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Costly miscalculation for AFLBH

Friday, 7th March, 2014

An accounting error dating back five years has cost AFL Broken Hill more than $30,000. An accounting error dating back five years has cost AFL Broken Hill more than $30,000.

By By Ethan James

An accounting error dating back five years has cost AFL Broken Hill more than $30,000.

The figure was acknowledged at the league’s Annual General Meeting on Tuesday, where the board voted to accept the audited financials of the organisation.

The error relates to the Goods and Services Tax (GST) and is believed to have cost AFL Broken Hill a total of $35,000.

Chairman Peter Nash said it was first noticed in late 2012 when accredited accountant Louise Hunt joined the board with the goal of “tidying up the finances”.

He described it as an “honest mistake” that occurred during the transition from one software program to another.

“Basically, we weren’t taking into account the GST on our gate,” he said.

“That’s why we had to adjust from the $8 to $10 entry fee, which was something that people weren’t happy about but in the cold light of day, we didn’t have any options.

“It happened before AFL Broken Hill’s time... for some reason it wasn’t picked up.”

Mr Nash said that the league was able to pay the figure as a lump sum.

He added that Ms Hunt was able to work with auditors and the Australian Taxation Department to save the league $8,000 in fines and interest charges that were originally levied.

“We were financial enough to pay the figure and there were no hard feelings between us and the government after we describe the situation,” he said.

However, the payment has had an obvious negative impact organisation’s cash flow, meaning the league has been forced to tighten the purse strings in regards to development.  

“This repayment has reduced our cash reserves which impacts on the board’s desire to continue to budget for upgrades at the Jubilee Oval,” Mr Nash said.

“Our cash reserves are pretty thin at the moment... we need to be fairly frugal and apply for grants.

“We’ve already applied for one to have the women’s change rooms upgraded.”

In other news to come from the meeting, AFLBH said the season launch will be held on Monday, March 24 at the Democratic Club.

Guest speaker is Community Football Manager for AFL NSW/ACT Taleah Newhouse.

Board members Dayna Whitelaw and Shane Chapman were re-elected while Steve Quinn, Rod Garner, Scott Dunn and Rosalind O’Connor were re-appointed to the Competition Management Committee.

“Ms Whitelaw will continue to coordinate activities with AFL NSW/ACT... whilst Mr Chapman will assist with Umpiring related issues and Jubilee

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