THE RELATIONSHIP BETWEEN GRANTS AND … · Web viewCG guidelines (health staff numbers and wage...

GRANTS AND SERVICE DELIVERY IN THE UGANDAN LOCAL

GOVERNMENTS; A CASE STUDY OF KASITU SUB COUNTY IN

BUNDIBUGYO DISTRICT

BY

KAHIGWA ZACCHAEUS

06/U/9520/EXT

206011399

A RESEARCH REPORT SUBMITTED TO MAKERERE UNIVERSITY IN

PARTIAL FULFILLMENT OF

THE REQUIREMENTS FOR THE AWARD OF THE DEGREE

OF BACHELOR OF COMMERCE OF

MAKERERE UNIVERSITY

JULY, 2011

1

Declaration

I, Kahigwa Zacchaeus do hereby declare that, this research report entitled; “Grants and

service delivery in local Government: A case study of Kasitu Sub County Bundibugyo

Local Government” is entirely my own original work and has not been submitted before

to any other University or institution of higher learning for the award of a degree. Where

the work of other people has been cited, it has been duly acknowledged,

Signed…………………………………………………..

KAHIGWA ZACCHAEUS (Candidate)

Date…………………………………………………….

i

user, 07/15/11,

A

user, 07/15/11,

Of

Approval

This research report has been submitted for examination with my approval as the

candidate’s University supervisor.

Signed………………….........

Mr. MASIMENGO TADEO

Supervisor

Date…………………………

ii

Dedication

This research report is dedicated to my late Father,Kahigwa George Bukambi, my

mother,Kiiza Faith, my wife,Mawino Mbambu Margaret,my brothers, sisters,my sons

and daughters and all other people especially teachers and head teachers of the various

schools

iii

user, 07/15/11,

Acknowledgements

I am grateful to the following people who made the publication of this research report a

success. Primary thanks go to my supervisor, Mr. Masimengo for his tireless effort in

providing me the professional guidance that enabled me to produce this report.

His guidance was invaluable.

Mr. Lyahinda Eric Bukambi who was my mentor

Mr.Bagonza Majid who made the typing and printing of this work a success.

Head of departments Bundibugyo District local government and Sub County chief of

Kasitu Sub County, the chairman LC III Kasitu Sub County , all councilors of Kasitu Sub

County at Local Council III Level , all Parish chiefs in the Sub County all people of

Kasitu Sub County for availing me with data and Makerere university library for

providing the necessary information.

iv

user, 07/15/11,

user, 07/15/11,

More information added

Table of Contents

Declaration............................................................................................................................iApproval..............................................................................................................................iiDedication..........................................................................................................................iiiAcknowledgements............................................................................................................ivTable of Contents.................................................................................................................vList of Tables....................................................................................................................viiiAbbreviations and Acronyms.............................................................................................ixAbstract...............................................................................................................................xi

CHAPTER ONE: INTRODUCTION..............................................................................11.1 Background....................................................................................................................11.2 Purpose of the study.......................................................................................................41.3 Objective of the study....................................................................................................41.4 Research questions.........................................................................................................41.5 Scope of the study..........................................................................................................51.6 Significance of the study...............................................................................................5

CHAPTER TWO: LITERATURE REVIEW.................................................................62.0 Introduction....................................................................................................................62.1 Definitions.....................................................................................................................62.2.0 Mode of transfer of grants to local government.........................................................62.2.1 Central government grants........................................................................................62.2.2 Central Government transfer to Local Governments..................................................72.2.3 History of central Government funds transfer............................................................72.2.4 Unconditional grants...................................................................................................82.2.5 Conditional grants.....................................................................................................102.2.6 Equalization grant.....................................................................................................122.3.0 Nature and quality of service delivery......................................................................142.3.1 Service......................................................................................................................142.3.2. Nature of Local government services......................................................................142.3.2.1 .Health services......................................................................................................142.3.2.2. Water and Sanitation services...............................................................................152.3.2.3. Education services................................................................................................15

v

2.3.2.4 Rural road services................................................................................................152.3.2.5 Agriculture extension services...............................................................................152.3.3 Quality of service delivery........................................................................................162.3.3.1 Monitoring of funds and service delivery..............................................................202.4.2 Revenue sharing........................................................................................................252.4.3 Finance sources.........................................................................................................26

CHAPTER THREE: METHODOLOGY.....................................................................273.0 Introduction..................................................................................................................273.1 Research design...........................................................................................................273.2 The study population and the sample..........................................................................273.2.1 The study population................................................................................................273.2.2 Sample size...............................................................................................................273.2.3 Sampling methods....................................................................................................273.3 Sources of data.............................................................................................................283.4 Study variables.............................................................................................................283.5 Data collection methods..............................................................................................283.6 Data quality control.....................................................................................................293.8 Limitations of the study...............................................................................................29

CHAPTER FOUR: PRESENTATION OF THE FINDINGS.....................................304.0 Introduction..................................................................................................................304.1 Respondents’ background characteristics....................................................................304.2 Mode of grants transfer in Kasitu Sub County, Bundibugyo district..........................334.2.1 Whether Grants have been received.........................................................................344.2.2 Type of grants received............................................................................................344.2.3 Means of Grant transfer used....................................................................................354.2.4 Frequency of receiving the grants...........................................................................354.2.4 Role played by the respondents in utilization of the grant received.........................364.3 The nature, quality of services delivered by the local government in Kasitu Sub County, Bundibugyo district..............................................................................................374.4 Quality of service delivery...........................................................................................374.4.1 Education..................................................................................................................374.4.2 Extension services....................................................................................................384.4.3 Water project development.......................................................................................39

vi

4.4.4 Health facility development......................................................................................404.4.5 Roads........................................................................................................................414.5 Relationship between Grants and service delivery in Kasitu Sub County, Bundibugyo district................................................................................................................................42

CHAPTER FIVE: DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS...........................................................................................................................................445.0 Introduction................................................................................................................445.1 Discussion of the findings...........................................................................................445.1.1 Modes of transfer of grant funds............................................................................445.1.2 Nature, quality and service delivery by the local government...............................455.1.3 The relationship between grants and service delivery...........................................465.2 Conclusions..................................................................................................................475.3 Recommendations........................................................................................................48References..........................................................................................................................49Appendix I: Questionnaire for the local leaders................................................................52APPENDIX 2: Proposed Budget for the research dissertation..........................................56Appendix 3: Time Frame...................................................................................................57

vii

List of Tables

Table 1: Third Quarter ands Conditional grant releases to Local Government (Jan-March, 2011 F/Y 2010/2011………………………………………………… 9Table2: Third Quarter conditional transfers for Local Governments (Jan-March 2011, F/Y

2010/2011)… ……………………………………………… 12Table 3: Expenditure needs for equalization grant……………………………… 13Table 4 : Trends in amounts and share of Central government grants…………… 13Table 5: Revenue sharing among local governments……………………………. 26Table 6: Showing the level of education of the respondents…………………….. 32Table 7: Showing the designation of the respondents……………………… 33Table 8: Whether local government receives any grants in Kasitu sub county… 34Table 9: Types of grants received in Kasitu Sub County………………………… 34 Table 10: Grants transfer means in Kasitu Sub County……………………… 35Table 11: How often grants are received in Kasitu Sub County……………… 36 Table 12: Local leaders role in the grants received in Kasitu sub count…… 36Table 13: Management of the sub county supports development and rehabilitation of

educational institutions ………………………………37

Table 14: The sub county supports and funds activities aimed at promoting agricultural development……………………………………....

38

Table 15: The quality and availability of water has been improved by the funding from the sub county…………………………………………...........

39

Table 16: Water projects supported by Kasitu sub county local government…………… 40Table 17: The management of Kasitu sub county has supported health facility

development…………………………………………………………… 40Table 18: The sub county administration has funded road maintenance, construction and

upgrading programmes……………………………….. 41Table 19: Correlation table showing the relationship between grants and service

delivery…………………………………………………...42

Abbreviations and Acronyms

viii

ACODE Advocates coalition for Development and Environment

BFP Budget Framework Paper

CAO Chief Administrative Officer

CG Conditional Grant

CSO Civil society organizations

DFID Department for International Development

DSC District Service Commission

DTB District Tender Board

FAL Functional Adult Literacy

FDS Fiscal Decentralization Strategy

FY Fiscal Year

LC Local Council

LG Local Government

LGA Local Government Act

LGDP Local Government Development Programme

LLG Lower Local Government

MoFPED Ministry of Finance Planning and Economic Development

NAADS National Agriculture Advisory Services

NGO Non Governmental Organization

NRM Natural resource management

PAF Poverty Action Fund

PEAP Poverty Eradication Action Plan

PHC Primary Health Care

PMA Plan for Modernization of Agriculture

PRSP Poverty reduction strategy paper

PWDS Persons with Disability

ROU Republic of Uganda

SFG School Facility Grant

UCG Unconditional Grant

UDN Uganda Debt network

ix

UN United Nations

UNDP United Nations development program

UPE, Universal Primary Education

WB World Bank

Abstract

x

In Uganda the level of service delivery in local governments is still very low as manifested by poor performance in primary and secondary schools, poor health services, poor road net work, lack of food and shortage of water. Though local governments have been receiving money from the central government in form of government transfer, grant funds to promote effectiveness and efficiency in the execution of UPE, rural water and sanitation, roads and agriculture extension through maximum service delivery to end users, the level of service delivery has persisted to be low thus a study to establish the relationship between grants and service delivery in Kasitu Sub County and where possible find solution to areas that have not had proper service delivery.

