Zifa audit report raises stink

CUTHBERT-DUBE.jpg

THE Zifa Assembly took the association’s board to task over the audit report which unearthed financial irregularities of close to US$1 million.

Kevin Mapasure

The assembly met last week at Zifa Village but a council meeting before the strategic planning indaba, which is usually a rubber-stamping gathering, produced unexpected fireworks with councillors demanding answers on the organisation’s financial operations.

The mother body’s audit was conducted by Baker Tilly Gwatidzo Chartered Accountants and the statements show that in the financial year ending December 2013, total liabilities exceeded assets by US$4 792 748.

The audit report also suggests that as at December last year Zifa owed board president Cuthbert Dube US$694 376.

The report notes that there are no loan agreements between Zifa and Dube and there are no written terms and conditions.

It is however the US$744 635 which the auditors noted was unaccounted for in the 2011 report which raised a stink at the weekend.

The auditors unearthed expenditure without supporting documentation and concluded: “Included in the consolidated financial statements are direct match expenses amounting to US$1 291 636 and operating expenses amounting to US$ 2375,33. However we were not able to obtain appropriate and sufficient supporting documentation or confirmations from third parties.”

The auditors further report: “We were not able to obtain appropriate audit evidence in relation to the association’s recorded accounts payables amounting to US$744 635 of the US$781 588 recorded in the consolidated financial statements, over which there was no system of internal control on which we could rely for the purpose of audit.

There were no other satisfactory audit procedures that we could adopt to satisfy ourselves that the recorded accounts payables were free from material misstatements.”

The councillors demanded answers on what the money was used for and why there were no receipts, but they could not get them from the board or the secretariat.

They resolved that they would go back and study the reports and then reconvene after three weeks to demand answers on the amount in question.

Dube was warned not to hold the councillors to ransom because he has been pumping money into the association.

The cash-strapped association paid a consultant US$15 000 to conduct the strategic meeting held over the weekend, but some within the association saw no value in the exercise.

The 2012 statements show that Zifa had a bank overdraft with CBZ amounting to US$1,2 million which was secured by a residential property in Cuthbert Dube’s name.

The association owed Sharif Mussa US$7 500 in addition to the US$672 596 loan from Dube.

In the period in question the association received almost US$2 million revenue from Fifa and Caf grants, player transfers, gate takings, subscriptions, appeal fees and registrations among other sources.

The financial statements show that the association is US$4 194 674 in the red and some of the creditors had obtained court judgments to enable them to attach property.

Last year Zifa collected US$1 million in revenue with the Fifa and Caf grants contributing US$309 978, while they got
US$50 713 from donations.

Player and transfer fees only brought in US$27 000, while the association made US$142 966 from registrations with the other significant amounts coming from match levies, and gate takings
(US$174 978).

 

Dube sweats on property

ZIFA president Cuthbert Dube is on the brink of losing one of his residential properties after the association failed to service a bank overdraft of 2011.
According to the audit report compiled by baker Tilly Gwatidzo Chartered Accountants, the overdraft is now due and it had swelled to US$ 1 568 839 as at December 2013.
Zifa took out loans to help finance the association’s operations, particularly the Warriors’ continental commitments, and used one of Dube’s houses as collateral.
But that move could backfire as the association grapples with a cash crisis which has hindered any efforts to settle the amount.
Only recently Dube used another of his properties as collateral to secure accommodation for the Tanzanian national team which had been locked out of a Harare hotel.
Zifa owe the hotel US$26 000.
There are however three-star hotels in Harare where Zifa could have paid about half of what they were charged for the Tanzania booking.
Zifa promised to pay up once they received their Fifa grant but it is the bank overdraft that is causing Dube sleepless nights with no prospects of Zifa securing enough cash to pay up.
Councilors also took Dube to task over using his properties as collateral.
To Dube’s credit, he might have saved the association demeaning consequences from Fifa.
The Warriors might have attracted a Fifa ban by failing to fulfill a fixture as is the case with the national Under 17 and Under 20 teams.

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