Audit report : Sri Lanka Cricket Corruptions revealed. "Cricket gamblers plunder bill
Here are some highlights of observations made in the Auditor General's Report on Sri Lanka Cricket.
= There is no corporate plan or action plan to achieve objectives or targets. Budget for the year 2011 should have been approved at least before commencement of year 2011 by the Interim Committee. It has not been approved up to now.
= A Permanent Internal Audit Unit had not been established. A Private Audit Firm had been appointed for Internal Audit activities for 2010. Letter of appointment, Terms of Reference, scope, audit programme, audit report, their remuneration etc. have not been given.
= There is no approved cadre to SLC. Assessment of cadre had been done by the Sri Lanka Institute of Development Administration (SLIDA) during 2010 at a cost of Rs 1,460,000. Discrepancies observed include (a) Accepted procedure for promotion had not been established (b) Salary structure and age limit for each post had not been included in the above recruitment, (c) it is proposed to increase the present cadre of 267 to 727 in 2013 i.e. by 172% within three years without justification for expansion of work.
= 47 employees have been recruited in 2010 and most of them were not having the basic qualification and experience relevant to their positions.
Weaknesses include overage or underage, no educational qualifications, no professional qualifications and no work experience. Some applications of those who qualify have been removed whilst shortlisting. Some applications have been accepted when they were not called for.
= Total income in 2010 (up to December 31) Rs 3,075 miillion. Total expenditure for same period 2,451. Total income in 2011 (up to April 30) Rs 382 million. Total expenditure for the same period Rs 776 million. The deficit after tax is Rs 394 million.
The Auditor General has noted that there was lack of evidence for an audit in respect of the following;
= To ensure the existence of the Assets and completeness of the accounting of the transaction (Assets), there should be a fixed assets register. Register of the fixed assets for the value of Rs 795.3 million had not been maintained and further physical verification report for last three years also not made available for audit.
= Transaction made by sub projects such as Asia Cup 2010, World Cup 2011 etc. could not be ascertained by the audit due to lack of access to particular transactions. Further audit report from independent body in this regard also not made available to audit.
= Procurement of goods aggregating to Rs 54,455,591 could not be satisfactorily vouched or ascertained by the audit due to lack of purchasing files, goods received notes, interim committee approval, agreements, specification etc..
= Eligibility and Legality of expenditure incurred from credit cards could not be ascertained due to lack of details of such expenditure to audit.
Although qualified officers had been recruited for the relevant fields, the Auditor General has said that the following work has been outsourced - 1. Preparation of salaries, bonuses, allowances, EPF and ETF. 2. Preparation of consultancy fees. 3. Tax administration, Income Tax, VAT, PAYE, ESC 4. Internal Audit.
Some of the other highlights:
= Twelve matches of the World Cup were played in Sri Lanka and 272,318 tickets to the value of Rs 96,218,150 had been printed. The value of the sold tickets received was Rs 89,347,890. Out of this Rs 67,384.490 had been received by SLC up to now. The number of complimentary tickets printed was 50,847. An approval from the Interim Committee was not made available to audit. The exclusive right over World Cup tickets was vested in the SLC but it had been done by the World Cup Office.
= A sum of Rs 14,965,000 had been paid to 133 employees of SLC as bonus for World Cup 2011 out of 267 employees of the Board. Approval from the Interim Committee for this transaction has not been made available to the audit.
= A sum of Rs 17,189,485 has been incurred as legal charges in 2010 for the case instituted against the SLC by Southern Cricket Club. (Note: The amount spent is higher than the cost of a provincial courts complex).
= Due to a violation of telecast agreement by Sri Lanka Rupavahini Corporation (SLRC), a Singapore company that was having the TV rights refused to pay US $ 1.1 million on the grounds of their reported losses. A sum of Rs 4.4 million has been spent on legal proceedings in this regard. It has not been recovered from the SLRC.
Source : Sundaytimes
Here are some highlights of observations made in the Auditor General's Report on Sri Lanka Cricket.
= There is no corporate plan or action plan to achieve objectives or targets. Budget for the year 2011 should have been approved at least before commencement of year 2011 by the Interim Committee. It has not been approved up to now.
= A Permanent Internal Audit Unit had not been established. A Private Audit Firm had been appointed for Internal Audit activities for 2010. Letter of appointment, Terms of Reference, scope, audit programme, audit report, their remuneration etc. have not been given.
= There is no approved cadre to SLC. Assessment of cadre had been done by the Sri Lanka Institute of Development Administration (SLIDA) during 2010 at a cost of Rs 1,460,000. Discrepancies observed include (a) Accepted procedure for promotion had not been established (b) Salary structure and age limit for each post had not been included in the above recruitment, (c) it is proposed to increase the present cadre of 267 to 727 in 2013 i.e. by 172% within three years without justification for expansion of work.
= 47 employees have been recruited in 2010 and most of them were not having the basic qualification and experience relevant to their positions.
Weaknesses include overage or underage, no educational qualifications, no professional qualifications and no work experience. Some applications of those who qualify have been removed whilst shortlisting. Some applications have been accepted when they were not called for.
= Total income in 2010 (up to December 31) Rs 3,075 miillion. Total expenditure for same period 2,451. Total income in 2011 (up to April 30) Rs 382 million. Total expenditure for the same period Rs 776 million. The deficit after tax is Rs 394 million.
The Auditor General has noted that there was lack of evidence for an audit in respect of the following;
= To ensure the existence of the Assets and completeness of the accounting of the transaction (Assets), there should be a fixed assets register. Register of the fixed assets for the value of Rs 795.3 million had not been maintained and further physical verification report for last three years also not made available for audit.
= Transaction made by sub projects such as Asia Cup 2010, World Cup 2011 etc. could not be ascertained by the audit due to lack of access to particular transactions. Further audit report from independent body in this regard also not made available to audit.
= Procurement of goods aggregating to Rs 54,455,591 could not be satisfactorily vouched or ascertained by the audit due to lack of purchasing files, goods received notes, interim committee approval, agreements, specification etc..
= Eligibility and Legality of expenditure incurred from credit cards could not be ascertained due to lack of details of such expenditure to audit.
Although qualified officers had been recruited for the relevant fields, the Auditor General has said that the following work has been outsourced - 1. Preparation of salaries, bonuses, allowances, EPF and ETF. 2. Preparation of consultancy fees. 3. Tax administration, Income Tax, VAT, PAYE, ESC 4. Internal Audit.
Some of the other highlights:
= Twelve matches of the World Cup were played in Sri Lanka and 272,318 tickets to the value of Rs 96,218,150 had been printed. The value of the sold tickets received was Rs 89,347,890. Out of this Rs 67,384.490 had been received by SLC up to now. The number of complimentary tickets printed was 50,847. An approval from the Interim Committee was not made available to audit. The exclusive right over World Cup tickets was vested in the SLC but it had been done by the World Cup Office.
= A sum of Rs 14,965,000 had been paid to 133 employees of SLC as bonus for World Cup 2011 out of 267 employees of the Board. Approval from the Interim Committee for this transaction has not been made available to the audit.
= A sum of Rs 17,189,485 has been incurred as legal charges in 2010 for the case instituted against the SLC by Southern Cricket Club. (Note: The amount spent is higher than the cost of a provincial courts complex).
= Due to a violation of telecast agreement by Sri Lanka Rupavahini Corporation (SLRC), a Singapore company that was having the TV rights refused to pay US $ 1.1 million on the grounds of their reported losses. A sum of Rs 4.4 million has been spent on legal proceedings in this regard. It has not been recovered from the SLRC.
Source : Sundaytimes