With specific objectives of establishing the modes of transfer of grant funds, the nature, quality and service delivery by the local government and relationship between grants and service delivery using a descriptive and analytical cross sectional design in which 40 questionnaires were administered to a total of 40 respondent local government leaders the study established and concluded that local governments through sub counties receive grants through the district local governments or leaders directly to the sub-counties on a quarterly basis or on a yearly basis. The local residents receive education, health services, infrastructural development services and agricultural extension services and though the grants received are not adequate, the local community has benefited and are satisfied with the services provided by the government

However the study recommends among other grants being sent in time in order to reduce the possibility of paralyzing the programmes funded by these grants and the government through its line ministry that’s Ministry of Local government revise or increase the size of these grants as to sufficiently meet the budgets as put forward in the sub counties.

xi

CHAPTER ONE

INTRODUCTION

1.1 Background

The decentralization system of government as mandated by the Constitution of Uganda

(1995) and the Local Government Act (1997) empowers local councils to plan, manage

raise and allocate resources basing on locally determined priorities. The decentralization

system does not only empower but it is also to speed up community development and

improve the quality of life of the local people through provision of better services. Such

services include education, medical and health, water and sanitation, road construction

and maintenance among others. To achieve this objective, the central government

provides opportunities to individual local government to solicit for funds through

taxation, donations and through remittances of grant ceilings from the central

government.

A grant is the sum of money given by the organization especially government for a

particular purpose. Schedule 2, article 193 of the constitution specifies 3 types of central

transfers that are supposed to be given to local government. These include unconditional,

conditional and equalization grants. The conditional grants are the most dominant,

contributing on average 88% of the total transfer, unconditional grant 11.6% and

equalization grants 0.6%. According to the LG Act 1997, s.84 (2), such grants shall be

given to LGs in order to run and finance decentralized services discussed earlier on.

1

Services are the system/ an arrangement that meets public needs like communication,

essential requirements such as electricity, food security and medical facilities among

others.

The Act stipulates that such services must be of quality and this entails valuability,

promptness, physical appearance, accessibility, timely delivery, confidence and trust of

the people in the services offered. In order to facilitate the delivery of such quality

services, article 191 of chapter 11 of the 1995 constitution of Uganda, provides a

number of alternative sources of funds for example NGOs, local revenues e.t.c. The

delivery of these services is supplemented by the grant transfer from central government

which includes the conditional, unconditional and equalization grants.

Kasitu Sub County is found in Bughendera constituency, Bundibuyo district, Uganda. It

comprises of 8(eight) parishes of Burondo, Karambi, Ntandi, Kasitu, Ndalibana, Mabere,

Malomba and Nyakighoma. Kasitu Sub County is one of the averagely populated sub

counties in the district with a total of approximately 26000 people representing 10% of

the total population of Bundibugyo district. Kasitu Sub County has 3 health centers, 15

primary schools and 1 secondary school with only one bore hole (on average in every

village) and a number of feeder roads.

Kasitu Sub County Local Government receives the local government grant every

financial year to enable it deliver the services. This grant is mainly received in 4 quarters,

under the titles conditional and unconditional grants. Despite this intervention, the level

of service delivery is still very poor. This is manifested by poor performance in both

2

primary and secondary schools poor road networks, poor health facilities and lack of

drugs in health centre, poor water and sanitation coverage and poor agriculture extension

services.

1.1 Statement of the problem

The level of service delivery in local governments is still very low. This is manifested by

poor performance in primary and secondary schools, poor health services, poor road net

work, lack of food and shortage of water. A study conducted by the Swiss Procurement

Company (SWIPCO) inspection report (2004) showed low quality of services identified

in schools, under Schools Facilities Grant (SFG).

Since 1995/1996 financial year, Local governments have been receiving money from the

Central government in form of government transfer block/grant funds to promote

effectiveness and efficiency in the execution of UPE, rural water and sanitation, roads

and agriculture extension through maximum service delivery to end users.

A quick analysis of the 2006/2007 recurrent budget showed over 78% of the recurrent

budget funds (from grants) were transferred for expenditures on decentralized services

delivered to Local government (Muduuli, 2006).

Despite this intervention, the level of service delivery has persisted to be low( Edward et

al ,2008/2009).

What then could be the problem? Could it be attributed to inadequacy of grants to meet

the population’s requirements? Or could it be lack of enough funds to promote the

3

supervisory and monitoring of funds role.(Christian Aid 2003) or could it be because of

lack of proper accountability by local governments?

It was based on this that, the researcher had to carry out the research taking Kasitu Sub

County as a case study.

1.2 Purpose of the study

The purpose of the study was to establish the relationship between grants and service

delivery in Kasitu Sub County and where possible find solution to areas that have not had

proper service delivery.

1.3 Objective of the study

The objectives of this research were to;

i ) To establish the modes of transfer of grant funds

ii) To asses the nature, quality and service delivery by the local government

iii) To establish the relationship between grants and service delivery

1.4 Research questions

In order to fulfill the study objectives the researcher was guided by the following

questions;

(i) What is the mode of transfer of grants to local government?

(ii) What is the nature and quality of service delivery by local governments?

(iii) What is the relationship between grants and service delivery?

4

1.5 Scope of the study

a. Geographical scope

The study was carried out in Kasitu Sub County which is located in Bughendera county,

Bundibugyo district, in Western Uganda. The neighbouring sub counties are Ntotoro and

Ngamba in Bundibugyo district, Bweramule and Karugutu in Ntoroko district.

b. Content scope

The research was carried out in Kasitu Sub County because the services provided in this

Sub County are still very poor. In addition, data from this Sub County indicates

insufficient funding hence the need to choose this area of study.

1.6 Significance of the study

The study shall be significant to;

[i] The study will benefit the researcher in answering the research problem

[ii] The study will help Kasitu and other local governments in Uganda by highlighting

Areas in which grants have affected service delivery.

[iii] The study shall benefit other researchers and scholars through providing them with,

information and Literature for further study.

[iv]To beneficiaries, the study shall help address relation between grants and service

delivery for rural projects

5

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter sought to give information by other writers about grants and service

delivery it shows the modes of transfer of grants to local governments, the nature, and

quality of service delivery and then the relationship between grants and service delivery.

2.1 Definitions

Grant is the sum money given by an organization especially government for a particular

purpose. Grants are a major source of funding for local governments (LGs) rising from

17% (shs.32 billion) to 34% (shs.806 billion) of the national budget in FY 1997/1998 and

FY 2005/06 respectively ( Decentralization proposal ,June 16, 2008).

2.2.0 Mode of transfer of grants to local government

The constitution of Uganda specifies three types of central transfer grants that are

supposed to be given to local governments. They include unconditional, conditional and

equalization grants

2.2.1 Central government grants

The constitution of Uganda specifies three types of central transfer grants that are

supposed to be given to local governments. They include unconditional, conditional and

equalization grants. The conditional grants are the most dominant contributing on average

88% of the total transfer. Unconditional grant 11.6% and equalization grant 0.6%. Also

6

according to the local Government act 1997, the local governments are entitled to un

conditional (block) grants, conditional grants and equalization grants. The unconditional

grants are intended to fund the decentralized functions as shown by the Act, while the

conditional grants are supposed to fund national priority program areas; the conditional

ties have to be mutually agreed between the centre and local governments. Equalization

grants are supposed to be given to local governments lagging behind the national

standard of service delivery. This practice implies that the grants benefits only local

governments facing excessive expenditure pressure and having relatively limited revenue

generation capacity since these may be the main causes of poor service delivery.

(Participants Manual June 2003)

2.2.2 Central Government transfer to Local Governments.

One of the major aims of decentralization is to improve service provision by giving local

governments the capacity to plan for themselves as well as mobilize /generate and

manage the resources required to implement these plans. There is an inability of local

governments to provide adequate level of public (Tibamwenda, 2009).

2.2.3 History of central Government funds transfer

Central government transfers to local government began in the fiscal year [FY] 1993/94

with a vote system. Block grants to the local governments were introduced in a phased

manner within the first 13 districts. By 1995/1996 fiscal year, all the 39 districts in

Uganda by then were receiving the unconditional grants. (Participants’ Manual, June

2003)

7

When the 1995 constitution was promulgated, fiscal decentralization become more

pronounced in law, schedule 2, article 193 providing for the three types of transfers

namely unconditional, conditional and equalization grants.

