Friday, March 23, 2012

Rather late in the day


My overall conclusion is that controls over sponsorship-related income and expenditure for the 2011 British Championships were wholly inadequate …

The ECF President submitted an invoice for £12,600 in respect of sponsorship expenses paid directly by him. No documentation was provided with this invoice to support this invoice, nor was the invoice reviewed and countersigned by another ECF director. Nonetheless the invoice was paid without question. As well as the wholly inadequate financial governance over this transaction, the invoice was submitted without any VAT. Consequently the ECF has not had the opportunity to reclaim from HMRC any of the VAT that might have attached to any supporting documentation (for example hotel bills). Although it is now rather late in the day, I recommend that the requisite supporting documentation be provided if available both to provide an adequate audit trail and to enable VAT to be reclaimed if appropriate.

It’s nigh on six months since concerns around the funding of Sheffield 2011 and the ECF President’s lackadaisical approach to accounting led to questions being raised at the AGM. Although it is now rather late in the day, I wonder whether those who believed that English chess shouldn’t look a gift-horse in the mouth might now be asked if they've changed their minds.

… failure to draw a clear line between sponsorship arrangements that are managed and accounted for by the ECF and sponsorship arranged on a private basis with which the ECF has no involvement.
Report of the Chairman of the ECF Finance Committee, March 2012

The ECF President fails to distinguish between private activity and his public position; the ECF fails to notice.
S&B Chess Blog, July 2010

1 comment:

ejh said...

I wrote on the English Chess Forum:

I was wondering whether CJ has been asked for a breakdown of the "sponsorship expenses paid directly by him" for which "no documentation was provided".

No answer has been provided there: some kind of answer really ought to be forthcoming. It is essentially the same question as that made in the report and quoted above:

I recommend that the requisite supporting documentation be provided.