REPORT NAILS CASH-IN PROJECT! Millions Mischarged as Budget Blunders Rock Makerere-Led Research Initiative
Launched on September 1, 2020, for a five-year period, the research is led by Associate Professor Lars Buur of the Department of Social Sciences at Roskilde University in Denmark, working in partnership with Makerere University in Uganda and the University of Dodoma in Tanzania.
A high-profile international research project studying privately managed cash transfers in Africa has come under the spotlight after the Auditor General uncovered financial management weaknesses involving misallocation of project funds, raising fresh questions about internal controls and budget discipline within the initiative.
The findings are contained in the Auditor General’s report for the financial year ending December 31, 2024, which examined the CASH-IN – Privately Managed Cash Transfers in Africa Project, a multi-country research programme involving Makerere University, Roskilde University in Denmark and the University of Dodoma in Tanzania.
Although the project received an unqualified audit opinion, the Auditor General identified financial irregularities showing that expenditure was not charged to the correct budget lines as approved under the project’s financial plan.
According to the audit, expenditure amounting to USD 6,387.40, equivalent to approximately UGX 23.4 million, was charged to budget lines that did not correspond with the approved budget code allocations.
The Auditor General found that project costs were instead posted to administrative budget lines contrary to their intended purpose under the approved project budget.
The findings suggest weaknesses in financial management and budget implementation, with expenditure being recorded against incorrect budget categories rather than those approved for the specific activities.
Such misallocations distort the accuracy of financial reporting and make it difficult to determine whether project resources are being utilized exactly as approved by funders.
The audit comes at a time when the CASH-IN project is undertaking one of the most ambitious studies on privately managed cash transfers in Africa.
Launched on September 1, 2020, for a five-year period, the research is led by Associate Professor Lars Buur of the Department of Social Sciences at Roskilde University in Denmark, working in partnership with Makerere University in Uganda and the University of Dodoma in Tanzania.
The project was established to investigate whether privately managed cash transfer programmes are less susceptible to political capture by ruling elites than publicly managed programmes, and how such programmes influence poverty reduction, inclusive economic growth and state-society relations.
Researchers are examining how recipients of privately managed cash transfers are selected, who makes those decisions, whether the programmes are politicized, how cost-effective they are compared to publicly managed cash transfers and whether they contribute to long-term sustainable economic development.
The project also seeks to generate policy recommendations for governments and development partners on the use of privately managed cash transfers, particularly in humanitarian and development interventions.
Uganda was selected as one of the principal case study countries because researchers classify it as a competitive clientelist state, allowing comparisons with Tanzania, which is generally regarded as a dominant party-state system.
The study focuses on both humanitarian cash assistance and long-term development programmes, including initiatives implemented through international non-governmental organizations and United Nations agencies.
Beyond its research objectives, the project is also intended to strengthen research capacity at Makerere University and the University of Dodoma through PhD training, academic collaboration and institutional networking between Uganda, Tanzania and Denmark.
However, despite the project’s international significance and its focus on improving accountability in cash transfer programmes, the Auditor General’s findings indicate that weaknesses emerged within its own financial management systems.
The discovery that approximately UGX 23.4 million was charged to incorrect budget lines raises concerns about adherence to approved financial plans and the effectiveness of internal controls governing project expenditure.
Although the audit did not indicate any loss of funds, the misallocation of expenditure to administrative budget lines instead of the approved budget codes represents a departure from the project’s approved financial framework.
The findings are likely to increase pressure on project management to strengthen budget controls, improve financial reporting and ensure that all future expenditure is charged to the correct budget allocations in accordance with donor requirements and approved project budgets.
For a project dedicated to studying transparency, accountability and the effectiveness of cash transfer systems, the Auditor General’s report now highlights the need for equally rigorous financial discipline within its own operations.
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