Back Matter

Appendix I. Uganda: Work Plan for Establishing a Database on Government Guarantees

The following information must be collected and included in a comprehensive database on government guarantees:

Information to be collected:

Documents to be collected for each guarantee:

  • Letter of guarantee

  • Loan contract

  • Risk assessment as provided before guarantee was granted (if applicable), In addition the lenders should be asked to provide the following up-to-date information on the loan (could usefully be requested in electronic table format):

  • Remaining balance for the loan

  • Expected repayment schedule for the loan

  • Any outstanding repayment with information passed/missed repayment schedule

  • Any late payments with date, amount, and delay

The database on government guarantees should at least include the following information:

One off entries:

  • Beneficiary

  • Lender

  • Sponsor of guarantee (public entity requesting provision of guarantee for beneficiary)

  • Loan amount

  • Guarantee amount

  • Date of loan agreement

  • Date of expected full repayment (maturity)

  • Some core information on the terms of the letter of guarantee and the loan contract, including:

    • Any specified trigger for call of guarantee (non-payment for x days, other nonprovision of audited accounts, etc.)

    • Repayment condition for guarantee (e.g., full amount or pending amount)

    • Legal procedure for establishing rightful and binding call of guarantee

Information to be updated regularly:

  • Expected amount outstanding (to date)

  • Actual amount outstanding (to date)

  • Any amount overdue (to date)

  • Potential call of guarantee announced by lender

  • Potential lack of capacity to service loan considered by beneficiary

Timeline and procedure for collection and processing information:

  • Assign one officer and 3–5 support staff to the task.

  • Design the layout of a DMFAS/Excel spreadsheet for the database.

  • Start entering available information as soon as DMFAS/Excel spreadsheet is available.

  • Request immediately, information in writing from all relevant creditors with deadline. Information should include a copy of the letter of guarantee and of the loan agreement; and a table to be filled in including information on the current performance of the loan.

  • Ensure that all information required for the database is available. Follow up on any missing information.

  • Prioritize the information to be entered into the database by risk factors (e.g., amount of loan, type of beneficiary, etc.)

  • Start assessing risks from guarantees while data is entered.

  • Ensure that all information is entered into the database and information on arrears from called guarantees is available.

Appendix II. Uganda: Draft of the Public Finance Management Regulations

[2014 No. --]

The Public Finance Management Regulations, [2014].

(Under section 90(1) of the Public Finance Management Act, 2014, Act No. [--] of 2014).

In exercise of the powers conferred upon the Minister by section 90(1) of the Public Finance Management Act, 2014, this Regulation are made this [date].

Part I – Preliminary

1. Citation, commencement, and application

(1) These regulations may be cited as the Public Finance Management Regulations, [2014] and shall come into force on [date].

(2) These regulations apply to ministries, departments, self-accounting departments, commissions, and organizations, subvented entities, extrabudgetary entities, local governments, public enterprises, special funds and any other persons as provided therein and to the management of public finance.

2. Interpretation

  • (1) In this Regulation, unless the context otherwise requires, – “annual estimates” means estimates of revenues and expenditures which –

    • (a) are submitted under Article 155(1) of the Constitution;

    • (b) provide Parliament with additional information on voted amounts included in an Appropriation Act; and

    • (c) are to be approved by Parliament as part of the Government budget under section 11(1) of the Act;

  • “appropriation-in-aid” means any revenue which is received by a vote and is approved by Parliament under an Appropriation Act for application by the vote to finance its activities;

  • “available expenditure limit” means an amount of a provision under the annual or supplementary estimates which has been allocated to a quarter by a quarterly expenditure limit issued under regulation X(3) and has not yet been committed or paid;

  • “available provision” means an amount of a provision under the annual or supplementary estimates which has not yet been committed or paid;

  • “central government” includes any entity which satisfies the following conditions:

    • (a) most of the entity’s output is provided free or at not economically significant prices;

    • (b) the entity’s output is intended for individual and collective consumption;

    • (c) the entity is mainly financed by taxes and other compulsory transfers or controlled and mainly financed by other entity included in the central government; and

    • (e) the entity is not included in the local government;

  • “commitment” means an explicit or implicit but legally enforceable contract or agreement to make payments to another party in exchange for that party supplying goods or services or fulfilling other obligations, and includes, but not limited to –

    • (a) agreements to make payments in exchange for supply of specific goods or service; and

    • (b) agreements of a continuing nature, which require a series of payments over an indeterminate period of time;

  • “Community” has the same meaning as defined in section 2 of the East African Community Act, 2002;

  • “department” means a Ministry or department which is named in Schedule 1;

  • “entity” includes a fund, body corporate, and other organization and group of persons;

  • “exceptional circumstances” includes –

    • (a) a major disaster;

    • (b) unanticipated severe economic shock; and

    • (c) other significant unforeseen event that cannot be accommodated through employment of other flexibilities provided for in the Act or prudent fiscal policy adjustment,

    • within the meaning of section 7(2) of the Act;

  • “excess expenditure” means a payment or an unpaid bill which has been made or to be made in excess of the amount of the item of expenditure under the annual or supplementary estimates or otherwise without authority for the payment under the Government budget, the Constitution, or an Act of Parliament;

  • “expenditure arrears” means the total stock of unpaid bills at the end of a financial year;

  • “extrabudgetary entity” means an entity –

    • (a) which is included in the central government but is not a vote; and

    • (b) which is named in Schedule 4;

  • “general government” includes the central government and local government;

  • “Government budget” includes annual estimates and an Appropriation Act to which the annual estimates relate;

  • “Government budget documents” include the Government budget and other reports and information submitted to Parliament together with the Government budget under section 10 of the Act and this Regulation;

  • “local government” means –

    • (a) a district council;

    • (b) a council of a lower local government; or

    • (c) other non-profit entity –

      • (i) which is controlled and mainly financed by a district council or a council of a lower local government; and

      • (ii) the competence of which is restricted to a district or lower local government, and is named in Schedule 5;

    • “Monetary Union” has the same meaning as defined in Article 1 of the Protocol;

    • “multiyear commitment” means a commitment, settlement of which requires expenditure from the Government budget for multiple financial years or in a future financial year;

    • “nongovernmental organization” has the same meaning as defined in section 1(d) of the Nongovernmental Organizations Registration Act, 1989 and includes one established in a foreign jurisdiction;

    • “PPP project” means [to be defined by making reference to the PPP Act];

    • “Protocol” means the Protocol on the Establishment of the East African Community Monetary Union;

    • “public debt” means total gross debt at nominal value outstanding at the end of a financial year and consolidated within the general government;

    • “public enterprise” means an entity –

      • (a) which satisfies the following conditions:

        • (i) the entity’s transactions are distinct from those of its owner;

        • (ii) more than 50 percent of the entity’s production costs are covered by sales in the market; and

        • (iii) the entity is controlled by any entity included in the general government; and

      • (b) which is named in Schedule 6,

      • and includes special funds:

      • Provided that the Bank of Uganda is not a public enterprise;

    • “public sector” includes the general government, public enterprises, and the Bank of Uganda;

    • “responsible Minister” means, in respect of a subvented entity, extrabudgetary entity, or public enterprise –

      • (a) a Minister who is responsible under the law for supervising the operation of the entity or enterprise; or

      • (b) the Minister, if there is no Minister who is responsible under the law for supervising the operation of the entity or enterprise, and

    • “responsible Ministry” shall be construed accordingly;

    • “self-accounting department, commission, or organization” means an entity –

      • (a) which is set up under the Constitution;

      • (b) to which Article 155(3) of the Constitution applies; and

      • (c) which is named in Schedule 2;

    • “special fund” means a public enterprise which is a defined business unit established as part of a department and does not have a separate legal personality;

    • “subvented entity” means an entity –

      • (a) which is a vote and included in the central government but is not a self-accounting department, commission, or organization or a department; and

      • (b) which is named in Schedule 3;

    • “supplementary estimates” means estimates of revenues and expenditures which –

      • (a) are submitted under Article 156(2) of the Constitution;

      • (b) provide Parliament with additional information on voted amounts included in a Supplementary Appropriation Act; and

      • (c) are to be approved by Parliament under Article 156(3) of the Constitution;

    • “Treasury Single Account” means an integrated system of bank accounts which enables public money to be managed in a consolidated manner;

    • “unpaid bill” means an outstanding commitment owed by a vote to expenditure for utilities, rent, employee costs, other recurrent, court awards, compensation, contributions to international organizations, development, taxes and other deductions.

(2) For the purpose of this Regulation, “district”, “district council”, “district chairperson”, “lower local government”, and “municipality council” have the same meanings as defined in the Local Government Act, 2003.

(3) For the purpose of this Regulation, “services”, “supplies”, and “works” have the same meanings as defined in section 3 of the Public Procurement and Disposal of Public Assets Act, 2003.

Part II – Macroeconomic and Fiscal Policies

X. Fiscal policy objectives

(1) For the purpose of section 5(3) of the Act, the measurable fiscal policy objectives under the Charter of Fiscal Responsibility shall, at least, include –

  • (a) ceilings on fiscal balance; and

  • (b) ceilings on public debt.

(2) For the purpose of sections 5(3) and (4) of the Act, the measurable fiscal policy objectives under the Charter of Fiscal Responsibility shall –

  • (a) not contravene the convergence criteria for the Monetary Union prescribed under the Protocol or any other enactment of the Community; and

  • (b) cover any entities to which the convergence criteria for the Monetary Union on fiscal indicators apply under the Protocol or any other enactment of the Community.

(3) For the purpose of section 6(1)(a) of the Act, the Charter of Fiscal Responsibility may include supplementary targets and ceilings on such fiscal indicators as deemed appropriate by the Minister.

(4) The supplementary targets and ceilings mentioned in paragraph (3) are indicative, and any deviation thereof does not require preparation of a plan to correct the deviation.

X. Approval of, and amendments to, fiscal policy objectives

(1) For the purpose of section 6(2) of the Act, the measurable fiscal policy objectives under the Charter of Fiscal Responsibility shall be subject to the approval of Parliament.

(2) When the Minister submits to Parliament for its approval amendments to the measurable fiscal policy objectives under section 6(3) of the Act, the updated Charter of Fiscal Responsibility submitted by the Minister to Parliament shall include, in addition to the contents required under section 6(1) of the Act, –

  • (a) justification for the amendments; and

  • (b) macroeconomic and fiscal forecasts used as a basis of calibration of the amended fiscal policy objectives.

X. Publication of the Charter of Fiscal Responsibility

For the purpose of sections 6(2) and (4) of the Act, the Charter of Fiscal Responsibility and the amendments thereto shall be published by the Minister in the website of the Ministry.

X. Monitoring and correction of deviations from fiscal policy objectives

(1) The Minister shall monitor the compliance with the measurable fiscal policy objectives through preparation of fiscal performance reports under section 16 of the Act.

(2) Subject to sections 7(1) and 14(2)(d) of the Act, when, in preparing a fiscal performance report, the Minister determines that there is a deviation from a measurable fiscal policy objective, he shall include in the fiscal performance report –

  • (a) a statement that there is the deviation;

  • (b) an explanation of the reason for the deviation;

  • (c) an assessment of whether there is an exceptional circumstance;

  • (d) if an exceptional circumstance does not exist, a plan to address the deviation (hereinafter called “a corrective plan”); and

  • (e) an expected period over which the deviation is to be addressed or resolved.

(3) A corrective plan mentioned in paragraph (2)(d) shall take into account a recommendation or opinion of an organ or institution of the Community on the macroeconomic convergence.

(4) Subject to section 7(4) of the Act, when the Minister, in a fiscal performance report, determines that there is a deviation from a measurable fiscal policy objective, the Cabinet shall, through the fiscal performance report, approve –

  • (a) existence of an exceptional circumstance; or

  • (b) a corrective plan.

(5) Subject to section 7(4) of the Act, within one month after the Cabinet’s approval under paragraph (4), the Minister shall submit the fiscal performance report to Parliament.

(6) Subject to section 7(3) of the Act, Parliament shall review a fiscal performance report submitted under paragraph (5) and may make recommendations on a corrective plan included in it, if any.

(7) A report to Parliament on a deviation from the measurable fiscal policy objectives mentioned in section 7(3) of the Act shall be prepared, submitted, and published as part of a fiscal performance report in accordance with this regulation.

X. Macroeconomic and fiscal forecasts

(1) For the purpose of sections 9(1) and 10(7)(b) and (d) of the Act, the Minister shall produce macroeconomic and fiscal forecasts underlying the National Budget Framework Paper or the Government budget documents.

(2) For the purpose of sections 9(1) and 10(7)(b) and (d) of the Act, the National Budget Framework Paper and the Government budget documents shall include –

  • (a) an explanation of methodologies and assumptions used for macroeconomic and fiscal forecasts included in the National Budget Framework Paper or the Government budget documents; and

  • (b) a comparison of the macroeconomic and fiscal forecasts with those of international organizations and independent bodies and an explanation of the reasons for significant differences between them, if any.

(3) For the purpose of sections 9(1) and 10(7)(b) and (d) of the Act, macroeconomic and fiscal forecasts underlying the National Budget Framework Paper or the Government budget documents shall be based on assumptions which take full account of domestic and international economic conditions, including conditions of international commodity markets.

(4) Fiscal forecasts underlying the National Budget Framework Paper or the Government budget documents shall cover the general government.

X. Approval of the National Budget Framework Paper

For the purpose of section 9(5) of the Act, ceilings on expenditures and floors of investments included in the National Budget Framework Paper under Schedule 3, paragraph 5, of the Act shall be subject to the approval of Parliament.

X. Fiscal risks statement

(1) A fiscal risks statement mentioned in Schedule 3, paragraph 7, of the Act shall be prepared in accordance with such common forms and methodologies as may be specified by an organ or institution of the Community in respect of the macroeconomic convergence.

(2) Without prejudice to paragraph (1), a fiscal risks statement shall, at least, include –

  • (a) the results of sensitivity analysis based on different assumptions in respect of main macroeconomic and fiscal indicators;

  • (b) analysis of the Government’s exposures to contingent liabilities, including those arising from guarantees, losses on pending court cases, and loans;

  • (c) analysis of fiscal risks arising from public debt, oil prices, external financing, projects and PPP projects, public enterprises, and any other sources; and

  • (d) information on the Government’s measures to manage identified fiscal risks.

