INTRODUCTION TO PUBLIC SECTOR MANAGEMENT

Public sector Definition:

Also referred to as the state sector, is a part of the state that deals with the production, delivery
and allocation of goods and services by and for the government or its citizens, whether national,
regional or local / municipal.

Public sector also refers to the economy concerned with providing basic government services.
It’s that portion of society which is controlled by national, state or provincial, and local
governments.

Examples of public sector activities range from delivering services such as social security,
education, health care, roads, organizing national defense and so on.

The public sector is made up of entities that are not privately owned whose major objective is
provision of services other than making profits.

Reasons for existence of the public sector

 To provide goods and services to the citizens regardless of their ability to pay.
 To correct any perceived inequalities through taxation and provision of services.
 To Gain control and economic regulation over key sectors in the economy such as health,
education, security and defense (Note that though there has been liberalization of some of
these activities such as education-private institutions, the different entities still operate
under the respective ministries and are regulated).
 To ensure that goods and services are provided at acceptable standards. This explains the
existence of regulatory bodies/agencies like Uganda National Bureau of Standards and
Uganda National Council for Higher Education.

Characteristics of public sector organizations

 Public sector entities are owned and controlled by central or local government.
 The government has direct responsibility to manage their affairs through laws,
regulations, guidelines and exercise control over them.
 They are largely funded through appropriation provided by government and owe
accountability to people as they are funded through public money.
  They serve the common good. They cover all areas and activities of public service
delivery and have no profit motive.
 It is difficult to measure their performance.
 The accounting framework is different from the framework applied in the private sector.

Categories of public sector entities

The public sector consists of governments and all publicly controlled or publicly funded
agencies, enterprises and other entities that deliver public programs, goods or services.

Categories:

1. Central government ( Ministries, departments, agencies)

2. Local governments ( Rural , urban, local governments and statutory bodies)
3. Related governmental entities (eg. boards, commissions and enterprises).

Category 1: Central Government

Generally referred to as MDAs (Ministries, Departments & Agencies), Central government

consists of a governing body with a defined territorial authority. Central government is the
political authority that governs the entire country. It performs leadership roles, maintains order,
provides public services, national security etc.

It includes – ministries, departments/ branches of the government that are an integral part of the
structure and are accountable to and report directly to the central authority, the legislature,
council, cabinet or executive head.

MDAs Examples:

i) Ministries- Health, education, defense, public service, local government etc

ii) Agencies – eg. Judiciary, electoral commission, Uganda police, prisons, URA.

iii) Referral Hospitals – Mulago, Butabika

Category 2: Local Governments

It consists of all types of public administration whose responsibility covers only a local part of
the country.
These are smaller territorial boundaries comprising of rural urban councils and statutory bodies.
They include:

- Rural district councils and sub counties (eg. Arua, Masaka, Gulu, Jinja, Iganga)
- Urban /municipal councils (eg. Arua, mbarara, Entebbe, masaka, fortportal)
- Statutory bodies (eg. District contracts committees, District service commission, and
district land board).

Category 3: Related Governmental Entities

These are government organizations entrusted with delivering of goods, services and other
government programs. In the case of Uganda, these are referred to as parastatals or state
enterprises. They exist as separate organizations in their own right and operate with a partial
degree of operational independence from their parent ministry. They are normally headed by a
board of directors, commission or other appointed body. They normally have their independent
source of revenues in addition to the direct government funding. They may compete in the
private markets and may make profits. In most cases, the government is the major shareholder of
these enterprises and they partly follow the Acts and regulations that govern the core
government. The commissions and Boards are established by the acts of Parliament to carry out
business or to regulate the operations of other entities in public interest. Examples are: Civil -
aviation authority, National Water and Sewerage Corporation, Uganda Communications
Commissions, and Insurance Regulatory Authority.

