Sunday, September 27, 2020

BFA optimistic as it reports reduced deficit

Botswana Football Association (BFA) is optimistic it will be able to drastically reduce its deficit in the coming year.

Contrary to reports making rounds that the association is P18 million in debt, Motlogelwa said the association this year reported its lowest deficit in years.

“As at 31 March 2018, the Association had recorded a deficit of P2.1 million for the year. This is as per the final report we sent to FIFA as was adopted by the recent BFA special general assembly,” BFA second vice president Marshlow Motlogelwa explained.

Speaking in an interview, Motlogelwa said the rumoured P18 million deficit was in fact the association’s total liabilities recorded for the financial year ended.

“I think people got confused when we read out the financial report, hence this confusion,” he said.

Of recent, there had been a concern that the association’s deepening debt called for its closing down, a view which Motlogelwa feels is unwarranted.

“Indeed our current financial report indicate that a material uncertainty exists that may cast doubt on the Association’s ability to continue as a going concern. In other words, if we did not have financiers, the association would be forced to liquidate,” he explained.

He however said given that the BFA is a public entity which is financed by the government, it can carry on its operations even if it is not making any profits.

“The Association’s ability to continue as a going concern is dependent on a number of factors. The most significant of these is that the Association continues to procure funding from Botswana National Sports Commission and other sponsors for the ongoing operations for as long as it takes to restore the solvency of the Association,” he explained.

As a matter of fact, Motlogelwa said at one point, the association requested close to P3 million from the government to pay off some of its creditors, a request which was granted.

He said given the lowly P2.1 million deficit recorded, he is optimistic that the association’s next financial will have a very low deficit or may even show small profit margins.

“To achieve this, we are putting in place cost control measures and enhancement of the general controls. We also intend to raise new money from sponsors and donations,” he explained.

Another way to deal with the deficit, according to the BFA second vice president, will be an adherence to good governance principles as well as continued help from the Government ‘to deal with old debts.’

“As we have pointed out in our report, the Association has negotiated the settlement of its liabilities and measures have been put in place not to incur further liabilities including implementation of a restructuring programme subsequent to year end,” he said.

On whether the reported deficit included monies siphoned from the association coffers, Motlogelwa had this to say;

“We are still investigating and those that have been determined will be included in the deficit.”

Meanwhile, in the report, the BFA finance committee points out that the BFA financial statements ‘have been prepared on the basis of accounting policies applicable to a going concern.’

“This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business,” so reads the report.

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Sunday Standard September 27 – 3 October

Digital copy of Sunday Standard issue of September 27 - 3 October, 2020.