29TH ANNUAL GENERAL MEETING
PRESIDENT REPORT OF THE TERM OF 2021-2023 COUNCIL
1. BACKGROUND
The term of office of the 2021-2023 Council began in July 2021 after a High Court ruling determined that the Elections Committee had successfully concluded the 2020 elections during the 26th Annual General Meeting of the Institute, in accordance with the provisions of the Accountants Act, 2013, and therefore, the new Council was lawfully in place to transact the business of Institute of Certified Public Accountants of Uganda (ICPAU).
I was then elected ICPAU President and CPA Josephine Ossiya as the Vice President respectively, at the 226th Council meeting on 26 July 2021.
Updates on Governance
i. Ministerial Appointee
The term of office of Eng. Jackson Kabikire Mubangizi ended in December 2022. Eng. Mubangizi had served for 4 years, since 2018.
Eng. Steven Serunjogi was appointed to replace Eng. Jackson Kabikire Mubangizi on 4 April 2023.
ii. Accountant General’s Representative
CPA Stephen Ojiambo was appointed to replace CPA Ssemugooma, on 3 August 2020.
iii. Auditor General’s Representative
CPA Edward Akol was appointed to replace CPA Kayemba on 19 August 2020.
iv. Ministry of Education – Higher Education Representative
Ms Elizabeth Kateme was appointed effective February 2023 to replace Ms Sarah Namuli Tamale whose term had ended in 2022 due to retirement.
The tenure of the 2021-2023 Council commenced in the third year of implementation of the Institute’s five-year strategic plan (2019 – 2023). Therefore, we set out to progress the realisation of the 7 strategic goals, namely:
i. Protect the Value and Reputation of the CPA Uganda Brand
ii. Impact National Economic Policy
iii. Enhance Quality of Services to Members
iv. Enhance Quality of Services to Students
v. Enhance Relationships with other Stakeholders
vi. Strengthen the ICPAU Secretariat
vii. Ensure Financial Sustainability of the Institute
The Council delivers on the Institute mandate through the Secretariat. The secretariat is organised into three (3) directorates and five (5) departments. The directorates are Education, Standards and Regulation and Corporate Services.
It is through these directorates and CEO’s office that the strategic plan is driven or achieved.
The Progress achieved during our term is as follows:
2. EDUCATION
The International Federation of Accountants (IFAC) Statement of Membership Obligation 2: International Education Standards for Professional Accountants and Other Pronouncements issued by the International Accounting Education Standards Board (IAESB) provides guidance to Professional Accountancy Organisations on matters of Initial Professional Development (IPD) for students, and Continuing Professional Development (CPD) for members.
Examinations: From 2021 to May 2023, the Institute has held 8 examination diets across seven examination centres: Arua, Fort Portal, Gulu, Kampala, Mbale, Mbarara and Nkozi.
Following the COVID-19 restrictions and the period thereafter students registration for examinations declined to as low as 5,135, but we are happy to note that 2022 showed signs of recovery with examinations registrations reaching 17,294. This was partly due to the creation of a fourth examinations diet in 2022 to assist students to make up for the lost time.
Prior to the pandemic examinations registrations numbers averaged at 18,000 annually. Therefore, we have achieved recovery in this area.
We continued to hold engagement and counselling sessions to assist students with their progression. Majority of the students who sought these services were able to overcome their challenges and pass the examinations.
Between 2021 – 2022, we released 807 finalists for the Certified Public Accountants (CPA) course, 23 finalists for the Certified Tax Advisor (CTA) course and 47 finalists for the Accounting Technicians Diploma (ATD) course.
Practical Experience Training (PET): Between 2021 and June 2023, 330 students / graduates have been enrolled on PET, bringing the cumulative total to 790 as at December 2022.
In 2021, the Council implemented the PET logbook as the mandatory record for practical experience, a requirement for full membership enrolment.
We are grateful to organisations which have created opportunities for our students
• graduates to acquire practical experience, and we also thank the supervisors for their mentorship role.
Continuing Professional Development (CPD): Due to the COVID-19 restrictions on gatherings, between 2020 and 2021, the Institute introduced virtual and hybrid CPDs. This mode of conducting CPDs has continued to date. The virtual and hybrid CPDs have increased accessibility and affordability of CPDs, and also promoted efficiency in execution.
Since the introduction of webinars, CPD participation numbers have increased, from 5,402 participants in 2019, to 10,165 in 2022.
The Institute has also introduced collaborative CPDs in order to enrich members’ CPD experience. This is where CPDs or trainings for other entities are disseminated to our members either as co-hosts or transmitters.
However, non-compliance with CPD requirements remains a challenge. A survey conducted in 2022 to ascertain the level of CPD compliance among members revealed that less than 50% of members were compliant with CPD requirements. Members are encouraged to take the CPD requirement seriously, in line with the Accountants Regulations, 2016.