X. Performance report

(1) For the purpose of section 16(3) of the Act, within one month after the end of half a year of a financial year, an Accounting Officer of every vote shall submit to the Secretary to Treasury an in-year performance report which includes –

  • (a) information on progress in implementation of work plans included in the vote’s policy statement submitted under regulation X(6);

  • (b) if there is significant delay in the implementation of the work plans, plans to address the delay;

  • (c) the updated monthly budget report of the vote mentioned in regulation X(1);

  • (d) the updated [monthly/quarterly] cash plan of the vote mentioned in regulation X(2);

  • (e) the updated procurement plan of the vote; and

  • (f) any other information as may be specified by the Secretary to Treasury.

(2) For the purpose of section 16(1) of the Act, by the end of every February, the Minister shall prepare and submit to Parliament an in-year fiscal performance report which includes the contents specified under sections 16(1) and (2) of the Act and regulation X(2).

(3) For the purpose of section 16(3) of the Act, by [September 30th] of every financial year, an Accounting Officer of every vote shall submit to the Secretary to Treasury an end-year performance report which includes –

  • (a) information on achievement of work plans included in the vote’s policy statement submitted under regulation X(6);

  • (b) annual accounts and other information submitted to the Accountant-General under section 51(1) of the Act; and

  • (c) any other information as may be specified by the Secretary to Treasury.

(4) For the purpose of section 16(1) of the Act, by the end of every October, the Minister shall prepare and submit to Parliament an end-year fiscal performance report which includes the contents specified under sections 16(1) and (2) of the Act and regulation X(2).

(5) In-year and end-year fiscal performance reports submitted to Parliament under paragraph (2) or (4) shall be published by the Minister in the website of the Ministry.

(6) A report on performance mentioned in section 14 of the Act shall be submitted and published as part of an in-year or end-year fiscal performance report mentioned in paragraph (2) or (4).

(7) The Secretary to Treasury shall make instructions to prescribe forms and other necessary matters for preparation of in-year and end-year performance reports of votes under paragraphs (1) and (3).

X. Pre- and post-election fiscal and economic update

(1) For the purpose of section 17(1)(a), no earlier than four months before the polling day for any general election, the Secretary to Treasury shall prepare and publish in the website of the Ministry a pre-election economic and fiscal update which includes –

  • (a) updated medium-term macroeconomic and fiscal forecasts mentioned in Schedule 3, paragraphs 1 and 3, of the Act;

  • (b) an updated fiscal risks statement mentioned in Schedule 3, paragraph 8, of the Act;

  • (c) information on budgeted election-related spending for the general election mentioned in section 17(2)(a) of the Act;

  • (d) a statement signed by the Secretary to Treasury mentioned in section 17(2)(b) of the Act; and

  • (e) any other information as may be deemed appropriate by the Secretary to Treasury.

(2) For the purpose of section 17(1)(b), the Secretary to Treasury shall prepare a post-election economic and fiscal update which includes –

  • (a) actual election-related spending for the general election mentioned in paragraph (1)(c); and

  • (b) the contents listed in paragraphs (1)(a), (b), (d), and (e).

(3) For the purpose of section 6(1)(b), a post-election economic and fiscal update mentioned in paragraph (2) shall be submitted to Parliament and published together with the Charter of Fiscal Responsibility, within three months after the commencement of the first parliamentary session after the general election concerned.

Part III – Budget Preparation, Approval, and Management

Budget preparation and approval process

X. Medium-term budgetary framework

(1) For the purpose of section 10(1) of the Act, the Minister shall establish a medium-term budgetary framework which includes the procedures to prepare the Government budget –

  • (a) based on reliable macroeconomic and fiscal forecasts for a medium-term;

  • (b) consistent with –

    • (i) the fiscal responsibilities principles mentioned in section 5(2) of the Act and fiscal policy objectives prescribed in the Charter of Fiscal Responsibility; and

    • (ii) ceilings on expenditures prescribed in the Budget Framework Paper; and

  • (c) by taking into account the fiscal impact of the policy measures and their prioritization described under the National Development Plan.

(2) The Minister shall make instructions or guidelines to prescribe any matters necessary for implementation of paragraph (1).

X. Budget preparation process

(1) For the purpose of section 10(1) of the Act, by the end of [every October], the Secretary to Treasury shall issue a budget call circular which includes –

  • (a) preliminary ceilings on expenditure of the Government;

  • (b) a budget calendar which sets out the time frame in respect of preparation and approval of the Government budget;

  • (c) instructions to each vote for preparing a budget framework paper, policy statement, and any other estimates and information of the vote necessary to prepare the Government budget; and

  • (d) any other matters as deemed appropriate by the Secretary to Treasury.

(2) In accordance with section 9(2) of the Act, by November 15th of every year, an Accounting Officer of every vote shall prepare and submit to the Secretary to Treasury a budget framework paper of a sector to which the vote belongs.

(3) A budget framework paper of a sector mentioned paragraph (2) shall be prepared in such form and manner as specified in a budget call circular and include –

  • (a) estimates of revenues and expenditures of every vote within the sector for the next [three] years or more;

  • (b) strategic objectives and work plans relating to the estimates mentioned in paragraph (a); and

  • (c) any other information required by a budget call circular.

(4) When the National Budget Framework Paper is submitted to Parliament by December 31st and approved by Parliament by February 1st of every year under sections 9(4) and (5) of the Act, the Secretary to Treasury may revise and finalize ceilings on expenditure of the Government.

(5) When ceilings on expenditure of the Government are revised under paragraph (4), an Accounting Officer of every vote shall prepare and submit to the Secretary to Treasury the revised estimates of revenues and expenditures of the vote for the next [three] years or more in such form and manner and by such date as specified by the Secretary to Treasury.

(6) By the end of every [February], an Accounting Officer of every vote shall prepare and submit to the Secretary to Treasury a policy statement of the vote which includes the contents specified in section 10(13) of the Act, in order to support the estimates of revenues and expenditures of the vote.

(7) For the purpose of section 10(1) of the Act, the Secretary to Treasury shall prescribe, in a budget call circular or otherwise, the procedures for giving local governments and other stakeholders an opportunity to express their views on the Government budget and policy statements.

(8) Subject to section 11(1), the Government budget for a financial year shall be approved by Parliament by May 31st of the preceding financial year.

X. Ceilings on expenditure

(1) A ceiling on expenditure of the Government included in the National Budget Framework Paper under Schedule 3, paragraph 5(a), of the Act shall be consistent with fiscal policy objectives established in the Charter of Fiscal Responsibility.

(2) Ceilings on expenditure of the Government included in a budget call circular under regulations X(1) and (4) shall –

  • (a) be made consistent with a ceiling in the National Budget Framework Paper, when the National Budget Framework Paper is submitted to, and approved by, Parliament;

  • (b) be broken down into recurrent and development expenditures and at such level of detail as determined by the Minister; and

  • (c) take into account policy prioritization set out in the National Development Plan.

(3) When the estimates of expenditures of a vote proposed under regulation X(2) or (5) exceed a ceiling on expenditure of the Government under paragraph (2), –

  • (a) the Accounting Officer of the vote shall provide the Secretary to Treasury with explanation of the reason for the excess; and

  • (b) the Secretary to Treasury may require an Accounting Officer to revise the estimates in accordance with the ceiling on expenditure.

X. Budgets of self accounting departments, commissions, and organizations

(1) The budgets of self accounting departments, commissions, and organizations mentioned in section 10(8)(e) of the Act shall be included in, and approved by Parliament as part of, the Government budget.

(2) The Secretary to Treasury shall ensure that Regulations X, X, and X apply to self accounting departments, commissions, and organizations without prejudice to Article 155(3) of the Constitution.

X. Consolidated budget of the central government

The Minister shall submit to Parliament for information as part of the Government budget documents of a financial year the consolidated budget of the central government for the financial year which include the estimates of aggregate revenues and expenditures of –

  • (a) subvented entities; and

  • (b) extrabudgetary entities.

X. Public Investment Plan and reports on external financing

(1) The Minister shall annually prepare and submit as part of the Government budget documents a Public Investment Plan which provides information on projects and PPP projects which have been included in the present or preceding year’s Government budget but not been completed (hereinafter called “ongoing projects and PPP projects”) or which are newly included in the Government budget (hereinafter called “new projects and PPP projects”).

(2) A Public Investment Plan mentioned in paragraph (1) shall include the following information in respect of each ongoing and new project and PPP project:

  • (a) overview;

  • (b) financing source;

  • (c) updated projection of total expenditure from the Government budget over the lifetime of the project implementation;

  • (d) amount of actual and forecasted annual expenditure of preceding and present years and for a medium-term;

  • (e) amount of outstanding commitments;

  • (f) if it is financed by transfers from the Petroleum Fund under section 57(1) of the Act, an assessment of economic and social impacts of the project or PPP project; and

  • (g) any other information as deemed appropriate by the Minister.

(3) Projects and PPP projects included in a Public Investment Plan under paragraph (1) shall be appraised, selected, and implemented in accordance with guidelines of the Minister made under regulation X or the Public-Private Partnership Act, [2014], as the case may be.

(4) A report on grants mentioned in section 42(5) of the Act and a plan for external financing mentioned in section 10(8)(a)(ii) of the Act shall be combined into one report and submitted by the Minister as part of the Government budget documents.

(5) The combined report mentioned in paragraph (4) shall include the following information in respect of projects and PPP projects which are financed by donor’s loans or grants but not included in the Government budget:

  • (a) overview;

  • (b) financing source;

  • (c) updated projection of total expenditure over the lifetime of the project implementation;

  • (d) amount of actual and forecasted annual expenditure of preceding and present years and for a medium-term; and

  • (e) any other information as deemed appropriate by the Minister.

(6) The combined report mentioned in paragraph (4) shall be consistent with the medium-term debt management strategy mentioned in regulation X(1).

[X. Parliamentary review of work plans

(1) For the purpose of section 11(1), Parliament shall review, and may make recommendations on, a work plan of a vote described in its policy statement submitted under section 10(11) of the Act.

(2) To avoid doubt, votes’ policy statements are laid before Parliament under section 10(11) in order to provide Parliament with additional information supporting the Government budget, and section 11(1) shall not be construed as requiring approval of Parliament for revising policy statements during a financial year.]

X. Publication of the Government budget documents

Subject to section 10(10) of the Act, the Minister shall publish the Government budget documents for a financial year by the beginning of the financial year in the website of the Ministry.

X. Corrigenda

(Current regulation 32 with necessary amendments)

Budgetary principles and structure

X. Authority to make payments of public money

(1) Subject to Articles 154(1) and (2) of the Constitution, public money may not be paid, except as expressly authorized by an appropriation under an Appropriation Act or Supplementary Appropriation Act or by the Constitution or an Act of Parliament.

(2) Subject to section 15(1) of the Act, the authorization to make payments of public money provided by an appropriation under an Appropriation Act or Supplementary Appropriation Act and by a provision under the annual or supplementary estimates –

  • (a) is limited to the amount specified for the appropriation and provision and may not be exceeded;

  • (b) is limited to the ambit of the appropriation and provision and may not be used for any other purpose; and

  • (c) expires and ceases to have any effect at the end of the financial year for which the appropriation and provision relates.

(3) An ambit of an appropriation or provision mentioned in paragraph (2)(b) shall not exceed the statutory functions of the vote.

X. Budgeting on a gross basis

(1) Any revenues and expenditures shall be entered in the annual estimates on a gross basis without being netted with each other.

(2) Notwithstanding paragraph (1), tax revenues shall be entered in the annual estimates after deducting estimated amount of tax refunds from the tax revenues.

X. Unit of appropriations

Appropriations under an Appropriation Act and Supplementary Appropriation Act shall be made for –

  • (a) total recurrent expenditure of each vote; and

  • (b) total development expenditure of each vote.

X. Structure of the annual and supplementary estimates

The annual and supplementary estimates shall divide –

  • (a) expenditure of each vote into expenditures of such [programs] as determined by the Secretary to Treasury; and

  • (b) expenditure of each [program] into expenditures of such other items of expenditures as determined by the Secretary to Treasury.

X. Budget classification

(1) The annual and supplementary estimates shall include economic, administrative, and such other classifications of revenue and expenditure as determined by the Secretary to Treasury.

(2) The classifications of revenue and expenditure mentioned in paragraph (1) shall –

  • (a) be the same as those under the chart of accounts established under regulation X(1); and

  • (b) be, to the extent possible, in accordance with internationally accepted standards in areas of financial statistics and accounting.

X. Classified expenditure

(Current regulation 41 and regulations under the Public Finance and Accountability (Classified expenditure) Regulations, 2003 with necessary amendments – a Schedule should be added to show a list of votes which are allowed to include classified expenditure and allowed items)

Budget execution

X. The General Warrant

(Current regulation 35 with necessary amendments)

X. Quarterly expenditure limits

(1) A quarterly expenditure limit issued by the Minister under regulation X(3) shall be set at such level of an item of expenditure under the annual or supplementary estimates as determined by the Minister.

(2) A provision under the annual or supplementary estimates may not be committed or paid during a quarter in excess of a quarterly expenditure limit set for the quarter in respect of the provision.

(3) An amount of a quarterly expenditure limit for a quarter which has not been committed or paid is carried over to the next quarter, unless otherwise directed by the Minister.

(4) Notwithstanding subsection (3), an amount of a quarterly expenditure limit which has not been committed or paid may not be carried over to the next financial year.

(5) The Minister may change the duration for which the expenditure limits issued under regulations X(3) will apply as the Minister determines necessary.

X. Commitments

(1) A commitment which requires expenditure from the Government budget shall not be made by a vote, unless the amount to be paid for settlement of the commitment is equal to or less than the available provision and available expenditure limit.

(2) There shall be an accounting system which issues to every commitment made in accordance with paragraph (1) a unique and sequential commitment number which shall be reflected in the purchase order or similar document in respect of the commitment.

