The management of UTG appeared before FPAC yesterday Thursday to present their 2019/2020 activity and financial statements.
Going by the audit’s adverse opinion on the UTG 2019 financial statement, FPAC said that because of the significance of the matters presented on the basis for adverse opinion sections of its report, the UTG’s financial position was not fairly presented.
“The financial statements do not present fairly the financial position of the UTG as of 31st December 2019 and of its financial performance and its cash flows for the year then ended in accordance with the general accepted accounting principles and in the manner required by the Company’s Act 2019 and the Tertiary and Education Act 2016,” stated the Committee.
The report, FPAC stated, revealed that on basis for adverse opinion on cash and bank, “the university reported a cash balance of D44.5 million and overdrawn balance of 16.6 million as detailed in note 17 of the financial statements. From our audit test on cash and bank balance, we noted long reconciling items in the bank reconciliations items amounting to D28.1 million that were not cleared or adequately supported.”
The committee added: “We were unable to confirm the completeness and valuation of cash balances. If these reconciling items and differences are adjusted, it is likely to affect various other account balances in the financial statement.”
They also said note two of the financial statements “records tuition fees of D254.1 million”.
“During our audit test, we noticed a difference of D45.9 million in the balance recorded in the general ledger, and the difference was not reconciled or supported by management.”
“Included in note 13 of the financial statements is students’ debtor amounting to D72.5 million at the year end,” they said, adding: “We accounted limitation in testing the account balance as the breakdown was not provided for our review without relevant and sufficient evidence from management. We were unable to test the existence and valuation of this account balance. We also noted that the impairment was not recognised on irrecoverable students’ retrievable balances.”
They further disclosed that “trade and other payable note 14 of these financial statements relates to total trade and other valuables with a closing balance of D145.5 million and includes a balance of D65.4 million, D14 million and D58.1 million relating to suspense account students accrual and deferred income respectively.
“We were not provided with appropriate supporting evidence for suspense accounts students balance of D65.5 million. Without relevant evidence from the management we were unable to ascertain the completeness and evaluation of account balance.”
The committee went on: “We were unable and also not provided with accrual schedule amount of 14 million and there were not alternative audit procedures we should adopt.
“Furthermore, we were not provided with appropriate supporting document for deferred income with a balance of 58.1 million, and without sufficient evidence from the management, we were unable to ascertain the completeness and evaluation of this account balance. These resulted in limiting ascertaining the completeness and valuation of payable balances in the financial statement.”
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