Question 1

(a)

Uganda National Wildlife Authority (UNWA) is a statutory body purposely

created to protect and preserve wildlife in Uganda. You are provided with

abridged financial statements for UNWA for the year ended 31 December,

2017.

Statement of financial position

2017

2016

Assets:

Shs '000'

Shs '000'

Non-current assets:

Property, plant & equipment

5,140,000 3,100,000

Other assets

-

595,500

5,140,000 3,695,500

Current assets:

Inventories

169,000

40,000

Trade & other receivables

3,860,000 1,750,000

Accountable advances to employees

164,000

394,000

Cash & cash equivalents

553,600

910,000

4,746,600 3,094,000

Total assets

9,886,600 6,789,500

Taxpayers' contributions & liabilities:

Taxpayers' contributions:

Government of Uganda (GOU) contributions

2,000,000 1,000,000

Reserves

3,269,100

785,000

Capital development grant - GOU

1,000,000

700,000

6,269,100 2,485,000

Liabilities:

Non-current liabilities:

Long-term borrowing

2,000,000 3,100,000

Conditional grant - World Bank

45,000 -

2,045,000 3,100,000

Current liabilities:

Trade & other payables

795,500

736,200

Contributions to employees' pension

500,000

300,000

Taxes payable

277,000

168,300

1,572,500 1,204,500

Total taxpayers' contributions & liabilities

9,886,600 6,789,500

1.

No item of property, plant & equipment was disposed of during the

year. The property, plant & equipment bought for replacement

purposes, were bought at the end of the current year on terms of

hire-purchase agreement. A deposit of Shs 550 million was paid in

cash and the remaining amount was to be paid with interest over a

4-year period.

2.

Included in the trade and other payables is the current portion of

Shs 504.6 million applicable to the hire-purchase agreement.

3.

A 3-year conditional World Bank grant was received during the year.

However, by 31 December, 2017 only Shs 20 million grant

conditions were met though not reflected in the records. Also

credited to reserves is a donation from the Netherlands Wildlife

Trust for relocation of Rhinos from Semuliki wildlife sanctuary to

Murchison Falls game park Shs 800 million.

4.

Included in the other income before tax are other costs paid in cash

Shs 1.4 billion.

5.

Operational costs in the statement of performance include an

amount Shs 680 million in respect of depreciation of property plant

& equipment.

6.

Long-term borrowings are made up of the following:

2017

2016

Shs '000'

Shs '000'

Hire-purchase liability 1,250,000

-

Bank loan

750,000

100,000

7.

Income tax expense in the statement of financial performance

consists of current tax assessed Shs 1,018,400,000 and Shs 200

million that was successfully appealed to the Commissioner General

of Uganda Revenue Authority.

8.

Other assets were disposed of at their cost value after

recommendation from the Board of Surveys' reports.

Required:

(i)

Prepare cash flow statement for UNWA for the year ended

31 December, 2017 using the direct method in accordance

with the relevant IPSASs.

(17 marks)

(ii)

Comment on the liquidity position of UNWA for the period

ended 31 December, 2017.

(7 marks)

(iii) 'Information about the cash flows of an entity is useful in

providing users of financial statements with information for

both accountability and decision-making purpose.

Required:

Assess the validity of the above statement.

(8 marks)

(b)

The Uganda Public Finance Management Act (PFMA), 2015 requires

formation of the Investment Advisory Committee to advise the Minister of

Finance on the petroleum investment policy of the Petroleum Revenue

Investment Reserve and any amendments to it that the Petroleum Fund is

to adhere to. You have been selected as an expert in the field of

petroleum investment.

Required:

Explain, with reference to the Uganda PFMA 2015, areas in which the

committee can advise the Minister on the investment policy.

(10 marks)

(c)

Government of Uganda (GOU) anticipates starting oil production in the

districts of Buliisa, Kibale, Hoima, Kagadi and Masindi in the financial year

2019/2020. Production is estimated to yield US dollars 24 million with

Buliisa expected to account for 40%, followed by Hoima 25%, Masindi

20%, Kagadi 10% and Kibale 5% of the production.

