By: Jackline Nabirye
Communications Officer
Institute of Certified Public Accountants of Uganda (ICPAU)
In a comprehensive overview of Uganda's fiscal year ending June 30, 2023, the government's budgetary performance has come under scrutiny, with a Public Financial Management (PFM) audit shedding light on both commendable practices and areas in need of improvement. The audit, conducted amidst a backdrop of significant budget utilization, aimed to bolster financial transparency and effectiveness.
Led by CPA Charles Alumai, Assistant Director of Audit-Value for Money & Specialized Audits at the Office of the Auditor General, the audit delved into the intricate web of Uganda's financial management landscape. Alumai emphasized the critical role of PFM in ensuring efficient resource allocation, budget execution, and accountability within government entities.
Speaking at the 2nd PFM Conference, Alumai elucidated on the multifaceted nature of PFM, encompassing various rules, laws, systems, and processes crucial for effective financial management. He highlighted ongoing PFM reforms, including the implementation of the Integrated Financial Management System (IFMS), Integrated Personnel and Payroll System (IPPS), and Treasury Single Account (TSA), aimed at enhancing budget execution and monitoring while ensuring greater accountability.
The audit, structured around core PFM processes, scrutinized six government entities, including the Ministry of Finance, Planning and Economic Development (MoFPED), Uganda Revenue Authority (URA), Parliament, Ministry of Works and Transport (MoWT), Ministry of Water and Environment (MoWE), and Ministry of Health (MoH).
While commendable practices were observed in areas such as timely budget preparation and stakeholder consultations, the audit also unearthed areas requiring improvement. These included inadequate adoption of program-based planning and budgeting by Parliament and delays in procurement processes within the Uganda Revenue Authority (URA). Discrepancies in project support utilization further underscored the need for enhanced financial management practices.
CPA Alumai emphasized the need for accountants to understand their roles in driving efficient service delivery, advocating for a repurposing of skills to meet evolving demands in financial management.
Recommendations stemming from the audit include prioritizing discussions on budget sensitivity analysis, improving understanding of program-based budgeting among parliamentarians, and enhancing procurement efficiency within government entities.
Looking ahead, plans are underway to enhance the PFM Audit Tool to incorporate international best practices and country-specific indicators, with the overarching goal of revolutionizing resource allocation and utilization for effective service delivery.
The PFM Conference, attracting key stakeholders, serves as a platform to deliberate on innovative approaches and reforms in public finance management, addressing challenges such as debt management and fiscal sustainability, while providing valuable professional development opportunities.
In conclusion, the audit findings underscore the significance of robust financial management practices in fostering transparency, accountability, and efficient resource allocation within the Ugandan government, signaling a commitment to continual improvement in PFM processes.
