OUR REPORT OVERVIEW

INTRODUCTION

Internal Audit’s Role in Integrated Reporting

Internal Audit in the Fund is well-structured and aligned to enterprise value creation. Integrated reporting entails leveraging all the factors contributing to the generation of enterprise value, and Internal Audit's comprehensive perspective on the Fund enables it to link together the different elements. The Fund recognises that integrated reporting, must be built on a strategically crafted system of internal controls including assurance, and accurately reflecting how the Fund’s value creation efforts relate to each other.

Value creation initiatives and reporting, as with the creation and protection of enterprise value overall, require the Board, Management, and Internal Audit to work collectively to align with each other, prioritising the interests of stakeholders.

Internal Audit provides objective assurance independent of Management, to give the Board the confidence of the accuracy and integrity of the integrated report content.

Internal Audit (IA) provides assurance on the components of integrated report, through:


Evaluation of the integrated reporting processes


Evaluation of the adequacy of governance, risk management and controls processes related to financial and non-financial capitals


Provision of assurance on the integrity of data


Reviewing the key risks and opportunities within the Fund

IA has provided assurance on the six capitals as highlighted below:

CAPITALS
KEY AREAS REVIEWED
MANUFACTURED CAPITAL
  • Information Technology (IT) infrastructure including the implementation of the Pension Administration System
  • Real estate portfolio including the process of land acquisition, the development of projects, and management of the Fund’s properties and the land bank
FINANCIAL CAPITAL
  • The Fund’s strategy and business performance objectives
  • The contributions collections, benefits payments, income, and administration costs
  • Investment processes aimed at obtaining competitive returns, to safeguard and deliver value for members
  • The financial reporting processes to give assurance on the accuracy, completeness, and integrity of the financial information and compliance with reporting frameworks
HUMAN CAPITAL
  • The implementation of the organisation restructuring exercise, recruitment processes, rewards and benefits, and the implementation of the corporate training plan
SOCIAL & RELATIONSHIP CAPITAL
  • Evaluation of the Fund’s strategic partnerships, third party providers such as suppliers, Banks, contractors, customers, investee companies
  • The implementation of the Hi-Innovator programme and its related policies, procedures, and partnerships
  • The Corporate Social Responsibility activities and their impact to the wider community
NATURAL CAPITAL
  • The Environmental, Social and Governance (ESG) frameworks and the compliance requirements within the Fund and the potential equity investment partners
FINANCIAL CAPITAL
  • The Fund’s brand, data, policies, procedures, and internal frameworks
  • The data management and cybersecurity processes to provide assurance that key vulnerabilities have been identified and efficient and cost-effective data protection strategies have been built in the IT infrastructure

Reporting Frameworks

Our integrated report is guided by various codes and standards as follows:

  • King IV Report on Corporate Governance for South Africa (King IVTM)
  • UK (United Kingdom) combined Code on Corporate Governance
  • Integrated Reporting Framework (IR Framework) of the IFRS Foundation
  • Global Reporting Initiative (GRI standards)
  • Sustainable Development Goals (SDGs)
  • International Financial Reporting Standards (IFRS)
  • Uganda Retirement Benefits Regulatory Authority Act and the NSSF Act

Our Approach to Value Creation, Preservation, and Erosion

Our financial, human, manufactured, intellectual, social and relationship, and natural capitals facilitate every aspect of our business and our ability to create long-term value.

We have accordingly defined our structure, activities, and performance against our strategy in this report in terms of these six capitals. Value creation, preservation, and erosion are the consequences of how we apply and leverage our capitals as part of our strategy execution and are evident in how these capitals change over time.


We create value and make lives better by passionately dedicating ourselves to make saving a way of life, to enable more people to improve their well-being and take charge of their financial future.


The Board ensures value preservation by safeguarding its stakeholder interests and enhancing long-term value through responsible decision making, considering the wider impact of environmental and social and governance (ESG) factors, to maintain stability and future economic growth.


The Board defends against damage to stakeholder value including value erosion, reduction, and destruction by leveraging our capitals as part of our business model and strategy. Careful consideration is applied to the relationship between the capitals we use or affect, and the potential trade-offs inherent in our strategic choices.

Our value creation process is illustrated in our business model.

Integrated thinking