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` THE REPUBLIC OF UGANDA The Ministry of Local Government Local Government Sector Investment Plan (LGSIP) Annual Progress Report for FY 2008/09 October 30, 2009 TABLE OF CONTENTS TABLE OF CONTENTS ..................................................................................................................... II ABBREVIATIONS....................................................................................................................................... III 1.0 INTRODUCTION ........................................................................................................................... 4 1.1 BACKGROUND ................................................................................................................................ 4 1.2 REPORTING PERIOD ........................................................................................................................ 5 1.3 SYNOPSIS OF FUNDING AND EXPENDITURE LEVELS................................................................................ 5 2.0 HIGHLIGHTS ON ACHIEVEMENTS ............................................................................................... 7 2.1 THE COMMON RESULTS MATRIX KEY PERFORMANCE INDICATORS............................................................ 7 2.2 SERVICE DELIVERY.......................................................................................................................... 9 2.3 POLITICAL DECENTRALISATION ........................................................................................................ 12 2.4 ADMINISTRATIVE DECENTRALISATION ................................................................................................ 14 2.5 FISCAL DECENTRALISATION............................................................................................................. 18 2.6 GOOD GOVERNANCE ..................................................................................................................... 23 2.7 LOCAL ECONOMIC DEVELOPMENT (LED) ........................................................................................... 24 3.0 CHALLENGES AND MITIGATION MEASURES ............................................................................ 26 4.0 LESSONS AND RECOMMENDATIONS ....................................................................................... 28 4.1 KEY LESSONS .............................................................................................................................. 28 4.2 KEY RECOMMENDATIONS ................................................................................................................ 30 ANNEX 1: THE COMMON RESULTS MATRIX ............................................................................................ 31 ANNEX 2: LDG RELEASES TO LGS FROM THE BASKET FUND ............................................................... 37 ANNEX 3: PERFORMANCE OF NEW TAXES (LST AND LHT) IN 2008/09 ................................................... 39 ANNEX 4: TREND IN LOCAL REVENUE PERFORMANCE (SHS'000) ......................................................... 43 ANNEX 5: PERFORMANCE OF LGS IN THE NATIONAL ASSESSMENT 2008 ............................................ 43 ANNEX 6: STATUS OF IMPLEMENTATION OF JARD 2008 UNDERTAKINGS ............................................. 44 ANNEX 7: STATUS OF IMPLEMENTATION OF JARD 2008 RECOMMENDATIONS ..................................... 46 ii Abbreviations BFP Budget Framework Paper CAO Chief Administrative Officer CB Capacity Building CDD Community Driven Development CIS Community Information System CPA Certified Public Accountants DCO Donor Coordination Office DPSF Decentralisation Policy Strategic Framework DSC District Service Commission DSWG Decentralisation Secretor Working Group DUA District and Urban Administration F&A Finance and Administration FDS Fiscal Decentralisation Strategy FY Financial Year HLG Higher Local Government HPPG Harmonised Participatory Planning Guide IEC Information, Education and Communication ICT Information Communication Technology JARD Joint Annual Review of Decentralisation JFA Joint Financing Agreement KPI Key Performance Indicator LAI Local Authorities Inspection LCD Local Councils Development LCC Local Council Courts LG Local Government LGA Local Government Act LGDP Local Government Development Programme LGFAR Local Government Finance and Accounting Regulations LGFC Local Government Finance Commission LGPAC Local Government Public Accounts Committee LGSIP Local Government Sector Investment Plan LLG Lower Local Government LRECC Local Revenue Enhancement Coordinating Committee LST Local Service Tax LHT Local Hotel Tax MTEF Medium Term Expenditure Framework M&E Monitoring and Evaluation MoLG Ministry of Local Government MoU Memorandum of Understanding NAT National Assessment Team PEAP Poverty Eradication Action Plan PPD Policy and Planning Division PPP Public Private Partnership PS/ST Permanent Secretary and Secretary to the Treasury RDC Resident District Commissioner ROM Result Oriented Management TWG Technical Working Group UAAU Urban Authorities Association of Uganda ULGA Uganda Local Governments Association SWAP Sector Wide Approach iii 1.0 Introduction 1.1 Background The Local Government Sector is in the fourth year of implementing a 10-year Local Government Sector Investment Plan (LGSIP), which covers the period 2006-2016. The LGSIP is an elaborate framework for planning, prioritising, coordination and implementing strategic interventions geared towards deepening the implementation of the decentralisation policy. The LGSIP is being operationalised through three-year rolling budgets guided by 3 core objectives being to: provide a single point of reference for mobilising resources for implementation of the decentralisation policy within the context of the MTEF; ensure that resources are channelled to core programmes and activities to support the implementation of the decentralisation policy in line with the PEAP; and to ensure coordinated and effective delivery of services at local level. The implementation of the LGSIP is intended to contribute to the attainment of results in six key thematic areas by: a) Increasing efficiency and effectiveness of service delivery by LGs; b) Enhancing political accountability in local governments; c) Ensuring efficient and effective LG administrations; d) Strengthening financial capacity of LGs to carryout their mandates; e) Ensuring citizens exercise their rights and fulfil their obligations with respect to local governance and service delivery; f) Creating a conducive environment for investment to promote local economic development The implementation of the LGSIP brings to the centre all the key stakeholders in the LG sector including the Ministry of Local Government (MoLG), Local Government Finance Commission (LGFC), Uganda Local Governments Association (ULGA), Urban Authorities Association of Uganda (UAAU) and the Local Governments. For effective implementation of the LGSIP, Government and development partners in the sector signed a Memorandum of Understanding (MoU) whose main objectives include establishing a common collaboration framework for joint support and financing of the LGSIP including the management of multi and bilateral aid relationships and promoting the broad decentralisation objectives. Further to this, Government and the Development Partners assented to the Joint Financing Agreement (JFA) for earmarked sector support for the implementation of the LGSIP via a Sector Wide Approach (SWAP) spelling out the implementation modalities and obligations of the various parties. 4 1.2 Reporting Period This report covers the period 1st July 2008 to 30th June 2009. The content and scope are the activities implemented in the annual work plan 2008/09 using funds availed to the LG sector for LGSIP basket funded activities. 1.3 Synopsis of Funding and Expenditure Levels Table 1.1 below shows that no funds were released to the holding account during the FY 2008/09 under the basket funding. Table 1.1: Funds released to the holding account in FY 2008/09 Source Amount (Euros) Balance B/F 5,910,605.65 Royal Netherlands Embassy 0 Ireland Embassy 0 Austria 0 Royal Belgium Embassy 1,000,000.00 Royal Danish Embassy 1,699,800.00 Total 8,610,405.65 The amount of funds transferred from the holding account to the expense accounts of both the MoLG and LGFC as at 30th June 2009 is summarised in table 1.2 below. Table 1.2: Status of the expense accounts as at 30th June 2009 Implementing Balance B/F Release during the Amount Spent Balance C/F Agency FY MoLG 5,172,483,588 16,025,001,100 16,535,369,390 4,662,115,298 LGFC 3,104,822,650 1,205,500,000 2,724,678,672 1,585,643,978** TOTAL 17,230,501,100 21,123,747,937 **This balance included an amount of Shs 1,529,309,707/= (over-released) that was refunded. This leaves a balance of Shs 56,334,271/= C/F to FY 2009/10. 5 Table 1.3 below shows the LGSIP expenditures in the different thematic areas. The activities under the service delivery accounted for 40% of the total expenditure followed by administrative decentralisation with 25%. Fiscal decentralisation accounted for 26%. Activities implemented under political decentralisation, good governance and local economic development together contributed only 10% of the total expenditure. Table 1.3: Status of expenditures in the thematic areas Balance Total Funds % Thematic areas Releases B/F Available Expenditure expenditure Service Delivery 7,292,249,818 8,432,992,429 40% Political Decentralisation 189,550,820 189,550,820 1% Administrative Decentralisation 4,712,781,976 267,003,794** 5,354,349,621 25% Fiscal Decentralisation 3,416,937,807 2,316,785,117** 5,395,136,984 26% Good Governance 909,664,197 192,000,000** 968,527,440 5% Local Economic Development 709,316,482 783,190,643 4% Total 17,230,501,100 21,123,747,937 100% ** LGFC expenditures on thematic areas 6 2.0 Highlights on Achievements 2.1 The Common Results Matrix Key Performance Indicators A number of achievements were registered by the end of the fourth quarter of FY 2008/09. The achievements are monitored using the common results matrix (CRM) which is in Annex 1. The CRM is updated whenever data becomes available through out the throughout the financial year. For key performance indicators whose results are derived from the national assessments of LGs for minimum conditions and performance measures, further analysis of the results is carried out to assess performance. While the national assessment considers a score of 7 and above as a bonus, the CRM key performance indicator is considered achieved only with a score of 9 and above. The achievements as at the end of quarter 3 2008/09 are as below: 1) The 3rd integrity survey conducted by the Inspectorate of Government reported that 76% of the house holds were satisfied with the quality of services delivered by the LGs. This achievement, which is much greater than the targeted value of 60%, was a result of the lessened tax obligations enjoyed by the households in the LGs. 2) The percentage of LGs with functional structures to mainstream and coordinate HIV/AIDS prevention activities fell from 54% in 2007/08 to 49% in 2008/09. The fall is attributed to the late support that the LGs received in this area; 3) The percentage of LGs that had their gender and environment issues integrated in the LG plans and BFP rose from 33% in 2007/08 to 38% in 2008/09. The increment is a result of the technical support that was extended to the LGs in this critical area. However, this achievement is still far below the targeted value of 70%; 4) The percentage of councils adhering to the established standard rose from 61% in 2007/08 to 67% in 2008/09. This increase is a result of the orientation and support on the standard rules and procedures that were extended to the LGs. Much as there was an increase, this was still less than the targeted estimate of 88%; 5) The percentage of the new MoLG structure that has been filled has increased from 63% in 2007/08 to 67% in 2008/09. This however, is still below the targeted percentage of 95 for the year; 6) 64% of the LGs have key strategic posts in their new structures operational. In the urban councils the percentage is 81 while in the rural it is 61. This is less than the targeted value of 90% and also a fall from 64% in 2007/08. The fall is a result of the high turn over were LG officials are leaving LG jobs to the more lucrative short term NGO occupations as noted in the Joint Monitoring Mission conducted last year; 7) The percentage of LGs with capacity building plans that meet the national criteria rose from 96% in 2007/08 to 97% in 2008/09. This achievement is higher than the targeted value of 90%. The good performance in this area is a result of the