## 1. Government of Uganda Institutional Structure

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### Executive Summary
- Mission: GFS technical assistance (TA) mission to Kampala, Uganda during March 7-18, 2016, conducted by Brooks Robinson (Regional GFS Advisor, AFRITAC AFE) and Clément Ncuti (IMF GFS Expert).
- Main objectives:
  - Assist authorities in the compilation and dissemination of annual and high-frequency GFS for FYs 2013/14 and 2014/15.
  - Assist in automating source data collection.
  - Address large swings in the Statistical discrepancy and Arrears.
  - Assist in finalizing and beginning to implement a GFS data quality improvement work program (DQIWP).
  - Assess the status of Uganda’s GFSM 2014 implementation plan.
- Key mission findings and requests:
  - Authorities had not completed FY 2014/15 source data collection before the mission and asked the mission to focus on finalizing FY 2013/14 GFS and compiling historical GFS for FYs 2006/07 - 2012/13.
  - Source data collection for EBUs and LGs relied on manual retrieval and transcription from hard-copy annual audited financial reports (AAFRs), which is resource intensive and time consuming.
  - Uganda faces several challenges in fulfilling its GFSM 2014 implementation plan similar to other EAC partner states.
- Evolved key recommendations (high level):
  - Promulgate widely the Public Sector Institutional Table developed to help ensure consistency across macroeconomic statistics.
  - Automate collection of source data for EBUs and LGs first by using data collection templates, and second by incorporating these institutional units into IFMS.
  - Disseminate to the IMF the new GGF statistics nearly finalized for FY 2013/14; disseminate FY 2014/15 GGF statistics as soon as available.
  - For high-frequency Statements of Operations, measure period-by-period differences between tax collections and related remittances to the Uganda Consolidated Fund, and the difference between accrual basis above-the-line Expenditure and cash basis below-the-line Net financing (i.e., the float) to identify reasons for sizeable swings in the Statistical discrepancy.
  - Provide historical data on the stock of Arrears and related repayments to enable assessment of progress on reducing and clearing Arrears.

### The Government of Uganda institutional counts and classification
- Public Sector: 523 institutional units; 96% covered.
- General Government: 491 institutional units; 95% of units covered.
- Central Government: 185 institutional units; 88% of units covered.
  - Budgetary Central Government (BCG): 122 units; 100% covered.
  - Extrabudgetary Units (EBUs): 63 units; 63% covered.
- Social Security Funds (SSFs): 0 units; NA.
- Local Governments: 306 units; 100% covered.
- Public Corporations: 32 institutional units; 100% covered.
  - Nonfinancial Public Corporations (NFPCs): 25 units; 100% covered.
  - Financial Public Corporations (FPCs): 7 units; 100% covered.
- Classification notes:
  - Uganda’s National Social Security Fund (NSSF) is classified as a provident fund and as a financial public corporation; thus Uganda has no social security funds subsector.
  - Uganda has no state governments (consistent with other EAC nations).
- Recommendation:
  - Authorities should conduct annual maintenance of, and promulgate widely, Uganda’s Public Sector Institutional Table to help ensure consistency across all of the nation’s macroeconomic statistics.

### Automating data collection for EBUs and Local Governments (LGs)
- Current practice and problems:
  - Source data for EBUs and LGs are collected by obtaining paper AAFRs and MoFPED staff transcribe fiscal statistics into a GFS database.
  - With 63 EBUs and 306 LGs, this process is labor intensive and time consuming.
  - By contrast, BCG source data are obtained in automated fashion from MoFPED departments, IFMS, and the Bank of Uganda (BoU).
- Practices in other EAC countries:
  - Kenya and Tanzania developed templates to collect annual data for general government institutional units; Kenya plans to collect quarterly GFS source data using templates.
- Legal and institutional enablers in Uganda:
  - The PFM Act passed in March 2015 requires quarterly expenditure commitment reports, half-year financial statements (by February 15 of each financial year), and annual accounts two months after the end of each financial year (articles 16, 21, 49, 50).
  - The PFM Act provides authority to the Accountant General to request quarterly, bi-annual and annual reporting from entities.
- Recommended approach:
  - Authorities should automate the collection of source data for EBUs and LGs:
    - First, by using data collection templates (annually and on a high-frequency basis).
    - Second, by ultimately incorporating these institutional units into IFMS.
  - While employing templates, consider either:
    - Collecting data from the entire population via templates; or
    - Using stratified sample surveys to collect data via templates on a high-frequency basis.

### Compilation of annual general government finance statistics (scope and source data)
- Mission assistance and scope:
  - Provided guidance on compiling a GFS dataset for FY 2013/14 in a GFSM 2014 Statement of Operations framework.
  - Reviewed compilation performed on historical GFS spanning FYs 2006/07 - 2012/13.
  - Developed a brief source data inventory statement (Appendix II) documenting required source data.
  - Authorities expected to compile FY 2014/15 GFS in the near-term and disseminate to the IMF.
- Source data overview for FY 2013/14 (primary sources by account category):
  - Revenue (BCG): TPD, AGD, MDA’s AIA, DARC, BoU, AAFRs for EBUs and LGs.
  - Expense (BCG): IFMS, DMD, BD, DARC, BoU, AAFRs for EBUs and LGs.
  - Net acquisition of nonfinancial assets (NANFA): IFMS, AGD, BD, DARC, BoU, AAFRs for EBUs and LGs.
  - Net acquisition of financial assets (NAFA): BoU, AGD, AAFRs for EBUs and LGs.
  - Net incurrence of liabilities (NIL): BoU, DARC, DMD, AAFRs for EBUs and LGs.
- Adjustments and compilation notes:
  - A few adjustments were made to source data during compilation; specific methodologies described in subsequent sections.
  - Authorities promised to disseminate FY 2014/15 dataset to the IMF once compiled.

### BCG — source data and recording bases
- Revenue:
  - BCG tax and nontax Revenue from TPD were obtained from Uganda Revenue Authority (URA) and reclassified into tax and other revenue categories by MoFPED’s Macroeconomic Policy Department (MEPD) staff.
  - Grants Revenue was obtained from a reconciliation between BoU and MoFPED’s DARC and were not adjusted.
  - Revenue data reflect a cash basis of recording.
- Expense:
  - All BCG Expense data were from IFMS except:
    - Interest data from DMD.
    - Grants to other levels of government data from BD’s legacy releases.
  - Expense data reported with no adjustment, except for expenses financed by external capital grants and loans:
    - Spending on development projects financed from external capital grants and loans of a recurrent nature are apportioned into corresponding Expense items using ratios developed each year from budget projections.
  - All IFMS Expense data reflect an accrual basis of recording.
- NANFA:
  - BCG data on domestically financed NANFA were mainly from IFMS and were reported with no adjustment.
  - NANFA financed from external capital grants and loans were apportioned to NANFA based on annual budget projections.
  - No adjustments were made to BCG NAFA and NIL data, other than exchange rate conversions of selected items.

### EBUs and Local Governments — source and treatment
- All source data for the major economic classifications for EBUs and LGs were obtained from AAFR tabulations and are compiled into GFS without adjustments.
- Process: AAFRs obtained from MoFPED or EBUs; assigned to MEPD officers who transcribe Income Statement and Balance Sheet data into a GFS Database; new period added as a new column; summary sheet aggregates EBUs; cross-checks (e.g., Grants) with other sources for QA.

