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1 Annual Report Annual Report 2012 INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF UGANDA

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Page 1: INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF UGANDAamhaacctaudasso.com/Dir_Resource/ICPAU - Annual Report 2012.pdf · Institute of Certified Public Accountants of Uganda Annual 1

Ins t i tu te o f Cer t i f ied Pub l ic Accountants o f Uganda

1A n n u a l R e p o r t

Annual Report2012

INSTITUTE OF CERTIFIED PUBLICACCOUNTANTS OF UGANDA

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2Annua l Repor t

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A n n u a l R e p o r t i

ACRONYMS / ABBREVIATIONS ii

1. BACKGROUND INFORMATION 1

2. MANAGEMENT INFORMATION 2

3. STATEMENT OF COUNCIL MEMBERS’ RESPONSIBILITIES 3

4. REPORT OF THE PRESIDENT FOR 2012 4-6

5. REPORT OF THE COUNCIL FOR 2012 7-32

6. INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF THE ICPAU 34-35

7. STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2012 36

8. STATEMENT OF COMPREHENSIVE INCOME 37

9. STATEMENT OF CHANGES IN MEMBER’S FUNDS 38

10. STATEMENT OF CASH FLOWS 39

11. NOTES TO THE FINANCIAL STATEMENTS 40-54

Institute of Certified Public Accountants of UgandaAnnual Report 2012

TA

BLE

OF

CO

NTE

NTS

TABLE OF CONTENTS

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Annua l Repor tii

AAT(U) : Association of Accounting Technicians of Uganda

AAU : Associate Accountant of Uganda

CPA : CertifiedPublicAccountant

CPD : ContinuingProfessionalDevelopment

EACIAs: EastAfricanCommunityInstitutesofAccountants

ICPAK : InstituteofCertifiedPublicAccountantsofKenya

ICPAR : InstituteofCertifiedPublicAccountantsofRwanda

ICPAU : InstituteofCertifiedPublicAccountantsofUganda

IDA : InternationalDevelopmentAssociation

IFAC : InternationalFederationofAccountants

FiRe : FinancialReporting

NBAA : NationalBoardofAccountantsandAuditorsofTanzania

NSSF : NationalSocialSecurityFund

OPC : OrdreofProfessionalAccountantsofBurundi

PAEB : PublicAccountantsExaminationsBoard

PAFA : Pan African Federation of Accountants

PAYE : PayAsYouEarn

PPE : Property,PlantandEquipment

PSFU : PrivateSectorFoundationUganda

RBS : RetirementBenefitsScheme

URA : UgandaRevenueAuthority

Ushs : UgandaShillings

VAT : ValueAddedTax

ACRONYMS / ABBREVIATIONS

iiAnnua l Repor t

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1.1 About the Institute

The Institute of Certified Public Accountants of Uganda (ICPAU) is the national body foraccountants in Uganda. It was established by the Accountants Act, Cap. 266. in 1992. Itcommencedoperationsin1994andopenedafull-timeSecretariatin1995.

TheAccountantsAct,mandatestheInstituteto;

(i) RegulateandmaintaintheStandardofAccountancyinUganda;

(ii) PrescribeorregulatetheconductofaccountantsinUganda.

1.2 VisionTobeaworld-classprofessionalaccountancyInstitute.

1.3 MissionTodevelopandpromotetheaccountancyprofessioninUgandaandbeyond.

1.4 AffiliationsICPAUisamemberof;

• TheInternationalFederationofAccountants(IFAC).

• ThePanAfricanFederationofAccountants(PAFA). ICPAUisaboardmemberofPAFA,representingtheEasternregionofAfrica.

• PrivateSectorFoundationUganda(PSFU).

PROFESSIONAL EXCELLENCE

COMMITMENTINTEGRITY

GOOD GOVERNANCE

SOCIAL RESPONSIVENESS

BACKGROUND INFORMATION1.0

Core Values

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2.1 Registered office and principal place of business

42BukotoStreet,Kololo,P.O.Box12464,Kampala,UGANDA.Tel:041-4540125,031-2262333/2265590Email: [email protected],Website:www.icpau.co.ug

2.2 Council

CPA Narendra A. Thakkar : PresidentCPA Patrick Ben Kagoro : Vice PresidentCPA Assoc. Prof. Simeon Wanyama : MemberCPA Muhammed M. Ssempijja : MemberCPA Murtuza Dalal : MemberCPA Protazio Begumisa : MemberCPA Jacqueline B. Lutaya : MemberCPA Henry Lwetabe : MemberCPA Godfrey B. Ssemugooma : MemberCPA Keto N. Kayemba : MemberMs. Sarah Namuli Tamale : Member

2.3 Management

ThekeymanagementpersonnelforICPAUwere;

CPA Derick Nkajja : Secretary/CEOSimon P. O. Oola : Governance & Relations ManagerJohn Bosco Ntangaare : Examinations ManagerCPA Mark Anthony Omona : Technical ManagerCPA Robert K. Tebasuulwa : Finance Manager

2.4 BankersStanbic Bank Uganda Ltd,Forest Mall Branch,Rotary Avenue, Lugogo,P.O. Box 7131,Kampala.

Housing Finance Bank (U) Ltd,Kololo Branch,Lower Kololo Terrace,P.O. Box 1539,Kampala.

2.5 Lawyers 2.5 Auditor

Turyakira & Co. Advocates,Plot 13/15 Kimathi Avenue,4th Floor, Impala House,P.O. Box 30624,Kampala.

CPA Gerald Charles Mugerwa,C/o Jasper-Semu & Associates,Plot 22, Entebbe Road,7th Floor, Conrad Plaza,P.O. Box 8294,Kampala.

2.0 MANAGEMENT INFORMATION

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3.0 STATEMENT OF COUNCIL MEMBERS’ RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2012

TheAccountantsAct(Cap266)requirestheCounciltopreparefinancialstatementsforeachfinancialyear,whichgiveatrueandfairviewofthestateofaffairsoftheInstituteasattheendofthefinancialyearandofitsoperatingresultsforthatyear.ItalsorequiresthatCouncilensurestheInstitutekeepsproperaccounting records, which disclose with reasonable accuracy, the financial position of the Institute.CouncilisalsoresponsibleforsafeguardingtheassetsoftheInstitute.

TheCouncilacceptsresponsibilityfortheyear’sfinancialstatements,whichhavebeenpreparedusingappropriate accounting policies supported by reasonable and prudent judgment and estimates,in conformitywith International Financial Reporting Standards. TheCouncil is of theopinion that thefinancialstatementsgiveatrueandfairviewofthestateofthefinancialaffairsoftheInstituteandofitsoperatingresults. TheCouncil furtheracceptsresponsibility forthemaintenanceoftheaccountingrecordswhichwererelieduponinthepreparationoffinancialstatements,aswellasadequatesystemsofinternalfinancialcontrol.

NothinghascometotheattentionoftheCounciltoindicatethattheInstitutewillnotremainagoingconcernforatleastthenexttwelvemonthsfromthedateofthisstatement.

........................................CPA N. A. Thakkar

..................................CPA Murtuza Dalal

PRESIDENT COUNCIL MEMBER/CHAIR- FINANCE & ADMINISTRATION COMMITTEE

Date Date

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4.0 REPORT OF THE PRESIDENT FOR 2012

IhavethepleasureofpresentingtoyoutheICPAUannualreportfortheyear,2012.

During2012,Uganda’seconomyexperiencedavolatileseriesofeconomicshocksthathaveinexorablyimpactedeverysector.ThesevereeconomicdownturnexacerbatedbytheEuro-debtcrisiscrippledeconomiesworldoverforthegreaterpartof2011,andthefirsthalfof2012.Thiswasevidentinpersistentinflationarypressuresbothonthedomesticandglobalscene.TheglobaleconomiccrisiswasundoubtedlyahugesetbacktotheUgandaneconomy,withtheshock-wavescausinganupsurgeinheadlineandcoreinflation,andacutedepreciationoftheshilling.TheUgandaneconomystartedrecoveringtowardsthesecondhalfof2012.

DespitethechallengingeconomicconditionstheInstitutemanagedtoachieveagoodper-centageofitsobjectivesfor2012.

Ourfinancialperformancewasasfollows:

• Total income increasedby Shs. 939.4million (33.7%); from Shs. 2.788billion to Shs. 3.728billionwhiletotalexpensesincreasedbyShs.1.264billion(61%);fromShs.2.06billiontoShs.3.324billion.

• Netcomprehensiveincomedecreasedby44.6%(Shs.325million);fromShs.728milliontoShs.403.3million.Thisismainlyattributedtoanincreaseinstudents’examinationexpensesandotheroperatingexpenses.

• Totalassetsfinancedbytotalmembers’fundsandliabilitiesincreasedby9.7%(Shs.696.2million);fromShs.7.185billiontoShs.7.882billion.

For years on end,wedesired to have theAccountants Bill passed. Wewere engaged inregulardialogueandconsultationwithkeypolicymakersandfinallyoureffortspaidoff.TheBillwasreadinParliament,forthefirsttime,on7February2012,andthereafterreferredtotheParliamentaryCommitteeonFinance,PlanningandEconomicDevelopment,forscrutiny.TheCommitteepresenteditsrecommendationstoParliamenton14December2012,withearliercontroversialclausesamended. TheBillwasdebatedand finallypassedbyParliamenton6 February2013,andnowawaitsPresidentialassent. Thepassingof theAccountantsBill isindeedalandmarkachievementforallaccountants,giventheirsignificanceinthefinancialmanagementprocessesoftheeconomy.

In2012,theInstitutesuccessfullyimplementedthesecondyearofitsfive-yearstrategicplan,whosecoreobjectiveistoincreasetheInstitute’sproductivityandsustainability.Iamhappytoinformyouthatwearemilesaheadinachievingtheobjectivesofourstrategicplan.

The implementation of the EACIA’s Mutual Recognition Agreement (MRA) is progressing,a roadmap for its implementation havingbeendeveloped in 2012. The initial goal of theroadmapistoensureuniformauditqualityreviewmethodologiesandsyllabi.

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InanefforttoexpandthescopeoftrainingofICPAUcoursestheInstitutesignedMemorandaofUnderstanding(MOUs)withNkumbaUniversityandIslamicUniversityinUganda.ThisbringsthetotalnumberofuniversitiesthatICPAUhasofficialworkingrelationswithto5,takingintoaccountMOUspreviouslysignedwith3universities,in2011.EffortstosignMOUswithotheruniversitiesarein theoffing.Thiswill re-alignandharmonise the framework for the initial stagesof traininganaccountant in Uganda.

ICPAU has continued tomonitor practising accountants, as per the Institute’s Audit PracticeQualityReviewscheme.65ofthe184 practisingfirmsdulyauthorisedbyICPAUweremonitoredin2012,comparedto31outof184in2011.Thesecondcyclemonitoringschemeshowedanimprovementintheperformanceofmostfirmscomparedtotheresultsofthefirstcycle.

WeheldthesecondFinancialReporting(FiRe)AwardsinNovember2012,inpartnershipwiththeCapitalMarketsAuthority (CMA)and theUgandaSecurities Exchange (USE),NewVisionwasthemediasponsor.The2012FiReAwardsattracted47entries,comparedto37in2011.EntriesweresubmittedinBankingServices,InsuranceServices,ConsumerandIndustrialProducts,Non-GovernmentOrganizations, Public Sector and Regulatory Bodies andAssociations. The 2012FiReAwardsevaluators’reportshaveshowntremendousimprovementinthefinancialreportingframeworksoforganisationsthatparticipatedinboththe2012and2011Awards.

Iamalsopleasedtoinformyouthatweoperationalisedourplanstoestablishregionalexami-nationscentres. InJune2012,theNorthernregionexaminationscentrewasopenedwhiletheEasternandWesterncentreswereopenedinNovember2012.

In2012,wealsoembarkedontakingContinuingProfessionalDevelopment(CPD)programmetotheregions,withCPDsheldforthefirsttimeintheNorthern,WesternandEasternregionsofUganda.ThisisinadditiontotheCPDsconductedintheCentralregion.

InAugust2012,wecontractedconsultantstodesignthemasterplanfortheInstitute’spropertyinLubowa.Thesubsequentstepistoembarkonthearchitecturaldesignforthestructuressothatconstructioncancommence.

Ourmembershipissteadilygrowing.Membersincreasedfrom1,536in2011,to1,614in2012whilestudentsalsoincreasedduringtheyear,withtheInstituterecordingahighof8,347students,upfrom6,639in2011.In2012,206candidatescompletedtheCPAcoursewhile93completedtheATCcourse,comparedto215(CPA)and87(ATC)in2011.

TheICPAUorganisationalstructurewasexpandedtoprovideforthechallengesofimplementingthestrategicplan.Anewdepartment,GovernanceandRelations,tohandleissuespertainingtorelationswithICPAU’sstakeholdersamongothermatterswascreated.ICPAUrecruited4newstaff;thePublicRelationsOfficer,aRelationsOfficer,anExaminationsOfficerandanOfficeAttendant.ICPAUalsoimplementedacontributorystaffRetirementBenefitsScheme(RBS)from1January2012,forallpermanentstaffaspartofimprovingstaffwelfare.TheInstitute,inpartnershipwiththeUgandaCountryCapacityBuildingProgramme(UCCBP),facilitatedatraininginregulatoryandcomplianceactivities,forfivestaffattheInstituteofCharteredAccountantsofScotland(ICAS).SomemembersofstaffalsoattendedtheEACIA’sannualseminarsandothertrainings.

ICPAU continuously recognizes the importance of giving back to community through itsCorporateSocialResponsibility (CSR)programme. The InstitutemobilizedUshs.11.7million fortheconstructionofadormitoryfordisabledchildrenatKatalemwaCheshireHome(KCH).TheInstitutehasre-surveyedtheKCHlandandhadalayoutmapdrafted,whichhadcausedadelayintheapprovalofbuildingplans.

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Intheareaofsports,theInstitutesponsoredthe2012ICPAUJuniorWoodballChampionship,thesecondyearround.ICPAUalsodonatedastateofthearttheatretableandlamptoEntebbeHospital,duringthe17thAnnualSeminarinSeptember2012.

AsweembraceVision2040,astrategyaimedattransformingtheUgandaneconomyfrompeasantry toexuberantgrowthanddevelopmentwithin thenext twentyfiveyearsor so,we,thecustodiansoftheeconomyarepromptedtoenhanceourperformancetomatchtheplannedgrowthanddevelopment.TheVisionisoptimistic,focusingonkeyinvestmentsareas;agriculture, industry, tourismandeducation,amongothers, throughharnessingthecountry’shumanandcapital resourcebase. Asaccountants,our task remains toensuretheefficientutilizationofresourcesandproperaccountability,aswellasconsistentstrategicbusinessandfinancialadvisoryinkeydecisionmakingprocesses.

MytenureasICPAUPresidentendsinJune2013.ImustthankallthosewithwhomwehaveworkedassiduouslytopromotetheInstitute’smissionandvision.SpecialcreditgoestotheICPAUCouncil, ICPAUmembers and students, theGovernment of Uganda,Members ofParliament,theICPAUSecretariatandallstakeholderswithoutwhoseintellectual,financialandphysicalsupportwewouldnothaveachievedtheaforementionedmilestones.TherewillbeelectionsforCouncilmembersatthe19thAnnualGeneralMeetingon28June2013.IwishallCouncilaspirantsthebestofluck.

AswerecognizeouraccomplishmentsmayIremindyouthatalongjourneystillliesaheadrequiringdiligence,prudenceandutmostdevotiontothetasksofdevelopingaworld-classprofessionalaccountancyinstitute.Ittakesarobustteamtobuildsuchasoundinstitution.Maywenothastentoadvise,supportandparticipateinthebuildingofthisvitalprofessionsothattogetherwecanepitomizeprofessionalisminaccountancy,inUgandaandbeyond.

CPA N. A. ThakkarPRESIDENT

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5.1 CorporAte GoVernAnCe

5.1.1 Introduction

In itsapproach togovernance, theCouncilembracesbestpracticeprinciplesbasedontheunderstandingthatsoundgovernancepracticesarefundamentaltoearningthetrustofallourstakeholders.ThisiscriticalinsustainingtheInstitute’ssuccessandembracingitsvision.

The Institute’s governance framework enables the Council to fulfil its role ofproviding oversight and strategic counsel in balance with its responsibility toensureconformancewithregulatoryrequirementsandguidelines.

5.1.2 The Council

TheCouncil iscomposedof11members; 8electedmembersand3ex–officiomembers(theAuditorGeneral,theAccountantGeneralandtheCommissionerinChargeofHigherEducationintheMinistryofEducationandSports).Ofthe8electedmembersofCouncil,5mustbeinpublicpractice.

ThePresidentandVicePresidentareelectedbyCouncilmembersfromamongtheelectedmembers.TheCouncilistheInstitute’shighestdecision-makingbodyanditisultimatelyresponsibleforgovernance.TheInstitutehasaunitaryCouncilstructureandtherolesofthePresidentandSecretary/ChiefExecutiveOfficerareseparateanddistinct.

SevenmembersofCouncilwereelected inJune2010andtheir termsofofficewillexpireatthe2013AnnualGeneralMeeting(AGM).Theyareeligibleforre-election.CPAN.A.Thakkarwasre-electedtoCouncilattheAGMheldon24June2011.HistermonCouncilwillexpireatthe2014AGM.

5.0 REPORT OF THE COUNCIL FOR 2012

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CPA N. A. Thakkar,President.Managing Partner, A.H.Thakkar& Sons.

CPA Patrick Ben Kagoro,Vice President.Advisor Operations & Accounts,Bank of Uganda.

CPA Muhammed Moses Ssempijja,Member.Country Leader,Ernst & Young.

CPA Protazio Begumisa,Member.Assistant Commissioner, Uganda Revenue Authority.

CPA Henry Lwetabe, Member.Practitioner, Cartwright.

CPA Keto N. Kayemba, Auditor General’s Representative.

CPA Ass. Prof. Simeon Wanyama,Member.Uganda Martyrs University, Nkozi.

CPA Murtuza Dalal,Member.Regional Executive Partner,PKF Uganda.

CPA Jacqueline B. Lutaya,Member.Partner, AA&L Associates.

CPA Godfrey B. Ssemugooma,Accountant General’s Representative

Ms. Sarah NamuliTamale, Min. of Educ. & Sports Representative

CPA Derick Nkajja, Secretary to Council

5.1.3 Council Members during the year 2012

8Annua l Repor t

NoneoftheCouncilmembershadanyinterestofafinancialnature,ormadeanysuppliestotheInstituteforafinancialreward.

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5.1.4 Council Meetings

FourregularmeetingsofCouncilwereheldonaquarterlybasisin2012;on5March2012,4&18June2012,7September2012,and10&18December2012.

Threespecialmeetingswereheldon13January2012,14May2012and23July2012.

TheCouncilmemberswereprovidedwithnoticesandthedocumentationformeetingsatleastoneweekpriortoeachofthescheduledmeetings.

TheattendanceoftheCouncilmeetingswasasfollows:

Name Designation No. of Meetings

2012 2011

1 CPA Narendra A. Thakkar President 6/7 8/10

2 CPA Patrick Ben Kagoro Vice President 5/7 8/10

3 CPA Assoc. Prof. Simeon Wanyama Member 7/7 9/10

4 CPA Muhammed M. Ssempijja Member 3/7 3/10

5 CPA Murtuza Dalal Member 5/7 8/10

6 CPA Protazio Begumisa Member 6/7 7/10

7 CPA Jacqueline B. Lutaya Member 7/7 5/10

8 CPA Henry Lwetabe Member 6/7 8/10

9 CPA Godfrey B. Ssemugooma Accountant General’s Rep. 5/7 5/10

10 CPA Keto N. Kayemba Auditor General’s Rep. 3/7 3/10

11 Ms. Sarah Namuli Tamale Min. of Educ. & Sports Rep. 1/7 2/2

12 Mr. Baker Balunywa Min. of Educ. & Sports Rep. N/A 1/4

Secretary to Council

1 CPA Derick Nkajja Secretary/CEO, ICPAU 7/7 10/10

5.1.5 Committees of Council

The Accountants Act, 1992 gives Council themandate to establish committees. All theCommittees,withtheexceptionofPAEBandDisciplinary&Ethics,canhaveupto10members,includingachairperson,drawnfromthemembersoftheInstitute.

The Council exercises its oversight role through a governance structure comprising ofCommittees.Thesecommitteesoperatebasingontermsofreference(TORs)approvedbyCouncilonanannualbasis.TheTORsspellouttherole,responsibilities,composition,scopeofauthority,quorumformeetings,appointment,meetingdatesandproceduresforreportingtotheCouncil.

TheCouncilandthecommittees’membersbringtotheInstitutevastskills,knowledgeandexperiencesfromtheirrespectivefields.

TheCommitteesofCouncilinclude:

Public Accountants Examinations Board (PAEB)

PAEBwasestablishedbytheAccountantsAct, togovernthe Institute’sexaminations. It iscomposedofninemembers. Itschairperson isappointedby theMinister for Finance,on

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theadviceofCouncil,fromamongtheBoardmembers.ItsSecretaryistheSecretaryoftheUgandaNationalExaminationsBoard.

Disciplinary & Ethics Committee

Thisisastatutorycommitteecomprisingof5members.ThisCommitteewasestablishedbytheAccountantsAct,Cap.266.ItisthecustodianofthecodeofethicsandhasaformalprocessofhandlingcomplaintsraisedagainstmembersoftheInstitute.

Thedisciplinaryprocess isguidedbytheprinciplesof fairness(theright foramembertoputforwardtheircase),confidentiality,independence,andtherighttoappeal.Theprocesstakesintoconsiderationthepublicinterestaswellaspreservationoftherightsofmembers.

TheCommittee’smajor roles are; to handle anddeliver judgment on cases of professionalmisconduct;andtodevelopandissueguidanceontheprofessionalcodeofconduct.

Education Committee

TheEducationCommitteecomprisedof10members.Ithandlesissuesrelatedtotheeducationand training of the Institute’s members and students; provision of Continuing ProfessionalDevelopment(CPD)tomembersaswellascoordinatingresearch.

Events Management Committee

ThisisaspecialpurposeCommitteeoftheInstitutecomprisingof5memberswhosemainroleistoorganizetheInstitute’sevents.

Finance & Administration Committee

TheFinance&AdministrationCommitteedealswithfinanceandadministrativemattersforthesmoothoperationsoftheInstitute.Itcomprisedof10members.

