BNOC presents clean audit
Calistus Kolantsho | Monday June 6, 2022 16:00
The post balance sheet events have shown that the organisation will be able to exist in the next financial year. Steven Zgambo, a manager in the Audit Assurance Division said the procedure they did was done in accordance with the international standards of auditing and the procedures that they carried out included testing transactions to supporting documents, ensuring that procuring policies were followed accordingly as prescribed by the manuals that the BNOC Board has implemented in the organisation. “We also tested balances to ensure that those with obligations were complete. For those we had rights we did confirm that the other parties who were owing the organisation did confirm that indeed owe.
Having gathered sufficient evidence, we reviewed the financial statements to ensure that they comply with international financial reporting standards,” he said. Zgambo said after completing the process, they presented an audit opinion. He said the financial statements represent a true reflection of the financial position of the BNOC as of December 31, 2021. He said the opinion is unqualified. “However, the position of the organisation shows that the current liabilities do exceed current asserts. We did get support from the management to present these financials as a going concern because subsequent to the financial year ending, they have been able to secure funding to support the operations of the organisation.
Therefore, our opinion is not modified rather we are bringing attention that there is that position as of December 31, 2021,” he said. Meanwhile, the Botswana Athletics Association (BAA) president, Paphane Botlhale requested the auditor to elaborate the findings that the current liabilities exceeded current assets. He also wanted to understand how the auditor arrived at the unqualified opinion rather than a qualified one. Responding to question, Zgambo explained that there must be an assessment in preparation of financial statements; management must prove that the organisation is going to be a going concern if we present them in the manner we have done. “If the organisation is not a going concern, financials are presented on a break up basis.
Meaning asserts must be shown at the value, which can be realised as if the organisation is no longer going to continue operating. As auditors what we do, we assess the position of the financial statements, like in this case where we have highlighted that the obligations, which are due within 12 months from December 31, 2021 and liabilities that have to be serviced by the organisation are more than the liquid asserts,” he said. Zgambo said as part of the assessment they get supporting cash flows, which show what income the BNOC is going to realise within the next 24 months or activities they are going to do.
He said after evaluating the two positions, they establish if there is adequate income to support the activities and for the organisation to continue operating. Zgambo said as of December, the obligations are more but there is sufficient grants obtained by BNOC to continue to support its activities. He said that is why they do not qualify the audit opinion. He said if in the event that the information provided to them suggest, that income would not be appropriate to support operations, that is when the opinion can get qualified.