Breaking News

Bosso debt soars to $500 000

by Sports reporter
29 January 2013 | 4508 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

Is Itai Dzamara eyeing the US Green Card?

Yes
20.48%
No
73.74%
Not sure
5.77%
537

Comments

News Updates

Email:

Latest News

Allow all whites to return to Europe - petition - The European Union n...

by Staff reporter | 24 May 2015 | 404 Views

Zimbabwe receives digitalisation transmitters from Huawei - The local ...

by Staff reporter | 24 May 2015 | 281 Views

Highlanders vs Whawha - update - Highlanders 2 - 0 WhawhaFulltimeHigh...

by Sports reporter | 24 May 2015 | 561 Views

Mugabe must face ICC, says Biti - President Robert Mugabe and his lieu...

by Staff reporter | 24 May 2015 | 735 Views

Illegal migrant workers will have wages seized by police and face depo...

by Peter Dominiczak | 24 May 2015 | 1260 Views

Mnangagwa encourages Tsvangirai to stick to his poll boycott strategy ...

by Staff Reporter | 24 May 2015 | 697 Views

'Tsvangirai must zip it,' says NCA - THE National Constitutional Assem...

by Staff reporter | 24 May 2015 | 576 Views

City pubs turned into 'sex paradises' - ABANDONED Bulawayo City counci...

by Staff reporter | 24 May 2015 | 761 Views

Mugabe and the Crocodile - Zimbabwe's President Robert Mugabe marked h...

by Stephen Sackur BBC | 24 May 2015 | 793 Views

Macheso, manager beef deepens - ALICK MACHESO's long-serving manager W...

by Arts reporter | 24 May 2015 | 1805 Views

Zimbabwe adds to the ranks of super-rich - FOR a country that has been...

by Darlington Musarurwa | 24 May 2015 | 2326 Views

Lifestyle audits for Zimbabwe's bigwigs - Board members and senior man...

by Staff reporter | 24 May 2015 | 1449 Views

Tow truck scam uncovered in South Africa - Johannesburg - Unscrupulous...

by Staff reporter | 24 May 2015 | 1858 Views

14 Zim doctoral students graduate from the University of Fort Hare - A...

by Tinomuda Chakanyuka | 24 May 2015 | 1017 Views

Entertainment

Winky D face 10 year UK ban for fraud

by Staff Reporter | 24 May 2015 | 2684 Views

Ngibhace ezizweni - Unkown Artist - ...

by Staff Reporter | 23 May 2015 | 2663 Views

Zimbabwe linked Tinashe nominated for a BET award - TINASHE Jorgenson ...

by Staff reporter | 23 May 2015 | 1621 Views

Don Moen to perform at Prophet Magaya's crusade - American gospel mu...

by Staff reporter | 23 May 2015 | 1528 Views

South African soapie stars expected in Bulawayo - SOUTH Africa's soap...

by Bongani Ndlovu | 23 May 2015 | 2111 Views

Energy Mutodi faces fresh theft charges - Flamboyant businessman and ...

by Staff reporter | 23 May 2015 | 1606 Views

All set for Jah Prayzah album launch

by Brendon Nyoni | 22 May 2015 | 2236 Views
iBlog

Rules Or Relationship

The dog does not need a lead to go for a walk. its owner can just speak a word and the dog responds. now, we are not comparing ourselves to dogs, we are comparing performance-based christian living to relationship-based christian living. big, big ... Read More
LindaDiokpa 30 December 2014 ago

Protect Your Greatest Small Business Asset: Time

if your work week is way more than 40 hours, your smartphone is glued to your hand, and your to-do list is multiple pages of overdue tasks—you know how valuable every minute of your time is.your smartphone and tablet make doing business from anyw... Read More
Sergey 05 September 2014 ago