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

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ANNUAL INTEGRATED REPORT 20 19 Ii 2019 ANNUAL REPORT Table of Content INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF UGANDA 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, Bukoto 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 : Uganda Revenue Authority 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, Kololo, P. O. Box 12464, Kampala, 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) Housing Finance Bank (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 Bank of Uganda 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 Ligomarc Advocates, CPA David Ssenoga, Plot 4 Jinja Road, C/o SDS & Company, 5th Floor, Social Security House, Moil House, Wandegeya, 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 concern for at least the next twelve months from the date of this statement. ........................................ .................................................... CPA Frederick Kibbedi CPA Constant Othieno Mayende President Council Member / Chairperson Finance, Planning & Administration Committee Date: Date: 5 4.0 President’s Message On behalf of Council, it is my pleasure 4.2 Strategy and honour to present to you the Annual The year 2019 was the first year of Integrated Report of the Institute of Certified implementation of a five year strategic plan Public Accountants of Uganda, for the year (2019 - 2023). The strategic plan is premised 2019. on a framework that is promoted by the International Federation of Accountants 4.1 Introduction (IFAC), for capacity building of Professional During the financial year 2018/2019 the Accountancy Organisations (PAOs). The GDP of Uganda and other countries in the framework emphasizes three building blocks: region grew at a rate of 6% to 8% making sustainability of the PAO, the enforcement the region one of the fastest growing in Sub- of the adoption of International Financial Saharan Africa. Uganda’s GDP growth for Reporting Standards, and relevance of the the year 2018/19 was at 6.5%. These rates PAO among its membership and the wider were registered before the impact of the society. The following strategic goals were coronavirus disease (COVID-19) pandemic. adopted: We are yet to know what the GDP impact will (i) Protect the value and reputation of the be, but our growth trajectory will certainly CPA Uganda Brand. be affected. According to Bank of Uganda, (ii) Impact national economic policy. the economy is projected to slow down (iii) Enhance quality of service to members drastically in the second half of Financial (iv) Enhance quality of service to students. Year (FY) 2019/20, with GDP growth for (v) Enhance relationships with sother the FY projected at 3-4% growth. The key stakeholders. question is, how we partner with our clients (vi) Strengthen the ICPAU Secretariat. who are playing in these sectors to help them (vii) Ensure financial sustainability of the weather this COVID-19 storm and sustain Institute. their businesses. 6 2019 ANNUAL REPORT The focus for the
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