Highlanders Football Club’s Financial Turmoil Expo...

Highlanders Football Club’s Financial Turmoil Exposed at AGM

Gilbert Munetsi

Zim Now Writer

The financial instability of Highlanders Football Club took centre stage at its Annual General Meeting yesterday, as independent auditors revealed significant irregularities and management challenges in the club's financial statements.

Club treasurer Israel Moyo did not mince words about the dire situation, stating, "I'm not happy. There is a lot that needs to be balanced." His concerns were echoed in the findings of Bakertilly, the independent auditors tasked with reviewing the club's finances.

Key Areas of Concern

The audited financial statements highlighted several alarming issues:

Property, Plant, and Equipment: Valued at US$349,400, the auditors expressed doubts over the completeness and existence of these assets, citing inadequate supporting documentation.

Trade and Other Payables: The club reported liabilities amounting to US$198,495 for the year ending December 31, 2024. However, reconciliations for amounts owed to various individuals were not provided, leaving auditors unable to verify their accuracy.

"We were unable to perform any alternative procedures to test the completeness, accuracy, and valuation of the amount realised," the auditors noted, adding that they could not determine the necessary adjustments to the financial statements.

Donations and Income: Highlanders received donations totalling US$25,653 during the year, yet management failed to submit schedules verifying their valuation. Of the US$150,168 reported as income, documentation was missing for US$71,084, casting further doubt on its accuracy.

Prize Money Discrepancies: The club’s reported prize money of US$43,621 included an unresolved variance of US$21,611, raising questions about management’s accountability.

Operational and Administrative Expenses: The club spent US$883,781 on operations and administration. Auditors flagged unsupported expenses totalling US$10,956, and incomplete records from clubhouse operations made auditing these facilities impossible.

Auditor’s Observations

"As such, we could not satisfy ourselves on the accuracy of the other income or determine if any adjustments were necessary to the financial statements," the auditors stated, underscoring the lack of reliable documentation across multiple areas.

AGM Tensions and Calls for Reform

The AGM was marked by high tensions, as club members temporarily blocked Moyo from presenting unaudited financials. This move highlighted growing dissatisfaction among stakeholders and a demand for increased transparency and accountability in the club's financial practices.

In response to the auditors' findings and stakeholder concerns, Moyo proposed the formation of an internal audit committee to enhance financial oversight and management. “We need stronger systems in place to avoid these recurring issues,” he said.

The Road Ahead

Highlanders Football Club is facing one of the most challenging periods in its history. With stakeholders and supporters calling for immediate reforms, the club’s leadership must act swiftly to address the financial mismanagement and restore trust.

The AGM’s revelations underscore the urgent need for structural and operational changes to secure the future of one of the country’s most celebrated football clubs.