## Executive Summary

## Source details

**Canonical URL:** [Executive Summary](https://www.imf.org/-/media/files/publications/cr/2017/cr17312.pdf)

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---

### Mission and objectives
- IMF GFS TA mission visited Kampala during July 8–18, 2014.
- Mission led by Mr. Rocha, with participation by Mr. Robinson. Mr. Johan Mathisen (IMF GFS Advisor at AFRITAC) and Mr. Michael Gitau (EAC Secretariat) participated.
- Mission undertaken within project STA_UGA_2015_04 and aligned with fiscal data requirements associated with the East African Monetary Union (EAMU) Protocol.
- Main objectives:
  - Assist the Ministry of Finance, Planning, and Economic Development (MOFPED) and the Uganda Bureau of Statistics (UBOS) in compilation and dissemination of GFS in accordance with GFSM 2001/14.
  - Provide GFS training to counterpart staff.

### Main findings and recommendations (summary)
- MOFPED, UBOS, and the Bank of Uganda (BOU) jointly revised the GFSM 2001/14 implementation plan; plan to be further developed and presented at IMF (East AFRITAC)/EAC regional workshop in Arusha, Tanzania on August 24-29, 2014.
  - Recommendation: Implement the final plan to ensure Uganda meets statistical requirements under the EAMU Protocol.
- New institutional table produced jointly by MOFPED, UBOS, and BOU to be reviewed, adopted, and used as a government standard.
  - Recommendation: Perform regular joint reviews of the institutional table to ensure consistency in macroeconomic data reporting.
- Mission assisted in incorporating extrabudgetary units (EBUs) data to build GFS for a full general government sector.
  - Recommendation: Continue this work to attain standard fiscal data reporting under the EAMU convergence criteria.
- Public sector debt statistics template aligned with World Bank template; mission recommended compiling and reporting other debt instruments such as “currency and deposits” and “insurance, pensions and standardized guarantees,” and submitting these to the World Bank’s Public Sector Debt Statistics database.
  - Recommendation: Continue disseminating GFS to the IMF and EAC and start disseminating a broader range of public sector debt statistics through the World Bank.

### Institutional and data coverage of general government and public sectors
- Legal framework:
  - Public Finance and Accountability Act (PFAA) 2003 is the regulatory framework for public financial management in Uganda.
  - PFAA requires accounts of public organizations to be audited by the Auditor-General and audited annual financial statements to be prepared and submitted to the Minister of Finance within four months after the end of the financial year; statements to be laid before Parliament not later than one month after the Minister receives them.
  - Financial year defined as July 1 to June 30.
  - Uganda adopted (cash basis) International Public Sector Accounting Standards in 2006.
- Ongoing reforms:
  - Public Finance Bill (Bill No. 5 from 2012) under discussion at time of mission to clarify reporting responsibilities, harmonize reporting periods, and improve statistics on contingent liabilities.
  - October 2013 introduction of a single treasury account to facilitate MOFPED consolidation of accounts.
- General government subsectors:
  - Budgetary central government (BCG), extrabudgetary units (EBUs), and local governments. No state governments.
- Sectorization outcomes from mission review:
  - BCG increased to 124 entities from 66 entities reported previously.
  - EBUs reduced to 63 institutions from 141 institutions.
  - Appendix II presents a preliminary comprehensive list of general government and public corporations (source document).
- Specific entity classification:
  - National Social Security Fund (NSSF) classified as a public financial institution consistent with GFSM 2014 sectoring guidelines (compulsory saving scheme, deposits withdrawable under specified circumstances such as retirement).
  - Recommendation: Review and finalize the institutional table produced during the mission and adopt it as the standard; develop procedures for maintaining and regularly reviewing the public sector institutional table.
- BCG compilation and dissemination:
  - MOFPED compiles consolidated monthly and annual data for 66 BCG entities on a cash basis in a GFSM 2001 format.
  - MOFPED publishes BCG data in the annual Statistical Abstract (hardcopy and website) and monthly GFS for BCG on its website.
  - MOFPED reports annual (GFSY) budgetary central and local GFS and monthly (IFS) BCG finance statistics to the IMF’s Statistics Department.
    - Monthly series cover July 1997 to March 2014.
    - Annual series run from 1997/98 to 2012/13, with work ongoing to report 2013/14.
  - Recommendation: Gradually increase coverage of BCG data to cover all entities on the revised institutional table, and resubmit historical IFS and GFSY data.

### Accounting and statistical systems
- Chart of Accounts (COA) and source systems:
  - Substantially revised COA issued in March 2011 and implemented in all BCG units, all local governments, and some EBUs; remaining EBUs and most public corporations use private accounting systems aligned with International Financial Reporting Standards.
  - New COA broadly aligned with GFSM 2001 classification codes; bridge tables produced (Appendix III) and derivation table showing consistency of main national and GFSM 2014 aggregates (Appendix IV).
  - Mission provided list of new accounting codes from GFSM 2001 to 2014 update (Appendix IV) for consideration in future COA updates.
- Source data flows:
  - Tax revenue data from Tax Policy Department (MOFPED).
  - Nontax revenue from Treasury Department (MOFPED).
  - Expense and transactions in nonfinancial assets and financial assets and liabilities from Integrated Financial Management System (IFMS).
    - Expense incurred by BCG donor projects not recorded in IFMS; estimated and added by MOFPED.
  - Transfers from Budget Department; external grants from Aid Liaison Department.
  - Accounts generally prepared on a cash basis.
- Questionnaires and submissions:
  - Mission revised and updated GFSY and IFS questionnaires using disaggregated source data.
  - High frequency IFS questionnaire aligned with GFSM 2001 and updated through May 2014 with more detail.
  - Preliminary 2012/13 GFSY questionnaire produced jointly with authorities.
  - Recommendation: MOFPED regularly update and submit the detailed GFSM 2001-compliant IFS questionnaire produced by the mission. Annual data submissions on BCG assets and liabilities should be expanded to produce a partial balance sheet.
- Local government data:
  - Annual local GFS compiled based on annual reports filed in hardcopy with the Accountant General’s Office.
  - Districts report on a cash basis; municipalities and town councils report on an accrual accounting basis.
  - Approved estimates of revenue and expenditure for local governments issued by MOFPED.
  - Local GFS available on MOFPED’s Internet website and transmitted to the IMF for GFSY publication.
  - IFMS rollout covers 40 local governments; complete IFMS rollout to local governments envisaged to begin within the next two years.
  - Recommendation: Gradually collect more detailed and timely local government data as it becomes available and automate processing by integrating the GFS bridge table with the information system.
- EBUs coverage and challenges:
  - Main impediments to EBU coverage: incomplete reporting by EBUs, fiscal year inconsistencies, methodological discrepancies, and timeliness issues.
  - MOFPED assembling annual dataset for EBUs based on audited reports; Statistical Abstract published June 2013 with data for 2004/05–2010/11.
  - Mission used EBU data to generate partial GFS for the subsector and trial consolidated general government GFS:
    - GFS for EBUs compiled using multiperiod IMF Classification Assistant for 2004/05 through 2010/11 for 37 of the 66 EBUs for which data were available.
    - Consolidated general government GFS compiled for 2010/11 using multisector Classification Assistant (BCG, EBUs, local governments).
  - Note on EBU fiscal years in available data: 29 EBUs had July to June fiscal years; 6 EBUs had January to December fiscal years; 2 EBUs had October to September fiscal years.
  - Recommendation: New Public Finance Bill and its regulations should harmonize EBUs’ fiscal years, clarify reporting responsibilities, and increase reporting frequency by EBUs.
  - Recommendation: Continue efforts to extend the EBU dataset and use bridge tables prepared by the mission to include EBU finance statistics in IMF data submissions.

---

### GFS consolidation for the general government sector

### Consolidation focus and Grants classification
- Only one of the three important types of accounts for consolidation is relevant for Uganda: grants. The three types of accounts are assets and liabilities, interest, and grants.
- Uganda does not currently produce complete and detailed GFS data on assets and liabilities.
- There are no interest flows across subsectors of general government because BCG borrows for the entire sector.
- Uganda’s COA includes GFS codes on grants, including:
  - to/from foreign governments,
  - to/from international organizations,
  - to/from other levels of government,
  - current and capital breakdowns for each of the three types of grants.
- The national tabular presentations of GFS emphasize a “budget support” and “project support” classification of grants.
- Recommendation:
  - Compile data according to the classification of grants required by GFSM 2014 to facilitate consolidation.

### Data compilation for public corporations and nonfinancial corporations
- MOFPED currently compiles annual data for public financial corporations and for some nonfinancial corporations; these data are published in the Statistical Abstract.
- The Public Finance Bill requires that all public corporations file annual reports with the Accountant General.
- MOFPED plans to use these filed annual reports to produce public sector finance statistics.
- Recommendation:
  - Develop procedures and mechanisms for the collection of public debt data from public corporations.

