HIIGHLANDERS members yesterday came close to refusing to adopt the treasurer Jerry Sibanda’s report at the club’s annual general meeting after external auditors PNA Chartered Accountants said the audit report was a draft and subject to change.
Refusal to adopt the document was compounded by discrepancies from the treasurer’s report and that of the auditors especially on revenue accrued from donations.
Bekithemba Ndebele from PNA said the report had not been signed by both parties and therefore changes could be made to the document.
“These are draft accounts yet to be signed,” Ndebele said before Mthabisi Thebe also of PNA, presented the auditor’s report. The treasurer’s report said Bosso had received $8 689 from various donors last year while the auditors said Highlanders had received
“We cannot adopt the report. The auditors said it is not final. There is a possibility that there could be changes,” former club secretary Nhlanhla Bahlangene Dube with a majority of the club members in unison said.
That was before Sibanda weighed in and said the inconsistency in the reports was due to the fact that $8 000 and $2 000 donated by former coaches Mkhuphali Masuku and Philani Mabhena respectively, was reflected on the auditors’ report as part of revenue.
The two former coaches donated money that was owed to them by Highlanders and that was not indicated under donations in the treasurer’s report.
Club member Isaac Ncube eventually moved for the report to be adopted and was seconded by Christopher Ndlovu, with other members remaining disgruntled.
Bosso realised $1 517 712 from football matches, Manwele Beer Garden and the clubhouse, but suffered a net loss of $65 657 last year. The club’s debt has soared to $617 609, raising concern from auditors.
“Management is aware that the going principle underlines the assumption that the football club will remain in operation into the foreseeable future. Conversely this means that the Football Club will not be forced to halt operations and liquidate its assets in the near future. The football club’s statement of financial position for 2014 reveals a situation where the current liabilities exceed the current assets by $617 609. This comes as a result of inadequate revenue generated to cover operating expenses; this poses a threat to the going concern of the football club as it cannot meet its short term liabilities,” the report said.
However, Highlanders expect that with the continued support of BancABC they will improve their working capital in the future although no plan has been made to offset the ever-ballooning debt.