Marketing Committee

ThisCommitteeoverseesthedevelopmentandimplementationoftheInstitute’smarketingandcommunicationprogrammes.TheCommitteehad9members.

Members’ Services Committee

TheMembers’ServicesCommitteehandlesadmissionofmembersandlooksaftertheinterestsoftheInstitute’sMembers.Ithad10members.

Planning & Development Committee

ThisCommitteegeneratesandmonitorsstrategicanddevelopmentplansof the Institute. Ithad10members.

Technical Committee

This Committee’s main purpose is to promote and maintain compliance with professionalstandards,legalandotherregulatoryrequirements.Itcomprisedof10members.

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Withtheincreasingdemandsof theaccountancyprofessioninUgandaanddiversityoftheInstitute’smembership,Councilcreated5sub-committeesin2012tosupporttheTechnicalCommittee.Theseare:

AccountantsinPublicPractice.

AccountantsinBusiness&Industry.

Accountants in Education.

AccountantsinPublicSector.

TaxationandEconomicPolicy.

Eachsub-committeeischairedbyamemberoftheTechnicalCommittee.

FiRe Awards Committee

ThisisaspecialpurposeCommitteeoftheInstituteundertheTechnicalCommittee,comprisingof7memberswhosemainroleistopromoteandorganiseFinancialReporting(FiRe)Awards.

5.1.5 Remuneration to Members of Council and its Committees

NomemberofCouncilorofitsCommitteesreceivedanypaymentinrespectoftheservicesrenderedto the Institute. They only receivedapartial refundof their transport costswhen theyattendedmeetings.

5.1.6 Committees’ Attendance.

Public Accountants Examinations Board (PAEB)

Name Designation No. of Meetings

2012 2011

1. CPA Patrick Ben Kagoro Chairperson 6/9 2/2

2. Ms. Mercy Mugowa Ntale Member 4/9 1/1

3. CPA Assoc Prof. Simeon Wanyama Member 8/9 2/2

4. Prof. F. I. Kayanja Member 3/9 0/2

5. CPA Twaha Kaawaase Member 7/9 1/2

6. CPA Dr. Samuel Sejjaaka Member 3/9 0/2

7. Mr. Mathew Bukenya Secretary 5/9 2/2

Disciplinary & Ethics Committee

Name Designation No. of Meetings

2012 2011

1. CPA Jacqueline B. Lutaya Chairperson 3/3 7/7

2. CPA Justine N. Tumwesigye Member 2/3 5/7

3. CPA George W. Opiyo Member 2/3 5/7

4. CPA Rupam Bhatia Member 3/3 5/7

5. CPA Sam R. L. Bisase Member 3/3 4/7

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Education Committee

Name Designation No. of Meetings2012 2011

1. CPA Assoc Prof. Simeon Wanyama Chairperson 1/1 9/92. CPA Micheal Twinomujuni Member 1/1 8/93. CPA Dr. Fixon Akonya Okonye Member 0/1 4/94. CPA Betty Higenyi Naula Member 1/1 2/95. CPA Edna Rugumayo Member 0/1 6/96. CPA Paul Olweny Member 1/1 2/97. CPA Hitesh Mahendra Mehta Member 0/1 6/98. CPA Gloria Tuhaise Wakooba Member 1/1 1/19. CPA Ruth Mutebe Member 1/1 1/110. CPA John C. Ntale Kayondo Member 0/1 1/1

Events Management Committee

Name Designation No. of Meetings2012 2011

1. CPA John Muhaise-Bikalemesa Chairperson 8/8 10/102. CPA Dr. Samuel Sejjaaka Member 0/8 3/103. CPA Harriet Kiwanuka Member 5/8 6/104. CPA Laura Orobia Member 3/8 7/105. CPA David Sserebe Member 7/8 2/2

Finance & Administration Committee

Name Designation No. of Meetings2012 2011

1. CPA Murtuza Dalal Chairperson 3/4 5/102. CPA Gervase Ndyanabo Member 1/4 4/103. CPA Moses Bwire Member 1/4 5/104. CPA Ronald Akankwasa Member 0/4 1/105. CPA Sarah Muzungyo Chelangat Member 4/4 6/106. CPA Samalie Kisekka Member 3/4 4/107. CPA Paul Lobe Member 1/4 3/108. CPA Fred Andema Member 2/4 1/19. CPA Paul Senyomo Member 3/4 1/110. CPA Constant O. Mayende Member 2/4 0/1

Marketing Committee

Name Designation No. of Meetings2012 2011

1. CPA M. M. Ssempijja Chairperson 2/5 5/72. CPA Ronald Mutumba Member 4/5 6/73. CPA Thomas Mwanje Member 4/5 2/74. CPA Justin Keith Osillo Member 4/5 5/75. CPA Anil Patel Member 1/5 3/76. CPA Frank Kasule Member 5/5 7/77. CPA Pius Bahemuka Member 3/5 1/1

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Name Designation No. of Meetings8. CPA Anthony Kitongo Member 2/5 1/19. CPA Emmanuel Zinabala Member 1/5 0/1

Members’ Services Committee

Name Designation No. of Meetings2012 2011

1. CPA Henry Lwetabe Chairperson 7/7 8/112. CPA Fawn E. Cousens Member 4/7 6/113. CPA Mathias Tumwesigye Member 4/7 6/114. CPA Mustapha Mugisa Member 4/7 5/115. CPA Deus Tirwakunda Member 5/7 6/116. CPA Clare Agaba Member 1/7 4/117. CPA Andrew Ssentumbwe Member 4/7 1/18. CPA James Ebonga Member 6/7 0/19. CPA Hon. Edward Sempala Mbuga Member 2/7 0/110. CPA James Magson Musabe Member 2/7 0/1

Planning & Development Committee

Name Designation No. of Meetings2012 2011

1. CPA Protazio Begumisa Chairperson 3/4 7/82. CPA Paul Kiyingi Banadda Member 4/4 6/83. CPA Alfred Kabuchu Member 3/4 4/84. CPA Obed Bampe Tindyebwa Member 1/4 6/85. CPA Fulgence Mungereza Member 4/4 4/86. CPA Robert Kajoro Member 1/4 3/87. CPA John Peter Opeduru Member 4/4 7/88. CPA Silajji Baguma Kanyesigye Member 3/4 5/89. CPA Barbara Muchilwa Member 3/4 1/110. CPA Kenneth Brian Amagu Member 2/4 0/1

Technical Committee

Name Designation No. of Meetings2012 2011

1. CPA Keto N. Kayemba Chairperson 1/3 3/112. CPA Frederick Cliff Kato Member 3/3 11/113. CPA Sameer N. Thakkar Member 1/3 4/114. CPA Stephen Ineget Member 3/3 5/115. CPA Charles Oguttu Member 2/3 6/116. CPA Frederick Kibbedi Member 2/3 7/117. CPA Julius Rwajekare Member 1/3 N/A8. CPA Julius B. Mwesigye Member 1/3 N/A9. CPA Henry Duku Member 2/3 N/A10. CPA Sophia Kyomuhendo Member 2/3 N/A

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Accountants in Education – a Technical Sub-Committee

Name Designation No. of Meetings

2012

1. CPA Sameer Thakkar Chairperson 3/4

2. CPA Henry Duku Member 4/4

3. CPA Dr. Charles T. Kazooba Member 3/4

4. CPA Maurice N. Mukokoma Member 2/4

5. CPA Titus Ambayo Member 1/4

6. CPA Joseph K.M. Kizza Member 2/4

7. CPA Daniel B. Mwase Member 3/4

8. CPA Pius Mawanda Ssuuna Member 1/4

Accountants in Public Sector – a Technical Sub-Committee

Name Designation No. of Meetings

2012

1. CPA Charles Oguttu Chairperson 2/3

2. CPA David Kabaale Member 3/3

3. CPA Frederick Kalyango Member 2/3

4. CPA Julius Bamuturaki Mwesigye Member 0/3

5. CPA Charles Alumai Member 2/3

6. CPA Willy Ssenkindu Member 1/3

7. CPA Dr. Fixon Akonya Okonye Member 2/3

8. CPA Peter Kajubi Member 1/3

Accountants in Public Practice – a Technical Sub-Committee

Name Designation No. of Meetings

2012

1. CPA Cliff Kato Chairperson 2/2

2. CPA Mathias Tumwesigye Member 1/2

3. CPA Robert Jack Busuulwa Member 2/2

4. CPA Joseph Barungi Member 1/2

5. CPA Julius Rwajekare Member 1/2

6. CPA Thomson Kwizina Member 1/2

7. CPA James Magson Musabe Member 1/2

8. CPA Stephen Ineget Member 0/2

Accountants in Business & Industry – a Technical Sub-Committee

Name Designation No. of Meetings

2012

1. CPA Frederick Kibbedi Chairperson 3/3

2. CPA Gerard Paul Kasaato Member 2/3

3. CPA Joel Byaruhanga Member 3/3

4. CPA Paul Gimeyi Member 2/3

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Name Designation No. of Meetings

5. CPA Walter Nono Yorac Member 3/3

6. CPA Geoffrey Barigye Member 1/3

7. CPA Sophia Kyomuhendo Member 1/3

8. CPA Israel Opio Member 2/3

9. CPA Charles Ndyabahika Member 1/3

10. CPA Joseph Mukasa Kaggwa Member 1/3

Taxation and Economic Policy – a Technical Sub-Committee

Name Designation No. of Meetings

2012

1. CPA Stephen Ineget Chairperson 2/3

2. CPA Ronald Akankwasa Member 1/3

3. CPA Sarah Muzungyo Chelangat Member 2/3

4. CPA Obed Bampe Tindyebwa Member 3/3

5. CPA Peter Kyambadde Member 0/3

6. CPA Martin Makumbi Member 2/3

7. CPA Plaxeda Namirimu Member 2/3

8. CPA Johnson Semikore Member 1/3

9. CPA Charles Luzinda Member 2/3

10. CPA Annet Bazalilaki Member 2/3

Financial Reporting Awards Committee

Name Designation No. of Meetings

2012 2011

1. CPA Frederick Kibbedi Chairperson 5/5 3/3

2. CPA Keto N. Kayemba Member 1/5 0/3

3. Mr. Kenneth Senyondwa Member 3/5 2/3

4. Mr. Paul Busharizi Member 3/5 2/3

5. CPA Moses M. Kajubi Member 0/5 1/3

6. CPA Derick Nkajja Member 5/5 3/3

7. CPA Florence N. Kawuma Member 4/5 2/3

note: Mr. Paul Busharizi andMr. Kenneth Senyondwa are notmembers of ICPAU. Mr. PaulBusharizirepresentsTheNewVision,whoaretheFiReAwardsofficialmediasponsors.Mr.KennethSenyondwaandCPAFlorenceN.KawumarepresentUgandaSecuritiesExchangeandCapitalMarketsAuthority,respectively,whopartneredwithICPAUforFiReawards.

5.1.7 Code of Ethics

It is thecardinaldutyof the Institute’smembers,membersofCouncil,Committeemembers,studentsandstafftomaintainthevaluesoftheInstitute.Eachstakeholderhasaresponsibilityof fosteringhighethical standardsandvalues, touphold the reputationof theaccountancyprofessioninUgandaandbeyond.