### General government debt data sources, coverage, and gaps
- General government debt data are published by MOFPED in its annual Statistical Abstract at a much aggregated level.
- General government external debt data are compiled by MOFPED and reconciled with the BOU quarterly.
- General government domestic debt data are compiled at the BOU and shared with MOFPED.
- The PFAA states that only the MOFPED can contract loans and issue guarantees on behalf of local governments and public corporations.
- There are no data available on other accounts payable for local governments and EBUs; they cannot incur any other types of debt; hence, there are no debt statistics for local governments.
- Public corporations debt data are not compiled by the BOU, but the BOU collects:
  - currency and deposits,
  - loans,
  - some recent data on other accounts payable for financial public corporations.
- Mission actions and findings:
  - The mission obtained quarterly data from 2009 to 2013 for the World Bank’s public sector debt template, including general government domestic debt, “currency and deposits” and BOU debt data (loans and other accounts payable).
  - Source data were provided and verified.
  - Debt data for “insurance, pensions and standardized guarantee schemes” could not be obtained.
  - A spreadsheet was compiled with public debt data for the period 2009–2013 for general government and for the BOU.
- Recommendations:
  - Organize source data for “currency and deposits” and “insurance, pensions and standardized guarantee schemes” into a dataset to improve compilation, validation, and dissemination of general government debt data by the BOU.
  - Develop procedures and mechanisms for the collection of public debt data from public corporations.
- MOFPED requested evaluation and improvements to the draft Uganda Debt Statistical Bulletin:
  - Mission recommended incorporation of the set of tables used in dissemination of GFS debt data into the bulletin.
  - Mission recommended defining and publishing a clear revision policy in the bulletin.
  - The bulletin is intended to be produced annually and ultimately evolve into semiannual and quarterly publication.

### Consistency of GFS datasets and other macroeconomic data
- The Public Finance Statistics (PFS) Committee was established in 2010 to address fiscal data reconciliation and quality improvement; it includes UBOS, MOFPED, BOU, and the Local Government Finance Commission.
- The committee meets regularly to ensure consistency between GFS and other macroeconomic data.
- Mission performed internal GFS data consistency checks:
  - Detailed data for fiscal years 2010/11 and 2012/13 were obtained on tax revenue, nontax revenue, expense, arrears, transactions in nonfinancial assets, and domestic and external grants from MOFPED and classified using the IMF Classification Assistant.
  - Authorities indicated the detailed data were consistent with published estimates.
  - Misclassifications identified include:
    - employment-related social benefits classified as “compensation”;
    - bad debt classified as an “expense”;
    - transfers to nongovernmental units classified as “grants”;
    - various types of arrears categories classified as “liabilities” and not coded to GFS expense classifications.
  - Despite misclassifications, total revenue and expense values in the Classification Assistant and source data were comparable.
- Recommendation:
  - Correct the misclassifications, including removing expense line items for “arrears,” distributing the amounts shown to subitems of the relevant GFS types of expense, and introducing a memorandum item for the total stock of arrears.
- Local government and EBUs verification:
  - Local government data compiled from audited financial statements produced accurate GFS compilation results via the Classification Assistant.
  - For EBUs’ audited annual reports, the Classification Assistant organized revenue, expense, net acquisition of nonfinancial assets, acquisition of financial assets and incurrence of liabilities accurately; balancing items were consistent.
- Data publication and dissemination:
  - Only consolidated financial data for BCG is currently published in an Audit Report on the Accountant General’s website.
  - The new Finance Bill (if passed) includes provisions for the Accountant General to publish consolidated accounts for central government (including BCG units and EBUs), local governments, and public corporations, which would impose more discipline on public sector fiscal data production.
- Data sharing and reconciliation:
  - UBOS has a dataset for BCG fiscal data, local government data, and is developing a database for public corporations.
  - BCG data are obtained through distinct institutions; other sector data are obtained via hardcopies of financial reports.
  - Consistency between UBOS and MOFPED data should be reviewed during future GFS TA missions.

---

### GFSM 2001/14 implementation plan: objectives, targets, and outputs

### Governance and responsibilities
- The GFS Technical Working Group is the Social Economic Statistics Technical Committee (MOFPED, UBOS, BOU).
- MOFPED formed a high-level GFS Committee of commissioners and a Sector Statistics Committee (SSC) to implement directives and recommendations.
- The implementation plan aims to meet EAMU Protocol fiscal statistics requirements.

### Key targets and verifiable indicators (preserved verbatim)
- Objective: To compile and publish annual general government finance statics according to GFSM 2001 (GFSM 2014).
  - Verifiable Indicators: Dissemination of monthly (budgetary central government), quarterly (central government) and annual (general government) GFS to the public, the EAC Secretariat, and publication in the IFS and GFSY.
  - Target Date: 2017
  - Assumptions: Commitment to replace the current GFSM 1986 tables with GFSM 2001 (GFSM 2014) tables in all internal and external fiscal tables, including in the Article IV Consultation Reports, the budget statements, an adequately resourced GFS team, and that the necessary technical support is available on a timely basis.

### Selected outputs, indicators, target dates, and implementation status (highlights)
- Conduct regular GFS Technical Working Groups meetings/workshops.
  - Indicator: Minutes and training material from committee meetings and workshops.
  - Target Date: September 2014
  - Implementation Status: Working groups established; meetings/workshops need to be held at least once a quarter.
- Define and maintain an institutional structure of the government consistent with GFSM 2001/14.
  - Indicator: Finalized general government sector institutional table and tentative comprehensive lists of public corporations.
  - Target Date: December 2014
  - Implementation Status: MOFPED provided a draft institutional table; reclassification of institutional units into subsectors is ongoing.
- Link country’s COA classifications with GFSM 2001/14 economic classifications.
  - Indicator: Verified derivation tables linking national COA classifications and GFSM 2001/14 classifications.
  - Target Date: December 2014
  - Implementation Status: Current COA classifications have been mapped; suggestions to align with GFSM2014 provided.
- Reflect updated GFS economic and functional classification tables in budget tables.
  - Indicator: Presentation of GFSM 2001 (GFSM 2014) and COFOG tables and related analysis in annual budget.
  - Target Date: 2015/2016 Budget
  - Implementation Status: Requires verified bridge tables and analytical capacity in SSC, MOFPED, and UBOS.
- Disseminate GFSM 2001/14 compliant BCG data for FY2009 thru FY 2012/13.
  - Indicator: Presentation of Statement of Sources and Uses of Cash, Statement of Operations by GFS, and dissemination of COFOG data.
  - Target Date: December 2014
  - Implementation Status: GFSM2001 compliant budgetary central government data have been disseminated annually from FY2009 thru 2012/013; monthly dissemination (IFS) needs updating.
- Incorporate the COA-GFS bridge table in IFMS and automate report compilation.
  - Indicator: Production of GFS reports directly from the source data in IFMS.
  - Target Date: June 2015
  - Implementation Status: A COA-GFS bridge table exists on the IFMS and shall be updated for GFSM2014.
- Full rollout of IFMS or implementation of comprehensive GFSM 2001/14 compliant reporting for budgetary central government, extrabudgetary entities, local governments, and Social Security Fund.
  - Indicator: Integrated financial reporting or reporting relationship established.
  - Target Date: June 2016 for Local Government and the Extra-Budgetary units.
  - Implementation Status: All central government votes included on IFMS apart from tertiary institutions and 9 referral hospitals; 40 local governments and 8 donor projects currently in IFMS.
- Expand coverage of GFS (flows) to include all general government units.
  - Indicator: General government finance statistics (flows) compiled and disseminated.
  - Target Date: June 2016 on a cash basis and June 2017 including modified cash data.
  - Implementation Status: Compilation currently covers budgetary central government and local governments; data exist for Extra-Budgetary units but not consolidated.
- Include stocks of financial assets and liabilities in quarterly GFS of budgetary central government:
  - Indicator: At nominal value and at market value; timely dissemination of quarterly budgetary central government GFS including stocks (Financial Balance Sheet).
  - Target Dates: June 2016 at nominal value and June 2017 at market value.
  - Implementation Status: Financial assets and liabilities currently disseminated at cost value and face value; full capture requires updated inventory and valuation.
- Develop procedures and mechanism for collection of public debt data from public corporations.
  - Indicator: Reporting relationship established via memorandum of understanding or reporting instructions.
  - Target Date: June 2016
  - Implementation Status: To date, Uganda does not have compiled data on public corporations’ debt.
- Compile and disseminate public debt statistics of the public sector.
  - Indicator: Quarterly public sector debt statistics compiled and disseminated.
  - Target Date: December 2016
  - Implementation Status: General government external debt statistics are compiled by MOFPED and domestic debt statistics by the BOU; mission assisted officials to expand data compilation on the GFS public sector debt template.