2.2.4 Unconditional grants

It is defined both in the Constitution Section 193 (2) and the Local Government Act,

1997 Section 84 [2] as “the minimum grant that shall be paid to local governments to run

decentralized services and shall be calculated in the manner specified in the seventh

schedule to this constitution”(Fiscal Decentralization working group, February 2004)

The schedule defines the amount paid in a given fiscal year to Local government as the

amount paid to them in the preceding fiscal year for the same items adjusted for general

price changes plus or minus the budgeted cost of running added or subtracted services. It

caters for both wages and non wages (Local Government Finances Commission

Report, 2003).

Unconditional grants are transferred on monthly basis to local governments. Each

financial year MoFPED announces the UCG allocation as part of the Budget Framework

process to allow LGs to incorporate the allocation in their planning and budgeting

process. The UCG is transferred from the consolidated fund. There are no reporting

requirements to central government over use of the UCG.

The UCG is distributed across Districts/Municipalities according to formula including a

flat-rate allocation for each District/Municipalities (UGs 150m.) plus an allocation based

on area (15% weight) and population (85% weight).There are also some minor historic

8

transfer items (accounting for 10-15% of the total) where by the UCG for some

Districts/Municipalities includes financing for special tasks including security.

Currently, the unconditional Grant is being used almost entirely for management and

administrative staff at the District/Municipality level (Fiscal Decentralization Working

Group, February 2004)

Table 1: Third quarter unconditional grant releases to local government (Jan-March 2011, F/Y 2010/2011)

Grant AmountIFMS operational costs 162,500,000District unconditional grant 30,924,805,000Urban unconditional grant 9,922,195,000Equalization grant 784,550,000UPE capitation grant 10,252,133,000PHC non wage 3,588,888,000District Hospital 1,485,767,000PHC NGO Non wage 4,136,701,000Functional adult literacy (FAL) 399,426,000PHC NGO wage subvention 151,169,000Boards and commissions PAC,DLB& CC 836,331,000Urban water (o&m) 268,978,000Monitoring and accountability Grant 619,226,000Public libraries 82,500,000Health training 567,867,000Start up costs 435,826,000Community development workers 221,250,000Env. And natural resources 196,250,000Youth, women and disability councils 375,000,000DSC operational costs 1,513,344,000District Graduated Tax Compensation 8,556,482,000Urban Graduated Tax Compensation 2,546,308,000Total salary and Gratuity -LLGs Ex – Gratia 4,988,760,000Special Grant for PWDs 750,000,000School Inspection Grant 129,028,000Production and Marketing (PMA) 2,536,400,000TOTAL 81,442,923,000Source: - Daily Monitor Wednesday March 30th 2011.

9

2.2.5 Conditional grants

Conditional grants started in the FY 1995/1996, with only 4 grants and constituting shs

77 billion representing 65% of the total central transfers to the local governments.

Currently 2009/2010 this grant has grown to over 588.17 billion in the recurrent and

development expenditure spread in 28 grants and constitute 88% of the total; transfers.

The conditional grants are administered at sectoral and non sectoral levels. The sectoral

grant is allocated to health, education, roads, agriculture and water under LGMSD. There

is a transfer of non sectoral grants to local government for investment in infrastructure

and service provision. The system has an in built incentive for the local government to

spend minimum 80% of the investment in the poverty action plan priority areas. Article

193 [section 3] of the constitution defines the conditional grant to consist of moneys

given to local governments to finance programs agreed upon between the government

and the local government, and shall be expended only for the purposed for which it was

made and in accordance with the condition agreed upon (Kalungi, 2005)

The increase in the number of conditional grants has however led to system

inefficiencies, through proliferation of bank accounts and multiple reporting systems.

[The New vision “Budget speech “vol.164.143 Friday, June 15 2004]

The size of recurrent CGs and the flexibility which the District/Municipalities have in

their use is almost entirely determined by line Ministry policy as reflected in the

CG guidelines (health staff numbers and wage costs, UPE policy, the number of

agriculture extension workers and their operating costs etc.)

10

The vast majority funds for conditional Grants come from the PAF and are tied to the key

sectors in the PEAP: Primary Health care, water and sanitation, Rural Roads and

Agriculture Extension.

There is a uniform system for planning, reporting and transfer of funds for grants from

the PAF. The key features of the current system are:-

-Guidelines for the PAF-CGs have been prepared by line ministries on the basis of

general guidelines prepared by MoFPED. According to the guidelines,

Districts/Municipalities have, in principle, greater discretion in priority- setting although

the real level of discretion remains limited.

- Quarterly transfers on the basis of quarterly work plans.

- Releases are conditional on submission to line ministries of work plans, quarterly

reports, and cumulative quarterly reports recovering financial and physical progress.

The PAF- system is designed to fit the budget Framework paper (BFP) system. Budget

ceilings are announced before the LG budgeting process begins. LGs use the budget

ceilings as basis for the sector work plans. When the work plans have been approved by

respective line ministry (LMs), there are limited possibilities to increase or decrease the

budgeted amounts and non allocations can be made from one grant to another. The access

and compliance criteria in the revised PAF system are thus the submission of work plans

budget estimates and quarterly reports to the line ministries (Fiscal Decentralization

Working Group, February 2004)

11

Table 2: Third Quarter conditional transfers for Local Governments(Jan-March 2011, F/Y 2010/2011)

Grant Amount

District Roads Rehabilitation _Rural Water and Sanitation 15,158,226,000.Local government management and service delivery (LGDP) 16,018,265,000.NAADS 74,705,912,000.District PHC Development 10,921,693,000.Schools Facilities Grant (SFG) 15,475,937,000.Total 132280033000. Source: - Daily Monitor Wednesday March 30th 2011.

2.2.6 Equalization grant

This grant according to clause 4 of article 194 of the 1995 constitution, is defined as

monies to be paid to local governments for giving subsidies in making special provisions

for the least developed local government based on the degree to which the local

government is lagging behind the national average standard for a particular service. It

was introduced in 1999/2000 after a study by the Local Government Finance

Commission, which put in place modalities for identifying beneficiaries and their

respective amounts.

Equalization Grant is meant to provide funds to the Districts/Municipalities with low

revenue potential, and/or higher costs of delivering services to the people. The allocation

is based on a formula which aims to “equalize” revenue potential and service delivery

costs. The funds allocated so far have been small and funds can be used in any priority

areas, following central approval (Fiscal Decentralization working group ,February

2004)

12

Table 3 : Expenditure needs for equalization grant

Criteria for expenditure of equalization WeightsTotal population 0.3884Population (5-14 years) 0.1305Population (0-4 years) 0.0385Km in distance roads/per unit population 0.219District area 0.0122Crop acreage 0.0025Live stock population 0.0025No. of landing sites 0.0020Sources: Introduction of equalization grant reports 1999

By the financial year (2004) 34 out of the 56 districts and 40 out of 73 urban local

governments were benefiting from this grant. It is important to note that the spread of the

grant is so minimal that the impact may not be realized. Therefore the importance of the

grant was becoming a concern to various stake holders (Kalungi, 2005).

Table 4: Trends in amounts and share of central government grants

Grants 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003UG

shs

shares UG

shs

Shares UG

shs

Shares UG

shs

Shares UG

shs

Shares

Unconditional

grant

54.3 24% 64.4 23% 66.8 17% 79.1 15% 86.5 14%

Conditional

grant

168.4 75% 202.1 71% 275.2 71% 321.3 63% 388.9 63%

Development

grant

2.2 1% 18.8 7% 45.0 12% 107.8 21% 133.1 22%

Equalization

grant

0.0 0% 0.0 0% 2.0 0.5% 4.0 0.8% 4.4 0.7%

Total 224.9 100 285.2 100 389.0 100 512.2 100 613.2 100

Source: Ministry of Finance, Planning and Economic Development

13

2.3.0 Nature and quality of service delivery

2.3.1 Service

A service is a system, or an arrangement that meets public needs like communication

postal services and other essential services like water supply, electricity, education, health

and agriculture extension services among others.

Local Governments provide viable institutional arrangements for enhanced aid

effectiveness. LG can deliver, enforce public and social accountability as well as

facilitate social justice and equity (Tibamwenda, 2009).

2.3.2. Nature of Local government services

The agencies of local government are the major providers of services of local nature

responsive to local needs. The economics of local service provision and the means of

financing that provision will be considered. Local governments provide arrange of

services which includes Health, Water and Sanitation, Education, Rural Roads and

Agricultural extension services (ACODE report, 2008/2009)

2.3.2.1 .Health services.

Under health, various services are provided by local governments which include the

recruitment of health workers in various health units in the local governments. They also

tender the construction of health units in rural areas for example the construction of

health centre IIs and IIIs. Local Governments do the work of monitoring of health

services in the local governments and municipalities (Cindy Carlson,2004).