MembersmustadheretotheCodeofEthicsissuedbyICPAUandlawsofthecountry.

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Students must adhere to the students’ Code of Ethics, and Examinations Rules &RegulationsissuedbyICPAU,andthelawsofthecountry.

5.1.8 Succession Planning

SuccessionplanningisakeyfocusoftheCouncilwhich,onanongoingbasis,considersthecompositionoftheCouncilanditscommitteestoensurecontinuedeffectiveness.

TheCouncilalsoensuresthatthereiseffectivemanagementinplacetoimplementtheInstitute’sstrategy.Managementsuccessionplanningisanongoingconsideration.TheCouncil issatisfiedthatthecurrentpooloftalentavailablewithintheInstituteandtheworkbeingdonetostrengthenthetalentpoolprovidesadequatesuccessiondepthforboththeshortandlongtermstabilityandsustainabilityoftheInstitute.

5.2 FUtUre oUtLooK

Duringtheyear2012,theInstituteimplementedthesecondyearofits5yearstrategicplan. The plan sets out the Institute’s strategic objectives as; enhancing the scopeandqualityofproductsandservices;developingandmaintainingmutuallybeneficialpartnerships;increasingtheInstitute’sandmembers’profilesinthemarket;wideningthefinancialresourcebase;andstrengtheningorganizationalsystemsandstructures.

It isgearedatmeeting theneedsofmembers, students, theaccountancyprofessionandotherstakeholders.ThestrategicplanalsosetsthetonefortheInstitutetofulfilitsmandateandfunctionsinlinewithmoderngovernanceprinciples,ethicsofprofessionalbodiesanddevelopmenttrends.

Intheyearstocome,ICPAUwillfocuson;

FulfillingIFAC’smembershipobligations,aswellasthoseofPAFA.

Producing and maintaining accountants and accounting technicians who canserveinanysectorofUganda’seconomyandbeyond.

Diversifyingandimprovingservicestomembers,studentsandotherstakeholders.

Regularlyreviewingitssystemsandorganizationalstructure.

Developingandmaintainingpartnershipsforthebenefitofmembers,studentsandtheaccountancyprofessioningeneral.

ImprovingthestandardoffinancialreportinginUganda.

DevelopingitslandatLubowa(SeeMasterPlanonPage54).

Wideningitsfinancialresourcebase.

Beingsociallyresponsive.

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5.3 SuSTAINABIlITy REPoRT

5.3.1 Introduction

Sustainabilityisthelong-termmaintenanceofresponsibility,whichhasenvironmental,economic,health,andsocialdimensions,andencompassestheconceptofstewardshipandresponsiblemanagementofavailableresources.

Sustainability involves meeting the needs of the present generation withoutcompromising the ability of future generations to meet their own needs. ICPAUrecognisesthatthedevelopmentofaprocessormanagementsystemthathelpstocreateavibrantexistenceandhighqualityoflifewhilerespectingtheneedtosustainnaturalresourcesandprotecttheenvironmentrequiresoutrightcommitment.

Aspartofitssocialinvestment,theInstitutewasengagedineducation,health,charity,sportsandenvironmentalinitiativesin2012.

5.3.2 Education

Through its Career Guidance Outreach (CGO), ICPAUdelivered talks to students in secondary schools,universities and other tertiary institutions in eight sub-regions of Uganda, covering 18 districts. The studentsreceived information on how to succeed in theiracademics;leadingmeaningfullifestyles;andprofessionalaccountancytraining.

5.3.3 Health

TheInstitutedonatedanoperatingtableandlamptoEntebbeHospital.Theequipmentworth UShs. 12.3 million, was received by the hospital Medical Superintendent, Dr.MosesMuwanga.

Mr. Godfrey Neema, ICPAU’s Senior Administrative Officer delivering a CGO talk to students.

ICPAU Vice President, CPA Patrick B. Kagoro (Right) hands over a Theatre table to Dr. Moses Muwanga of Entebbe Hospital.

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5.3.4 Charity

ICPAUmobilizedUshs.11.7million, fortheconstructionofadormitoryfordisabledchildrenatKatalemwaCheshireHome(KCH).ThenettotalfundsavailablefortheprojectstoodatShs.154millionat31December2012.AtopographicalsurveywasconductedfortheHome.

Dr. Moses Muwanga

demonstrates how the

operating table and theatre lamp work.

A participant at the 17th

Annual Seminar has her eyes

checked by an ophthalmologist.

TheInstitutealsoorganisedeyecheck-upsforparticipantsatthe17thAnnualSeminarfrom13-14September2012.283participantswereattendedto.

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HabitatConsultantsdonatedthearchitecturalplanswhileSekaAssociatesConsultingEngineersLtddonatedthestructuralplans.ICPAUhiredasurveyortodrawasitemapforKCHaspartoftheplanstobesubmittedtoKampalaCapitalCityAuthorityforapprovalin2013.

5.3.5 Sports

In sports, the Institute sponsored the 2012 Junior Woodball Championship, held at BuddoSecondarySchool.ThechampionshipwasorganizedbytheUgandaWoodballFederation.Itattracted141participantsfrom5primaryschoolsand9secondaryschools.

CPA Mark Omona, ICPAU’s Technical Manager flags off the 2012 ICPAU Junior Woodball Championship

Participants taking part in corporate exercises

Participants at the 17th Annual Seminar engaged in sports activities, namely; woodball,corporateexercises,jogging,beachvolleyball,beachfootballandswimming.

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5.3.6 Environment

The Institute is conscious of the natural environment in all its operations. This includes theusageofpaperwhichisre-cycledwhereverpossible. Italsodisposesoffshreddedpapertoorganizations that recycle it. The Institute’sactivitiesproduce limitedeffluence. The Instituteoperates fromnaturally litofficepremises foragreaterpartof theyear,asourcontributiontowardsconservingenergyandtheenvironment.

5.3.7 Membership and Studentship

Members Students

CPA AAU CPA ATC

At 1 January 2012 1,525 11 5,020 1,619

Net Additions/(Reduction) during the year 88 (1) 1,555 153

At 31 December 2012 1,613 10 6,575 1,772Net Additions / (Reductions):

Members Students

Additions: CPA AAU CPA ATC

New 90 - 1,752 250

Reductions:

Deceased (2) (1)

Completed Course - - (197) (97)

Net Additions/(Reduction) during the year 88 (1) 1,555 153

5.3.8 Membership Fees Structure

CPA AAU

2013 2012 2013 2012

Shs Shs Shs Shs

Enrolment 220,000 220,000 - -

Annual Subscription 350,000 350,000 300,000 300,000

Practicing 1,000,000 700,000 1,000,000 700,000

Development Fund (Minimum) 300,000 300,000 - -

5.3.9 Audit Practice Quality Reviews

IncompliancewithIFAC’sStatementofMembership’Obligation1(SMO1):QualityAssurance,ICPAU continued to monitor practising accountants, in line with its Audit Practice QualityReviewscheme.EstablishedinSeptember2007,theschemeisaninvaluabletoolforensuringthatpractisingaccountantsdeliverqualityservicetotheirclients.

The second cycle of the auditmonitoring programme started in April 2011. 65 of the 184 practisingfirmsdulyauthorisedbyICPAUweremonitoredin2012,comparedto31outof184in2011.Fivefirmshadfollow–upvisits.TheInstituteobservedanimprovementinperformanceformostofthefirmsvisitedinthesecondcycle,comparedtothefirstcycleperformance.

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5.3.10 Continuing Professional Development (CPD)

In2012,theInstituteheld15one-dayseminars(10in2011),3two-dayseminars(3in2011)andathree-dayresidentialannualseminar.Threeoftheone-dayseminarswereheldatregionallevelinGulu,MbaleandMbarara.

Thethemesforthe2012CPDseminarswere;

Theme No. Date

1. Financial Institutions Seminar 129 20 January 2012

2. Internal Auditors’ Seminar 252 3 February 2012

3. Training of Trainers Seminar (University Lecturers) 37 10 February 2012

4. Training of Trainers Seminar (Training Colleges) 49 17 February 2012

5. IFRS Workshop 272 23-24 February 2012

6. Regional CPD Seminar - Gulu 59 9 March 2012

7. Public Sector Seminar 319 15-16 March 2012

8. Taxation Seminar 209 13 April 2012

9. Non-Finance Managers’ Seminar 99 27 April 2012

10. Practitioners’ Forum 87 11 May 2012

11. Finance and Management Accounting Seminar 159 18 May 2012

12. Regional CPD Seminar - Mbarara 36 1 June 2012

13. Budget Breakfast 304 15 June 2012

14. Regional CPD Seminar - Mbale 76 3 August 2012

15. Oil and Gas Sector Seminar 314 10 August 2012

16. NGO Seminar 178 24 August 2012

17. 17th Annual Seminar 785 12-14 September 2012

i. East African and Global Developments 12 September 2012

ii. Infrastructure and Development 13 September 2012

iii. Business Development 14 September 2012

18. Practitioners’ Seminar 228 18-19 October 2012

19. Taxation Seminar 173 16 November 2012

Participants at the Oil and Gas CPD seminar

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Hon. Maria Kiwanuka,

Minister for Finance

addressing guests at the 14th Budget

Breakfast

the 14th Budget Breakfast

The 14th Budget Breakfast was held on 15 June 2012, at the Imperial Royale Hotel,Kampala,todiscusstheprovisionsofthe2012/13GovernmentofUgandaBudget.TheBudgethadasitstheme:“PrioritiesforRenewedEconomicGrowthandDevelopment.”Thebreakfastwasattendedby304participants from thepublicandprivate sectors.TheMinisterforFinance,Hon.MariaKiwanuka,officiatedasChiefGuest.

the 17th Annual Seminar

TheInstitutehostedthe17thAnnualSeminar,from12-14September2012,attheImperialResortBeachHotel,Entebbe.Theseminarhadthreethemes,namely:East African and Global Developments, Infrastructure and Development, and Business Development. The MinisterofStateforEastAfricanCommunityAffairs,Hon.ShemBageineofficiatedattheopening.Thekeynotespeaker,Prof.P.L.OLumumba,stressedtheroleofaccountantsinchampioning theEastAfricanCommunity (EAC) integration. Dr. LouisKasekende,DeputyGovernor,BankofUganda,presidedovertheclosingceremony.785participants(662in2011)fromUgandaandtheEACattendedtheseminar.

Some ICPAU Council

members and other

delegates at the 17th Annual

Seminar

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5.3.11 EACIAs Mutual Recognition Agreement (MRA)

HavingsignedaMRAon14September2011,theEACIAsdevelopedaroadmapfortheimplementationoftheMRAin2012.Thefirststageoftheroadmapaimsatreviewingand identifyingdifferences inauditquality reviewmethodologies,andexaminations’syllabi;withtheultimateaimofhavinguniformauditqualityreviewmethodologiesandsyllabi.

CPA Pius Bahemuka, ICPAU’s past Secretary raises a point after a presentation, at the 17th Annual Seminar.

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5.3.12 Financial Reporting (FiRe) Awards

InitscontinuedefforttoboostfinancialreportinginUganda,ICPAUorganizedthe 2012 FiRe Awards; in conjunction with the Uganda Securities Exchange(USE)andtheCapitalMarketsAuthority(CMA).TheNewVisionGroupwasthemediasponsor.

