The auditors noted that there are inadequate controls over loan repayments.
"A total amount of $81 592 was receipted as being loans from Silpod Agencies (Odiel Nkomo's company). The loans receipted comprised $63 252 traceable to receipt book and $18 340 traceable to journal entries," wrote the audit firm's Phillip Ndlovu.
The auditors noted that of the $81 592 only $17 612 from the total loans was receipted and traced to supporting payment vouchers.
The balance of $63 980 could not be traced to payment vouchers.
The audit firm noted that of the $17 612 traced to the payment vouchers, a total of $7 020 of supporting receipts were identified. They said the remaining balance of $10 592 could not be matched to supporting receipts.
"We therefore could not authenticate that the $74 572 we could not match to receipts or authorised documentation was used for genuine transactions that benefited the club.
"There are inadequate controls over loan repayments for us to determine that these were completely recorded.
In the final analysis the auditors' opinion was; "Because of the significance of the matters discussed in the preceding paragraph, we do not express an opinion on whether the schedule of loans, the relevant expenses originating from these loans and the repayment of these loans as being true and fair presentation of the loans during the period 1 February 2009 to 30 June 2012."
It was also established by Grant Thornton that there were no loan repayment agreements per respective lender in file to outline the terms and conditions of the loan repayments.
"There was no documented evidence on the policies in place, to adopt when determining when loan payments were to be made," they said of the alleged Silpod Agencies repayments.
A total of $77 313 was made to Nkomo's Silpod Agencies during the three-and-a-half year period.
The auditors said a total loan repayment of $59 775 was identified to have been authorised by the chairman during that time who was Themba Ndlela.
During the material time of the investigations it was established that $10 870 was not authorised at all to be paid to Silpod Agencies.
Another fact established was that $57 368 was not referenced to show which particular loan was being serviced.
"The loan repayment vouchers were 'closed/stamped' to show payments had been made which they said ran a risk of duplication of payment vouchers. Loan account statements per respective lenders are not prepared on a monthly basis."
The chartered accountants said the creditors' correspondence files were not prepared for individual lenders which could have been used to record loans receipted, reconciliation statements, letters of acknowledgement forms for loans receipted, vouchers prepared with supporting invoices to detail uses of the receipted loans.
Sources within the board said that they were also disturbed that withdrawals worth almost $14 000 were made during the off-season when there was no gate revenue coming into the club in the form of gatetakings. They said fears were that money from one of the club's sponsors could have been diverted without the executive and board approval amid disclosure by some of the junior players that $20 000 that was said to have been for their signing on fees was never paid.
A majority of them were promised $500 for their commitment to the club for five years.
The investigations also exposed that former chairman Themba Ndlela had loaned the club $17 970 and R21 300 which was receipted in the book by the club.
A total of $14 478 was recorded as a variance between receipted loans in ledger.
Only $1 500 worth of payment vouchers was traced to the club payroll.
Total loan repayments to Ndlela's company Silk Floss amounting to $2 800 were traced to ledger schedules.
Bosso's finances came under scrutiny in July after the treasurer Odiel Nkomo paid himself $6 600 from the Dynamos' match gatetakings. The club executive was not happy with that and referred the matter to the board as they had not been consulted when Nkomo paid himself the money which was said to be part of what the club owed him.
A resolution was made this year that all club payments had to be approved by the executive committee so Nkomo by paying himself without the committee approval had violated this resolution.
When asked to comment yesterday the spokesperson on the issue who is also board chairman, Dumisani Sandi said they were not yet ready.
"The club's position is that all board members would have to affix their signatures on the report before we can give you our response," he said
By Sbue
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