(3) No payment under the Government budget shall be made, unless –

  • (a) the underlying commitment has been made and recorded in accordance with this Regulation; and

  • (b) a commitment number has been issued to the underlying commitment under paragraph (2).

X. Quarterly expenditure commitment report

(1) A quarterly expenditure commitment report of every vote required under section 13(1) of the Act shall be prepared and submitted by an Accounting Officer of the vote to the Secretary to Treasury in such form and manner and within [one month] after the end of each quarter and include the following information in respect of each item of expenditure for the vote under the annual and supplementary estimates:

  • (a) an amount approved in the annual or supplementary estimates;

  • (b) an amount of a quarterly expenditure limit;

  • (c) an amount of outstanding commitments;

  • (d) an amount of payments which have been made;

  • (e) an amount of outstanding expenditure arrears classified by number of days overdue; and

  • (e) any other information specified by the Secretary to Treasury.

(2) The Secretary to Treasury shall publish all quarterly expenditure commitment reports submitted under paragraph (1) in the website of the Ministry within [six weeks] after the end of every quarter.

X. Multiyear commitments

(1) A multiyear commitment shall not be made by a vote, unless the multiyear commitment obtains the prior approval of –

  • (a) the Minister, when the amount of the multiyear commitment is [amount to be specified] or less; or

  • (b) Parliament under section 21(2) of the Act, if otherwise;

(2) Subject to section 21(3) of the Act, Parliament or the Minister, as the case may be, may approve a multiyear commitment, if the multiyear commitment is not likely to cause fiscal policy objectives, ceilings on expenditure, or medium-term expenditure framework under the Charter of Fiscal Responsibility or National Budget Framework Paper to be contravened, exceeded, or deviated.

(3) A statement of multiyear commitments to be submitted as part of the Government budget documents of a financial year under section 10(8)(c) of the Act shall be prepared by the Minister and include –

  • (a) an amount of each multiyear commitment to be made during the financial year;

  • (b) the financial years during which each multiyear commitment is proposed to be made;

  • (c) any increase in amount of a multiyear commitment which was approved by Parliament in a preceding year;

  • (d) purposes of multiyear commitments mentioned in paragraphs (a) and (c); and

  • (e) information on progress in settlement of multiyear commitments which were made in preceding years in respect of every vote.

(4) The prior-approval of multiyear commitments by Parliament under section 21(2) of the Act shall be made through approval of a statement of multiyear commitments mentioned in paragraph (3).

(5) Submission to Parliament of a report on the performance of multiyear commitments mentioned in section 21(4) of the Act may be substituted for by submission of a statement of multiyear commitments mentioned in paragraph (3).

(6) The amount of a multiyear commitment which has been approved by the Minister or, as the case may be, Parliament may not be increased unless:

  • (a) the increased amount of the multiyear commitment will not exceed the ceilings on expenditure in the medium-term expenditure framework; and

  • (b) the multiyear commitment is related to an investment project only.

(7) Any increase of the amount of a multiyear commitment shall be made upon approval by the Minister or, as the case may be, Parliament for a statement of multiyear commitments in which the proposed increase is included.

X. Inclusion of outstanding commitments in the government budget

(1) The annual estimates for a financial year shall include the amount of an item of expenditure sufficient to cover the aggregate portions of outstanding multiyear and other commitments to be paid during the financial year for the item of expenditure.

(2) A supplementary estimate may reduce the amount of an item of expenditure under the annual or supplementary estimates, only to the extent that the amount of the available provision after the reduction is still sufficient to cover the aggregate amount of outstanding commitments to be paid for the item of expenditure.

X. Verification of works, services, and supplies

(1) No payment shall be made from the Government budget for works, services, or supplies to which the Public Procurement and Disposal of Public Assets Act, 2003 applies, unless an Accounting Officer concerned or his authorized officer verifies that –

  • (a) the works, services, or supplies have been completed in accordance with their contracts or agreements; or

  • (b) if the contracts or agreements require to make a payment before the completion of the works, services, or supplies, the portions of the works, services, or supplies required for such payment have been completed in accordance with their contracts or agreements.

(2) Paragraph (1) shall not apply to an advance payment authorized under regulation

X. Certification of payment vouchers or electronic request of payment

(1) A payment voucher or electronic request of payment for expenditure of a vote from the Government budget shall be certified by the Accounting Officer of the vote or his authorized officer in such form and manner as specified by the Accountant-General.

(2) An Accounting Officer or his authorized officer shall not certify a payment voucher or electronic request of payment under paragraph (1), unless –

  • (a) the underlying commitment meets the requirements under regulation X(3);

  • (b) if applicable, the verification of the works, services, or supplies has been made under regulation X(1); and

  • (c) the payment voucher or electronic request of payment satisfies any other conditions as may be specified by the Accountant General.

(3) In authorizing officers to certify a payment voucher or electronic request of payment under paragraph (1), the Accounting Officer shall –

  • (a) specify, in writing, limits and conditions in respect of the authorities delegated to the officers; and

  • (b) notify the Accountant-General and Auditor-General of the names of the authorized officers and the limits and conditions on their authorities.

X. Payment process

(Current regulation 62 with necessary amendments)

X. Control and method of payments

(Current regulation 58 with necessary amendments)

X. Charging to year of account

(Current regulation 59 with necessary amendments)

X. Missing vouchers or supporting documents

(Current regulation 63 with necessary amendments)

X. Advance payments

(1) No public money shall be advanced from the Consolidated Fund, unless it is authorized under this regulation.

(2) Prior-approval of the Minister shall be obtained to make an advance payment from the Consolidated Fund.

(3) The Minister may approve an advance payment under paragraph (2) on such terms and conditions as he deems appropriate, only when, in his opinion, the advance payment is able to be repaid or regularized within the same financial year through completion of works, services, or supplies or deduction from a subsequent payment to the person receiving the advance payment or otherwise.

(4) The Minister may charge on an advance payment made under subsection (3) such interest as he deems appropriate.

(5) The Minister shall make instructions to prescribe procedures and conditions relating to approval of an advance payment under this regulation.

X. Expenditure in respect of public debt

(Current regulation 9 with necessary amendments)

X. Imprests

(Current regulations 64 and 65 with necessary amendments)

Salaries and wages

X. Salaries and wages

(Current regulations 71 and 72 with necessary amendments)

In-year adjustments

X. Supplementary estimates

(1) Subject to section 23(1) of the Act, the Minister shall lay before Parliament for its approval a supplementary estimate, when it intends to –

  • (a) increase or decrease an appropriation under the Appropriation Act or Supplementary Appropriation Act;

  • (b) create a new appropriation under the Appropriation Act or Supplementary Appropriation Act;

  • (c) change an ambit of an appropriation under the Appropriation Act or Supplementary Appropriation Act;

  • (d) increase or decrease an amount of an item of expenditure under the annual or supplementary estimates, if it cannot be increased or decreased through reallocation under regulation X; or

  • (e) change an ambit of a provision under the annual or supplementary estimates.

(2) A supplementary estimate shall classify the expenditures in the same manner as the annual estimates.

(3) A supplementary estimate may be laid before Parliament under section 23(1) of the Act –

  • (a) only after [January 1st] of the present financial year; and

  • (b) [three times] or less within a financial year.

(4) A supplementary estimate laid before Parliament under paragraph (1) shall be accompanied by a report which includes –

  • (a) updated forecasts of revenues and expenditures of the Government budget;

  • (b) an assessment of the fiscal impact of the supplementary estimate;

  • (c) statements of relevant Accounting Officers on the reasons for the supplementary estimate;

  • (d) any other information as may be deemed appropriate by the Minister.

X. Virement

(1) For the purpose of section 20 of the Act, an amount of an item of expenditure under the annual or supplementary estimates may not be reallocated between different votes, without approval through a supplementary estimate by Parliament.

(2) Subject to section 19(1) of the Act, the Minister may, on the request of the Accounting Officer concerned, reallocate an amount of an item of expenditure under the annual or supplementary estimates between different [programs] but within the same vote:

Provided that the aggregate amount of reallocation between different [programs] within the same vote may not exceed ten per cent of the total expenditure provided for the vote.

(3) The Accounting Officer of a vote may reallocate an amount of an item of expenditure under the annual or supplementary estimates within the same [program]:

Provided that the aggregate amount of reallocation within the same [program] may not exceed [ten] per cent of the total expenditure provided for the [program].

(4) When an Accounting Officer reallocates an item of expenditure under regulation (3), he shall notify the Minister of the reallocation in such form and manner as determined by the Minister.

(5) Notwithstanding paragraphs (2) and (3) and subject to section 19(2) of the Act, an amount of an item of expenditure under the annual or supplementary estimates shall not be reallocated –

  • (a) from development expenditure to recurrent expenditure;

  • (b) to any item of expenditure for wages, salaries, emoluments, allowances, or other employee cost;

  • (c) to increase or decrease grants or transfers to an entity or person or introduce new grants or transfers; or

  • (d) when such reallocation is prohibited by section 19(2) of the Act or instructions of the Minister.

(6) The Minister shall make instructions to prescribe –

  • (a) forms and procedures in respect of a request and notification of reallocation under paragraphs (2) and (4);

  • (b) prohibited reallocation; and

  • (c) any other matters necessary for implementation of this regulation.

X. Complementary period

(1) Notwithstanding regulation X(2)(c) and subject to section 15(2) of the Act, payments for expenditure from the Consolidated Fund on account of a financial year shall be made before July 31st of the following financial year:

Provided that the expenditure shall be committed by the end of the financial year.

(2) Revenues to be paid into the Consolidated Fund on account of a financial year shall be collected before July 31st of the following financial year.

(3) Expenditure from, and revenue of, the Consolidated Fund which is paid or collected after the date specified in paragraphs (1) and (2) shall be treated as expenditure and revenue on account of the following financial year and met by the following financial year’s appropriation, unless an appropriation for the expenditure is revoted under section 15(3) of the Act.

(4) The Accountant-General shall make instructions to prescribe any matters necessary for implementation of this regulation.

X. Revote of an appropriation

(1) When Parliament revotes an amount of an appropriation under an Appropriation Act or Supplementary Appropriation Act of a financial year under section 15(3) of the Act, the revoted amount of the appropriation shall be carried over to the next financial year.

(2) Subject to section 15(3) of the Act, Parliament may revote an amount of an appropriation for a financial year under paragraph (1), only when –

  • (a) the amount of the appropriation has been committed by the end of the financial year but has not yet been paid; and

  • (b) the revote is made for an investment project.

(3) For the purpose of section 15(3) of the Act, when an Accounting Officer of a vote intends to request revote of an appropriation for a financial year, the Accounting Officer shall, by [July 31st] of the next financial year, submit to the Minister in such form and manner as specified by the Minister a request for revote, which includes –

  • (a) an amount of an appropriation requested to be revoted;

  • (b) an item of expenditure under the annual or supplementary estimates to which the revote relates;

  • (b) an amount of outstanding commitments made for the item of expenditure; and

  • (c) an explanation of the reason to request the revote.

(4) For the purpose of section 15(3) of the Act, the Minister shall submit to Parliament for its approval a consolidated request for revote.

(5) Subject to section 15(4) of the Act, Parliament shall approve the consolidated request for revote submitted under paragraph (4) by August 31st of every financial year.

(6) An appropriation which is revoted in a financial year lapses and ceases to have any effect at the end of the financial year and an appropriation may not be revoted twice or more.

Excess expenditure and Contingencies Fund

X. Excess expenditure

(1) Subject to sections 23(3) of the Act, when it is identified during a financial year that there is an excess expenditure, the Accounting Officer responsible for the excess expenditure shall request the Minister to regularize the excess expenditure by using the Contingencies Fund.

(2) Subject to section 24(5) of the Act, the aggregate amount of excess expenditure regularized by use of the Contingencies Fund during a financial year shall not exceed eighty five percent of an appropriation for the Contingencies Fund of the financial year.

(3) Subject to sections 23(4), (5), (7) and (8) of the Act, the Minister may approve use of the Contingencies Fund to regularize an excess expenditure of a vote, only when –

  • (a) the aggregate amount of regularized excess expenditure of the vote does not exceed ten percent of total expenditure appropriated for the vote;

  • (b) the use of the Contingencies Fund for the excess expenditure does not cause –

    • (i) the ceiling on the aggregate amount of regularized excess expenditure mentioned in paragraph (2) to be exceeded; or

    • (ii) the Contingencies Fund to be exhausted; and

  • (c) the excess expenditure was unabsorbable, unavoidable, and unforeseeable within the meaning of section 23(8) of the Act when it was paid.

(4) Subject to sections 23(4) and (7) of the Act, the Minister may request Parliament to approve use of the Contingencies Fund to regularize an excess expenditure of a vote, when the aggregate amount of regularized excess expenditure of the vote exceeds ten percent of total expenditure appropriated for the vote.

(5) Subject to sections 23(7) and (8) of the Act, Parliament may approve use of the Contingencies Fund for an excess expenditure requested under paragraph (4), only when the conditions mentioned in paragraphs (3)(b) and (c) are met.

(6) Subject to sections 23(10) and 24(10), an excess expenditure during a financial year shall not be regularized by use of the Contingencies Fund, if it has been identified after the end of the financial year.

(7) Subject to section 23(3) of the Act, a supplementary estimate shall not be submitted under Article 156(2)(b) of the Constitution to regularize an excess expenditure, unless use of the Contingencies Fund is approved for that purpose under paragraph (3) or (5).

X. Contingencies Fund

(1) Subject to sections 24(1) and (3) of the Act, an appropriation for the Contingencies Fund shall not exceed three and a half percent of the total expenditure of the Government budget, unless a Supplementary Appropriation Act and supplementary estimate to increase the amount of the appropriation has been approved by Parliament.

(2) Subject to sections 24(4), (5), and (6) of the Act, the Minister may, on his own initiative or the request of the Accounting Officer of a vote, use any amount of the Contingencies Fund for an expenditure to respond to natural disasters.

(3) Subject to section 24(4) of the Act, the Contingencies Fund shall not be used except for regularizing an excess expenditure under regulation X or meeting an expenditure to respond to natural disasters under paragraph (2).