StanbicBankUgandascooped theGoldAward;whileCentenaryBankandBritishAmerican Tobacco (BAT) Ugandawon the Silver and BronzeAwards,respectively.

TheMinister for Finance, Planning and Economic Development, Hon.MariaKiwanuka,officiatedasChiefGuest. Sheappealed toorganizations, tousetheIFRSforSMEsastheychampiongoodfinancialreportingandtoparticipateinthe2013FiReAwards.

The Winners, Stanbic Bank pose for a photo with the Minister and organisers of 2012 FiRe Awards

The2012Awardswereheldunderthetheme“The Accountancy Profession 50 years and Beyond”. 47organizationsparticipated in theawards (37 in2011Awards),whichwerecategorized into: Banking Services, InsuranceServices,Consumer and Industrial Products, Non-Government Organizations, PublicSectorandRegulatoryBodies&Associations.

The Financial Reporting

Awards

3

2

1Stanbic Bank Uganda Ltd

Centenary Rural Development Bank Ltd

British American Tobacco Uganda Ltd

12

7

58

10

5

2012 FiRe Awards Participants

Banking Services

Insurance Services

Public Sector

Non-Governmental Organisations

Consumer & Industrial Products

Regulatory Bodies & Associations

95

182

224

192 197

145

125

104

79

97

0

50

100

150

200

250

2008 2009 2010 2011 2012

Num

ber o

f Gra

duat

es

Year

CPA & ATC GRADUATES: 2008-2012

CPA

ATC

24Annua l Repor t

Ins t i tu te o f Cer t i f ied Pub l ic Accountants o f Uganda

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REPoRT oF THE yEAR AWARD

Stanbic Bank Uganda Ltd Gold Award

Centenary Rural Development Bank Ltd Silver Award

British American Tobacco Uganda Ltd Bronze Award

SPECIAl AWARDS

A. SuSTAINABIlITy AWARD

Stanbic Bank Uganda Ltd Winner

Centenary Rural Development Bank Ltd 1st Runner–Up

Housing Finance Bank Ltd 2nd Runner–Up

B. CorporAte GoVernAnCe

Stanbic Bank Uganda Ltd Winner

Centenary Rural Development Bank Ltd 1st Runner–Up

DFCU Ltd 2nd Runner–Up

FINANCIAl REPoRTING CATEGoRy WINNERS

A. BANKING SERVICES

Centenary Rural Development Bank Ltd Gold Award

Stanbic Bank Uganda Ltd 1st Runner–Up

DFCU Ltd 2nd Runner–Up

B. INSuRANCE SERVICES

National Insurance Corporation Ltd Winner

Lion Assurance Company Ltd Runner up

C. PuBlIC SECToR

National Water & Sewerage Corporation Winner

National Social Security Fund Runner-Up

CoNSuMER & INDuSTRIAl PRoDuCTS

British American Tobacco Uganda Ltd Winner

Umeme Ltd 1st Runner–Up

Uganda Baati Ltd 2nd Runner–Up

Joseph Kitamirike (L), the CEO, Uganda Securities Exchange presents the Award for best financial report in the Insurance Services category, to Bayo Folayan, the

MD, National Insurance Corporation (NIC).

CPA Jean Mutabazi, the Financial Controller, National Social Security

Fund (NSSF) shows off the NSSF Award for their achievement in the

Public Sector category.

Paul Sine, BAT’s Finance Director receiving an award.

Sam Mwogeza (L), Stanbic Bank’s Financial Controller, receiving the

Sustainability Reporting Award from CPA George Egaddu, ICPAU’s first President.

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Ins t i tu te o f Cer t i f ied Pub l ic Accountants o f Uganda

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D. NoN-GoVERNMENTAl oRGANISATIoNS

Brac Uganda Winner

ActionAid International in Uganda 1st Runner–Up

Opera San Francesco Saverio-CUAMM 2nd Runner–Up

E. REGulAToRy BoDIES AND ASSoCIATIoNS

Bank of Uganda Winner

CERTIFICATES oF RECoGNITIoN

A. Excellent Report in Presentation & Communication

KCB Bank Uganda Ltd

Crane Bank Ltd

Umeme Ltd

B. Most Improved in Quality of Financial Reporting

DHL Global Forwarding Ltd

Uganda Baati Ltd

British American Tobacco Uganda Ltd

Housing Finance Bank Ltd

5.3.13 ICPAu Examinations

TheCPAandATCexaminationswereheld inJuneandNovember2012 forLevels1 to4andLevels1to3,respectively.TheJune2012examinationswereheldinKampalaandGulu,whiletheNovember2012examinationswereheldinKampala,Gulu,MbaleandMbarara.Studentsaccessed their results via email, the website and printed copies posted to their respectiveaddresses. They also access past examinations paper questions and solutions through theirstudentshipaccountsontheInstitute’swebsite.

Some students writing their exams at the Eastern region examinations centre (Mbale), in November 2012

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Somestudentscompletedthecoursesasshownbelow;

Course 2012 2011June Nov Total June Dec Total

CPA 108 89 197 93 99 192ATC 52 45 97 38 41 79

TheInstitutehascumulatively,produced1,046CPAand1,382ATCgraduates,sincethefirstexaminationsheldinDecember1997andJune2001forCPAandATC,respectively.

Belowisagraphshowingthegraduatesofthecoursesoverthelastfiveyears;

5.3.14 Graduation Ceremony

The Institute held its fourth Graduation ceremony on 31 August 2012, at theMandelaNationalStadium,Namboole.Therewere206CPAgranduands,fromboththeDecember2011andJune2012examinationsdiets.Ofthese,60werefemalewhile146weremale.

Therewere93granduandsofATC.41ofthesewerefemalewhile52weremale.

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5.3.15 Memoranda of understanding with universities

Inordertoachieveitsstrategicobjectives,theInstituteincreaseditscollaborationwithtertiaryinstitutionsfortheteachingoftheCPAandATCcourses.TheInstitutesignedMemorandaofUnderstanding(MOUs)withNkumbaUniversityandIslamicUniversityinUganda.In2011,ICPAUhadsignedMOUswithNdejje,GuluandMakerereUniversities.

5.3.16 Appeal on the Revocation of the Institute’s Tax Exemption Status

TheInstituteobjectedtoTheUgandaRevenueAuthority’srescindingoftheInstitute’staxexemptionstatusandtheobjectionwasdeclined.ThematterwasappealedtotheTaxAppealsTribunalandhearingscommencedinDecember2012.

5.3.17 The Association of Accounting Technicians of uganda (AATu)

The Association of Accounting Technicians of Uganda (AATU) was formed in 2003and registeredwith the Registrar ofCompaniesasanassociation. It commencedoperationsin2005.TheAssociationisresponsiblefororganising,supervisingandinstillingprofessionalisminaccountingtechniciansaswellasorganisingCPDprogrammesforthem.Ithad71membersandtwomembersofstaffasat31December2012.

AATU received a seed grant from the Ministry of Finance, Planning & EconomicDevelopment of Shs. 320million in 2005. As per thecondition of thegrant, ICPAUwasrequiredtosupervisetheAssociation.Thegrantamountwasfullyutilisedin2011.Witheffectfrom2012,theCouncilofICPAUdecidedtosupportAATUtocaterforitsemployeecosts.ThisamountedtoShs.21.7million.

Some graduates and other

officials at the 4th graduation

ceremony

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5.4 THE ICPAu SECRETARIAT

5.4.1 Introduction

TheSecretariathandlestheday-to-dayoperationsoftheInstituteandimplementsCouncil’sdecisionsandInstitute’spolicies.TheSecretary/ChiefExecutiveOfficerheadstheSecretariatcomprisingoffourdepartments.Eachdepartmentisheadedbyamanager.

TheSecretariatalsosupervisestheAssociationofAccountingTechniciansofUganda(AATU)andthePresidentofICPAUisitspatron.

5.4.2 organisational Structure

TheorganisationalstructureoftheInstitutefortheyearended2012wasasfollows;

COUNCIL

COMMITTEES OF COUNCIL

TECHNICAL EXAMINATIONS GOVERNANCE & RELATIONS

FINANCE

SECRETARY / CEO’S OFFICE

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5.4.3 Staffing as at 31 December 2012

Asat31December2012,theSecretariathadatotalof25staffagainstanannualstaffingbudgetof28.

TheInstituterecruitedfourmembersofstaff,namely:thePublicRelationsOfficer,aRelationsOfficer,anExaminationsOfficerandanOfficeAttendant.Astaffturnoverof0%wasregisteredduringtheyear.

37.8 yearswas theaverageageof staff (37.5 years in2011)while theaverageperiodofservicewas5.3years(5.2yearsin2011).

5.4.4 Staff Training and Development

Inpartnershipwith theUgandaCountryCapacityBuildingProgramme, ICPAUtrainedfivestaffinvolvedintheInstitute’sregulatoryandcomplianceactivities.Thetraining,whichtookplacefrom20-24August2012,wasconductedattheInstituteofCharteredAccountantsofScotland,bythe latter’s staff. It isexpectedthatwith this training, ICPAUwill improvethequalityofitsauditmonitoringprogrammeandtheinvestigationsanddisciplinaryprocesses.ICPAUalsoplans to establish apracticemanagement course for practitioners to enablethembetterappreciatethedynamicsofmanagingprofessionalfirms.

SomemembersofstaffalsoattendedtheannualseminarsoftheEastAfricanCommunityInstitutesofAccountants;andothertrainings.

TheformerPublicRelationsOfficerofICPAU,Ms.DianaNaisunaNambi,successfullycompletedaMasters’Degree inCorporateCommunicationsandPublicRelationsat theUniversityofLeeds,UnitedKingdom.ShewasredeployedasRelationsOfficer inthenewly-establishedGovernanceandRelationsdepartment.

Membersofstaffpursuingprofessionalandacademiccoursesweregivencompassionateleavetoenablethemsitforexaminations.

5.4.5 Staff Medical Care

AARHealthServicesLtdcoveredallstaffandtheirspousesformedicalinsurancewhileAPAInsuranceUgandaLtdcoveredforpersonalaccidentandworkman’scompensation.

5.4.6 Staff Retirement Benefits Scheme

Council approved a staff retirement benefits scheme which became operational on 1January2012,forallpermanentstaff.Thestaffcontributed5%oftheirbasicsalariestotheschemewhiletheInstitutecontributed5%ofeachemployee’sbasicsalary.

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5.5 FInAnCIAL perForMAnCe oVerVIeW

Thisoverviewshowstheperformanceof2012ascomparedto2011.Itfocusesonthestatementofcomprehensiveincomeandstatementoffinancialposition.

5.5.1 Statement of Comprehensive Income

Total Income

Thetotalincome,comprisingrevenueandotherincome,increasedbyShs.939.4million(33.7%);fromShs.2.788billiontoShs.3.728billion.Thisismainlyattributedtoanincreaseinexaminationfeesandinvestmentincome.TotalexpensesincreasedbyShs.1.264billion(61%);fromShs.2.06billiontoShs.3.324billion.Thisismainlyattributedtoanincreaseinexaminationcostsandotheroperatingexpenses.Belowisagraphshowingthetotalincomeandtotalexpensesovertheyears;

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

2008 2009 2010 2011 2012

Shs.

000

s

Year

Total Income & Total Expenses

Total Income

Total Expenses

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2008 2009 2010 2011 2012

Shs.

