The Republic of Uganda : Country Integrated Fiduciary Assessment 2004, Volume 2. Public Expenditure Review 2004 - Promoting the Efficient Use of Public Resources for Poverty Eradication

Abstract

The Uganda Country Integrated Fiduciary
 Assessment (CIFA) consolidates (in five volumes) the
 results, and recommendations of various diagnostic
 processes, including the Public Expenditure Review (PER),
 the Country Financial Accountability Assessment (CFAA), the
 Country Procurement Assessment report (CPAR), the Tracking
 Poverty, Reducing Spending Assessment, and the Local
 Government Integrated Fiduciary Assessment (LGIFA). This
 integrated approach is designed to address comprehensively
 the budgetary, financial accountability, and transparency
 challenges that Uganda is facing. CIFA marks a first step
 toward adopting a single standard assessment of
 Uganda's public financial management (PFM) systems for
 all levels of government. The report provides the Government
 of Uganda (GoU), its development partners (DPs), and other
 stakeholders with a candid review of the public sector
 challenges, and an assessment of the key fiduciary risks,
 and opportunities for corrupt practices. Fiduciary risk is
 defined as the risk that expenditure is not properly
 accounted for, that it is not used for its intended
 purposes, and that it does not represent value for money
 (VFM). The assessment shows that in the last four years the
 GoU has made significant progress in strengthening, and
 updating the legal framework, and regulatory environment for
 PFM, thus reducing the risk associated with a lack of clear
 rules and regulations. In addition, the GoU has reduced the
 fiduciary risks associated with poor budget formulation, and
 preparation through the PER process. The quality of
 information provided in the annual accounts also has
 improved. Notwithstanding, there remains high fiduciary
 risk, associated with: the enforcement of procurement, and
 payroll rules and procedures; the incompleteness of data on
 debt and contingent liabilities; weak independent oversight;
 and, the timeliness and effectiveness of legislative and
 public scrutiny. The Local Government Integrated Fiduciary
 Assessment (LGIFA) highlights the considerable progress made
 over the last decade in providing services at the local
 level; from this base, however, it notes with concern that
 the budgeting and planning processes at LGs are poor at
 articulating specific local needs within overall national
 objectives, and policies. The assessment also raises
 concerns over the ability, desire, and willingness of local
 residents, and politicians to hold their administrations to
 account for their performance.