14

2.3.2.2. Water and Sanitation services.

Local Governments do the work of ensuring that, it provides safe waters to its people by

constructing gravity flow schemes and construction of protected springs and maintenance

of water sources. It also monitors the its people to ensure proper sanitation services like

ensuring that the people have latrines and also that they boil water for drinking to

decrease the risk of possible diseases( Water Aid report, August 2008)

2.3.2.3. Education services.

In education sector, local governments perform the work of tendering of construction of

class rooms for schools and also ensuring safe water and monitoring of performance of

the teachers. It also ensures the proper accountability of UPE funds ( Samson ,December

2007).

2.3.2.4 Rural road services.

Local Governments are charged with the duty of opening up road net in local

governments. They are also responsible for maintaining the existing ones and making

them accessible by Calvert to enable easy accessibility. This enhances productivity

(ACODE Report, 2008/2009)

2.3.2.5 Agriculture extension services.

With agriculture, local governments play the role of procurement of agricultural inputs

for farmers through the tendering process. They perform the work of monitoring the

agricultural activities like NAADS and PMA (Local government Finance Commission

Report, 2003).

15

2.3.3 Quality of service delivery

The main aim of grants is to promote effectiveness and efficiency in execution of UPE,

PHC, rural water and sanitation, roads, and Agricultural Extension through maximum

service delivery to end users (ROU, 2002a). Achieving the PEAP goals requires

streamlining transfer of funds, harmonizing planning and budgeting, strengthening

transparency and accountability, involving all levels of LGs in decision making process

and having a coordinated monitoring system (FDS, 2002). In order to attain quality and

quantity of service delivery, the LGA 1997 mandates DTBs and DSCs to operate systems

that are strong, transparent and accountable to LGs. (ROU, 1997). The Act also protects

district employees from victimization or dismissal from office so long as performance is

in accordance with the law.

However, in attempting to deliver service, scandals and allegations of improper behavior

of political office bearers have tended to usurp powers of the DSCs and DTBs by

influencing appointments and awarding tenders. In support of the above argument the

Sunday monitor August3,(2003) for example, accused the chairman of Mbale District of

usurping powers of the DSC by vetting job applicants and influencing recruitment and

appointment of the CAO and his deputy( Kalungi, 2005; Paul et al ,2003).Uganda

introduced the decentralization policy in 1997 under the Local Government Act of 1997

that has since undergone four amendments. The policy inherently decentralized service

delivery institutions and their governance in order to improve access to services for the

rural poor. Based on an analysis of available literature, the paper documents the state of

knowledge regarding rural service provision in Uganda under decentralization and

16

identifies knowledge gaps for further investigation. Its focus is on education, health, and

agricultural advisory services, as well as the management of natural resources in Uganda.

The analysis revealed that results in terms of attaining the objectives of decentralization

are mixed. While as anticipated generally decentralization resulted in greater

participation and control over service delivery and governance by local communities,

local governments are still grappling with a range of challenges, namely, inadequate local

financial resources and over-reliance on conditional central government grants; inability

to attract and retain sufficient trained and experienced staff; corruption, nepotism, and

elite capture. With regard to the specific services, while Universal Primary Education

(UPE) policy under the decentralization framework is credited with a dramatic increase in

primary school enrollment, public primary education services are still dogged by

concerns over financing, equity, quality, and the need for curriculum reform. Some

studies show that there has been no improvement in health services with many health

status indicators either stagnating or worsening. In general, decentralization of education

and health services has not resulted in greater participation of the ordinary people and

accountability of service providers to the community. Regarding agricultural extension

and advisory services, except for areas serviced by NGOs, the majority of the country

does not readily access extension services, because districts have been unable to prioritize

the operational expenses. However, there is some evidence that the devolution of

responsibility for Natural Resource Management (NRM) has contributed to greater

compliance with some NRM requirements in some areas while in other areas forest

conditions have declined following decentralization. Generally, evidence on whether

17

decentralization has improved service delivery in Uganda is still inconclusive, and more

research is needed(Bashaasha et al , Feb2011)

Local Governments are faced with numerous constraints in infrastructure provision.

Some of these constraints include the lack of powers by local Governments to acquire

land compulsorily in public interest for infrastructure provision; limited expertise

(manpower) and little transfer of knowledge by the various stakeholders; Lack of

appropriate and sustainable technology; Lack of proper planning facilities, equipment and

reliable data and information; user fees concept not well appreciated; conditionalities

attached to grants and transfers not enabling and non flexible; Local Governments not

adequately consulted in policy formulation and yet they are the major partners in

implementation; and no guarantee of employment opportunities for the local people

(Participants manual June, 2003).

Also, findings from UPPAP II (2002), noted that district tenders are awarded to council

staff, relatives and other public officials (ROU, 2002a). Also, district politicians; dictate

awarding of tenders especially in areas of interest. For example, the LC Chairman for

Kampala central was accused of influencing tendering process in KCC by awarding

tenders where his interest lay. (Monitor Newspaper, May 27, 2003). District politicians,

therefore, cannot pretend to supervise their own projects and ensure accountability and

quality service delivery (Kalungi, 2005)

Mkafunisa (1997) observes that such behaviors generally create concern about ethical

conduct of office bearers. Rasheed and Olowu (1993) argue that unethical conduct in

Africa starts from top of political and public servants leadership and flows down the

18

user, 07/15/11,

How can a person of 1993 support what is written in 1997?

ranks by example. Allen (1990) further contends that, besides arrogance that inhibits civil

servants to follow financial regulations, sometimes they also fear the politicians in whose

hands their job security lies. This is a syndrome of poor service delivery arising from lack

of independence by DSCs and DTBs, to enforce transparency and accountability in LGs.

Furthermore, the Swiss procurement Company (SWIPCO) Inspection Report (2000) in

New Vision (2002) reported that the quality of services identified by schools, under

Schools Facilities Grant (SFG) was sub standard despite improvement in quantity. This

included poorly constructed schools using sub standard materials, limited capacity of

technical personnel and non compliance of contractors with recommended technical

specifications and lack of technical skills by School Management Committees (SMC) to

efficiently supervise contractors. At lower government levels, the role of DTBs in

relation of SFG committees in selection of contractors was not clarified in SFG guideline.

This did not only cause confusion at the district but also made politicians put pressure on

SFG committees in selection of contractors (New Vision, June 10, 2002).

The study was of the view that decentralization failed to institute checks and balances to

deal with ethical behavior. For example, there is no mechanism for professional civil

service in decentralized units. The administrative units are synonymous with the

movement political system. This undermined capacity of LGs to deliver effective and

efficient service delivery to the end users (ACODE, report 2008/2009)

19

user, 07/15/11,

We would use further if the previous paragraph belonged to Allen

2.3.3.1 Monitoring of funds and service delivery

UDN (2003) and Christian Aid (2001) have mentioned lack of participatory monitoring

by LGs as serious drawback to financial accountability. UDN and Christian Aid

maintained that engaging grassroots would make them identify problems in the

community and propose relevant remedies in order to get results. This is healthy for

financial accountability and service delivery. Ndugu et al (2002) argued that monitoring

funds by LG institution is largely uncoordinated duplicated fault finding and generally

depict poor follow ups.

According to Nkata (2002), the purpose of stakeholders’ participation is to ensure sense

of efficiency and competency, which emerges as a function of ability to influence the

variables of the program. He argues that, if people are perceived to have capacity in terms

of wisdom and intelligence to collectively exercise participation in the program, they

become responsible, interested, informed, rational and cooperative. Nkata identifies

accessibility and social range of stakeholders as strong pillars in financial management.

He sees accessibility as the continuum reflecting the access the stakeholders have to the

actual decision making or the amount of influence they can exert towards a given

decision outcome. On the other hand, he sees social range of participation as the range of

people involved in the program and their extent in implementation and management.

According to the Monitor News paper (2003), Blake of WB strongly supports the

involvement of the civil society in preparing and managing financial budgets in order to

improve efficiency and check corruption among the public accountants on service

delivery.

20

The participatory approach to public expenditure management leads to choosing

priorities, which are pro-people and not individuals and improves the capacity of

Community and CSOs to monitor inputs, outputs, budgets, expenditure and services

(monitor News paper February 19, 2003).

The value of monitoring is enshrined through participation. Experience from sub –

Saharan Africa suggest that civil society participation can add considerable value to

PRSP processes and policy processes more generally and can contribute to more

responsive behavior on the part of donors and governments(DFID, 2002;Kenneth April,

2004)

2.3.3.2 Financial Accountability and service delivery

According to the UN (1998) on Government accounting and reporting, the need for

financial accountability in the public sector raises because resources used are collected

from people and used on their own behalf by government. For a better understanding of

accountability Paul in the World Bank discussion paper (1993) defines accountability as:

The driving force that generates the pressure for the key actors involved being

responsible for and ensures public service performance, (WB Discussion paper, 1993:5-6).