000

s

Year

Net Comprehensive Income

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

2008 2009 2010 2011 2012

Shs.

000

s

Year

Total Income & Total Expenses

Total Income

Total Expenses

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2008 2009 2010 2011 2012

Shs.

000

s

Year

Net Comprehensive Income

5.5.2 Net comprehensive income for the last 5 years

Thenetcomprehensiveincomedecreasedby44.6%(Shs.325million);fromShs.728.3milliontoShs.403.3million.Thisismainlyattributedtoanincreaseinstudents’examinationexpenses andotheroperatingexpenses.

Thenetcomprehensiveincomeforthelast5yearsisshownbelow;

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5.5.3 Total assets over the last 5 years

Totalassetsincreasedby9.7%(Shs.696.2million);fromShs.7.185billiontoShs.7.882billion.

Belowisagraphshowingthetotalassetsoverthelast5years;

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

2008 2009 2010 2011 2012

Shs.

000s

Year

Total Assets

Non-Current Assets

Current Assets

Total Assets

2008 2009 2010 2011 2012

Funds & Reserves 3,287,316 3,959,588 5,801,647 6,688,114 7,135,437

Non-Current Liabilities 64,880 61,606 57,941 54,472 51,084

Current Liabilities 297,844 352,832 391,844 443,157 695,430

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Shs.

000s

Members' Funds & Liabilities

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

2008 2009 2010 2011 2012

Shs.

000

s

Year

Total Assets

Non-Current Assets

Current Assets

Total Assets

2008 2009 2010 2011 2012

Funds & Reserves 3,287,316 3,959,588 5,801,647 6,688,114 7,135,437

Non-Current Liabilities 64,880 61,606 57,941 54,472 51,084

Current Liabilities 297,844 352,832 391,844 443,157 695,430

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Shs.

000

s

Members' Funds & Liabilities

5.5.4 Members’ funds and liabilities

The totalmembers’fundsandliabilitiesincreasedby9.7%;fromShs.7.185billiontoUShs.7.882billion.

Themembers’fundsandliabilitiesaredepictedbelow;

5.6 Auditor

CPACharlesGeraldMugerwawasappointedasauditoroftheInstitutewitheffectfromthefinancialyear2011.Hehasexpressedwillingnesstocontinueinoffice.

ByOrderoftheCouncil

CPA Derick NkajjaSECRETARY TO COUNCIL

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INDEPENDENT AUDITOR’S REPORT 2012

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I haveaudited the financial statementsof the InstituteofCertifiedPublicAccountantsofUgandafortheyearended31December2012,whichcomprisetheStatementofFinancialPosition,theStatementofComprehensiveIncome,theStatementofChangesinMembers’Funds,theStatementofCashFlows,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes.

Council’s responsibility for the financial statementsThe ICPAUCouncil is responsible for thepreparationand fairpresentationof thefinancialstatements in accordance with the International Financial Reporting Standards. Thisresponsibility includes: designing, implementing and maintaining internal control relevantto thepreparationand fairpresentationof financial statements thatare free frommaterialmisstatements,whetherduetofraudorerror;selectingandapplyingappropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstance. Auditor’s responsibilityMyresponsibility is toexpressanopiniononthesefinancial statementsbasedonmyaudit. Iconducted my audit in accordance with the International Standards on Auditing. ThoseStandards require that I complywith ethical requirements andplanandperform theauditto obtain reasonable assurance whether the financial statements are free from materialmisstatements. Anaudit involvesperformingprocedures toobtainauditevidenceabout theamountsanddisclosures in the financial statements. The procedures selected depend on the auditor’sjudgement,includingassessmentofriskandmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolsrelevanttotheentity’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstance,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.Ibelievethattheauditevidenceobtainedissufficientandappropriatetoprovideabasisformyauditopinion.

opinionInmyopinion,thefinancialstatementssetoutonpages36to54andthenotesthereonpresentfairly,inallmaterialrespectsthefinancialpositionoftheInstituteasat31December2012andofitsfinancialperformancefortheyearthenendedandcomplyinallmaterialrespectswiththeInternationalFinancialReportingStandardsissuedbytheInternationalAccountingStandardsBoard.

INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF UGANDA IN RESPECT OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012

6.0

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Report on other legal requirements

AsrequiredbytheAccountantsAct,Cap266,Ireporttoyoubasedonmyaudit,that;

a) I obtained all the information and explanations, which were necessary forpurposesoftheaudit;

b) Inmyopinion,properbooksofaccounthavebeenkeptbytheInstitute,insofarasappearsfrommyexaminationofthosebooks;and

c) TheInstitute’sfinancialstatementsareinagreementwiththebooksofaccount.

CPA Charles Gerald MugerwaP.O.Box8294Kampala

Date: …………………………

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STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2012

Note 2012 2011

ASSETS Ushs.’ 000 Ushs.’ 000

NON-CURRENT ASSETS

Prepaid Operating Lease 11.3 28,434 29,296

Property and Equipment 11.4 2,893,932 2,814,817

Capital Work in Progress 11.5 60,735 26,318

Total Non-current Assets 2,983,101 2,870,431

CURRENT ASSETS

Inventory 11.6 55,839 25,875

Receivables 11.7 212,406 140,527

Prepayments 11.8 61,767 53,768

Investments 11.9 4,268,313 3,191,520

Bank and Cash balances 11.10 300,525 903,622

Total Current Assets 4,898,850 4,315,312

TOTAL ASSETS 7,881,951 7,185,743

MEMBERS’ FUNDS AND LIABILITIES

FUNDS AND RESERVES

Accumulated Fund 11.11 6,563,124 6,156,459

Revaluation Surplus 11.12 46,466 49,785

Development Fund 11.13 525,847 481,870

Total Funds 7,135,437 6,688,114

NON-CURRENT LIABILITIES

Capital Grant 11.14 46,808 50,408

Endowment Fund 11.15 4,276 4,064

Total Non-current Liabilities 51,084 54,472

CURRENT LIABILITIES

Payables and Accrued Expenses 11.16 691,830 439,557

Current portion of Capital Grant 11.17 3,600 3,600

Total Current Liabilities 695,430 443,157

Total Liabilities 746,514 497,629

TOTAL MEMBERS’ FUNDS & LIABILITIES 7,881,951 7,185,743

ThesefinancialstatementswereapprovedbytheCouncilon………………………2013andweresignedonitsbehalfby:

…............................... …...................................……CPA N. A. Thakkar CPA Murtuza DalalPresident Chairman, Finance & Administration

The significant accounting policies and the notes on pages 40 to 54 form part of the financial statements.

7.0

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STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 20128.0

Note 2012 2011

Ushs.’ 000 Ushs.’ 000

INCOME

Revenue 11.18 2,706,448 2,262,331

Other income 11.19 1,021,250 525,958

Total Income 3,727,698 2,788,289

EXPENDITURE

Employee costs 11.20 1,328,069 1,013,240

Administrative expenses 11.21 614,123 409,360

Students Examinations expenses 11.22 551,057 260,587

Depreciation and amortization 11.3 & 11.4 81,601 44,107

Other operating expenses 11.23 749,502 32,680

Total Expenditure 3,324,352 2,059,974

Net comprehensive income for the year 403,346 728,315

…................................. ...................................………CPA N. A. Thakkar CPA Murtuza DalalPresident Chairman, Finance & Administration

The significant accounting policies and the notes on pages 50 to 54 form part of the financial statements.

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9.0

Accumulated Fund

Revaluation Surplus

Development Fund

Total

Funds

Ushs.’ 000 Ushs.’ 000 Ushs.’ 000 Ushs.’ 000

Balance at 1 January 2011 5,424,825 53,104 323,718 5,801,647

Net Comprehensive Income for the year 728,315 - - 728,315

Revaluation Surplus release 3,319 (3,319) - -

Development fund receipts - - 158,152 158,152

Balance at 31 December 2011 6,156,459 49,785 481,870 6,688,114

Balance at 1 January 2012 6,156,459 49,785 481,870 6,688,114

Net Comprehensive Income for the year 403,346 - - 403,346

Revaluation Surplus release 3,319 (3,319) - -

Development fund receipts - - 43,977 43,977

Balance at 31 December 2012 6,563,124 46,466 525,847 7,135,437

The significant accounting policies and the notes on pages 40 to 54 form part of the financial statements.

STATEMENT OF CHANGES IN MEMBERS’ FUNDS FOR THE YEAR ENDED 31 DECEMBER 2012

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10STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 201210

2012 2011

Particulars Notes Ushs 000s Ushs 000s

CASH FLOWS FROM OPERATING ACTIVITIES

Net Comprehensive Income for the year 8 403,346 728,315

Adjustments:

Depreciation & amortisation 11.3 &11.4 81,603 44,107

Loss on stolen items 811 0

Insurance Claim 960 0

Gain on sale of Motor vehicle - (1,720)

Investment income from call account 11.19 (9,695) (30,554)

Investment income from treasury bills 11.19 (358,017) (267,741)

Investment income from fixed deposits 11.19 (242,059) 0

Capital grant release 11.17 (3,600) (3,600)

Operating Income before Working Capital Changes (126,651) (468,807)

Decrease/(Increase) in inventory 11.6 (29,964) (14,511)

Decrease/(Increase) in receivables 11.7 (71,879) (50,356)

(Increase)/Decrease in prepayments 11.8 (7,999) (33,402)

Increase in payables 11.16 252,273 51,313

Net cash from operating activities 15,780 421,851

CASH FLOWS FROM INVESTING ACTIVITIES

Development fund contributions received 43,977 158,152

Investment income from Call account 11.19 9,695 30,554

Investment income from treasury bills 11.19 358,017 267,741

Investment income from fixed deposits 11.19 242,059 0

Decrease / (Increase) in Investments 11.9 (1,076,793) (2,567,336)

Purchase of property & equipment 11.4 (161,627) (109,240)

Proceeds from sale of motor vehicle - 3,020

Decrease / (Increase) in capital work in progress 11.5 (34,417) (26,318)

Net cash (used) in Investing Activities (619,089) (2,243,427)

CASH FLOWS FROM FINANCING ACTIVITIES

(Decrease) / Increase in Endowment fund 11.15 212 131

Net Cash from financing activities 212 131

Net (Decrease) in Cash and Cash Equivalents (603,097) (1,821,445)

Cash and Cash Equivalents at 1 January 11.10 903,622 2,725,067

CASH AND CASH EQUIVALENTS AT 31 DECEMBER 11.10 300,525 903,622

The significant accounting policies and the notes on pages 40 to 54 form part of the financial statements.

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11

11.1 STATuS oF THE ACCouNTING ENTITy

TheInstituteofCertifiedPublicAccountantsofUganda(ICPAU)isaprofessionalaccountancybodyestablishedbytheAccountantsAct,1992Cap266.ItsmajorfunctionsaretoregulateandmaintainthestandardofaccountancyinUgandaandprescribe/regulatetheconductofAccountantsinUganda.

The Institute is a member of the International Federation of Accountants (IFAC), the Pan AfricanFederationofAccountants (PAFA)andPrivate Sector FoundationUganda (PSFU). The InstitutewasamemberoftheEasternCentralandSouthernAfricaFederationofAccountants(ECSAFA)upto31December2011,whenitwoundup.TheInstituterepresentstheEasternAfricaregiononthePAFABoard.

