OUR GOVERNANCE

Corporate governance aligned to King IV principles

PRINCIPLE 8: COMmittees of the board

King IV principles and our activities
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
  • Patrick Ayota (since 02 December 2022)
  • Richard Byarugaba (until 01 December 2022)
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 which 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 provisions 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
  • Oversee implementation of strategies and projects.

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

The Finance Committee’s key activities in FY2022/2023 included review, monitoring, and recommendation of:
  • The proposed interest for FY2021/2022
  • The financial performance for the FY2022/23 NSSF Budget and proposed Budget for the FY2023/2024
  • The strategic targets for the Fund and alignment of performance measurements
  • The assurance of the integrity of the financial statements and other information to ensure that they represent a clear and accurate assessment of the Fund's position and performance
  • The Fund’s procurement contracts
  • Quarterly departmental updates
  • The Commercial Department’s policy update in line with amendment of the NSSF Act Cap 222 (amended)
Challenges and key learnings for FY2022/2023:
  • Multiplicity of investigations into the affairs of the Fund’s caused several disruptions
  • Significant unrealised foreign exchange (FX) losses during the year
Learnings
  • Following the investigations, the Committee learnt that extra care should be taken when exercising their oversight function
  • The Committee also reassured Management of the Board’s full support as long as they act prudently, in good faith, and with due care in executing their mandate
  • The Committee has embarked on conducting a prompt post investment risk analysis
Key focus for the following year FY2023/2024
  • New opportunities to increase coverage of the Fund due to the amendment of the NSSF Act
  • New regulations and policy amendments to enable implementation of the amended law
  • Improving of productivity and efficiency through technology enhancement
  • Budget monitoring and compliance
  • Overseeing management of collaborative partnerships to ensure value for the members
Capital Impacted
Stakeholders Impacted

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

The SACA Committee