Paul viewed two factors that influence accountability from the stand point of the public.

One is the extent to which the public has access to alternative suppliers of a public

service. This study is of the view that, this is possible where the rate of a awareness is

high and where the people are fully involved and can freely express themselves. The

second observation by Paul is the degree to which the public can influence the final

outcome of a service through some form of participation of articulation of protest of

21

feedback, irrespective of whether they exist. This Paul argues, is the responsibility of

exerting their voice in order to enhance accountability.

The Fulton Committee also cited in the WB discussion paper (1993) notes that weakness

in enhancement of accountability for public services has traditionally been viewed from

supply side. This means that, accountability is meant for the consumption of relevant

government bodies like Auditor General or Parliament and not the public.

Fulton suggests solutions to include establishing units within government departments,

units that are accountable, where output can be measured against costs or other criteria

and where individuals can be held personally responsible for their performance.

Kalungi (2005), echoes that enhancement of financial accountability will improve GOUs

capacity for aggregate fiscal planning and management. According to Kalungi (2005)

public accountability and transparency will increase by producing more accurate and

timely budget and financial information. It also enhances donor confidence to channel

disbursement through budget support, strengthen fiscal planning and reporting. As a

show of shortfalls in public financial accountability in Uganda, UDN (2003) argues that

the LGA (1997) does not mandate the citizenry to hold public officials acceptable. This is

what is on the ground because the culture of involvement of the citizenry to hold the

public officials accountable has not taken shape at the grass roots levels.

Further more, the UNDP Report (2000) contends that there can be no real progress in

combating poverty if accountability is not embodied in strictness that is transparency and

22

accountable to people. The report therefore, notes that combating poverty works well

when people’s interests, needs and human rights are recognized.

Additional to the above, Bidandi (2003) shows that audit function at the district is still

weak and well facilitated. That, this compromises the adequacy of audit function in terms

of reporting and follow ups on PAF activities and undermines the principle function of

audit to ensures that controls are complied with and the value for money is achieved. In

order to promote value for money, Malinga (2002) supports the idea of comprehensive

Sector wide audits for entire sector in one financial report.

According to Rutherford (1983), financial reports are very important examples of the

accounts used in process of accountability. The study is of the view that modern approach

to financial reporting focuses attention on need to provide useful information rather than

on mere compliance with any particular established procedures. Such deviations from

procedures would call for grassroots involvement in, monitoring of PAF.

2.4.0 The relationship between grants and service delivery

A large part of the governments’ resources has been transferred to local governments for

running more than 70% of the service. Quick analysis of the 1999/2000 recurrent budget

shows that if you exclude the centre constitutionally mandated service, over 78% of the

recurrent budget funds are for transfer for expenditure on decentralized services,

delivered by local government (Muduuli 1999).

The definitions of unconditional grants, conditional and equalization grants also bring out

the relationship very clearly as being to local government to run the decentralized service,

23

expended for the purpose agreed upon and meant for a service in which a local

government lags behind (Article 193 section 2, 3, 9 of the constitution).

In analyzing challenges to LGDP II implementation, Kainza (November, 2008) cited

diversion and misappropriation of funds as a common phenomenon in most levels of

local governments which impact on quality of service delivery to the poor. Kainza also

points out heavy reliance on donor funding for the projects implemented by the district

and this affects service delivery every time funds are not remitted in time.

2.4.1 Financial administration

Included in financial administration are several important activities such as annual

budgets, estimated receipts and expenditure of the local government the system of

accounting must reflect accurately the day today financial transactions. The local system

of administration of property taxes and government transfers (Harold, 1964)

However, even where there is the possibility for decentralization certain financial

operation may well be centralized in order to carry out national programs and policies

and secure honesty in the handling of funds. These includes:-

Allocation of funds administrative units in accordance with national plans for

development.

Regulation of financial accounting procedures and auditing of financial

transactions to ensure proper handling of funds.

Granting of tax and revenue powers to local authorities at uniform and nationally

consistent basis like scraping of the graduated tax for Uganda case.

24

Allocation and supervision of grants in aid their integration with local budgets

like use of parliamentary committee on local government funds and inspector

general of government for Uganda’s case.

Financing of projects serving larger areas than single local units such as roads and

hospitals (Kalungi,2005).

2.4.2 Revenue sharing

There are three basic arguments for the general revenue sharing which include the

following.

First it is needed to alleviate an impending state and local fiscal crisis.

Secondly, it is needed because it would shift powers to state and local government,

which are more responsive to the needs of people than in the central government.

Thirdly, it would redistribute resources from the affluent to the less affluent by

shifting part of the burden of government expenses from the general responsive state

and local taxes to t he more progressive local government income tax and by

redistributing resources from the richer state to the less well off.

Hence calls for government assistance to local authorities in order to fulfill its budgetary

objectives (Schuttze et al, 1971).

The revenue sharing experiences across level of local governments vary greatly and there

are no general rules for sharing of resources. The Ugandan system is comparably simple,

but the revenues rather scattered, with a fixed percentage of the collected revenues

assigned to several tries of local governments (Kalungi, 2005)

25

Table 5: Revenue sharing among local Governments

Local government Level Percentage sharesDistricts L.C.V < or = 35%Sub counties L.C.III > or = 65%County councils L.C.IV 5 %Sub County L.C.III 65%Parish L.C. II 5%Villages L.C. I 25% Source: Ministry of Finance Planning and Economic Development.

For easy and effective leadership and management, the tendency of maintenance of all

powers at the central government has lost value hence needs for local governments.

Many countries in the world have local governments, which are authorized with political,

social and economic powers. The concept of local government differs according to the

different countries, which are mainly metropolitan and provincial. Some countries use

federal, decentralization and districts (Wilson et al, 1993)

Local government is vitally important part of the economy. Uganda’s local governments

are based on decentralization system on district levels, which are again subdivided into

division, counties, sub-counties up to villages where the local leader are elected directly

by all eligible voters(Nsibambi,1999)

2.4.3 Finance sources

In most of the developing countries, sources for local government finances are almost

similar. Local revenue fall into several classes such as:- additional percentages of taxes

levied by the central government; local tax on Land and building, personal taxes such as

graduated tax, Pay As You Earn(PAYE), license fees , and tax earning from public

utilities and services grant from the Central Government, revenue from commercial

enterprises, voluntary contributions and gift and loans(Participants manual ,June 2003)

26

CHAPTER THREE

METHODOLOGY

3.0 Introduction

This chapter describes the research design, study population, sample size, source of data,

collection and instruments, data analysis, budget and time frame.

3.1 Research design

The study was descriptive and analytical in nature with data collected mainly from

primary source with the use of questionnaires and interview to supplement the available

secondary data. The researcher used cross sectional design.

3.2 The study population and the sample.

3.2.1 The study population.

The study was centered on the Sub County local leaders and a few of the beneficiary of

the services rendered in Kasitu Sub County. The study population was 64 local leaders

3.2.2 Sample size

The researcher used a sample size of 40out of the study population of 64 people including

leaders and civil servants of the area. This was according to Rascoes (1975) sample that,

states that, a sample of 30 and even more is most appropriate and effective.

3.2.3 Sampling methods

Simple random sampling was used as a method of choosing any member out of the

population sample.

27

3.3 Sources of data.

Both primary and secondary data sources were used. Primary data was obtained using

questionnaires administered to the different respondents in Kasitu Sub County about

grants and service delivery.

Secondary data was got from records and reports of the performance of Local

governments such as Journals, text books, reports, quarterly releases, magazines and

newspapers.

3.4 Study variables

The study was concerned about grants and service delivery. In this case, Grants was the

independent variable and was to be measured by looking at the number of grants received

by the local governments while service delivery was dependent variable and this was

measured by the various activities that are funded by the grants given by the central

government.

3.5 Data collection methods

The researcher used questionnaires as the main data collection method. Questionnaires

were designed representing the two variables about grants and service delivery. The main

advantage of questionnaires the respondent is given time to think and therefore write

down responses that best fit their opinion. The researcher held discussions with

respondents.

28

3.6 Data quality control

This involved testing (pre-testing) the tools of data collection in order to determine the

reliability and validity of data. The tools were pre-tested in Buhundu parish Harugale sub

County Bundibugyo district.

3.7 Data processing

Data analysis included editing and coding. Editing was mainly done to ensure accuracy

and consistency of information provided. Coding was done to transform the available

information into a more presentable form. The data was entered into a computer

programme called SPSS (Statistical Package for Social Sciences) and was presented

using frequency/percentage tables and graphs. The relationship between the variables of

the study was tested using Pearson Correlation Coefficient. This was selected because the

variables under study were numerical.