11.2 PERTINENT ACCouNTING PolICIES

11.2.1 Basis of Accounting

ThefinancialstatementsoftheInstitutearepreparedinaccordancewiththeInternationalFinancialReportingStandards(IFRSs).Theaccountingpoliciesadoptedareconsistentwiththoseofthepreviousyear.

Thepreparationof the financial statements inconformitywith the International Financial ReportingStandardsrequiresestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesand disclosure of contingent assets and liabilities at the date of the financial statements and thereportedamountsofrevenuesandexpensesduringthereportingperiod.AlthoughtheseestimatesarebasedontheCouncil’sbestknowledgeofcurrenteventsandactions,actualresultsmayultimatelydifferfromthoseestimates.

At31December2012,currentassetsexceededcurrentliabilitiesbyUshs.4.20billion(2011:Ushs.3.87billion). The Institutemeets its day to day obligations from its current assets.On this basis,CouncilconsidersitappropriatetopreparethefinancialstatementsonagoingconcernbasiswhichassumesthattheInstitutewillbeinoperationalexistencefortheforeseeablefuture.

11.2.2 New and amended standards adopted by the Institute

There are no IFRSs or IFRIC interpretations that are effective for the first time for the financial yearbeginning1January2012thatwouldbeexpectedtohaveamaterialimpactontheInstitute.

11.2.3 Accounting for Grants

Grants were received from the Government of Uganda in accordance with the agreementsbetweentheRepublicofUgandaandtheInternationalDevelopmentAssociation,andbetweentheInternationalDevelopmentAssociationandtheICPAUsignedon9June1995,tocovermainlypropertyandequipment,consultanciesandaportionoftheoperatingexpenditure.Theperiodofthefundingagreementsexpired intheyear2000. Grants relatedtotheacquisitionofpropertyandequipmentweretreatedasdeferredincome.Thegrantamountequivalenttothedepreciationofthebuilding(onlyassetthatisstillbeingdepreciated)istransferredtoincomeannually.

11.2.4 Investment Securities

NOTES TO THE FINANCIAL STATEMENTS OF ICPAU FOR THE YEAR ENDED 31 DECEMBER 2012

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AllinvestmentsecuritiesheldbytheInstituteareclassifiedasheldtomaturity.Councildeterminestheclassificationof its investment securitiesat initial recognitionand re-evaluates thisateveryreportingdate.

Held-to-maturity financial assets are non-derivative financial assets with fixed or determinablepaymentsandfixedmaturitiesthattheCouncilhasthepositive intentionandabilitytoholdtomaturity. Marketable securities comprising of treasury bills are classified in this category andinitiallyrecognisedatcostbeingthefairvalueoftheconsiderationgiven,includingtransactioncosts.Theyaresubsequentlycarriedatamortisedcostusingtheeffectiveyieldmethod,lessanyprovisionforimpairment.

11.2.5 Property and Equipment

Allpropertyandequipmentareinitiallyrecordedatcostandsubsequentlyshownathistoricalcostorre-valuedamountslessaccumulateddepreciation.Propertyandequipmentaredepreciatedonastraight-linebasisovertheirestimatedusefullivesasfollows:

Freeholdland NilBuilding 5% perannumMotorvehicles 20% perannumFurniture 10% perannumOfficeequipment 20% perannumComputers 33.3% perannumLibrarybooks 20% perannum

11.2.6 Prepaid operating leases

Prepaidoperatingleasesareamortisedonastraight-linebasisovertheremaininglifeoftheleasesmadeupasfollows:

Plot42BukotoStreet-34years(2011:35years)

11.2.7 Inventories

Inventoriesarevaluedatcost.Costisdeterminedbythefirst-infirst-out(FIFO)costformula.Theyareheldforresale.

11.2.8 Subscription Fees

Members’subscriptionfeesaretakentoincomeintheyeartowhichtheyrelate.Unlessreceiptiscertain,incomeisnotaccruedinaccordancewithIAS18.

11.2.9 Receivables

Receivablesarerecognisedatfairvalue.

11.2.10 Prepayments

Prepaymentsarerecognisedatfairvalue.11.2.11 Payables and accrued expenses

NOTES (Continued)

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Payablesandaccruedexpensesarerecognisedatfairvalue.

11.2.12 Employee Benefits

TheInstitutepayssalariesandwagestoitsemployeesandcontributestotheNationalSocialSecurityFund(NSSF),paysgratuitytostaffemployedoncontracttermsandcontributestoaRetirementBenefitsSchemeforStaffonpermanentterms.NSSFisadefinedcontributionschemeregisteredundertheNationalSocialSecurityAct(1985).TheInstitute’sobligationsunderthisschemearelimitedtospecificcontributionregulatedfromtimetotimeandcurrentlystatedat10%oftheemployee’sgrosspay.TheInstitutestartedaRetirementBenefitsSchemeforitsstafftowhichitcontributes5%oftheemployees’monthlybasicpay.

TheInstitute’scontributionsarechargedtotheStatementofComprehensiveIncomeintheyeartowhichtheyrelate.

11.2.13 Cash and Cash Equivalents

Forthepurposesofthestatementofcashflows,cashandcashequivalentsarecomprisedofcashathandandbalanceatbank.

11.3 PREPAID oPERATING lEASES

ThebalanceonthisaccountrelatestoleaseholdlandonPlot42BukotoStreet.2012 2011

Cost/Valuation Ushs 000s Ushs 000s

At 1 January 40,404 40,404

Addition during the year - -

At 31 December 40,404 40,404

Amortisation

At 1 January 11,108 10,246

Charge for the year 862 862

At 31 December 11,970 11,108

[

Net Book Value

At 31 December 28,434 29,296

At 1 January 29,296 30,158

NOTES (Continued)

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11.4

PR

oPE

RTy

AN

D EQ

uIPM

ENT

C

urre

nt p

erio

d Fre

ehold

B

uild

ing

Moto

r Com

pute

rs

Off

ice

Furn

iture

Land

Veh

icle

s E

quip

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t &

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NOTES (Continued)

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Ins t i tu te o f Cer t i f ied Pub l ic Accountants o f Uganda

44Annua l Repor t

prev

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per

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NOTES (Continued)

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45A n n u a l R e p o r t

11.5 CAPITAl WoRK IN PRoGRESS2012 2011

Ushs 000s Ushs 000s

As at 1 January 26,318 0

Additions 4,417 26,318

As at 31 December 60,735 26,318

This includes the cost of fencing, relocation of Electricity poles and partial payment ofconsultancyfeesfortheMasterplanfortheInstitute’sLandatLubowa.

11.6 INVENToRy

This comprises stock of International Auditing Assurance and Ethics Pronouncements andInternationalAccountingStandardsCommitteeFoundationpublicationsvaluedatcost.ItalsoincludestheInstitute’sshirtsandblouses,andbagsonsale.

2012 2011

Publications Ushs.’000 Ushs.’000

International Financial Reporting Standards:

2012 Edition 6,495 0

International Auditing, Assurance & Ethics Pronouncements:

2012 Edition 15,964 0

International Public Sector Accounting Pronouncements:

2012 Edition 3,140 0

Bags 1,493

Shirts and blouses 28,747 25,875

Total 55,839 25,875

Thecostof inventory recognisedasanexpenseamountedtoUshs.45.41million(2011:Ushs.38.33million)andhasbeenincludedunderotherincomeintheStatementofComprehensiveIncome.

11.7 RECEIVABlES2012 2011

Ushs.’000 Ushs.’000

The fair values of receivables are as follows:

Owing from students 29,285 25,612

Owing from members 8,365 925

Seminar fees & Sponsorship 117,903 100,954

Magazine Adverts 6,046 0

Publications 4,904 874

Staff advances 35,477 4,647

Sundry receivables 10,426 7,515

Total receivables 212,406 140,527

NOTES (Continued)

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46Annua l Repor t

IntheopinionofCouncil,thecarryingamountsofreceivablesapproximatetotheirfairvalue.

Therewerenoreceivablesdenominatedinforeigncurrency.

Asat31December2012,receivablesamountingtoUshs.174million(2011:Ushs.125.26million)wereoverthreemonthsandnotimpaired.Thesebalancesrelatetoanumberofindependentdebtors,whose recenthistory isnot indefault. Theaginganalysisof these receivables isasfollows:

2012 2011

Ushs.’ 000 Ushs.’ 000

3 to 12 months 140,969 107,431

Above 12 months 33,055 17,829

Total 174,024 125,260

note:OftheUshs.29.3millionduefromstudents,Ushs.21.2millionispayablebytheGovernmentofUgandainrespectofitsemployees’registrationandexaminationfees.

OftheUshs.117.9millioninrespectofseminarfeesandsponsorship,Ushs.47.2millionispayablebyGovernmentofUgandainrespectofseminarfeesforitsemployees.

11.8 PREPAyMENTS2012 2011

Ushs.’000 Ushs.’000

Security deposits (See note below) 1,300 1,300

Internet services 10,349 1,292

Lapel Pins 5,225 5,731

Library expenses 1,768 1,115

Insurance 11,075 8,113

Rent & Rates 450 1,350

One day seminar expenses 2,631 3,666

Staff welfare 1,383 15,959

Magazine 6,982 5,500

Office Equipment 787 982

Study Packs 6,425 0

Subscription 0 722

CPA Economic Forum Expenses 13,392 0

LCD Projector 0 8,038

Total 61,767 53,768

note: SecuritydepositsareforcreditfacilitieswithSheratonKampalaHotelandMTNUganda.

NOTES (Continued)

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47A n n u a l R e p o r t

11.9 INVESTMENTS2012 2011

Securities Held to Maturity Ushs.’000 Ushs.’000

Fixed Deposits 4,268,313 0

Government treasury bills amortised at cost:

182 days treasury bills 0 3,191,520

Total 4,268,313 3,191,520

11.10 BANK AND CASH BAlANCES 2012 2011

Ushs.’000 Ushs.’000

Bank balance 296,245 892,932

Cash in hand 4,280 10,690

Total 300,525 903,622

11.11 ACCuMulATED FuND2012 2011

Ushs.’000 Ushs.’000

Balance at 1 January 6,156,459 5,424,825

Net Comprehensive Income for the year 403,346 728,315

Transfer from revaluation surplus 3,319 3,319

Balance at 31 December 6,563,124 6,156,459

11.12 REVAluATIoN SuRPluS2012 2011

Ushs.’000 Ushs.’000

Balance at 1 January 49,785 53,104

Transfer to accumulated fund (3,319) (3,319)

Balance at 31 December 46,466 49,785

11.13 DEVEloPMENT FuND2012 2011

Ushs.’000 Ushs.’000

Balance at 1 January 481,870 323,718

Contributions during the year 43,977 158,152

Balance at 31 December 525,847 481,870

11.14 CApItAL GrAnt

This relates to grants received from the Government of Uganda in accordance withtheagreements between the Republic of Ugandaand the InternationalDevelopmentAssociation(IDA),andbetweentheInternationalDevelopmentAssociationandtheICPAUsigned on 9 June 1995.

NOTES (Continued)

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48Annua l Repor t

Itcoverspropertyandequipmentmadeupasfollows:2012 2011

Ushs.’000 Ushs.’000

Balance at 1 January 50,408 54,008

Current portion to Current Liabilities (3,600) (3,600)

Balance at 31 December 46,808 50,408

11.15 ENDoWMENT FuND

ThisrepresentsfundsdonatedbytheInstituteofCharteredAccountantsofScotlandforprizestotopstudentsintheInstitute’sCPA(U)finalexaminations.