---

### Resources, training, and technical assistance

### Coordination and roles
- GFS coordination in MOFPED is by the Macroeconomic Policy Department of the Directorate of Economic Affairs, using inputs from various departments, IFMS, and other institutions.
- GFS reporting to the IMF and EAC is performed by MOFPED.
- A March 2010 Memorandum of Understanding (MOU) between UBOS and MOFPED clarifies statistical responsibilities:
  - MOFPED shall remit fiscal data for publication in GFSY and IFS after reconciliation and validation by the PFS Committee.
  - UBOS shall be responsible for disseminating official Public Finance Statistics nationally, regionally, and internationally.
  - Upon verification and validation by PFS Committee, UBOS shall recognize fiscal data and publications produced by MOFPED as official.

### Training delivered and scheduled
- Training delivered during the mission included:
  - revisions to the GFS framework as a result of the GFSM 2001-to-2014 update;
  - identifying institutional units and methods for sectorization;
  - understanding GFS classifications and framework;
  - using the classification assistant;
  - operationalizing consolidation.
- Upcoming regional and national training events noted:
  - IMF (East AFRITAC) and the EAC planned a regional workshop in Arusha, Tanzania during August 24-29, 2014.
  - A regional workshop in Victoria Falls, Uganda on November 17-21, 2014, and IMF/EAC jointly sponsored GFS training on November 24-28, 2014 for selected financial officers in Uganda.
- A follow-up mission is tentatively scheduled to take place before May 2015.

---

### COFOG mapping, database development, and institutional structure

### COFOG mapping review and classification exercise
- The mission conducted a hands-on exercise to build bridge tables between Uganda’s classification of functions of government and the COFOG in order to align with GFSM 2001/14.
- Recommendation:
  - Programs and projects in recent or current use should be selected on a specific file and a list compiled with the main objectives of each of the program/projects in order to adequately classify programs/projects into their relevant COFOG categories.
  - In case a project is multifunctional, the mission recommends that indicators be used to split multifunctional projects into multiple COFOG classifications.

### Database development and interagency sharing
- UBOS requested recommendations on next steps for database development for the public sector and on extraction of GFS data from public corporations’ financial statements.
- The mission:
  - Evaluated the existing database.
  - Suggested possible improvements.
  - Initiated a process of providing assistance on how to use financial statements to generate GFS data.
- Recommendation:
  - To the extent possible, the various agencies should share the same databases and data sources to guarantee consistency among distinct macroeconomic statistical systems, optimize the use of resources, and avoid duplication of efforts.

### Institutional structure of the general government (summary statistics and scope)
- Units of General Government — Central Government:
  - Subsector 1. Budgetary central government: 1.1 124 entities (revised up from 66 entities reported), including agencies, commissions, ministries, parliament, president’s office, prime minister’s office, state house and national referral hospitals.
  - Subsector 2. Extrabudgetary units/entities: 2.1 63 institutions (revised down from 141 institutions reported), including, 9 universities and institutions of higher learning, and other semi-autonomous agencies.
  - Subsector 3. Social security funds: 3.1 Not applicable.
- State Governments:
  - Subsector 4. State governments: 4.1 Not applicable.
- Local Governments:
  - Subsector 5. Local governments: 5.1 308 institutions, including 114 districts (111 districts reported previously), 22 municipalities, and 175 town councils (179 town councils reported previously). No city council (1 city council reported previously).
- Public financial and nonfinancial corporations coverage:
  - At this time, Uganda is not producing GFS for subsectors 6 and 7 (public corporations).
- Data coverage and time series:
  - Uganda’s GFS time series extends currently back to 1998.
  - There are no critical series breaks for the data that are presented. However, “...” is used to indicate data gaps.

### Accounting practices (key points)
- Liquidation or complementary period:
  - All of Uganda’s GFS data are produced with internal consistency for fiscal and calendar years: i.e., no liquidation or complementary period affects the data.
- Valuation of assets and liabilities:
  - Uganda’s GFS reflects a cash basis of reporting.
  - Only highly aggregated assets and liabilities data are published.
  - Nonfinancial assets are valued at historical cost, and financial assets and liabilities are valued at cost.

---

### Selected mappings, codes, and classifications (excerpts)

### Assets — Transactions / Net acquisition of financial assets (selected national-GFS mappings)
- 1. Land — C3141,1:  Transactions - Acquisitions: land
- 2. Loans — C3204:  Transactions - Net acquisition of financial assets :  Loans [3214+3224]
- 3. Building — C3111,1:  Transactions - Acquisitions: buildings and structures
- 4. Vehicles — C3112,1:  Transactions - Acquisitions: machinery and equipment
- 5. Equipment — C3112,1:  Transactions - Acquisitions: machinery and equipment
- 6. Furniture & Fittings — C3112,1:  Transactions - Acquisitions: machinery and equipment
- 7. Inventories — C312.1: CNW - Acquisitions
- 8. Valuables — C3143,1:  Transactions - Acquisitions: other naturally occurring assets
- 9. Cash/deposits — C3202:  Transactions - Net acquisition of financial assets :  Currency and deposits [321
- 10. Investment in securities — C3203:  Transactions - Net acquisition of financial assets :  Securities other than shares
- 11. Investment in shares and other equity — C3205:  Transactions - Net acquisition of financial assets :  Shares and other equity [32
- 12. Other Accounts receivable — C3208:  Transactions - Net acquisition of financial assets :  Other accounts receivable [3

### Liabilities — Transactions / Net incurrence of liabilities (selected)
- 1. Cash/deposits — C3302:  Transactions - Net incurrence of liabilities: Currency and deposits [3312+3322
- 2. Securities — C3303:  Transactions - Net incurrence of liabilities: Securities other than shares [3313+3
- 3. Shares and other equity — C3305:  Transactions - Net incurrence of liabilities: Shares and other equity [3315+332
- 4. Loans — C3304:  Transactions - Net incurrence of liabilities: Loans [3314+3324]

### Other Accounts payable (scope and examples)
- C3308:  Transactions - Net incurrence of liabilities: Other accounts payable [3318+3328
- Levels and applicable units (examples shown in source):
  - Local Governments (1998–2012) — LEVEL: Local governments
  - Budgetary Central Government (2010–11) — LEVEL: Budgetary central government
  - Budgetary Central Government (2012–13) — LEVEL: Budgetary central government

### Selected national nomenclature and GFS mapping (excerpts preserved verbatim)
- Revenue (from Table 2): Taxes, Social contributions C12, Grants (C1331, C1311), Other revenue (C1422)
- Expense (from Table 3): Compensation of employees (C211), Use of goods and services (C22), Consumption of fixed capital 23, Interest C24, Subsidies C25, Grants/transfers C2631, Social benefits C251, Other expense 2821
- Balances and aggregates: Net operating balance (1 minus 2), Gross operating balance (1 minus 2 plus 23), Net acquisition of non-financial assets (C31), Net lending/borrowing (1 minus 2 minus 31)
- Specific administrative and arrears codes: 321103 EXPENDITURE ACCOUNT; 321605 DOMESTIC ARREARS (BUDGETING); 321606 EXTERNAL DEBT REPAYMENT (BUDGETING); 321608 PENSION ARREARS (BUDGETING); 321611 Def/Military Pensions arrears (Budgeting); 321603 SUNDRY DEBTORS

---

### Appendix IV — Derivation Table between National and GFSM 2014 Aggregates (selected figures)

Uganda’s Budgetary Central Government — Key Aggregates (Billions of Shillings)
- Revenue
  - Total revenue and grants: 7,292.47 (2010/11); 8,526.87 (2012/13)
  - plus: 0.00 (2010/11); 0.00 (2012/13)
  - Revenue according to GFSM 2014: 7,292.47 (2010/11); 8,526.87 (2012/13)

- Expense
  - Total expense: 6,066.30 (2010/11); 7,785.26 (2012/13)
  - minus: 23.28 (2010/11); 112.80 (2012/13)
  - Bad debt: 0.01 (2010/11); 0.00 (2012/13)
  - Gross tax: 23.28 (2010/11); 112.80 (2012/13)
  - Expense according to GFSM 2014: 6,043.02 (2010/11); 7,672.46 (2012/13)

- Net Acquisition of Nonfinancial Assets
  - Net Acquisition of Nonfinancial Assets: 756.81 (2010/11); 216.00 (2012/13)
  - plus: 0.00 (2010/11); 0.00 (2012/13)
  - Net acquisition of nonfinancial assets according to GFSM 2014: 756.81 (2010/11); 216.00 (2012/13)

Notable derivation observations
- The only explicit adjustments between national aggregates and GFSM 2014 aggregates in the table are:
  - Expense adjustments: minus 23.28 (2010/11) and minus 112.80 (2012/13), with bad debt recorded as 0.01 (2010/11).
  - No adjustments recorded for Revenue or Net Acquisition of Nonfinancial Assets (all zeros).

