(a) The Uganda Electricity Generation Authority (the Authority) is a government entity which was established with the primary purpose of generating power for use in Uganda and for sale to neighbouring countries.

The following trial balance was prepared by the Authority as at 31 December, 2016.

Leasehold property at valuation 31 December, 2015 Land

Power stations

Office plant & equipment

Prepaid operating lease rentals (50 years lease term) Accumulated depreciation/ amortisation

Power stations

Office plant & equipment Operating lease rentals

Work in progress (Karima & Isika projects)

Cash & cash equivalents

Inventories at year end

Receivables from exchange transactions

Non-current receivables from non-exchange transactions Long-term borrowings

Capital contribution from the Government of Uganda Revaluation reserve (power stations)

Accumulated surplus/ (deficit) 31 December, 2015 Transfers from other government entities

Fees, taxes and fines

Other operating revenue

Wages, salaries & employee benefits Supplies and consumables used Finance costs

Shs 'million' 1,120 200,130 900,056 3,544 2,100

51,000 20,521 500 20 800

5,632 17,891 200 1,203,514

Shs 'million'

394,528 1,261 956

32,000 300,000 9,000 96,220 350,000 18,576 973

- 1,203,514

Additional information:

1. The Authority prepares its financial statements on accrual basis in accordance with the International Public Sector Accounting Standards (IPSASs).
2. During the year, the Authority incurred land acquisition costs amounting to Shs 560 million for Kabwoko Hydro Power Project in respect of compensations to Project Affected Persons (PAPs). Although valuation had been completed by the end of the year, none of the PAPs had been paid.
3. Costs amounting to Shs 870 million were incurred on on-going projects of Karima and Isika Hydro Power Projects. The costs incurred to date mainly consist of civil works, staff costs and project management consultations. No entries have been made in the books of account in relation to these costs despite payments being made to the service providers.
4. During the year, the Authority entered into two binding arrangements with the following companies as detailed below:
5. Eskon Uganda Limited
6. On 3 January, 2016 the Authority entered into a binding arrangement with Eskon Uganda Limited (Eskon), a private company. The agreement required Eskon to operate Authority's two hydropower dams of Kiila and Nakabaale power stations for a period of 25 years. By this date, the Authority had incurred total costs on these two dams amounting to Shs 324 billion and accumulated depreciation amounting to Shs 121 billion. The agreement also required the Authority to control and regulate the services Eskon must provide with the two power stations, to whom it must provide them, and the price to be charged.
7. During the year, Eskon also did some major upgrades to the two power stations amounting to Shs 3.4 billion. The Authority has guaranteed to pay Eskon 30% of the costs incurred in the following year and the balance after two years.
8. Kingfisher Limited
9. On 5 February 2016, the Authority entered into another agreement with Kingfisher Limited (Kingfisher), a private company for a period of 30 years. The agreement required Kingfisher to construct a mini hydro power plant in Zombo district. The company completed the construction of the plant by 31 June, 2016 at a cost of Shs 130 billion. The agreement requires Kingfisher to earn revenue each year from the users of the dam not exceeding 10% of the invested amount which is still outstanding. All the revenue due for 2016 was received by the company.

1. The installed capacity of the power complex (Nakabale and Kiila) is 380 megawatts (MW). However, the average capacity generated during the year was about 140 MW. This is an indicator of impairment, and as such the Authority performed an impairment assessment resulting into an impairment of Shs 7 billion. However, the impairment loss has not been accounted for in the Authority's books of account.
2. The 15-year leasehold property was acquired on 1 January, 2015 at a cost of Shs 300 million. The company policy is to revalue the property at market value at each year end. The valuation in the trial balance of Shs 1.12 billion as at 31 December, 2015 led to an impairment charge of Shs 29 million which was reported in the income statement of the previous year. At 31 December, 2016 the property was valued at Shs 2.4 billion.

1. Required
2. Prepare, for Uganda Electricity Generation Authority for the year ended 31 December, 2016 a statement of:
3. (i)financial performance. (10 marks)
4. (ii)financial position as at 31 December. (18 marks)

(b) You are provided with the following transactions relating to different public sector entities in Uganda for the year ended 30 June, 2016. All these entities follow the accounting and reporting framework prescribed by the Accountant General.

1. ourse commenced on 1 February, 2016. Kakooza paid the full fees on 20 May, 2016.