2012 2011

Ushs.’000 Ushs.’000

Balance at 1 January 4,064 3,933

Investment income earned 362 366

4,426 4,299

Cost of students’ prizes (150) (235)

Balance at 31 December 4,276 4,064

11.16 PAyABlES AND ACCRuED EXPENSES2012 2011

Ushs.’000 Ushs.’000

The fair values of payables and accrued expenses are:

Fees received on application 18,048 22,068

Advance income from members 47,074 31,560

Advance income from students 94,748 87,621

Other advance income 44,863 24,903

Accrued examinations expenses 85,693 82,672

Accrued expenses 62,350 16,457

Accrued Gratuity 14,700 10,500

Leave Provision 75,496 41,107

Katalemwa Charity Collections 153,968 120,115

Staff RBS 84,392 -

Other payables 10,498 2,554

Balance at 31 December 691,830 439,557

In theopinionof theCouncil, thecarryingamountsofpayablesandaccruedexpensesapproximatetotheirfairvalue.

NOTES (Continued)

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49A n n u a l R e p o r t

Thematurityanalysisofaccruedexpensesandotherpayablesisasfollows:

0 to 1 month

Ushs. ’000

1 to 3 months

Ushs. ’000

3 to 12 months

Ushs. ’000

Over 12 months

Ushs. ’000

Total

Ushs. ’000

Fees received on application 1,440 350 2,120 14,138 18,048

Advance income from members 9,028 8,342 18,704 11,000 47,074

Advance income from students 1,800 9,026 31,592 52,301 94,719

Other advance income 2,935 6,160 16,450 19,318 44,863

Accrued examinations expenses 85,693 0 0 0 85,693

Accrued expenses 61,156 944 250 0 62,350

Accrued gratuity 14,700 0 0 0 14,700

Leave provision 2,598 5,197 46,774 20,927 75,496

Katalemwa charity collections 1,779 15,113 16,961 120,115 153,968

Other payables 0 0 10,308 190 10,498

Staff RBS 7,242 21,413 55,737 0 84,392

Total 188,371 66,545 190,496 237,989 691,830

11.17 CUrrent portIon oF CApItAL GrAnt2012 2011

Ushs.’000 Ushs.’000

Balance at 1 January 3,600 3,600

Transfer from Capital Grant 3,600 3,600

Capital grant release transferred to other income (3,600) (3,600)

Balance at 31 December 3,600 3,600

11.18 reVenUe2012 2011

Ushs.’000 Ushs.’000

Subscriptions 465,669 444,919

Enrolment fees 19,800 127,000

Certificates and Licences 214,540 111,570

Students’ Registration fees 168,155 125,205

Students’ Annual renewal fees 298,417 228,285

Examinations fees 1,513,737 1,205,762

Graduation fees 26,130 19,590

Total 2,706,448 2,262,331

NOTES (Continued)

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50Annua l Repor t

11.19 otHer InCoMe

2012 2011

Ushs.’000 Ushs.’000

Income from seminars 986,246 717,557

Less Seminars’ costs (776,880) (592,914)

Surplus from seminars 209,366 124,643

Donation from Bank of Uganda 25,000 25,000

Operational Grant - UCCBP 52,163 26,148

Fire Awards 79,640 24,000

Fines (Disciplinary Cases) 7,150 2,800

Investment Income from Treasury Bills 358,017 267,741

Investment Income from Call Account 9,695 30,554

Investment Income from Fixed Deposits 242,059 0

Magazine Adverts 7,592 0

Net sale of publications 9,151 9,784

Gain on sale of items of PPE 0 1,720

Net sale of Shirts 2,152 2,595

Net sale of Bags 32 0

Students Replacement Identity Cards 6,451 7,373

Repeat Audit Quality Review visits 1,200 0

Duplicate Exam entry acknowledgement & Result slips 2,135 0

Sale of Bid Documents for Lubowa Master plan 600 0

Insurance Claim settlement 5,247 0

Capital grant release 3,600 3,600

Total 1,021,250 525,958

11.20 EMPloyEE CoSTS

2012 2011

Ushs.’000 Ushs.’000

Salaries & Wages 1,037,999 829,595

Leave Provision arising in 2012 54,568 36,157

Leave Provision utilised in 2012 20,179) (20,576)

Sub - total 1,072,388 845,176

Social Security Contributions- NSSF 117,053 82,954

Gratuity 42,000 42,000

Staff Recruitment costs 3,296 4,854

Subscriptions to Professional Bodies 4,100 3,129

RBS Contribution 40,373 0

Staff Welfare 48,859 35,127

Total 1,328,069 1,013,240

NOTES (Continued)

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51A n n u a l R e p o r t

11.21 ADMINISTRATIVE EXPENSES

2012 2011

Ushs.’000 Ushs.’000

Audit Fees 8,500 8,500

Bank charges 10,143 7,969

Council expenses 26,887 23,215

Electricity & Water 13,452 7,114

General office expenses 27,974 14,268

Graduation expenses 28,037 21,255

Library expenses 11,205 3,202

Office Equipment running costs 55,737 40,523

Postage and Telephone 71,419 76,246

Printing and stationery * 44,687 41,256

Professional fees 14,160 19,685

Security expenses * 13,371 2,336

Students Administration expenses 18,046 5,817

Support to AAT(U) 21,680 0

Training 111,958 25,766

Travelling expenses 92,283 83,714

Vehicle repairs, maintenance and operations 44,584 8,494

Total 614,123 409,360

*Ushs.2.336millioninrespectofsecurityhadbeenpresentedaspartofGeneralofficeexpensesin2011.Ithasbeenreclassifiedtosecurityexpenses.

*Ushs.89.545millioninrespectofMagazineCostshadbeenpresentedaspartofprintingandstationerycostsin2011,nowpresentedseparatelyasMagazinecostsunderotheroperatingexpenses.

11.22 STuDENTS EXAMINATIoNS EXPENSES

2012 2011

Ushs.’000 Ushs.’000

Examination administration expenses 105,198 62,887

Examination marking expenses 165,227 22,762

Examination printing and stationery 72,673 10,997

Examiners and moderators fees 201,578 157,321

Examiners Training 6,381 6,620

Total 551,057 260,587

NOTES (Continued)

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52Annua l Repor t

11.23 oTHER oPERATING EXPENSES

2012 2011

Ushs.’000 Ushs.’000

Building maintenance 332 8,403

Corporate promotion 220,444 124,972

Corporate Social responsibility 24,200 20,000

FiRe Awards expenses 128,688 36,557

Insurance 24,242 12,188

Rent & Rates 71,392 10,164

Subscriptions 10,832 30,851

Magazine costs* 269,372 9,545

Total 749,502 332,680

* Magazine costs for 2011 have been split from Printing and stationery under AdministrativeExpensesandpresentedseparatelyunderOtherOperatingExpenses.

11.24 CoNTINGENT lIABIlITIES

Therewerenocontingentliabilitiesasat31December2012fromwhichmateriallosswouldbeanticipated,exceptasexplainedinthetaxationsegment11.27,below.

11.25 PoST-BAlANCE SHEET EVENTS

Therewere nopost-balance sheet events that requiredamendment or disclosure in thefinancialstatementsasatthedateofthisreport.

11.26 FINANCIAl RISK MANAGEMENT

TheInstitute’sactivitiesmayexposeittofinancialrisks–marketrisk(interestrateandforeignexchangerisk),creditriskandliquidityrisk.Interestraterisk:-TheInstitute’sinterestbearingassetsconsistofFixeddepositsanddepositsoncallaccountwhichareatfixedandvariablerates.TheInstitutehastheintentandabilitytoholdtheinvestmentsinfixeddepositstomaturity.Foreign exchange risk:- The Institute mainly transacts business in local currency. At 31December 2012, there were no borrowings or receivables in foreign currency and thusnofinancialassetsorfinancial liabilitiesdesignated in foreigncurrency.The Institute isnotexposedtoanyexchangerisk.Creditrisk:-Creditriskarisesfrombankandcashbalances,andreceivables.ICPAUlimitsitsexposureonbankandcashbalancesbyholding itscashwithsoundfinancial institutions.Additionally,mostofthemoneyisinvestedinfixeddeposits.The receivables aremainly frommembers, organisations that employmembers and theGovernmentofUganda.ThesedebtorsdonotposeacreditrisktotheInstitutebasedonpastdealingswiththem.Liquidity risk:- Prudent liquidity risk management entails maintaining sufficient cash andmarketablesecurities,theavailabilityoffundingthroughadequateamountofcommittedcreditfacilitiesandtheabilitytocloseoutmarketpositions.ICPAUmaintainsadequateliquidresources.

NOTES (Continued)

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53A n n u a l R e p o r t

11.27 REPoRTING CuRRENCy

ThefinancialstatementsarepresentedinthousandsofUgandashillings(Ushs).

11.28 TAXATIoN

TheInstitutehadbeenexemptfromtaxunderSection2(bb)oftheIncomeTaxActupto11January2012.Accordingly,noincometaxwouldaccruefromthesefinancialstatements.However,on12January2012,theCommissioner,DomesticTaxes withdrew the ICPAU tax exemption status which had been granted on19January1999,statingthatICPAUdoesnotfallwithinthemeaningofexemptorganisationsasdefinedbysection2(bb)oftheIncomeTaxAct.TheInstitutehasappealedtheURAruling.TheInstituteisexposedtoacontingentliabilityequalto30%ofthetaxableincomeshoulditfailtoretainthetaxexemptstatus.

NOTES (Continued)

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54Annua l Repor t

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Ins t i tu te o f Cer t i f ied Pub l ic Accountants o f Uganda

55A n n u a l R e p o r t

Derick NkajjaChief Executive Officer

John Bosco NtangaareExaminations Manager

Godfrey NeemaSenior Administrative Officer

Susannie TeegaTechnical Officer

Fiona N.SsimbwaAccountant

Innocent OroneExaminations Officer

Betty BatendaAssistant Accountant

Justine YekoAssistant Accountant

Elsie NakkaziAdministrative Assistant

Grace TukahirwaOffice Attendant

Cones BiineTransport Assistant

Richard KugonzaOffice Assistant

Generous NiragireAdministrative Assistant

Veronica NambajjweExaminations Officer

Christine KikomePersonal Secretary to CEO

Brenda NabiryeManagement Information Officer

Robert K.TebasuulwaFinance Manager

Charles B. ByaruhangaSenior Examinations Officer

Diana Naisuna NambiRelations Officer

Nancy AkulloPublic Relations Officer

Charles LutimbaTechnical Officer

Simon OolaGov & Relations Manager

Mark Anthony OmonaTechnical Manager

Denis WabombaExaminations Officer

Paul N. LugandeRelations Officer

55A n n u a l R e p o r t

ICPAU STAFF 2012

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The Institute of Certified Public Accountants of UgandaPlot 42 Bukoto Street - Kololo, P.O.Box 12464, Kampala - UgandaTel: 256 - 41- 4540125, 031 - 2262333, 031 - 2265590, 071 - 2830651, Fax: 256 - 41 - 4540389Email:[email protected], [email protected]:www.icpau.co.ug

Annual Report2012