### Provisional results for FY 2013/14 (provisional until validation)
- Provisional results (Appendix III) remain provisional until Uganda’s Statistical Committee formally validates the institutional table for FY 2013/14 and considers recommended reclassifications, including:
  - Determine appropriate sectoral classification of certain institutional units (e.g., the Uganda Revenue Authority (URA) and embassies).
  - Reclassify BCG transfers to international organizations representing membership dues as Use of goods and services.
  - Reclassify BoU recapitalization from NAFA Loans to investment in equity (Equity and investment fund shares).
  - Reclassify misclassified Grants Expense within EBUs and Local Governments’ as other expense.
- Key provisional FY 2013/14 aggregates:
  - General government Revenue: USH 9,682.7 billion
  - General government Expense: USH 9,178.5 billion
  - Net operating surplus: USH 504.2 billion
  - NANFA: USH 3,233.2 billion
  - Net borrowing position: USH (2,729) billion
  - Net financing: USH (2,556.1) billion (derived from NAFA of USH (4,406.5) billion and NIL of USH ( 1,805.4) billion)
  - Statistical discrepancy: USH 172.9 billion

### Statement of Sources and Uses of Cash (guidance and data basis)
- Guidance provided on compiling a general government Statement of Sources and Uses of Cash for FY 2013/14.
- Data basis:
  - All GFS data on EBUs and LGs are on a cash basis.
  - BCG data reported in the general government Statement of Operations include a mix of cash and accrual data.
  - All expense and domestically financed NANFA statistics drawn from IFMS are on an accrual basis.
  - Revenue and Expense not drawn from IFMS (legacy releases, and apportioned expenses financed from external capital grants and loans), NANFA financed by external capital Grants and Loans, NAFA, and NIL are on a cash basis.
- Mission could not complete compilation due to lack of accurate and comprehensive cash-basis data.
- Mission urged authorities to begin collecting expenditure data on a cash basis from IFMS and crosschecking those data with data on outflows from the Uganda Consolidated Fund’s (UCF).
- Recommendations (general government compilation):
  - Authorities should validate the FY 2013/14 general government finance statistics and disseminate them to the IMF’s Statistics Department.
  - Authorities should finalize compilation of the FY 2014/15 general government finance statistics and disseminate them to the Statistics Department as soon as they are finalized.
  - Authorities should compile general government Statements of Sources and Uses of Cash for FYs 2013/14 and FY 2014/15 and disseminate them to the Statistics Department as soon as they are finalized.

### High-frequency general government finance statistics for BCG
- Uganda has been submitting high-frequency GFS for BCG to the IMF’s African Department; no high-frequency source data yet for EBUs and LGs.
- High-frequency BCG data for FY 2013/14 and FY 2014/15 were available and posted on the MoFPED website.
- Mission found large month-to-month swings in the Statistical discrepancy, but monthly data otherwise seemed to average to annual values.
- Recommendation:
  - Authorities should disseminate to the IMF’s Statistics and African Departments the high frequency GFS BCG data as soon as they are compiled.

### Statistical discrepancy swings — investigation, findings, and recommendations
- Three potential contributors examined:
  1. Tax Revenue timing mismatches:
     - Monthly Taxes (Revenue) reflect taxpayer declarations; remittance timing to the UCF at BoU can lag.
     - Commercial banks may retain tax collections for operational purposes for 48 hours before remitting to the UCF at the BoU.
     - Payments made on the last day of a month may be recorded as Revenue in that month but reflected as a change in Currency and deposits the following month.
  2. Quarterly spending on Grants:
     - Consistently high Grants Expense in the first month of every quarter.
     - Correlations found: Grants Expense and Net Lending/Borrowing (NL/B) correlation = -0.73; NL/B and Statistical discrepancy correlation = 0.52.
     - Grants to EBUs and LGs usually recorded in IFMS at the beginning of each quarter as commitments, not necessarily translating into same-month payments.
  3. Accrual vs cash recording in IFMS:
     - IFMS Expenditure recorded on an accrual (commitment) basis while Revenue and Net Financing items recorded on a cash basis.
     - Timing mismatch between accrual-recorded expenditure commitments and actual cash payments can produce a Statistical discrepancy.
     - Two suggested approaches to measure monthly float (difference between accrual commitments and cash payments):
        - Extract IFMS Expenditure data on a cash basis and compare with IFMS Expenditure on a commitment basis.
        - Compare BoU data on actual spending during the month with IFMS accrual-based Expenditure data.
     - The float could be recorded as a financing item (e.g., Other accounts payable) in the monthly Statement of Operations.
     - Mission computed float for months of FYs 2013/14 and FY 2014/15 but could not establish a strong correlation between the float and the Statistical discrepancy.
- Conclusion: Combination of the examined elements, and potentially other factors, contribute to Statistical discrepancy swings.
- Recommendations (statistical discrepancy):
  - Authorities should keep track of revenue collections in transit and in vaults and make adjustments to the monthly Statement of Operations to match Revenue transactions above the line with the change in Currency and deposits below the line.
  - Authorities should develop estimates of the float (i.e., the difference between expenditure commitments (accrual) and payments (cash)) and make adjustments to the monthly Statement of Operations to match above-the-line Expenditure transactions with below-the-line financing.

### Arrears — definition, measurement, and recent trends
- Authorities’ definition:
  - Transactions commenced during a financial year for which goods or services are delivered but not paid constitute an “unpaid bill.”
  - If “unpaid bills” remain unpaid after the close of the financial year, they become Arrears.
  - Arrears also arise from: (i) unfavorable judicial rulings for which no provisions have been made; and (ii) unpaid pension payments.
- Note: Uganda’s accounting treatment of Arrears is inconsistent with international standards; payments of Arrears are recorded as an Expense, not as a reduction of Other accounts payable.
- Stock of Arrears (preliminary comparison provided by MoFPED for FYs 2013/14 and 2014/15; Table 3) — (In Ugandan Shillings):
  - Reporting units: 115 (Ministries, Agencies, Referral Hospitals, Embassies/Missions)
  - FY 2013/14 total Arrears: 1,232,179,011,870
  - FY 2014/15 total Arrears: 1,108,490,291,820
  - Difference (FY2014/15 minus FY2013/14): (123,688,720,050)
  - Category breakdown:
    - Ministries (23 reporting): FY 2013/14 = 695,310,065,538 ; FY 2014/15 = 738,922,608,346 ; Difference = 43,612,542,808
    - Agencies (41 reporting): FY 2013/14 = 522,981,487,196 ; FY 2014/15 = 363,066,419,473 ; Difference = (159,915,067,723)
    - Referral Hospitals (16 reporting): FY 2013/14 = 12,439,231,581 ; FY 2014/15 = 3,818,090,233 ; Difference = (8,621,141,348)
    - Embassies/Missions (35 reporting): FY 2013/14 = 1,448,227,555 ; FY 2014/15 = 2,683,173,768 ; Difference = 1,234,946,213
- Observations:
  - Stock of Arrears declined by about USH 124 billion between FY 2013/14 and FY 2014/15.
  - Of 115 reporting units, only 31 showed an increase in Arrears from FY 2013/14 to FY 2014/15.
  - Mission could not analyze quarterly Arrears data.
- Recommendation:
  - GOU should improve its accounting treatment of Arrears as Other accounts payable, and treat payment of Arrears as a transaction (reduction) in Other accounts payable.

### Data Quality Improvement Work Program (DQIWP) and GFSM 2014 implementation status
- DQIWP:
  - Uganda developed a DQIWP during a Regional GFS Workshop in November 2015; the mission sought to motivate its evolution.
  - GFS TWG has not finalized the DQIWP and has not begun implementation, despite agreement to do so.
  - Mission emphasized DQIWP Dimensions 2 (Methodological Soundness) and 3 (Accuracy and Reliability) and identified significant room for improvement.
  - Recommendation:
    - Uganda’s GFS TWG should finalize and begin implementation of the DQIWP.
- GFSM 2014 implementation plan (Appendix IV update as of March 2016):
  - Seven of 15 plan components completed; eight remain “in progress”; target dates breached for three components.
  - Two breaches could be resolved by disseminating already compiled GFS.
  - Mission recommends GFS TWG consult and reschedule target date for providing Uganda’s fiscal year Budget in a GFSM 2014 framework.
  - Appendix V update: 10 of 16 recommendations are “In progress.”
  - Recommendation:
    - GFS TWG should monitor the GFSM 2014 implementation plan and outstanding recommendations more closely, and develop a systematic plan for meeting plan target dates and for fulfilling recommendations.

### TA and training requirements
- Compilers do not appear to require TA or training in the near term other than that already planned.
- Exception: As Uganda automates GFS source data collection, data providers (respondents) may require training to complete data collection forms accurately; mission believes current compilers can conduct this training.
- Mission urged that all relevant compilers be permitted to participate in the TA and training opportunities cited.