Roles of public sector in Uganda

The roles of public sector in Uganda include the following;

Ensuring Political stability in the country

The principal role of the military is to defend the country’s borders against external invasion.
Maintenance of political harmony in Uganda by the army has led to economic growth and
stability in the country as political stability brings peace which encourages individuals to invest
in the country.
Maintaining good International relations

The ministry of Foreign Affairs in Uganda is in charge of good international relations with
different countries. To ensure that a country participates in international trade effectively and
reduce chances of international rivalry, it should ensure that there are good international
relations. Other than having good international relations, it is the role of the government to
ensure that its country has a good reputation. It should not be known for negative things like
corruption and inequality. Such reputations are not built by word of mouth by through actions
undertaken by the government.

Protection of citizens

The government has the mandate of ensuring that the constitutional rights of every human being
are respected. These rights include rights to protection, where the government provides security
to its citizens. Security is provided to citizens to protect them from both foreign and internal
attackers. The government through URA at the customs department also ensures that harmful
products are not brought into the country.

Provision of Infrastructures

The government provides infrastructures like roads and communication networks, which cannot
be left in the hands of individuals which ensure that an economy has social resources that can be
used by society members without paying for them directly. In time of disaster, the public sector
is called upon to assist for example in times of drought and floods.

Leadership and strategic decision-making

The government makes strategic decisions, which define the pathway that the country aims to
follow over a certain period. Every financial year, the government of Uganda prepares the
national budget which should be followed by the different districts, ministries, local governments
and so on. These budgets contain yearly or monthly projects that take more than one year. The
government has come up with also the vision 2040 and the National Development Plans which
help in strategic decision making.
Resources distribution

Un equal distribution of resources in Uganda brings about regional differences. So it’s the role of
the government to ensure that resources are well distributed for a harmonious growth in all the
regions of Uganda.

Creation of employment

Government of Uganda has a role in creating employment in the country. Ugandan government
has come up with measures to ensure that the economy produces job opportunities for example
provision of finances to entrepreneurs to enable them startup businesses. For an increased
employment creation in country, the government should create an atmosphere where local and
international investors feel attracted.

Others;

Protection of the environment

Formulation, approval and implementation of new laws and regulations.

It oversees the economic development of the country

The public sector provides the necessary infrastructure in terms of roads, railway, airports and
hospitals which are necessary to support the economic development of the country.

It provides public services like education services, health services, security services, electricity
and so on to the citizens in Uganda.

Collection of government revenues

PUBLIC SECTOR MANAGEMENT
Public sector management is a key function for efficient and effective management of public
service delivery. It entails the establishment of institutions, structures, systems, formulation and
enforcement of policies, laws, regulations, standards and procedures.

Public sector management concerns governance in each country. The state is possibly among the
largest employer in almost all countries. Public service personnel comprise of people employed
by public authorities at the central and local levels and include civil servants and public
employees. Public authorities are expected to provide high quality services and decent work for
their workers.

Public sector management is an important part of public service as its accepted and capable
managers can drive change into the sector. Too often, the public sector has been considered as a
weak partner of any economy because it is associated with dull jobs, bureaucracy, and
bottlenecks.

The Public Sector Management sector functionally incorporates; Office of the Prime Minister
(OPM), Ministry of Public Service (MoPS), Ministry of Local Government (MoLG), Ministry of
East African Community Affairs (MEACA), National Planning Authority (NPA), Kampala
Capital City Authority (KCCA), Public Service Commission (PSC) etc

Purpose of public sector Management

 To ensure that a sound evidence base is available to inform decision making in national
policy frameworks
 To ensure the efficient and effective use of public resources in the implementation of
strategic priorities.
 To ensure that government resources are spent properly and accountability is provided at
the right time.
 To coordinate Monitoring and Evaluation initiatives in Uganda by providing mechanisms
which align the existing monitoring and evaluation initiatives with identified data and
information needs.
 To ensure that national priorities are put into consideration while preparing the national
budgets annually.
  It ensures the formulation and enforcement of policies, laws, regulations, standards and
procedures.
 To attract, recruit, develop and retain a highly skilled and professional workforce and
develop management and operational structures and systems for effective and efficient
service delivery in public service;

 To promote an efficient and effective decentralized service delivery system;

 To ensure implementation of the East Africa Customs Union, establishment of the

EA Common Market, subsequently a monetary Union and ultimately the East African Political
Federation

 To promote peace and disaster preparedness in all parts of Uganda and facilitate recovery of
affected Communities.