1. An agreement for a two-year project between SIDA (donor) and Rural Electrification Project required the community to contribute 10% of the agreement value of Shs 500 million for provision of rural electricity. This was to be provided in kind through communal labour by helping in carrying and fixing electric poles. The project commenced on 1 July, 2015 and was to end after two years on 31 May, 2017. The donor disbursed their contribution Shs 450 million on 31 August, 2015. No criteria were provided for the valuation of community contribution in the course of the project implementation.
2. During the month of June, 2016 the gross salaries payable to the public officers under the Ministry of Tourism totaled Shs 99,495,450 made up of the following:

Net salary

Pay as you earn

Required:

a)For each of the above transactions, show all the necessary ledger entries, including narratives, as at 30 June, 2016.

(15 marks)

(c) The Government of Uganda Financial Reporting Templates have been designed to ensure that reporting from ministries, departments and agencies (MDAs) and local governments comply with the Government reporting requirements and International Public Sector Accounting Standards (IPSASs).

Required:

Discuss the following statements of the Financial Reporting Templates, giving a description of the key features of each statement.

1. (i)Statement of appropriation account by services voted.
2. (ii)Statement of appropriation account by nature of expenditure.
3. (iii)Statement of reconciling total expenditure as per performance and

appropriation.

(iv) Statement of outstanding commitments.

SECTION B

Attempt two of the four questions in this section

Question 2

(7 marks) (Total 50 marks)

1. Kalumpi District Local Council has allocated local revenue Shs 380 million raised from leasing its market to purchase furniture, stationery, land and a pickup truck for its administration department. The budgetary allocation to the items is to be in the ratio 1:3:4:5 respectively, and the user department has advised that furniture and stationery shall be required in the first quarter while land and a pickup in the third quarter of the financial year ending 30 June, 2019.
2. Required:
3. Draft a procurement plan for Kalumpi District Administration Department.
4. (6marks)
5. (b)Discuss the stakeholders in procurement planning and their responsibilities in local governments in Uganda.
6. (10 marks)
7. (c)In accordance to Public Procurement and Disposal of Public Assets Act, 2003 evaluate the circumstances under which a procuring and disposing entity may:
8. (i)reject the bidding documents of a prospective bidder. (5 marks)
9. (ii)negotiate with the contractor, in respect of a proposal by the
10. contractor.
11. (4 marks) (Total 25 marks)

Question 3

1. (a)Over the years, the Government of Uganda has undertaken many finance and payroll reforms including the implementation of Integrated Finance Management System (IFMS), Integrated Payroll and Pension System (IPPS), Fixed Assets and Inventory Management System (FAIMS), Human Resources Information Management System (HMIS), Debt Management and Financial Accounting System (DMFAS), among others.
2. Required:
3. (i)Assess the benefits of IFMS implementation to Government in financial management.
4. (5 marks)
5. (ii)Discuss any five modules in IFMS clearly explaining the roles under
6. each module.
7. (10 marks)
8. (b)In line with many other countries, Government of Uganda has adopted systems that will enable it to conform to International Public Sector Accounting Standards. It has, for instance, adopted a chart of accounts which is useful from budgeting to reporting.
9. Required:
10. Examine the various segments of the Government of Uganda chart of accounts.

Question 4

(a) (i)

(10 marks) (Total 25 marks)

With examples and reference to the relevant International Public Sector Accounting Standards (IPSAS), describe the General Government Sector.

(4 marks)

(ii) Evaluate the relevance of disclosure of appropriate information about the General Government Sector in financial statements as envisaged in the relevant IPSAS.

(6 marks)

(b) IPSAS 24: Presentation of Budget Information in Financial Statements requires that, an entity shall present a comparison of budget amounts for which it is held publicly accountable and actual amounts, either as a separate additional financial statement or as additional budget columns in the financial statements currently presented in accordance with IPSASs.

Required:

Discuss the likely causes of differences in the amounts in the financial statements and the budget.

(8 marks)

(c) An entity may carry on foreign activities in two ways. It may have transactions in foreign currencies or it may have foreign operations. In addition, an entity may present its financial statements in a foreign currency. International Public Sector Accounting Standards (IPSAS) 4 sets out disclosure requirements for such entities.

Required:

Discuss the disclosure requirements set out by IPSAS 4 above.

(7 marks) (Total 25 marks)

Question 5

(a) The Ministry of Local Government is organising an induction seminar for the newly appointed Assistant Chief Administrative Officers (ACAOs) and Sub-Accountants for Atutur District Local Government (ADLG) on their roles in the management and control of public resources under their care. You have been invited as an expert in matters of public financial management.

Required:

Prepare paper for presentation highlighting the duties and functions of the following in public financial management:

1. (i)Duties of ACAO
2. (ii)Functions of a standing committee of Council
3. (iii)Functions of the Executive Committee of Council

(b) With reference to The Local Governments (Financial and Accounting Regulations, 2007), discuss the procedures necessary for replenishment and retirement of imprests.

(4 marks)