---

### Appendix V — Classification Code Changes from the GFSM 2001 to 2014 Update (selected new/updated codes)

- REVENUE (selected entries): 1113 Other taxes on income, profits, and capital gains; 1135 Capital levies; 11414 Taxes on financial and capital transactions; 114521 Business and professional licenses; 114522 Pollution taxes; 114523 Radio and television licenses; 114524 Licenses and permits for households; 114525 Other taxes on use of goods and on permission to use goods or perform activities not elsewhere classified; 14111 Interest from nonresidents; 14112 Interest from residents other than general government; 14113 Interest from other general government units; 14121 Dividends from nonresidents; 14122 Dividends from residents; 1414 Property income from investment income disbursements; 1416 Reinvested earnings on foreign direct investment; 144 Transfers not elsewhere classified; 145 Premiums, fees, and claims related to nonlife insurance and standardized guarantee schemes; 1451 Premiums, fees, and current claims; 14511 Premiums; 14512 Fees for standardized guarantee schemes; 14513 Current claims; 1452 Capital claims.

- EXPENSE (selected entries): 212 Employers' social contributions; 2121 Actual employers’ social contributions; 2122 Imputed employers’ social contributions; 253 Subsidies to other sectors; 273 Employment-related social benefits; 2731 Employment-related social benefits in cash; 2732 Employment-related social benefits in kind; 28111 Dividends to nonresidents; 28112 Dividends to residents; 2813 Property expense for investment income disbursements; 282 Transfers not elsewhere classified; 283 Premiums, fees, and claims related to nonlife insurance and standardized guarantee schemes; 2831 Premiums, fees, and current claims; 28311 Premiums; 28312 Fees for standardized guarantee schemes; 28313 Current claims; 2832 Capital claims.

- NET TRANSACTIONS IN ASSETS AND LIABILITIES (selected entries): 31112 Buildings other than dwellings; 31114 Land improvements; 31122 Machinery and equipment other than transport equipment; 311221 Information, computer, and telecommunications (ICT) equipment; 311322 Mineral exploration and evaluation; 311323 Computer software and databases; 3113231 Computer software; 3113232 Databases; 311324 Entertainment, literary, and artistic originals; 311325 Other intellectual property products; 3114 Weapons systems; 3201 Monetary gold and SDRs; Insurance, pension, and standardized guarantee schemes; 33061 Nonlife insurance technical reserves; 33062 Life insurance and annuities entitlements; 33063 Pension entitlements; 33064 Claims of pension funds on pension manager; 33065 Provisions for calls under standardized guarantee schemes.

---

### Appendix VI — List of Officials Met during the Mission (selected entries)

- MOFPED:
  - Ishmael M. Magona — Commissioner (Ag. Deputy Secretary to Treasury) — Infrastructure and Social Services
  - Maris Wanyera — Commissioner (Ag. Director, Economic Affairs) — Aid Liaison
  - Lawrence Semakula — Ag. Accountant General — Accountant General's Office
  - Laban Mbulamuko — Commissioner — Budget Policy
  - Robert. B. Okudi — Commissioner — Macroeconomic Policy
  - Paul Mwanja — Ag. Assistant Commissioner — Macroeconomic Policy
  - Charles Matovu — Economist — Macroeconomic Policy
  - Martin A. Nsubuga — Ag.Principal Economist — Macroeconomic Policy
  - Oscar Ayebazibwe — Economist — Macroeconomic Policy
  - Elaine Abomwesigwa — Economist — Macroeconomic Policy
  - Joy Gessa — Economist — Macroeconomic Policy
  - Daniel Kigenyi — Principal Accountant — Treasury Services
  - Obadia Turinawe — Economist — Macroeconomic Policy

- BOU:
  - Kenneth Egesa — Director, Statistics — Statistics
  - Pauline Ssentongo — Deputy Director — Statistics
  - Grace A. Tinyinondi — Head, Government Operations Statistics — Statistics

- UBOS:
  - John Mayende — Principal Statistician, Head of GFS and Trade Section — GFS and Trade Statistics
  - Lydia N. Niyibizi — Senior Statistician — Macroeconomic Statistics
  - Junda Nuwamanya — Statistician — Macroeconomic Statistics
  - Julius Namara — Statistician — Macroeconomic Statistics
  - Irene B. Nakate — Statistician — Macroeconomic Statistics

*This summary is based on the IMF mission report Executive Summary (cr17312).*

### Executive Summary ......................................................................................................

### Executive Summary

### Mission and objectives
- IMF GFS TA mission visited Kampala during July 8–18, 2014.
- Mission led by Mr. Rocha, with participation by Mr. Robinson. Mr. Johan Mathisen (IMF GFS Advisor at AFRITAC) and Mr. Michael Gitau (EAC Secretariat) participated.
- Mission undertaken within project STA_UGA_2015_04 and aligned with fiscal data requirements associated with the East African Monetary Union (EAMU) Protocol.
- Main objectives:
  - Assist the Ministry of Finance, Planning, and Economic Development (MOFPED) and the Uganda Bureau of Statistics (UBOS) in compilation and dissemination of GFS in accordance with GFSM 2001/14.
  - Provide GFS training to counterpart staff.

### Main findings and recommendations (summary)
- MOFPED, UBOS, and the Bank of Uganda (BOU) jointly revised the GFSM 2001/14 implementation plan; plan to be further developed and presented at IMF (East AFRITAC)/EAC regional workshop in Arusha, Tanzania on August 24-29, 2014.
  - Recommendation: Implement the final plan to ensure Uganda meets statistical requirements under the EAMU Protocol.
- New institutional table produced jointly by MOFPED, UBOS, and BOU to be reviewed, adopted, and used as a government standard.
  - Recommendation: Perform regular joint reviews of the institutional table to ensure consistency in macroeconomic data reporting.
- Mission assisted in incorporating extrabudgetary units (EBUs) data to build GFS for a full general government sector.
  - Recommendation: Continue this work to attain standard fiscal data reporting under the EAMU convergence criteria.
- Public sector debt statistics template aligned with World Bank template; mission recommended compiling and reporting other debt instruments such as “currency and deposits” and “insurance, pensions and standardized guarantees,” and submitting these to the World Bank’s Public Sector Debt Statistics database.
  - Recommendation: Continue disseminating GFS to the IMF and EAC and start disseminating a broader range of public sector debt statistics through the World Bank.

### Institutional and data coverage of general government and public sectors
- Legal framework:
  - Public Finance and Accountability Act (PFAA) 2003 is the regulatory framework for public financial management in Uganda.
  - PFAA requires accounts of public organizations to be audited by the Auditor-General and audited annual financial statements to be prepared and submitted to the Minister of Finance within four months after the end of the financial year; statements to be laid before Parliament not later than one month after the Minister receives them.
  - Financial year defined as July 1 to June 30.
  - Uganda adopted (cash basis) International Public Sector Accounting Standards in 2006.
- Ongoing reforms:
  - Public Finance Bill (Bill No. 5 from 2012) under discussion at time of mission to clarify reporting responsibilities, harmonize reporting periods, and improve statistics on contingent liabilities.
  - October 2013 introduction of a single treasury account to facilitate MOFPED consolidation of accounts.
- General government subsectors:
  - Budgetary central government (BCG), extrabudgetary units (EBUs), and local governments. No state governments.
- Sectorization outcomes from mission review:
  - BCG increased to 124 entities from 66 entities reported previously.
  - EBUs reduced to 63 institutions from 141 institutions.
  - Appendix II presents a preliminary comprehensive list of general government and public corporations (source document).
- Specific entity classification:
  - National Social Security Fund (NSSF) classified as a public financial institution consistent with GFSM 2014 sectoring guidelines (compulsory saving scheme, deposits withdrawable under specified circumstances such as retirement).
  - Recommendation: Review and finalize the institutional table produced during the mission and adopt it as the standard; develop procedures for maintaining and regularly reviewing the public sector institutional table.
- BCG compilation and dissemination:
  - MOFPED compiles consolidated monthly and annual data for 66 BCG entities on a cash basis in a GFSM 2001 format.
  - MOFPED publishes BCG data in the annual Statistical Abstract (hardcopy and website) and monthly GFS for BCG on its website.
  - MOFPED reports annual (GFSY) budgetary central and local GFS and monthly (IFS) BCG finance statistics to the IMF’s Statistics Department.
    - Monthly series cover July 1997 to March 2014.
    - Annual series run from 1997/98 to 2012/13, with work ongoing to report 2013/14.
  - Recommendation: Gradually increase coverage of BCG data to cover all entities on the revised institutional table, and resubmit historical IFS and GFSY data.