3.8 Limitations of the study

The research experienced the following

(i) Some respondents were not willing to release information pertaining to their

performance. However, the researcher tried to convince them that the research

was purely academic and he was not spying on them.

(ii) Resources such as finance and time were not enough to guarantee a

comprehensive study. However, the researcher tried to have a very tight budget

and time frame that compromised the research process.

(iii) Some of the respondents were reluctant to react to answer the questions

the researcher asked. However, the researcher tried to talk to the respondents and

convince them that the study was purely academic.

29

CHAPTER FOUR

PRESENTATION OF THE FINDINGS

4.0 Introduction

This chapter presents the findings of the study. Starting with the respondents’ background

characteristics, this chapter presents the findings related to the modes of transfer of grant

funds, the nature and quality of services delivery by the local government and the

relationship between grants and service delivery.

4.1 Respondents’ background characteristics

The study captured information regarding the characteristics of the respondents was

about age, sex, marital status, designation of the respondents.

Figure 1: Showing description of respondents according to Age

8; 20%5;

13%

21; 53%

5; 13%

1; 3%

20-3031-4041-5051-60Above 60

Source: Primary data

From figure 1 above 20 % of the respondents were aged 20-30 years, 12 % respondents

fell in the age bracket of 31-40, 52% of the respondents were between 41 and 50 years,

13% were aged 51- 60 years while 3% were above 60 years. The age groups and

corresponding responses reveal the level of maturity and responsibility of the responses.

30

This is also a sign of knowledgeable capacity on grant accessed and service delivery

performance of the local government units.

Figure 2: Showing description of respondents according to gender

25; 63%

15; 38%

MaleFemale


Figure 2 above show that majority of respondents (62%) were male as compared to

females who constituted 38%. This therefore shows that the majority of the respondents

are male. The above result implies that though the representation of male dominated,

females too were represented.

31

Figure 3: Showing description of respondents according to marital status


Figure 3 above show that majority respondents (50%) were married, 37.5% were single

while 12.5% were widowed. This therefore shows that the majority of the respondents are

married. The above finding implies that married people are entrusted with positions of

responsibility and are considered as more rationale in making decisions as compared to

other people falling in other statuses.

Table 6: Showing the level of education of the respondents

Frequency Percent Valid Percent

Cumulative

Percent

Valid Primary 10 25.0 25.0 25.0

Secondary 20 50.0 50.0 75.0

Tertiary 10 25.0 25.0 100

Total 40 100.0 100.0

32

Table 6 shows that 25.0% of the respondents had acquired primary education, and 50.0%

had completed secondary level while 25.0% had completed tertiary education. All the

respondents were literate. Literacy levels greatly influences an individual’s propensity to

be selected for a position/positions of responsibility at all levels, community, national and

so forth.

Table 7: Showing the designation of the respondents


Cumulative

Percent

Valid Sub County Chief 1 2.5 2.5 2.5

LCIII chairperson 1 2.5 2.5 5.0

LCIII Councilor 8 20.0 20.0 25.0

Parish Chief 8 20.0 20.0 45.0

LC I chairperson 22 55.0 55.0 100.0

Total 40 100.0 100.0

Table 7 shows that 2.5% of the respondents were sub count chief and LC III

chairperson respectively, 20% of the were members of Kasitu Sub County Local

Government Council and parish chiefs respectively while 55% were LCI chairpersons.

4.2 Mode of grants transfer in Kasitu Sub County, Bundibugyo district

A series of questions were asked to establish the mode of grants transfer in Kasitu Sub

County, Bundibugyo district. First the respondent local government leaders were asked as

to whether they had received any grants and the findings are as presented in the table

below:

33

4.2.1 Whether Grants have been received

Table 8: Whether local government receives any grants in Kasitu Sub County, Bundibugyo district


Cumulative

Percent

Valid Yes 40 100.0 100.0 100.0

No 0 0.0 0.0 100.0

Total 40 100.0 100.0

Findings from Table 8 above shows that all the respondent local leaders in Kasitu Sub

County agreed that they had received grants. This implies that the local units in the area

have benefited from the grants from the Central government.

4.2.2 Type of grants received

Respondents were asked to indicate the types of grants which they had received. The

results obtained are shown in Table 3 below;

Table 9: Types of grants received in Kasitu Sub County, Bundibugyo district

Type of grant Frequency Percent Valid Percent

Cumulative

Percent

Valid Conditional 30 75.0 75.0 75.0

Unconditional 6 15.0 15.0 90.0

Donor 4 10.0 10.0 100.0

Total 20 100.0 100.0

Source: Primary

From the table 9 above, it was established 75.0% of the respondents indicated that most

of the grants received by the community leaders were conditional, 15.0% indicated that

they were unconditional while 10.0% indicated that they received donor grants.

34

Study findings in relation to the mode of grant transfer in accordance with the minority

28.6% of the community leaders show donor grants at study time.

4.2.3 Means of Grant transfer used

The respondent local government leaders were also asked about the means through which

the grants are made and the findings are as indicated below:

Table 10: Grant transfer means in Kasitu Sub County, Bundibugyo district

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Through the District 31 77.5 77.5 77.5

Direct to Sub County 9 22.5 22.5 100.0

Total 40 100.0 100.0

Source: Primary

As presented in the table 10 above according to 77.5% of the respondents indicated that,

the grants were given to Kasitu Sub County through the District while 22.5% indicated

that the grants were given direct to the Sub County as indicated by the majority of the

respondents, most of the grants are passed through the District Local Government office

before they are given out to the sub counties. The essence behind this arrangement is to

increase on monitoring and therefore levels of reporting pertaining utilization of the

grants by Sub County local government management.

4.2.4 Frequency of receiving the grants

Respondent community leaders had varying views as regard to how often they received

grants in this Kasitu Sub County, Bundibugyo district and the findings are as presented in

the table below:

35

Table 11: How often grant are received in Kasitu Sub County, Bundibugyo district

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Yearly 12 30.0 30.0 30.0

Quarterly 28 70.0 70.0 100.0

Total 40 100.0 100.0

Source: Primary

Study findings show that 70% of the respondents indicated that the grants were received

on a quarterly basis while 30% indicated that they were received on an annual basis.

4.2.4 Role played by the respondents in utilization of the grant received

After receipt of these grants the local community leaders, the study established that the

local leaders play various roles amongst with regard to the grants received and the

findings are as presented in the table below:

Table 12: Local leaders’ role in the grant received in Kasitu Sub County

Role played Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Supervision and monitoring 28 70.0 70.0 70.0

Member of planning desk 8 20.0 20.0 90.0

Project implementer 4 10.0 10.0 100.0

Total 20 100.0 100.0

Source: Primary

As seen table 12 above, study findings according to the majority 70.0% of the

respondents indicated that they were playing a supervisory and monitoring role as a way

of controlling the grants received.

36

The study also established that 20% of the respondents were members of the planning

desk who were charged with the responsibility of ensuring that the grant received is

appropriately put to its proper and intended use while 10.0% revealed that they were

project implementers

However the local governments have always experienced challenges in the process of

receipt and utilization of grants. The local government leaders acknowledged some

challenges as regard to these grants and the findings are as summarized below:

4.3 The nature, quality of services delivered by the local government in Kasitu Sub County, Bundibugyo district

The study also established the nature and quality of services delivered by the local

government in Kasitu Sub County, Bundibugyo district. The findings with regard to the

nature are as indicated in the table below:

4.4 Quality of service delivery

4.4.1 Education

Table 13: Management of the Sub County supports development and rehabilitation of educational institutions

Frequency Percent Valid PercentCumulative Percent

Valid Strongly agree 20 50.0 50.0 50.0 Agree 7 17.5 17.5 67.5 Uncertain 5 12.5 12.5 80.0

Disagree 6 15.0 15.0 95.0Strongly Disagree 2 5.0 5.0 100.0

Total 40 100.0 100.0

Source: Primary Data.

Table 13 shows that 50.0% of the respondents strongly agreed that management of the

Sub County supports development and rehabilitation of educational institutions 17.5%

agreed, 12.5% were not sure , 15.0% disagreed while 5.0 % strongly disagreed . In all,

37

majority of the respondents 67.5% agreed that management of the Sub County supports

development and rehabilitation of educational institutions. Management of the Sub

County supports development and rehabilitation of educational institutions. The study

established that some schools in the area had benefited from the facility grants from the

sub county such as text books, twin desks and construction projects such as Pit latrines

and refurbishment of the structures that were in a dilapidated state. By implication, such

have therefore improved on the quality of education service delivery in the area.

4.4.2 Extension services

Table 14: The sub county supports and funds activities aimed at promoting agricultural development


Cumulative

Percent

Valid Strongly agree 20 50.0 50.0 50.0

Agree 11 27.5 27.5 77.5

Uncertain 1 2.5 2.5 80.0

Disagree 6 15.0 15.0 95.0

Strongly Disagree 2 5.0 5.0 100.0

Total 40 100.0 100.0

Source: Primary data.