The population size of the above districts in the financial year 2019/2020 is

estimated as follows Local government Population ' million'

Buliisa

0.740

Kibale

0.850

Hoima

0.925

Kagadi

0.540

Masindi

0.460

The Uganda Public Finance Management Act, 2015 provides for the

sharing of the royalties arising from oil and petroleum production as

follows:

(i)

Government shall retain ninety four percent of the revenue from

royalties arising from petroleum production and the remaining six

percent shall be shared among the local governments located within

the petroleum exploration and production areas of Uganda.

(ii)

Fifty per cent of the revenue from royalties due to the local

governments shall be shared among the local governments involved

in petroleum production based on the level of production of each

local government or impact.

(iii) The balance of 50 per cent of the revenue from royalties due to the

local governments shall be shared among all the local governments

based on population size, geographical area and terrain.

Required:

Advise Buliisa District Local Government on the amount of oil

revenue estimate it should include in its annual budget estimates for

the financial year 2019/2020.

Question 2

You have been appointed a member of an evaluation committee for the

procurement of a consultant on one of the projects in a ministry. Your

colleagues have selected you to be the chairperson of the committee given your

experience and knowledge of procurement matters. The evaluation method to

be used for this procurement is the 'quality and cost-based evaluation method'.

However, some of your colleagues are unfamiliar with this method and would

like to be guided on the key aspects of the method before they proceed with the

evaluation process.

Required:

(a)

Explain the circumstances under which a bid shall be administratively

compliant under the preliminary evaluation stage of bids.

(4 marks)

(b)

Discuss the procedure for conducting a 'merit point evaluation' under the

detailed evaluation stage of bids.

(10 marks)

(c)

Advise your colleagues on the steps they would take to evaluate financial

bids of the corresponding technical bids that adhered to the minimum

qualifying scores.

(6 marks)

(d)

Illustrate how you would determine the best evaluated bid after obtaining

scores from the technical and financial bids.

(5 marks)

(Total 25 marks)

Question 3

(a)

Your head of human resources has organised a 3-day orientation

workshop for the newly recruited staff in the different departments of the

Environment Protection Agency (EPA), an organisation where you are

working as deputy head of finance.

Required:

Write brief notes to be presented at the orientation highlighting how the

new staff should adhere to the following aspects of the Code of Conduct

and Ethics for the Uganda Public Service:

(i)

Absence from duty.

(2 marks)

(ii)

Handling of gifts and bribes.

(8 marks)

(iii)

Engagement of public officers in political activities.

(4 marks)

(b)

The declaration of assets and liabilities is one way Government of Uganda

is trying to fight corruption and illicit accumulation of wealth by public

officials. In recent years, the government launched the new Inspectorate

of Government Online Declaration System (IG-ODS) to help leaders to

declare their wealth with ease and in time.

Meanwhile, Mr. Magezi Aloysius, an assistant manager in charge of estates

in the Ministry of Works, was offered a government vehicle to ease his

transport when executing his official duties. While he parked the vehicle in

his compound at night, thieves vandalized it and stole its portable

components including its computer system. The ministry's mechanic

estimated that the cost of repairing the damaged vehicle could be over Shs

31 million.

Required:

With reference to the Leadership Code Act, 2002:

(i)

discuss the functions carried out by the Inspectorate in enforcing the

requirements of the Code.

(5 marks)

(ii)

discuss and advise Mr. Magezi on the provisions of the Code

regarding the abuse of public property.

(6 marks)

(Total 25 marks)

Question 4

(a)

Gulu Municipal Council (GMC) acquired a loan Shs 120 million on 1 July,

2013 from Bank of Africa to construct a new maternity ward with an

operating theatre. It was anticipated that the construction would take 5

years. The loan was to be serviced for 6 years at a fixed interest rate of

12% per annum.

