Title: Forensic Audit On Public Funds Management In Uganda. An Empirical Evidence Of Kampala Capital City Authority
Authors: Dr Arinaitwe Julius, Musiimenta Nancy, Ahumuza Audrey
Volume: 8
Issue: 8
Pages: 8-13
Publication Date: 2024/08/28
Abstract:
The effective management of public funds is a cornerstone of accountability and the legitimate use of taxpayer resources to support development priorities, especially in developing nations like Uganda. However, the management of these funds is often compromised by weaknesses in oversight, transparency, and integrity, which significantly undermine the proper stewardship of finances at various levels of government. In Uganda, such challenges are particularly pronounced, as evidenced by numerous studies and audit reports highlighting widespread misuse, misappropriation, and lack of accountability regarding public funds. This study aims to address these critical issues by conducting an in-depth forensic audit of KCCA's financial management practices over a five-year period, from 2015 to 2020. Forensic auditing has emerged as a vital tool for enhancing accountability and transparency in public funds management, as it goes beyond traditional financial audits by focusing on detecting and preventing fraud, corruption, and other financial malpractices. The study employs a descriptive case study design utilizing mixed methods to comprehensively examine KCCA's public funds stewardship and determine accountability issues. The findings of the study reveal that robust funds administration practices are essential for promoting compliance with regulatory standards, as effective management of public funds enhances regulatory adherence and significantly reduces the risk of financial mismanagement. Furthermore, the study highlights the critical role of risk management strategies and regulatory oversight in supporting compliance and internal control effectiveness. The analysis also underscores the detrimental impact of financial mismanagement on the effectiveness of internal controls, indicating that lapses in financial governance can severely undermine the control mechanisms necessary for maintaining financial stability and accountability. Based on these findings, the study recommends several measures to enhance public funds management, improve regulatory compliance, reduce financial mismanagement, and strengthen internal controls within KCCA. These recommendations include refining funds administration practices, strengthening risk management frameworks, increasing regulatory oversight, and proactively addressing financial mismanagement through stricter internal controls and real-time financial monitoring.