(4) As soon as practicable after the Minister issues a warrant to authorize use of the Contingencies Fund under section 24(8) for regularizing an excess expenditure or meeting an expenditure to respond to natural disasters, the Minister shall submit to Parliament for its approval a supplementary estimate to reallocate the amount used from the Contingencies Fund to a relevant item of expenditure.

Part IV – Cash, Asset, and Liability Management

Receipt

X. Responsibility for revenue collection

(Current regulation 44 with necessary amendments)

X. Revenue collectors

(Current regulation 45 with necessary amendments)

X. Revenue to be accounted in gross

(Current regulation 46 with necessary amendments)

X. Retention of revenue

(1) Subject to section 27(3)(a) of the Act, revenue of a vote in a form of levies, license or other fees, or fines of a vote may be appropriated by Parliament as an appropriation-in-aid.

(2) Subject to section 27(3)(b) of the Act, revenue of a vote arising from monetary grant exempted by the Minister under section 42 shall be an appropriation-in-aid.

(3) An appropriation-in-aid shall expire and cease to have any affect at the close of a financial year for which it is made.

(4) An appropriation-in-aid may be revoted by Parliament in accordance with section 15(3) of the Act and regulation X.

(5) [Section 27(3) of the Act shall not apply to a state enterprise or public corporation unless the state enterprise or public corporation is a vote.]

X. Restriction on method of payment

(Current regulation 47 with necessary amendments)

X. Responsibility for control of receipts

(Current regulation 48 with necessary amendments)

X. Receipts to be issued immediately

(Current regulation 49 with necessary amendments)

X. Foreign currency receipts

(1) Except with the prior approval of the Accountant-General, no foreign currency, notes, or coins or no foreign stamps or cheques drawn in foreign currency shall be accepted in payment of any moneys due to the Government.

(2) Paragraph (1) shall not apply to acceptance of payments by embassies, high commissions, and other missions abroad.

X. Acceptance of cheques

(Current regulation 51 with necessary amendments)

X. Recording of receipts

(Current regulation 52 with necessary amendments)

X. Refunds of revenue and drawbacks

(Current regulation 53 with necessary amendments)

X. Arrears of revenue returns

(Current regulation 54 with necessary amendments)

Cash Management and Banking Arrangements

X. Cash management functions of the Secretary to Treasury

(1) For the purpose of discharging his responsibilities mentioned in section 85(1) of the Act, the Secretary to Treasury shall establish an arrangement to –

  • (a) provide a reliable cash flow projections in respect of all bank accounts included in the Treasury Single Account and other bank accounts opened for votes;

  • (b) monitor and analyze continuously cash flow in relation to the Treasury Single Account;

  • (c) determine a level of an idle balance to be maintained in the Treasury Single Account;

  • (d) make regular reports on actual cash flow in comparison with cash flow projections; and

  • (e) coordinate the cash management with the management of the Government debt undertaken under section 40 of the Act.

(2) An annual and monthly cash flow plan mentioned in regulations X(1) and X(2) shall be prepared in accordance with guidelines and instructions of the Secretary to Treasury and supported by a relevant procurement plan, work plan, and recruitment plan.

X. Cash flow planning and expenditure limits

(1) For the purpose of section 12(1) of the Act, by such date as determined by the Secretary to Treasury, an Accounting Officer of any of the following entities shall submit to the Secretary to Treasury an annual cash flow plan, which includes cash flow projections broken down by [month/quarter]:

  • (a) votes; and

  • (b) extrabudgetary entities, bank accounts of which are included in the Treasury Single Account.

(2) In accordance with section 12(1) of the Act, the Secretary to Treasury shall prepare a consolidated annual cash flow plan which includes cash flow projections in respect of all bank accounts included in the Treasury Single Account and other bank accounts opened for votes.

(3) On preparation of a consolidated annual cash flow plan mentioned in paragraph (2), the Minister shall issue to every vote quarterly expenditure limits based on the consolidated annual cash flow plan.

(4) When actual cash flow is anticipated to diverge from projections in a consolidated annual cash flow plan mentioned in paragraph (2), the Minister may modify quarterly expenditure limits issued under paragraph (3) based on the consolidated cash flow plan revised in regulation X(1).

X. In-year cash flow forecasting and reporting

(1) The Secretary to Treasury shall revise a consolidated cash flow plan mentioned in regulation X(2) on a rolling basis.

(2) By such date as determined by the Secretary to Treasury, the Accounting Officer of any of the following entities shall submit to the Secretary to Treasury a [monthly/quarterly] cash plan covering the timing of expected receipts and payments of the entity:

  • (a) votes, including the Uganda Revenue Authority in respect of receipts of its collected revenues and payments of its expenditure; and

  • (b) extrabudgetary entities, bank accounts of which are included in the Treasury Single Account.

(3) A [monthly/quarterly] cash plan submitted under paragraph (2) shall include –

  • (a) updated cash flow projections broken down by [month/quarter]; and

  • (b) actual cash flow of preceding months in comparison with cash flow projections in an annual cash flow plan submitted under regulation X(1).

(3) When significant fluctuation in cash flow is anticipated, the Accounting Officer of the following entity shall immediately notify the Secretary to Treasury of the fluctuation.

  • (a) a vote; or

  • (b) an extrabudgetary entity, bank accounts of which are included in the Treasury Single Account.

X. Cash Management Committee

(1) For the purpose of discharging his responsibilities mentioned in section 85(1) of the Act, the Secretary to Treasury shall establish a Cash Management Committee which advises the Secretary to Treasury on cash management and banking arrangements across the general government.

(2) The Secretary to Treasury shall determine the composition and responsibilities of the Cash Management Committee.

X. Establishment of a Treasury Single Account

(1) For the purpose of section 33(1) of the Act, the Secretary to Treasury hereby prescribes a Treasury Single Account as the framework for the banking activities mentioned in the said section of the Act.

(2) Unless expressly authorized by the Secretary to Treasury, the Treasury Single Account shall, at a minimum, include all bank accounts opened for the following entities or projects:

  • (a) votes which are not local governments;

  • (b) extrabudgetary entities; and

  • (c) externally financed projects of entities mentioned in paragraph (a) or (b).

X. Operations of the Treasury Single Account

(1) Management of any accounts included in the Treasury Single Account, including their sweeping to other accounts, shall be conducted in compliance with instructions and guidelines issued by the Secretary to Treasury.

(2) The Treasury Single Account shall satisfy, at a minimum, the following requirements:

  • (a) accounts with commercial banks, into which revenues of the Government collected by the Uganda Revenue Authority or any other vote except for a local government are deposited, shall be swept daily, unless otherwise provided by instructions and guidelines mentioned in paragraph (1); and

  • (b) the balances of all accounts included in the Treasury Single Account shall be daily reported by the Bank of Uganda to the Accountant-General.

X. Operations of accounts not included in the Treasury Single Account

Management of any accounts which are opened for votes or extrabudgetary entities but not included in the Treasury Single Account shall be conducted in compliance with instructions and guidelines issued by the Secretary to Treasury.

X. Bank account management

(1) In accordance with section 33(2) of the Act, any votes, externally financed projects, and extrabudgetary entities shall not open, close, or suspend a bank account without the written authority of the Accountant-General.

(2) Subject to section 33(9) of the Act, the Accountant-General may suspend, close, or impose conditions on, a bank account opened for a vote, externally financed project, or extrabudgetary entity, if he reasonably believes that –

  • (a) the bank account is inactive or does not comply with the purposes of the Treasury Single Account;

  • (b) fraudulent transactions are undertaken in the bank account; or

  • (c) the management of the bank account contravenes the Act, this Regulation, or guidelines or instructions mentioned in regulation X(1) or X.

(3) Subject to section 33(9) of the Act, no bank account opened for a vote, externally financed project, or extrabudgetary entity shall be overdrawn, and no advance or loan may be obtained from the bank account, without prior authority of the Minister through the Accountant-General.

(4) Subject to section 33(9) of the Act, the Accountant-General may prescribe a maximum balance of a bank account opened for a vote, externally financed project, or extrabudgetary entity.

(5) When a balance of a bank account is likely to exceed the limit prescribed under paragraph (4), the Accounting Officer responsible for the bank account shall consult with the Accountant-General on the action to be taken.

X. Access to information on bank accounts and their registers

(1) For the purpose of section 33(11) of the Act, the Accountant-General shall not grant authority to open a bank account under regulation X(1), unless the Accountant-General is entitled to obtain from the financial institution a statement of the account without authorization of signatories of the account.

(2) An Accounting Officer of a vote, externally financed project, or extrabudgetary entity shall ensure that the Accountant-General is entitled to obtain from any financial institutions, with which the vote, project, or entity opens bank accounts, statements of any bank accounts without authorization of signatories of the accounts.

(3) The Accountant-General may require any information on bank accounts from the Accounting Officer or any other officer of a vote, externally financed project, extrabudgetary entity, other local government, or public enterprise.

(4) An Accounting Officer of a vote, externally financed project, extrabudgetary entity, other local government, or public enterprise shall

  • (a) maintain a register of all bank accounts opened or the vote, project, entity, local government, or public enterprise; and

  • (b) report to the Accountant-General the register, whenever there is a change in registered information and at least quarterly.

(5) The Accountant-General shall maintain a consolidated register of all bank accounts opened for a vote, externally financed project, extrabudgetary entity, other local government, or public enterprise.

X. Reconciliation of bank accounts

(1) Every Accounting Officer of a vote or extrabudgetary entity shall ensure that bank account reconciliation is undertaken –

  • (a) daily in respect of bank accounts included in the Treasury Single Account; and

  • (b) at such intervals as determined by the Accountant-General but at least monthly in respect of other bank accounts.

(2) Bank account reconciliation similar to the one described in paragraph (1) shall be carried out when responsibility for any bank account or cheque book is handed over from one public officer to another and on the occasion of any surprise inspection or survey.

(3) A reconciliation statement shall be filed or recorded in such manner and at such intervals as determined by the Accountant-General, and a copy of a reconciliation statement approved by the Accounting Officer shall be sent to the Accountant-General or in case of bank accounts operated by the Accountant-General the copy shall be sent to the Secretary to Treasury.

(4) In accordance with regulation X(2)(c), the Accountant-General suspend, close, or impose conditions on, a bank account opened for a vote, externally financed project, or extrabudgetary entity, when the Accounting Officer of the vote, project, or entity fails to send a reconciliation statement to the Accountant-General under paragraph (3).

(5) When any discrepancy is identified through bank account reconciliation under this regulation, the Accounting Officer shall immediately notify the Accountant-General of the discrepancy and take any necessary action in accordance with instructions of the Accountant-General.

X. Payment instruments

(Current regulations 82(4), (5), and (6) and 83 with necessary amendments)

X. Investment of public money

(1) For the purpose of section 30 of the Act, the Minister may authorize the Bank of Uganda to invest an idle balance in the Treasury Single Account which shall be determined by the Secretary to Treasury on the advice of the Accountant-General.

(2) Investment under paragraph (1) may be made only into financial instruments specified under section 30 of the Act.

(3) For the purpose of investment under paragraph (1), the Secretary to Treasury shall, in consultation with the Bank of Uganda and with the approval of the Minister, prepare an investment policy of public money which includes –

  • (a) the classes of permissible investment assets and the selection criteria for an individual investment asset;

  • (b) the policies for risk management; and

  • (c) any other matters as may be deemed appropriate by the Secretary to Treasury.

(4) An investment policy of public money mentioned in paragraph (3) shall take into account, and be revised in light of, a consolidated cash flow plan mentioned in regulation X(1).

X. Agreement with the Bank of Uganda

For the purpose of sections 30 and 33(1) of the Act, the Minister shall conclude with the Bank of Uganda an agreement in respect of –

  • (a) operations and payment arrangements of the Treasury Single Account;

  • (b) investments authorized under regulation X(1); and

  • (c) any other matters relating to the responsibilities of the Bank of Uganda as a depository of public money mentioned in section 33(7) of the Act.

Public debt

X. Objectives of the management of the Government debt

The Minister shall conduct the management of the Government debt under section 40(1) for the purpose of raising loans at the lowest possible cost over the medium to long term with a prudent degree of risk in accordance with the fiscal policy objectives under the Charter of Fiscal Responsibility.

X. Coordination for the management of the Government debt

(1) For the purpose of discharging his responsibility mentioned in section 40 (1) of the Act, the Minister shall establish an arrangement to coordinate the management of the Government debt undertaken by the Ministry and the Bank of Uganda.

(2) The arrangement mentioned in paragraph (1) shall include establishment of a committee composed of the representatives of the Ministry and the Bank of Uganda.

(3) The Minister shall determine the composition and responsibilities of the committee mentioned in paragraph (2).

(4) The Minister shall conclude with the Bank of Uganda an agreement on their respective responsibilities for –

  • (a) auctioning or sale of Government securities in the primary market;

  • (b) payments of principal and interest of the Government debt;

  • (c) disclosure and exchange of information; and

  • (d) any other matters relating to the management of the Government debt.

X. Medium-term debt management strategy

(1) The medium-term debt management strategy mentioned in section 40(4) of the Act shall be prepared and revised by the Minister on a rolling basis.

(2) The medium-term debt management strategy shall be submitted by the Minister, with the approval of the Cabinet, to Parliament as part of the Government budget documents.

(3) The medium-term debt management strategy shall include a policy framework for the management of the Government debt and be derived from –

  • (a) the Charter of Fiscal Responsibility and fiscal policy objectives prescribed thereunder;

  • (b) the National Budget Framework Paper and ceilings on expenditure and macroeconomic and fiscal forecasts included therein;

  • (c) the borrowing needs of the Government;

  • (d) the current macroeconomic and financial market conditions; and

  • (e) any other relevant factors.

X. Annual plans and reports on the Government debt and guarantees

(1) Annual plans for the Government debt and guarantees of a financial year mentioned in sections 10(8)(a)(iii) and (iv) of the Act shall be included in the medium-term debt management strategy mentioned in regulation X(3).

(2) In addition to the contents mentioned in section 40(3) of the Act, an annual report on the management of the Government debt, guarantees, and financial liabilities shall include –

  • (a) data on the outstanding Government debt;

  • (b) a list of outstanding guarantees; and

  • (c) information on called guarantees and recovery of their amount.

