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LAPF boasts best financial practices

15th December 2012
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Andrew Kuyeyana

The Local Authority Pensions Fund (LAPF) has credible reason to brag about its performance given that despite upheavals in the market, they have recorded steady growth in the financial year 2011/2012.

Speaking during a press conference held in Dar es Salaam yesterday, LAPF Marketing Manager Andrew Kuyeyana reported that for the past one year the value of the Fund has grown by a ‘commendable’ 25 per cent.

According to Kuyeyana, the value of the Fund as of June 2012 stood at Sh540billion, a Sh90 billion increase compared to the same period last year (June 2011) when it was Sh450 billion.

Also, the net addition fund from members and the benefits expenses paid to them increased from Sh31.7 billion in 2009/2010 to Sh54.0 billion in 2010/2011, a 70.3 per cent increase.

Share value is not all the growth the authority is enjoying, for as Kuyeyana cited, there has also been an increase in membership from 80,529 in June 2011 to 91,852 in June of this year.

Kuyeyana attributes the increase in membership to ongoing proactive and systematic recruitment of new members from other local government authorities and also due to what he termed as ‘liberalisation’ of the Social Security Sector.

In fact, for the fourth consecutive time, LAPF has scooped victory winning yet again the National Board of Accountants and Auditors (NBAA) Best Presented Financial Statements Award for the year 2012 in the Social Security Sector.

“This signifies amongst other things, the Fund’s high level of accountability, diligence and transparency…” said the manager.

Kuyeyana explained this is due to a number of reasons. listing them to be timely and accurate payment of pension to members and accounting and financial reporting system that is in full compliance with the principles of the International Financial Reporting Standards (IFRS).

LAPF is also utilising modern technological advancement and adopting for calculation purposes, a cutting edge system known as NAVISION, which is market accounting software that serves for Enterprise Resource Planning (ERP) and service modules.

So equipped with this and other modern systems, the Fund is able to pay pension and keep record of its members who are paid six months before retirement.

SOURCE: THE GUARDIAN