### Conclusion and key operational challenge
- FY 2014/15 general government finance statistics could not be compiled during the mission; FY 2013/14 GFS compilation nearly complete.
- Complete review and analysis conducted for historical GFS (FYs 2006/7–2012/13) and monthly BCG GFS for FY 2013/14.
- Key challenge: automation of GFS source data collection, especially for EBUs and LGs.
  - Delay in compiling FY 2014/15 GFS was mainly due to labor-intensive manual processing of EBU and LG data.
  - Mission recommended automation via electronic templates and incorporating institutional units into IFMS.

### Mission assessment, Box 1 recommendations, and methodology overview
- Implementation status, mission assessment, and concerns:
  - Mission finding: Uganda is behind the curve on meeting the data collection automation challenge (compared with Kenya and Tanzania).
  - Mission recommendation: Uganda should redouble efforts to fulfill the data collection automation aspect of its GFSM 2014 implementation plan.
  - Mission observation: The mission team is confident that Uganda’s GFS compilers are equal to the challenges ahead.
  - Mission concern: There appears to be a buildup of TA mission recommendations that are not being resolved; the mission team provides 11 new recommendations in this report (reproduced below).
- TA report recommendations (Box 1):
  - Conduct annual maintenance of, and promulgate widely, Uganda’s Public Sector Institutional Table because it can help ensure consistency across all of the nation’s macroeconomic statistics.
  - Automate the collection of source data for EBUs and LGs first by using data collection templates (annually and on a high-frequency basis), and second by ultimately incorporating these institutional units into the IFMS.
  - Authorities should validate the FY 2013/14 general government finance statistics and disseminate them to the IMF’s Statistics Department.
  - Authorities should finalize compilation of the FY 2014/15 general government finance statistics and disseminate them to the Statistics Department as soon as they are finalized.
  - Authorities should compile general government Statements of Sources and Uses of Cash for FYs 2013/14 and FY 2014/15 and disseminate them to the Statistics Department as soon as they are finalized.
  - Authorities should disseminate to the IMF’s Statistics and African Departments the high frequency GFS BCG data as soon as they are compiled.
  - Authorities should keep track of revenue collections in transit and in vaults and make adjustments to the monthly Statement of Operations to match Revenue transactions above the line with the change in Currency and deposits below the line.
  - Authorities should develop estimates of the float (i.e. the difference between expenditure commitments (accrual) and payments (cash)) and make adjustments to the monthly Statement of Operations to match above-the-line Expenditure transactions with below-the-line financing.
  - GOU should improve its accounting treatment of Arrears as Other accounts payable, and treat payment of Arrears as a transaction (reduction) in Other accounts payable.
  - Uganda’s GFS TWG should finalize and begin implementation of the DQIWP.
  - The GFS TWG should monitor the GFSM 2014 implementation plan and outstanding recommendations more closely, and develop a systematic plan for meeting plan target dates and for fulfilling recommendations.
- Methodology overview: compiling GFS for general government:
  - Coverage: General government subsectors covered are budgetary central government (BCG), extrabudgetary units (EBUs), and local governments (LGs). Uganda has no social security funds and no state governments.
  - BCG data sources by major economic classifications:
    - Revenue: MoFPED’s Tax Policy Department (TPD) (Taxes and Nontaxes); Accountant General Department (AGD) (Nontaxes); Reconciliation between The Bank of Uganda (BoU) and MoFPED’s Department of Development Assistance and Regional Cooperation (DARC) (Grants); Selected MDAs (Appropriations in Aid).
    - Expense: Integrated Financial Management and Information System (IFMS) (all categories of Expense); Legacy releases from MoFPED’s Budget Directorate (Grants); MoFPED’s Debt Management Department (DMD) (Interest); Reconciliation between BoU and MoFPED’s DARC (proportions of external project Grants and Loans deemed to be Expense).
    - Net Acquisition of Nonfinancial Assets (NANFA) — Domestic: IFMS, legacy releases, AGD (Disposals); External: reconciliation BoU–DMD/DARC for project Grants and Loans deemed to be nonfinancial assets.
    - Net Acquisition of Financial Assets (NAFA) — Domestic: BoU’s Depository Corporation Survey (DCS), AGD; External: BCG has no external financial assets at this time.
    - Net Incurrence of Liabilities (NIL) — Domestic: BoU’s DCS, MoFPED’s DMD (validation); External: DMD (Loans), BoU (validation), DARC (Loans).
  - BCG compilation adjustments:
    - Revenue: reclassifications of MoFPED’s TPD data on Taxes and Nontaxes are incorporated.
    - Expense: no adjustments to IFMS source data; BoU–MoFPED reconciliation values are added for proportions of external inflows deemed Expense.
    - NANFA, NAFA, NIL: no adjustments to source data.
    - Exchange rate conversions applied for certain Statement of Operations categories.
    - Quality assurance: use other sources to compare with primary source data.
  - EBUs and LGs: source data from AAFRs transcribed into GFS database; consolidation procedures to eliminate intra-general-government flows described.

### Key figures: FY 2013/14 consolidated general government finance statistics (billion USH)
- Revenue (Total General Government): 9,682.7
  - Central Government BCG: 8,870.4
  - EBUs: 1,040.0
  - Consolidation (BCG–EBUs): (501.9)
  - Total Central Government: 9,408.5
  - Local Government: 2,245.2
  - Consolidation (Central–Local): (1,971.0)
  - Taxes (Total General Government): 8,062.5 (BCG Taxes: 8,031.0; Local: 31.5)
  - Grants (Total General Government): 933.6 (BCG Grants: 702.5; EBUs: 539.7)
  - Other revenue (Total General Government): 686.6 (BCG Other revenue: 136.9; EBUs: 500.3; Local: 49.4)
- Expenses (Total General Government): 9,178.5
  - Central Government BCG: 8,582.9
  - EBUs: 1,026.3
  - Consolidation (BCG–EBUs): (501.9)
  - Total Central Government: 9,107.3
  - Local Government: 2,042.1
  - Consolidation (Central–Local): (1,971.0)
  - Compensation of employees (Total General Government): 3,040.8 (BCG 1,516.3; EBUs 395.5; Local 1,129.0)
  - Use of goods and services (Total General Government): 3,119.7 (BCG 2,159.7; EBUs 470.7; Local 489.4)
  - Interest (Total General Government): 970.3 (BCG Interest: 970.1)
  - Grants (Total General Government): 1,222.6 (BCG Grants: 3,257.4; EBUs: 33.3; Local: 404.9)
  - Social benefits (Total General Government): 232.0 (BCG 228.7; Local 3.2)
  - Other expense (Total General Government): 491.6 (BCG 415.0; EBUs 64.2; Local 12.4)
- Net operating balance (1-2) (Total General Government): 504.2
  - BCG: 287.5; EBUs: 13.7; Total Central Government: 301.2; Local Government: 203.0
- Net acquisition of nonfinancial assets (4) (Total General Government): 3,233.2
  - BCG: 3,059.9; EBUs: 23.1; Total Central Government: 3,083.0; Local Government: 150.3
- Net lending (+) / borrowing (-) (3-4) (Total General Government): (2,729.0)
  - Central Government: (2,781.8) (BCG (2,772.4); EBUs (9.3))
  - Local Government: 52.8
- STATISTICAL DISCREPANCY (3-1) (Total General Government): 172.9
  - Central Government: 214.5 (BCG 274.9; EBUs (60.4)); Local Government: (41.6)
- Net Financing (4-5) (Total General Government): (2,556.1)
  - Central Government: (2,567.3) (BCG (2,497.6); EBUs (69.7)); Local Government: 11.2
- Net acquisition of financial assets (Total General Government): (4,406.5)
  - Central Government: (4,455.4) (BCG (4,433.9); EBUs (21.5)); Local Government: 48.9
  - Currency and deposits (Total General Government): (4,475.4) (BCG (4,453.3); EBUs (22.1))
  - Loans (Total General Government): 12.0 (BCG 19.4; EBUs (7.4))
  - Other accounts receivable (Total General Government): 9.5
- Net incurrence of liabilities (Total General Government): (1,850.4)
  - Central Government: (1,888.1) (BCG (1,936.3); EBUs 48.2); Local Government: 37.7
  - Debt securities (Total General Government): (2,880.4) (BCG (2,880.4))
  - Loans (Total General Government): 885.8 (BCG 886.9; EBUs (1.1))
  - Other accounts payable (Total General Government): 108.6 (BCG 57.1; EBUs 51.5)

