BPL took forever to pay creditors � audit
Mqondisi Dube | Thursday January 26, 2017 14:58
The Botswana Football Association (BFA) forensic audit report reveals that some creditors were made to wait for long periods before payments were made while the policy is that credit settlement should be within 30 days.
According to the motherbody’s regulations, the BFA should “pay for all goods and services received within a maximum period of 30 days of receipt of such goods and services.”
But according to the audit report compiled by South African firm, ADM Financial and Forensic Services, in some instances it took nearly a year to settle accounts.
For instance, Waste Solutions invoiced BPL on September 17, 2014, but only received payment a year later on September 7, 2015.
Thero Investments, Botswana Telecommunications Corporation and Metcourt Inn were some of the companies, which were paid late.
Peermont Walmont Hotel was forced to issue a final payment reminder for accommodation services on April 6, 2015, but the invoice was only settled on January 7, 2016.
“Harvey World Travel, on May 31, 2015, this account was 120 days in arrears. Mr. (Bennett) Mamelodi undertook to pay the outstanding amount of P338,171.65 in two instalments. Cheque 674 for P140,815.90 was issued on June 19, 2015.
Mr. Mamelodi undertook to pay the balance by June 30, 2015. Mr. Mamelodi did not honour his undertaking because a cheque number 692 for P80,925.25 was issued on July 2, 2015. Another cheque with number 700, was issued on July 22, 2015 for an amount of P167,451.16,” reads the report.
The auditors also found issues with the petty cash limits.
BFA regulation stipulate that, “in normal circumstances, petty cash vouchers will be authorised by the Finance Officer”, not exceed P300 on any voucher and should not be used to pay creditors’ invoices, staff loan or travel advances or cashing of personal cheques for staff.
“The BPL Policy is silent on the reconciliation of the petty cash before it is replenished,” the report noted.
According to the findings of the report, there was no evidence that petty cash reconciliation was done prior to petty cash being replenished. “There is no opening or closing balance. Receipts were presented for expenses that are not reflected on the petty cash listing. Not all reimbursements are substantiated with receipts. Petty Cash Vouchers are not pre-numbered.”
The auditors said amounts of up to P1,000 were paid from petty cash, when the regulation states that only expenses below P300 should be funded from petty cash.