CPA Timothy David Ediomu, President of the Institute of Certified Public Accountants of Uganda
HABARI DAILY I Kampala, Uganda I Uganda is poised to align its non-profit financial reporting with global best practice following the introduction of the International Non-Profit Accounting Standard (INPAS), a milestone framework expected to transform accountability and transparency within the country’s non-governmental sector.
The new standard will be unpacked during the 2026 NGO Symposium scheduled for Wednesday at Mestil Hotel, where regulators, accountants, auditors, and leaders of non-profit organisations will gather to discuss its adoption and implications.
The event is organised by the Institute of Certified Public Accountants of Uganda (ICPAU) in partnership with BDO East Africa and AF Mpanga Advocates.
Global recognition
Experts say the adoption of INPAS will place Uganda among a growing group of nations aligning their non-profit financial reporting with a globally recognised standard.
CPA Charles Lutimba, Director of Standards and Regulations at ICPAU, said the development marks a turning point for non-profit organisations that have long operated without a dedicated international accounting framework.
“After many years, accountants in Non-Profit Organisations can breathe a sigh of relief following the launch of the International Non-Profit Accounting Standard, the first complete and independent accounting framework tailored for NPOs worldwide,” Lutimba said.
He explained that until now, non-profit organisations have relied on a patchwork of financial reporting frameworks, which often created confusion and inconsistencies.
“Previously, NPOs lacked a universal accounting standard, and they relied on a myriad of separate standards, Generally Accepted Accounting Principles, and donor-specific reporting formats,” Lutimba said. “While these frameworks played a critical role in improving transparency, their fragmented nature yielded inconsistencies in reporting, and comparability was difficult to achieve.”
According to Lutimba, the absence of a tailored standard also meant that many financial reports did not adequately capture the unique financial realities of the non-profit sector.
Aligned funding structures
“Furthermore, the lack of tailoredness meant that reports did not adequately address NPO-specific reporting requirements,” he noted.
The new framework is designed specifically for the operational and funding structures of non-profit organisations. INPAS introduces a standalone, accrual-based accounting model that incorporates elements unique to NGOs, including grant income recognition, narrative reporting, and the presentation of restricted and unrestricted funds.
Lutimba said the standard will help strengthen trust between NGOs, donors, regulators, and beneficiaries.
“As the scrutiny for nonprofit entities increases, compliance from all fronts becomes more than relevant,” he said. “The INPAS provides a framework that ensures accurate financial reporting, accountability, and compliance tailored to the unique needs of the nonprofit sector, for transparency, donor trust, and stewardship of funds — both restricted and unrestricted funds.”
He added that the adoption of INPAS will significantly improve consistency and credibility in financial reporting among NGOs operating in Uganda.
“The standard is expected to significantly improve consistency, comparability, and credibility in non-profit financial reporting,” Lutimba explained. “This will enable stakeholders to better understand how organisations manage and utilise the resources entrusted to them.”
INPAS was developed through a collaboration between the global nonprofit organisation Humentum and the Chartered Institute of Public Finance and Accountancy (CIPFA), with ICPAU playing a role in the global consultations under the IFR4NPO Project.
The standard was officially launched in October 2025 after six years of engagement and consultation with stakeholders around the world.
Ken Mankanga, the Managing Partner at BDO East Africa, said the introduction of the standard represents a major shift for the global nonprofit sector.
Awareness creation, knowledge sharing
“The introduction of International Non-Profit Accounting Standard marks a defining moment for Non-Profit Organizations globally and in Uganda,” he said. “At BDO, we are happy to support organizations prepare for the transition to adopt INPAS through creating awareness, sharing knowledge and providing practical guidance and tools.”
Beyond the technical aspects of financial reporting, the symposium will also address broader compliance challenges faced by NGOs in Uganda, including legal, regulatory, tax, governance, and data protection requirements.
ICPAU will provide professional accountancy and regulatory guidance, BDO East Africa will focus on financial reporting and donor accountability, while AF Mpanga Advocates will address legal obligations affecting NGOs.
Speakers expected at the symposium include Lutimba, Samantha Musoke, the INPAS Adoption and Engagement Director, Stephen Okello, Executive Director of the National Bureau for NGOs, Kenneth Mankanga of BDO East Africa, and Ernest Wiltshire, Managing Partner at AF Mpanga Advocates.
Through the adoption of INPAS, experts say Uganda’s nonprofit sector will take an important step toward strengthening financial governance while aligning itself with emerging global standards for transparency and accountability.
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