### Accounting and statistical systems
- Chart of Accounts (COA) and source systems:
  - Substantially revised COA issued in March 2011 and implemented in all BCG units, all local governments, and some EBUs; remaining EBUs and most public corporations use private accounting systems aligned with International Financial Reporting Standards.
  - New COA broadly aligned with GFSM 2001 classification codes; bridge tables produced (Appendix III) and derivation table showing consistency of main national and GFSM 2014 aggregates (Appendix IV).
  - Mission provided list of new accounting codes from GFSM 2001 to 2014 update (Appendix IV) for consideration in future COA updates.
- Source data flows:
  - Tax revenue data from Tax Policy Department (MOFPED).
  - Nontax revenue from Treasury Department (MOFPED).
  - Expense and transactions in nonfinancial assets and financial assets and liabilities from Integrated Financial Management System (IFMS).
    - Expense incurred by BCG donor projects not recorded in IFMS; estimated and added by MOFPED.
  - Transfers from Budget Department; external grants from Aid Liaison Department.
  - Accounts generally prepared on a cash basis.
- Questionnaires and submissions:
  - Mission revised and updated GFSY and IFS questionnaires using disaggregated source data.
  - High frequency IFS questionnaire aligned with GFSM 2001 and updated through May 2014 with more detail.
  - Preliminary 2012/13 GFSY questionnaire produced jointly with authorities.
  - Recommendation: MOFPED regularly update and submit the detailed GFSM 2001-compliant IFS questionnaire produced by the mission. Annual data submissions on BCG assets and liabilities should be expanded to produce a partial balance sheet.
- Local government data:
  - Annual local GFS compiled based on annual reports filed in hardcopy with the Accountant General’s Office.
  - Districts report on a cash basis; municipalities and town councils report on an accrual accounting basis.
  - Approved estimates of revenue and expenditure for local governments issued by MOFPED.
  - Local GFS available on MOFPED’s Internet website and transmitted to the IMF for GFSY publication.
  - IFMS rollout covers 40 local governments; complete IFMS rollout to local governments envisaged to begin within the next two years.
  - Recommendation: Gradually collect more detailed and timely local government data as it becomes available and automate processing by integrating the GFS bridge table with the information system.
- EBUs coverage and challenges:
  - Main impediments to EBU coverage: incomplete reporting by EBUs, fiscal year inconsistencies, methodological discrepancies, and timeliness issues.
  - MOFPED assembling annual dataset for EBUs based on audited reports; Statistical Abstract published June 2013 with data for 2004/05–2010/11.
  - Mission used EBU data to generate partial GFS for the subsector and trial consolidated general government GFS:
    - GFS for EBUs compiled using multiperiod IMF Classification Assistant for 2004/05 through 2010/11 for 37 of the 66 EBUs for which data were available.
    - Consolidated general government GFS compiled for 2010/11 using multisector Classification Assistant (BCG, EBUs, local governments).
  - Note on EBU fiscal years in available data: 29 EBUs had July to June fiscal years; 6 EBUs had January to December fiscal years; 2 EBUs had October to September fiscal years.
  - Recommendation: New Public Finance Bill and its regulations should harmonize EBUs’ fiscal years, clarify reporting responsibilities, and increase reporting frequency by EBUs.
  - Recommendation: Continue efforts to extend the EBU dataset and use bridge tables prepared by the mission to include EBU finance statistics in IMF data submissions.

_This summary is based on the IMF mission report Executive Summary (cr17312)._

### 22.      GFS consolidation for the general government sector is quite simple in the case of

### 22.      GFS consolidation for the general government sector is quite simple in the case of

### Consolidation focus and Grants classification
- Only one of the three important types of accounts for consolidation is relevant for Uganda: grants. The three types of accounts are assets and liabilities, interest, and grants.
- Uganda does not currently produce complete and detailed GFS data on assets and liabilities.
- There are no interest flows across subsectors of general government because BCG borrows for the entire sector.
- Uganda’s COA includes GFS codes on grants, including:
  - to/from foreign governments,
  - to/from international organizations,
  - to/from other levels of government,
  - current and capital breakdowns for each of the three types of grants.
- The national tabular presentations of GFS emphasize a “budget support” and “project support” classification of grants.
- Recommendation:
  - Compile data according to the classification of grants required by GFSM 2014 to facilitate consolidation.

### Data compilation for public corporations and nonfinancial corporations
- MOFPED currently compiles annual data for public financial corporations and for some nonfinancial corporations; these data are published in the Statistical Abstract.
- The Public Finance Bill requires that all public corporations file annual reports with the Accountant General.
- MOFPED plans to use these filed annual reports to produce public sector finance statistics.
- Recommendation:
  - Develop procedures and mechanisms for the collection of public debt data from public corporations.

### General government debt data sources, coverage, and gaps
- General government debt data are published by MOFPED in its annual Statistical Abstract at a much aggregated level.
- General government external debt data are compiled by MOFPED and reconciled with the BOU quarterly.
- General government domestic debt data are compiled at the BOU and shared with MOFPED.
- The PFAA states that only the MOFPED can contract loans and issue guarantees on behalf of local governments and public corporations.
- There are no data available on other accounts payable for local governments and EBUs; they cannot incur any other types of debt; hence, there are no debt statistics for local governments.
- Public corporations debt data are not compiled by the BOU, but the BOU collects:
  - currency and deposits,
  - loans,
  - some recent data on other accounts payable for financial public corporations.
- Mission actions and findings:
  - The mission obtained quarterly data from 2009 to 2013 for the World Bank’s public sector debt template, including general government domestic debt, “currency and deposits” and BOU debt data (loans and other accounts payable).
  - Source data were provided and verified.
  - Debt data for “insurance, pensions and standardized guarantee schemes” could not be obtained.
  - A spreadsheet was compiled with public debt data for the period 2009–2013 for general government and for the BOU.
- Recommendations:
  - Organize source data for “currency and deposits” and “insurance, pensions and standardized guarantee schemes” into a dataset to improve compilation, validation, and dissemination of general government debt data by the BOU.
  - Develop procedures and mechanisms for the collection of public debt data from public corporations.
- MOFPED requested evaluation and improvements to the draft Uganda Debt Statistical Bulletin:
  - Mission recommended incorporation of the set of tables used in dissemination of GFS debt data into the bulletin.
  - Mission recommended defining and publishing a clear revision policy in the bulletin.
  - The bulletin is intended to be produced annually and ultimately evolve into semiannual and quarterly publication.

### Consistency of GFS datasets and other macroeconomic data
- The Public Finance Statistics (PFS) Committee was established in 2010 to address fiscal data reconciliation and quality improvement; it includes UBOS, MOFPED, BOU, and the Local Government Finance Commission.
- The committee meets regularly to ensure consistency between GFS and other macroeconomic data.
- Mission performed internal GFS data consistency checks:
  - Detailed data for fiscal years 2010/11 and 2012/13 were obtained on tax revenue, nontax revenue, expense, arrears, transactions in nonfinancial assets, and domestic and external grants from MOFPED and classified using the IMF Classification Assistant.
  - Authorities indicated the detailed data were consistent with published estimates.
  - Misclassifications identified include:
    - employment-related social benefits classified as “compensation”;
    - bad debt classified as an “expense”;
    - transfers to nongovernmental units classified as “grants”;
    - various types of arrears categories classified as “liabilities” and not coded to GFS expense classifications.
  - Despite misclassifications, total revenue and expense values in the Classification Assistant and source data were comparable.
- Recommendation:
  - Correct the misclassifications, including removing expense line items for “arrears,” distributing the amounts shown to subitems of the relevant GFS types of expense, and introducing a memorandum item for the total stock of arrears.
- Local government and EBUs verification:
  - Local government data compiled from audited financial statements produced accurate GFS compilation results via the Classification Assistant.
  - For EBUs’ audited annual reports, the Classification Assistant organized revenue, expense, net acquisition of nonfinancial assets, acquisition of financial assets and incurrence of liabilities accurately; balancing items were consistent.
- Data publication and dissemination:
  - Only consolidated financial data for BCG is currently published in an Audit Report on the Accountant General’s website.
  - The new Finance Bill (if passed) includes provisions for the Accountant General to publish consolidated accounts for central government (including BCG units and EBUs), local governments, and public corporations, which would impose more discipline on public sector fiscal data production.
- Data sharing and reconciliation:
  - UBOS has a dataset for BCG fiscal data, local government data, and is developing a database for public corporations.
  - BCG data are obtained through distinct institutions; other sector data are obtained via hardcopies of financial reports.
  - Consistency between UBOS and MOFPED data should be reviewed during future GFS TA missions.