### Selected GFSM 2014 implementation plan status (as of March 2016) — notable items
- Overall project objective: To compile and publish monthly, quarterly and annual general government finance statics according to GFSM 2014; dissemination to the public, the EAC Secretariat, and publication in the IFS and GFSY. Target date: 2017.
- Notable outputs, target dates, and implementation status:
  - 1. Conduct regular GFS TWG meetings/workshops. Target: September 2014. Implementation status: Completed.
  - 2. Finalize and maintain Public Sector Institutional Table. Target: December 2014. Implementation status: Completed; updated annually.
  - 3. Link COA classifications to GFSM economic classifications. Target: December 2014. Implementation status: Completed (mapped to GFSM 2001; recommendations to align with GFSM 2014).
  - 5. Full roll-out of IFMS for budget execution / electronic interfacing for GFSM 2014 reporting. Target for LGs and EBUs: June 2016. Implementation status: In progress. All central government votes on IFMS apart from tertiary institutions and 9 referral hospitals; 71 local governments in IFMS; 8 donor projects in IFMS; authorities provided no definitive completion plans.
  - 6. Incorporate COA-GFS bridge table into IFMS and automate report compilation. Target: June 2015. Implementation status: Completed.
  - 8. Disseminate GFSM 2014-compliant BCG data for FY2009 thru FY 2012/13. Target: December 2014. Implementation status: Completed. GFS for BCG FYs 2009–2015 disseminated to IMF STA as Statements of Operation.
  - 9. Disseminate GFSM 2014-compliant central government data (BCG and EBUs) for FY 2014. Target: December 2015. Implementation status: In progress.
  - 11. Expand coverage of GFS (flows) to include all general government units. Target: June 2016 on a cash basis and June 2017 including modified cash data. Implementation status: In progress.
  - 12. Include stocks of financial assets and liabilities in the GFS for BCG at nominal value (June 2016) and at market value (June 2017). Implementation status: In progress.
  - 15. Compile and disseminate public debt statistics of the public sector quarterly. Target: December 2016. Implementation status: Completed.

### Appendix V — Status of Recommendations from a July 2014 TA Report and a November 2015 TA Visits (summary as of March 2016)
- The appendix lists 16 recommendations with implementation statuses reported as of March 2016.
- Institutional table and GFS coverage:
  - Recommendation 1 — Update, approve, and promulgate Public Sector Institutions Table: Status: In progress.
  - Recommendation 2 — Expand GFS BCG coverage to be consistent with institutions table: Status: Completed. "GFS for BCG now cover the 122 units identified by Uganda’s Public Sector Institutional Table."
  - Recommendation 9 — Correct misclassifications in GFS BCG data identified during the July 2014 TA mission: Status: Completed.
- Financial balance sheets, PSDS, and public corporations' debt:
  - Recommendation 3 — Include financial balance sheet data with IFS and GFSY submission: Status: Completed.
  - Recommendation 7 — Include data on Currency and deposits and Insurance, pensions, and standardized guarantee schemes in public sector debt statistics: Status: In progress.
  - Recommendation 8 — Begin collecting data on public corporations’ debt: Status: In progress.
- Local government, extrabudgetary units (EBUs), and automation:
  - Recommendation 4 — Automate processing of Local Government (LG) GFS data collection: Status: In progress. "Currently, 71 District Governments are reporting in IFMS."
  - Recommendation 5 — Use the new Public Finance Bill to institute regular and high-frequency fiscal reporting by EBUs: Status: In progress.
  - Recommendation 6 — Include EBU data in GFS submissions to the IMF (IFS and GFSY): Status: In progress.
  - Recommendation 12 — Undertake efforts to expand further EBU coverage: Status: See item 2 above.
- Statistical discrepancies, statements of cash flows, and quality programs:
  - Recommendation 13 — Undertake efforts to reduce Statistical discrepancies for EBUs and Local Government; detail for Local Government Net financing should be provided: Status: In progress.
  - Recommendation 14 — Produce a GFSM 2014 Statement of Sources and Uses of Cash: Status: In progress.
  - Recommendation 15 — GFS TWG should finalize and implement a data quality improvement work program (DQIWP): Status: In progress.
- Classification, collaboration, and public outreach:
  - Recommendation 10 — Develop a database of recent projects and programs that can be classified successfully into a GFSM 2014 COFOG framework: Status: This effort is not required.
  - Recommendation 11 — Increase collaboration between MOFPED and UBOS GFS compilers: Status: To be undertaken by Uganda’s GFS TWG.
  - Recommendation 16 — Authorities should collaborate with the EAC in developing an information campaign in Uganda to alert the public to the adoption of a new government finance statistics standard: Status: In progress. Plan to organize a public event during November of 2016.

*cr17313 - 1. Government of Uganda Institutional Structure; IMF mission report materials (March 7-18, 2016).*

### 1. Government of Uganda Institutional Structure ......................................................................8

### 1. Government of Uganda Institutional Structure

### Executive Summary
- Mission: GFS technical assistance (TA) mission to Kampala, Uganda during March 7-18, 2016, conducted by Brooks Robinson (Regional GFS Advisor, AFRITAC AFE) and Clément Ncuti (IMF GFS Expert).
- Main objectives:
  - Assist authorities in the compilation and dissemination of annual and high-frequency GFS for FYs 2013/14 and 2014/15.
  - Assist in automating source data collection.
  - Address large swings in the Statistical discrepancy and Arrears.
  - Assist in finalizing and beginning to implement a GFS data quality improvement work program (DQIWP).
  - Assess the status of Uganda’s GFSM 2014 implementation plan.
- Key mission findings and requests:
  - Authorities had not completed FY 2014/15 source data collection before the mission and asked the mission to focus on finalizing FY 2013/14 GFS and compiling historical GFS for FYs 2006/07 - 2012/13.
  - Source data collection for EBUs and LGs relied on manual retrieval and transcription from hard-copy annual audited financial reports (AAFRs), which is resource intensive and time consuming.
  - Uganda faces several challenges in fulfilling its GFSM 2014 implementation plan similar to other EAC partner states.
- Evolved key recommendations:
  - Promulgate widely the Public Sector Institutional Table developed to help ensure consistency across macroeconomic statistics.
  - Automate collection of source data for EBUs and LGs first by using data collection templates, and second by incorporating these institutional units into IFMS.
  - Disseminate to the IMF the new GGF statistics nearly finalized for FY 2013/14; disseminate FY 2014/15 GGF statistics as soon as available.
  - For high-frequency Statements of Operations, measure period-by-period differences between tax collections and related remittances to the Uganda Consolidated Fund, and the difference between accrual basis above-the-line Expenditure and cash basis below-the-line Net financing (i.e., the float) to identify reasons for sizeable swings in the Statistical discrepancy.
  - Provide historical data on the stock of Arrears and related repayments to enable assessment of progress on reducing and clearing Arrears.

*Mission team transmits appreciation to authorities for hospitality and cooperation during the mission.*

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### Introduction
- Mission context:
  - Conducted in response to a request from Ugandan authorities and in consultation with the IMF’s African Department.
  - Part of AFE’s collaboration with the East African Community (EAC) Secretariat.
  - Supported alignment of compilation and dissemination of GFS and public sector debt statistics (PSDS) with international guidelines.
- Planned tasks:
  - Assist compilation and dissemination of high-frequency GFS.
  - Assist planning for automating source data collection.
  - Engage on IMF African Department concerns: large Statistical discrepancy swings and Arrears.
  - Assist in finalizing a GFS DQIWP.
  - Assess status of GFSM 2014 implementation plan.
  - Fulfill authorities’ requests for TA.

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### The Government of Uganda Institutional Structure
- Overall counts and classification (Table 1, Source: Mission Team):
  - Public Sector: 523 institutional units; 96% covered.
  - General Government: 491 institutional units; 95% of units covered.
  - Central Government: 185 institutional units; 88% of units covered.
    - Budgetary Central Government (BCG): 122 units; 100% covered.
    - Extrabudgetary Units (EBUs): 63 units; 63% covered.
  - Social Security Funds (SSFs): 0 units; NA.
  - Local Governments: 306 units; 100% covered.
  - Public Corporations: 32 institutional units; 100% covered.
    - Nonfinancial Public Corporations (NFPCs): 25 units; 100% covered.
    - Financial Public Corporations (FPCs): 7 units; 100% covered.
- Classification notes:
  - Uganda’s National Social Security Fund (NSSF) is classified as a provident fund and as a financial public corporation; thus Uganda has no social security funds subsector.
  - Uganda has no state governments (consistent with other EAC nations).
- Recommendation:
  - Authorities should conduct annual maintenance of, and promulgate widely, Uganda’s Public Sector Institutional Table to help ensure consistency across all of the nation’s macroeconomic statistics.

