INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF

ANNUAL INTEGRATED REPORT 20 19 ii 2019 ANNUAL REPORT Table of Content

1.0 Background Information 1 2.0 Management Information 2 3.0 Statement of Council Responsibilities 5 4.0 Message from the President 6 Report of the Council 11 5.0 Business Model 12 6.0 Risk Management and Strategy 13 7.0 Operations Review 20 8.0 Sustainability Report 30 9.0 Governance report 38 10.0 Financial Performance Overview 47 11.0 Independent Auditor’s Report 50 12.0 Statement of Financial Position 52 13.0 Statement of Financial Performance 53 14.0 Statement of Changes in Members’ Funds 54 15.0 Statement of Cash flows 55 16.0 Notes to the Financial Statements 56

Plot 42, Street

Artistic Impression of the proposed redevelopment of Plot 42, Bukoto Street

iii Acronyms / Abbreviations

AAT(U) : Association of Accounting Technicians of Uganda

AAU : Associate Accountant of Uganda

ACOA : Africa Congress of Accountants

CGO : Career Guidance Outreach

CPA : Certified Public Accountant

CPD : Continuing Professional Development

EACIAs : East African Community Institutes of Accountants

FiRe : Financial Reporting

ICAEW : Institute of Chartered Accountants in England and Wales

ICPAK : Institute of Certified Public Accountants of Kenya

ICPAR : Institute of Certified Public Accountants of Rwanda

ICPAU : Institute of Certified Public Accountants of Uganda

IFAC : International Federation of Accountants

Institute : Institute of Certified Public Accountants of Uganda

NBAA : National Board of Accountants and Auditors of Tanzania

NSSF : National Social Security Fund

OPC : Ordre of Professional Accountants of Burundi

PAEB : Public Accountants Examinations Board

PAFA : Pan African Federation of Accountants

PAO : Professional Accountancy Organisation

PAYE : Pay As You Earn

RBS : Retirement Benefits Scheme

URA :

UShs : Uganda Shillings

iv 2019 ANNUAL REPORT 1.0 Background Information

1.1 About the Institute The Institute of Certified Public Accountants of Uganda (ICPAU) is the national Professional Accountancy Organisation (PAO), established by the Accountants Act in 1992, amended in 2013. The functions of the Institute, as prescribed by the Accountants Act, 2013 are: (i) To regulate and maintain the standard of accountancy in Uganda; (ii) To prescribe and regulate the conduct of accountants and practising accountants in Uganda.

1.2 Vision 1.3 Mission To be a World-Class Professional To develop, promote and regulate the Accountancy Institute accountancy profession in Uganda and beyond, in public interest

1.4 Core Values

Professional Accountability excellence

Integrity Innovation

1.5 Affiliations 1.6 Mutual Recognition ICPAU is a member of; Agreement under the (a) The International Federation of Accountants (IFAC). EAC-CMP The Institute has a mutual recognition (b) The Pan African Federation of Accountants (PAFA). agreement (MRA) with the East African (c) The Association for Educational Assessment in Africa (AEAA). Community Institutes of Accountants (EACIAs) in line with the EAC Common (d) Private Sector Foundation Uganda (PSFU). Market Protocol. The EACIA MRA (e) The Institute of Corporate Governance of Uganda (ICGU). members are ICPAU, OPC, ICPAK, ICPAR and NBAA. (f) The Federation of Uganda Employers (FUE).

1 2.0 Management Information

2.1 Registered Office and Principal Place of Business 42 Bukoto Street, , P. O. Box 12464, , Uganda. Tel: 0414 - 540125, 0393 - 262333 / 265590 Email: [email protected], Website: www.icpau.co.ug

2.2 Council The following members of Council served from 1 January 2019 to 31 December 2019;

Name Designation

1 CPA Frederick Kibbedi : President

2 CPA Ruth Doreen Mutebe Nseko : Vice President

3 CPA Harriet Kiwanuka : Member

4 CPA Edna Isimbwa Rugumayo : Member

5 CPA Geoffrey Byamugisha : Member

6 CPA Constant Othieno Mayende : Member

7 CPA Stephen Ineget : Member

8 Eng. Jackson Mubangizi : Ministerial Appointee

9 CPA Godfrey Ssemugooma : Accountant General’s Representative

10 CPA Keto Kayemba : Auditor General’s Representative

11 Mr. Patrick Byakatonda : Ministry of Education Representative

2.3 Senior Management

The senior management team at the Institute as at 31 December 2019 comprised of: Name Title 1 CPA Derick Nkajja : Secretary/Chief Executive Officer 2 CPA Simon P. O. Oola : Director, Corporate Services 3 Mr. John Bosco Ntangaare : Director, Education 4 CPA Mark Anthony Omona : Director, Standards & Regulation

2 2019 ANNUAL REPORT COUNCIL MEMBERS FROM 1 JANUARY 2019 TO 31 DECEMBER 2019

CPA Frederick Kibbedi CPA Ruth Doreen Mutebe Nseko President Vice President

CPA Harriet Kiwanuka CPA Edna Isimbwa Rugumayo CPA Geoffrey Byamugisha Member Member Member

CPA Constant Othieno Mayende CPA Stephen Ineget Eng. Jackson Mubangizi Member Member Ministerial Appointee

CPA Godfrey Ssemugooma CPA Keto Kayemba Mr. Patrick Byakatonda, CPA Derick Nkajja Accountant General’s Auditor General’s Representative Ministry of Eduction & Sports Secretary to Council Representative Representative

3 THE SENIOR MANAGEMENT PERSONNEL AT THE INSTITUTE AS AT 31 DECEMBER 2019

CPA Derick Nkajja Secretary/Chief Executive Officer

CPA Mark Anthony Omona Mr. John Bosco Ntangaare CPA Simon P. O. Oola Director, Standards & Regulation Director, Education Director, Corporate Services

2.4 Bankers

(a) Stanbic Bank Uganda Limited, (b) (U) Limited, Forest Mall Branch, Kololo Branch, Sports Lane, Lugogo, Lower Kololo Terrace, P.O. Box 7131, Kampala. P.O. Box 1539, Kampala.

(c) Absa Limited, (d) Centenary Rural Development Bank Limited, Hannington Road, Lugogo Service Centre P.O. Box 7101, Kampala Sports Lane, Forest Mall, P.O. Box 1892, Kampala

(e) United Bank for Africa (Uganda), Jinja Road, P.O Box 7396, Kampala

2.5 Lawyers 2.6 Auditor , CPA David Ssenoga, Plot 4 Jinja Road, C/o SDS & Company, 5th Floor, Social Security House, Moil House, , P.O. Box 8230, Kampala. P.O. Box 306, Kampala

4 2019 ANNUAL REPORT 3.0 Statement of Council’s Responsibilities for the year ended 31 December 2019

The Accountants Act, 2013 requires the Council to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Institute as at the end of the financial year and of its operating results for that year. It also requires Council to ensure that the Institute keeps proper accounting records, which disclose with reasonable accuracy, the financial position of the Institute. The Council is also responsible for safeguarding the assets of the Institute.

The Council accepts responsibility for the year’s financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgment and estimates, in conformity with International Financial Reporting Standards. The Council is of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Institute and of its operating results. The Council further accepts responsibility for the maintenance of the accounting records, which were relied upon in the preparation of financial statements, as well as adequate systems of internal financial control.

Nothing has come to the attention of the Council to indicate that the Institute will not remain a going conc