### GFSM 2001/14 implementation plan: objectives, targets, and outputs
- Governance and committees:
  - The GFS Technical Working Group is the Social Economic Statistics Technical Committee (MOFPED, UBOS, BOU).
  - MOFPED formed a high-level GFS Committee of commissioners and a Sector Statistics Committee (SSC) to implement directives and recommendations.
- The implementation plan aims to meet EAMU Protocol fiscal statistics requirements.
- Key targets and objectives (verifiable indicators and target dates preserved exactly as in source):
  - Objective: To compile and publish annual general government finance statics according to GFSM 2001 (GFSM 2014).
    - Verifiable Indicators: Dissemination of monthly (budgetary central government), quarterly (central government) and annual (general government) GFS to the public, the EAC Secretariat, and publication in the IFS and GFSY.
    - Target Date: 2017
    - Assumptions: Commitment to replace the current GFSM 1986 tables with GFSM 2001 (GFSM 2014) tables in all internal and external fiscal tables, including in the Article IV Consultation Reports, the budget statements, an adequately resourced GFS team, and that the necessary technical support is available on a timely basis.
  - Outputs, verifiable indicators, target dates, and implementation status (selected highlights):
    - Conduct regular GFS Technical Working Groups meetings/workshops.
      - Indicator: Minutes and training material from committee meetings and workshops.
      - Target Date: September 2014
      - Implementation Status: Working groups established; meetings/workshops need to be held at least once a quarter.
    - Define and maintain an institutional structure of the government consistent with GFSM 2001/14.
      - Indicator: Finalized general government sector institutional table and tentative comprehensive lists of public corporations.
      - Target Date: December 2014
      - Implementation Status: MOFPED provided a draft institutional table; reclassification of institutional units into subsectors is ongoing.
    - Link country’s COA classifications with GFSM 2001/14 economic classifications.
      - Indicator: Verified derivation tables linking national COA classifications and GFSM 2001/14 classifications.
      - Target Date: December 2014
      - Implementation Status: Current COA classifications have been mapped; suggestions to align with GFSM2014 provided.
    - Link COA classifications with COFOG classifications.
      - Indicator: Verified bridge tables linking COA and COFOG classifications.
      - Target Date: December 2014
      - Implementation Status: SSC reviewing COFOG mapping; mission made suggestions to improve draft mapping.
    - Reflect updated GFS economic and functional classification tables in budget tables.
      - Indicator: Presentation of GFSM 2001 (GFSM 2014) and COFOG tables and related analysis in annual budget.
      - Target Date: 2015/2016 Budget
      - Implementation Status: Requires verified bridge tables and analytical capacity in SSC, MOFPED, and UBOS.
    - Disseminate GFSM 2001/14 compliant BCG data for FY2009 thru FY 2012/13.
      - Indicator: Presentation of Statement of Sources and Uses of Cash, Statement of Operations by GFS, and dissemination of COFOG data.
      - Target Date: December 2014
      - Implementation Status: GFSM2001 compliant budgetary central government data have been disseminated annually from FY2009 thru 2012/013; monthly dissemination (IFS) needs updating.
    - Disseminate GFSM 2001/14 compliant central government data (budgetary and EBUs) for FY 2014.
      - Indicator: Presentation and dissemination of GFS and COFOG data.
      - Target Date: December 2015
      - Implementation Status: Data compiled for EBUs in aggregated format; institutional table for general government sector under review.
    - Disseminate GFSM 2001/14 compliant local government data for FY2014.
      - Indicator: Presentation and dissemination of GFS and COFOG data.
      - Target Date: December 2015
      - Implementation Status: Data compiled for local governments in aggregated format since FY 1997/98 to FY2011/12; institutional table under review.
    - Incorporate the COA-GFS bridge table in IFMS and automate report compilation.
      - Indicator: Production of GFS reports directly from the source data in IFMS.
      - Target Date: June 2015
      - Implementation Status: A COA-GFS bridge table exists on the IFMS and shall be updated for GFSM2014.
    - Full rollout of IFMS or implementation of comprehensive GFSM 2001/14 compliant reporting for budgetary central government, extrabudgetary entities, local governments, and Social Security Fund.
      - Indicator: Integrated financial reporting or reporting relationship established.
      - Target Date: June 2016 for Local Government and the Extra-Budgetary units.
      - Implementation Status: All central government votes included on IFMS apart from tertiary institutions and 9 referral hospitals; 40 local governments and 8 donor projects currently in IFMS.
    - Expand coverage of GFS (flows) to include all general government units.
      - Indicator: General government finance statistics (flows) compiled and disseminated.
      - Target Date: June 2016 on a cash basis and June 2017 including modified cash data.
      - Implementation Status: Compilation currently covers budgetary central government and local governments; data exist for Extra-Budgetary units but not consolidated.
    - Include stocks of financial assets and liabilities in quarterly GFS of budgetary central government:
      - Indicator: At nominal value and at market value; timely dissemination of quarterly budgetary central government GFS including stocks (Financial Balance Sheet).
      - Target Dates: June 2016 at nominal value and June 2017 at market value.
      - Implementation Status: Financial assets and liabilities currently disseminated at cost value and face value; full capture requires updated inventory and valuation.
    - Include stocks of financial assets and liabilities in quarterly GFS of extrabudgetary, local government, and the social security fund:
      - Indicator: At nominal value and at market value.
      - Target Dates: June 2016 at nominal value and June 2017 at market value.
      - Implementation Status: Full data capture requires updated inventory and valuation; regulations may be required for timely submissions.
    - Develop procedures and mechanism for collection of public debt data from public corporations.
      - Indicator: Reporting relationship established via memorandum of understanding or reporting instructions.
      - Target Date: June 2016
      - Implementation Status: To date, Uganda does not have compiled data on public corporations’ debt.
    - Compile and disseminate public debt statistics of the public sector.
      - Indicator: Quarterly public sector debt statistics compiled and disseminated.
      - Target Date: December 2016
      - Implementation Status: General government external debt statistics are compiled by MOFPED and domestic debt statistics by the BOU; mission assisted officials to expand data compilation on the GFS public sector debt template.

### Resources, training, and technical assistance
- GFS coordination and responsibilities:
  - Work on GFS in MOFPED is coordinated by the Macroeconomic Policy Department of the Directorate of Economic Affairs, using inputs from various departments, IFMS, and other institutions.
  - GFS reporting to the IMF and EAC is performed by MOFPED.
  - A March 2010 Memorandum of Understanding (MOU) between UBOS and MOFPED clarifies statistical responsibilities:
    - MOFPED shall remit fiscal data for publication in GFSY and IFS after reconciliation and validation by the PFS Committee.
    - UBOS shall be responsible for disseminating official Public Finance Statistics nationally, regionally, and internationally.
    - Upon verification and validation by PFS Committee, UBOS shall recognize fiscal data and publications produced by MOFPED as official.
- Training delivered during the mission included:
  - revisions to the GFS framework as a result of the GFSM 2001-to-2014 update;
  - identifying institutional units and methods for sectorization;
  - understanding GFS classifications and framework;
  - using the classification assistant;
  - operationalizing consolidation.
- Upcoming regional and national training events noted:
  - IMF (East AFRITAC) and the EAC planned a regional workshop in Arusha, Tanzania during August 24-29, 2014.
  - A regional workshop in Victoria Falls, Uganda on November 17-21, 2014, and IMF/EAC jointly sponsored GFS training on November 24-28, 2014 for selected financial officers in Uganda.

*Source: cr17312*

### 38.      The MOFPED requested that the mission provide a review of Uganda’s COFOG

### The MOFPED requested that the mission provide a review of Uganda’s COFOG mapping

### COFOG mapping review and classification exercise
- The mission conducted a hands-on exercise to build bridge tables between Uganda’s classification of functions of government and the COFOG in order to align with GFSM 2001/14.
- Recommendation:
  - Programs and projects in recent or current use should be selected on a specific file and a list compiled with the main objectives of each of the program/projects in order to adequately classify programs/projects into their relevant COFOG categories.
  - In case a project is multifunctional, the mission recommends that indicators be used to split multifunctional projects into multiple COFOG classifications.

### Database development, GFS extraction from public corporations, and interagency data sharing
- UBOS requested recommendations on next steps for database development for the public sector and on extraction of GFS data from public corporations’ financial statements.
- The mission:
  - Evaluated the existing database.
  - Suggested possible improvements.
  - Initiated a process of providing assistance on how to use financial statements to generate GFS data.
- Recommendation:
  - To the extent possible, the various agencies should share the same databases and data sources to guarantee consistency among distinct macroeconomic statistical systems, optimize the use of resources, and avoid duplication of efforts.