 Etc…………..
Challenges in public sector management

Poor motivation due to low and inequitable remuneration

Salaries in the public sector are not competitive with what the private sector offers for similar
qualifications and competence level. This has contributed to the terrible service performance in
the public sector because of weak productivity, weakened commitment, corruption, and
absenteeism while in pursuit for alternative employment.

Besides the salary being low, there are gross differences in the pay levels across traditional
Public Service, Ministries, Departments and Agencies (MDAs). For example staff at U1S in the
Auditor General’s Office, earn a monthly salary 8 times more than their counterparts in the
traditional public service. These differences lead to demotivation in the traditional public service
institutions and affects service delivery.

Poor work culture and attitude

Uganda’s public sector has been marred by incidences of lack of national values, poor attitude
towards work, lack of ethics, absence of client centeredness in service delivery, and lack of
initiative to adapt to modern technologies e.g. ICT facilities. Despite various capacity building
initiatives and the existing laws, public servants have remained self-centered.
Poor performance management practices

Performance management refers to the process of planning work and setting expectations,
continued monitoring of actions, developing capacity to perform periodic rating of achievements,
rewarding attainment of targets and sanctioning them.

While assessing performance, the stated results framework that is the outputs, targets are not
followed and in some instances the review meetings are not regularly held.

On the other hand, adequate funds are not provided for carrying out monitoring activities in the
lower local governments.

There are a few heads of department engaged in performance planning coupled with inadequate
sensitization, training and empowerment of staff to handle performance agreements.

Weak state of records management

Records management refers to the practice of creating and maintaining records by an

organization. Management of records as an integral part of government is associated with
workflow as it leads to effective delivery of public services.A country without proper records
and archives management fosters systematic corruption, uninformed decisions and operational
failure.

Despite the strategies employed to improve records management, their state and the archives
system in line with several reforms in the public sector have remained in a sorry state.

There is insufficient storage space for records especially in LGs, District Service Commissions
(DSCS) and Urban Authorities For example there are no registries and records centers in Town
Councils and District Service Commissions in Manafwa, Nwoya and Rubirizi districts.

Poor work environment

The work environment in an institution influences performance. It entails the organizational

culture, interpersonal relations, tools, equipment, and support systems. These create an
environment for innovation and productivity.

However, many of the new and rural DLGs and lower Local Governments (LLGs) lack office
space, and equipment. For example in Bulambuli district, the Human Resource Office is in an
old leaking building, with wooden filing cabinets and an old desk computer. This is a major
hindrance to service delivery in light of the public service reforms.

Inadequate staffing in local governments

Local Governments remain constrained by low staffing and poor funding and many Local
Governments have failed to attract qualified and competent personnel. This has been intensified
by the recent ban on new recruitments. The departments most affected in District Local
Governments are Human Resource, Production and Natural Resource, Community
development, Engineering and Town Councils.

Staffing levels for strategic positions for districts and municipalities currently stand at less than
56% of the required staff. In 2013, 30% of District Water Officers who also doubled as the
District Engineers had excessive workload an issue that affected effectiveness of the two offices.

In conclusion, Public sector management in Uganda is still faced with many issues. Building a
better public sector in Uganda is difficult but success depends on motivation of staff, adequate
administrative and institutional capacity, transformation of the public service work culture and
attitude. Adopting a culture of innovation and benchmarking best practices can improve the
efficiency and effectiveness of public service delivery.

PUBLIC SERVICE

Public service is a service intended to serve all members of a community. It is usually provided
by government to people living within its jurisdiction either directly (through the public sector)
or by financing private provision of services.

Public services are what make the state visible to its citizens. They make the state tangible
through an almost daily interaction, direct or indirect. Nations are shaped by images and
practices and public services contribute to the creation of these images and practices. Public
services have played a pivotal role in nation-building in Uganda.
Public services tend to be those considered to be so essential to life that for moral reasons their
universal provision should be guaranteed. They may be associated with fundamental human
rights (such as the right to water).

The state is among the largest most important employer in almost all countries. Public service
personnel comprise of people employed by public authorities at central, regional and local levels.
Public authorities are expected to provide high quality services to their citizens and decent work
for their workers.

