OUR REPORT OVERVIEW:
Introduction
Purpose, scope, and boundary of our report
Embracing integrated thinking, we incorporate environmental, social, and governance (ESG) factors into our strategic decision-making and operations.
This report provides stakeholders with a forward-looking perspective on our financial and non-financial performance, including strategy, risks, opportunities, targets, and governance.
Aligned with the Integrated Reporting (IR) Framework and Uganda's National Social Security Act Cap 230, this report covers our progress for the year ending 30 June 2024. "National Social Security Fund," "NSSF," and "The Fund" are interchangeably used but refer to the same entity.
Our report aims to demonstrate our value creation and commitment to fostering shared prosperity for our members, the economy, and society.
It offers a transparent view of how we create value across short, medium, and long terms, addressing material financial, economic, social, and governance issues.
Materiality
This report discloses information about matters that substantively affect our ability to create value over the short, medium, and long term. Short-term refers to 12-18 months, medium-term spans 18 months to 5 years, and long-term extends beyond 5 years.
We adopt the concept of double materiality, encompassing both internal factors that influence our operations, risk management, and financial performance, and external factors with significant implications for stakeholders and the broader environment, including social and environmental risks, regulatory changes, and emerging trends.
This approach ensures stakeholders gain insights into the material factors driving our immediate operational success, as well as our strategic initiatives and investments shaping medium and long-term resilience, growth, and positive societal and environmental impacts.
Our materiality determination process is continually assessed and approved by our Board to ensure the relevance of our strategy.
Materiality determination process
Identify matters through internal and external environmental scanning
Prioritise matters and formulate the strategic risks and opportunity register
Define strategy and targets, incorporating performance measures
Foreward looking statements
This report may contain forward-looking statements with respect to the Fund’s future performance and prospects.
While these statements represent our judgment and future expectations at the time of preparing this report, several emerging risks, uncertainties, and other key factors could cause actual results to differ materially from our expectations.
These include factors that could adversely affect our business and financial performance.
Outlook
Outlook information comprises challenges, opportunities, and disruptive factors we have identified that have the potential to affect the achievement of our strategic objectives and our mitigating response as well as opportunities identified. Outlook information can be found throughout this report; however, most of this information can be found in our outlook section.
Internal controls and assurance
Internal audit
The internal audit function plays a crucial role in supporting the integrity and transparency of integrated reporting at NSSF. It provides independent assurance on financial and non-financial reporting, governance, risk management, and control processes. By focusing on areas of greatest risk, internal audit ensures the design and operating effectiveness of the framework supporting integrated reporting objectives.
External audit
External auditors, KPMG Uganda, were appointed by the Auditor General, to conduct the annual audit of the Fund's Annual Financial Statements for the year ending 30 June 2024. They issued an unqualified audit opinion, aligning with International Financial Reporting Standards and regulatory requirements, affirming the Fund's robust financial health.
Combined assurance
In the three lines of defence model, Enterprise Risk Management, Legal, and Internal Audit collaborate to provide combined assurance on risk, compliance, and internal controls. This approach ensures comprehensive coverage and avoids duplication in assuring financial and non-financial information.
Internal audit’s role in integrated reporting
Internal audit at NSSF is structured to support enterprise value creation through integrated reporting. It evaluates reporting processes, governance, risk management, and control adequacy related to financial and non-financial capitals. Providing objective assurance independent of management, Internal audit enhances the integrity of the integrated report's content, ensuring alignment with stakeholder interests.
Internal audit provides assurance on key areas across the six capitals:
This comprehensive assurance framework supports NSSF in delivering value and ensuring transparency in its operations and reporting.
Manufactured: IT infrastructure and real estate portfolio management
Financial: Strategy execution, financial performance, investment processes, and financial reporting
Human: Organisational restructuring, recruitment, rewards, benefits, and training
Social and Relationship: Strategic partnerships, CSI activities, and community impact
Natural: ESG frameworks and compliance
Intellectual: Brand management, data security, and IT frameworks
A NEW DAY - CREATING SHARED VALUE FOR SUSTAINABLE GROWTH