Treasury These comprise transfers to the Consolidated Fund/ Treasury of Unspent balances, NTR collections, Cash in transit, LCs not performed etc for transactions crossing financial years. 30-Jun-21 30-Jun-20 IDA GOU IDA GOU (Shs) US$ (Shs) (Shs) US$ (Shs) Non Tax revenue - - Expenditure account balances - - 176,620,970 - 97,555,339 Other cash balances - Total for, the year. - - 176,620,970 - - 97,555,339 Note [8: Cash and cash equiv.alents 30-Jun-21 30-Jun-20 IDA GOU IDA GOU (S h s ) U S $ (S h s ) (S h s ) U s $ (S h s ) DOMESTIC Revenue accounts - - Expenditure accounts Project accounts Collection accounts - - Cash in transit Cash at hand - Imprest Others Sub-total cash and bank balances - domestic FOREIGN Revenue Accounts - Expenditure accounts 125,001,895 $34,228 - 91,989,086 $24,562 Project Accounts 29,175,849,907 $8,173,518 - 38.553,356.701 $10,321,219 Collection accounts - - Cash in transit - - Cash at hand- Imprest Others - Sub-total cash and bank 29,300,851,802 $8,207,746 38,645,345,787 $10,345,781 balances - foreign Total cash and 29,300,851,802 $8,207,746 - 38,645,345,787 $10,345,781 bank balances o d h ba Any over drafts sholild be included cinder /h,r respective bank accounts Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry of Education and Sports -ARSDP Project Component 3 Note 19: Net Receivables Comprise the following receivables at the end of the year net of any provision for receivables doubtful of recovery. 30-Jun-21 30-Jun-20 Note IDA GOU IDA GOU (Shs) US$ (Shs) (Shs) US$ (Shs) Total Receivables 19(a) 10,347,049,687 $2,830,337 2,469,774,738 $0 1,979,179,812 Lcss: Provision for 19 doubtful debts - Net Receivables 10,347,049,687!$2,830,337 2,469,774,738 '1,979,179,812 Note 19(a): Total Receivables 30-jun-21 30-jun-20 IDA GOU IDA GOU DOMESTIC (Shs) US$ (Shs) (Sh (Shs) s) $ Accrued Revenue Loans (short-term) - others Advances - Advance guarantees 5,987,401,674 $1,639,486 - - Outstanding letters of credit 4,359,648,013 81190.850.94 - - - Prepayinents - Bursary Scheme - 2,469,774,738 - - 1,979,179,812 Other accounts receivable - . - . - Total domestic receivables 10,347,049,687 $2,830,337 2,469,774,738 - - 1,979,179,812 FOREIGN Accrued Revenue Loans (short-term) - others - - - - - Advances . . . - - Outstanding letters of credit - - - - - Prepayments - - - - - Other accounts receivable . - - - - Total foreign receivables Total receivables 10,347,049,687 $2,830,337 2,469,774,738 - - 1,979,179,812 The ,ing of the receivables is as below;- Current Previous Other Financial Total Financial Year Financial Years Shs Year Shs Shs Shs Accrued revenue1------ Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministiy ofEducation and Sports -ARSDP Project Component 3 Loans and Advances Loans -and Advances Loans and Advances Loans and Advances - - Outstanding letters of credit IDA 4,359,648,013 - 4,359,648,013 Prepayments - Advance guarantees 5,987,401,674 - 5,987,401,674 Sub-Total IDA Receivables 10,347,049,687 10,347,049,687 Other receivables... Bursary Advances - GOU 1,878,834,747 590,939,991 2,469,774,738 Total Receivables (IDA & GOU) 12,225,884,434 590,939,991 - 12,816,824,425 Note 19(b): Provision for doubiful debts 30 June 2021 30 June 2020 Shs Shs Provision at the beginning of the year- at 1 July J Increase / (decrease) in provision for the year Less: Provision approved for write off during the year Provision at the end of the year Note 20: Investments Comprise investments as follows: 30 June 2021 30 June 2020 (Shs) (Shs) Securities other than shares (long-term) - domestic - Shares and other equity-domestic Securities other than shares-foreign Total invtstmtnts Note 21: Investnent Properties Investment properties comprise properties, which are held either for long term rental income or for capital appreciation or both and are not occupied or used by the Government or any other Government entity. 