The Guyana National Newspapers Limited (GNNL) registered an after-tax profit of $20.3m in 2013 but the auditors raised concerns about whether $145m in receivables were collectible.
Prime Minister Moses Nagamootoo who has responsibility for information recently disclosed that the Chronicle was owed around $76m by the Government Information Agency and along with NCN was on the verge of bankruptcy.
The audit of the company’s accounts was contracted out by the Office of the Auditor General to Maurice Solomon and Company. It issued a qualified opinion in relation to one area of the accounts.
In its report, the auditing company said that audit examinations revealed that GNNL’s administrative and editorial offices were provided with office furniture and fittings in 2010. “However supporting documentations to verify the acquisitions were not provided nor were accounted for…As of the date of our audit report, management is still in the process of undertaking an independent valuation of these assets to be included in the Statement of Financial Position”. The auditor’s report noted that this matter had been drawn to the attention of the company in previous audit reports on which no action was taken to resolve the matter. Except for this matter, the auditor said that the financial statements gave a true and fair view of the financial position of GNNL as of December 31, 2013.
Under the heading `Emphasis of Matter’ the auditor’s report then addressed the issue of receivables. It adverted to notes 4 and 5 of the financial statements which showed the company’s trade receivables and other receivables at $134.2m and $11.8m respectively for the year ended December 31, 2013. The report added that these “…recurring high levels indicate there is a degree of uncertainty to whether these debts may be collectible and may cast significant doubt about the Company’s policies and procedures of debt collection having regard to the substantial long outstanding debts due”. The report further said that this matter was previously drawn to the attention of the company in previous audit reports to no avail.
Note 12 to the financial statement said that in 2009, the National Industrial and Commercial Investments Limited (NICIL), the representative of the company’s largest shareholder, had disbursed $36m to the company to acquire a printing press. It said that in 2011, NICIL’s representative confirmed that NICIL would seek approval to convert the debt to equity in 2012. This arrangement is pending and is to be agreed upon by both parties.
Advertising income for 2013 totalled $276m while circulation income was $92.7m. The respective figures in 2012 were $260m and $91.4m.
In his chairman’s report Keith Burrowes said that during the year, the company acquired a Computer to Plate machine at a cost of $8.4m.
On the question of accounts receivable, Burrowes said that the recovery of these was an ongoing exercise. He said “A system has been implemented to ensure that outstanding balances are carefully monitored. There are some outstanding debts owed by Government Ministries and Agencies. We are pursuing to having these amounts collected. The long outstanding balances that are considered as uncollectible will be looked at with a view of having them written off”.
