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BNSC’s P19 million loss

Publishing Date : 13 May, 2019

Author : KETUMILE RAMATITI

Botswana National Sports Commission’s (BNSC) financial books are deep in the red zone owing to weaknesses in the revenue source mechanisms, reckless expenditure and failure to recover lost monies.


The recently released 2018-19 Auditor General’s report has highlighted that during the financial year under review, the Commission recorded a deficit of P18.67 million. This is compared to P34.22 million losses in the previous year. The main contributors to the reduction in deficit are grant income which increased by P16.44 million (22%) from P73.89 million in the previous year to P90.33 million in the year under review as well as the fair value downward adjustments which was P5.72 million in the previous year and considerably lower at P100 000 in the year under review.


Expenditure increased slightly by 2%, from P115.10 million in the previous year to P117.30 million in the year under review. The auditors have noted that the Commission overspent on the activities of the Botswana Netball Association, and in the process created a receivable of P837 496 which was purported to be recoverable from the parent Ministry.


 The auditors further noted that efforts to recover the amount had proved futile and the whole amount had been provided for a possible impairment. “While it may have been practical to cover the expenses of the Botswana Netball Association and recover the amount at a later date, the auditors observed that the Commission did not seek a written commitment as evidence in case of disputes,” the report realized. 


 In response, BNSC management noted the findings and stated that the Commission was continuing to engage the parent Ministry on the over-expenditure by the Botswana Netball Association at the Netball World Youth Cup. They further stated that the Commission was given an expenditure limit by the Ministry which was adhered to, but the Association spent outside Commission’s authority.


The report has also identified weaknesses regarding controls of the surrounding stadia income. “As per the contract with the Botswana Premier League, the Commission was entitled to 25% of the gate takings.  However, in some instances control sheets were not submitted to the Commission by the teams involved or the agencies hired for the collections, making it difficult to validate the income the Commission was entitled to.” 


In response, BNSC has assured authorities that this will be rectified. Further it was stated by BNSC management that the Commission had agreed with Botswana Premier League on a once off payment for the use of Commission’s stadia. “Both parties will determine the annual charge of stadia based on historical costs with a compound interest formula that would be applied annually. The charge would then be paid bi-annually at the beginning of the Premier League season and at the beginning of the second half of the season,” states the AG’s report.

  
“The Commission had been incurring losses over the past years which had accumulated to P67.37 million as at 31 March 2018 and its current liabilities exceeded current assets by P16.10 million. Therefore, the Commission’s ability to continue as a going-concern is dependent on the Government’s continued financial support,” noted the report. 


It is said an amount of P32.50 million was distributed to 39 affiliates and associates, with allocations ranging from P62 109 (lowest) to P6.50 million (highest). The Botswana National Olympic Committee received the highest amount of P6.50 million followed by the Botswana Football Association which received P6.00 million. 


Additionally, an amount of P18.86 million was used to fund special projects such as Elite Scholarship Fund, IWG Women and Sport, Sports Development Fund, Botswana Games, AUSC Region 5, Zebra Athletes Fund, Women and Sport Botswana and Sports Volunteer Movement. 

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