Examples of public services are the fire brigade, polices, health services, education and so on.
Public services are distinguished for purposes of order and regulation (national defense, justice,
civil protection), those aimed at health and social protection (public hospitals), those for
educational and cultural purposes (education, research, public service broadcasting) and those of
economic nature.

The legal aspect of the public service is organized around three major principles;

a) Continuity of public service

There is an aspect of continuity of the state. it is based on the need to meet the needs of
general interest without interruption.
b) Equality in public service
It means that each person has equal right to access the service and must be treated in the
same way as any other user of the service.
c) Adaptability
It is more focused to providing the best service qualitatively rather than its continuity
over time. This means that public service must not remain static in face of changes in
society therefore, it must follow the needs of users and technical evolutions ie electricity.

Nature of public service today

Public service jobs are all attached to the state. Parastatal organizations could be also part
of public jobs as they follow similar work conditions offered by a public job. While the
public job is entirely nonprofit oriented, the parastatal job could be profit oriented. For
example, postal services in certain countries might not fall in the same category as other
 public activities like education or health. Postal services could be paid for by citizens and
the holding company might be oriented to creating profit. Also certain commodities could
be provided by parastatal organizations. Water and electricity are two such essential
products that could be both state owned and privately owned. The state regulates the
provision of these commodities at reasonable prices for the public.

The state may also encourage activities to be outsources to private organizations with
some control over them. For instance, surgery which cannot be easily afforded or met in
public hospitals could be privately provided under government agreement.

Regulatory framework for public sector entities

 These are various laws that govern the public sector in Uganda. In Uganda, they include
the policy and legal framework, institutional framework, accounting policies and
practices and international public sector accounting standards (IPSAS).

 The Constitution being the principal law on all matters relating to the management and
control of public resources sets the policy and legal framework.

 Subsidiary legislations/acts/laws are derived from the constitution in order to give full
effect to its objectives and intents.

 The regulations are derived from the Acts to further give meaning to the laws and to
operationalise the Acts.

 Instructions and guidelines are then derived to ease the implementation and adherence to
the legal requirements.

a) Specific Laws :

1. The Constitution (1995) (As revised in 2005):

Provides the policy and legal framework in relation to Public finance management. It provides
the following;
 Provision of the requirements for imposing tax, powers on who can waive /vary tax and
establishes tax tribunals for the purposes of settling tax disputes.

 Establishment of the consolidated fund and prescribes its revenues, the contingence fund
and its operations.

 It prescribes the necessary requirements and conditions including the responsible officers
for withdrawals from the consolidated fund.

 It prescribes the officers whose remuneration is charged to the consolidated fund and its
management.

 It provides the framework for the preparation, submission and timing of financial year
estimates and appropriation bills including the responsible officers.

 It establishes a framework for government to borrow or lend and management of public

debt.

 Establishment of the central bank, its functions, and management with independence safe
guards.

 Establishes the office of the auditor general, roles and responsibilities including safe
guard for its independence.

2. Local Government Act (1997)

 This is derived from the constitution. It highlights the political and administration set up
of local governments and establishes the various sources of revenue.

 It requires every local government to keep proper books of accounts and financial
records, balance the accounts and produce financial statements at the end of the year.

 The act gives local government the right and obligation to formulate, approve and
execute their budgets and plans provided the budgets are balanced comply with national
priorities. etc

3. Public Finance Management Act (2015)

Is derived from the constitution, It prescribes the management and control of public funds by
government.

It covers the following:

 Preparation, approval and commitment of annual budget.

 Contingencies Fund – establishment and management of the contingencies fund including

funding of responses to natural disasters and supplementary expenditure.

 Public debt –Management of government debt and projects funded by loans and grants
and authority to receive such loans and grants.

 Accounting and audit – appointment, functions and powers of accounting officers,

accountant general and audit committees, internal audit and in-year financial reporting.
ETC

4. National Audit Act (2008)

This is derived from article 154(3) and 163 of the constitution of Uganda. It provides the legal
and institutional framework for external audit activities of the public sector in Uganda.

It provides for:

 The office, appointment, tenure and removal of the AG and staff and mode of operation
of the office.