30 June 2021 30 June 2020 Shs Shs At the beginning of the year - 1 July Additions/acquisitions made during the year Disposals made during the year TotalItivestment Properes Note: Currentlyi we do not recogni5,e investment properties. Note 22: Non Produced Assets 30 June 2021 30 June 2020 (Shs) (Shs) Land Cultivated Assets Other Naturally occurring Assets - - Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Total Non-Produced Assets Note 23: Borrowings 30 June 2021 30 June 2020 (Shs) (Shs) DOMESTIC Loans from commercial banks Interest payable on bank loans/borrowings Other Total domestic borrowings FOREIGN Loans from commercial banks Interest payable on bank loans/borrowings Other Total foreign borrowings Total borrowings Note 24: Pyablcs These are principally accounts payables, domestic and otherwise, outstanding at the year-end and comprise: 30 June 2021 30 June 2020 (Shs) (Shs) Trade Creditors - Sundry Creditors Comnmitted Creditors Accountable advances - Withholdina tax payable Advances from other Government units - Miscellaneous Accounts pavables Total payables - - The categorization and ageing of the ?ayables is as below;.- Current Previous Other Financial Total Financial Year Financial Years Shs Year Shs Shs Shs Utilities |---- Rent - Contributions to International Oreanisations Court Awards & Compensations Taxes and other deductions - Goods and services Consumed - Property Plant & Equipment Others Total Pavables ]- - Government of the Republic of Uganda Financial Statements for Lhe Financial Year ended 30 June 2021 Ministry ofEducadon and Sports -ARSDP Project Component 3 Note 25: Deposits Received These include deposits received which are funds held by the vote for onward transfer to another vote, entity, or individual(s) and Deferred Revenue which is revenue received but services have not yet been rendered. Total amounts recognised as deposits should be supported by an equivalent amount of cash and cash equivalent in note 18 above or Receivables in Note.19 for only Revolving Funds. 30 June 2021 30June 2020 (Shs) (Shs) Deposits received Deferred income Total Deposs.ts Note 26: Pension Pension liabilities have been accrued in the financial statements because it is the policy of Government to pay pensions to all former employees of the Government who qualified for pension under the provisions of the Pensions Act, Cap 281. 30 June 2021 30 June 2020 (Shs) (Shs). Former employees in Public Service Former cmployccs in Military Service Former employees of the Education Service Gratuity Arrears Total The ageing of the pension liabilities is as below;- Incurred in the Incurred in the Other Financial Total current Previous Financial Years Financial Year Year Shs Shs Shs Shs Pensions - - Gratuity - - Total - - . Note 27: Adjistmients to reserves This includes adjustments if any made on assets (cash and cash equivalents, receivables, investments, investment properties, non-produced assets) and liabilities (borrowings, payables, deposits received, pension and gratuity liabilities) Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry of Education and Sports - ARSDP Project Component 3 N Opening Adjustmen Transfers to Recovery or Net asset or Closing balance ot balance ts to the UCF(Prior payments liability es le July 2020 opening year towards the incurred/acqui 30 June 2021 balance balance) opening red during the She 17(b) balance year Shs Shs Shs Shs ASSETS Cash and Cash18 3,43577 18 38,645,345,787 - (9,344,493985) 29,300,851,802 Receivables 19 . - Accrued Revenue Loans & Advances - - - - Letters of Credit -[ - 4,359,648,013 4.359,648,013 Prepayments - - - 5,987,401,674 5,987,401,674 Other rccii,bles - GOU 1,979,179,812 (1,388,257,821) 1,878,852,747 2,469.774,738 Investments 20 Investment Properties 21 Non-Produced assets 22 - - - LIABILITIES - - Borrowings 23 Payables 24 Deposits 25 - - - Pensions 26 - Totaf(Dohor & GOU) 40,624,525,599 - - (1,388,257,821) 2,881,408,449 42117,6U,ZZ7 Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Statement of Performance For the year eided 30 June 2021 (Memorandum Statement) Summary of Major Forecast Performance Actual Performance for Explanations for the Outputs for the Vote For FY ended 30 June 2021 the year ended performance variations 30 June 2021 070501 Policies, laws, Staff Salaries, Workshops, Adverts, Books & Staff Salaries, During the year, Twinning guidelines plans and periodicals, stationary, consultancies Workshops, Adverts, Institutions did not complete strategies (8,054,388,000) Books & periodicals, any of their deliverables and stationary, consultancies therefore no invoice was (4,854,575,000) received for payment. Training and Capacity 148 Instructors Trained at I)PIK& UTC Kichwamba 680,920,000 Training of Instructors had Building of BTVET in Oil & Gas related Trades (3,122,550,000) started but was interrupted by Institutions COVID-1 9 lockdowns due to due restrictions on International Travels and closure of education institutions. So less funds were spent. Purchase of Assorted Equipment and Consumables procured 18,713,643,000 3 contracts were signed, advances Specialized Machinery and installed for the UPIK & UTC Kichwamba paid & Letters of credit opened & Equipment (8,500,000,000) for the 3 suppliers & deliveries were still ongoing by 30 June 2021. Request for supplementary appropriation (based on funds brought forward) was submitted. Construction and Civil works at UPIK & UTC Kichwamba 19,645,743,000 By 30 June 2021, civil works rehabilitation of (21,650,500,000) were under implementation at learning facilities. both UPIK & UTC Kichwamba. Ketty Lamato Accounting Officer Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Statement of Revenues collected during the year [Based on source of revenue] Memorandum Statement Actual Actual collected Budget Variance collected 30 June 2021 30 June 2021 30 June 2021 30 June 2020 (Shs) (Shs) (Shs) (Shr) Tux Revenues Local Services Tax - Land fees Business Licenses - Other tax revenues - Non Th.v Revemies - Investment income - Dividends - Rent Other property income (disposal of assets) Sale of goods and services - - Administrative fees and licenses Court fines and Penalties Other fines and Penalties Miscellaneous Revenue Total Revenue - - Ketty Lamaro Accounting Officer Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry of Education and Sports - ARSDP Project Component 3 Statement of Arrears of Revenues [Based on source of revenue per category] (Memorandum Statement) Opening Arrears in A Amounts billed Actual Amounts Arrears of Cumulative Arrears balance collected during during the year collected for the Revenue for the of Revenue as at 01 July 2019 the year year Year 30 June 2021 E F A B C D (C-D) A-B+E (Shs) (Shs) (Shs) (Shs) (Shs) (Shs) RECEIPTS Tax Revenues Local Service Tax Land fees Business Licenses Other tax revenues Non Tax Revenues Investment income Dividends Rent Other property income Sale of goods and services Administrative fees and licenses Court fines and Penalties Other fines and Penalties Miscellaneous Revenue Total Revenue Ketty Lamaro Accounting Officer 33T' Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEduca tion and Sports - ARSDP Project Component 3 Statement of contingent liabilities and guarantees [Memorandum Statement] Schedule 30 June 2021 30 June 2020 (Shs) (Shs) DOMESTIC Legal proceedings - Guarantees and indemnities Guarantees of bank overdrafts Guarantees under Public Private Partnerships - - O1hcr conIigon llties Total Domestic Contingencies FOREIGN Legal prcedings - - Guarantees and indemnities Guarantees of bank overdrafts Guarantees under Public Private Partnerships Other contingent liabilities Total Foreign Contingencies Total Contingent Labilitits Ketty Lamaro Accounting Officer Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports - ARSDP Project Component 3 Statement of non-quantifiable