Auditors doubt SVGFF’s ability to discharge financial obligations

The current financial position of the St Vincent and the Grenadines Football Federation has left auditors in doubt about the organisation’s ability to discharge its financial obligations.{{more}}

This was the assessment presented to the affiliates at last Saturday’s Annual General Meeting, held at the Federation’s office in the Nichols Building at Bentinck Square.

This means that the SVGFF received a qualified opinion, as described in the independent auditors’ report.

The BDO report cited several areas of “internal control deficiencies,” which led to such a decision.

“…The tournament gate receipts, we are unable to satisfy ourselves as to the completeness of local tournament gate receipts and other income … Because of internal control deficiencies surrounding disbursements, we are unable to satisfy ourselves with respect to expenses amounting to $96,485 which are included in administrative expenses, “Win-in-CONCACAF-with-CONCACAF” youth development expenses and local federation expenses,” the report said.

“Because of the levels of the Federation’s working capital deficiency and its credit default, there is substantial doubt as to whether the federation will be able to meet their obligations as they become due,” the report stated.

The report noted that Federation’s current liabilities at December 2012, exceeded its current assets by $781,456 (2011: $724, 205).

The auditor’s report further declared that the SVGFF has defaulted on its borrowing from Bank of St Vincent and the Grenadines, in the amount of $88,242.

Another of the Federation’s deficiencies, as pointed out in the report was that the “Win-in-CONCACAF-with-CONCACAF” project grant funds are not being maintained in a segregated fund. This, the report declared, under the obligation, exceeds the federation’s cash resources by $15,388.

Last month, president of the SVGFF Venold Coombs revealed that he, on behalf of the organisation, borrowed US$12,000 to complete the building at Brighton, which is part of the FIFA Goal Project.

The SVGFF’s main source of income is an annual US$250,000 which is provided by football’s world governing body FIFA.(RT)