• Mon. Jul 22nd, 2024

Auditor flags ‘material uncertainty’ around SECZIM ability to continue as going concern

ByETimes

Jun 26, 2024

By ETimes

HARARE – The Security and Exchange Commission of Zimbabwe’s (SECZIM) independent auditor has issued a material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern in respect of its financial statements for the financial year ended December 31, 2023 (FY2023). 

In its independent auditor’s report, Grant Thornton indicated that the material uncertainty in FY2023 was due to SECZIM’s cash flow issues and more current liabilities than current assets.

“We draw attention to note 24 of the financial statements which describes that during the year ended 31 December 2023, the Commission experienced cash flow difficulties despite recording a surplus of ZWL2 036 232 819 (2022: ZWL256 422 018).

“As at 31 December 2023, the Commission’s current liabilities exceeded its current assets by ZWL242 726 120 (2022: ZWL 168 532 067). This indicates that a material uncertainty exists that may cast significant doubt on the Commission’s ability to continue as a going concern. Our opinion is not modified in respect of this matter,” Grant Thornton stated.  

Grant Thornton highlighted that it conducted the audit in accordance with International Standards on Auditing (ISAs).

“We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion,” further reads the report.

In 2023, the commission recorded a surplus of ZWL2 billion, adjusted for inflation, as opposed to a deficit of ZWL256 million in 2022.

Spending grew by 71% to ZWL13 billion, while revenue jumped by 104% to ZWL15 billion.

A 14% increase in the securities levy to ZWL3.9 billion and a 1,543% increase in licence fees to ZWL4 billion were seen.

To strengthen the Commission’s resources, a ZWL950 million income grant was obtained throughout the year.

As a result of a 70% increase in investment property value to ZWL3.7 billion, the balance sheet saw a 57% growth to ZWL7 billion.

By ETimes

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