By Mulengera Reporters
The Ugandan government has made a remarkable leap in its public asset reporting, with the latest figures showing a staggering 335% increase in non-current assets, reaching UGX 107.15 trillion for the 2023/2024 fiscal year.
This growth, compared to the UGX 24.63 trillion reported in the previous year, signals a significant improvement in the country’s asset management systems.
A large part of the reported value is made up of non-produced assets, which total UGX 60.95 trillion, while produced assets account for UGX 46.20 trillion. The substantial rise has been largely attributed to enhanced recognition and consolidation of public assets across various sectors, an effort aimed at improving transparency and accountability in government financial reporting.
The Auditor General has lauded the government’s efforts in the initial phase of asset recognition but has underscored that further steps are crucial for ensuring that the reported asset values reflect their true worth.
Validation and revaluation of the assets are essential to establish fair market values, ensuring that financial statements accurately represent the government’s real financial position.
In a move towards strengthening these efforts, Ministries, Departments, Agencies (MDAs), and Local Governments have been tasked with completing the asset validation process in the upcoming fiscal year. This will involve a thorough review, including testing for asset impairment, to verify whether the assets have experienced any loss in value and to ensure they are fairly reported.
The government has been strongly encouraged to follow through with these recommendations. By adhering to rigorous asset valuation and impairment testing, the government can bolster the credibility of its financial reports, fostering greater fiscal transparency and boosting public trust in its financial management.
