Business and Finance
Private firm to Audit KCCA accounts
By Brian Mayanja
The Kampala Capital City Authority is to hire a private audit firm to carry out a forensic audit of the authority’s bank accounts over the last one year.
This follows queries raised by the authority councilors and Lord Mayor, Erias Lukwago on conflicting figures of the amount KCCA inherited from the defunct Kampala City Council.
Last year KCCA hired KPMG, an international audit firm at a cost of sh117m (about $4900) to investigate the bank accounts held by the defunct KCC. The audit unearthed sh152b lying idle on 152 bank accounts.
However, an earlier audit by the Auditor General reported that there was sh58bn on only 132 accounts. During special council meeting held recently to discuss KCCA’s annual performance report, the councilors resolved that the authority should institute another audit to establish the correct amount.
“Can we get clear details of the frozen accounts and the funds from each municipal division? How many accounts did each division have? ,” Resty Ollama deputy mayor Central divison asked the city executive director Jennifer Musisi.
The audit firm is expected to commence its work in one month’s time, according to Lord Mayor Erias Lukwago. “After reviewing this financial year’s budget, we shall work out mordalities of how the audit firm will operate,” he said. Allan Ssewanyana, Makindye division councillor said they needed to hire an audit firm, which would investigate beyond the findings of KPMG.
Musisi said hiring another firm to audit KCCA’s accounts would be expensive. She also disclosed that the finance ministry was also investigating KCCA’s accounts.
Julius Kabugo, an official from KCCA’s treasury department explained that the variation in figures was a result of an error.
“There was double entry of figures during the computation of the amount in the Auditor General’s report,” he said.
“The fixed deposits were accounted for twice and subsequent reconciliations that were carried out revealed this anomaly,” he explained, adding that Sh52bn is the correct figure of which sh26.8bn is local revenue and sh25.4bn from Central Government grants.
The councilors queried the withdrawal of sh500m from Kawempe division account two weeks ago, yet it was not reflected in the annual performance report.
In her response, Musisi said the Central Government funds had been transferred to the consolidated account as per section 19 of the Public finance and Accountability Act, 2003.