News / National
Sports and Recreation Commission's books in shambles
17 Aug 2019 at 08:22hrs | Views
THE Sports and Recreation Commission's ability to continue as a going concern is in significant doubt after it recorded an accumulative loss of over $1 million, according to a report by the Auditor-General, Mildred Chiri.
In her report on Public Entities under the category of Commissions, and presented to Parliament in June this year, the SRC, as at December 31, 2017, had made a cumulative loss of $1 387 415.
"I have audited the financial statements of the Sports and Recreation Commission for the year ended December 31, 2017 and I issued an unmodified/clean opinion with an emphasis of matter paragraph.
"Emphasis of matter I draw your attention to the fact that the Commission had accumulated losses of $1 387 415 (2016: $1 151 114) and its total current liabilities exceeded current assets by $1 026 317 as at December 31, 2017.
"The Commission mainly relied on government grants and did not fully exploit its other sources of finance. These conditions indicate the existence of material uncertainty that may cast significant doubt on the Commission's ability to continue as a going concern," reads the report.
She said the Commission postponed the recapitalisation of its fleet and utilised the funds to host the annual sports awards event and as a result of the postponement the SRC incurred repairs and maintenance costs which gobbled $28 560. "The level of repairs and maintenance imply that the vehicles were of age.
The Commission should consider investing in capital expenditure to avoid high maintenance costs," wrote the auditor-general.
In response management said work was in progress to replace old fleet and office equipment. On revenue collection, management and debt recovery issues, the auditor-general noted that the Commission raised only $37 538 (37 percent) out of budgeted annual levy of $100 000.
"It was noted that from the records registration of National Sports Associations was still in progress and 50 percent of National Sports Associations have been registered. Therefore associations were not compliant with the Sports and Recreation Commission Act [Chapter 25:15] and Statutory Instrument. Service delivery may be compromised due to inadequate funding.
"Mechanisms should be put in place to encourage associations to register with the Commission in compliance with the Act," wrote the auditor-general in her report. The Sports and Recreation Commission was established in terms of the Sports and Recreation Act [Chapter 25:15].
Its main objectives are to coordinate, control and develop the activities of sports and recreation, ensure proper administration of organisations undertaking the promotion of sports and recreation and authorise national and international sporting and recreational activities.
In her report on Public Entities under the category of Commissions, and presented to Parliament in June this year, the SRC, as at December 31, 2017, had made a cumulative loss of $1 387 415.
"I have audited the financial statements of the Sports and Recreation Commission for the year ended December 31, 2017 and I issued an unmodified/clean opinion with an emphasis of matter paragraph.
"Emphasis of matter I draw your attention to the fact that the Commission had accumulated losses of $1 387 415 (2016: $1 151 114) and its total current liabilities exceeded current assets by $1 026 317 as at December 31, 2017.
"The Commission mainly relied on government grants and did not fully exploit its other sources of finance. These conditions indicate the existence of material uncertainty that may cast significant doubt on the Commission's ability to continue as a going concern," reads the report.
She said the Commission postponed the recapitalisation of its fleet and utilised the funds to host the annual sports awards event and as a result of the postponement the SRC incurred repairs and maintenance costs which gobbled $28 560. "The level of repairs and maintenance imply that the vehicles were of age.
The Commission should consider investing in capital expenditure to avoid high maintenance costs," wrote the auditor-general.
In response management said work was in progress to replace old fleet and office equipment. On revenue collection, management and debt recovery issues, the auditor-general noted that the Commission raised only $37 538 (37 percent) out of budgeted annual levy of $100 000.
"It was noted that from the records registration of National Sports Associations was still in progress and 50 percent of National Sports Associations have been registered. Therefore associations were not compliant with the Sports and Recreation Commission Act [Chapter 25:15] and Statutory Instrument. Service delivery may be compromised due to inadequate funding.
"Mechanisms should be put in place to encourage associations to register with the Commission in compliance with the Act," wrote the auditor-general in her report. The Sports and Recreation Commission was established in terms of the Sports and Recreation Act [Chapter 25:15].
Its main objectives are to coordinate, control and develop the activities of sports and recreation, ensure proper administration of organisations undertaking the promotion of sports and recreation and authorise national and international sporting and recreational activities.
Source - chronicle