Events: From 14 – 16 April 2021, ICPAU hosted the third East African Congress of Accountants (EACOA) under the theme, Integration for accelerated economic growth and development.
ICPAU at thirty Years: The Council also oversaw the celebration of the Institute’s thirty year anniversary through colourful events within the various regions of the country. These included band processions and CSR initiatives such as tree planting, among other drives. We continue to offer gratitude to those whose efforts contributed to the realisation of this milestone, especially the Ministry of Finance, Planning and Economic Development, past presidents and secretaries, and the fore members of the Institute.
In the Public Financial Management (PFM) space, the Institute supported the development of a PFM roadmap and accrual IPSAS implementation strategy and also established a Public Sector Accountancy Working Group (PSAWG) comprising the offices of the Accountant General, the Office of the Auditor General, the Internal Auditor General, and the Local Government Finance Commission to boost the government’s efforts in implementing the PFM roadmap and IPSAS rollout.
In April this year, we held the first PFM Conference. The aim of the Conference was to bring together public sector players to share experiences and innovative approaches for PFM in Uganda. The event attracted 636 participants.
The Council has introduced two new events on the calendar; one, the C-Suite Forum
– a platform which seeks to enhance the synergies of CFOs & CEOs and ultimately lead to organizational success and economic prosperity, and two , the Experiential
Learning CPD, to foster evidence based or hands-on learning by observation and interaction from established businesses across the country.
Accountancy Research: Two studies, the Efficacy of the Auditing function in Public Financial Management in Uganda, and Professional Skepticism and Audit Quality in Uganda were completed and the findings disseminated.
To strengthen the Institute’s research function, the Council approved the creation of the position of Research Officer to be filled this year.
ICPAU Syllabuses: The Council oversaw the revision of all syllabuses for the three
(3) courses. The syllabuses were accredited by the National Council for Higher Education, and the first examinations under the new learning framework were conducted from 29 May – 2 June 2023. 6,655 candidates attempted the May 2023 examinations. 98 candidates completed their studies. Of these, 91 were CPA finalists, 1 was for CTA and 6 were ATD. The cumulative number of finalists as at June 2023 stands at 6,803: 4894 for CPA, 78 for CTA and 1831 for ATD.
Uganda Accountancy Qualifications Framework
On 20 January 2023, the National Council for Higher Education (NCHE) approved the Uganda Accountancy Qualifications Framework (UAQF). The UAQF was developed by the Institute in conjunction with the NCHE. It is as a subset of the Uganda Higher Education Qualifications Framework of NCHE.
The purpose of the framework is to standardise the process through which individuals in Uganda can learn, train, and obtain accountancy qualifications. It also provides progression pathways and shows the different levels of accountancy qualifications.
This is a great milestone in the development of Accountancy profession in Uganda. The CPA course can now easily be equated to other academic levels. Overall completion of CPA level four is equivalent to a post graduate diploma under the higher education qualifications framework.
3. STANDARDS AND REGULATION
Licensing and Inspection: To drive public confidence in the financial reporting value chain and promote provision of high-quality accounting services, a new licensing framework was introduced by the Council in 2021. As per the framework, Certificates of Practice are issued in two categories, namely, provision of all accountancy services, and provision of non-assurance services only. Since the introduction of the framework, 9 accountants have applied and have been licensed to provide non-assurance services only.
Quality Assurance: In April 2021, the fifth cycle of the quality assurance programme commenced. Emphasis was placed on the impact of COVID-19, compliance with the Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) requirements, and the new and revised auditor reporting standards. 115 accounting firms have so far been reviewed in the fifth cycle.
Audit quality remains a challenge. Out of the firms reviewed, only 10% are graded as satisfactory. As part of the continuous improvement and remediation process, the firms are required to promptly address any deficiencies identified during the engagement file review. The model audit file training was also introduced to assist firms with improvement in documentation.
The Quality Assurance Board (QAB) has developed and put in place a sanctioning framework for poor quality of accountancy services among practitioners.
Practical Resources and Tools for Small and Medium Practices: We continued to develop guidance tools and resources to support practitioners in the execution of their work. Between 2021–2022, we developed 14 tools and resources, notably; guidelines on professional fees, guidelines on acceptable advertising, and financial reporting guidance for Islamic finance.
Standards Development: We provided comments on 25 exposure drafts from the IAASB, IASB, IPSASB, IFR4NPO, IESBA, and the ISSB. Steps are in the advanced stages for the development of financial reporting standards for Not-for-Profit organisations and ICPAU is the country champion for this standard.