contingent liabilities [MIeIlnralnon Slttement] Serial Brief description of liability, its origin, nature, the Type of Any other No. uncertainty, and period of identification liability comment/responsibility Ketty Lamaro Accounting Officer Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Statement of Outstanding Commitments [Commitments by nature of expenditure] Outstanding Adjustments Prior years New Cumulative commitments to the commitments outstanding outstanding at beginning previous paid during commitments commitments of year year's the year incurred 30 June 2021 1 July 2020 commitments during the year Shs)(Shs) (SSs) (Shs (Shs) Payables & Pension liabilities Operating Commitments Employee costs Pensions Goods and services consumed Subsidies Transfers to Other Organisations Social benefits Other operating expenses Finance costs Total Operating Cornmituncnis Capital Commitmenos Non - productc assets Property Plant Equipment Total Capital commitments Total Comirnments (Operating & Capital) Deposits Received Deposits received Deferred revenue Total Deposits Rectived Total Commitments Ketty Lanaro Accounting Officer Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports - ARSDP Project Component 3 Statement of losses of public money and stores written off, and claims abandoned during the year Reference Opening Losses written- Cumulative number of Balance as at 1 off in the YR Losses written- reported July 2020 ended off as at loss/write 30 June 2021 30 June 2021 off/claim abandoned. Shs) (Shs) (Sis) Losses of public moneys (cash and cash equivalents) Total losses of cash written off Losses of stores . Total losses of stores written off - . Losses of other assets (Property, Plant & Equipment) Total losses of other assets written off Claims abandoned Total value of claims abandoned . Total losses of public funds, stores and claims abandoned - - Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Statement of reported losses of public moneys, stores and other assets whether or not written off during the year Reference Opening Losses for the Cumulative number of Balance as at 1 YR ended Losses as at reported loss/bad July 2020 30 June 2021 30 June 2021 debt iShs) (Shs) (Shs) Bad debts Total bad debts Losses of public moneys reported (cash and cash equivalents) Total losses of cash Losses of stores reported. Taal losses of stores reported Losses of other assets (Property, Plant & Equipment) Total losses of other assets reported - Total losses of public funds, stores and other assets reported - Ketty Lamaro Accounting Officer Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports -ARSDP Project Component 3 Summary statement of stores and other assets (physical assets) as at the end of the year Category/ Description Opening balance Additions during the Disposals during Cumulative at 30 1 July 2020 year the year June 2021 Cost 30 June 2021 30 June 2021 Cost Cost cost (Shs) (Shs) (Shs) (Shs) Non Produced Assets Land - - - Cultivated Assets Other naturally occurring assets - - Buildings & Structures Non Residential buildings Residential buildings Roads and bridges Other structures Transport equipment Motor Vehicles - - - Trailers/ Semi-trailers Ships and other marine vessels Railway locomotives Aircrafts - Motor cycles and Bicycles Other transport equipment Machinery and equipment Office equipment I_-_ - Medical equipment ICT Equipment - - - Laboratory and research equipt Other Machinery & equipment Other Assets Furniture and fittings 1 Classified Assets O thers---- Total value of physical assets acquired, dis ed of and balances Ketty Lamaro Accounting Officer Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministly ofEducation and Sports -ARSDP Project Component 3 Schedule of Letters of Credit Name of ILC Number Date Due date Bank Currency Amount Amount Supplier opened (Foreign (U.Shs) currency) Labx Scientific 991LCFC211270001 17.05.2021 31.01.2022 BOU UGX $958,447.00 3,500,248,430 Limited Devotra B.V Lot 991LCFC210210001 22.01.2021 31.12.2021 BOU US$ 1 $118,460.38 438,051,071 Devotra B.V Lot 991LCFC210200002 22.01.2021 31.12.2021 BOU US$ 2 $113,943.57 421,348,513 - __ __ .