X. Conditions on guarantees on a loan

(1) For the purpose of section 37(1) of the Act, the Minister may not guarantee a loan which is raised by any entity mentioned in the said section of the Act and for implementing a project or PPP project, unless the following requirements are met:

  • (a) the entity demonstrates that the project or PPP project could not be financed on reasonable terms and conditions without the guarantee;

  • (b) the entity provides the Minister with the draft loan agreement or contract and the disbursement schedule and repayment plan of the loan;

  • (c) the entity finances from its own revenues other than the loan more than [thirty] percent of the total expenditure for completing the project or PPP project;

  • (d) the entity agrees with the Minister on plans for debt recovery in case that the guarantee is called;

  • (e) the project or PPP project is included in the Public Investment Plan or combined report mentioned in regulation X(1) or (3); and

  • (f) in case of a loan raised for implementing a PPP project, [contracts on the PPP project have been approved by […] in accordance with the Public-Private Partnership Act, 2014].

  • (g) any other requirements as may be specified by the Minister.

(2) The Minister shall not guarantee a loan of a private sector entity under section 37(1)(d) of the Act, unless –

  • (a) all requirements prescribed in paragraph (1) are met;

  • (b) the loan is raised for implementing a project or PPP project which has been included in the Public Investment Plan;

  • (c) the loan is secured by adequate collateral; and

  • (d) the private sector entity and the loan satisfy any other conditions as may be specified by the Minister.

(3) The ceilings on guarantees mentioned in section 37(3)(a) of the Act shall include a separate ceiling on outstanding guarantees on a loan of a private sector entity provided under section 37(1)(d) of the Act.

(4) The Minister shall make guidelines to prescribe conditions on guaranteeing a loan under 37(1).

X. Authority for loans and advances

(Current regulation 67 with necessary amendments)

X. Loans and advances to be secured by agreements

(Current regulation 68 with necessary amendments)

X. Accountant-General to control issues and repayments

(Current regulation 69 with necessary amendments)

X. Monitoring of guarantees and loans

(1) The Minister shall maintain and keep up-to-date a register of guarantees provided by him and loans granted from the Consolidated Fund.

(2) A register mentioned in paragraph (1) shall include information on –

  • (a) the contractual terms and conditions on guarantees and loans;

  • (b) the performance of contractual obligations in respect of loans;

  • (c) the performance of underlying loans and obligations in respect of guarantees; and

  • (d) any other matters as may be deemed appropriate by the Minister.

(3) Any person whose loan has been guaranteed by the Minister shall obtain the approval of the Minister prior to amending the loan agreement.

(4) Any person whose loan has been guaranteed by the Minister shall provide the Minister with information on performance of underlying loans and obligations at such intervals and in such form and manner as determined by the Minister.

(5) In addition to the requirement under paragraph (4), the Minister may require any information relating to a guarantee provided by him and a loan granted from the Consolidated Fund from –

  • (a) any votes, local governments, and other entities included in the general government; and

  • (b) any person to whom the guarantee or loan is provided.

(6) The Minister shall make instructions or guidelines to prescribe the criteria and procedures to assess risks of guarantees provided by him and loans granted from the Consolidated Fund and monitor and manage the guarantee and loan portfolios.

Project appraisal and implementation

X. Appraisal of externally financed and other projects

(1) For the purpose of section 41(3) of the Act, the Minister shall not make a provision for an externally financed project of a vote in the estimates, unless the Accounting Officer of the vote submits to the Minister a report on the result of costing and appraisal of the project.

(3) The Minister may make guidelines to prescribe the procedures, criteria, methodologies, and information requirements in respect of appraisal, selection, and implementation of externally financed and other projects of a vote.

(4) The guidelines of the Minister mentioned in paragraph (3) shall be consistent with the [Public-Private Partnership Act, 2014] in respect of appraisal, selection, and implementation of PPP projects of a vote.

X. Projects implemented by nongovernmental organizations

(1) A project of a vote, extrabudgetary fund, other local government, or public enterprise shall not be implemented by a nongovernmental organization, unless the nongovernmental organization –

  • (a) is registered under the Nongovernmental Organizations Registration Act, 1989 or by a foreign government authority;

  • (b) has an effective governance structure;

  • (c) is financially viable; and

  • (d) has expertise and resources sufficient to implement the project.

(2) A nongovernmental organization implementing a project of a vote, extrabudgetary fund, other local government, or social security fund shall submit to the Accounting Officer responsible for the project –

  • (a) the audited annual financial statements;

  • (b) the articles of association or other constituent document and any revision thereof; and

  • (c) any other information relating to its financial performance and governance as may be required by the Accounting Officer.

Custody of public money and handing over procedures

X. Provision of security facilities

(Current regulation 81 with necessary amendments)

X. Handing over procedures

(Current regulations 86 to 87 with necessary amendments)

Financial assets management

X. Financial assets management

[to be filled – a reference could be made to Part VII of this Regulation]

X. Audit of public enterprises by the Auditor-General

[The Auditor-General shall be an auditor of all public enterprise. Note: the law or regulation which restricts the Auditor-General’s audit of public enterprises needs to be also amended.]

Fixed asset management

X. Non-current assets

(Current regulations 100 to 106 with necessary amendments – the specific oversight arrangements for larger fixed assets would need to be established)

X. Boards of Survey

(Current regulations 84 and 85 with necessary amendments)

X. Public stores and inventories

(Current regulations 89 and 99 with necessary amendments)

Losses of public money and resources

X. Losses

(Current regulations 16 to 26 with necessary amendments)

Remission and write-off of claims

X. Exclusion of certain claims from remission and abandonment powers

The Minister hereby excludes from the application of his abandonment and remission powers under section 44(1) of the Act the following claims of the Government:

  • (a) tax claims;

  • (b) fines, penalties, forfeitures, and other claims of a similar nature; and

  • (c) ….[to be filled].

X. Criteria on remission, abandonment, and write-off of claims

[To be filled]

X. Procedures for remission, abandonment, and write-off of claims

[To be filled]

X. Reporting and recording of remission, abandonment, and write-off of claims

[To be filled]

Surcharges against loss of public money or resources

X. Surcharges

(Current regulation 108 with necessary amendments)

Part V – Accounting and Auditing

Accounting Officer

X. Accounting Officer

(1) In addition to the responsibilities assigned to him under sections 45(1) and (2) of the Act, an Accounting Officer of a vote shall –

  • (a) advise the head of the vote on formulation and preparation of its objectives, strategies, policies, estimates, and work plans;

  • (b) ensure proper costing and appraisal of projects and PPP projects and monitor their implementation;

  • (c) certify a payment voucher or electronic request of payment for expenditure of a vote from the Government budget;

  • (d) safeguard and manage assets and public money under the responsibilities of the vote;

  • (e) make commitments within available provisions and expenditure limits in accordance with this Regulation;

  • (f) submit to the Secretary to Treasury or Accountant-General in- and end-year reports, such as cash flow plans, monthly and quarterly budget reports, quarterly expenditure commitment reports, half-year financial statements, half-year performance reports, and annual accounts;

  • (g) institute investigation of, and initiate the disciplinary process against, loss of public money or assets, illegal payments, or non-compliance with the Act, this Regulation, or instructions or directives issued thereunder; and

  • (h) reply in a timely manner to any queries addressed by the Auditor-General and ensure implementation of audit recommendations of the Auditor-General through preparation of [statements of actions mentioned in regulation X].

(2) An extrabudgetary entity, local government which is not a vote, and public enterprise shall have an Accounting Officer who has, in respect of the entity, the same responsibilities as those of an Accounting Officer of a vote mentioned in section 45 of the Act and regulation X.

(3) An Accounting Officer of an entity mentioned in paragraph (1) shall be appointed by the Secretary to Treasury.

(4) An extrabudgetary entity, local government which is not a vote, and public enterprise shall annually notify the Secretary to Treasury of the name and position of the Accounting Officer of the entity.

(5) The Accounting Officer of a vote shall perform his responsibilities in accordance with the Act, this Regulation, instructions or directives issued thereunder.

X. Management of subvention by an Accounting Officer of a vote

(1) For the purpose of section 45(4) of the Act, an Accounting Officer of a vote shall maintain appropriate arrangements to ensure that subvention and grants given by the vote to other entities and persons are applied for the intended purposes.

(2) The arrangements mentioned in paragraph (1) shall be established in accordance with instructions and guidelines of the Accountant-General.

Accounting and financial reporting

X. Accounting standards

(1) Subject to section 51(3)(a) of the Act, the annual financial statements of the following entities shall be prepared in accordance with generally accepted accounting practice approved by the Accountant-General:

  • (a) a vote;

  • (b) an extrabudgetary entity;

  • (c) [a district hospital, health unit, secondary or primary school, or other local government which is not a vote]; and

  • (d) a public enterprise.

(2) Generally accepted accounting practice to be prescribed by the Accountant-General under section 4 of the Act shall be internationally accepted accounting standards by having due regard to relevant guidance provide by the Institute of Certified Public Accountants of Uganda.

(3) For the purpose of section 46(7) of the Act, the Accountant-General shall make instructions or guidelines to prescribe –

  • (a) the processes, data standards, and forms to be used when making financial reporting required under the Act and this Regulation;

  • (b) the accounting policies to support application of generally accepted accounting practice;

  • (c) the requirements relating to operations of accounting and financial management systems; and

  • (d) any other matters necessary for accounting and recording of financial transactions.

(5) The instructions and guidelines mentioned in paragraph (4) shall be in accordance with generally accepted accounting practice and may apply to any entities listed in paragraph (3).

X. Chart of Accounts

(1) For the purpose of section 46(4)(a), the Accountant General shall determine and publish in the website of the Ministry the chart of accounts which is uniformly applied to recording of financial transactions of the following entities:

  • (a) votes;

  • (b) extrabudgetary entities; and

  • (c) local governments which are not votes.

(2) The classification of revenues, expenditures, and other financial transactions under the Government budget and the estimates of revenues and expenditures of the entities listed in paragraph (1) shall be the same as that under the chart of accounts.

(3) For the purpose of section 46(4)(a), the Accountant-General may determine and publish in the website of the Ministry a chart or charts of accounts which are applied to recording of financial transactions of public enterprises.

(4) The Accountant-General may, on the proposal of an Accounting Officer of a vote, extrabudgetary entity, other local government, or public enterprise, modify the chart of accounts determined under paragraph (1) or (3).

X. Monthly and quarterly financial reporting

(1) For the purpose of section 50(1) of the Act, an Accounting Officer of a vote shall, by [10th day] of every month, submit to the Accountant-General a monthly budget report in such form and manner as prescribed in instructions and guidelines of the Accountant-General under regulation X(4).

(2) A monthly budget report of a vote mentioned in paragraph (1) shall include –

  • (a) actual monthly revenues and expenditures;

  • (b) forecasts of monthly revenues and expenditures for the remainder of the financial year; and

  • (c) any other information as prescribed by the Accountant-General.

(3) Submission of a quarterly report on activities and budget execution of a vote required under section 18(3) of the Act may be replaced by submission of a monthly budget report under paragraph (1).

(4) For the purpose of sections 29(9) and 50(1) of the Act, an Accounting Officer of a subvented entity, extrabudgetary entity, or local government shall, within [one month] after the end of every quarter, submit to the Accountant-General a quarterly budget report in such form and manner as prescribed in instructions and guidelines of the Accountant-General under regulation X(4).

(5) A quarterly budget report of an entity mentioned in paragraph (3) shall include –

  • (a) actual quarterly revenues and expenditures, which are accounted for in the Consolidated Fund or any other funds under the entity’s responsibility;

  • (b) forecasts of quarterly revenues and expenditures for the remainder of the financial year, which are accounted for in the Consolidated Fund or any other funds under the entity’s responsibility; and

  • (c) any other information as prescribed by the Accountant-General.

(6) For the purpose of section 50(1) of the Act, an Accounting Officer of a public enterprise shall, within [one month] after the end of every quarter, submit to the Accountant-General a quarterly financial report in such form and manner as prescribed in instructions and guidelines of the Accountant-General under regulation X(4).

(7) A quarterly financial report of a public enterprise mentioned in paragraph (3) shall include –

  • (a) actual financial outcomes per quarter; and

  • (b) any other information as prescribed by the Accountant-General.

X. Responsibilities for compilation and dissemination of financial statistics

In relation to his responsibilities under section 46(1) of the Act, the Minister shall ensure that consolidated financial statistics covering the general government and public sector are complied at least annually in accordance with internationally accepted standards in an area of financial statistics.

X. Half-year financial statements

(1) For the purpose of section 50(1) of the Act, by 15th February of each financial year, an Accounting Officer of each vote shall prepare and submit to the Accountant General the half-year financial statements.

(2) The half-year financial statements of a vote mentioned in paragraph (1) shall be submitted in such form and manner as prescribed in instructions and guidelines of the Accountant-General under regulation X(4).

(3) For the purpose of section 50(3) of the Act, the Accountant-General shall prepare and submit to the Secretary to Treasury the half-year consolidated financial statements which have the same coverage as the annual consolidated financial statements mentioned in section 52(1) of the Act.

X. Submission of annual financial statements

(1) Subject to sections 51(1) of the Act, within two months after the end of each financial year, an Accounting Officer of a vote shall submit to the Accountant General financial statements and information specified in Schedule 5, paragraph 2, of the Act in respect of financial transactions accounted for in the Consolidated Fund.

(2) Subject to section 51(2) of the Act, within two months after the end of each financial year, an Accounting Officer of a public enterprise shall submit to the Accountant-General a summary statement of financial performance mentioned in the said section of the Act.

(3) Subject to section 29(9) of the Act, within [three] months after the end of each financial year, an Accounting Officer of the following entity shall submit to the Accountant-General and the Auditor-General for his audit the annual financial statements:

  • (a) a subvented entity;

  • (b) an extrabudgetary entity;

  • (c) a local government; and

  • (d) a public enterprise.

X. Consolidated annual financial statements

(1) Subject to section 52(1) of the Act, within three months after the end of each financial year, the Accountant-General shall prepare and submit to the Minister and the Auditor-General for his audit the annual consolidated financial statements mentioned in the said section of the Act.

