NSSF assets up by 25 per cent
Posted Tuesday, February 14 2012 at 00:00
This means the Fund’s assets are now estimated at Shs2.1 trillion up from Shs1.7 trillion.
The National Social Security Fund assets base grew by 25 per cent in the 2010/2011 Financial Year, according to a statement from the institution.
The revelation comes after NSSF received a clean audit report and an unqualified opinion from the Auditor General. This is the first time in 10 years that NSSF has received an unqualified opinion from the Attorney General.
Unqualified opinion is issued by an auditor after he or she is satisfied that financial statements presented are a true and are of fair view in accordance with the financial reporting framework used for the preparation and presentation of the Financial Statements.
Qualified opinion on the other hand is given when an auditor is not satisfied with information given in the financial reports.
In a communication that was released over the weekend, NSSF said its assets had grown by 25 per cent, increasing from Shs1.7 trillion in the FY 2009/2010 up to Shs2.1 trillion at the end of FY 2010/2011, while its revenue grew by eight per cent from Shs137 billion to Shs147 billion.
While reacting to the improved financial outlook, Mr Richard Byarugaba, the managing director, said: “The financial statements show improved financial performance compared to the previous financial year. “This is a great achievement and a huge milestone in the turnaround of the Fund. The Fund has been receiving a qualified opinion since 2002,” Mr Byarugaba said.
He added that the Fund’s major objective is to create value for members’ funds and that this will be achieved through investing profitably and reducing costs. “We are committed to continuous improvement in performance and service delivery to the members,” Mr Byarugaba said.
He also noted that the Fund’s monthly collections had hit up to Shs40 billion and this is expected to continue growing due to the relationship management business model that was introduced in the last financial year.
This improved performance follows years of poor annual results by the Fund. The poor results have always been related to inefficiency and corruption among its past top management.