The Institute responded to the ISSB’s exposure drafts on General Requirements for Disclosure of Sustainability-related Financial Information and Climate-related Disclosures. The International Sustainability Standards Board (ISSB) on 26 June 2023 issued its inaugural standards—IFRS S1 and IFRS S2 —ushering in a new era of sustainability-related disclosures in capital markets worldwide. The ISSB confirms that both standards fully incorporate the recommendations of the Task Force on Climate-related Financial Disclosures.
The Institute also continued to support the government and other entities through reviewing policies and regulations.
Thought Leadership: As part of the role of advising the government on national economy matters, the Institute submitted comments on Amendment Bills and other regulations. We submitted comments on the Tax Amendment Bills, among others, as well as two sets of policy recommendations for the national budget. The policy recommendations were derived from the 9th and 10th Economic Forums.
4. ENGAGEMENT
Membership enrolment and studentship registration: Through our stakeholder engagement initiatives, we have increased our stakeholder enrolment. Schools are visited for career guidance sessions, and employers are visited to support students for their studies and the membership journey.
Stakeholder satisfaction surveys: In order to improve the quality of service to members and students, we conduct annual surveys. Our stakeholder satisfaction rating has remained consistent. In 2021, 98% of the members and 96% of the students who were surveyed indicated that they are proud of the Institute, while in 2022, 96% of the members and 89% of the students indicated that they are satisfied with the Institute’s efforts in improving processes.
Members and Employer Engagements: In 2022, we resumed the engagements with members and employers after the hiatus that had been caused by the pandemic.
The members and employers engagements are part of the Institute’s efforts to educate the public on the matters of the profession and also enforce Section 34 (2) of the Accountants Act, 2023 which requires heads of Accounts, Finance and Internal Audit for public interest organisations to be members of ICPAU. The response is positive, and more employers are beginning to appreciate the need for ICPAU membership.
Representation on Global Advisory and Technical Boards: The profession offers global opportunities for volunteer service. Over the past two years, we have forwarded the following members for service on global boards:
CPA Godfrey Byekwaso
• Global Preparers Forum of the International Accounting Standards Board (IASB) and the International Financial Reporting Standards (IFRS) Foundation - 2021
CPA Keto Kayemba:
• Vice President of the Pan African Federation of Accountants (PAFA) – 2021
• President of the Pan African Federation of Accountants (PAFA) – 2023
Members Regional Networks: The Institute put in place regional networks so that as members of the same profession we can belong to our local communities as well as the profession. There are twelve (12) regions and members were invited to select a region they would like to be affiliated to. Currently, there are four active regional networks ie West Nile, Eastern, Western and Acholi Sub region. We encourage each of us to belong to at least one member regional network as one of the ways of recovering our space.
Corporate Social Responsibility (CSR): The Institute recognises the need to give back to the society in which it operates, through the Corporate Social Responsibility programme. Many of the CSR initiatives, however, were affected by the COVID-19 restrictions. Nonetheless, we were able to progress the CPA Scholarship programme, issuing out 20 scholarships, between 2021 and 2022. We have held health camps and blood donation drives, executed through the events.
In 2022, through the regional member networks, we repainted a pedestrian crossing in Arua city. We also held tree planting exercises in three regions, Eastern, Western and West Nile.
In sport, ICPAU continues to support woodball through sponsoring the junior championship held among secondary schools. As at June 2023, the Institute has sponsored 13 junior woodball tournaments.
5. SUPPORT SERVICES
Financial Performance: With the full resumption of the Institute’s operations, the Council was able to restore the financial performance to near pre-pandemic levels.
Our total income as at 31 December 2022 increased to UGX 9.4 billion, from UGX 5.8 billion in 2020 (UGX 9.8 billion in 2019) while total expenditure increased to UGX 6.2 billion in 2022 from UGX 6.2 billion in 2020 (UGX 8.1 billion in 2019).
The Institute recorded a surplus of UGX 1.6 billion in 2022, up from a deficit of UGX 450.3 billion in 2020, (UGX 1.7 in 2019).
ICT: To improve service delivery, we continue to innovate and automate processes.
Between 2021 and 2022, we introduced the following:
• Online CPD return filing
• Annual practice return module
• Online application for practising certificates and licences for new practitioners and new firms
• Online inspection checklist which enables the inspectors to issue reports before leaving a firm’s premise
• Online examinations platform to support the marking process
• Online case management platform to support the management of disciplinary cases
• Computer-based/aided examinations for Integration of Knowledge (CPA 18), starting with the May 2023 examinations diet.
Institute’s Properties: Plans are in the final stages to actualise the development of the Institute’s properties. Redevelopment of Plot 42, Bukoto Street for better more modern office is set to commence soon. Most of the necessary approvals have been granted by the authorities, and we now await the final green light. The Institute also called for partners for the development of the 5 acres of high-value freehold land in Lubowa, through a Build, Operate and Transfer partnership. Council is committed to realising the Lubowa dream but in a way that does not stifle operations of the Institute and the image of the profession.
