Highlanders FC Financials Finally Out, As the Club Gets ZWL 383 From TV Rights

Highlanders FC Financials Finally Out, As the Club Gets ZWL 383 From TV Rights

By Muziwethu Hadebe

@ Highlanders Sports Club

HIGHLANDERS FOOTBALL CLUB received yet another Qualified Audit Opinion as its revenue declined in the year ended 31 December 2019.

This was disclosed at the club’s extended AGM on Saturday as inflation adjusted financial statement was presented to its 40 members present on Sunday.

The auditors PNA Chartered Accountants cited two key risky items that contributed to the qualified opinion namely the International Accounting Standard (IAS) 16- Property and Equipment as well as the completeness of Revenue.

On the IAS the auditors said the entity (Highlanders FC) failed to separate between the land and buildings which results in the depreciation of the buildings separately from the land in accordance with IAS 16. The non-separation of the two tends not to give a true picture of the assets that the club is sitting on.

Completeness of Revenue was further broken down into three risky components areas which were picked by the auditors as follows;

  1. That the Football Club has no controls in place to ensure that all income received through donations was accounted for. The auditors said they could not obtain sufficient appropriate evidence on the completeness of donation income. Highlanders FC have always maintained that some of its donors prefer to remain unknown making the process difficult.
  2. That the Football Club hired its bus during the course of the year to ZIFA yet there was no hire agreement and other controls around the bus hire posing a huge risk to the club as the exact revenue of the bus hire could not be confirmed with agreed documentation, although in its financial statement the club says it received $ 6 815.00 recorded as other income.
  3. That there is uncertainty in the football club’s status as a going concern with the clubs current liabilities exceeding its current assets by ZWL 593 838 and having a cumulative deficit of ZWL 415 720.

Despite the going concern challenge the audit firm noted that the management had put in place measures to settle the debit taking advantage of the change in currency from the USD to ZWL, the inflationary environment as well as securing sponsorship with Net one up to 2021.

The Financial statement showed Bosso’s total revenue decline from $ 6 887 516 to $ 6 601 103 in the year ended 31 December 2019.

Sponsorship was the top revenue earner once more realising $ 2 435 871. The figure comprised of Net One $ 2 201 172, Nyaradzo $ 234 316 and ZBC TV RIGHTS $ 383, a decline from the inflation adjusted figure of $ 13 616 in the previous year. Nyaradzo pays either 10% or 15% for every policy sold through the club depending on where the policy is sold.

Gate takings continue to support Highlanders FC stability realising $ 1 616 124 and coming as the second highest revenue earner. This was a rise from $ 1 008 469 in 2018, with the Dynamos match once more earning the club the most with a figure of $ 258 710 and in the process contributing 16% of the club’s gate takings including cup matches.

Club House sales contributed $ 1 460 734, a rise from the $ 954 095 realised in the last financial year. Prize Money dropped to $ 721 705 from last year’s $ 862 122, Chibuku super Cup was the highest with $ 325 238.

Highlanders FC continued to struggle on the sale of players revenue realising an inflation adjusted amount of $ 13 018 for the sale of goalkeeper Nedrick Mandeya to Talen Vision.

In the previous year the club did not sell any player while sale of Merchandise realised only $ 7 196 in the absence of replica jerseys and appropriate merchandise for the club.

The Bosso leadership has a huge task of moving away from the traditional revenue streams as it attempts to clear its debit and operate at a profit. The financial statement was presented in ZWL and was inflationary adjusted.

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