support extended to the human resource and development units by the capacity building unit in conjunction with the technical working groups; 7 8) The percentage of LGs publishing financial transfers and budgets rose from 43% in 2007/08 to 48% in 2008/09. This increment was however much less than the targeted value of 95%; 9) There has been no change in the percentage of citizens paying direct local taxes between 2007/08 and 2008/09. This percentage still stands at 5%; 10) The number of HLGs with functional CSO networks has also remained at 60% between 2007/08 and 2008/09; 11) The percentage of LGs that have ratified and are implementing the charter of accountability and code of conduct has increased from 5% in 2007/08 to 7% in 2008/09. This is much less than the targeted value of 80%. The poor performance in this area is because the charter has not yet been rolled out to the municipal councils, sub counties and town councils. Of the 80 districts where the charter has been rolled, 75 or 94% have ratified and are implementing the charter; 12) The national service delivery survey 2008, reported that 78% of the households were satisfied with the performance of the local councils. This is 3% less than the expected target for the year; 13) 97% of the households knew of the LCs as responsible for arbitration of conflicts. This is just one areas of responsibility of the LCs. There is need for this information for all areas of responsibility; 14) 28% of fiscal transfers were allocated to the non-wage recurrent budget, which is higher than the targeted value of 27%; 15) 81% of fiscal transfers to LGs were conditional and earmarked. This was higher than the targeted value of 70% for the FY; 16) The community information system (CIS) has been rolled to 28 districts. This represents 35% of all the districts. In these 28 districts, the CIS is operational in all the sub-counties. Though this percentage is less than the targeted value of 80% it is still an improvement from 21% in 2007/08. This increment can be explained by the very close link between the CIS and the "bona bagagawale" program of government. The achievements registered above, which were made possible because of the strategic interventions implemented in the different thematic areas below, suggest the need to revise the targets set for each of the indicators. 8 2.2 Service Delivery The strategic objective of the service delivery thematic area is to increase efficiency and effectiveness in service delivery by LGs. The outputs below were registered during the FY: 1) Local Development Grant: During the FY 2008/09 a total of 6.25 billion shillings was disbursed to the 80 districts and 13 municipal councils from the LGSIP basket account as Local Development Grant (LDG). Of these funds, 3.2billion were disbursed in quarter 2 while 3.05billion were disbursed in quarter 4. Funds disbursed in quarter 4 were based on an allocation formula that takes into consideration the population, land area and poverty count in the case of districts and population and poverty count in the case of municipal councils. The use of the formula was an improvement from the way funds were allocated in quarter 2. The LDG was to be used to fund unfunded priorities in the 3 year development plans that target local economic development and poverty reduction in the area of infrastructure development. Preliminary reports received from the LGs that have utilized the resources indicate that the funds were utilised as per the guidelines. Wakiso district which received about 80million shillings, for example used the funds for construction of the agro processing industry in Namulonge-Busukuma Sub County which was identified and approved by the council in line with the government policy of enhancing growth, generating employment, achieving prosperity and delivery of quality services. A number of LGs that received the funds in quarter 4 were not able to utilise the funds before the end of the financial year.Annex shows some of the investments carried out by the LGs. The disbursement schedule of the funds is attached in Annex 2. In the FY 2009/10 funds amounting to 9billion shillings have been earmarked as LDG from the basket fund. 2) Purchase of motor cycles for District Inspectors of Schools: One hundred seven of the one hundred seventy eight motor cycles procured from M/s top company (U) limited were supplied and distributed to Inspectors of Schools. 3) Procurement of two vehicles for the Urban Administration Department: The Urban Administration Department was facilitated with two vehicles; one double cabin pickup and a station wagon. The vehicles have improved the department's ability to supervise and monitor the urban councils.. 4) Implementation of LoGICS Rollout of LoGICS GIS LoGICS plus was rolled out to the districts of Mpigi, Mukono, Kapchorwa, Pallisa and Dokolo while follow-up support for LoGICS Plus GIS was extended to the districts of Bududa, Mayuge, Apac, Masindi, Bundibugyo, Kasese, Ibanda, Kiruhura, Jinja, Bulisa, Lyantonde, Masaka, Soroti and Kumi. The support extended covered the installation of the LoGICS Plus and sensitised of the HODs and other LG staff on its use. Development of LoGICS module on FDS A consultant, M/s Ecraft Systems Ltd, was contracted to incorporate the FDS reporting tool for LGs into LoGICS. The consultant completed the assignment and now LoGICS is able to capture budgets and work plans from LGs. LoGICS has been installed in LGFC which will use it for analysis of work plans and budgets. 9 Support implementation of LoGICS in PRDP Districts LoGICS was enhanced to address the technical challenges that were being faced by users of the system. The enhanced LoGICS, known as LoGICS 2009 is now easy to install, to use and to generate reports. It runs across various windows platforms perfectly well. LoGICS 2009 will be rolled out to all LGs in FY 09/10 and will be used to handle reporting requirements for LGMSD and NUSSAF II projects. Requests for support and backstopping were received and extended to PRDP districts of Pader, Kitgum, Arua, Koboko, Amuria and Soroti in preparation for their reporting requirements. The support extended to these districts included: Installation of LoGICS 2009 in all departments of the selected PRDP Districts above; Sensitisation of all HoDs and Planning Unit staff on the benefits and new features of LoGICS 2009; Identification and generation of maps and reports; Training users on the use of modules for service delivery, compliance inspection, project cycle management; LoGICS financials, LoGICS GIS; reports; and basic systems administration (such as data import/export), generation of district, division, town council, sub county, ward and parish maps 5) Provision of 13 garbage trucks to the 13 municipalities: Thirteen garbage trucks were procured and allocated to 13 municipalities to facilitate proper and timely garbage collection and disposal. The municipalities that received the trucks were: Arua, Gulu, Lira, Soroti, Tororo, Moroto, Jinja, Masaka, Mbarara and Fort- Portal. Mbale, Kabale and Entebbe municipalities did not receive any of these trucks because the garbage trucks that they were allocated in 2007, as the country was preparing to host CHOGM, were still in good condition. The remaining three trucks were therefore allocated to Hoima, Kasese and Kyenjojo town councils. 6) Implementation of e-government in MoLG: MTN was awarded a contract for the provision of Internet bandwidth to the MoLG for one year. The Internet service provided is reliable and has improved communication between MoLG and other stakeholders. 7) Support LGs to integrate gender and environment in their plans and BFPs: During the FY, 124 selected participants from Lower and Higher Local Governments technical planning committees of 5LGs were trained on the integration of cross cutting issues of gender, environment and HIV/AIDS into plans and budgets. 8) District and MoLG websites: Websites were designed and hosted for two districts of Rakai and Amuria while the MoLG web site was redesigned. Hosting charges for one year were paid for the MoLG website. The web sites are a vital tool in publishing and disseminating information on the decentralisation policy. 9) Qualitative studies on upgrading selected urban centres to town councils: Studies for upgrading urban centres to town councils were undertaken in the districts of Nakaseke, Kiboga, Bulisa, Mbale, Iganga, Isingiro, Kabarole and Sironko. The studies involved meeting with stakeholders, field visits and technical verification in the LGs that 10 requested for town councils. The studies are expected to result in proper planning and management in urban councils. 10) Orientation of new members of Town Boards: Two orientation meetings were held for new members of town boards from six districts; one in Mbale and the other in Masaka district. The meetings were meant to enhance capacities of town boards to enable them deliver quality services to the town board communities through: organised urban growth, clear understanding of their roles, skills in handling challenges or urbanisation, relevant policy and legal reforms, development control, urban planning and development. 11) Orientation of City, Municipal and Town Councils Town Clerks: Town clerks of the City, Municipal and Town Councils of 116 urban LGs attended a meeting at Imperial Royal Hotel, Kampala. The meeting enabled the town clerks understand their roles in urban growth and equipped them in handling the challenges in urbanisation. Commitments were made by the town clerks on implementation of the structural plans. 12) Dissemination of Public Private Partnership policy: The decentralization governance reform has yielded expanded LGs service delivery responsibilities to the extent that they currently absorb approximately 34% of the national non-discretionary budget. In spite of the achievements registered with respect to the quantity of services delivered by LGs, a number of challenges still remain. LGs face capacity challenges and as a result, decentralized services are not being delivered in the most equitable, effective and cost effective manner. Moreover, recent evidence suggests that meaningful efficiency and effectiveness of decentralized service delivery can only be a product of shared effort between LGs and other stakeholders. This would enable LGs to harness the complementary resources and expertise available with the private sector and other civil society actors. Dissemination of the public-private- partnership policy was carried out in Adjuman,Busia,Bushenyi,Hoima, Manafwa and Soroto. 13) Minimum standards for service delivery: Minimum standards of service delivery for education, water, roads, production and gender were finalised. The minimum standards for health and environment will be finalised in FY 2009/10 before they are disseminated all stakeholders. 14) Road works in selected Urban Councils: Six urban councils of Arua MC, Fort Portal MC, Moroto MC, Nebbi TC, Adjumani TC and Kira TC received funds totalling to 500million shillings for carrying out road works. Preliminary reports indicate that the funds were properly utilised by the urban councils. 11 2.3 Political Decentralisation The strategic objective of political decentralisation is to enhance political accountability in LGs. During the FY 2008/09 the following outputs were registered in this area: 1) Study on the creation of new districts: Studies were undertaken on the creation of new districts in order to inform the cabinet. The studies resulted into proposals to create 13 new districts, 3 new municipalities and 13 new town councils. The districts and municipalities to be effective in FY 2009/10 subject to the approval of cabinet are: a) Zombo from Nebbi (Okoro County) b) Amudat from Nakapiripirit (Upe County) c) Otuke from Lira (Otuke County) d) Lamwo from Kitgum (Lamwo County) e) Kyegegwa from Kyenjojo (Kyaka County) f) Buikwe from Mukono (Buikwe County) g) Buyende from Kamuli (Budiope County) h) Hoima Municipal Council i) Mukono Municipal Council j) Kasese Municipal Council Districts expected to become effective in FY 2010/11 are: a) Namayingo from Bugiri (Bukhooli South Constituency) b) Luuka from Iganga (Luuka County) c) Kiryandongo from Masindi (Kibanda County) d) Ntoroko from Bundibugyo (Ntoroko County) e) Serere from Soroti (Kasilo and Serere counties) f) Mukuju from Tororo (Tororo County) g) Kisoko from Tororo (West Budama County). 2) Support to the conference of East African Ministers Responsible for Local Governments: A two day conference for ministers responsible for LGs in 5 East African states (Burundi, Rwanda, Kenya, Tanzania and Uganda) was convened in Kampala from 5th to 6th March 2009 by GoU in collaboration with the United Nations Department for Economic and Social Affairs (UNDESA). The conference strategized on how to harmonise and strengthen decentralisation governance to facilitate the achievement of the Millennium Development Goals (MDGs). 3) Guidelines on relationship among various leaders at LG level: Guidelines on the relationship among CAOs, RDCs and chairpersons were discussed and disseminated to all stakeholders. The guidelines have lead to clarity of roles among elected and appointed LG leaders which has resulted in reduction of conflicts and harmony among LG leaders. 4) Local administration of justice: 12 The training of trainers was conducted for Local Council courts official from 17LGs. The training has resulted into a resource pool of trainers that will be tasked with training other members. Through the Justice, Law and Order Sector (JLOS), MoLG is implementing a UNDP/UNCDF funded component to enhance local council administration of justice for districts in conflict affected Northern Uganda to create legal and human rights awareness for the communities. The programme has provided necessary materials like the Local Council Courts Guides for use in Local Council Courts and training of the court officials. 5) Technical support supervision of contract committees: Support supervision visits were undertaken in 54 HLGs for compliance to the PPDA Guidelines. As a result, there is great adherence to the guidelines in evaluation and award of contracts by the LGs as evidenced by the results of the 2008 national assessment. The results indicate that 91% (73 districts) attained rewards in procurement capacity and performance. 6) Arbitration of conflict in LGs: MoLG was involved in arbitration of conflicts during the FY 2008/09. Conflicts were arbitrated in the districts of Moyo, Maracha-Terego, Kayunga, Mbale, Kaabong and Masaka municipalities among others. In a number of cases, the conflicts were between appointed and elected leaders. In some districts like Nakaseke and Maracha-Terego local leaders were wrangling over the location of the headquarters for their districts. In Marach- Terego the wrangling has been going on for the last two years and at the moment, the matter is in court. Subsequent action will be determined after the case is disposed of. The 2008 national service delivery survey reported that 97% of the households knew local councils as a place for arbitration or conflict resolution. 7) Joint sensitisation of user committees: Two regional trainings were conducted for user committee members from Western and Northern Uganda. In the North the trainings were in Lira while in the West they were held in Kasese district. Each of the participating districts had one member of the user committees from health, water and education. The training created awareness of the user committees in supervision, maintenance and sustainability in service delivery. 13 2.4 Administrative Decentralisation The strategic objective of administrative decentralisation is to ensure efficient and effective LG administrations. During the FY 2008/09, the following outputs were registered: 1) Technical support supervision and training of District Service Committees (DSCs): Training and Induction of 382 newly appointed chairpersons and members of District Service Commissions (DSCs) for the districts of Isingiro, Lyantonde, Kaabong, Abim, Kabale, Masake, Luwero, Budaka, Koboko, Kisoro, Rakai, Apac, Kyenjojo, Hoima, Kumi, Kabarole, Kampala City Council, Nakasongola, Kapchorwa, Manafwa, Kibale, Budibugyo, Masindi and Mityana was conducted. Technical support was extended to DSCs during meetings held in Mbale and Mukono for DSC members, their secretaries and personnel officers. A total of 108 participants benefited from the meeting in Mbale while 49 benefited from the meeting in Mukono. The technical support meetings led to increased understanding of the roles of DSCs and enhanced the capacity of DSCs in handling personnel matters. 2) Orientation and induction of newly appointed DCAOs and some MoLG staff: Newly appointed Deputy Chief Administrative Officers (DCAOs) and new staff members to the Ministry of Local Government were oriented and inducted into government operations and decentralisation. The orientation that was conducted at KCC house hall enabled the new staff appreciate the terms and conditions of service in the Uganda Public Service. Concepts of "ROM", the recognition scheme and HIV/AIDS were elaborated so as to empower them. 3) Orientation of new district, city and municipal contracts committee members: One hundred ten (110) new members of city, district and municipal contracts committees received orientation on their operations. The objective of the orientation was to ensure efficiency and effectiveness in handling procurement processes in order to promote sound climate for value for money. 4) Training and Technical Support to LGPACs.: Technical support supervision was undertaken in 70 districts that had operational Local Government Public Accounts Committees (LGPACs). In the same period, support in form of training was extended to one hundred fifty eight (158) newly appointed members of the LGPACs. The support was intended to enhance the accountability and transparency levels of the committees. 5) Monitoring JARD 2008, under takings: The 5th Joint Annual Review of Decentralisation, JARD 2008, was held under the theme "Good Governance and Increasing Incomes: A Key to Local Development" from 3rd to 4th December 2008 in Kampala. A total of 290 participants that included development partners, Members of parliament, MoLG, line ministries, RDCs, District chairpersons, CAOs, Town clerks, sub county chiefs and other invited guests attended. During JARD 2008, a number of undertakings and recommendations, which will be reported on at the next JARD, were agreed to. The implementation of the undertakings and recommendations was monitored during the year. Annex 6 shows the status of implementation of the undertakings while Annex 7 shows the status of implementation of the recommendations. 14 The annexes show that there has been good progress in implementation. It is hoped that by JARD 2009, a number of the targets set will have been met. 6) Support to weak LGs on HRM functions: Support was extended to a number of LGs that had weak HRM functions. The weak LGs were supported in scheduling of tasks, cascading transfer of skills and mapping of duties to performance milestones. The support revealed performance gaps other than those related to HRM/D. 7) Exposure and study tours for LGs: HRM officers from persistently weak LGS were selected and guided through though exposure and study tour to LGs wit good performance on matters relating to performance appraisal, capacity building function, "RIM" and good practices. 8) Payroll management Support to LGs: Support was extended to LG staff to build and gain capacity on handling the training function, payroll- EFT and STP systems, staff performance appraisal and HRM functions. The LG staff were taken through the policies, systems and approaches on good and proven practices on STP of payroll. The training is expected to result in a reduction on the number of LG staff not accessing the payroll, the quality of staff performance appraisal and an increase in the number of meetings on performance appraisal between the appraisers and subordinates. 9) Procurement of consultant to review LGSIP: Bids were received from consultancy firms that responded to the advert for the review of LGSIP. An evaluation committee was appointed to evaluate the bids before a No Objection to procure the consultant can be sought. The main objective of the review is to examine the LGSIP design, implementation, financing, monitoring and evaluation modalities and the extent to which its implementation has contributed to the achievement of the LGSIP, national and Millennium Development goals and objectives. 10) Operation of sub committees for LGSIP implementation: The three thematic sub committees, namely; 1) service delivery and local economic development 2) political and administrative decentralisation 3) good governance and fiscal decentralisation were operationalised. The sub committees were instrumental in reviewing and scrutinising activities that had been proposed for implementation in the draft 2009/10 annual work plan and budget. The thematic sub committees are credited for the formulation of the approved 2009/10 LGSIP annual work plan and budget. The sub committees are expected to plan the critical role of reviewing the progress reports on the activities being implemented. 11) Supply, installation, configuration and maintenance of a Corporate Antivirus Solution for MoLG: A Corporate Antivirus Solution with 200 licenses with a validity of 2 years was procured, installed and configured for use on MoLG computer network. The computers and 7 servers on the network are now protected and secured 12) Dissemination of District and Urban Planning Guides (DUPAG) in Newly Created Districts: 15 Since FY 2007/08, MoLG undertook to give newly created districts technical support in the area of development planning and budgeting as it was found that most of the staff that was recruited in the new districts was either recruits right from college or were formally in the private sector. These activities continued in the FY 2008/09 covering the districts of Koboko, Pader, Amuria, Manafwa, Budaka, Kotido and Kaboong. 13) National Assessment of Local Governments: The 2008 national assessment of LGs for minimum conditions and performance measures was completed successfully. The analysis of combined performance shows that out of the national total of 1,105 LGs, only 112 LGs earned rewards of which 16 were districts, 5 were Municipals and City Divisions, 5 Municipal Divisions and 86 District LLGs. A total of 42 LGs were static while 903 were penalised on basis of failure to meet Minimum conditions 54 of which were Districts, 11 Municipals and City divisions, 28 Municipal Divisions and 925 District LLGs as shown in Annex 5. The assessment identified a number of emerging issues some of which are listed below: a) The standard of keeping records is declining as many LGs could not produce vital documents for verification by the NAT. b) Despite a move towards realistic budgeting, some local governments are faced with the challenge of meagre revenue collections. c) There is a concern of what mode of the Development Plan should be used by the LGs. Some districts like Katakwi, Kabarole. Kamwenge, Kyenjojo and Lyantonde had adopted a Five Year Development plan format which was requirement by the National Planning Authority. However, the Law provides that any appropriation of funds by a Council should be through a budget based on a three year approved development plan. d) There is increasing total disregard for the logical flow of the Development plan in relation to the budget. Many LGs approved plans and budgets on the same day bringing to question whether the plans were actually analysed. e) There is an interesting development of LGs presenting evidence of functionality of TPCs in form of minutes of meetings which were reportedly held on weekends, public holidays and worse even nonexistent days. This was found in the NAT sampled LGs and internally assessed LGs. f) It was noted in some LGs that Force Account is being used in total disregard of the PPDA procedures. The LGs defaulting these procedures are many, but an example was Nebbi District which did not even prepare BoQs for the projects reportedly executed on this kind of operation. 14) Basic ICT training skills for LGs: Training in basic ICT skills was extended to some selected PRDP districts, namely; Nakapiripirit, Adjumani and Lira in order to enable them to effectively manage data and use electronic data processing equipments to ensure efficiency in service delivery. Basic ICT training for senior, middle and junior level officials was also extended to Kiboga and Nakasongola districts. The training enabled officials from the districts appreciate the use of ICT. The areas covered during the trainings were: a) Basic troubleshooting of a computer including cleaning PCs periodically with antivirus, basic repair and maintenance of computer hardware including dusting, hard disk & memory management, etc; 16 b) Sensitizing HoDS and other LG officials on the appreciation and need to invest in ICTs; c) Training in spreadsheets using Ms Excel; d) Presentation using PowerPoint; e) Training in the use of Internet and e-mail applications and how to share information using a LAN; f) Information security including use of passwords and user IDs, threats and attacks, data backups, antivirus protection, overview of Active Directory, etc. 15) Professional Training of LG Staff: One hundred forty one (141) LG staff have been supported to pursue professional and career courses at the Uganda Management Institute (UMI), The courses in which the LG staff have been supported are: public administration and management (107LG staff), human resource management (16LG staff), procurement (8 LG staff) and CIPS (10 LG staff). The 2008 national assessment reported that 97% of the districts had functional capacity for capacity building planning which is a direct impact of the professional courses pursued by the LG staff. 17 2.5 Fiscal Decentralisation The strategic objective of the fiscal decentralisation and LG public finance management is to strengthen financial capacity of LGs to carry out their mandates. During FY 2008/09, the following outputs were registered during the third quarter: 1) Sensitization on property rating handbook: Workshops intended to enhance revenue from rates and formulate rates payers associations were conducted in eleven districts of Masaka, Hoima, Mbale, Arua, Masindi, Lira, Soroti, Gulu, Luwero, Nebbi and Kayunga. Over 2,000 rate payers were trained and are expected to play a crucial role in increasing the property rate revenue from the current level of 27 billion shillings. 2) Induction of LGFC staff and team building: The LGFC corporate strategy 2004-2008 was reviewed and a new corporate strategy 2009/2012 developed and approved. Equally reviewed were the manpower and organisational structure in line with the changed decentralisation landscape and other legal requirements. The changes are expected to make the commission focused to promote equitable distribution and effective mobilisation of financial resources for service delivery in LGs. The induction and team building exercise was meant to enable staff and commissioners develop cohesiveness in operations, create effective work systems and procedures and develop collective responsibility in the effort to achieve the mandated functions of the commission. 3) Support implementation of new local taxes and development of regulations: In July 2008, the Government of Uganda amended the Local Governments Act and introduced two new local taxes namely:- The Local Service Tax (LST), and The Local Government Hotel Tax (LHT). The new local taxes took effect on 1 st July 2008, and are collected by all Local Governments in the country. During the FY, the Ministry undertook complementary activities in LGs to ensure effective and efficient collection and administration of the two taxes. The activities undertaken included:- issuing of guidance circulars, distributing of the amendments to the Act, radio talk shows, circulating flyers, presenting in various forum, advertising in the print media, developing, printing and issuing the implementation guidelines, LGs staff orientation and consultation on how best to collect LST from commercial farmers. Eight sub-region orientation workshops for over 960 HLG technical staffs on the new taxes were under taken. During the formulation of the two taxes, they were expected to yield Shs 67.6 billion (Shs 60 billion from LST and Shs 6.7 billions from LHT) in local revenue in the first year and it was anticipated to rise more in the subsequent years. Preliminary data available revealed that KCC, 79 districts, 13 municipal councils and 73 Town Councils collected Shs 3.838 billion from LST and Shs 0.985 billion from LHT, making a total of 4.8billion. Kampala City Council alone collected a total of Shs 1.3 billion from the two taxes. The total collection from the two taxes is far below the initial projections as seen in the summary table 1 below. The preliminary figures on the two new taxes appear in Annex 3. Actual amounts collected will be availed after all LGs have finalized their final accounts for the FY 2008/09. 18 Table 1: Performance of the new taxes (LST and LHT) in 2008/09 LST LHT LGs Budgeted Actual Budgeted Actual Total actual Districts 2,809,453,823 1,977,589,325 176,842,851 28,273,102 2,005,862,427 Town councils 710,217,722 489,663,669 349,361,000 157,242,341 646,906,010 Municipals 676,729,655 566,649,234 416,472,569 323,797,885 890,447,119 KCC 1,156,046,690 804,527,846 729,835,000 475,554,468 1,280,082,314 Total 5,352,447,890 3,838,430,074 1,672,511,420 984,867,796 4,823,297,870 Source: LGFC 4) Consultation on LST for commercial farmers: During the sub-regional workshop technical officers where consulted on how best to bring the farmers into the tax net of LST. The following key principles were generally agreed upon:- a) A commercial farmer was defined as an individual person either engaged in the production of crops or livestock or apiary or forestry or rearing animals or any other commodity of agricultural nature for purpose of sale on the market that generates monthly average sales of more than Shs 200,000. b) An enumeration committee composed of five technical staff at the Lower Local Government appointed by the chief executive of the Lower Local Government to carry out both the enumeration and assessment of LST for farmers. Local leaders of local administrate units will be ex-officials on the committee. c) Where a farmer produces more than one crop or livestock, the enumeration and assessment shall be based on one major dominant crop or livestock or any other agricultural product produced for the market. d) Four member of the Appeals Tribunal shall be the RDC, CAO/TC, Head of Finance and chairperson for the committee responsible for finance. (As per SI 243-17). e) Farmers shall pay the LST once in full between July to December of every Financial Year to a lower local government where the farm is located. The period between January to June will be used for enumeration, assessment and enforcement. f) And any farmer or person who is eligible or may wish to pay LST will register with the nearest tax office of a local government and pay the appropriate amount. 5) Assess Impact of sector budgets on LGs services The assessment of the impact of sector budgets on LG services included: document review, design of checklist, consultation with sector ministries (education, health, water, roads, gender, environment, agriculture and lands), consultation with a sample of LGs (Rukungiri, Kanungu, Kaberamaido, Ibanda, Kasese, Kisoro, Nebbi Ntungamo, Apac, Kamuli, Kibaale, Rakai, Tororo and Municipalities of F/Portal MC, Mbarara MC, Lira MC), analysis of data and information collected and discussion of the findings and recommendations with the stakeholders. Some of the findings were: a) The LGs budget performance(budgeted vis a vis released) was fair (over 90%) during the period being assessed but the level of service delivery can be improved 19 by increasing funding (conditional, unconditional and equalisation grants) to LGs following the drastic decline in local revenues; b) The fairly good performance in almost all the sectors is based on the small targets rhyming with available small government funding but leaving out very important sector activities and priorities unattended to at the same time; c) The departments of finance, planning, internal audit, administration and council virtually have no funding and yet they carry out functional activities that coordinate and facilitate the rest of other departments. This subsequently impacts on the general performance of the rest of the sectors and the whole LG with respect of real service delivery; d) Approximately 96% of the LG budgets are composed of grants from the centre which undermines the decentralisation policy; e) The current sector key performance indicators do not comprehensively give an entire picture of all the important aspects that need to be taken into account for each sector. 6) Professional training of LGs accountants: The MoLG has continued to support LGs in form of tuition, exam fees, annual subscription and registration for LGs' accountants and auditors in professional courses such as ACCA, CPAU and ATCU. A total of 923 students 60(ACCA), 773 (CPAU) and 90 (ATCU) are currently receiving this support. To date a total of 444 students from the LGs have completed the courses as follows: ATC (404), CPA (U) (38), and ACCA (2). Regular special inspection of up-country training centres is carried to assess their effectiveness. As a result of the training, all the LGs are now able to produce their final accounts in time. 7) Support weak LGs to produce final accounts on time: Four hundred eighty (480) accounts staff from LGs that had qualified and disclaimer opinions, from the Office of the Auditor General, were mentored in the production of timely and quality financial statements. 8) Audit of LGSIP 2007/08 implementation: The terms of Joint Financing Agreement mandate the Auditor General to audit the LGSIP implementation. Accordingly, the Auditor General Audited the LGSIP implementation for the FY 2007/08. Though the audit report gave a "non qualified opinion", it indicates several critical areas that urgently need improvement in order to strengthen financial management and control procedures. MoLG has already taken steps to address the areas mentioned in the report so as to improve financial management and control. Plans are underway to audit the LGSIP 2008/09 implementation. 9) Update Best Practices Manual to include new taxes: Consultative meeting on the draft framework for analysing data collected for updating the best practices manual were held with sectors and officials from the districts of Ibanda, Kasese, Kapchorwa, Mukono, Jinja and Manafwa. The final framework that is being used to analyse data for best practices is: a) The practice initiated by the LG, should be sustainable and not dependant for its success, implementation or resources on any other program or project; b) The practice should demonstrate creative use of governmental and or corporate powers provided to the LGs by the LG Act. c) The initiative should be easily replicable and can progress to the application stage in a relatively short timeframe; 20 d) The practice should have operationally demonstrated and proven oven a reasonable time period to be an effective response to the identified needs of its target beneficiaries; e) The practice should have demonstrated level of sustainability; f) The practice should not require huge amounts of resources or funding to replicate and is easy to implement; g) The practice should have the potential to address other needs or deliver services beyond those originally targeted or intended. 10) Strengthening land based revenues in 10 Pilot local governments: Feedback and validation on the implementation issues of the Land based revenues were held with members of technical planning committees, members of executive council and representatives of district land boards in 10 LGs. The LGs include Jinja, Mbale, Kabale, Arua and Mukono districts, Entebbe, Mbarara and Lira municipal councils, Luwero and Kumi town councils. The land based revenues discussed include: property rates, ground rent, contribution in lieu of rates from governments and land based charges (processing fees, transfer fees, valuation fees, conveyance fees, build plans approval, Building inspection fee and survey fee). The major finding indicated that: a) Land based revenues are feasible in all LGs visited. In the FY 2007/08 the 10 LGs above collected a total of UGX 2.3billion from these revenue sources alone. This implies an annual potential of UGX40 billion from the land based revenues for all the LGs; b) A number of land based activities are taking place in LGs but with no record is documented except in Entebbe MC that had records and registers regarding revenue collected from all land based activities that take place in the municipality; c) Councils had valuation rolls that have not been updated since their approval in 2006; d) 50% of the LGs are collecting these revenues by themselves while the rest tendered out the management to private collectors; e) The rate chargeable as rental value by the councils varies from 4% to 11%. 11) Technical support to develop strategies for local revenue improvements: Technical support on prioritisation and selection of best practices for local revenue enhancement using the cost benefit analysis method was extended to three districts, namely: Ntungamo, Kabale and Bushenyi. The 2008 national assessment reported that the three districts had local revenue enhancement plans with clear strategies with estimated costs to achieve the estimated revenues. This is a direct result of the technical support received. 12) Development of guide for implementation of new taxes: The practical guide for the implementation of Local Service Tax and Local Hotel Tax was finalised after extensive consultations. Consultations were made with members of District Executive Council and Technical Planning Committees of 17 districts, namely: Ntungamo, Kabale, Bushenyi, Bukedea, Butaleja, Manafwa, Busia, Kabarole, Mubende, Lira, Nebbi, Kasese, Ibanda, Kanungu, Rukungiri, Kamuli and Jinja. The guide has been disseminated to these 17 districts and will be disseminated to all LGs during FY 2009/10. The guide 21 contains the details information on the processes of Enumeration, Registration, assessment, collection and enforcement under each of the categories of LST and HT. 13) LOGICS PLUS financial data report generation: Audited final accounts for FY 2006/07 and 2007/08, were collected from the LGs in order to populate LoGICS financials with revenue and expenditure data for analysis. Data entry was halted to allow for fine tuning of the system. However, preliminary data available indicates an increase of local revenue of 17% in 2007/08 from the 98billion collected in 2006/07. Annex 4 shows the trend in local revenue performance from 2002/03 to 2007/08. 14) Up-grade LOGICS PLUS compliance inspection module: The evaluation of proposals submitted for the assignment to upgrade LoGICS Plus Compliance Inspection module into a Performance Assessment module was completed and the contract was awarded. The assignment was halted pending the completion the performance assessment manual. 15) Support the Streamlining of payment and Sharing of Royalties in LGs with resource endowments: Consultations were made with 17 LGs and central government institutions including Uganda Wild Life Authority (UWA), Electricity Regulatory Authority (ERA), Ministry of Energy and Minerals Development (MEMD), ESKOM and MoLG aimed at documenting practices and issues in the management of royalties so as to inform the modalities for sharing of royalties. The exercise revealed the twenty eight (28) LGs benefit from royalties of 2.9billion in 2007/08 against the potential of 16.5billion. In FY 2009/10, LGs with natural endowments and industrial establishments will receive support so as to collect the royalties due to them. 22 2.6 Good Governance The strategic objective of the good governance thematic area is to ensure citizens exercise their rights and fulfil their obligations with respect to local governance and service delivery. In FY 2008/09, the outputs below were registered: 1) Annual negotiations on the conditions for grants: Six regional consultations were held during the quarter: 2 in Jinja, 2 in Masaka and 2 in Lira districts to gather views from LGs that need to be negotiated upon. The issues derived from these consultations were the cornerstones of negotiations the agreed position on which were then signed between the parties. 2) Strengthening Local Council Courts Administration of Justice: Local Council III court officials from 10 districts of Isingiro, Kabale, Kamwenge, Maracha- Terego, Sembabule, Mubende, Tororo, Koboko, Kamuli and Kiruhura were trained in order to strengthen the Local Council courts administration of justice through: improvement in court proceedings, improvement in time taken to hear and dispose of cases and improvement in record keeping. The officials that were trained received Local Council Court reference materials during the training. The 2008 National Service Delivery Survey reported that 78% of the households were satisfied with the local council courts. The local council courts were appreciated as a result of the skills they acquired from the trainings. 3) Support local government budget committee (LGBC): LGBC provides a forum of both LGs and CG senior officers to discuss issues of fiscal decentralization as per the ToRs in the Fiscal Decentralization Strategy. The discussions held this quarter include: 1) The draft report on the study on Participatory Budgeting System and Financial Capacity of LGs presented by the consultant. 2) The report on national annual LGs assessment carried out in November – December 2008. 3) Preparation for sector conditional grants negotiations. 4) The status of submission by LGBFPs and emerging issues. 23 2.7 Local Economic Development (LED) The strategic objective of the local economic development thematic area is to create a conducive environment for investment to promote economic development in local areas. During the FY 2008/09, the following was achieved: 1) Setup activities: The following set up activities were carried out: a) Assessment of the institutional readiness of the HLGs & LLGs for LED. This enabled the identification of gaps that need to be filled b) Formation of district LED propagation team (LEDPT); c) Induction of the district LEDPT members d) Sensitisation of elected district leaders on LED; e) Selection and formation of the LEDPT in the LLGs. This was done by the district LEDPT teams meeting each of the LLG's TPCs to identify teams; f) Orientation of LLGs TPCs including LEDPT and elected leaders on LED; g) Appointment of LED focal point persons for each of the LLGs; h) Conducted a baseline survey to identify the LED actors in the districts; i) Established communication linkage with the various LED actors (PSO's CSO's and farmers associations in districts. 2) Establishment of the National Gender Resource Team The National Gender Resource Team (NGRT) was inaugurated. The NGRT has been established to strengthen the MGLSD's efforts in providing leadership in gender mainstreaming and eventual attainment of gender equity in LED. NGRT was oriented on LED as well as the Third District Development Programme (DDP III). The team is now ready to guide, offer technical backstopping and mentor the LED promotion actors on issues of gender mainstreaming. 3) Rehabilitation of community access roads Nine hundred (900) Km of community access roads have been fully rehabilitated in this FY. This is less than the targeted 1000 Km expected during the period. The slow pace of rehabilitation of the roads is a result of two main constraints faced by the contractors. Firstly, there is limited availability of road equipment in the country to meet the high demand arising from increased road construction works in the country. Secondly, most of the civil works commenced during the onset of the rains and this disrupted work on the roads. Supervision of the works has been stepped up as a measure to speed up the work. The rehabilitation of roads has opened up the previously inaccessible rural areas to markets. Produce can be seen along the road side awaiting loading on trucks. 4) Consultancy to design markets and agro processing facilities The feasibility study on urban markets captured the attention of development partners who have gone ahead to support the consultancy to design markets and agro processing facilities. Kagga & Partners was contracted to prepare designs for Rural Markets, Agro- processing Facilities, Produce Stores, and Cold Rooms located in the 26 districts. The assignment involved carrying out of a needs assessment and an economic analysis for all the prioritized markets and agro-processing facilities to justify the investments as well as preparation of designs and bid documents. 24 So far, the bid documents for the markets have been completed and are to be submitted for approval. The preparation of the bid documents for the agro-processing facilities is in final stages. According to the needs assessment report, the size of the markets, in the terms of the number of stalls and other facilities such as toilets, will vary according to the number of vendors operating in the markets. The number of stalls, as determined by the needs assessment, ranges from 30 for the small markets to 200 for the big markets. With regard to the agro-processing facilities, the decision to invest in a particular type of facility will be guided by the economic analysis that was carried out for all the prioritized facilities. On the other hand, the capacity of the plants to be procured and installed will depend on the volume of agricultural products in the sub county. 5) Training key LG officials on LED initiatives Training for key LG officials to track and support LED initiatives for women and youth. Forty five (45) officials from five 5 districts and one municipality under DDP III, were oriented on how to track and support LED initiatives for women and youth. Participants appreciated the centrality of gender equity and equality in achieving economic growth and sustainable development in Uganda. They understood and appreciated the concept of LED and its context in the DDP III. They also understood the institutional set up for LED in the LGs and most importantly they developed Action Plans for implementing the gender equity in LED activities and overall LED Action Plans. 25 3.0 Challenges and Mitigation Measures In the implementation of the above activities, the stakeholders encountered some challenges. This section presents these challenges and describes the mitigation measures that were taken to offset any eventualities. 1) While carrying out the 2008 national assessment, the poor condition of roads in many districts made travelling across them to selected sub counties very difficult. The poor condition of the roads was further worsened by the heavy rains experienced during that time, for example in Apac, travelling to Akokokoro Sub County which had been sampled was abandoned due to the impassability of the road after a down pour; the lack of stable electricity in most districts – especially the west Nile, northern and Eastern regions – affected the compilation and submission of district reports in time; insecurity in especially in Karamoja also made travelling to some sub counties difficult. The team travelling to Moroto for example, found hardship in travelling to Mutany which had been sampled due to security concerns. 2) There was a campaign by political leaders in the districts of Kalangala, Mityana, Wakiso and Kampala City Council discouraging and inciting people, hotels managers/owners, businesspersons against paying the newly introduce LST and LHT, which has seriously undermined collection and affected the proceeds; A number of LGs have not exploited their LHT and LST potentials from the self employed and practicing professionals, self employed artisans, businesspersons and hotels/lodges in small trading canters. The LGs are mostly depending on the employed salary earners; LHT and LST yields are more in urban councils than in rural LGs. Some Districts like Abim, Kotido and Bukwo reported that, they did not have any hotel in their Districts and therefore no LHT was collected; there were isolated cases of non-compliance with the law on hotel tax in Kasese and Amuru Districts; Mweya and Para Para Safari Lodges were reported to have collected money from the residents and refused to remit LHT to Kasese and Amuru Districts respectively. 3) On the implementation of LoGICS, a number of LGs lacked computers with the minimum specifications for installation and use of LoGICS 2009; some LG personnel did not have the basic skills for operating computers; some LGs still consider the use of LoGICS as additional work and not as part of their routine work, for which they demand to be paid; there is still lack of harmonization in data collection by sector MISs in LGs resulting into duplication and resources wastage as well as data collection fatigue. 4) On popularising the national LGs skills development strategy political leaders were claiming for long term professional courses for which they are not eligible as per the national LG capacity building policy. 5) On support to LG staff to build and gain capacity on the payroll system and staff appraisal functions, it was noted that the demand to support LGs on payroll management through STP is enormous; the intermittent power supply to some LGs complicates payroll management; a number of supervisors view staff performance appraisal as wastage of time. 26 6) The difference in professional and work experience of the newly appointed DCAOs meant they were at different levels in regard to LG knowledge and public administration was a challenge in their orientation and induction; lack of management training equipment e.g. CDs, to amplify communication. 7) The failure by some LGs to attract staff to key posts like engineer, personnel, planning and DEO and the decline in local revenue has impacted negatively on the support supervision capacity of the HRM/D functions in these LGs 8) Much as the thematic sub committees played an important role in analysing and scrutinising activities for implementation in the annual work plan, the numerous meetings held by the thematic sub committees to achieve consensus on the activities, resulted into late submission and approval of the annual work plan and budget. 9) The technical and financial capacity of the private sector is still lacking for meaningful implementation of PPP 27 4.0 Lessons and Recommendations 4.1 Key Lessons From the implementation of activities under the LGSIP, some lessons have been learnt and subsequent recommendations advanced accordingly, as follows: 1)In the implementation of LoGICS, it was learned that LGs with good leadership and management very readily embrace LoGICS and use it for informed decision making while those with poor leadership lack appreciation for its use; 2)The planning and budgeting subcommittee provides a forum for all implementing agencies and departments to actively engage each other in the formulation of LGSIP programmes. The forum provides an opportunity for the implementing agencies to synchronise their planned activities to achieve greater results; 3)The thematic sub committees provide an opportunity for scrutinizing, analysing and harmonising activities for implementation in the decentralisation sector. Much as the numerous meetings of the sub committees lead to delays in approval of the work plan and budget, the final work plan is harmonised with clear inputs and outputs from all stakeholders; 4)While sensitising LGs on the property rating handbook, it was learned that property owners are willing to pay the rates but need to be sensitized for them to know what they are contributing to; 5)In the collection of data on local revenue from LGs, it was learned that there were a number of best practices that could be incorporated into the inventory for better performance of local revenues; 6)The initiative to create and gazette town councils will promote organised settlement. Small urban councils will also promote decongestion of the big urban councils; 7)During the formation of rate payers associations in the LGs, it was learned that property owners were willing and eager to pay property rates but needed to be sensitised so as to know what they were contributing to as far as service delivery was concerned; 8)While mentoring the LGs accounts staff, it was learned that timing of the mentoring was very critical. Mentoring should be given early to allow LGs staff the opportunity to prepare final accounts; 9)A number of LGs have been piloting the PPP, for example in the case of tendering out markets for revenue collection. The LGs were, however, not aware of the various forms of partnerships that they may gain from. 10) Computer virus affects staff productivity and is a source of staff frustration in using computers; 28 11) Joint planning for the first phase districts, yielded greater results as well as the idea of having a combined workshop to train the key LED actors to track and support LED initiatives for women and youth; 12) The induction and orientation of newly appointed staff should be done early before deployment. Staff who is joining the administrative cadre for the first time should be inducted with a tailor made course in order to fill evident gaps. 29 4.2 Key Recommendations Arising from the earlier cited implementation challenges and lessons, the following recommendations are advanced: 1) Sensitization of technocrats and councillors on the property rating handbook should be conducted through out the country so that compliance levels can improve and thus increase provision of services; 2) The thematic, planning and budgeting subcommittee should be institutionalised and empowered with skills necessary for improved implementation of LGSIP. A schedule for meetings to consider work plans and reports should be drawn so as to have the annual work plans and progress reports approved in time; 3) Local politicians should be sensitized on the LST and LHT implementation guidelines to avoid political interference in the future. Sensitization meetings on LHT for hotel owners and managers should also be organized in the major urban councils in the country. This will help hotel owners and managers to appreciate the LHT guidelines better; 4) A LoGICS TWG comprising all members of NTM&E working group and all sectors running MISs in LGs should be established to discuss ways of harmonizing data collection, entry and sharing of data sets and overall operationalization of LoGICS in LGs. LoGICS should be promoted in the NM&E TWG and adopted as a government M&E system and its use in LGs be advocated for at the highest level possible. There is also a need to hold quarterly system review meetings in order to share experiences from LGs in the use and processing of data using LoGICS as a feedback mechanism for MoLG; 5) All the guidelines available including guidelines on recruitment of LG staff, guidelines on upgrading urban authorities should be disseminated to the LGs to enable them carry out their work as per the laid down guidelines and in an organised manner. All the available material should be posted on the available websites of the implementing institutions to facilitate their circulation; 6) Government should come up with a comprehensive phased strategy on attraction, development and retention of staff to LGs filling the acute manpower shortage; 7) The suggestion to amendment of the LGA so as to increase the rate of LHT per room occupied from 500/= to 1,000/= in order to enhance LHT yields particularly in rural growth centre and use of bracketed rate of turnover instead of "Stars" should be given consideration; 8) Sensitisation on property rates and formulation of rates payers associations should be rolled through out the country so that compliance levels can go up and thus increase provision of service. 30 Annex 1: The common results matrix Key Performance Indictor 2005/06 2007/08 2008/09 Comment on the 2008/09 achievements Data Source Base Target Actual Target Actual Thematic Area: Service Delivery: Strategic Objective: To Increase Efficiency and Effectiveness in Service Delivery by LGs % LGs meeting service delivery The service delivery standards are not yet in place. National assessment report standards 50% - 60% This indicator can therefore not be assessed. '08 % of population satisfied with LG 75.6% of households are satisfied with the quality of The 3rd National Integrity services ( Measured by the services provided by the LGs as per the 3rd Survey, October 2008 "general helpfulness" indicator in 53% 55% 76% 60% 76% National Integrity Survey, October 2008. the IGG Integrity Survey) % of Higher and Lower LGs with 38 districts and 10 municipal councils had functional National assessment report functional structures to structures for mainstreaming and coordinating '08 mainstreaming and co-ordinate 30% 65% 54% 90% 49% HIV/AIDS in LGs. The fall in this percentage is HIV/AID in the LG Service delivery explained by the late support that was provided to system the LGs. Gender and environment integrated More districts benefited from technical support National assessment report in LG-plans and BFPs 15% 45% 33% 70% 38% extended by the MoLG in the this area, thus the '08 increment from 33% to 38%. % of households utilising the user To be updated after a study on the user committees National Service Delivery committees 60% 70% - 80 is carried out. Survey/D-SWG Working framework for joint Two joint supervision missions were conducted Inspectorate and sector supervision missions from during the FY. The supervision reports provided reports 4% 15% - 30% ministries to reduce overlaps critical input JARD 2008.A joint supervision mission is planned every quarter in 2009/10 31 Key Performance Indictor 2005/06 2007/08 2008/09 Comment on the 2008/09 achievements Data Source Base Target Actual Target Actual Thematic Area: Political Decentralisation Strategic Objective: To enhance political accountability in Local Governments % of councils adhering to 67% of the councils adhered to the established National assessment report established standards standards. The increase is a result of the orientation '08 60% 73% 61% 88% 67% and support received on the standard rules of procedure. % citizens satisfied with local National service delivery survey 2008, reported that National Service Delivery council performance 55% 70% - 81% 78% 78% of the households were satisfied with the local Survey 2008 councils. % of LGs that are followed up on To be updated Inspectorate reports. LG 70% of their audit queries PAC reports submitted to 60% 72% 66% 82% Standing Committee of parliament on LG Public Accounts. Thematic Area: Administrative Decentralisation Strategic Objective: To ensure efficient and effective local government administrations % of planned LGSIP policy actions To be updated JARD, LGSIP CRM & completed 40% 85% - 90% PEMCOM reports % new structures in MOLG and 67% of the MoLG structure is filled to date. Payroll LGFC filled N/A 75% 63% 95% 67% % of higher local governments with 64% of the HLGs have strategic and key posts LG Human Resource new structures operational filled and operational. This percentage varies Reports 60% 80% 65% 90% 64% between the rural and urban councils with the rural at 61% and urban at 81% 32 Key Performance Indictor 2005/06 2007/08 2008/09 Comment on the 2008/09 achievements Data Source Base Target Actual Target Actual % of HLG, CB plans that meet Hands on support to capacity building planning was CBG reports, National National Assessment Criteria extended to the HR/D units of a number of LGs. Assessment reports 70% 82% 96% 90% 97% The good performance in this area is a result of the support extended by the capacity building unit in conjunction with the technical working groups. Thematic Area: Fiscal Decentralisation and Local Government Public Financial Management Strategic Objective: To strengthen financial capacity of Local Governments to carry out their mandates % of LGs meeting LGPFM To be updated Biennial LG PFM Assessment criteria 21% 30% - N/A Assessment % of LGs producing timely Final The LGs are required to produce statements of National assessment report Accounts financial statements within three months after the '08 end of each accounting period in accordance with section 86 of the LGA, cap 243, for submission to the Auditor General. The financial statements must 70% 90% 91% 95% 64% include: Trial Balance, Income and Expenditure Statement, Balance Sheet, Cash flow statement. 54 districts and 10 municipalities were able to meet this indicator. The HLGs that met the indicator account for 64% of the HLGs. 33% of the LLGs were also able to produce the final accounts in time. % of LG locally generated revenue Further strategies are required to enhance local Final Accounts/LOGFIAS as a share of LG Budgets 9% 11% 4% 12% revenue. Finding confirmed by the joint monitoring mission % of fiscal transfers allocated to National Budget non-wage recurrent budget 21% 25% 17% 27% 28% % of fiscal transfers that are National Budget conditional and earmarked 78% 73% 87% 70% 81% 33 Key Performance Indictor 2005/06 2007/08 2008/09 Comment on the 2008/09 achievements Data Source Base Target Actual Target Actual % LLGs audited within the statutory The means to ensure that all LLGs are audited National assessment report period. 100% 70% - 90% should be identified '08 %of Districts and Municipalities with All the districts have functional contracts National assessment report functional Contracts Committees 70% 100% 61% 100% 100% committees in place. '08 Thematic Area: Good Governance Strategic Objective: To ensure citizens exercise their rights and fulfil their obligations with respect to local governance and service delivery % of LGs implementing National To be updated National Integrity survey, Anti-corruption strategy 18% 32% - 42% MoLG inspection report % of LGs experiencing institutional To be updated National assessment report dysfunctional due to conflicts 10% 6% - 4% '08 % of LGs publicising financial Financial transfers and budgets were displayed in National assessment report transfers and budgets 70% 90% 43% 95% 48% 48% of the LGs. '08 % Citizens aware of the roles and National service delivery survey 2008 reported that National Service Delivery responsibilities of LGs 97% of the households knew of the LCs as a place Survey 2008. 70% 80% - 85% 97% to go for arbitration of conflicts. There is need to get figures for all the areas of responsibility %Eligible citizens paying direct All formal employees are required to pay direct Household surveys. MoLG local taxes. 32% 52% 5% 70% 5% taxes. Approximately 3% of population of working data/LGFC age % of LGs with functional Human To be updated HR Commission Surveys. Rights desks 20% 60% - 80% National Assessment reports. No. of HLGs with functional CSO 60% of HLGs have functional CSO networks Inspectorate Reports, CSO networks 15% 42% 60% 60% 60% survey reports 34 Key Performance Indictor 2005/06 2007/08 2008/09 Comment on the 2008/09 achievements Data Source Base Target Actual Target Actual % LGs that have ratified, applied 75 of the 80 districts have ratified and are ULGA surveys and are implementing the Charter implementing the charter of accountability and code 20% 70% 5% 80% 7% of Accountability and Code of of conduct. The municipal councils, sub counties Conduct and town councils are yet to ratify the charter. % Citizens aware of service To be updated User Satisfaction Surveys delivery rights and obligations in 15% 30% - 60% key sectors % of Districts with functional Local To be updated. However, 2,472 officials from 412 National assessment report Council Courts. 70% 80% 44% 90% sub counties in 35 districts have been trained and '08 and Adoption survey equipped to administer local justice. reports Thematic Area: Local Economic Development Strategic Objective: To create a conducive environment for investment to promote economic development in local areas % of LGs supporting CDD ventures To be updated. LG Reports in their budgets 10% 50% - 60% % increase of locally generated To be updated National assessment report revenue in LGs through pay of '08 direct taxes and revenue 9% 11% - 12% generating ventures. % growth of private sector To be updated Private sector growth investments in LGs. 5% 15% - 20% surveys. % of businesses supported through To be updated LED Surveys local investment centres 5% 30% - 40% 35 Key Performance Indictor 2005/06 2007/08 2008/09 Comment on the 2008/09 achievements Data Source Base Target Actual Target Actual % of sub-counties with fully The CIS is operational in all the sub counties of the Economic Development operational Community information 28 districts where it has been rolled out. The Strategy performance systems (to be synchronised with NA 60% 21% 80% 35% percentage growth of the CIS utilisation can be surveys MoFPED targets) explained by its close link to the "bona bagagawale" program 36 Annex 2: LDG releases to LGs from the basket fund No. Local Government Qtr2 Release Qtr4 Release Total 1 Abim District 46,127,851 46,127,851 2 Adjumani District 61,090,552 61,090,552 3 Amolatar District 35,323,203 35,323,203 4 Amuria District 100,000,000 - 100,000,000 5 Amuru District 63,917,887 63,917,887 6 Apac District 69,026,438 69,026,438 7 Arua District 62,829,838 62,829,838 8 Budaka District 34,693,499 34,693,499 9 Bududa District 100,000,000 - 100,000,000 10 Bugiri District 75,523,438 75,523,438 11 Bukedea District 100,000,000 - 100,000,000 12 Bukwa District 100,000,000 - 100,000,000 13 Buliisa District 42,962,434 42,962,434 14 Bundibugyo District 45,812,789 45,812,789 15 Bushenyi District 76,682,826 76,682,826 16 Busia District 42,638,241 42,638,241 17 Butaleja District 38,120,907 38,120,907 18 Dokolo District 100,000,000 - 100,000,000 19 Gulu District 66,882,849 66,882,849 20 Hoima District 63,122,474 63,122,474 21 Ibanda District 100,000,000 - 100,000,000 22 Iganga District 100,000,000 - 100,000,000 23 Isingiro District 44,772,790 44,772,790 24 Jinja District 100,000,000 - 100,000,000 25 Kaabong District 88,048,856 88,048,856 26 Kabale District 48,119,869 48,119,869 27 Kabarole District 100,000,000 - 100,000,000 28 Kaberamaido District 100,000,000 - 100,000,000 29 Kalangala District 35,222,999 35,222,999 30 Kaliro District 100,000,000 - 100,000,000 31 Kampala District 91,645,044 91,645,044 32 Kamuli District 100,000,000 - 100,000,000 33 Kamwenge District 44,133,498 44,133,498 34 Kanungu District 100,000,000 - 100,000,000 35 Kapchorwa District 100,000,000 - 100,000,000 36 Kasese District 72,866,671 72,866,671 37 Katakwi District 45,838,255 45,838,255 38 Kayunga District 42,427,044 42,427,044 39 Kibaale District 100,000,000 - 100,000,000 40 Kiboga District 100,000,000 - 100,000,000 41 Kiruhura District 100,000,000 - 100,000,000 42 Kisoro District 37,969,304 37,969,304 43 Kitgum District 87,906,347 87,906,347 44 Koboko District 100,000,000 - 100,000,000 45 Kotido District 50,056,639 50,056,639 46 Kumi District 100,000,000 - 100,000,000 47 Kyenjojo District 57,894,249 57,894,249 48 Lira District 72,728,567 72,728,567 49 Luwero District 44,957,289 44,957,289 37 No. Local Government Qtr2 Release Qtr4 Release Total 50 Lyantonde District 100,000,000 - 100,000,000 51 Manafwa District 100,000,000 - 100,000,000 52 Masaka District 72,631,898 72,631,898 53 Masindi District 68,849,541 68,849,541 54 Mayuge District 60,352,544 60,352,544 55 Mbale District 100,000,000 - 100,000,000 56 Mbarara District 100,000,000 - 100,000,000 57 Mityana District 100,000,000 - 100,000,000 58 Moroto District 85,872,576 85,872,576 59 Moyo District 55,403,244 55,403,244 60 Mpigi District 100,000,000 - 100,000,000 61 Mubende District 60,820,406 60,820,406 62 Mukono District 106,107,404 106,107,404 63 Nakapiripirit District 73,786,565 73,786,565 64 Nakaseke District 35,590,254 35,590,254 65 Nakasongola District 31,143,003 31,143,003 66 Namutumba District 100,000,000 - 100,000,000 67 Nebbi District 71,386,732 71,386,732 68 Ntungamo District 100,000,000 - 100,000,000 69 Nyadri District 100,000,000 - 100,000,000 70 Oyam District 51,755,795 51,755,795 71 Pader District 85,498,155 85,498,155 72 Pallisa District 59,219,403 59,219,403 73 Rakai District 100,000,000 - 100,000,000 74 Rukungiri District 100,000,000 - 100,000,000 75 Sembabule District 100,000,000 - 100,000,000 76 Sironko District 38,554,578 38,554,578 77 Soroti District 68,808,235 68,808,235 78 Tororo District 100,000,000 - 100,000,000 79 Wakiso District 80,493,314 80,493,314 80 Yumbe District 63,464,099 63,464,099 81 Arua Municipality 14,949,274 14,949,274 82 Entebbe Municipality 12,851,081 12,851,081 83 Fort Portal Municipality 11,487,492 11,487,492 84 Gulu Municipality 32,877,438 32,877,438 85 Jinja Municipality 14,693,646 14,693,646 86 Kabale Municipality 10,213,741 10,213,741 87 Lira Municipality 20,114,890 20,114,890 88 Masaka Municipality 14,546,488 14,546,488 89 Mbale Municipality 15,228,282 15,228,282 90 Mbarara Municipality 12,682,086 12,682,086 91 Moroto Municipality 7,463,422 7,463,422 92 Soroti Municipality 12,857,608 12,857,608 93 Tororo Municipality 10,954,162 10,954,162 Total 3,200,000,000 3,050,000,000 6,250,000,000 38 Annex 3: Performance of new taxes (LST and LHT) in 2008/09 District LST LHT Total actual Budgeted Actual Budgeted Actual Adjumani 25,534,000 3,115,250 - - 3,115,250 Apac 87,041,851 50,981,897 10,041,851 - 50,981,897 Arua 66,000,000 57,460,000 2,000,000 57,460,000 Bugiri 43,000,000 53,019,857 - - 53,019,857 Bushenyi 40,000,000 92,448,250 - - 92,448,250 Busia 25,670,000 21,100,000 - - 21,100,000 Gulu - 12,598,085 - - 12,598,085 Hoima 85,000,000 20,597,500 - - 20,597,500 Kabale 30,000,000 24,256,000 - - 24,256,000 Kabarole 70,000,000 44,827,700 - - 44,827,700 Kaberamaido 14,328,750 7,815,682 - - 7,815,682 Kalangala 18,645,000 7,285,714 4,222,000 2,743,714 10,029,428 Kamuli 22,000,000 67,939,286 - - 67,939,286 Kamwenge 30,400,000 21,340,000 500,000 1,154,000 22,494,000 Kanungu 9,200,000 8,698,975 5,800,000 2,102,120 10,801,095 Kapchorwa 70,000,000 14,394,000 2,000,000 221,782 14,615,782 Kasese 50,000,000 57,553,537 - 1,000,000 58,553,537 Katakwi 5,000,000 12,306,273 - 12,306,273 Kayunga 42,857,000 49,251,429 - - 49,251,429 Kibale 15,353,500 11,428,888 11,428,888 Kisoro 9,001,000 27,948,135 1,000 364,830 28,312,965 Kitgum 16,000,000 10,445,000 5,000,000 110,000 10,555,000 Kotido 5,000,000 485,000 485,000 Kyejonjo 35,035,000 17,082,500 14,028,000 1,500,000 18,582,500 Lira - 16,157,209 - - 16,157,209 Luweo 50,000,000 40,457,143 - - 40,457,143 Masaka 205,847,750 82,597,000 82,597,000 Masindi 29,000,000 17,342,925 2,500,000 - 17,342,925 Mayuge 13,700,000 35,823,038 13,700,000 12,537,775 48,360,813 Mbale 60,000,000 53,118,818 700,000 357,000 53,475,818 Mbarara 68,625,000 59,633,582 1,000,000 1,015,000 60,648,582 Moroto 6,150,000 5,535,000 5,535,000 Moyo 19,465,000 13,850,000 13,850,000 Mpigi 20,150,000 2,743,714 4,200,000 1,268,571 4,012,285 Mubende 52,971,000 39,373,925 1,000,000 290,000 39,663,925 Mukono 185,038,000 65,136,624 - - 65,136,624 Nakapiripiriti 8,000,000 2,304,545 2,000,000 - 2,304,545 Nakasongola 45,860,000 16,647,857 10,950,000 705,429 17,353,286 Nebbi 89,500,000 31,610,214 - - 31,610,214 Pader 19,134,000 17,291,487 - - 17,291,487 Pallisa 31,714,286 18,510,000 - - 18,510,000 Rakai 82,500,000 28,800,000 - - 28,800,000 Rukungiri 52,587,500 37,900,000 800,000 130,500 38,030,500 Sembabule 70,000,000 36,340,714 - - 36,340,714 Sironko 32,760,000 22,605,455 - - 22,605,455 Soroti 37,750,000 736,364 1,000,000 - 736,364 Tororo 57,692,686 49,023,488 - 49,023,488 Wakiso 150,000,000 174,439,697 92,000,000 658,531 175,098,228 Yumbe 100,000,000 22,817,250 - - 22,817,250 Butaleja 25,000,000 26,361,000 - - 26,361,000 Ibanda 26,992,500 20,760,000 - - 20,760,000 Kabong 12,220,000 5,213,750 5,213,750 Isingiro 22,491,250 22,491,250 600,000 373,850 22,865,100 Kaliro 14,000,000 23,697,857 - - 23,697,857 Kirihura 60,000,000 30,857,143 - - 30,857,143 Koboko 9,384,000 353,000 - - 353,000 Amolatar 15,000,000 12,652,000 - - 12,652,000 Amuria 20,148,000 21,927,273 - - 21,927,273 Manafa 50,000,000 23,981,018 - - 23,981,018 39 District LST LHT Total actual Bukwo 10,000,000 3,515,113 - - 3,515,113 Mityana 32,000,000 24,570,000 300,000 - 24,570,000 Nakaseke 7,365,750 29,076,257 200,000 40,000 29,116,257 Amuru 9,700,000 37,491,961 2,300,000 700,000 38,191,961 Budaka 37,550,000 7,430,455 - - 7,430,455 Oyam 35,000,000 25,739,500 - - 25,739,500 Abim 13,386,000 11,631,500 - - 11,631,500 Namutumba 18,000,000 15,060,000 - - 15,060,000 Dokolo 19,005,000 12,000,000 - 1,000,000 13,000,000 Buliisa 700,000 1,878,196 1,878,196 Maracha 33,000,000 27,587,500 27,587,500 Bududa 35,000,000 8,139,545 - - 8,139,545 Total 2,783,919,823 1,974,474,075 176,842,851 28,273,102 2,002,747,177 LST LHT Total actual Town councils Budgeted Actual Budgeted Actual Abim TC 12,000,000 720,000 18,177,000 169,500 Amolatar 5,100,000 4,050,000 5,250,000 130,000 Apac 12,000,000 720,000 18,177,000 169,500 889,500 Bombo 10,000,000 7,067,143 - - 7,067,143 Budaka 2,500,000 1,750,909 - - 1,750,909 Bududa 2,500,000 1,789,091 1,500,000 - 1,789,091 Bugiri 17,500,000 15,910,714 2,012,500 198,857 16,109,571 Bukwo 3,000,000 - 2,000,000 109,091 109,091 Bundibugyo 39,312,000 4,419,692 10,312,000 795,000 5,214,692 Bushenyi Ishaka 30,000,000 22,765,500 10,000,000 3,439,500 26,205,000 Busia 20,000,000 18,316,364 20,000,000 13,575,545 31,891,909 Dokolo - - - 797,500 797,500 Hima 22,000,000 22,403,750 1,600,000 1,424,600 23,828,350 Hoima - 10,370,750 - 1,319,000 11,689,750 Ibanda 8,000,000 13,171,878 12,000,000 1,396,000 14,567,878 Iganga 18,776,769 7,345,714 20,000,000 6,857,143 14,202,857 Isingiro 3,000,000 1,000,000 600,000 593,000 1,593,000 Kaabong 500,000 3,840,000 - 304,000 4,144,000 Kabarole - 37,150,000 - 22,000,000 59,150,000 Kaberamaido 8,960,000 2,995,909 4,370,000 827,127 3,823,036 Kagadi 800,000 750,000 15,000,000 1,302,500 2,052,500 Kalangala 7,255,000 2,837,143 8,945,000 6,449,143 9,286,286 Kaliro 62,000,650 24,617,143 - - 24,617,143 Kamuli 12,650,000 8,229,429 1,650,000 1,234,286 9,463,715 Kanungu 4,000,000 4,700,000 1,500,000 358,500 Kapchorwa 6,000,000 5,811,818 11,000,000 2,566,909 8,378,727 Katakwi - 1,963,636 - 150,000 2,113,636 Kayunga 10,000,000 11,824,286 2,000,000 2,736,000 14,560,286 Kiboga 7,000,000 8,319,000 1,800,000 656,571 8,975,571 Kisoro 108,500 1,387,500 10,200,000 7,316,500 8,704,000 Kirihura 2,500,000 1,461,818 - - 1,461,818 Kitgum 45,992,600 28,418,057 35,876,000 17,278,000 45,696,057 Koboko - 1,400,000 - 1,400,000 Kotido 8,000,000 2,382,500 12,000,000 2,413,500 40 Town councils LST LHT Total actual Kyenjojo 4,000,000 2,615,000 2,500,000 1,908,800 4,523,800 Kyotera 1,200,600 10,285,714 6,500,000 2,000,000 12,285,714 Lugazi 38,441,585 30,980,143 3,281,500 3,998,571 34,978,714 Lukaya 4,131,518 2,790,000 1,900,000 2,230,250 Luwero 10,000,000 4,470,000 1,500,000 1,633,817 6,103,817 Malaba 60,000,000 11,269,474 12,000,000 6,928,909 18,198,383 Manafwa 9,000,000 1,898,182 - - 1,898,182 Masindi 16,000,000 13,421,990 8,000,000 9,680,500 23,102,490 Mayuge 4,000,000 4,242,857 2,000,000 1,250,571 5,493,428 Mityana 12,000,000 16,854,429 8,000,000 6,816,000 23,670,429 Mpigi 10,404,500 3,394,286 7,250,000 2,751,429 6,145,715 Moyo 5,065,000 4,950,000 3,284,000 Mubende 12,500,000 2,116,250 4,680,000 1,805,143 3,921,393 Nakapiripiriti 3,760,000 1,346,182 - - 1,346,182 Nakasongola 15,000,000 4,191,429 2,200,000 107,143 4,298,572 Namutumba 4,226,000 3,573,382 - - 3,573,382 Nansana 15,000,000 16,457,143 300,000 1,083,429 17,540,572 Nebbi 14,000,000 9,716,000 5,400,000 6,142,000 15,858,000 Oyam - 470,000 - - 470,000 Pader 20,000,000 10,753,750 41,000,000 2,413,500 13,167,250 Pallisa 42,000,000 5,244,750 4,000,000 2,608,364 7,853,114 Rakai 24,245,750 - - 24,245,750 Rukungiri 25,000,000 22,366,500 5,000,000 1,940,500 24,307,000 Sembabule 2,530,000 2,005,714 820,000 257,143 2,262,857 Kasese 30,000,000 30,053,992 58,500,000 27,300,000 57,353,992 Yumbe 5,568,000 - 2,110,000 1,835,000 1,835,000 Total 740,217,722 519,717,661 407,861,000 184,542,341 675,966,752 LST LHT Municipal Councils Budgeted Actual Budgeted Actual Total actual Arua 55,537,630 15,348,100 27,500,000 16,724,400 32,072,500 Entebbe MC 119,000,000 129,611,390 136,064,000 127,389,840 257,001,230 Fortportal 49,000,000 37,600,000 30,000,000 26,200,000 