The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | JULIUS BUSINGE | A new global accounting framework for non-profit organisations was unveiled today (March 11) in Kampala, with regulators and financial experts describing it as a major step toward strengthening transparency and accountability in Uganda’s NGO sector at a time when development funding is tightening worldwide.
The International Non-Profit Accounting Standard (INPAS) was the centrepiece of discussions at the 2026 NGO Symposium held at Mestil Hotel, where leaders from the accounting profession, regulators and development practitioners gathered to unpack how the new standard could reshape financial reporting for non-profit organisations.
Stephen Okello, Commissioner at the NGO Bureau, said the introduction of the standard comes at a critical time for the sector, which is increasingly under pressure due to declining donor support both in Uganda and globally.
Okello said the new framework, if fully embraced by NGOs, could help the sector navigate these challenges by strengthening transparency, improving accountability and building stronger institutional capacity.
He noted that development organisations are operating in an environment where donors are becoming more cautious about how funds are utilised, and where competition for limited resources is growing.
According to Okello, the adoption of a common accounting framework such as INPAS will help organisations demonstrate the integrity of their financial systems and strengthen confidence among development partners.
He said the new standards will push organisations to improve transparency in financial reporting, enhance accountability mechanisms and invest more in internal capacity building to ensure proper stewardship of resources.
Okello added that these elements are essential if the NGO sector is to remain credible and sustainable at a time when international development assistance is facing cuts and increasing scrutiny.
The symposium, organised by the Institute of Certified Public Accountants of Uganda in partnership with BDO East Africa and AF Mpanga Advocates, sought to guide non-profit organisations on how to transition to the new accounting framework and strengthen compliance with financial and regulatory requirements.
Officials from ICPAU said the implementation of the new accounting standard will follow a phased approach to ensure that organisations of all sizes and capacities are able to transition smoothly.
They explained that the gradual rollout is intended to give both large international NGOs and smaller community-based organisations adequate time to understand the requirements, build technical capacity and adjust their reporting systems without disrupting their operations.
For many NGOs, the introduction of INPAS represents a major shift in how financial and operational information is reported. For years, non-profit organisations have relied on a mix of generally accepted accounting principles, donor-specific reporting formats and other fragmented systems.
While those frameworks helped improve oversight, experts say they often created inconsistencies in reporting and made it difficult to compare financial information across organisations.
INPAS is designed as the first complete and independent accounting framework specifically tailored to the unique nature of non-profit organisations. It provides guidance on issues such as grant income recognition, treatment of restricted and unrestricted funds, and the presentation of financial information in a way that reflects the operational realities of development organisations.
The framework also introduces stronger emphasis on narrative reporting, a feature experts say will help organisations better demonstrate the real impact of their work.
Samantha Musoke, a Certified Public Accountant and INPAS Adoption and Engagement Director, said the new standard goes beyond traditional financial statements by requiring organisations to clearly explain the outcomes and results of their programmes.
She said narrative reporting under INPAS is closely linked to evidence-based outputs, enabling organisations to show how resources are translating into tangible impact.
Musoke explained that this approach helps strengthen trust in the organisation because stakeholders are able to see not only how funds are spent but also what results are being achieved.
According to her, such transparency builds confidence among both internal stakeholders, such as boards and management, and external stakeholders including donors, regulators and beneficiaries.
Charles Lutimba, Director of Standards and Regulations at ICPAU, said the framework will significantly improve consistency and comparability in financial reporting across the non-profit sector.
He said as scrutiny of non-profit entities continues to increase, compliance and accountability are becoming even more critical.
“The INPAS provides a framework that ensures accurate financial reporting, accountability and compliance tailored to the unique needs of the nonprofit sector,” Lutimba said.
Kenneth Mankanga, Managing Partner at BDO East Africa, said organisations will need guidance and support as they prepare to transition to the new reporting system.
He said BDO is working with partners to create awareness, share knowledge and provide practical tools that will help NGOs adopt the standard smoothly.
INPAS was developed by Humentum, a global nonprofit organisation, and the Chartered Institute of Public Finance and Accountancy in collaboration with ICPAU after six years of consultations under the IFR4NPO Project. The standard was officially launched in October 2025.
Despite improvements in financial reporting standards, many NGOs in Uganda still face complex challenges including legal compliance, governance requirements, tax obligations and data protection regulations.
Organisers of the symposium said the forum was designed to address these challenges by providing practical guidance and expert engagement across financial, legal and regulatory issues affecting the sector.
Through the partnership, ICPAU is providing professional accounting and regulatory guidance, BDO East Africa is supporting financial reporting and donor accountability, while AF Mpanga Advocates is offering legal insight into compliance requirements affecting non-profit organisations in Uganda.
