The Department of Finance is charged with the overall financial planning and management of the district council. The main functions are:
– Prepare annual revenue and expenditure estimates
– Control expenditures on votes
– Ensure prompt collection of revenue and remission to accounts under the proper sectoral programmes and items
– Conduct frequent checks on revenue collection and expenditure
– Maintain approved accounting system and prepare annual accounts for audit purposes and financial statements and returns as required by the Local Government Act and Financial and Accounting Regulations and any other special reports.

The finance department handles the following categories of finances:
– Local revenue- This comprises Property taxes, User charges, Departmental revenue and miscellaneous sources.
– Central Government transfers – Conditional grants, Unconditional Grants and Equalization Grants
– Donor and NGO funds – generally grants and donations from donors and NGOs., CBOs

Potentials
– Key posts in the department are filled
– Final accounts have been produced to date
– Steady increase in central government transfers
– Most staff are pursuing professional courses (CPA, ATC) under the Ministry of Finance.
– Many programmes are piloted in Lira which bring finances to the district (MTBF) “Administrative Network Project”, IFMS (Integrated Financial Management System) , etc

Constraints
– Inadequate office space at the District head office for Finance and Planning
– Narrow revenue base
– Accounts are still being prepared manually at the sub-counties
– Pilot projects which are terminated without proper evaluation of lessons learnt
– Lack of transport facilities at both the District head office and sub-counties
– Low budget ceilings for planned activities due to inadequate funds.

Opportunities
– IFMS is being piloted in the district for strengthening financial management
– Electronic Fund Transfer (ETF) has been rolled out to the district
– Flexibility in co-funding using even equalisation grant
– FDS gives more autonomy and flexible planning and managing of local government priorities
– Strengthening links with NGOs shall provide a wider range of opportunities
– Ministry of Finance is sponsoring professional courses like CPA/ATC

Challenges
– Creation of new districts namely Otuke and Alebtong has reduced the districts revenue base.
– Demand by donors for co-funding may over stretch the local revenue
– Inadequate funding of capacity building may leave the local governments over stretched in handling development initiatives
– Inadequacy of the 20% provision of local revenue for council threatens implementation of other activities
– Short falls of releases of central government transfer
– Shortfalls in local revenue collection
– Many court cases are against the district.
– Government intention to stop funding graduated tax compensation