 Auditing of accounts of central government, local government, councils, administrative

units, public organization, private organizations and bodies.

 Empowers and gives AG right and access to documentation and information relevant to
the performance of his /her function.

 Other matters in the functioning of the office of the AG and execution of roles and
responsibilities of the office, including offences and penalties.

5. Accountants Act, 2013

 The Act provides the legal, institutional and regulatory framework for the accountancy
profession in Uganda It establishes the regulatory framework for practicing accountancy
 in the private and public sector It provides for the Institute of Certified Public
Accountants of Uganda.

 It provides for the Council of the institute, its composition, appointment of the members
and functions.

 It provides for the Public Accountants Examination Board and its membership and
functions.

 It provides for the Secretary, Registrar and staff of the institute.

b) Individual Acts of parliament setting up parastatals / state enterprises and

authorities

 The constitution empowers parliament to make laws through passing bills and after being
assented to by the president they become laws. Parliament is mandated too to establish
parastatals /state enterprises and authorities.

 The individual acts of parliament provide a legal framework for the establishment,
operation, and management of the institutions.

 The legislation normally provides for authority, establishment of institutions, governance

and management, functions, roles, remuneration of staff, powers and financial provisions.

Examples of Institutions:

 Uganda Investment Authority – Under the investment Code Act of 1991.

 Civil Aviation Authority – CAA act of 1991

 National Environment Management Authority – Act of 1995

 National Information Technology Authority – 2009

 URA – 1991 ETC

c) Duties of Minister of finance, secretary to treasury, accountant general and accounting

officers.

i) Duties of Minister of finance

The Public finance management act details out the responsibilities of Minister of finance among
which includes the following:

 Presenting to parliament, tax and revenue bills that give the government power to obtain
money from taxes, fees, charges and other impositions to achieve the objectives of the
budget

 Prepare the budget framework consistent with the national Development plan.

 Submit the budget framework paper with the approval of Cabinet to Parliament by 31 st
December of the year preceding the FY to which the budget relates.

 Presenting of the proposed annual national budget to parliament on behalf of the

president by 1st April of the preceding financial year.

 Report to parliament explaining reasons for the non utilization of funds

 Raising money by loan on behalf of government.

 Make regulations for the better carrying out of the PFM act. ETC…

ii) Secretary to treasury.

The appointment and functions of the secretary to the treasury are provided for by the Public
finance management act 2015. The functions include the following:

 Advise the minister on economic, budgetary and financial matters.

 Coordinate the preparation of the annual budget process and the budget estimates

 Promote & enforce the transparency in the management of revenues and expenditure,
assets and liabilities.

 Setting standards for the financial management systems and monitoring their
performance.

 Ensure relevant internal audit function for each vote or public corporation.

 Appoint accounting officers in accordance with the Act.

iii) Accountant general.

The PFM act (2015) gives the following responsibilities to the accountant General:

 Custody and safety of public money

 Custody of all government certificates of titles for investments

 Giving general instructions, guidelines and procedures to Accounting officers which are
consistent with the act and regulations.

 Specify the basis of accounting to be adopted and the classification systems to be used by
Public sector entities.

 Ensuring that an appropriate system of accounting is established to bring to account all

money received.

 Ensuring that the system of internal control is appropriate to the needs of the vote and
conforms to the international standards.

 Report to the secretary to the treasury any apparent defect in the management of
revenues, expenditure, cash /asset management and any breach of non observance of the
law that comes to his notice.

 Ensure adequate provisions for the safe custody public funds,securities,valuable

documents and information. Etc…

iv) Accounting officers.

The PFM act 2015 mandates the Secretary to the treasury to appoint accounting officers to carry
out the following duties:

 Control the regularity (regulations) and proper use of the money appropriated to the vote.

 Be responsible for authorizing any commitment made by the vote.

 Control the resources received/held /disposed off on account of the vote.

 Put in place effective systems of risk management, internal controls and internal audit in
respect of all resources and transactions of the vote.

 Be responsible and accountable to parliament for the activities of a vote.

