telecel dstv AD

ZIFA cooks up financial figures

advert

The Zimbabwe Football Association doctored the Zimbabwe-Liberia match accounting figures citing they incurred a loss of close to $57 000, an amount believed to be Prophet Walter Magaya’s sponsorship instead of $738.85

By Sports Reporter

A figure that was supposed to be recorded as Other Income exposes Zifa’s ill financial management and accounting records. The match’s accounting records released by the local soccer governing body stated that the net deficit of the match amounted to a negative $56 838.85

Prophet Magaya chipped in $57 000 financial assistance for the match which covered the National team’s accommodation and meals at Yadah Hotel as well as training.

But following a huge turnout at the National Sports Stadium last Sunday for the Zimbabwe-Liberia 2019 AFCON Qualifier match, the soccer governing body claims they incurred a loss equal to Magaya’s sponsorship.

An accounting expert who spoke to Sportbrief on condition of anonymity said the figure was supposed to be treated as  ‘Other income’ not an expense.

“It seems Zifa inflated the figures for whatever reason we might not know. A direct donation cannot be treated as an expense in the ZIFA accounts since it has already been covered and ZIFA as an organisation will not fork out a cent towards accommodation and meals expenses,” said the accountant.

According to Zifa, the gross income before expenses amounted to $115,590.16.

The income came from Yadah’s donation, gate takings and vendors (according to the records kept at ZIFA offices).

The match expenses that included but not limited to match officials’ fees, FIFA Levy, ZIFA Levy, SRC Levy and others amounted to $172,429.01.

The gross income was less than the expenditure,  leaving the institution with a negative balance of $56,838.85 instead of $738.85.

In their expenditure account, ZIFA included Warriors’ accommodation, meals and training ground as their expenses which were covered by prophet Walter Magaya and the loss ballooned to almost $57 000.

According to the Statutory Board Financial Reporting Standard Guidance Note 2, donations are treated as income.

Against this background,  ZIFA is bound not to include team’s accommodation, meals and training grounds under expenses in their income and expenditure account since Yadah had donated to the noble cause.

Note 2 of the SBFRSG  under Recognition of donations stipulates that donations whether cash or assests shall be recognised as INCOME in the period it is received.

But according to Philemon Machana, the association’s executive member responsible for finance, the loss is due to fans who gained free acces into the stadium.

“The National Athletics Association of Zimbabwe was using the same facility hence we delayed opening the gates with 2 hours.”

“This resulted in uncontrollable congestion on the gates which led to unsanctioned entry into the stadium by some supporters,” he added.

Here is the full report

ZIFA's Zim vs Liberia financial statement

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *