Breaking News

Bosso debt soars to $500 000

by Sports reporter
29 January 2013 | 4133 Views
HIGHLANDERS Football Club have been advised by their new auditors Grant Thornton to set up a workable accounting system to manage the club's finances as they continue to be saddled with debts of over $500 000.

Philip Ndlovu, a partner at Grant Thornton, on Sunday told the Bosso annual general meeting that the club's accounting system was not viable for the club which has been declared broke and unable to service its creditors.

"You are technically and factually insolvent. We cannot say you have enough resources to continue as a concern. Your creditors can also not be ascertained because of your system. If all your assets were to be sold you would not be able to meet your liabilities," Ndlovu said.

"The responsibility for the prevention of fraud and error rests with management through the implementation and continued operation of adequate accounting and internal control systems."

According to the executive summary of the auditors: "The company (Highlanders) incurred a cumulative net loss at the year ended December 31 2012 of $472 960 and, as at that date its total liabilities exceeded its total assets by $194 485. These events indicate a material uncertainty that may cast significant doubt on the company's ability to continue as a growing concern and, therefore, the company may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements (and notes thereto) do not disclose this fact."

According to the summary, the Bulawayo football giants are $511 332 in the red and Grant Thornton said the club board and executive should advise of projects to trade Bosso out of insolvency, operate at a profit position and establish other projects to sustain core ventures.

Last year, Highlanders generated 73% of its total revenue from its football division, but it is noted that they incurred losses. Grant Thornton gave the thumbs up to the Manwele Beer Garden project which made a profit of $10 681 in five months.
Highlanders won a tender to run the beer garden from the city council.

The club was found wanting in authorisation of club expenditures, authorisation of journal entries, segregation of duties, audit preparedness, budgetary controls, revenue, creditors and payments.




It was, therefore, advised to hire quality staff and increase training, produce monthly management accounts, be prepared for audit, establish a well thought and feasible business plan and implement key accounting systems and controls.

Club chairman Peter Dube said they were working on measures to rectify the situation.

Bosso Debt

Source: newsday

Should airtime and street vendors pay the $1 a day State levy?

Yes
12.74%
No
76.43%
Desperation
10.83%
157

Comments

News Updates

Email:

Latest News

Makanaka Wakatama regrets early marriage - They say experience is the ...

by Farai Kuvirimirwa | 01 August 2014 | 96 Views

Mugabe throws lavish party, as economy grinds to a halt - President Mu...

by Staff reporter | 01 August 2014 | 103 Views

'I'm not sleeping,' says Chinamasa - IN a move that shows government h...

by Staff reporter | 01 August 2014 | 150 Views

Mnangagwa seeks Gono alliance - SUCCESSION manoeuvres in Zanu-PF are i...

by Staff reporter | 01 August 2014 | 163 Views

'ZBC will never be the same,' says Jonathan Moyo - MEDIA, Information ...

by Staff reporter | 01 August 2014 | 203 Views

Omafikizolo blamed for MDC-T problems - SOME founding members of the M...

by Staff reporter | 01 August 2014 | 137 Views

Air Zimbabwe's Chinese made MA60 planes back in the skies - AIR Zimbab...

by Staff reporter | 01 August 2014 | 123 Views

Why Jonathan Moyo lost - MDC-Renewal team leader Tendai Biti may be ba...

by Staff reporter | 01 August 2014 | 265 Views

'Zimbabwe opposition has failed to read new political economy' - OXFOR...

by Staff reporter | 01 August 2014 | 126 Views

Grace Mugabe factor rocks Mujuru faction - FIRST Lady Grace Mugabe's e...

by Staff reporter | 01 August 2014 | 809 Views

Cobbler bashes wife for serving him cold food

by Staff Reporter | 01 August 2014 | 679 Views

Ambulance driver kills nurse wife - A BEITBRIDGE Rural District Counci...

by Staff reporter | 01 August 2014 | 1049 Views

Zimbabwe soldiers go berserk, beat up residents - ROWDY soldiers alleg...

by Staff reporter | 01 August 2014 | 1240 Views

High Court judge bars Chombo

by Staff Reporter | 01 August 2014 | 951 Views

Njabulo 'Tshiki' Ncube returns to Bosso

by Staff Reporter | 01 August 2014 | 597 Views

Court official charades as High Court judge, dupes SA national

by Staff Reporter | 01 August 2014 | 810 Views

NRZ demonstrations blocked by police - POLICE have barred National Rai...

by Staff Reporter | 01 August 2014 | 826 Views

Entertainment

Miss Zimbabwe UK 2014 aims to raise bar in quality

by Staff Reporter | 29 July 2014 | 2046 Views

Gospel singer wants prostitution to be legalised - Controversial gospe...

by Staff reporter | 27 July 2014 | 4456 Views

Zimbabwean boy revels in Soul Brothers music

by Lovemore Dube | 26 July 2014 | 7572 Views

Carl Joshua Ncube to tour with brand new material - The brand new stan...

by Staff Reporter | 24 July 2014 | 1084 Views

Macheso gears up for UK tours - In an apparent joint preparation for t...

by Entertainment reporters | 23 July 2014 | 2039 Views

DJ Munya is back - After a two-year hiatus, DJ Munya - real name Munya...

by Entertainment Reporter | 23 July 2014 | 4275 Views

White guy plays chitekete - https://www.youtube.com/watch?v=kp16XF-Tcf...

by Staff Reporter | 23 July 2014 | 6082 Views