Sunday, December 3, 2023

BFA flouting procedures by operating 22 different accounts ÔÇô BNSC Report

A Botswana National Sport Commission (BNSC) report has brought to light that the cash strapped Botswana Football Association (BFA) has 22 different bank accounts. The audit report, which was compiled between April 2016 and November 2017, further shows that all the 22 BFA accounts are active. However, of great worry for the BNSC is the fact that some of the bank accounts still carry the names of the association’s former Chief Executive Officers (CEO) and administrators as signatories, contrary to BFA finance manual.

“According to the BFA finance manual; President, Vice President, CEO, Head of departments and Finance Manager are the only authorised bank signatories per bank signatory limit. However, during our review of bank mandates we noted that, there are two officers who are bank signatories to a number of Bank accounts,” reads the report.

The audit report contends that the existence of so many banking accounts pose a risk to the association as they are cumbersome to manage. With so many accounts to monitor, the BNSC warns that the association will also incur high bank charges for their management and maintenance. It further went on to say the many accounts may also prohibit the association from detecting fraudulent activities within its coffers on time.

“There are three bank accounts called Football Development Appeal (FODA) that were opened in 2007 from four different banks, Barclays, Standard Chartered, FNBB and BBS banks. These accounts have a total balance of over BWP700, 000.00 and these funds were deposited in 2007 when these accounts were opened and have never been used but continue to incur bank charges,” the audit report says.

It further states that “Three bank accounts still maintain Mr. Ookeditse Malesu as one of the signatories.” The accounts are an FNB Current Account, a Standard Chartered and an FNB Call Account.

From these 22 bank accounts, the report says, three are debits accounts of which two were opened for the previous two CEOs and one for the current CEO. “Eight bank Accounts are not in the system, two being recently opened and six have long been opened,” the report stated.

The said accounts are an FNB Foreign Currency, FNB Business Account, two BancABC accounts, as well as FODA accounts from Standard Chartered, FNB, Barclays and BBS.

The audit report directed the BFA management to reduce the number of bank accounts held by the association and those that are not active should be closed.

The BFA was also advised to follow the requirements finance manual and make sure all bank signatories are appointed on the set procedures.

“Those who are signatories to bank accounts and are not supposed to be signatories must be removed as well as previous employees who still remain signatories,” says the report.

The report also faulted the BFA for failure to prepare banking reconciliation on time and that there is no evidence they are reviewed and approved.

“The BFA finance manual requires the finance manager to review and sign off all bank reconciliations on a monthly basis. Errors or fraud is not timely detected due to timing or not preparing reconciliations in time. The management must ensure strict compliance to the policy and Maintain consistency on bank reconciliations for all bank accounts,” the report says.


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