Flow of NAADS funds

The Uganda Government releases funds for NAADS programme from the Government Consolidated Fund directly to the respective participating districts and the NAADS Secretariat. The funds to the districts are released on monthly basis as District Conditional Grants in accordance with Poverty Alleviation Fund (PAF) guidelines. Accordingly, resources allocated to NAADS under basket funding are channeled through PAF as well.

The Farmer Fora approved plans aggregated through Local governments and NAADS Board, trigger the allocation of funds. Subsequent releases are dependant on appropriate quarterly accountabilities by the districts and sub-counties. Procurement of services at Sub-county is through Procurement Committees, established under the NAADS Act, with majority of members being farmers.

Flow of Funds at National Level

The flow of funds at National level is outlined in the diagrammatic presentation as follows:

Flow of Funds at District and Sub-County Level

The donor support and Government of Uganda contributions are released as Government of Uganda funds to the districts, through the District Grants Collection Accounts. However, the release of funds is triggered by the plans of the Farmers to Ministry of Finance Planning and Economic Development (MFPED) through their respective Farmer Fora and NAADS Secretariat.

Diagrammatic representation of flow of funds is as follows:

Financial Management at District and Sub-County

District and Sub-County administration manage NAADS district and Sub-County accounts in accordance with the Local Government Financial Accounting Regulations. Procurement of services at Sub-county level is through the Procurement Committees with representation of farmers as established by NAADS Act.

Financial and Progress Implementation Reporting

NAADS implementing agencies prepare quarterly financial and physical progress reports to justify funding for the next quarter. District reports integrate summary information submitted by Sub-counties. The district and Secretariat reports are in turn integrated by the Secretariat, for submission to Ministry of Finance, Planning and Economic Development, to trigger further release of funds to the implementing agencies. The same information is represented in an agreed format of Programme Management Report (PMR) for submission to Co-operating Partners to trigger further resources from the Partners.

Further allocation of funds will be subject to annual performance evaluation against work-plans and accountability.