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### Automating Data Collection for EBUs and Local Governments
- Current practice and problems:
  - Source data for EBUs and LGs are collected by obtaining paper AAFRs and MoFPED staff transcribe fiscal statistics into a GFS database.
  - With 63 EBUs and 306 LGs, this process is labor intensive and time consuming.
  - By contrast, BCG source data are obtained in automated fashion from MoFPED departments, IFMS, and the Bank of Uganda (BoU).
- Practices in other EAC countries:
  - Kenya and Tanzania developed templates to collect annual data for general government institutional units; Kenya plans to collect quarterly GFS source data using templates.
- Legal and institutional enablers in Uganda:
  - The PFM Act passed in March 2015 requires quarterly expenditure commitment reports, half-year financial statements (by February 15 of each financial year), and annual accounts two months after the end of each financial year (articles 16, 21, 49, 50).
  - The PFM Act provides authority to the Accountant General to request quarterly, bi-annual and annual reporting from entities.
- Recommended approach:
  - Authorities should automate the collection of source data for EBUs and LGs:
    - First, by using data collection templates (annually and on a high-frequency basis).
    - Second, by ultimately incorporating these institutional units into IFMS.
  - While employing templates, consider either:
    - Collecting data from the entire population via templates; or
    - Using stratified sample surveys to collect data via templates on a high-frequency basis.

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### Compilation of Annual General Government Finance Statistics
- Mission assistance and scope:
  - Provided guidance on compiling a GFS dataset for FY 2013/14 in a GFSM 2014 Statement of Operations framework.
  - Reviewed compilation performed on historical GFS spanning FYs 2006/07 - 2012/13.
  - Developed a brief source data inventory statement (Appendix II) documenting required source data.
  - Authorities expected to compile FY 2014/15 GFS in the near-term and disseminate to the IMF.
- Source data overview for FY 2013/14 (Table 2, Source: Mission team):
  - Account categories and primary source data:
    - Revenue (BCG): TPD, AGD, MDA’s AIA, DARC, BoU, AAFRs for EBUs and LGs.
    - Expense (BCG): IFMS, DMD, BD, DARC, BoU, AAFRs for EBUs and LGs.
    - Net acquisition of nonfinancial assets (NANFA): IFMS, AGD, BD, DARC, BoU, AAFRs for EBUs and LGs.
    - Net acquisition of financial assets (NAFA): BoU, AGD, AAFRs for EBUs and LGs.
    - Net incurrence of liabilities (NIL): BoU, DARC, DMD, AAFRs for EBUs and LGs.
  - Full-form acronyms: AAFR, AGD, AIA, BD, BoU, DARC, DMD, IFMS, MDA’s, TPD (as provided in source).
- Adjustments and compilation notes:
  - A few adjustments were made to source data during compilation; specific methodologies described in subsequent sections (source text).
  - Authorities promised to disseminate FY 2014/15 dataset to the IMF once compiled.

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### BCG (Budgetary Central Government) — Source Data and Recording Bases
- Revenue:
  - BCG tax and nontax Revenue from TPD were obtained from Uganda Revenue Authority (URA) and reclassified into tax and other revenue categories by MoFPED’s Macroeconomic Policy Department (MEPD) staff.
  - Grants Revenue was obtained from a reconciliation between BoU and MoFPED’s DARC and were not adjusted.
  - Revenue data reflect a cash basis of recording.
- Expense:
  - All BCG Expense data were from IFMS except:
    - Interest data from DMD.
    - Grants to other levels of government data from BD’s legacy releases.
  - Expense data reported with no adjustment, except for expenses financed by external capital grants and loans:
    - Spending on development projects financed from external capital grants and loans of a recurrent nature are apportioned into corresponding Expense items using ratios developed each year from budget projections.
  - All IFMS Expense data reflect an accrual basis of recording.

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*cr17313 - 1. Government of Uganda Institutional Structure; IMF mission report materials (March 7-18, 2016).*

### 18. BCG data on domestically financed NANFA were mainly from IFMS and were

### 18. BCG data on domestically financed NANFA were mainly from IFMS and were

### Data sources and adjustments
- BCG data on domestically financed NANFA were mainly from IFMS and were reported with no adjustment.
- Data on NANFA financed from external capital grants and loans were obtained as a proportion of total inflows of external capital grants and loans that are apportioned to NANFA based on annual budget projections.
- No adjustments were made to BCG NAFA and NIL data, other than exchange rate conversions of selected items.

### EBUs and Local Governments (LGs)
- All source data for the major economic classifications for EBUs and LGs were obtained from AAFR tabulations and are compiled into GFS without adjustments.

### Provisional results for FY 2013/14
- Provisional results (Appendix III) remain provisional until Uganda’s Statistical Committee formally validates the institutional table for FY 2013/14 and considers recommended reclassifications, including:
  - Determine the appropriate sectoral classification of certain institutional units (e.g., the Uganda Revenue Authority (URA) and embassies).
  - Reclassify BCG transfers to international organizations representing membership dues as Use of goods and services.
  - Reclassify BoU recapitalization from NAFA Loans to investment in equity (Equity and investment fund shares).
  - Reclassify misclassified Grants Expense within EBUs and Local Governments’ as other expense.
- Key provisional FY 2013/14 aggregates:
  - General government Revenue: USH 9,682.7 billion
  - General government Expense: USH 9,178.5 billion
  - Net operating surplus: USH 504.2 billion
  - NANFA: USH 3,233.2 billion
  - Net borrowing position: USH (2,729) billion
  - Net financing: USH (2,556.1) billion (derived from NAFA of USH (4,406.5) billion and NIL of USH ( 1,805.4) billion)
  - Statistical discrepancy: USH 172.9 billion

### Statement of Sources and Uses of Cash
- Guidance provided on compiling a general government Statement of Sources and Uses of Cash for FY 2013/14.
- Data basis:
  - All GFS data on EBUs and LGs are on a cash basis.
  - BCG data reported in the general government Statement of Operations include a mix of cash and accrual data.
  - All expense and domestically financed NANFA statistics drawn from IFMS are on an accrual basis.
  - Revenue and Expense not drawn from IFMS (legacy releases, and apportioned expenses financed from external capital grants and loans), NANFA financed by external capital Grants and Loans, NAFA, and NIL are on a cash basis.
- Mission could not complete compilation due to lack of accurate and comprehensive cash-basis data.
- Mission urged authorities to begin collecting expenditure data on a cash basis from IFMS and crosschecking those data with data on outflows from the Uganda Consolidated Fund’s (UCF).

Recommendations (general government compilation):
- Authorities should validate the FY 2013/14 general government finance statistics and disseminate them to the IMF’s Statistics Department.
- Authorities should finalize compilation of the FY 2014/15 general government finance statistics and disseminate them to the Statistics Department as soon as they are finalized.
- Authorities should compile general government Statements of Sources and Uses of Cash for FYs 2013/14 and FY 2014/15 and disseminate them to the Statistics Department as soon as they are finalized.

### High-frequency general government finance statistics for BCG
- Uganda has been submitting high-frequency GFS for BCG to the IMF’s African Department; no high-frequency source data yet for EBUs and LGs.
- High-frequency BCG data for FY 2013/14 and FY 2014/15 were available and posted on the MoFPED website.
- Mission found large month-to-month swings in the Statistical discrepancy, but monthly data otherwise seemed to average to annual values.
- Recommendation:
  - Authorities should disseminate to the IMF’s Statistics and African Departments the high frequency GFS BCG data as soon as they are compiled.

