Phillip Chiyangwa
Sikhumbuzo Moyo Senior Sports Reporter
AUDITORS engaged by Zifa to go through the association’s financials have refused to give an opinion on the financial position of the association, but instead issued a damning report on how funds were being used or abused. The report by auditing firm Baker Tilly Gwatidzo indicated that Zifa made a loss of $6,815,369 as at December 31, 2014. The report noted that “most transactions are accounted for on payment basis and expenses are not accrued and therefore the liabilities maybe understated”.
An auditor makes an opinion based on two positions — when things are okay whereby the financial statement shows a true and fair view of the organisation, while the second one states that the financial statement does not reflect the fair and true view of the organisation, meaning the statement that was presented for audit does not reflect the exact activities of the organisation.
“It means people who are running the organisation literally do not know what they’ll be doing, meaning either there are no documents to support the financial statement that can be used by auditors to trace a transaction. The best term to use really under such an unhealthy situation will be shambolic,” said a financial expert.
The auditors noted that a significant portion of Zifa’s income comprises donations and grants, and in common with similar organisations, it is impracticable to implement accounting controls prior to entry of such income in the books of accounts.
“Whilst we have no reason to believe that there is any unrecorded income of this nature, we were unable to confirm this. Our tests were confined to recorded receipts.
“The organisation has suffered significant losses due to litigations and continues to incur further expenses to meet its day-to-day operations, most of which are on credit. Most transactions are accounted for on payment basis and expenses are not accrued and therefore the liabilities maybe understated. The total liabilities amount to $6,850,535 as at December 31, 2014.
“Due to the absence of a consistent accruals system for expenses, we cannot express an opinion on the completeness of creditors and contingencies disclosed,” the audit firm’s report stated.
The auditors said because of the significance of the matter, the consolidated financial statement does not fairly represent the financial position of Zifa.
“In our opinion, because of the significance of the matters described in the basis for adverse opinion paragraph, the consolidated financial statements do not present fairly the financial position of the Zimbabwe Football Association as at December 31, 2014.”
The financial statement was, however, adopted by the Zifa assembly that met in the capital on Saturday ahead of the elections that ushered in a new Zifa board led by flamboyant businessman Phillip Chiyangwa and deputised by Bulawayo businessman Omega Sibanda. Chiyangwa had said he would authorise a forensic audit of the Zifa finances in his pre-election campaign as he did not believe the public had been given a true reflection of Zifa’s financial position.
The adoption of the financial statement also resulted in Fifa, who were represented by their manager for member associations Luca Nicola, indicating that Zifa was now eligible for the Fifa Financial Assistance Programme (FAP) Funds assistance programme.
The FAP was established by Fifa in 1999 and is designed to motivate and empower the associations and confederations to organise development programmes that meet their needs and strengthen football and its administration in the long term, particularly in the areas of infrastructure, youth football and technical development.
Member associations and confederations that want to benefit from the FAP have to submit an application to Fifa. The annual funds under the FAP as determined by Fifa’s budget presently amount to $250,000 per member association.