Corporate Governance Aligned to King IV Principles

Principle 8:
COMMITTEES OF THE BOARD

GOVERNING STRUCTURES AND DELEGATION

  • Principle 8 – The governing body should ensure that its arrangements for delegation within its own structures promote independent judgement and assist with the balance of power and the effective discharge of its duties

Outcomes

  • Effective governance structures

Finance Committee

Chairperson

  • Silver Mugisha

Members

  • Patrick Ocailap
  • Aggrey David Kibenge
  • Lwabayi Mudiba Hassan
  • Richard Byarugaba

Finance Committee

The role of the Finance Committee of the Board is to assist the Board to fulfil its oversight responsibility and mandate in the following key areas:

  • Determination of the annual and supplementary budget involves making and submitting to the Minister, for approval, estimates of the Fund’s income, its capital recurrent, and other expenditures likely to be incurred for the ensuing year
  • Review and approval of the audited financial statements prepared by management
  • Review provision of proper books of accounts and records with respect to the Fund’s financial transactions, assets, and liabilities
  • Recommendation of the interest rate for declaration depending on the Fund’s realised income
  • Effective financial management of the Fund and its assets
  • Review of the Fund’s accounting policies and principles
  • Reviews of allocated departmental policies and strategies

The Departments the Committee has oversight of are Finance, Commercial, Technology and Enterprise Solutions, and Procurement and Disposal

The Finance Committee’s key activities in FY2021/2022 included review, monitoring and approval of:
  • The proposed interest for FY2021/2022
  • The financial performance for the FY2021/2022
  • Review of the NSSF Budget for the FY2022/2023
  • Monitoring of the newly on boarded OctoPAS system
  • The procurement for several real estate projects, IT systems, computer equipment and digitalisation at the Fund


  • The write-off of bad debts
  • The strategic targets for the Fund and alignment of performance measurements
  • The integrity of the financial statements and other information to be provided to the members to ensure that they represent a clear and accurate assessment of the Fund’s position and performance
  • The Fund’s procurement contracts

Challenges during FY2021/2022:

  • The impact of the decline in the economy hampering the growth of collections
  • Non-compliance with payment of NSSF contributions
  • Stabilisation of the new pension administration system; OctoPAS
  • Decline in the turnaround time for benefits payments because of a new system and increase in claims for midterm access

Key focus for the following year FY2022/2023:

  • Finalising and implementing the new business model
  • The roll-out of a new whistle-blower platform
  • Stabilisation of the OctoPAS system
  • Monitoring procurement contracts
  • Declaration of interest for FY2022/2023
  • Emphasis on the usage of e-channels
  • More emphasis on financial literacy programmes for the members, especially now that the economy continues to struggle
  • Managing stakeholder expectations because of multiple reporting and supervision
  • Focusing on designing customer-centric processes for optimised, fast, and seamless customer experiences​
  • Focusing on improving the Data Quality Index
  • Focusing on redefining existing internal processes and verification partner processes to improve the benefits of turnaround time (TAT)

Capitals impacted

FINANCIAL
CAPITAL

INTELLECTUAL
CAPITAL

NATURAL
CAPITAL

MANUFACTURED
CAPITAL

SOCIAL & RELATIONSHIP CAPITAL

Stakeholders impacted

The Finance Committee of the Board complied with its mandate for the year under review. All the scheduled meetings were held.

MEMBERS

SUPPLIERS

COMMUNITIES

the SACA committee

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