-.i_ Total -- - $1,190,850.94 4,359,648,013 Ketty Lamaro Accounting Officer Government of the Republic of Uganda Financial Statements for the Financial Year ended 30 June 2021 Ministry ofEducation and Sports - ARSDP Project Component 3 Schedule of Project and Subvention Balances Project /Subvention End Funding Currency Balance as at 1 Disbursements Payments for Balance as at Name Date Source/Agency July 2020 for the Year the Year 30 June 2021 Project balances _ ARSDP US$ A/C 31.12.22 IDA US$ 38,477,971,070 32,867,541,483 47,385,375,049 23,960,137,504 00022 U RSDPUGXA/C 31.12.22 IDA UGX 75,385,631 34,455,708,000 29,315,381,228 5,215,712,403 00051 UPIK 3112.22 IDA UGX 22,185,542 397,110,000 388.706.627 30,588,915 UTC Kichwamiba 31.12.22 IDA UGX 69.803.544 601,249.053 576.639.617 94,412,980 Sub-Totals- - 38,645,345,787 68,321,608,536 77,666,102,521 29,300,851,802 Subvention . 411 Name of the Reporting entity Annexes to the Financial Statements Annexes to the Financial Statements Annex (i): Pension Payroll Name Last Position held IPPS Pension Supplier no Amount no no. (IFMS) 3- Annex (ii): Schedule of Inventory Category Opening balance Purchase/ Usage/Disposal Obsolete Closing as at 1st July 2020 Additions Cost Cost balance Cost Cost 30 June 2021 Shs Shs Shs Cost Shs Shs 1 c.g Drug (a), Visa stickers, Passports Annex (iii): Trial Balance Annex (iv): Bank Reconciliations and list of all bank accounts Annex (V): Schedule of Verified Arrears Annex (vi): Summary Staff Payroll Salary scale Number of Employees New employees to the Number of Number of Employees at at the beginning of the vote either through employees the end of the year year transfers or through transferred / 30 June 2021 1st July 2020 recruitment retired/deceased Specified scale Uls U1SE UlE U2 U3 U4 US U6 U7 U8 - - Contract Staff - 2 1 1 IDA Contract Staff - 4 1 3 GOU Total 6 2 4 Annexes to the Financial Statements Name of the Reporting entity Annexes to the Financial Statements ARSDP PROJECT Trial Balance as at 30 June 2021 IDA - UGX Item Particulars Debit Credit Reconciled Bank Balances 29,300,851,802 - Receivables 10,347,049.687 - Operating Revenue - External Assistance 32,867,511,483 Operating Revenue - Transfers from Treasury Employee Costs 566,767,458 Goods & Services Consumed 3,127,489,979 Consumption of property, plant & equipment 26,644,852,679 - Accumulated Reserves as at 30 June - 38,645,345,787 Transfers to UCF Forex Differences 1,525,875,664 TOTALS 71,512,887,270 71,512,887,270 ARSDP PROJECT I I Trial Balance as at 30 June 2021 GOU - UGX Item Particulars Debit Credit Reconciled Bank Balances Receivables 2,469,774,738 Operating Revenue - External Assistance - Operating Revenue - Transfers from Treasury - 2,663,410,500 Employee Costs 205,061,451 Goods & Services Consumed 1,791,133,153 Consumption of property, plant & equipment Accumulated Reserves as at 30 June - 1,979,179,812 Transfers to UCF 176,620,970 Forex Differences TOTALS 4,642,590,312 4,642,590,312 W Ann.x. to the Financial Statements Name of the Reporting entity Annexes to the Financial Statements ARSDP PROJECT SCHEDULE OF RECEIVABLES AS AT 30 JUNE 2021 Outstanding Balances a) Advance Giuarantees Amount UGX Equiv in US$ Devotra B.V Lot 1 $0.00 Equipme Devotra B.V Lot 2 $0.00 nt Labx Scientific Limited 875,021,958 $239,600.76 875,021,958 $239,600.76 b) Advance Guarantees Ambitious Constr Co. Ltd UPIK - Phase 1 - $0.00 Ambitious Constr Co. Ltd UPIK - Phase 2 2,560,294,877 $701,066.51 Civil Sarick Constr Co. Ltd UTC-KI - Phase 1 878,794,045 $240,633.64 Works Ambitious Constr Co. Ltd UTC-KI - Phase 2 1,673,290,794 $458,184.77 5,112,379,716 $1,399,884.92 c) Lettler) of C redit 1Vs odS not ye d