Annual Report 2018 Annual Our Business Review nssfug.org Report 2018 Table Of Contents Audited Financial Statements 145 Report Of The Directors For The Year Ended 30th June 2018 146 Statement Of Directors’ Responsibility For The Year Ended 30th June 2018 Sustainability 147 Report of The Auditor General On The Financial Statements of The National Report Social Security Fund for the Year Our Report 2017/18 Corporate Ended 30th June 2018 101 DMD’s Statement on Financial 150 Statement of Changes in Net Assets We are privileged to present our annual report for the year ended 30th June 2018, Governance Sustainability Our Business Available for Benefits as at 30th June as required by the National Social Security Fund Act (Cap 222) of Uganda. The & Business 105 Our Achievements & Risk 2018 objective is to provide our readers with the most relevant information regarding 109 Responsible Business our organization’s strategy and highlight the key objectives achieved during the 03 NSSF At A Glance Review 151 Statement of Net Assets Available for Management 125 Corporate Social financial year 2017/18. 05 Our Business Model Benefits as at 30th June 2018 09 Financial and Operational 41 CFO’s Financial Review Responsibility 152 Statement of Changes in Members’ Where applicable the contents of this report have been reviewed for consistency 47 CIO’s Business Review 67 Risk Management Report 137 Our Environmental Footprint Highlights Funds and Reserves as at 30th June against the audited financial statements of the Fund. ii 79 Governance Review 139 Global Reporting Initiative 11 Chairman’s Statement 2018 81 Our Leadership 15 Board Of Directors 153 Statement of Cash Flows For the Year 85 How The Board Operates 19 Managing Director’s Ended 30th June 2018 In the Business segment, we present Our Theme; Breaking Barriers Statement 93 Remuneration Report the flow of our operations and highlight 154 Notes to the Financial Statements For The reality is that every business, even 97 Role of Internal Audit how we create value. We also show the 25 Executive Committee 02 The Year Ended 30th June 2018 those with the potential to be bigger 04 teams that lead our business towards 31 Our Strategy and more successful, will hit growth sustainable growth. barriers. With increasing customer i Appendices demands and ever increasing iii Appendix I: List Of Acronyms In the Strategy segment, we present competition, unless you set your 215 Appendix II: Company Information our performance against our targets 03 business apart, it will slowly and in detail. We employ performance 216 Appendix III: Financial Definitions indicators to ease the understanding of surely die. 01 our objectives. By 2011, NSSF had grown to a Fund In the Financial review segment, we size of Ushs 1.7 Trillion. NSSF was showcase the financial performance of incorporated in 1985. So it took NSSF the different business units of the Fund 25 years to grow to Ushs 1.7 Trillion, 05 and of the business as a whole. which is an average of Ushs 68 Billion per year! NSSF had stagnated. In the Corporate Governance and Risk Management segment, we Fast forward to June 2018, and highlight our Fund’s structures and NSSF’s size is Ushs 9.98 Trillion. It controls which enable us to ensure that took NSSF only 7 years to reach this our leadership runs the Fund in line target, with a growth average of about with industry best practice. Ushs 1.2 Trillion per year! In other words, NSSF’s annual growth now is Under the Sustainability segment, almost what the 25 year growth was. we explore the material sustainability This report highlights how the Fund issues facing the Fund and the strategic has been able to consistently break initiatives we have adopted to address through its own growth barriers. them. See Pages 29, 37, 45, 77, 107, 113 & 123 Annual Our Business Review nssfug.org Report 2018 Appendix I: List Of Acronyms ACCA Association of Chartered EIA Environmental Impact Rwf. Rwandan Franc Certified Accountants Assessment MBA Masters Degree in Business USSD Unstructured Supplementary Administration Rd. Road Service Data AMM Annual Members’ Meeting ERM Enterprise Risk Management MD Managing Director RMPP Risk Management Policy and URSB Uganda Registration Services BA. Bachelor of Arts ExCo Executive Committee Procedures Bureau BAT British American Tobacco FCCA Fellow of the Chartered MoFPED Ministry of Finance, Planning RSE Rwanda Stock Exchange USE Uganda Securities Exchange Certified Accountants and Economic Development Bn. Billion SAA Strategic Asset Allocation Ushs Uganda Shilling Fig. Figure MSc. Masters Degree in Science BRITAM British-American SBU Stanbic Bank Uganda VPDL Victoria Properties Investments Company FiRe Financial Reporting MSCI Morgan Stanley Capital Development Limited iv International