Kitgum district is stuck with more than 3.6 billion shillings a few weeks to the end of the 2013/2014 financial year.
Luka Nyeko, the Kitgum LC V chairperson who also doubled as the district finance secretary says 2.2 billion shillings is in DFCU bank while another 1.06 billion is in Stanbic Bank.
Nyeko says the money is pending awaiting the return of accountants who are still sitting exams in different universities.
He says some of them have not yet written certificates of completion of the works they have been supervising or entered any detail onto the Integrated Monetary and Financial System for payments to be effected.
Luka says the district will use the next three weeks to spend the money to prevent it from being returned to the national treasury.
Walter Livingstone Tooroma, the representative Kitgum Town Council doubts the district will beat the June 30th deadline. He says in 2012/2013 financial year, Kitgum district returned more than 2 billion shillings to the national treasury because of similar delays.
But Luka is optimistic the funds will be spent well ahead of the dead line.
Maxwell Akora, the Vice Chairperson of the Parliamentary Public Accounts Committee on local government says despite funding shortfalls, many local governments still struggle to absorb the little budgetary allocation before the end of the financial year.
He says returning money to the national treasury affects the budget for the next financial year.