Table 14 shows that 50.0 % of the respondents strongly agreed that the sub county

supports and funds the activities aimed at promoting the agricultural development,

27.5% agreed, 2.5% were not sure, 15.0% disagreed, while 5.0% strongly disagreed.

Majority of the respondents therefore agreed that the sub county administration supports

agricultural development by providing extension services as a means of stimulating and

influencing the uptake of modern farming practices in the sub county. It was found out

that services are rendered by Agriculture/Veterinary officers and their assistants at the

sub county level.

38

On the side of inputs, it was found out that improved seedlings have been provided by

Sub County to model farmers for example G.nuts, Beans, Banana suckers, Barley.

Through informal conversation with the respondents, it was revealed that such model

farmers distribute the proceeds to fellow farmers on a rotational basis.

4.4.3 Water project development

Table 15: The quality and availability of water has been improved by the funding from the sub county


Cumulative

Percent

Valid Strongly agree 33 82.5 82.5 82.5

Agree 2 5.0 5.0 87.5

Uncertain 2 5.0 5.0 92.5

Disagree 1 2.5 2.5 95.0

Strongly Disagree 2 5.0 5.0 100.0

Total 40 100.0 100.0


Table 15 shows that 82.5% of the respondents strongly agreed that the sub county

administration has funded water developed programmes in the sub county thus bringing

about increases availability of water in the area and consequently increased access for

the water users, 5.0 % agreed while none were not sure and disagreed respectively,

while 5.0 % strongly disagreed. However some areas still lack sufficient water for

example the hilly areas and some parts of Burondo parish whose gravity water has

decreased due to too much drought and poorly maintained dam which needs

rehabilitation.

Through informal conversation with the Chairperson, LCIII, it was revealed that schools

in the sub county have cistern tanks and also some boreholes for purposes of improving

the quality of hygiene and sanitation in these schools.

39

The study went ahead and investigated the water projects that have been implemented by the sub county in different communities. The following results were obtained.Table 16:Water projects supported by Kasitu Sub County Local Government.

Water project Frequency (n=40) Percent

Valid Boreholes 18 45.0 Gravity flow schemes 20 50.0 Protected springs 31 77.5

Unprotected springs 21 52.5Water harvesting technology 10 25.0Total *100

Note: The total responses in Table 16 above *100 is more than the sampled respondents, 40 because some of the respondents gave more than one response. Table 16 shows that 45.0 % of the respondents indicated that boreholes have been constructed, 50.0% indicated that gravity flow schemes have been laid and networked in the communities, 77.5 % protected springs,52.5 % unprotected springs and 25.0 % indicated that water harvesting technology

4.4.4 Health facility development

Table 17: The management of Kasitu Sub County has supported health facility development.




Total 40 100.0 100.0

Source: Primary data.Table 17 shows that 70.0 % of the respondents strongly agreed that the sub county has supported health facility development in the communities, 10.0% agreed, 10.0% were not sure, 7.5%disagreed while 2.5% strongly disagreed respectively. Health centers like Bundimasoli, Kyondo and Burondo have benefited from support extended by Kasitu Sub

40

County Local Government development through drug supplies and support to outreach services provided during immunization days in form of transport funding and feeding for the medical staff.The study investigated the frequency at which the administration of the Sub County distributes drugs to the health centres under its jurisdiction. All the respondents (100%) indicated that it is done quarterly. Such a facility therefore has brought about the improvement of health service provision to the population in the area.

4.4.5 Roads

Table 18: The sub county administration has funded road maintenance, construction and upgrading programmes




Total 40 100.0 100.0


Table 18 shows that 85.0 % of the respondents strongly agreed that the Kasitu sub county administration supports road maintenance and upgrading programmes in the sub county, 5.0% agreed and were not sure respectively while 2.5% of the respondents disagreed and strongly disagreed respectively. Through observation, it was established that the road infrastructure is covered by 5 feeder roads which include Kikyo – Ntandi road, Ntandi

trading centre to Kasitu sub county headquarters, Burangapasi – Nyakabira road,

Bundimasoli – Kasitu headquarters, and Mumbwende – Malomba road which in total,

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covers 56 km. These roads were constructed using LGMSD and National Road Fund

(NRF

4.5 Relationship between Grants and service delivery in Kasitu Sub County,

Bundibugyo district

Table 19: Correlation table showing the relationship between grants and service

delivery

**Correlation is significant at the 0.01 level (2-tailed).

The relationship between grants and service delivery was statistically tested using

Pearson’s correlation matrix. This was used because both grants and service delivery

were numerical. A strong positive relationship (r=.8O3*, p<0.0l) was established because

.803 is close to 1, with a p-value of 0.000 which is less than o.o1implying that a positive

relationship that was significant at 0.01 level existed between grants and service delivery.

To further establish the significance of the contribution of grants to service delivery, the

coefficient of determination (r2) was computed. Since r=0.803. r=20.644. This implies

That timely and substantial extension of to Sub County local government units

contributed 64% on the levels of the quality of the services delivered to the community

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by Kasitu Sub County Local Government administration while 36% was contributed by

other factors such as taxes levied on small scale business enterprises and tenders The

implication of the above relationship is that effective utilization of grants positively

influence the provision of quality services and therefore reminds the management of

Kasitu sub county Local Government of the need to effectively monitor how grants are

utilized so as to boost service provision levels.

CHAPTER FIVE

DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

43

5.0 Introduction

This chapter discusses the study findings with respect to the objectives, makes

conclusions based on the findings and recommendations for possible improvements

5.1 Discussion of the findings

5.1.1 Modes of transfer of grant funds

The study established that Kasitu Sub County received grants. This was agreed to by all

(100%) of the respondents. It was revealed that 75.0% of the grants received were

conditional. These have been put to use and influenced the performance of the sub

county. According to Kalungi (2005), these conditional grants are administered at

sectoral and non-sectoral levels; sectoral grant is allocated to health, education, roads,

agriculture and water under LGMSD while non sectoral grants supports infrastructure

and service provision.

The findings of the study are in line with ROU (2002a), who observed that grants are

meant to promote effectiveness and efficiency in execution of UPE, PHC, rural water and

sanitation, roads, and Agricultural Extension through maximum service delivery to end

users.

The study findings also revealed that unconditional and donor grants were also received

by the management of Kasitu Sub County.

5.1.2 Nature, quality and service delivery by the local government

44

Findings from the study revealed that Kasitu Sub County Local Government supported

the projects aimed at improving the delivery of services to the people. From the findings,

it was revealed by majority respondents that the Sub County management has supported

the extension and development of water resources in the area such that the status of

sanitation and hygiene at household level can be boosted. Local Governments do the

work of ensuring that, it provides safe waters to its people by constructing gravity flow

schemes and construction of protected springs and maintenance of water sources. It also

monitors the its people to ensure proper sanitation services like ensuring that the people

have latrines and also that they boil water for drinking to decrease the risk of possible

diseases( Water Aid report, August 2008).

The findings of the study further revealed that management of Kasitu Sub County has

supported the development of educational facilities by supplying text books and twin

desks to schools. It has also established that the management of the sub county has

supported construction of modern toilets in some of the schools. The main aim of grants

is to promote effectiveness and efficiency in execution of UPE, PHC, rural water and

sanitation, roads, and Agricultural Extension through maximum service delivery to end

users (ROU, 2002a).

Findings of the study further revealed that management of Kasitu Sub County has

supported the accessibility of farmers and small scale producers to extension services

such that they can transform their modes of operation to standard. This has been done

along side with feeder road construction and maintenance hence the farmers are now

linked to the main trucks and so their produce can easily be sold for cash. With

45

agriculture, local governments play the role of procurement of agricultural inputs for

farmers through the tendering process. They perform the work of monitoring the

agricultural activities like NAADS and PMA (Local government Finance Commission

Report, 2003).

Local Governments are charged with the duty of opening up road net in local

governments. They are also responsible for maintaining the existing ones and making

them accessible by Calvert to enable easy accessibility. This enhances productivity

(ACODE Report, 2008/2009)

As the dictum goes that a “ a healthy body makes a healthy mind”, management of the

sub county has participated in improving the status of the health facilities in the area as

well as supplying drugs to that dispensaries. This has helped to increase on the turn up

of the community members for services given the fact that they are available.

5.1.3 The relationship between grants and service delivery

A high positive relationship( r=.803**,p<.000) was established between grants and

service delivery by the local governments. By implication, adequate and timely

disbursement of grants to local governments augments their budgets and therefore

facilitates the delivery of services that they are meant to provide to the community such

as water, infrastructure and health services. Local Governments do the work of

monitoring of health services in the local governments and municipalities (Cindy

Carlson, 2004).