### Mission scheduling
- A follow-up mission is tentatively scheduled to take place before May 2015.

### Institutional structure of the general government (summary statistics and scope)
- Units of General Government — Central Government:
  - Subsector 1. Budgetary central government: 1.1 124 entities (revised up from 66 entities reported), including agencies, commissions, ministries, parliament, president’s office, prime minister’s office, state house and national referral hospitals.
  - Subsector 2. Extrabudgetary units/entities: 2.1 63 institutions (revised down from 141 institutions reported), including, 9 universities and institutions of higher learning, and other semi-autonomous agencies.
  - Subsector 3. Social security funds: 3.1 Not applicable.
- State Governments:
  - Subsector 4. State governments: 4.1 Not applicable.
- Local Governments:
  - Subsector 5. Local governments: 5.1 308 institutions, including 114 districts (111 districts reported previously), 22 municipalities, and 175 town councils (179 town councils reported previously). No city council (1 city council reported previously).
- Public financial and nonfinancial corporations coverage:
  - At this time, Uganda is not producing GFS for subsectors 6 and 7 (public corporations).
- Data coverage and time series:
  - Uganda’s GFS time series extends currently back to 1998.
  - There are no critical series breaks for the data that are presented. However, “...” is used to indicate data gaps.

### Accounting practices (key points)
- Liquidation or complementary period:
  - All of Uganda’s GFS data are produced with internal consistency for fiscal and calendar years: i.e., no liquidation or complementary period affects the data.
- Valuation of assets and liabilities:
  - Uganda’s GFS reflects a cash basis of reporting.
  - Only highly aggregated assets and liabilities data are published.
  - Nonfinancial assets are valued at historical cost, and financial assets and liabilities are valued at cost.

*Source: cr17312 - 38.*

### 1. Land

### 1. Land

### Assets — Transactions / Net acquisition of financial assets
- 1. Land  
  - C3141,1:  Transactions - Acquisitions: land
- 2. Loans  
  - C3204:  Transactions - Net acquisition of financial assets :  Loans [3214+3224]
- 3. Building  
  - C3111,1:  Transactions - Acquisitions: buildings and structures
- 4. Vehicles  
  - C3112,1:  Transactions - Acquisitions: machinery and equipment
- 5. Equipment  
  - C3112,1:  Transactions - Acquisitions: machinery and equipment
- 6. Furniture & Fittings  
  - C3112,1:  Transactions - Acquisitions: machinery and equipment
- 7. Inventories  
  - C312.1: CNW - Acquisitions
- 8. Valuables  
  - C3143,1:  Transactions - Acquisitions: other naturally occurring assets
- 9. Cash/deposits  
  - C3202:  Transactions - Net acquisition of financial assets :  Currency and deposits [321
- 10. Investment in securities  
  - C3203:  Transactions - Net acquisition of financial assets :  Securities other than shares
- 11. Investment in shares and other equity  
  - C3205:  Transactions - Net acquisition of financial assets :  Shares and other equity [32
- 12. Other Accounts receivable  
  - C3208:  Transactions - Net acquisition of financial assets :  Other accounts receivable [3 
- TOTAL

### Liabilities — Transactions / Net incurrence of liabilities
- 1. Cash/deposits  
  - C3302:  Transactions - Net incurrence of liabilities: Currency and deposits [3312+3322
- 2. Securities  
  - C3303:  Transactions - Net incurrence of liabilities: Securities other than shares [3313+3
- 3. Shares and other equity  
  - C3305:  Transactions - Net incurrence of liabilities: Shares and other equity [3315+332
- 4. Loans  
  - C3304:  Transactions - Net incurrence of liabilities: Loans [3314+3324]

*Source: cr17312 - 1. Land (PDF chapter content).*

### 5. Other Accounts payable

### 5. Other Accounts payable

### Scope and headline code
- C3308:  Transactions - Net incurrence of liabilities: Other accounts payable [3318+3328

### Closing and classification context
- TOTAL
- Closing Net Worth
- National

### Levels and applicable units (examples shown in source)
- Local Governments (1998–2012) — LEVEL: Local governments
- Budgetary Central Government (2010–11) — LEVEL: Budgetary central government
- Budgetary Central Government (2012–13) — LEVEL: Budgetary central government

### National nomenclature and GFS mapping (selected entries preserved verbatim)
- National Nomenclature — Drop-down menu below C= Cash
- GFS CLASSIFICAT ION ASSIST ANT

Revenue (from Table 2)
- T axes
  - T axes on individuals: Graduated tax
  - C1111:  Taxes on income: Payable by individuals
  - Property tax
  - C1131:  Taxes on property:  Recurrent taxes on immovable property
  - T axes on use of goods & services C114:  Taxes on goods and services
  - Other taxes C116:  Other taxes
- Social contributions C12:  Social contributions [121 + 122]
- Grants
  - Central Government
  - C1331:  Grants from other general government units: Current
  - Other donors C1311:  Grants from foreign governments: Current
- Other revenue
  - C1422:  Other revenue: Sales of goods and services: Administrative fees

Expense (from Table 3)
- Compensation of employees
  - o/w Salaries C211:  Compensation of employees: Wages and salaries
  - o/w Allowances C211:  Compensation of employees: Wages and salaries
  - o/w other C211:  Compensation of employees: Wages and salaries
- Use of goods and services C22:  Purchases of goods and services
- Consumption of fixed capital 23:  Consumption of fixed capital
- Interest C24:  Interest [241 + 242 + 243]
- Subsidies C25:  Subsidies [251 + 252]
- Grants/transfers C2631:  To other general government units: Current
- Social benefits C251:  Subsidies: To public corporations
- Other expense 2821: Other expense: Miscellaneous other expense: Current

Balances and aggregates
- Net operating balance (1 minus 2)
- Gross operating balance (1 minus 2 plus 23)
- Net acquisition of non-financial assets (from Table 4)
  - C31:  Transactions - Net acquisition of nonfinancial assets [311 + 312 + 313 + 314]
- Net lending/borrowing (1 minus 2 minus 31)

Net transactions in financial assets and liabilities (from Table 5)
- Net acquisition of financial assets (from Table 5)
  - Domestic C321:  Transactions - Net acquisition of financial assets :  Domestic [3212 + 3213 + 3214 + 3215
  - Foreign C322:  Transactions - Net acquisition of financial assets :  Foreign [3222 + 3223 + 3224 + 3225 +
- Net incurrence of liabilities (from Table 5)
  - Domestic C331:  Transactions - Net incurrence of liabilities: Domestic [3313 + 3313 + 3314 + 3315 + 3316
  - Foreign C332:  Transactions - Net incurrence of liabilities: Foreign [3322 + 3323 + 3324 + 3325 + 3326 +

### Detailed budgetary central government item mappings (selected extracts)
- Tax revenue
  - 111: Taxes on income, profits, and capital gains [1111 + 1112 + 1113]
  - 11411: General taxes on goods and services: Value-added taxes
  - 1142: Taxes on goods and services: Excises
  - 115: Taxes on international trade and transactions [1151 + 1152 + 1153 + 1154 + 1155 + 115
  - 116: Other taxes
- Expenditure examples with national codes
  - 211101 General staff salaries — 2111: Compensation of employees: Wages and salaries in cash
  - 211102 Contract staff salaries — 2111: Compensation of employees: Wages and salaries in cash
  - 212101 Social Security Contributions — 2121: Compensation of employees: Actual social contributions
  - 213001 Other employer costs - medical expense — 2731: Social benefits: Employer social benefits in cash
  - Use of goods and services examples: 221001 UOG&S - Advertising; 221002 UOG&S - Workshops and seminars; 221008 UOGS - Computer supplies IT  services
  - Consumption of Fixed Capital: 231001 CFC Nonresidential bldgs; 231004 CFC Transport equipments
  - Interest: 241001 Loan interest paid 242: Interest : To residents other than general government; 242001 Interest on treasury bills (domestic)
  - Grants: 262: To international organizations [2621 + 2622]; 263: To other general government units [2631 + 2632]
  - Other expense examples: 281401 Other Exp - Rent 2814: Other expense: Property expense other than interest: Rent; 282101 Other exp - donations 2821: Other expense: Miscellaneous other expense: Current

### Asset acquisition lines (selected)
- 311101 Land 3141A: Transactions - Acquisitions: land
- 31111A: Transactions - Acquisitions: buildings and structures: Dwellings
- 31112A: Transactions - Acquisitions: buildings and structures: Nonresidential buildings
- 31113A: Transactions - Acquisitions: buildings and structures: Other structures
- 3112A: Transactions - Acquisitions: machinery and equipment
- 312302 Intangible assets 3144A: Transactions - Acquisitions: intangible nonproduced assets

### Specific administrative and arrears codes (selected)
- 321103 EXPENDITURE ACCOUNT
- 321605 DOMESTIC ARREARS (BUDGETING)
- 321606 EXTERNAL DEBT REPAYMENT (BUDGETING) 24: Interest [241 + 242 + 243]
- 321608 PENSION ARREARS (BUDGETING) 2731: Social benefits: Employer social benefits in cash
- 321611 Def/Military Pensions arrears (Budgeting) 2731: Social benefits: Employer social benefits in cash
- 321603 SUNDRY DEBTORS