SMS Short Message Service BSc. Bachelor of Sciences Fx Foreign Exchange WHT Withholding Tax NEMA National Environmental STP Straight through process CBD Central Business District FUE Federation of Ugandan Management Authority Y/Y. Year on Year Employers TBL Tanzania Breweries Limited CBK Central Bank of Kenya NASI Nairobi All Share Index YTM. Yield To Maturity IAS International Accounting TWIGA Tanzania Portland Cement CBR Central Bank of Rwanda Standards NIC National Insurance Company Limited Corporation iii CCW Customer Connect Week IASB International Accounting Tshs Tanzanian Shilling Standards Board NIRA National Identification and CFA Chartered Financial Analyst Registration Authority UCL Uganda Clays Limited ICPAU Institute of Certified Public CFO Chief Financial Officer Accountants of Uganda NITA-U National Information UK United Kingdom Technology Authority of Uganda COFTU Central Organization Of Free ISSA International Social Security URBRA Uganda Retirement Benefits Trade Unions Association Regulatory Authority NOTU National Organization of CMP Crisis Management Plan IFRS International Financial Trade Unions Reporting Standards CSR Corporate Social NPS Net Promoter Score Responsibility IMF International Monetary Fund NSE Nairobi Stock Exchange DRP Disaster Recovery Plan IT Information Technology NSSF National Social Security Fund DSE Dar es Salaam Stock K Thousand Exchange PPDA Public Procurement and KCCA Kampala City Council Disposal of Public Assets DFCU Development Finance Authority Authority Company of Uganda Bank Ltd KPI Key Performance Indicator PDL Premier Developments EABL East African Breweries Limited Limited Kshs Kenyan Shilling PRAU Public Relations Association ECASSA East & Central African Social LED Light-emitting Diode of Uganda Security Association M Million RAF Risk Appetite Framework Annual Our Business Review nssfug.org Report 2018 2 Our 1 Business 03 NSSF At A Glance 05 Our Business Model 09 Financial and Operational Highlights 11 Chairman’s Statement 15 Board Of Directors 19 Managing Director’s Statement 25 Executive Committee 31 Our Strategy Annual Our Business Review nssfug.org Report 2018 Northern Region Western Region Lira Masindi Plot No.43, Plot No. 17/19, Port Road Bazaar Road, Opposite Masindi Court P. O. Box 406, Lira P.O.Box 199, Masindi Hoima Gulu Plot No. 33, Lusaka, Plot No. 23, Hoima-Kampala Road, Andrea Olal Road The Fund Next to Messiah Clinic. Opposite Total P.O.Box 730, Gulu Fort Portal Artistic impression of Mbarara City House Plot No. 1, Malibo Road. Arua at a Glance Mbarara Plot No. 59, Plot No. 2/4, Johnson Street, Weatherhead Parklane Adit Mall, Opposite Bank of P.O.Box 418, Arua Who we Are Our Focus on Customers Our Regions Of Operation Uganda The National Social Security Fund (NSSF) is a national saving scheme Ishaka 4 mandated by government to provide social security services to all private Plot No. 112, Block 14, sector employees in Uganda. Registered Employers Registered Members Member Satisfaction Branch Central Region Bushenyi-Ishaka Municipality Our Vision Kampala Kabale To be the Social Security Provider of Choice. 32.8 K 85% Outreach Centre Corporate Branch Plot No.91-95, Mbarara Road, 14th Floor, Workers House P. O. Box 203, Kabale Our Mission M 1.8 Plot No.1 Pilkington Road Regional Centre To be a relevant partner to our members through continuous innovation in the P.O.Box 7140, Kampala 3 provision of Social Security. Fueled by Our Commitment to Growth Bugolobi Branch Eastern Region Our Core Values Plot 20-24, Spring Road, Bugolobi, next to Roma Mbale Innovation Integrity Furnishings. Plot No.1, Compliance Dedicated Staff Oval Plaza, Court Road, We are a robust organization that We commit to be ethical and honest Acacia Branch near Housing Finance Bank is always looking for new ways of to inspire trust by matching our Acacia Mall, Ground Floor, P. O. Box 1574, Mbale delivering value to our members. words to our actions. % John Babiha Avenue 81 505 Soroti Customer Centric Teamwork Bakuli Branch Plot No.58A, Main Street,Gweri Road, We are committed to achieving We are committed to developing and Drives Our Operational Excellence Plot No.719, Sir Apollo Kagwa higher levels of customer satisfaction maintaining healthy internal relations Road, K Hotel Building P. O. Box 878, Soroti through continuous improvement in that harness respect, positive Entebbe Jinja our services. attitude and open mindedness in Plot No. 2, Main Street Total Revenue Total Asset Value Imperial Mall, order to meet the demands of our Post Office Building Ushs Ushs Plot M79, Lugard Avenue, Efficiency customers. P.O.Box 877, Jinja Kampala-Entebbe Road. We promise to continuously collaborate with stakeholders to Tororo Tn Mukono Plot No.8A, Uhuru Drive, discover and apply safer, better,