### Statistical discrepancy swings — investigation and findings
- Three potential contributors examined:
  1. Tax Revenue timing mismatches:
     - Monthly Taxes (Revenue) reflect taxpayer declarations; remittance timing to the UCF at BoU can lag.
     - Commercial banks may retain tax collections for operational purposes for 48 hours before remitting to the UCF at the BoU.
     - Payments made on the last day of a month may be recorded as Revenue in that month but reflected as a change in Currency and deposits the following month.
  2. Quarterly spending on Grants:
     - Consistently high Grants Expense in the first month of every quarter.
     - Correlations found: Grants Expense and Net Lending/Borrowing (NL/B) correlation = -0.73; NL/B and Statistical discrepancy correlation = 0.52.
     - Grants to EBUs and LGs usually recorded in IFMS at the beginning of each quarter as commitments, not necessarily translating into same-month payments.
  3. Accrual vs cash recording in IFMS:
     - IFMS Expenditure recorded on an accrual (commitment) basis while Revenue and Net Financing items recorded on a cash basis.
     - Timing mismatch between accrual-recorded expenditure commitments and actual cash payments can produce a Statistical discrepancy.
     - Two suggested approaches to measure monthly float (difference between accrual commitments and cash payments):
        - Extract IFMS Expenditure data on a cash basis and compare with IFMS Expenditure on a commitment basis.
        - Compare BoU data on actual spending during the month with IFMS accrual-based Expenditure data.
     - The float could be recorded as a financing item (e.g., Other accounts payable) in the monthly Statement of Operations.
     - Mission computed float for months of FYs 2013/14 and FY 2014/15 but could not establish a strong correlation between the float and the Statistical discrepancy.
- Conclusion: Combination of the examined elements, and potentially other factors, contribute to Statistical discrepancy swings.

Recommendations (statistical discrepancy):
- Authorities should keep track of revenue collections in transit and in vaults and make adjustments to the monthly Statement of Operations to match Revenue transactions above the line with the change in Currency and deposits below the line.
- Authorities should develop estimates of the float (i.e., the difference between expenditure commitments (accrual) and payments (cash)) and make adjustments to the monthly Statement of Operations to match above-the-line Expenditure transactions with below-the-line financing.

### Arrears — definition, measurement, and recent trends
- Authorities’ definition:
  - Transactions commenced during a financial year for which goods or services are delivered but not paid constitute an “unpaid bill.”
  - If “unpaid bills” remain unpaid after the close of the financial year, they become Arrears.
  - Arrears also arise from: (i) unfavorable judicial rulings for which no provisions have been made; and (ii) unpaid pension payments.
- Note: Uganda’s accounting treatment of Arrears is inconsistent with international standards; payments of Arrears are recorded as an Expense, not as a reduction of Other accounts payable.
- Stock of Arrears (preliminary comparison provided by MoFPED for FYs 2013/14 and 2014/15; Table 3):
  - Reporting units: 115 (Ministries, Agencies, Referral Hospitals, Embassies/Missions)
  - FY 2013/14 total Arrears: 1,232,179,011,870 (In Ugandan Shillings)
  - FY 2014/15 total Arrears: 1,108,490,291,820 (In Ugandan Shillings)
  - Difference (FY2014/15 minus FY2013/14): (123,688,720,050) (In Ugandan Shillings)
  - Category breakdown (in Ugandan Shillings):
    - Ministries (23 reporting): FY 2013/14 = 695,310,065,538 ; FY 2014/15 = 738,922,608,346 ; Difference = 43,612,542,808
    - Agencies (41 reporting): FY 2013/14 = 522,981,487,196 ; FY 2014/15 = 363,066,419,473 ; Difference = (159,915,067,723)
    - Referral Hospitals (16 reporting): FY 2013/14 = 12,439,231,581 ; FY 2014/15 = 3,818,090,233 ; Difference = (8,621,141,348)
    - Embassies/Missions (35 reporting): FY 2013/14 = 1,448,227,555 ; FY 2014/15 = 2,683,173,768 ; Difference = 1,234,946,213
- Observations:
  - Stock of Arrears declined by about USH 124 billion between FY 2013/14 and FY 2014/15.
  - Of 115 reporting units, only 31 showed an increase in Arrears from FY 2013/14 to FY 2014/15.
  - Mission could not analyze quarterly Arrears data.
- Recommendation:
  - GOU should improve its accounting treatment of Arrears as Other accounts payable, and treat payment of Arrears as a transaction (reduction) in Other accounts payable.

### Data Quality Improvement Work Program (DQIWP)
- Uganda developed a DQIWP during a Regional GFS Workshop in November 2015; the mission sought to motivate its evolution.
- GFS TWG has not finalized the DQIWP and has not begun implementation, despite agreement to do so.
- Mission emphasized DQIWP Dimensions 2 (Methodological Soundness) and 3 (Accuracy and Reliability) and identified significant room for improvement.
- Recommendation:
  - Uganda’s GFS TWG should finalize and begin implementation of the DQIWP.

### Status of GFSM 2014 implementation plan
- Appendix IV update (as of March 2016): Seven of 15 plan components completed; eight remain “in progress”; target dates breached for three components.
- Two breaches could be resolved by disseminating already compiled GFS.
- Mission recommends GFS TWG consult and reschedule target date for providing Uganda’s fiscal year Budget in a GFSM 2014 framework.
- Appendix V update: 10 of 16 recommendations are “In progress.”
- Recommendation:
  - GFS TWG should monitor the GFSM 2014 implementation plan and outstanding recommendations more closely, and develop a systematic plan for meeting plan target dates and for fulfilling recommendations.

### Uganda’s TA and training requirements
- Compilers do not appear to require TA or training in the near term other than that already planned (Table 4).
- Exception: As Uganda automates GFS source data collection, data providers (respondents) may require training to complete data collection forms accurately; mission believes current compilers can conduct this training.
- Mission urged that all relevant compilers be permitted to participate in the TA and training opportunities cited.

### Conclusion and key operational challenge
- FY 2014/15 general government finance statistics could not be compiled during the mission; FY 2013/14 GFS compilation nearly complete.
- Complete review and analysis conducted for historical GFS (FYs 2006/7–2012/13) and monthly BCG GFS for FY 2013/14.
- Key challenge: automation of GFS source data collection, especially for EBUs and LGs.
  - Delay in compiling FY 2014/15 GFS was mainly due to labor-intensive manual processing of EBU and LG data.
  - Mission recommended automation via electronic templates and incorporating institutional units into IFMS.

*Source: IMF mission team report (cr17313 - 18. BCG data on domestically financed NANFA were mainly from IFMS and were).*

### 44. Given that Uganda is behind the curve on meeting the data collection automation

### cr17313 - 44. Given that Uganda is behind the curve on meeting the data collection automation

### Implementation status, mission assessment, and concerns
- Mission finding: Uganda is behind the curve on meeting the data collection automation challenge (compared with Kenya and Tanzania).
- Mission recommendation: Uganda should redouble efforts to fulfill the data collection automation aspect of its GFSM 2014 implementation plan.
- Mission observation: The mission team is confident that Uganda’s GFS compilers are equal to the challenges ahead.
- Mission concern: There appears to be a buildup of TA mission recommendations that are not being resolved; the mission team provides 11 new recommendations in this report (reproduced in Box 1).

### TA report recommendations (Box 1)
- Conduct annual maintenance of, and promulgate widely, Uganda’s Public Sector Institutional Table because it can help ensure consistency across all of the nation’s macroeconomic statistics.
- Automate the collection of source data for EBUs and LGs first by using data collection templates (annually and on a high-frequency basis), and second by ultimately incorporating these institutional units into the IFMS.
- Authorities should validate the FY 2013/14 general government finance statistics and disseminate them to the IMF’s Statistics Department.
- Authorities should finalize compilation of the FY 2014/15 general government finance statistics and disseminate them to the Statistics Department as soon as they are finalized.
- Authorities should compile general government Statements of Sources and Uses of Cash for FYs 2013/14 and FY 2014/15 and disseminate them to the Statistics Department as soon as they are finalized.
- Authorities should disseminate to the IMF’s Statistics and African Departments the high frequency GFS BCG data as soon as they are compiled.
- Authorities should keep track of revenue collections in transit and in vaults and make adjustments to the monthly Statement of Operations to match Revenue transactions above the line with the change in Currency and deposits below the line.
- Authorities should develop estimates of the float (i.e. the difference between expenditure commitments (accrual) and payments (cash)) and make adjustments to the monthly Statement of Operations to match above-the-line Expenditure transactions with below-the-line financing.
- GOU should improve its accounting treatment of Arrears as Other accounts payable, and treat payment of Arrears as a transaction (reduction) in Other accounts payable.
- Uganda’s GFS TWG should finalize and begin implementation of the DQIWP.
- The GFS TWG should monitor the GFSM 2014 implementation plan and outstanding recommendations more closely, and develop a systematic plan for meeting plan target dates and for fulfilling recommendations.

