Members want NOC audit reports re-examined
Over a one-third of the membership of the National Olympic Committee of Sri Lanka (NOCSL) have collectively made a request through a letter to the Auditor General (AG), urging a ‘more detailed inspection’ on audits of accounts for seven years, since 2010. The four-page letter goes on to say that accounts for seven years of 2010, 2011, 2012, 2013, 2014, 2015 and 2016 have not been submitted for audit in due time by the NOCSL administration of the time, willingly or by accident.
“This was not done on time, thus not facilitating the NOCSL membership from properly examining the accounts for comments and queries at the Special General Meeting (SGM) held on February 23, 2018,” the letter states.
The letter details that the first batch of Audited Accounts for the years 2010, 2011 and 2012 were circulated to the membership three weeks prior the ‘elective’ Special General Meeting and the reports of 2013, 2014, 2015 and 2016 were circulated to the membership just a week before the February 23 SGM.
“We have no doubt, the AG’s office would also have found this to be not in keeping with the expected norms, or in keeping with the statutory provisions of the NOCSL, or that of the Olympic Charter, which governs all NOCs affiliated to the International Olympic Committee.”
“Yet, despite these blatant delays in submission of the accounts in due time and thereby violating the statutory provisions of the NOCSL and Sri Lanka Accounting Standards, no specific mention has been made of this anomalous situation in the audit reports,” the letter explains.
The letter outlines of ‘grave instances of violation of the country’s Sports Regulations, Sri Lanka Accounting Standards and the Constitution of the NOCSL’, while mentioning on discrepancies that have taken place in detail.
“Ideally, each year’s accounts should have had a qualified statement from the audit to this effect. As the membership did not have sufficient time to scrutinise the accounts pertaining to the seven previous years submitted in bulk, the SGM held on February 23, 2018 decided that any queries to be raised by the membership, shall be examined by a special panel to be appointed by the Executive Committee of the NOCSL and the findings thereon shall be presented to a SGM that will be convened specifically for the said purpose,” the letter further states.
Given the many issues that are being raised in relation to the Audited Accounts, the signatories, comprising one-third of the NOCSL membership have sought opinions of an expertise to outline their detailed examination on the reports, bringing them to the notice of the Auditor General for further examination.
“The Audit Reports for 2010, 2011 and 2012 have specifically analysed and reported on Accounting Deficiencies and Financial Improprieties, Operational Deficiencies, Management Deficiencies, Uneconomic Transactions, Human Resource Management, Accountability and Governance, Systems Controls, Non Compliance with Rules, Regulations and Management Decisions and Transactions of a Contentious Nature. However, the same manner of reporting has not been followed in respect of the years 2013, 2014, 2015 and 2016, although similar issues may have continued during the said aforementioned years.”
According to one of the signatories, the letter was handed over to the Auditor General the third week of May and the AG has pledged his fullest cooperation to seriously examine the observations brought up. In conclusion, an attachment to the letter states; “Based on the observations made in the review of the audited financial statements for the last seven years, and the reasons quoted by the AG for expressing qualified opinions on such financial statements, particularly the system lapses stated therein, it is recommended to carry out a detailed investigation in to selected areas as NOCSL is an organisation with international and public interest”.