### Tax, fee and other revenue line examples (selected)
- Direct Domestic Taxes
  - 1111: Taxes on income: Payable by individuals
  - 1112: Taxes on income: Payable by corporations and other enterprises
  - 1131: Taxes on property: Recurrent taxes on immovable property
- Indirect Domestic Taxes
  - 1142: Taxes on goods and services: Excises (examples: Cigarettes, Beer, Spirits/Waragi, Soft Drinks)
  - 11411: General taxes on goods and services: Value-added taxes (examples: Electricity, Sugar, Phone Talk Time)
- Fees and Licenses
  - 11451: Taxes on use and permission of goods and services: Motor vehicles taxes
  - 11452: Taxes on use and permission of goods and services: Other
  - 1422: Other revenue: Sales of goods and services: Administrative fees (examples: Passport fees, Migration fees, Transport regulation fees, Company regulation fees)
- Other revenue examples
  - 1412: Other revenue: Property income: Dividends (Dividends)
  - 1411: Other revenue: Property income: Interest (Interest on Project Deposits)
  - 1441: Other revenue: Voluntary transfers other than grants: Current (Others)

*cr17312 - 5. Other Accounts payable*

### Appendix IV. Derivation Table between National and GFSM 2014 Aggregates

### Appendix IV. Derivation Table between National and GFSM 2014 Aggregates

### Uganda’s Budgetary Central Government — Key Aggregates (Billions of Shillings)
- Revenue
  - Total revenue and grants: 7,292.47 (2010/11); 8,526.87 (2012/13)
  - plus: 0.00 (2010/11); 0.00 (2012/13)
  - Revenue according to GFSM 2014: 7,292.47 (2010/11); 8,526.87 (2012/13)

- Expense
  - Total expense: 6,066.30 (2010/11); 7,785.26 (2012/13)
  - minus: 23.28 (2010/11); 112.80 (2012/13)
  - Bad debt: 0.01 (2010/11); 0.00 (2012/13)
  - Gross tax: 23.28 (2010/11); 112.80 (2012/13)
  - Expense according to GFSM 2014: 6,043.02 (2010/11); 7,672.46 (2012/13)

- Net Acquisition of Nonfinancial Assets
  - Net Acquisition of Nonfinancial Assets: 756.81 (2010/11); 216.00 (2012/13)
  - plus: 0.00 (2010/11); 0.00 (2012/13)
  - Net acquisition of nonfinancial assets according to GFSM 2014: 756.81 (2010/11); 216.00 (2012/13)

### Notable derivation observations
- The only explicit adjustments between national aggregates and GFSM 2014 aggregates in the table are:
  - Expense adjustments: minus 23.28 (2010/11) and minus 112.80 (2012/13), with bad debt recorded as 0.01 (2010/11).
  - No adjustments recorded for Revenue or Net Acquisition of Nonfinancial Assets (all zeros).

### Appendix V. Classification Code Changes from the GFSM 2001 to 2014 Update

- The following are new and updated GFSM 2014 classification codes and names (Revenue, Expense, and Net Transactions in Assets and Liabilities accounts; memorandum items excluded).

- REVENUE
  - 1113 Other taxes on income, profits, and capital gains
  - 1135 Capital levies
  - 11414 Taxes on financial and capital transactions
  - 114521 Business and professional licenses
  - 114522 Pollution taxes
  - 114523 Radio and television licenses
  - 114524 Licenses and permits for households
  - 114525 Other taxes on use of goods and on permission to use goods or perform activities not elsewhere classified
  - 14111 Interest from nonresidents
  - 14112 Interest from residents other than general government
  - 14113 Interest from other general government units
  - 14121 Dividends from nonresidents
  - 14122 Dividends from residents
  - 1414 Property income from investment income disbursements
  - 1416 Reinvested earnings on foreign direct investment
  - 144 Transfers not elsewhere classified
  - 1441 Current transfers not elsewhere classified
  - 14411 Subsidies
  - 14412 Other current transfers
  - 1442 Capital transfers not elsewhere classified
  - 145 Premiums, fees, and claims related to nonlife insurance and standardized guarantee schemes
  - 1451 Premiums, fees, and current claims
  - 14511 Premiums
  - 14512 Fees for standardized guarantee schemes
  - 14513 Current claims
  - 1452 Capital claims

- EXPENSE
  - 212 Employers' social contributions
  - 2121 Actual employers’ social contributions
  - 2122 Imputed employers’ social contributions
  - 253 Subsidies to other sectors
  - 273 Employment-related social benefits
  - 2731 Employment-related social benefits in cash
  - 2732 Employment-related social benefits in kind
  - 28111 Dividends to nonresidents
  - 28112 Dividends to residents
  - 2813 Property expense for investment income disbursements
  - 2815 Reinvested earnings on foreign direct investment
  - 282 Transfers not elsewhere classified
  - 2821 Current transfers not elsewhere classified
  - 2822 Capital transfers not elsewhere classified
  - 283 Premiums, fees, and claims related to nonlife insurance and standardized guarantee schemes
  - 2831 Premiums, fees, and current claims
  - 28311 Premiums
  - 28312 Fees for standardized guarantee schemes
  - 28313 Current claims
  - 2832 Capital claims

- NET TRANSACTIONS IN ASSETS AND LIABILITIES
  - 31112 Buildings other than dwellings
  - 31114 Land improvements
  - 31122 Machinery and equipment other than transport equipment
  - 311221 Information, computer, and telecommunications (ICT) equipment
  - 311222 Machinery and equipment not elsewhere classified
  - 311311 Animal resources yielding repeat products
  - 311312 Tree, crop, and plant resources yielding repeat products
  - 31132 Intellectual property products
  - 311321 Research and development
  - 311322 Mineral exploration and evaluation
  - 311323 Computer software and databases
  - 3113231 Computer software
  - 3113232 Databases
  - 311324 Entertainment, literary, and artistic originals
  - 311325 Other intellectual property products
  - 3114 Weapons systems
  - 31225 Military inventories
  - Mineral and energy resources
  - Noncultivated biological resources
  - Water resources
  - Other natural resources
  - Radio spectra
  - Natural resources not elsewhere classified
  - Contracts, leases, and licenses
  - Marketable operating leases
  - Permits to use natural resources
  - Permits to undertake specific activities
  - Entitlement to future goods and services on an exclusive basis
  - Goodwill and marketing assets
  - 3201 Monetary gold and SDRs
  - Debt securities
  - Equity and investment fund shares
  - Equity
  - Investment fund shares or units
  - Insurance, pension, and standardized guarantee schemes
  - 33061 Nonlife insurance technical reserves
  - 33062 Life insurance and annuities entitlements
  - 33063 Pension entitlements
  - 33064 Claims of pension funds on pension manager
  - 33065 Provisions for calls under standardized guarantee schemes

### Appendix VI. List of Officials Met during the Mission

- MOFPED (Ministry of Finance, Planning and Economic Development)
  - Ishmael M. Magona — Commissioner (Ag. Deputy Secretary to Treasury) — Infrastructure and Social Services
  - Maris Wanyera — Commissioner (Ag. Director, Economic Affairs) — Aid Liaison
  - Lawrence Semakula — Ag. Accountant General — Accountant General's Office
  - Laban Mbulamuko — Commissioner — Budget Policy
  - Robert. B. Okudi — Commissioner — Macroeconomic Policy
  - Paul Mwanja — Ag. Assistant Commissioner — Macroeconomic Policy
  - Charles Matovu — Economist — Macroeconomic Policy
  - Martin A. Nsubuga — Ag.Principal Economist — Macroeconomic Policy
  - Oscar Ayebazibwe — Economist — Macroeconomic Policy
  - Elaine Abomwesigwa — Economist — Macroeconomic Policy
  - Joy Gessa — Economist — Macroeconomic Policy
  - Daniel Kigenyi — Principal Accountant — Treasury Services
  - Obadia Turinawe — Economist — Macroeconomic Policy

- BOU (Bank of Uganda)
  - Kenneth Egesa — Director, Statistics — Statistics
  - Pauline Ssentongo — Deputy Director — Statistics
  - Grace A. Tinyinondi — Head, Government Operations Statistics — Statistics

- UBOS (Uganda Bureau of Statistics)
  - John Mayende — Principal Statistician, Head of GFS and Trade Section — GFS and Trade Statistics
  - Lydia N. Niyibizi — Senior Statistician — Macroeconomic Statistics
  - Junda Nuwamanya — Statistician — Macroeconomic Statistics
  - Julius Namara — Statistician — Macroeconomic Statistics
  - Irene B. Nakate — Statistician — Macroeconomic Statistics

*Appendix IV–VI. Derivation Table between National and GFSM 2014 Aggregates*

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_Source: https://www.imf.org/-/media/files/publications/cr/2017/cr17312.pdf_