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NBA 2018-2019 Q1 Financial Statement

12 December 2018

1. In keeping with our commitment to transparency and accountability in the management of the NBA’s finances, we are delighted to publish hereby and with this Statement the NBA 2018/2019 Quarter 1 Financial Statement(“FS”) covering the period August to October 2018. The Q1 FS was earlier presented to the National Executive Committee (“NEC”) at its meeting that was held on 06 December 2018 and was adopted and duly approved by NEC.

3 Similar to what we did in respect of the Financial Statement as at 31 August 2018, perhaps I need to highlight a few areas in the 2018/2019 Q1 FS for the benefit of our Members, viz:

i. The FS shows Cash and Cash equivalent [1] position of N80,673,190.00(see page 2 of the FS) as at 31 October2018, the breakdown of which is provided in Note 5 to the FS at page 6 thereof. Note 5 shows that most of the Cash were in dedicated accounts (e.g. MacArthur Foundation Accounts, Stamp and Seal Account, the Foreign Currency Accounts)the proceeds of which ought not be used for NBA operational activities. The NBA Admin Account which is the NBA’s main operational account had a closing/credit balance of N3,710,601.00 as at the end of the said Quarter and this was after we had paid off the N50,000,000.00 facility that was taken to support the AGC. To pay off the overdraft, there was a mop-up of all NBA’s accounts with Access Bank and an approximated sum of N38,000,000.00 was swept into the OD designated bank account between 24-28 September 2018.

ii. On the liabilities side, the Total Current Liabilities, as at 31 October 2018, according to the FS, was N413,772,343.00 – see page 2 of the FS. In contemplating this amount, we must draw Members attention to the Caveat that is entered at page 1 of the FS whereat PwC expressly forewarns the NBA of the possibility of a restatement or adjustment of this figure based on fresh information and data which may be unearthed sequel to the preparation of this Financial Statement. In my discussions with PwC, any such Restatement or Adjustment would be reflected in the Q2 2018/2019 Financial Statement which would cover the period November 2018 to January 2019. The details of the Current Liabilities are set out in Note 6 at page 7 of the FS. Suffice to state that almost all the liabilities were incurred in M1 of the Quarter i.e. August 2018 prior to the inauguration of the current administration. 65% of these liabilities arose from AGC-related expenses.

iii. The Statement of Comprehensive Income which is a component of the FSshows that the NBA had a total income of N544,574,309.00as at Q1 ending (see page 3 of the FS). Notes 7 and 8 to the FS at pages 7 and 8 thereof provide the breakdown of this income and show that the bulk of the income – N499,661,338.00 – accrued from AGC activities with registration fees being the highest contributor – see also the Narrative in the Appendix at page 15 of the FS.

iv. The Statement of Comprehensive Income also shows that the NBA’s Total Expenditure for Q1 2018/2019 was N910,520,112.00 and we had a Finance Cost [2] of N500,000.00 (see page 3 of the FS). The details of the expenditure are set out in Notes 9 and 10 at pages 8 to11 of the FS. The highest spend during the quarter was on items related to the AGC that was held in August. The Association incurred an approximated sum of N669,181,688.00 on the AGC– see Note 9 under the line item “Unrestricted program expenses” and see the breakdown of these expenses in Notes 9a and 9a (i). When these two heads of cost (i.e. the Expenditure and the Finance Cost) are tallied (N911,020,112.00) and matched against the NBA’s Gross Income for the Quarter (i.e. N544,574,308.00), the NBA recorded a Deficit of N366,445,804.00 in Q1, as shown in the Comprehensive Income Statement (see page 3 of the FS). Again, I must highlight the earlier caveat by PwC to the effect that fresh information and data may result in the restatement and/or adjustment of this figure in our Q2 2018/2019 FS.

5. With the preparation and publication of this Q1 Financial Statement, we have taken one more step towards institutionalizing the basic principles of governance, transparency and accountability in the NBA body politic there by promoting efficiency and transparent conduct in our affairs and also earning the respect and admiration, not only of our Members but of our global audience.As we mentioned in our Release on the 31 August 2018 FS, “it is our hope that the consistent 2-year practice of what we have just begun– and by God’s Grace, will maintain – would inculcate these practices into the NBA DNA and make them irreversible by succeeding NBA administrations”.

[1] “Cash equivalent” refers to instruments and holdings such as stocks and similar investment instruments that could easily be converted into cash. NBA as at 31 August 2018 however had no such cash equivalent as Note 5 to the FS bears out; what we had were only cash balances in Bank accounts.

[2]NBA took an overdraft facility in August 2018 and the cost of that facility is what is referred to as “Finance Cost”.


Paul Usoro, SAN
PRESIDENT



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