News / National
Audit exposes rot at Bulawayo City
11 Jun 2017 at 10:58hrs | Views
AN audit report has exposed a number of irregularities within the Bulawayo City Council run Bulawayo City Football Club with revelations that the team does not even have a contract with their principal sponsor, the council.
The audit which was carried out by PNA Chartered Accountants was for the year ending December 2016.
The local authority began funding Amakhosi in 2015, a year before they were promoted into the country's top flight league in 2016. Among the many findings of the report it was revealed that the team does not have a contract with BCC, with the auditors noting that the lack of documented references may lead to disputes if either party fails to adhere to terms and conditions stated in the contract.
It was further revealed that the club's chief executive officer, Mackenzie Widzani Moyo — a council employee — had got a salary increase from the club but there was no documentation to support the development.
"It was observed that all employment contracts do not clearly state whether the amounts stated on the contracts are basic or net pay. It was also noted that the allowance for the chief executive officer was reviewed from $700 to $1 000 but there was no documentation supporting the increase. Samantha Mpofu (club administrator) had a salary increase but there is no salary review document in her file.
"During the audit it was also observed that all allowances (winning bonuses, transport, fuel and airtime) amounting to $62 230 were not included in the payroll to constitute gross income. It was also noted that some payment schedules were not signed by the players for their transport and match allowances. The amount was only signed for by the coach," reads the report.
It was further revealed that the club could risk having their accounts garnished by Zimra and further attract penalties of up to 100 percent as they were not remitting any of their statutory obligations.
"Employers are required to register their businesses and employees with the National Social Security Authority. Every businessperson who becomes an employer is required to apply to the commissioner general of the Zimbabwe Revenue Authority for registration within 14 days of becoming an employer. During the audit, it was observed that the club is not registered with NSSA and Zimra for Pay As You Earn and has not contributed since commencement of operations," reads the report.
According to a schedule within the audit report it was revealed that there were a number of expenditures incurred by the club which had no supporting documentation, which the auditors noted could point to a possibility of fraud. Some of these expenditures include purchasing of the team kit, travel allowances for the team's executives, meals in transit, laundry, camping allowances, accommodation for the team, match officials fees, hired transport and refreshments for the board to mention but a few.
It was recently reported that BCC has poured in over $1,1 million to the club in the past three seasons and are beginning to feel the pinch of the economic challenges, even sending an SOS to possible partners.
The audit which was carried out by PNA Chartered Accountants was for the year ending December 2016.
The local authority began funding Amakhosi in 2015, a year before they were promoted into the country's top flight league in 2016. Among the many findings of the report it was revealed that the team does not have a contract with BCC, with the auditors noting that the lack of documented references may lead to disputes if either party fails to adhere to terms and conditions stated in the contract.
It was further revealed that the club's chief executive officer, Mackenzie Widzani Moyo — a council employee — had got a salary increase from the club but there was no documentation to support the development.
"It was observed that all employment contracts do not clearly state whether the amounts stated on the contracts are basic or net pay. It was also noted that the allowance for the chief executive officer was reviewed from $700 to $1 000 but there was no documentation supporting the increase. Samantha Mpofu (club administrator) had a salary increase but there is no salary review document in her file.
It was further revealed that the club could risk having their accounts garnished by Zimra and further attract penalties of up to 100 percent as they were not remitting any of their statutory obligations.
"Employers are required to register their businesses and employees with the National Social Security Authority. Every businessperson who becomes an employer is required to apply to the commissioner general of the Zimbabwe Revenue Authority for registration within 14 days of becoming an employer. During the audit, it was observed that the club is not registered with NSSA and Zimra for Pay As You Earn and has not contributed since commencement of operations," reads the report.
According to a schedule within the audit report it was revealed that there were a number of expenditures incurred by the club which had no supporting documentation, which the auditors noted could point to a possibility of fraud. Some of these expenditures include purchasing of the team kit, travel allowances for the team's executives, meals in transit, laundry, camping allowances, accommodation for the team, match officials fees, hired transport and refreshments for the board to mention but a few.
It was recently reported that BCC has poured in over $1,1 million to the club in the past three seasons and are beginning to feel the pinch of the economic challenges, even sending an SOS to possible partners.
Source - zimpapers