63,800,000 Gulu 75,979,742 63,579,380 45,020,000 22,244,900 85,824,280 Jinja M.C 64,800,000 76,304,571 32,400,000 28,800,000 105,104,571 Kabale 54,000,000 13,341,137 18,500,000 10,181,900 23,523,037 Lira M.C 1,000,000 12,429,274 1,200,000 12,350,182 24,779,456 Masaka 56,805,000 34,705,000 29,000,000 23,742,300 58,447,300 Mbale M.C 45,000,000 25,857,976 40,000,000 17,264,182 43,122,158 Mbarara M.C 87,807,283 116,135,610 32,500,000 22,593,500 138,729,110 Moroto 20,000,000 1,362,500 5,688,569 2,777,500 4,140,000 Soroti M.C 15,000,000 16,537,527 12,500,000 11,498,455 28,035,982 Tororo MC 32800000 23818769 6100000 2030727 25849496 Total 5,009,084,922 3,616,267,676 1,409,037,420 721,155,670 4,280,836,846 41 LST LHT Kampala City Council Budgeted Actual Budgeted Actual Total actual Kawempe division 219,486,690 166,011,120 16,075,000 2,260,286 168,271,406 Central division 198,000,000 131,527,636 448,900,000 291,893,455 423,421,091 Nakawa division 278,000,000 182,923,636 86,345,000 57,127,636 240,051,272 Lubaga division 264,000,000 199,090,909 92,645,000 71,289,818 270,380,727 Makindye division 196,560,000 124,974,545 85,870,000 52,983,273 177,957,818 Total 1,156,046,690 804,527,846 729,835,000 475,554,468 1,280,082,314 42 Annex 4: Trend in local revenue performance (shs'000) Source 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 Graduated tax 51,778,875 36,526,446 60,038,704 10,865,871 4,429,273 - Property tax 13,552,352 6,788,407 3,525,779 26,716,387 37,817,156 28,486,603 User fees 18,430,550 13,099,763 10,504,237 23,095,924 20,945,588 64,854,246 Licenses 3,542,416 5,804,519 4,091,311 12,205,937 11,778,524 13,478,964 Others 12,266,832 17,887,507 12,200,841 27,781,041 23,684,109 9,064,925 Total 99,571,025 80,106,642 90,360,872 100,665,160 98,654,650 115,884,738 % increase -20% 13% 11% -2% 17% Source: LGFC Annex 5: Performance of LGs in the national assessment 2008 LG level Total Performance Of LGs Minimum conditions Combined No %age Overall Status Districts 80 Met Reward 16 20 Met Static 8 10 Met Penalty 2 4 Not Met Penalty 54 66 Municipals and City 18 Met Reward 5 28 Divisions Met Static 1 6 Met Penalty 1 6 Not Met Penalty 11 61 Municipal Divisions 37 Met Reward 5 14 Met Static 3 8 Met Penalty 1 3 Not Met Penalty 28 76 District LLGs 964 Met Reward 86 8 Met Static 30 4 Met Penalty 11 1 Not Met Penalty 832 86 District LLGs Not Assessed 6 *** 6 LLGs were not subjected to overall performance: Nyahuka TC of Bundibugyo DC, Dokilo TC of Dokolo DC, Bugemeb Tc and Kakira TC of Jinja, Mpondwe/Lhubilika TC of Kasese DC and Lwakhaka of Manafwa DC 43 Annex 6: Status of implementation of JARD 2008 undertakings Thematic area Undertaking Responsibility Centre Progress/ status on Implementation 1 Local Economic Print and disseminate LED Policy and Strategy MoLG (LCD) A draft policy and strategy in place and due for discussion Development by the stakeholders. Conduct local economy assessment in at least one LG per MoLG (LCD) MoLG has contracted a firm to carry out Local Economic district across country and Business Assessment in 15districts and 6 municipal councils. Review the Harmonised Participatory Planning Guide MoLG (PPD) Still awaiting the local economic assessment and the LED (HPPG) to incorporate LED modality policy to be completed. 2 Service Delivery Support 10 TCs to implement their physical structure plan. MoLG (UA), TCs are submitting progress reports on implementation of their structural plans out of which 10 TCs will be selected for support. Funds will be transferred to the respective TCs in the 2nd quarter 2009/10 Conduct a nation-wide dissemination of the National Land MLHUD, MoLHUD shelved this undertaking because of the Use Policy unavailable information required before it can proceed. A bill on this is before parliament. A policy is also required The minimum service standards for service delivery should All Line Ministries and MoLG Minimum service standards for ministries of Education, be finalised and disseminated jointly between MoLG and (LAI) Water, Roads, Production and Gender were finalised. The the service line ministries ones of ministries of Health and Environment to be finalised by a consultant in fy 2009/10. 3 The Minimum standards of service delivery should inform All Line Ministries and LGs Its in the approved work plan and to be finalized 2009/10. the client charters developed by LGs 44 4 Monitoring & Review functionality of the Decentralisation Technical DTWG & MoLG The Technical Working Groups have been constituted and Evaluation Working Group (DTWG) to ensure it is fully integrated into they are operational and have actively participated in MoLG management systems as required by national planning process of the financial year 2009/10 LGSIP work budget and planning processes. It was recommended that plan. the DTWG meets quarterly and be further supported by the establishement of Technical Working groups. The LGSIP should be reviewed to confirm the baseline DTWG & MoLG (LGSIP Evaluation of technical proposals submitted was completed. data, remove obsolete indicators and include new Secretariat) Awaiting a go ahead from the contracts committee to indicators. evaluate financial proposal. 5 Fiscal MoLG, MoFPED, URA, LGFC and LG Associations should MoLG, LGFC Matters with Solicitor General to give legal guidance on the Decentralisation agree on the modality for collection and payment of matter. agency fees MoLG should develop and disseminate the LST guidelines MoLG (LAI) The general guidelines were finalised to be disseminated for commercial farmers under LGSIP 2009/10. Statutory Instrument for regulations awaiting approval by cabinet and Solicitor General. 6 Political MoLG should develop guidelines with quantifiable MoLG (LCD, DA & UA) Draft TORs were finalised for a complete study in Uganda. Decentralisation indicators to guide the creation of new LGs and The concept note in place. Awaiting clearance from top Administrative Units management for the assignment to go ahead. 45 Annex 7: Status of implementation of JARD 2008 recommendations Thematic area Recommendation Responsibility Progress/ status on Implementation Centre Administrative i) Operationalise Result Oriented Management (ROM) through periodic ALL CAOs, TCs Communication was made to LGs. To get updates from the District JARD Issues performance reviews. consultation reports. ii) LGs should strictly adhere to work plans as resource framework and ALL CAOs, TCs to get updates from LGs. monitoring instrument iii) MoLG should consider cascading council orientation to parish and MoLG, HLGs Communication was made to LGs. To get updates from JARD reports. village levels and provide continuous support to the councils on roles and obligations. iv) Government should introduce innovative periodic performance review MPS,MFPED,MoL MoES and LGs are doing it for Head Teachers. Lessons learnt will be used in mechanisms such as performance contracts. G other sectors and cadres. v) All stakeholders operating in the LGs should always provide reports CAOs & TCs Communication was made to LGs and to get updates from District JARD and programme documents to enable LGs to coordinate and monitor consultation reports. them. vi) Fill vacant posts of Parish Chiefs in all LGs MoLG, DLGs, At the end of Aug, 2009, filled posts of Parish Chiefs were 3692, while 1,981 DSCs vacant (65.1% filled). Physical i) MoLG and MLHUD should adopt a metropolitan planning and MoLG (UA), Kampala Capital City Bill was passed by cabinet and is now in Parliament for Planning management modality for greater Kampala. MLHUD approval. ii) A dedicated fund for capacity building support for professional urban MoLG (UA), CBU Taken care of under the CB component under the LGMSDP. planning and management should be established. iii) A special allocation formula of resources for urban local government MoLG, LGFC The ratio was reviewed to 45%,40% and 15% for poverty count, population and should be developed to take into consideration day populations and the area respectively. Per capita income for Urban and Rural was reviewed to $2 cost of urban services. and $1.6 respectively. iv) All Districts and Urban Councils should recruit a physical planner to CAOs & TCs To be updated from JARD reports perform physical planning function 46 v) MLHUD in partnership with other stakeholders should set up a special MLHUD,MoFPED, MoLHUD is working with City Alliance to come up with the slum development grant for slum redevelopment. MoLG programme for Jinja, Mbale, Kabale and Arua Municipal Councils. MoLHUD is developing Housing and slum development strategies. vi) All the remaining 46 districts should establish Town Boards to MoLG (UA), DLGs 53 districts have established Town Boards and some of the remaining 26 facilitate guided urbanization. districts have submitted requests to MoLG to establish TBs. Technical studies are underway to establish their viability. vii) The Land Act should be reviewed to enable Urban Authorities to MLHUD, MoLG The Bill was developed and is still in Parliament effectively manage urban development. viii) Physical planning should be undertaken for all the Town Councils MLHUD, MoLG MoLG will support only 10 Town Councils in 2009/2010 because of limited and Town Boards resources. ix) The review of the Town and Country Planning Act should be MLHUD The Bill was developed and is still in Parliament undertaken by next JARD. x) MLHUD and MoLG should expedite formulation of the National Urban MLHUD, MoLG The project is on-going and the Steering Committee was inagurated. Policy and Strategic Urban Development Plan should be formulated by the next JARD. Service i) LGs should prepare and regularly update assets registers for all CAOs Communication was made to LGs, to get updates from LG JARD reports. Delivery properties owned by them. ii) MoLG in liaison with other LMs should support LGs to carry out site MoLG mapping activities for projects and other key services. iii) Local Governments should enact by-laws to enforce provision of CAOs & TCs ULGA disseminated a manaul on how to develop bye laws. various critical services such as sanitation. Monitoring and i) MoLG should organise and coordinate integrated inspection, MoLG Consultations have been made in view of developing a year planner Evaluation monitoring and evaluation visits harmonizing all inspection and monitoring activies. ii) MoLG and the LGs should provide funding for M&E Systems and MoLG Every programme provides for M&E ensure that M & E is one of the core functions of LGs iii) Systems such as (IFMS, LoGICS) should be rolled out to all the LGs MoLG(PPD)- LoGICS , LAI - IFMS & MFPED- 47 IFMS iv) LGs should monitor their expenditures to ascertain consistency with CAOs & TCs overall PEAP and subsequently the NDP. v) In partnership with the Public Service Sector Management Working OPM/PSWG Group (PSMWG) , the Decentralisation Sector Working Group will underttake to support the development of coordinated frameworks for Inspection, Monitoring, Evaluation and Support Supervision to be implemented by MoLG, Line Ministries and other stakeholders should ensure effective and efficient service delivery. This coordination framework should commence with the National Budget Process 2009/10 Good i) LGs should promote public awareness through the media and dialogues CAOs Being done especially through News papers and Local FMs. governance ii) A multi-sectoral induction of key accountability institutions such as MoLG, Dept. of Have had training for TCs of MCs and CAOs. Arrangements are underway to RDCs, MPs, IGG, District Chairpersons and Municipal Mayors should be Ethics & Integrity organise training for RDCs, MPs, IGG, District Chairpersons and Municipal conducted. Mayors. iii) Develop and Implement a Civil Education Strategy for increased civil MoLG, (LCD) Good Governance and Anti Corruption strategy in place. competence on rights and obligation and to strengthen anti-corruption institutions. Fiscal i) MoLG, LGFC & CMA should identify and support selected LGs to pilot MoLG(LAI), LGFC, Discussions are ongoing between LGFC staff, Economic Policy Research Decentralisatio Municipal Bonds. The criterion for Pilot LGs should be based on good CMA Center and BOU staff on the best way forward in implementing Municipal n governance, infrastructure needs, credit rating, credibility, prudent Bonds. financial management. ii) MoFPED and MoLG should conduct a feasibility analysis of reviving MoFPED, the Local Authorities Loans Fund. MoLG(LAI) iii) Document and disseminate best practices on LST/HT. MoLG(LAI), LGFC Documenting best practices iv) The Ministry responsible for Trade should have a new legislation that MTTI, MoLG (LAI) Business Levy Bill has been developed. separates licensing and levying of business in LGs. 48 49
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