(3) Within [six] months after the end of each financial year, the Accountant-General shall submit to the Minister and the Auditor-General for his audit the consolidated financial statements of the central government which consolidate financial statements of the self-accounting departments, commissions, and organizations, departments, subvented entities, and extrabudgetary entities.

(4) Subject to section 52(1)(c) of the Act, within three months after the end of each financial year, the Accountant-General shall submit to the Minister the consolidated summary statement of financial performance of public enterprises, which shall be immediately published by the Minister in the website of the Ministry.

(5) The consolidated summary statement of financial performance shall include –

  • (a) aggregate actual financial outcomes of all public enterprises;

  • (b) aggregate financial positions of all public enterprises;

  • (c) information on grants, transfers subvention, guarantees, and other financial assistance provided under the Government budget; and

  • (d) any other information as may be deemed appropriate by the Accountant-General.

X. Publication of audited financial statements

(1) Subject to section 51(4) of the Act and section 19(2) of the National Audit Act, 2008, within nine months, or such longer period as Parliament by resolution appoint, after the end of each financial year, an Accounting Officer of the following entities shall submit to the Accountant-General the audited annual financial statements and publish them in such manner as prescribed in instructions and guidelines of the Accountant-General under regulation X(4):

  • (a) a subvented entity;

  • (b) an extrabudgetary entity;

  • (c) a local government; and

  • (d) a public enterprise.

(2) Subject to section 19(2) of the National Audit Act, 2008, within six months after the end of each financial year, the Accountant-General shall submit to the Minister the audited financial statements of the Consolidated Fund, which shall be immediately published by the Minister in the website of the Ministry.

(3) The consolidated financial statements of the central government mentioned in regulation X(3) shall be audited by the Auditor-General in accordance with the National Audit Act, 2008.

(4) Within [twelve] months after the end of each financial year, the Accountant-General shall submit to the Minister the audited consolidated financial statements of the central government, which shall be immediately published by the Minister in the website of the Ministry.

[X. Treasury Memorandum]

[to be filled]

[X. Statement of actions taken for audit recommendations]

[to be filled]

X. Accounting and bookkeeping

(Current regulations 73 to 80 with necessary amendments)

Internal audit and Audit Committees

X. Internal audit and Audit Committee

(Current regulations 27 and 30 with necessary amendments)

Part VI – Petroleum Revenue Management

Interpretation

X. Interpretation under this Part

In this Part, –

  • “classes of assets” exclude in any case acquisition or creation of any asset listed in regulation X(1);

  • “Fund” means the Petroleum Fund established under section 54(1) of the Act;

  • “infrastructure and development project” mean a project or PPP project which –

    • (a) is included in a Public Investment Plan; and

    • (b) has objectives for infrastructure or economic development prioritized under the National Development Plan;

  • “petroleum revenue” includes any revenues of the Government named in Schedule X;

  • “investment” excludes in any case acquisition or creation of any asset listed in regulation X(1);

The Fund

X. Establishment of the Fund

(1) For the purpose of section 54(1) of the Act, the Fund is a pool of assets and does not have a legal personality or its own estimates of revenue or expenditure.

(2) For the purpose of sections 54(3) and 57(1) of the Act, the Fund shall be a vote, and the Secretary to Treasury shall be the Accounting Officer of the Fund.

(3) For the purpose of section 54(1) of the Act, the Fund consists of –

  • (a) public money and petroleum received as petroleum revenue;

  • (b) investments of public money mentioned in paragraph (a); and

  • (c) public money accruing as interest, dividends, returns, and profits of investments mentioned in paragraph (b).

(4) For the purpose of section 54(1) of the Act, the Government shall be the legal and beneficial owner of the Fund.

(5) For the purpose of sections 54(3) and 60(1) of the Act, the Fund shall be accounted for in separate financial accounts comprising –

  • (a) the Petroleum Revenue Holding Account; and

  • (b) the Petroleum Revenue Investment Account.

(6) For the purpose of sections 54(3) and 57(7) of the Act, the following assets of the Fund shall be accounted for in the Petroleum Revenue Holding Account:

  • (a) public money and other assets received as petroleum revenue and deposited under regulation X(1);

  • (b) investments of public money mentioned in paragraph (a) under section 57(6) of the Act; and

  • (c) public money accruing as interest, dividends, returns, and profits of investments mentioned in paragraph (b).

(7) For the purpose of sections 60(1) and 61(1) of the Act, the following assets of the Fund shall be accounted for in the Petroleum Revenue Investment Account:

  • (a) public money transferred from the Petroleum Revenue Holding Account under section 60(1) of the Act;

  • (b) investments of public money mentioned in paragraph (a) under section 61(1) of the Act; and

  • (c) public money accruing as interest, dividends, returns, and profits of investments mentioned in paragraph (b).

X. Objectives of the Fund

The objective of the Fund is to –

  • (a) insulate expenditure for infrastructure and development projects under the Government budget from large fluctuations in petroleum revenue; and

  • (b) without prejudice to paragraph (a), provide a heritage for future generations from savings and investment income derived from petroleum revenue.

X. Deposits into the Fund

(1) For the purpose of section 54(2) of the Act, all public money and other assets received as petroleum revenue shall be deposited, on a gross basis and without any deduction, into the Fund.

(2) For the purpose of section 55(5) of the Act and subject to section 55(4) of the Act, petroleum received as petroleum revenue shall be, until the petroleum is sold or disposed of under section 55(6), –

  • (a) held by the National Oil Company in trust for the Fund; and

  • (b) recorded and safeguarded by the National Oil Company in accordance with instructions and guidelines of the Accountant-General.

X. Withdrawal of the Fund

(1) For the purpose of section 56 of the Act, the Fund shall not be withdrawn, unless –

  • (a) the withdrawal is authorized by an appropriation under an Appropriation Act; and

  • (b) the withdrawal is within the balance of the Petroleum Revenue Holding Account.

(2) For the purpose of sections 57(1) and (3) of the Act, the amount withdrawn from the Fund under paragraph (1) may be –

  • (a) transferred only to the Consolidated Fund; and

  • (b) spent only for meeting capital expenditure for infrastructure and development projects under the Government budget.

(3) The amount withdrawn from the Fund under paragraph (1) shall be determined in accordance with –

  • (a) the objectives of the Fund;

  • (b) the fiscal policy objectives under the Charter of Fiscal Responsibility; and

  • (c) the fiscal responsibility principles under section 5(2) of the Act.

(4) For the purpose of Schedule 3, paragraphs 5(c) and 7, of the Act, the National Budget Framework Paper shall include –

  • (a) ceilings on annual withdrawal from the Fund for the next five years;

  • (b) a description of how the ceilings on annual withdrawal under paragraph (a) accord to the objectives of the Fund, the fiscal policy objectives, and the fiscal responsibility principles;

  • (c) macroeconomic and fiscal forecasts, data, and assumptions which support the description mentioned in paragraph (b); and

  • (d) medium term estimates for the amount of royalties allocated to local governments under section 73(1) of the Act.

X. Assessment of projects and PPP projects financed by transfers from the Fund

(1) For the purpose of section 57(3) of the Act, the public investment management guidelines mentioned in regulation X shall prescribe the procedures, criteria, methodologies, and information requirements for assessment of economic and social impacts of projects and PPP projects to be financed by transfers from the Fund.

(2) The results of the assessment under paragraph (1) shall be included in a Public Investment Plan in accordance with regulation X(2)(f).

X. Operations of the Petroleum Revenue Holding Account

(1) Any deposits of petroleum revenues into the Fund under regulation X(1) shall be made to the Petroleum Revenue Holding Account.

(2) For the purpose of sections 54(2) and 55(6) of the Act, all public money received as petroleum revenue or proceeds of sale of crude petroleum received as petroleum revenue shall be deposited into a single bank account opened with the Bank of Uganda for the Petroleum Revenue Holding Account.

(3) The single bank account opened for the Petroleum Revenue Holding Account shall be included in the Treasury Single Account.

(4) For the purpose of section 57(6) of the Act, an idle balance in the single bank account opened for the Petroleum Revenue Holding Account shall be invested in accordance with section 30 of the Act and regulation X.

(5) For the purpose of section 56 of the Act, any withdrawal of the Fund under regulation X(1) shall be made from the Petroleum Revenue Holding Account.

(6) For the purpose of sections 56 and 57(5) of the Act, a transfer of public money from the single bank account opened for the Petroleum Revenue Holding Account to other bank account opened for the Consolidated Fund shall be made –

  • (a) within an authority of a warrant of the Minister issued under section 32(1) of the Act; and

  • (b) in accordance with a consolidated cash flow plan issued and revised under regulations X(1) and X(2).

(7) Regulations X, X, and X shall apply to the operations of the single bank account opened for the Petroleum Revenue Holding Account.

(8) The Fund may not borrow in any case on account of the Petroleum Revenue Holding Account.

X. Transfers to and from the Petroleum Revenue Investment Account

(1) For the purpose of section 60(3) of the Act, when the amount of petroleum revenues deposited into the Fund under regulation X(1) exceeds the amount withdrawn from the Fund under regulation X(1)(a), the amount of the excess shall be transferred from the Petroleum Revenue Holding Account to the Petroleum Revenue Investment Account.

(2) For the purpose of section 60(1) of the Act, the amount of an appropriation under an Appropriation Act for transfers from the Petroleum Revenue Holding Account to the Petroleum Revenue Investment Account shall be sufficient to cover the amount of the excess mentioned in paragraph (1).

(3) For the purpose of section 60 (2) of the Act, a transfer of public money from the single bank account opened for the Petroleum Revenue Holding Account to a bank account opened for the Petroleum Revenue Investment Account shall be made –

  • (a) within an authority of a warrant of the Minister issued under section 32(1) of the Act; and

  • (b) in accordance with a consolidated cash flow plan issued and revised under regulations X(1) and X(2).

(4) Regulations X, X, and X shall apply to the operations of bank accounts opened for the Petroleum Revenue Investment Account.

(5) Any assets of the Petroleum Revenue Investment Account shall not be transferred or withdrawn to the Petroleum Revenue Holding Account or any other fund or account, unless the Act is amended.

The management of the Petroleum Revenue Investment Account

X. Responsibilities of the Minister

For the purpose of section 54(3) of the Act, the Minister shall, in respect of the investment and management of the Petroleum Revenue Investment Account, –

  • (a) issue the petroleum revenue investment policy mentioned in section 61(1) of the Act;

  • (b) oversee the implementation of the petroleum revenue investment policy and the compliance with the Act and this Regulation by the Bank of Uganda particularly through the approval of an annual plan mentioned in section 69(1) of the Act;

  • (c) review the investment, management, and performance of the Petroleum Revenue Investment Account through monthly, half-year, and annual reports submitted under sections 68(1) and (2) and 70(1) of the Act and other reports submitted under section 69(5) of the Act;

  • (d) submit an annual plan and report of the Petroleum Revenue Investment Account to Parliament under sections 69(3) and 70(3) of the Act; and

  • (e) appoint the members of the Investment Advisory Committee under section 65(2) of the Act.

X. Responsibilities of the Bank of Uganda

For the purpose of section 62(1) of the Act, the Bank of Uganda shall, in respect of the investment and management of the Petroleum Revenue Investment Account, –

  • (a) manage and invest assets of the Petroleum Revenue Investment Account in accordance with the petroleum revenue investment policy, the Act, and this Regulation;

  • (b) advise the Minister on determining the petroleum revenue investment policy;

  • (c) appoint, oversee, and evaluate external investment managers and custodians for the Petroleum Revenue Investment Account;

  • (d) formulate detailed policies necessary for the investment and management of the Petroleum Revenue Investment Account, including, without limitation, policies on –

    • (i) risk management mentioned in section 62(6)(a) of the Act;

    • (ii) compliance;

    • (iii) internal controls and audits;

    • (iv) accountabilities; and

    • (v) the code of conduct;

  • (e) maintain records and accounts of the Petroleum Revenue Investment Account in accordance with section 67(1) of the Act;

  • (f) prepare and submit to the Minister an annual plan mentioned in section 69(1) of the Act, monthly, half-year, and annual reports submitted under sections 68(1) and (2) and 70(1) of the Act, and other reports submitted under section 69(5) of the Act;

  • (g) publish an annual plan and half-year and annual reports in its website in accordance with sections 68(2) and 69(4) of the Act and regulation X(1); and

  • (h) perform any other functions as may be assigned to the Bank of Uganda by an agreement between the Minister and the Governor of the Bank of Uganda mentioned in section 62(3).

X. Independence of the operational management by the Bank of Uganda

(1) Except through the issuance of the petroleum revenue investment policy under section 61(1) of the Act and the approval of an annual plan under section 69(1) of the Act, –

  • (a) the Bank of Uganda, its Board directors, officers, or employees, in the performance of the Bank of Uganda’s responsibilities as an operational manager of the Petroleum Revenue Investment Account, shall not take instructions from the Minister, Secretary to Treasury, any public officer, or any other person or entity; and

  • (b) no person or entity shall seek to interfere in the activities of the Bank or to influence its Board directors, officers, or employees in the performance of the Bank of Uganda’s responsibilities as an operational manager of the Petroleum Revenue Investment Account.

(2) The Minister shall not issue a policy guideline to the Bank of Uganda under section 63(1) of the Act, unless such policy guideline is issued –

  • (a) as part of the petroleum revenue investment policy; or

  • (b) to direct the Bank of Uganda to revise an annual plan.

(3) The Minister shall not, through issuance of the petroleum revenue investment policy or a policy guideline, approval of an annual plan, or otherwise, direct or require or recommend, directly or indirectly, the Bank of Uganda to invest the Petroleum Revenue Investment Account in a particular instrument, asset, or derivative.

X. Investment of the Petroleum Revenue Investment Account

(1) [insert restrictions on investment] (2) The Petroleum Revenue Investment Account shall not hold, directly or indirectly, more than [three] percent of the voting rights in a single company, body, or entity.

(3) When a contravention of paragraph (2) arises, the Bank of Uganda shall take all reasonable steps to remedy the contravention as soon as practicable.

(4) Subject to section 62(6)(b) of the Act, the Bank of Uganda may use leverage and derivatives for investment and management of the Petroleum Revenue Investment Account in accordance with the petroleum revenue investment policy and any other policies and rules established by the Bank of Uganda.