On 1 July, 2013, the municipal engineer, who was expected to return from

his studies abroad, wrote to the GMC asking for more time and he stated

that he could return on 1 July, 2015. As a result, no work could be done

in his absence.

On 1 July, 2014 GMC advised the Town Clerk to invest the Shs 120 million

in treasury bills for 12 months. GMC, at maturity of the treasury bills,

would receive an interest of 10 %.

1 July, 2015 construction of the maternity ward commenced. With

additional manpower and long working hours, the construction was

completed on 30 June, 2018

Required:

(i)

Assess, with reasons, the treatment of interest in the financial

statements of GMC in accordance with the requirements of the

relevant IPSAS for the 6 years.

(12 marks)

(ii)

Comment on the disclosures that should be made in the financial

statements for the above treatment in accordance with the

requirements of the relevant IPSAS.

(3 marks)

(b)

NTM LTD has been operating in Uganda for the last 20 years. Qataria

Global Investment (QGI) is the parent company of NTM LTD. QGI

prepares and presents financial statements under IPSAS using the accrual

basis of accounting.

Required:

(i)

Describe the disclosure requirements for investments in NTM LTD

when QGI prepares separate financial statements.

(5 marks)

(ii)

Describe the circumstances under which QGI may not need to

present consolidated financial statements.

(5 marks)

(Total 25 marks)

Question 5

(a)

The following information relates to Kiira Municipal Local Government;

Department of Works and Technical Services for the third quarter of the

financial year 2017/2018.

Item: Maintenance Civil - Local Materials

Approved budget estimate:

Shs 150,000,000.

2018:

(i)

15 January, ordered for hard core 400m3

at a rate of Shs 80,000 per

cubic metre from Kaimanda, a local supplier. Contract number

LM001.

(ii)

20 January, ordered for hand crashed aggregates 20m3

at a rate of

Shs 100,000 per cubic metre from Akankwasa. Contract number

LM002.

(iii) 27 January, obtained and paid for gravel from Kansiime, 6,000m3

at

a rate of Shs 9,000 per cubic metre for ongoing road works.

Payment voucher no. KLC 1801001.

(iv) 1 February, paid for the hard core that was obtained from

Kaimanda. Payment voucher no.KLC180208.

(v)

16 February, obtained stone-dust 10m3

, from Kirya at a rate of Shs

50,000 per cubic metre. Contract number.LM003.

The cash release from the Ministry of Finance, Planning and

Economic Development for the quarter was Shs 130 million, under

the code 228001: Maintenance Civil.

Required:

Prepare vote book for Kiira Municipal Local Government as per the

Local Government Financial and Accounting Manual, 2007.

(10 marks)

(b)

Local governments in Uganda are required to produce monthly, quarterly

and annual financial statements. The reporting requirements are

mandatory and intended to enforce accountability of the local government

to the relevant stakeholders including the public, central government and

parliament, among others.

Required:

As Town Treasurer of the recently created Katine Town Council, explain to

the Executive Committee of the Town Council, the quarterly financial

statements/ reports to be produced by the head of finance, and head of

department as per the relevant local government financial reporting

frameworks.

(8 marks)

(c)

Mbale City Authority (MCA) had the following transactions for the year

ended December, 2017:

1.

Received a donation of 20 computers from the Netherlands Embassy

worth Shs 100 million at the beginning of the year.

2.

Motor vehicles with accumulated depreciation of Shs 35 million were

revalued to Shs 55 million by a qualified valuer on the request of the

City Authority. These vehicles were originally bought at Shs 80

million.

3.

The boards of survey confirmed that there were items of stock

worth Shs 20 million that had not been recorded.

4.

It is MCA's policy to depreciate computers at a rate of 40% per

annum on straight-line.

Required:

Show the journal entries necessary to account for the above

transactions for the year ended 31 December, 2017 in accordance

with the Local Government Financial and Accounting Manual, 2007.

(7 marks)