KAMPALA, UGANDA: The Office of the Auditor General (OAG) has recommended that Parliament indulges the finance ministry to report unspent funds for each financial year.
John Muwanga, the Auditor General was Tuesday appearing before the finance committee to respond to queries in the Compliance Audit Report on the implementation of the 2020/2021 approved budget.
During the interaction, the Director for Forensics at OAG, James Bantu, said that the finance ministry each year prepares consolidated accounts of government that gives an account of the money that has been directed through the Consolidated Fund.
“In addition to the cash balance on that account, that account will receive unutilised money swept back. By end of September, that is when they can determine how much would have been swept back. Every year, you will see an opening balance and it is in that regard that we would like this committee to come out strongly in terms of what happens with such monies,” he said.
According to Bantu, the total unspent funds for the Financial Year 2020/2021 was Shs26 billion and in the subsequent year, Shs36 billion.
“For those funds to be returned, they should also be included in the appropriated budget for the next financial year,” said Bantu.
He explained that the unspent funds remain as unappropriated funds that end up being utilised with releases of the first quarter of a financial year.
“This committee should recommend that once there is a determination of that amount unspent, let it be brought to the attention of Parliament or included in the supplementary budget but not for them to just keep silent around it,” Bantu said.
He said the first quarter cash releases should be separated from the unspent balances in the Consolidated Fund, to avoid accountability queries.
“The appropriation is both revenue and expenditure. You have clearly stated your revenue sources and you have not pointed out that this bit carried forward is also going to be available cash for utilisation. It should not be the ministry to determine what that money should be applied to, it still has to come here so that a determination is made in terms of that cash balance,” said Bantu.
Committee chairperson, Keefa Kiwanuka, said that MPs have severally raised concern over the utilisation of unspent funds, but have never received a response.
“This has been a thorny issue for us. Members actually raised it at the beginning of this Parliament,” he said.
Basil Bataringaya, Kashari North County MP said that he expects that in the next financial year, the finance ministry will include a report on utilisation of unspent funds.
Enos Asiimwe, Kabula County MP advised the OAG to devise strategies on returning of unspent funds to entities, saying that this would enable smooth completion of works.
“I am giving you an example; there is work in progress – the construction of a seed school and you give them the money but before the year ends, the money is swept back. How best can we get it back instead of waiting for the whole budgeting process?” he asked.
Juliet Kinyamatama. Rakai district legislator urged MPs to interest themselves in the utilisation of unspent funds, saying such funds are easily misappropriated.
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