(5) The Fund may not borrow on account of the Petroleum Revenue Investment Account, except to the extent permitted under paragraph (5).

(6) Subject to section 72(1) of the Act, any assets of the Petroleum Revenue Investment Account shall not be, in any case, earmarked, pledged, committed, loaned out, or otherwise encumbered within the meaning of section 72(2) of the Act.

X. Petroleum revenue investment policy

(1) For the purpose of section 61(1) of the Act, the Minister shall issue, review at least annually, and revise as he deems appropriate, the petroleum revenue investment policy in consultation with the Secretary to Treasury and on the advice of the Investment Advisory Committee.

(2) Prior to issuing, reviewing, or revising the petroleum revenue investment policy under paragraph (1), the Minister shall consult with the Bank of Uganda.

(3) The Bank of Uganda may, on its initiative, provide the Minister with recommendations on issuance or revision of the petroleum revenue investment policy at any time.

(4) The petroleum revenue investment policy mentioned in paragraph (1) shall specify –

  • (a) the classes of investment assets in which the Petroleum Revenue Investment Account is to be invested and the selection criteria for investment assets within those classes;

  • (b) the determination of benchmarks or standards against which the performance of the Petroleum Revenue Investment Account as a whole and the classes of, and individual, investment assets will be assessed;

  • (c) the balance between risk and return in the overall investment portfolio of the Petroleum Revenue Investment Account;

  • (d) the constraints on investment of the Petroleum Revenue Investment Account, including the concentration risk limits;

  • (e) the organizational structure for the investment and management of the Petroleum Revenue Investment Account, including the policies for the appointment and oversight of the external investment managers;

  • (f) the use of derivative financial instruments and leverage, including principles covering implicit leverage achieved through the use of derivatives and reinvestment of cash collateral provided in connection with securities lending or repurchase agreements;

  • (g) the management of credit, liquidity, operational, currency, market, and other risks;

  • (h) the guidelines on retention, exercise, or delegation of exercise, of voting rights in companies and entities held by the Petroleum Revenue Investment Account; and

  • (i) any other matters as the Minister deems necessary for the management of the Petroleum Revenue Investment Account.

(5) Whenever it is issued or revised under paragraph (1), the petroleum revenue investment policy shall be immediately published by the Minister in the website of the Ministry.

X. Approval of an annual plan for the Petroleum Revenue Investment Account For the purpose of sections 69(1) and (4) of the Act, Parliament and the Minister shall approve an annual plan for the Petroleum Revenue Investment Account submitted by the Bank of Uganda under section 69(1), if the annual plan is consistent with the petroleum revenue investment policy, the Act, and this Regulation.

X. External investment managers

(1) Subject to section 62(7) of the Act, the Bank of Uganda may appoint, on such terms and conditions as the Bank of Uganda determines, one or more persons as external investment managers who undertake the investment of any part of the Petroleum Revenue Investment Account.

(2) The Bank of Uganda may appoint only public international financial institutions as external investment managers of the Petroleum Revenue Investment Account under paragraph (1).

(3) The Bank of Uganda shall state, in each instrument of appointment, the powers, rights, and obligations of the external investment managers appointed under paragraph (1).

(4) In determining the powers, rights, and obligations under paragraph (3), the Bank of Uganda shall ensure that the external investment manager –

  • (a) undertakes the investments of the Petroleum Revenue Investment Account in accordance with the Act, this Regulation, the petroleum revenue investment policy, and any other applicable policies and rules of the Bank of Uganda; and

  • (b) reports to the Bank of Uganda on the state of the investments of the Petroleum Revenue Investment Account which the external investment manager undertakes at such times and in such manner as the Bank of Uganda determines.

X. Custodians

(1) The Bank of Uganda may appoint, on such terms and conditions as the Bank of Uganda determines, one or more persons as custodians of the Petroleum Revenue Investment Account.

(2) The person appointed as a custodian under subsection (1) shall hold any part of the property of the Petroleum Revenue Investment Account for which they have been appointed, in their name or, if the Bank of Uganda approves it, in the name of one or more nominees.

(3) The Bank of Uganda shall state, in each instrument of appointment, the powers, rights, and obligations of the custodians appointed under subsection (1).

(4) In determining the powers, rights, and obligations under subsection (3), the Bank of Uganda shall ensure that the custodian –

  • (a) holds any property of the Petroleum Revenue Investment Account for which they have been appointed in accordance with the Act, this Regulation, the petroleum revenue investment policy, and any other applicable policies and rules of the Bank of Uganda; and

  • (b) provides the Bank of Uganda with information in respect of any property of the Petroleum Revenue Investment Account for which they have been appointed at such times and in such manner as the Bank of Uganda determines.

[X. Application of the Public Procurement and Disposal of Public Assets Act, 2003]

[For the purpose of section 62(7), [a direct procurement mentioned in section 85(1)/restricted international bidding mentioned in section 83(1)/any other appropriate method?] of the Public Procurement and Disposal of Public Assets Act, 2003 is hereby designated as a procurement method within the meaning of section 79 of the said Act for the appointment of the external investment managers and custodians under regulations X(1) and X(1).]

X. In-year and end-year reporting

(1) Under the Act and this Regulation, the following in-year and end-year reporting requirements shall apply to the Fund.

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(2) The Fund is hereby excluded from the following reporting requirements:

  • (a) In-year and end-year performance reports mentioned in regulations X(1) and (3);

  • (b) Half-year financial statements mentioned regulation X(2); and

  • (c) Annual accounts and information mentioned in Schedule 5, paragraph 2, of the Act.

(3) The following reporting requirements in respect of the Fund under the Act shall be combined with the reporting requirements respectively specified:

  • (a) Half-year financial statements of the Petroleum Revenue Investment Account required under section 67(2) of the Act with in-year performance reports of the Petroleum Revenue Investment Account required under section 68(2) of the Act;

  • (b) End-year financial statements of the Petroleum Revenue Investment Account required under section 67(2) of the Act with an annual report of the Petroleum Revenue Investment Account required under section 70(1) of the Act;

  • (c) End-year performance reports of the Petroleum Revenue Investment Account required under section 68(2) of the Act with an annual report of the Petroleum Revenue Investment Account required under section 70(1) of the Act.

X. Legal protection

(1) The Bank of Uganda or a Board director, officer, employee, or agent of the Bank of Uganda, including a person previously holding such position, shall not be liable for acts or omissions performed in pursuant to his or her duties and responsibilities on behalf of the Bank of Uganda in respect of its responsibilities as an operational manager of the Petroleum Revenue Investment Account, unless it has been proven by the plaintiff that such acts or omissions constitute intentional wrongful conduct or gross neglect.

(2) In particular, the Bank of Uganda shall not be liable for any loss incurred in connection with the investment and management of the Petroleum Revenue Investment Account, unless it has been proven by the plaintiff that such loss results from gross negligence or willful misconduct of the Bank of Uganda in the performance of its responsibilities as an operational manager of the Petroleum Revenue Investment Account.

(3) The Bank shall indemnify a Board director, officer, employee, and agent of the Bank of Uganda, including a person previously holding such position, against costs incurred in the defense of a legal action brought against such person in connection with the discharge or purported discharge of official functions within the scope of his or her employment or engagement in respect of the Bank of Uganda’s responsibilities as an operational manager of the Petroleum Revenue Investment Account:

Provided that no such indemnification shall apply if such person has been convicted of a crime arising out of the activities that are covered by such legal action.

(4) When any provision of liabilities under an agreement between the Minister and the Governor of the Bank of Uganda mentioned in section 62(4)(a) of the Act is inconsistent with paragraph (1), (2), or (3), the provision is void and does not have any legal effect.

X. Compensation of operational expenses

(1) Notwithstanding regulation X(5), operational expenses incurred by the Bank of Uganda for the investment and management of the Petroleum Revenue Investment Account shall be charged to the Petroleum Revenue Investment Account.

(2) Subject to section 62(4)(b) of the Act, the scope and amount of, and the manner of payment for, operational expenses to be charged to the Petroleum Revenue Investment Account under paragraph (1) shall be prescribed by an agreement between the Minister and the Governor of the Bank of Uganda under section 62(3) of the Act.

X. Qualification of Investment Advisory Committee members

To avoid doubt, for the purpose of section 65(4) of the Act, all members of the Investment Advisory Committee shall have substantial experience, training, and expertise in financial investments, portfolio management, or investment law.

Collection and deposit of petroleum revenues

X. Collection and deposit of petroleum revenues

[To be filled – the reference to the laws on petroleum revenues could be made. The reference to regulations on TSA could also be added.]

Sharing of royalties

X. Sharing of royalties

[To be filled]

Part VII – Oversight of Subsectors and Public Enterprises

Local governments

X. Borrowings by local governments

(1) For the purpose of section 34(1) of the Act, a local government council shall not raise loans, obtain overdraft, issue bonds or other debt instruments, or provide other person with guarantees, without prior approval of the Minister.

(2) The Minister shall not grant approval under paragraph (1), if the loans, overdraft, bonds, debt instruments, or guarantees have any risks of causing non-compliance with the fiscal responsibility principles, the Charter of Fiscal Responsibility, or the medium-term debt management strategy.

X. Budgetary and financial management of local governments

The budgetary and financial management of local governments shall be conducted in accordance with the Local Government Act, 1997 and the Local Governments (Financial and Accounting) Regulations 2007.

Subvented entities and extrabudgetary entities

X. Establishment of a new subvented entity and extrabudgetary entity

(1) For the purpose of section 86(1) of the Act, when a responsible Minister intends to introduce a Bill to create a new subvented entity or extrabudgetary entity, the Accounting Officer of the responsible Ministry shall request the Minister to issue a certificate of financial implications of the Bill.

(2) For the purpose of sections 86(2) and (3) of the Act, a request for a certificate of financial implications under paragraph (1) shall be accompanied by –

  • (a) a draft Bill to establish the subvented entity or extrabudgetary entity;

  • (b) a feasibility assessment of the entity;

  • (c) explanation of how the objectives and functions of the entity contribute to achievement of the objectives, functions, and work plans of the responsible Ministry;

  • (d) explanation of the reason why the services of the entity cannot be delivered by the responsible Ministry or any other existing entity;

  • (e) an expected duration of the entity;

  • (f) estimates of revenue and expenditure of the entity and its projected financial statements over the medium term;

  • (g) estimates of fiscal impact of the entity on the Government budget and the fiscal position of the general government;

  • (h) assessment of fiscal risks which may arise from the entity;

  • (i) work plans of the entity, including the objectives, outputs, targets, and performance indicators;

  • (j) explanation of the governance structure of the entity;

  • (k) explanation of the internal control, accounting and financial management systems, and banking arrangements of the entity; and

  • (l) any other information as may be required by the Minister.

(3) The Minister shall not issue a certificate of financial implications under paragraph (1), unless he is satisfied, through the documents submitted under paragraph (2), that –

  • (a) the fiscal impact of the establishment of the subvented entity or extrabudgetary entity does not include any risks of causing non-compliance with the fiscal responsibility principles, the Charter of Fiscal Responsibility, the National Budget Framework Paper, the medium-term debt management strategy, the Act, this Regulation, or any other instructions or guidelines made thereunder;

  • (b) the accounting and financial management and banking arrangements of the entity does not include any risks of causing non-compliance with the Act, this Regulation, or any other instructions or guidelines made thereunder;

  • (c) the financial year of the entity is the same as that of the Government; and

  • (d) any other criteria in respect of the budgetary and financial management of the entity as may be specified by the Minister.

(4) For the purpose of section 86(1), the Cabinet shall not approve a Bill to create a new subvented entity or extrabudgetary entity, unless the Bill is accompanied by a certificate of financial implications issued under paragraph (1).

(5) Subject to sections 86(1) to (3), a Bill to create a subvented entity or extrabudgetary entity shall be submitted by a responsible Minister to Parliament together with –

  • (a) all documents listed in paragraph (2); and

  • (b) a certificate of financial implications issued under paragraph (1).

(6) The Minister may make instruments and guidelines to prescribe the methodologies, forms, procedures, and any other matters necessary for implementation of this regulation.

X. Borrowings by a sub-vented entity or other extrabudgetary entity

(1) For the purpose of section 34(1) of the Act, a subvented entity or extrabudgetary entity shall not raise loans, obtain overdraft, issue bonds or other debt instruments, or provide other person with guarantees, without prior approval of the Minister.

(2) The Minister shall not grant approval under paragraph (1), if the loans, overdraft, bonds, debt instruments, or guarantees have any risks of causing non-compliance with the fiscal responsibility principles, the Charter of Fiscal Responsibility, or the medium-term debt management strategy.

X. Budget preparation and submission of draft estimates

(1) Estimates of revenues and expenditures of a subvented entity or extrabudgetary entity and its work plan shall be prepared in such form and manner as specified by instructions or guidelines of the Secretary to Treasury.

(2) By the end of [every February], an Accounting Officer of every subvented entity or extrabudgetary entity shall submit to the Secretary to Treasury a work plan and draft estimates of revenues and expenditures for the next financial year.

(3) The Secretary to Treasury shall prepare the consolidated budget of the central government mentioned in regulation X based on the draft estimates.

X. Submission and publication of approved estimates

(1) When the estimates of revenues and expenditures of a subvented entity or extrabudgetary entity are approved under applicable legislation, the estimates shall be –

  • (a) submitted by the Accounting Officer of the entity to the Secretary to Treasury for information; and

  • (b) published, together with work plans of the entity, in the website of [the entity/the Ministry].

(2) When the supplementary estimates of revenues and expenditures of a subvented entity or extrabudgetary entity are approved under applicable legislation, the supplementary estimates shall be submitted by the Accounting Officer of the entity to the Secretary to Treasury for information and published in the website of [the entity/the Ministry].

X. Budgeting on a gross basis

Any revenues and expenditures shall be entered in the estimates of a subvented entity or extrabudgetary entity on a gross basis without being netted with each other.

X. Instructions on budget execution

The Secretary to Treasury may make instructions to Accounting Officers of subvented entities and extrabudgetary entities on in-year adjustments and execution of the estimates of the entities.

