Urban Inspection

1. Key Mandates/Functions: The department is mandated to ensure that there is effective and efficient performance of 41 Municipal Councils and 272 Town Councils to adhere to Government Laws, Regulations, Instructions, Guidelines and Policies. The main functions include:

1. To ensure that public funds in LGs are put to proper use,
2. To inspect Urban LGs to ensure adherence to administrative instruments, regulations in the delivery of social services and utilization of public resources,
3. To tender advice and strengthen the capacity of Urban LGs to mobilize local revenue and local tax administration,
4. To monitor financial management standards in Urban LGs,
5. To evaluate periodic and situational technical progress reports from Urban LGs i.e. Audit reports, budgets, final accounts and
6. To document good practices in LGs to enhance consistency of their application.

1. Key Activity: The DUI undertakes independent verification of adherence to established laws, Regulation, Guidelines, Instructions and Policies to ensure efficiency and effectiveness in the operations of Urban LGs. During Inspection, Inspectors gather sufficient evidence to form an opinion on the extent and quality of compliance. The inspection results are meant to guide administrative or policy interventions by the Ministry or Other government Agencies.

While verifying compliance with Laws and Regulations the DUI is also concerned with the Quality of Compliance. The inspection raises flag for areas that are likely to need more attention by the Ministry or Other Government Agencies. Areas of concern include: attainment of value for money, misappropriation of funds and project appraisals.

1. Key Policy Achievements: In addition to the normal routine inspection of Urban LGs, the following key policy initiatives were super headed by the Department:-

1. Formulation and enactment of the Local Service Tax,
2. Formulation and enactment of Local Hotel Tax,
3. Business case for Tax Payers Registration Expansion Programme (TREP), e-logrev, to automate local revenue administration in LGs,
4. Policy Guidelines for management of Markets,
5. Policy Guidelines for management of Taxi Parks,
6. Draft Guidelines for LGs Bonds, and
7. Draft LST for Commercial Farmers Regulations.

1. Projects under Implementation: The Department is implementing Taxpayers Registration Expansion Programme (TREP) in 34 Municipalities.  TREP is a taxpayer’s registration initiative through institutional collaboration with URSB, URA and KCCA. The Ministry’s flagship activity under TREP is the Local Government Revenue Collection and management Information System (LGRMIS) code named e-logrev, rolled out in 4 Municipalities only due to resource constraints. E-logrev is an automated solution for Taxpayers’ registration assessments, e-payment, enforcement, reporting, reconciliation and interfacing/integration with other Government Agencies, Telecom and Commercial Bank Systems. On average revenue has increased by over 70% where the e-logrev has been implemented.

1. Policy Issue in Progress: The Department is spearheading:

1. The Amendment of the LGA, by amending the 5^th Schedule, to provide for the Management and Levying of Park User Fees (PUFS) payable by Taxis/Buses to LGs and KCCA. The draft Statutory Instrument was formulated through a protracted consultative process by HE the President and will be issued in accordance with S.175(2) to the LGA. The cabinet Paper was submitted. The Cabinet paper is praying to:-
   1. Note the Policy Resolutions for eliminating multiple and arbitrary levies on PSVs and other vices in the Commercial Passengers Transport Industry,
   2. Approve the LGs (Amendment of the 5^th Schedule) Statutory Instrument 2019, to provide for the management and levying of PUFs;

• Authorize the Minister of LG to lay the Draft LGs Statutory Instrument 2019, before Parliament; and

1. Note the implementation responsibilities under MoFPED/AGO, URA, MoWT/TLB, MoIA/UPF and LGs.

1. The Ministry in Conjunction with MAAIF have finalized loan negotiations with IFAD regarding the financing of National Oil seed Project (NoSP). Supportive Statements will have to be made by the Minister in Cabinet and Parliament for approval of the $120million loan. The Ministry will coordinate 67 Districts in Northern and Eastern Uganda where this project will be implemented. The Districts will be responsible for Component 2 of the Project which focuses on the rehabilitation of 2,500Kms of Community Access Roads.