1. MAKERERE UNIVERSITY DIRECTORATE OF INTERNAL AUDIT ACCOUNTABILITY SYSTEMS AND PROCESSES RIDAR HOTEL SEETA 16 TH – 18 TH JUNE 2011 Presented by SAMUEL NATWALUMA Assistant Internal Auditor Makerere University 1

2. PRESENTATION OUTLINE 1.0Background: -Definitions -Objectives 2.0Laws regulations/policies governing accountabilities 3.0Identifying various forms/types of accountability 4.0Formats and forms used in accountability 5.0Risks/Challenges in accountability 6.0Current accountability controls/process/issues 7.0Recommended control processes and procedures 2

3. 1.0BACKGROUND A Committee was constituted to review the systems and processes on accountability, handled by the presenter Samuel Natwaluma, Biganja Esther Secretary and Luwuliza Aggrey as a Member. Accountability issues have featured in the Management Letter by the Auditor Generals Office and in the Internal Audit Reports 3

4. DEFINITION OF ACCOUNTABILITY The obligation of an individual or organization is to account for its activities, accept responsibility for them and to disclose the results in a transparent manner. It also includes the responsibility of money and other entrusted property. 4

5. OBJECTIVES AND EXPECTATIONS The major objective is to sensitize Staff of Makerere University on the following:- Understanding systems and processes of accountability. Meaning of accountability. Nomenclature/procedures of accountability. Presenting financial accountabilities Makerere/Government procedures. Value for money accountability. Risk for unaccounted funds – non compliance. 5

6. 2.0LAWS/REGULATIONS/POLICIES GOVERNING ACCOUNTABILITES Section 214: Treasury Accountability Instructions (2003) 214 (a) Before approving an advance you make sure that the concerned staff has settled any old advances 6

7. Cont. 215 (a)The advance must be accounted for without delay. 216At the end of every month a statement of outstanding advances shall be prepared and handled over to the Accounting Officer 7

8. Cont. 217Advances not accounted for within 60 days from date of payment shall be deducted from the monthly salary of the debtor. Instructions shall also be given not to give a new advance to anybody with un settled advance. 8

9. MAKERERE UNIVERSITY FINANCIAL GUIDELINES MANNUAL Money given to staff for University activities are recorded as advances until they are accounted for or recovered through Pay Roll System 9

10. ACCOUNTING FOR GRANT/DONOR RECEIPTS Unless the Donor specifies how the Grant should be accounted, the following should apply. Chapter 3:21 Director of Planning and Development coordinates through Central Administration who are responsible for collecting Grants in liaison with Colleges who make project proposals. 10

11. Cont. Chapter 3:31 Accounting for Grant funded projects takes into account of Donor requirement in reporting. 11

12. 3.0VARIOUS FORMS/TYPES OF ACCOUNTABILITIES Advances - To Staff, -Petty Cash -Field Work Periodical Quarterly 12

13. 4.0FORMATS AND FORMS/TYPES OF ACCOUNTABILITY Cover Letter Expenditure Summary Payment voucher Approved Budget Accountability Forms 13

14. 5.0RISKS AND CHALLENGES IN ACCOUNTABILITIES Late accountability Pay Roll Recovery Loosing documents Forged documents Currency differences 14

15. 6.0CURRENT ACCOUNTABILITIES CONTROLS/PROCESSES/ISSUES Staff advanced money do account and forward the file to the Accountant responsible. The Accountant forwards the file to the Internal Audit Internal Audit records and reviews the accountability file. 15

16. Cont. Responsible Accountant collects the file from the out tray and signs for it. At times staff advanced money bring accountability files directly to Internal Audit. These files are recorded, reviewed and collected by staff who have been advanced money. 16

17. Issues Responsible Accountants do not track the staff advanced money. No proper system documentation on how accountabilities should be handled. Internal Audit has no documentation on checklist for accountabilities. 17

18. Cont. Late accountabilities by staff advanced money. Responsible Accountants delay to submit the accountabilities from staff advanced money. Failure to produce proper accountabilities by staff advance money 18

19. 7.0RECOMMENDED CONTROLS, PROCESS AND PROCEDURES Emphasize Donor/Grant requirements. Emphasize the Laws and Regulations. governing Accountabilities. Checklist of Accountability file. -Cover Letter -Copy of Payment Voucher -Approved Budget -Accountability form -Evidence of expenditure i.e. reports -Expenditures summary against the budget lines -Value for money accountability 19

20. COVER LETTER Address of Researcher/Project Co-ordinator -Faculty -Department -Office/Room number -Contact i.e. Phone number, email address 20

21. ACCOUNTABILITY FORM Details of the Staff advanced money. Amount advanced. Summary of foreign exchange information. Expenditure summary schedule in line with approved budget lines. 21

22. EVIDENCE OF EXPENDITURE ACCORDING TO BUDGET LINES Equipment Minor Equipment Consumables 22

23. EVIDENCE OF EXPENDITURE ACCORDING TO BUDGET LINES Travel Travel inland Travel abroad Air ticket Fuel receipts/Tax receipts to Air port, Train Tickets, Cab/Taxi receipts Boarding passes Expenses on excursions 23

24. Cont. Research Assistants Perdiem Communication 24

25. OTHER KEY ISSUES TO BE NOTED Fixed Assets Assets acquired to facilitate studies are properties of the university, particularly the units in which research is undertaken. Upon delivery and verification, they should be engraved and registered in the Faculty Fixed Assets Register 25

26. Cont. Upon submission of the final report, the assets should be handed over to the College. Partial accountabilities These occur when an accountability is submitted before exhausting the advanced funds. In case, it should be accompanied by an activity. 26

27. THANK YOU. 27