X. In-year and end-year reporting

(1) An Accounting Officer of every subvented entity or extrabudgetary entity shall submit in-year and end-year reports and financial statements to the Accountant-General and Auditor-General, as the case may be, in accordance with regulations X(4), X(3), and X(1).

(2) The audited annual financial statements of every subvented entity or extrabudgetary entity shall be published in accordance with regulation X(1).

X. Financial corrective actions

When a subvented entity or extrabudgetary entity contravenes the Act or this Regulation or instructions issued thereunder, the Secretary to Treasury may, in consultation with the relevant responsible Ministry, –

  • (a) require the Accounting Officer of the entity to submit an action plan to resolve underlying problems within a specific period of time;

  • (b) require prior approval of the Secretary to Treasury for such key financial decisions of the entity as specified by the Secretary to Treasury;

  • (c) reduce or suspend grants or transfers from the Government budget to the entity; and

  • (d) appoint for a specific period of time a financial administrator who would advise the Accounting Officer of the entity on corrective actions.

Public enterprises and special funds

X. Acquisition of shares and ownership interests in public enterprises

(1) A vote or extrabudgetary entity shall not make acquisition of a share or ownership interest in a company or other body corporate which causes the company or body corporate to be a public enterprise, unless the acquisition is approved by Parliament under this regulation.

(2) When an Accounting Officer of a vote or extrabudgetary entity intends to make acquisition of a share or ownership interest in a company or other body corporate which causes the company or body corporate to be a public enterprise, the Accounting Officer shall, in respect of the acquisition, submit to the Secretary to Treasury all documents listed in regulations X(2)(b) to (I).

(3) The Secretary to Treasury shall not include any acquisition of a share or ownership interest proposed under paragraph (2) in a schedule mentioned in paragraph (4), unless the Secretary to Treasury is satisfied, through the documents submitted under paragraph (2), that all conditions mentioned in regulations X(3)(a) to (d) are met.

(4) The Minister shall, as part of the Government budget documents, submit to Parliament for its approval a schedule which includes a list of proposed acquisitions of shares and ownership interests in companies or other body corporates which cause the companies or body corporates to be public enterprises.

(5) The Minister may make instruments and guidelines to prescribe the methodologies, forms, procedures, and any other matters necessary for implementation of this regulation.

X. Establishment of a new public enterprise though an Act of Parliament

(1) For the purpose of section 86(1), when a responsible Minister intends to introduce a Bill to create a new public enterprise, the Accounting Officer of the responsible Ministry shall request the Minister to issue a certificate of financial implications of the Bill.

(2) For the purpose of sections 86(2) and (3), a request for a certificate of financial implications under paragraph (1) shall be accompanied by all documents listed in regulations X(2)(a) to (I).

(3) The Minister shall not issue a certificate of financial implications under paragraph (1), unless he is satisfied, through the documents submitted under paragraph (2), that all conditions mentioned in regulations X(3)(a) to (d) are met.

(4) For the purpose of section 86(1), the Cabinet shall not approve a Bill to create a new public enterprise, unless the Bill is accompanied by a certificate of financial implications issued under paragraph (1).

(5) Subject to sections 86(1) to (3), the Bill to create a new public enterprise shall be submitted by a responsible Minister to Parliament together with –

  • (a) all documents listed in paragraph (2); and

  • (b) a certificate of financial implications issued under paragraph (1).

(6) The Minister may make instruments and guidelines to prescribe the methodologies, forms, procedures, and any other matters necessary for implementation of this regulation.

X. Establishment of a special fund

(1) For the purpose of section 29(1) of the Act, only the Minister may establish a special fund.

(2) When an Accounting Officer of a vote requests the Minister to establish a special fund under paragraph (1), the Accounting Officer shall, in respect of the special fund, submit to the Minister all documents listed in regulations X(2)(b) to (I).

(3) The Minister shall not establish a special fund, unless he is satisfied, through the documents submitted under paragraph (2), that all conditions mentioned in regulations X(3)(a) to (d) are met.

(4) A duration of a special fund established under paragraph (1) shall not exceed [ten] years, and may be extended by the Minister for additional [five] years.

(5) The Minister may make instruments and guidelines to prescribe the methodologies, forms, procedures, and any other matters necessary for implementation of this regulation.

[X. Financial year of a special fund]

[For the purpose of section 29(5), a financial year of a special fund shall be the same as that of the Government.]

X. Reorganization assessment of public enterprises

(1) For the purpose of section 29(5), at least every [three years], the Accounting Officer of the responsible Ministry of every public enterprise shall prepare and submit to the Secretary to

Treasury a reorganization assessment report which includes –

  • (a) updates of all documents listed in regulations X(2)(b) to (I); and

  • (b) evaluation of whether the public enterprise should continue to exist or be reorganized, dissolved, or disposed of.

(2) The Minister shall dissolve a special fund under section 29(6) of the Act, when –

  • (a) the duration of the special fund under regulation X(4) expires; or

  • (b) the Minister determines, through a reorganization assessment report submitted under paragraph (1), that the special fund no longer satisfies any condition mentioned in regulation X(3)(a), (b) or (d).

(3) When the Minister determines, through a reorganization assessment report submitted under paragraph (1), that a public enterprise which is not a special fund no longer satisfies any condition mentioned in regulation X(3)(a), (b) or (d), the Minister shall recommend the Cabinet to decide on reorganization, dissolution, or disposition of the public enterprise.

(4) A public enterprise which is not a special fund shall not be reorganized, dissolved, or disposed of, unless the Cabinet so decides.

(5) When the Cabinet decides reorganization, dissolution, or disposition of a public enterprise which is not a special fund, the responsible Ministry shall, in consultation with the Secretary to Treasury, do whatever is necessary to reorganize, dissolve, or dispose of, the public enterprise, including preparation of a necessary Bill.

(6) The Minister may make instruments and guidelines to prescribe –

  • (a) the methodologies, forms, procedures, and any other matters necessary for preparation of reorganization assessment reports under paragraph (1); and

  • (b) the procedures for reorganization, dissolution, and disposition of public enterprises.

X. Borrowings by a public enterprise

(1) The Minister hereby excludes all public enterprises from the application of the requirement of his prior-approval for borrowing or providing guarantees under section 34(1) of the Act.

(2) Notwithstanding paragraph (1), the Minister may subject a public enterprise to the requirement of his prior-approval for borrowing or providing guarantees under section 34(1) of the Act, whenever he deems it necessary.

X. Budget preparation and submission

(1) Estimates of revenues and expenditures of a public enterprise and its work plans shall –

  • (a) be prepared in such form and manner as specified by the instructions or guidelines of the Secretary to Treasury; and

  • (b) specify financial targets for the financial year.

(2) For the purpose of section 29(5) of the Act, by the end of [every February], an Accounting Officer of every special fund shall submit to the Secretary to Treasury draft estimates of revenues and expenditures and work plans for the next financial year.

(3) For the purpose of section 29(5) of the Act, when the Government budget for the next financial year is submitted to Parliament by April 1st and approved by Parliament by May 31st of the present financial year under sections 9(4) and (5) of the Act, the Secretary to Treasury may require an Accounting Officer of a special fund to revise its draft estimates and work plans for the next financial year in accordance with the Government budget.

(4) For the purpose of section 29(5) of the Act, by [June 1st] of every year the Secretary to Treasury shall submit to Parliament the estimates of all special funds for its approval, and Parliament shall approve them by the end of every June.

(5) The estimates of special funds approved by Parliament under paragraph (4) shall be published, together with their work plans, in the website of [the special fund/the Ministry].

(6) For the purpose of section 29(5) of the Act, the supplementary estimates of a special fund shall obtain the prior-approval of Parliament and published in the website of [the special fund/the Ministry].

(6) No later than [one] month before the beginning of its financial year, an Accounting Officer of every public enterprise, which is not a special fund, shall submit to the Minister for information the approved estimates and work plans of the public enterprise for the financial year which shall be published in the website of [the public enterprise/the Ministry].

(7) When the supplementary estimates of a public enterprise, which is not a special fund, are approved, the supplementary estimates shall be submitted by the Accounting Officer of the public enterprise to the Secretary to Treasury for information and published in the website of [the public enterprise/the Ministry].

X. Budgeting on a gross basis

Any revenues and expenditures shall be entered in the estimates of a public enterprise on a gross basis without being netted with each other.

X. Dividends policy of a public enterprise

[to be filled]

X. Instructions on budget execution

The Secretary to Treasury may make instructions to Accounting Officers of public enterprises on in-year adjustments and execution of the estimates of the public enterprises.

X. In-year and end-year reporting

(1) An Accounting Officer of every public enterprise shall submit in-year and end-year reports and financial statements to the Accountant-General and Auditor-General, as the case may be, in accordance with regulations X(6), X(3), and X(1).

(2) The audited annual financial statements of every public enterprise shall be published in accordance with regulation X(1).

X. Financial corrective actions

When a public enterprise contravenes the Act or this Regulation or instructions issued thereunder or its actual financial outcome deviates significantly from the financial targets specified in its estimates, the Secretary to Treasury may, in consultation with the relevant responsible Ministry, –

  • (a) require the Accounting Officer of the public enterprise to submit or resubmit an action plan to resolve underlying problems within a specific period of time;

  • (b) require prior approval of the Secretary to Treasury for such key financial decisions of the public enterprise as specified by the Secretary to Treasury;

  • (c) reduce or suspend grants or transfers from the Government budget to the public enterprise; and

  • (d) appoint for a specific period of time a financial administrator who would advise the Accounting Officer of the public enterprise on corrective actions.

Part VIII – Miscellaneous

X. Financial corrective actions against a vote

(1) The Secretary to Treasury may take against a vote any of the actions mentioned in paragraph (2), when –

  • (a) the vote made an excess expenditure which cannot be regularized by use of the Contingencies Fund under regulation X(3) or (5); or

  • (b) the vote or its Accounting Officer or other public officer or employee contravenes the Act, this Regulation, or instructions made thereunder.

(2) The actions mentioned in paragraph (1) include –

  • (a) laying before Parliament and publicly disclosing information about the occurrence of the grounds mentioned in paragraph (1) and the actions taken by the Minister under this regulation;

  • (b) requiring the Accounting Officer of the vote to submit to the Secretary to Treasury for approval an action plan to resolve underlying problems within a specific period of time;

  • (c) suspending, in whole or in part, for a specific period of time, –

    • (i) execution of provisions of the annual or supplementary estimates; and

    • (ii) the power of the Accounting Officer of the vote to reallocate provisions of the annual or supplementary estimates under regulation X(3);

  • (d) suspending, closing, or imposing conditions on, a bank account opened for a vote through the Accountant-General under regulation X(2);

  • (e) requesting the Minister to suspend, withdraw, limit, or place conditions on, his warrant issued under section 32(1); and

  • (f) requiring prior-approval of the Secretary to Treasury for assuming commitments under regulation X(1) in respect of expenditures for such provisions of the annual or supplementary estimates as specified by the Secretary to Treasury.

X. Offences

(Current regulation 107 with necessary amendments)

X. Surcharges

(Current regulation 108 with necessary amendments)

X. Revocation

(1) The Public Finance and Accountability Regulations, 2003 are revoked.

(2) The Public Finance and Accountability (Classified Expenditure) Regulations, 2003 are revoked.

(3) [Any other regulations made under the PFAA 2003, BA 2001, or the Companies (Government and Public Bodies Participation) Act?]

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  • [1. Royalties and petroleum resource rent tax as imposed by the [name of the law]];

  • [2. Income tax as imposed by the [name of the law]];

  • [3. Annual charges and other amounts payable under the [name of the law]];

  • [4. All other applicable taxes, fees and charges mentioned in the [name of the law]];

  • [5. Profits arising from the Government’s carried interest with respect to a petroleum license defined in the [name of the law]]

1

Implementing the Public Financial Management Bill, IMF, FAD May 2014.

2

The mission has used the November 2013 version of the Draft PFM Bill for this report except for the section on Petroleum Revenue Fund which underwent substantial revision after parliamentary discussions, for which a later version has been relied upon.

3

The mission was informed that a new PPP Act has recently been passed by parliament and is awaiting assent. A copy was not provided to the mission for review.

4

This is as per the procedure described in Public Financial Management Policy Formulation Handbook, MoFPED, 2009.

5

Section F-a, paragraph 10, of the Standing Orders provide that “a public officer is expected to obey official and lawful instructions of his or her supervisors and must not refuse to carry out reasonable orders.”

7

Reforming the Performance Budgeting System, Tawfik Ramtoolah, Marc Robinson, AFRITAC East July 2014.

8

The implications of carrying over of budget authority are further discussed in Carryover of Budget Authority, Ljungman and Lienart, IMF FAD, available at: http://blog-pfm.imf.org/pfmblog/fad-technical-notes-and-manuals-on-public-financial-management.html

9

These weaknesses have been emphasized in previous FAD and AFRITAC East technical assistance reports that have also highlighted specific weaknesses in the legal institutional framework that need to be addressed.

10

The mission was informed that MoFPED is actively considering the restructuring proposal that would also establish s separate Directorate of Internal Audit, the details of the proposal however were not shared with the Mission.

11

The developments and future plans have been captured in Treasury Single Account: Phase One, Project Progress Report, MoFPED, 2014.

12

Country examples include Indonesia, Philippines and Mozambique; in the region Kenya and Rwanda provide for establishment of a TSA in their legal frameworks.

13

The FAD report examines the issues involved in implementation and extension of TSA and makes detailed recommendations in this regard. See Flynn et al, IMF, 2014.

14

These have been discussed in earlier FAD report; see Richard Hughes et al (2010).

15

See PEFA report (2012) on Uganda, available at www.pefa.org.

16

See IMF, report Suzanne Flynn et al 2014.

17

These may be governed by the Public Service Commission Act, Criminal code etc and should be cross referenced in the PFM Regulations.

18

The roadmap takes into account the procedure prescribed in the Public Financial Management Policy Formulation Handbook, MoFPED, 2009.

19

The changes required in the other Laws and Regulations have been discussed earlier in the report.

20

Uganda PFM Reform Strategy (2014–2018), MoFPED, February 2014.