### Methodology overview: compiling GFS for general government
- Coverage: General government subsectors covered are budgetary central government (BCG), extrabudgetary units (EBUs), and local governments (LGs). Uganda has no social security funds and no state governments.
- BCG data sources by major economic classifications:
  - Revenue: MoFPED’s Tax Policy Department (TPD) (Taxes and Nontaxes); Accountant General Department (AGD) (Nontaxes); Reconciliation between The Bank of Uganda (BoU) and MoFPED’s Department of Development Assistance and Regional Cooperation (DARC) (Grants); Selected MDAs (Appropriations in Aid).
  - Expense: Integrated Financial Management and Information System (IFMS) (all categories of Expense); Legacy releases from MoFPED’s Budget Directorate (Grants); MoFPED’s Debt Management Department (DMD) (Interest); Reconciliation between BoU and MoFPED’s DARC (proportions of external project Grants and Loans deemed to be Expense).
  - Net Acquisition of Nonfinancial Assets (NANFA) — Domestic: IFMS, legacy releases, AGD (Disposals); External: reconciliation BoU–DMD/DARC for project Grants and Loans deemed to be nonfinancial assets.
  - Net Acquisition of Financial Assets (NAFA) — Domestic: BoU’s Depository Corporation Survey (DCS), AGD; External: BCG has no external financial assets at this time.
  - Net Incurrence of Liabilities (NIL) — Domestic: BoU’s DCS, MoFPED’s DMD (validation); External: DMD (Loans), BoU (validation), DARC (Loans).
- BCG compilation adjustments:
  - Revenue: reclassifications of MoFPED’s TPD data on Taxes and Nontaxes are incorporated.
  - Expense: no adjustments to IFMS source data; BoU–MoFPED reconciliation values are added for proportions of external inflows deemed Expense.
  - NANFA, NAFA, NIL: no adjustments to source data.
  - Exchange rate conversions applied for certain Statement of Operations categories.
  - Quality assurance: use other sources to compare with primary source data.
- EBUs:
  - Source data: annual audited financial reports (AAFRs) for Revenue, Expense, NANFA, NAFA and NIL.
  - Process: AAFRs obtained from MoFPED or EBUs; assigned to MEPD officers who transcribe Income Statement and Balance Sheet data into a GFS Database; new period added as a new column; summary sheet aggregates EBUs; cross-checks (e.g., Grants) with other sources for QA.
- LGs:
  - Data sources and processes are the same as for EBUs.
- Consolidation to prepare general government GFS:
  - Compile Statements of Operations for BCG, EBUs, LGs into a General Government Database.
  - Consolidate central government (BCG and EBUs) by identifying and eliminating corresponding Revenue and Expense flows for Grants between BCGs and EBUs.
  - Consolidate central government with LGs by identifying and eliminating Revenue and Expense flows for Grants between central government and LGs.

### Key figures: FY 2013/14 consolidated general government finance statistics (billion USH)
- Revenue (Total General Government): 9,682.7
  - Central Government BCG: 8,870.4
  - EBUs: 1,040.0
  - Consolidation (BCG–EBUs): (501.9)
  - Total Central Government: 9,408.5
  - Local Government: 2,245.2
  - Consolidation (Central–Local): (1,971.0)
  - Taxes (Total General Government): 8,062.5 (BCG Taxes: 8,031.0; Local: 31.5)
  - Grants (Total General Government): 933.6 (BCG Grants: 702.5; EBUs: 539.7; consolidations shown in table)
  - Other revenue (Total General Government): 686.6 (BCG Other revenue: 136.9; EBUs: 500.3; Local: 49.4)
- Expenses (Total General Government): 9,178.5
  - Central Government BCG: 8,582.9
  - EBUs: 1,026.3
  - Consolidation (BCG–EBUs): (501.9)
  - Total Central Government: 9,107.3
  - Local Government: 2,042.1
  - Consolidation (Central–Local): (1,971.0)
  - Compensation of employees (Total General Government): 3,040.8 (BCG 1,516.3; EBUs 395.5; Local 1,129.0)
  - Use of goods and services (Total General Government): 3,119.7 (BCG 2,159.7; EBUs 470.7; Local 489.4)
  - Interest (Total General Government): 970.3 (BCG Interest: 970.1)
  - Grants (Total General Government): 1,222.6 (BCG Grants: 3,257.4; EBUs: 33.3; Local: 404.9; consolidation amounts shown)
  - Social benefits (Total General Government): 232.0 (BCG 228.7; Local 3.2)
  - Other expense (Total General Government): 491.6 (BCG 415.0; EBUs 64.2; Local 12.4)
- Net operating balance (1-2) (Total General Government): 504.2
  - BCG: 287.5; EBUs: 13.7; Total Central Government: 301.2; Local Government: 203.0
- Net acquisition of nonfinancial assets (4) (Total General Government): 3,233.2
  - BCG: 3,059.9; EBUs: 23.1; Total Central Government: 3,083.0; Local Government: 150.3
- Net lending (+) / borrowing (-) (3-4) (Total General Government): (2,729.0)
  - Central Government: (2,781.8) (BCG (2,772.4); EBUs (9.3))
  - Local Government: 52.8
- STATISTICAL DISCREPANCY (3-1) (Total General Government): 172.9
  - Central Government: 214.5 (BCG 274.9; EBUs (60.4)); Local Government: (41.6)
- Net Financing (4-5) (Total General Government): (2,556.1)
  - Central Government: (2,567.3) (BCG (2,497.6); EBUs (69.7)); Local Government: 11.2
- Net acquisition of financial assets (Total General Government): (4,406.5)
  - Central Government: (4,455.4) (BCG (4,433.9); EBUs (21.5)); Local Government: 48.9
  - Currency and deposits (Total General Government): (4,475.4) (BCG (4,453.3); EBUs (22.1))
  - Loans (Total General Government): 12.0 (BCG 19.4; EBUs (7.4))
  - Other accounts receivable (Total General Government): 9.5
- Net incurrence of liabilities (Total General Government): (1,850.4)
  - Central Government: (1,888.1) (BCG (1,936.3); EBUs 48.2); Local Government: 37.7
  - Debt securities (Total General Government): (2,880.4) (BCG (2,880.4))
  - Loans (Total General Government): 885.8 (BCG 886.9; EBUs (1.1))
  - Other accounts payable (Total General Government): 108.6 (BCG 57.1; EBUs 51.5)