Examples of accounting officers may include permanent secretary under ministries, chief
administrative officer for district local governments etc

The Local-Government Institutional Framework

i) Local Government Council

The Local Governments Act establishes local councils comprising local government councils
and administrative unit councils. These include district, municipality, town, division and sub-
county councils. The Act establishes the Council as the highest political authority within the area
of jurisdiction of a local government with legislative and executive powers exercised in
accordance with the Constitution and the Act.

The Act provides for the composition of the local government council comprising of a
chairperson and members, depending on the local government i.e. district, municipality, town,
division and sub-county. It establishes the requirements for a person to become a member of a
local government council and how the members of the councils are elected and removed from
office.

The Act provides the functions, powers and services of a Council as:

 exercising all political and executive powers and functions;

 providing services it deems fit within its mandate;

 protecting the Constitution and other laws of Uganda and promoting

democratic governance; -

 ensuring implementation and compliance with government policy;

 monitoring performance of persons employed by the government or a

higher local government to provide services and monitor the provision of
government services or the implementation of projects in the area; and

 exercising autonomy over planning and financial management when

carrying out the functions and services specified under the Act.
The Act allows local government councils to devolve some of the functions and services were
both parties are in agreement; necessary resources are made available for the exercise of those
functions and powers, services and responsibilities and appropriate measures are taken to bring
the change to the attention of the public.

ii) Local Governments Public Accounts Committee

The Local Governments Act establishes a Local Government Public Accounts Committee for
each district, provides for the composition of the committee comprising of a chairperson and
members depending on the local government, appointment and removal of members from office,
election of a chairperson, their term of office, conduct and quorum for meetings. It mandates the
office of the clerk to the district council to be the secretariat to the committee and requires the
expenses to be met by the district council.

The functions of the committee are:

• examine the reports of the Auditor General, Chief Internal Auditor and
any reports of commissions of inquiry and require the attendance of any
councilor or officer to explain matters arising from the reports; and

• submit its report to the council and to the minister responsible for local
governments to lay the report before Parliament.

iii) District Local Council Chairman/Mayor

The Local Government Act establishes a district chairperson who carries the title of mayor in the
case of a city as the political head of the district or city:

The functions of the chairperson are:

 preside at meetings of the executive committee of the district;

 monitor the general administration of the district;

 monitor the implementation of council decisions;

 monitor and coordinate the activities of the municipal and town councils and of other
lower local governments and administrative units in the district;
  oversee the performance of persons employed by the Government to - provide services in
the district and to monitor the provision of Government services or the implementation of
projects in the district on behalf of the council

 coordinate and monitor government functions as between the district and the
Government;

v) Chief Administrative Officer/Town Clerk

The Local Government Act establishes a Chief Administrative Officer/Town Clerk for every
district council/urban council as the head of the public service, the head of the administration and
Accounting Officer of the district council or urban council. The titles also apply to Assistant
Administrative Officer, Assistant Town Clerk or Sub-County Chief, appointed Accounting
Officer by the Chief Administrative Officer of a district or the Town Clerk of a city or municipal
council. The Act provides for the qualifications, appointment, functions and vacation of office.

The functions include:

 responsibility for the implementation of all lawful decisions taken by the district council

 giving guidance to the local government councils and their departments in the application
of the relevant laws and policies;

 supervising, monitoring and coordinating the activities of the district

 developing capacity for development and management of the planning function in the
district;

 having custody of all documents and records of the local government council;

 acting as a liaison officer between the district council and the Government;

 advising the chairperson on the administration of the council; and

 assisting in the maintenance of law, order and security in the district.

v) Chief Finance Officer

The Local Governments (Financial and Accounting) Regulations establishes the Chief Finance
Officer to be in chargé of accounting and financial management of a district, city or municipal
council.

The duties include:

 managing the financial affairs of council prudently, efficiently and effectively

 ensuring compliance with regulations, accounting manual and all instructions issued;

 coordinating the preparation of the annual accounts of the council for audit and prepare
financial statements and returns as required;

 supervising and coordinating the budget desk officers in preparation of work plans for
submission;

 ensuring that the approved estimates of expenditure on votes under his or her control are
not exceeded;

 supervising and ensuring the prompt collection of all revenue due to council and bring
promptly to account;