46

The findings of the study are supported by Muduuli (1999) who observed that a large part

of the governments’ resources has been transferred to local governments for running

more than 70% of the service. Quick analysis of the 1999/2000 recurrent budget shows

that if you exclude the centre constitutionally mandated service, over 78% of the

recurrent budget funds are for transfer for expenditure on decentralized services,

delivered by local government. Such grants therefore have greatly increased on the

capacity of the local government units such as Kasitu Sub County to render services to

the community.

The findings of the study are in line with the prescriptions of Article 193 section 2, 3, 9 of

the 1995 constitution of the Republic of Uganda that Local government are to run the

decentralized service. The local government units are therefore given equalization,

conditional and unconditional grants because they have more information about the most

pressing problems in their local environment and therefore can ably allocate the funds to

such areas/sections.

5.2 Conclusions

Local governments through sub counties receive grants. These grants received are either

conditional or donor grants. They are either on a quarterly basis or on a yearly basis.

Management of Kasitu Sub County provides education, health and extension services to

the people. These are coupled with infrastructural development services.

The grants received by the sub county administration have improved on the provision of

services. For example, they have supported the budgets of the sub county hence

enhancing the erection of structures as well as renovation and rehabilitation of the

47

existing ones. It was concluded that grants greatly improve on the capacity of local

governments in standardizing service provision.

5.3 Recommendations

The grants should be sent in time in order to reduce the possibility of paralyzing the

programmes funded by these grants.

The government through its line ministry that’s Ministry of Local government should

revise or increase the size of these grants as to sufficiently meet the budgets as put

forward in the sub counties.

Given the important nature of these grants, they should be sent directly to the sub

counties to avert the unnecessary delays at the district ant thus avert delayed service

delivery to the local residents.

As a way of generating efficiency in service delivery, government through the

ministry of local government should allow sub counties to have their own tender

committee to avoid delays accruing from tendering.

There is need for training of the planning committee members about effective

budgeting practices such that they can ably allocate the grant funds accessed to

priority areas and make follow ups to ensure that the projects are implemented.

There is a need for carrying out periodic value-for –money audits such that the

contractors use and follow the standard specifications such that shoddy work is

avoided.

There is a need for organizing cross region tours for staff of the sub county such

that they can be in position to see and observe what other sub counties have achieved

using the grant funds. They can model and emulate such sub counties and

differentiate the methods used in the utilization of these grants.

48

References

Cindy Carlson, (2004). DFID Health Systems Resource Centre. Case Study 6: Review Of

Health Service Delivery In Uganda – General Country Experience And

Northern Uganda.

City Council Of Nairobi, (2008). Decentralization Proposal.

Deluis Asiimwe, Nakanyike, (2007). Decentralisation And Transformation Of

Governance In Uganda. Fountain Publisher’s Uganda.

Dick Odur, (2003).Local Government Finance Commission. Commission

Recommendation No. 9. Allocation Principles, Formulae, Modalities And

Flow Of Central Government Transfers. Phase One.

Edward F. Natamba, Lillian Muyomba-Tamale Eugene, Gerald Ssemakula Enock

Nimpimya, Immaculate, (2008/2009).ACODE Policy Research Paper

Series No. 39, 2010. Local Government Councils Performance And The

Quality Of Service Delivery In Uganda. Ntugamo District Council Score-

Card.

Fiscal Decentralization Working Group, (2002). Fiscal Decentralization In Uganda. Draft

Strategy Paper.

Kainza Agnes Nzogi, (2008). Challenges In Implementing Pro-Poor Decentralized

Service Delivery In Uganda. A Case Study Of LGDP II In Sironko

District Local Government.

Kalungi James,(2005). The relationship between grants and service delivery in Local

Governments

Kassami, C.M. (2011). Third Quarter (January-March 2011) Releases (FY 2010/2011) –

Transfers To Local Governments. Daily Monitor Wednesday, March 30th

2011, Page 20-19.

Kenneth K Odero, (2004). PRSP In Decentralized Contexts: Comparative Lessons On

Local Planning And Fiscal Dimensions. Uganda Study.

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(2008/2009). ACODE Policy Research Paper Serieno.36. 2010. Local

Government Councils Performance and Quality Of Service Delivery In

Uganda. Nebbi District Council Score Card

49

Mr. John Bitarabeho, (2008). Local Government Finance Commission. A Paper

Presented To A Conference On Access To Development Funding For

Local Governments In Africa. Emperors Palace Hotel, Johannesburg. The

Experience Of Uganda – Local Government’s Role As A Partner In The

Decentralization Process To Strengthen Local Development.

Muduuli, M.C .(1999). Implications Of The 1999/2000 Budget For Local Governments

With Special Reference To Unconditional Grants And Conditional Grants.

Decentralization At Uganda International Conference Center, Kampala,

Nov. 15-19

Nsibambi Apollo (1997). Making Democratic Decentralization An Instrument Of

Poverty Eradication Uganda Challenge. A Paper Presented At The

UNDP Development Forum At The Sheraton Hotel, Kampala On April 4th

1997

Nsibambi Apollo (1998). Decentralization and Civil Society in Uganda, The Quest For

Good Governance, Kampala Fountain Publishers’ Ltd.

Participants’ Manual, (2003). Module A .Decentralization Policies And Practices Case

Study Uganda.

Paul Francis and Robert James (2003). University Of East Angalia, Norwich, UK.

Balancing Rural Poverty Reduction And Citizen Participation: The

Contradictions Of Uganda’s Decentralization Program.

Republic of Uganda, (2002a). Decentralisation in Uganda today institution and relations

Samson, (2007). Factors affecting teachers’ performance at work in primary schools in

Harugale Sub County.

The Constitution Of The Republic Of Uganda, (1995).

The Local Government Act Uganda, (1997).

The Local Government Report, (2003) On Revenue Sharing In Selected District Of

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Development Partners Working Group In Uganda And Wageningen

International.

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Publishers’ Ltd. G. Britain.

51

Appendix I: Questionnaire for the local leaders

Dear respondents,

This is to request you to fill in the questionnaires on the research study about the grants

and service delivery in Kasitu Sub County. I am a 4th year B. Com. student of Makerere

University carrying out research on this topic as a partial fulfillment of the requirement

for a Degree of commerce. This study is purely academic and confidentiality is assured

for the answers given.

SECTION A: DEMOGRAPHIC CHARACTERISTICS

1. Age

20 -30 years 31 – 40 years 41 – 50 years

51 -60 years above 60 years

2. Sex

Male Female

3. Marital status

Single Married Divorced

Other specify ………………………………………………………………………...

4. What is your occupation

Civil servant Politician

Others specify……………………………………………………………………….

5. What is your post (job)

Sub County Chief Chairman L.C.III

L.C.III Executive member S Sub accountant

Others specify…………………………………………………………………

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SECTION B: GRANT

6. (i) Do you receive any grants

Yes No

(ii) If yes what type?

Conditional Unconditional

Equalization Donor grants

Others specify……………………………………………………………………….

7. Through which means have you received those grants.

Directly to your sub/county through the District

Others specify…………………………………………………………………………..

8. When do you receive these grants?

Monthly Yearly Quarterly

9. (i) Do you participate in the control of these grants?

Yes No.

(ii) If yes, what is your role?

Supervisory and monitoring Member of the planning desk

Project implementers not involved

SECTION C: SERVICE OFFERED

10. What are the services provided by Kasitu sub county to the communities?

Education Health

Agriculture and extension services Water project development

Infrastructure Development

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Others specify………………………………………………………………………….

11. Management of the Sub County supports development and rehabilitation of educational institutions

Strongly Agree Agree Not sure Disagree Strongly Disagree

12. The sub county supports and funds activities aimed at promoting agricultural

development


13. The quality and availability of water has been improved by the funding from the sub

county


14. The management of Kasitu Sub County has supported health facility development.


15. The sub county administration has funded road maintenance, construction and upgrading programmes


SECTION D: RELATIONSHIP BETWEEN GRANT AND SERVICE DELIVERY16. The grants received have enabled the sub county administration to implement infrastructural development programmes in the communities


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17. Grants received by the sub county have been channeled into rehabilitation of

structures and these have been made functional such as boreholes and school buildings


18. The grants have facilitated extension of services to areas where they never existed

such as piped water


19. The grants received have enabled management to increase on the accessibility of

markets to farmers through improvement of roads.


20. The quality of health services in the sub county has improved because of the grants received from the central government.


Thank you very much for your cooperation in filling this questionnaire.

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APPENDIX 2: Proposed Budget for the research dissertation

ITEMS QUANTITY AMOUNT

Ream of papers 2 20,000/=

Research proposal typing 1 10,000/=

Transport 200,000/=

Research report typing and

binding

3 60,000/=

Refreshments 50,000/=

Airtime 20,000/=

Miscellaneous 50,000/=

Total 410,000/=

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Appendix 3: Time Frame

NUMBER MONTH ACTIVITY

1 March Proposal writing

2 April Approval proposal

3 May, June Field study

4 June First Report Draft

5 July Approval of the Report

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