### Selected GFSM 2014 implementation plan status (as of March 2016)
- Overall project objective: To compile and publish monthly, quarterly and annual general government finance statics according to GFSM 2014; dissemination to the public, the EAC Secretariat, and publication in the IFS and GFSY. Target date: 2017. Assumptions: replace GFSM 1986 tables with GFSM 2014 tables in all internal and external fiscal tables; adequately resourced GFS team; necessary technical support available timely.
- Notable outputs, target dates, and implementation status:
  - 1. Conduct regular GFS TWG meetings/workshops. Target: September 2014. Implementation status: Completed. TWG established and meets periodically.
  - 2. Finalize and maintain Public Sector Institutional Table. Target: December 2014. Implementation status: Completed; updated annually.
  - 3. Link COA classifications to GFSM economic classifications. Target: December 2014. Implementation status: Completed (mapped to GFSM 2001; recommendations to align with GFSM 2014).
  - 4. Link COA classifications to COFOG. Target: December 2014. Implementation status: Completed.
  - 5. Full roll-out of IFMS for budget execution / electronic interfacing for GFSM 2014 reporting. Target for LGs and EBUs: June 2016. Implementation status: In progress. All central government votes on IFMS apart from tertiary institutions and 9 referral hospitals; 71 local governments in IFMS; 8 donor projects in IFMS; authorities provided no definitive completion plans.
  - 6. Incorporate COA-GFS bridge table into IFMS and automate report compilation. Target: June 2015. Implementation status: Completed. COA-GFS bridge table exists on IFMS and automated reports are produced.
  - 7. Reflect GFSM 2014 economic and functional classification tables in budget tables. Target: 2015/2016 Budget June 2015. Implementation status: In progress; authorities attempting incorporation during FY 2016/17 budget cycle.
  - 8. Disseminate GFSM 2014-compliant BCG data for FY2009 thru FY 2012/13. Target: December 2014. Implementation status: Completed. GFS for BCG FYs 2009–2015 disseminated to IMF STA as Statements of Operation.
  - 9. Disseminate GFSM 2014-compliant central government data (BCG and EBUs) for FY 2014. Target: December 2015. Implementation status: In progress. Preliminary central government GFS compiled for FY 2013/14 (November 2015) as Statements of Operation; not disseminated to IMF STA.
  - 10. Disseminate GFSM 2014-compliant LG data for FY 2014. Target: December 2015. Implementation status: In progress. Preliminary LG GFS compiled for FY 2013/14 (November 2015) as Statements of Operation; not disseminated to IMF STA.
  - 11. Expand coverage of GFS (flows) to include all general government units. Target: June 2016 on a cash basis and June 2017 including modified cash data. Implementation status: In progress. Preliminary general government GFS compiled for FY 2013/14 (November 2015); not disseminated to IMF STA.
  - 12. Include stocks of financial assets and liabilities in the GFS for BCG at nominal value (June 2016) and at market value (June 2017). Implementation status: In progress. Monthly financial assets and liabilities flows for BCG are disseminated on cost and face value basis; related stock data are not yet disseminated with the GFS.
  - 13. Include stocks of financial assets and liabilities in GFS of EBUs and LGs at nominal value (June 2016) and at market value (June 2017). Implementation status: In progress. Annual flows compiled but not disseminated for FY 2013/14; plans to collect, compile, and disseminate quarterly GFS including flows and stocks.
  - 14. Develop procedures for collecting debt data from public corporations. Target: June 2016. Implementation status: In progress. BoU disseminates debt of financial public corporations; efforts underway for nonfinancial public corporations.
  - 15. Compile and disseminate public debt statistics of the public sector quarterly. Target: December 2016. Implementation status: Completed. External debt statistics compiled by MoFPED and domestic debt by BoU based on nominal values; instrument coverage includes Special Drawing Rights, Currency and deposits, Debt securities, and Loans.

*Source: IMF mission report (cr17313) — GFSM 2014 implementation findings, Box 1 recommendations, methodology statement, FY 2013/14 consolidated general government finance statistics, and GFSM 2014 implementation plan status as of March 2016.*

### Appendix V. Status of Recommendations from a July 2014 TA Report and a November 2015 TA Visits

### Appendix V. Status of Recommendations from a July 2014 TA Report and a November 2015 TA Visits

### Summary of recommendation statuses (as of March 2016)
- The appendix lists 16 recommendations with implementation statuses reported as of March 2016.
- Key dated and numerical references preserved exactly: FY 2014/15, FY 2013/14, March 2016, November of 2016, 122 units, 71 District Governments.

### Institutional table and GFS coverage
- Recommendation 1 — Update, approve, and promulgate Public Sector Institutions Table
  - Status: In progress.
  - Detail: "A meeting with the Statistics Committee will be conducted and the institutional table will be updated for FY 2014/15. Authorities must determine the modalities for updating and promulgating the table going forward."
- Recommendation 2 — Expand GFS BCG coverage to be consistent with institutions table
  - Status: Completed.
  - Detail: "GFS for BCG now cover the 122 units identified by Uganda’s Public Sector Institutional Table."
- Recommendation 9 — Correct misclassifications in GFS BCG data identified during the July 2014 TA mission
  - Status: Completed.
  - Detail: "These corrections were made when compiling general government finance statistics for FY 2013/14, and will continue going forward."

### Financial balance sheets, PSDS, and public corporations' debt
- Recommendation 3 — Include financial balance sheet data with IFS and GFSY submission
  - Status: Completed.
  - Detail: "Uganda now compiles and disseminates to the IMF financial balance sheet data. Work continues as authorities seek to ensure that the financial balance sheet data reconciles within the fully integrated GFSM 2014 framework."
- Recommendation 7 — Include data on Currency and deposits and Insurance, pensions, and standardized guarantee schemes in public sector debt statistics
  - Status: In progress.
  - Detail: "A BoU representative reported that Currency and deposits are now being reported in Uganda’s Public Sector Debt Statistics (PSDS). Inclusion of Insurance, pensions, and standardized guarantee schemes data is planned as a future improvement."
- Recommendation 8 — Begin collecting data on public corporations’ debt
  - Status: In progress.
  - Detail: "The BoU is planning to begin collecting debt data on nonfinancial public corporations. Debt data for financial public corporations are already available—with certain gaps."

### Local government, extrabudgetary units (EBUs), and automation
- Recommendation 4 — Automate processing of Local Government (LG) GFS data collection
  - Status: In progress.
  - Detail: "This applies to extrabudgetary units (EBUs) as well. Plans are developing to automate data collection, and they are likely to evolve in two steps. First, a data collection template may be used to collect GFS data from LGs (and potentially EBUs). Second, LGs will be incorporated into the Integrated Financial Management and Information System (IFMS). Currently, 71 District Governments are reporting in IFMS. Authorities indicated no definitive plans for a full IFMS rollout."
- Recommendation 5 — Use the new Public Finance Bill to institute regular and high-frequency fiscal reporting by EBUs
  - Status: In progress.
  - Detail: "Authorities reported that the Public Finance Management (PFM) Act does not include provisions for high-frequency data collection beyond bi-annual. However, MoFPED’s Permanent Secretary has the authority (PFM Acts says the Accountant General has the authority) to request reporting by institutional units."
- Recommendation 6 — Include EBU data in GFS submissions to the IMF (IFS and GFSY)
  - Status: In progress.
  - Detail: "This will be achieved with the next submission of Uganda’s general government finance statistics."
- Recommendation 12 — Undertake efforts to expand further EBU coverage
  - Status: See item 2 above.
  - Detail: Reference to completed expansion in Recommendation 2.

### Statistical discrepancies, statements of cash flows, and quality programs
- Recommendation 13 — Undertake efforts to reduce Statistical discrepancies for EBUs and Local Government; detail for Local Government Net financing should be provided
  - Status: In progress.
  - Detail: "The March 2016 TA mission undertook an analysis of the statistical discrepancy and made recommendations. See the part VII of this TA Report."
- Recommendation 14 — Produce a GFSM 2014 Statement of Sources and Uses of Cash
  - Status: In progress.
  - Detail: "The mission discussed with authorities’ methods for preparing Statements of Sources and Uses of Cash with authorities (see part V.D of this TA Report). Authorities should use these methods to produce the statements and disseminate them as part of their data submissions to the IMF."
- Recommendation 15 — GFS TWG should finalize and implement a data quality improvement work program (DQIWP)
  - Status: In progress.
  - Detail: "See part IX of this TA Report."

### Classification, collaboration, and public outreach
- Recommendation 10 — Develop a database of recent projects and programs that can be classified successfully into a GFSM 2014 COFOG framework
  - Status: This effort is not required.
  - Detail: "Uganda’s COFOG estimates are consistent with the GFSM 2001 and 2014. New programs that appear in the Budget are mapped to appropriate functions."
- Recommendation 11 — Increase collaboration between MOFPED and UBOS GFS compilers
  - Status: "This effort should be undertaken by the Uganda’s GFS Technical Working Group (TWG)."
- Recommendation 16 — Authorities should collaborate with the EAC in developing an information campaign in Uganda to alert the public to the adoption of a new government finance statistics standard, and the measures that are being implemented to ensure transparency and full disclosure of government fiscal operations
  - Status: In progress.
  - Detail: "The mission discussed with authorities plans to organize and conduct a public event during November of 2016 at which authorities would sensitize the public to the new GFS framework and present new datasets."

*Source: Appendix V. Status of Recommendations from a July 2014 TA Report and a November 2015 TA Visits (as of March 2016).*

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_Source: https://www.imf.org/-/media/files/publications/cr/2017/cr17313.pdf_