Senior Female Professionals president, Emmett Stages Glassco, has launched a scathing attack on the integrity and credibility of the Liberian Institute of Certified Public Accountants (LICPA).
Glassco is concerned about LICPA’s delay in releasing its findings from an investigation against Gedei and Associates, a firm which audited the Liberia Football Association (LFA) for 2022, after his complaint of auditing malpractice on June 2, 2023.
According to Glassco, after LFA audit process by Gedei and Associates, a difference of US$372,412 (US$5,587,425minus US$5,215,040) was observed in the income revealed by the audit report the LFA responded to after acknowledgement of the complaint, and explained that the difference was a result of two figures: a loan from the Federation of International Football Associations (FIFA) in the tune of US$319,045 and US$56,866, which was the Orange sponsorship package (cash awards to teams).
“We were further informed that the loan and sponsorship were captured as part of the total cash income in the budget, while the audited financial statements revealed that the loan was carried as borrowings and the auditor inadvertently did not include the sponsorship amount as part of the total income in the audited financial statements,” he said.
Glassco added that there was also a difference in the expenditure of US$319,040 between the actual budgeted expenditure and the audited financial statement expenditure.
He explained that the LFA, in their response, agreed that the amount in question was the expenditure from the loan taken from FIFA.
“We wonder how come the LFA expended this huge amount and the auditor could not recognize this expenditure, especially if the expenditure was carried out through the institution’s bank account. We are mostly concerned about this loan,” Glassco maintained.
He asserted that the audited financial statement also shows an amount of US$697,338 as current liabilities. “Besides the loan which we just got information about through the media from former Secretary General, Isaac Montgomery, we aren’t aware of the rest of the amount in the current liabilities.”
Emmet Stages Glassco revealed that a request was made to the LFA to know who the FA owed, and was told by the LFA that the information was provided to the auditor and that it was the responsibility of the auditor to disclose the information to other parties, which were accordingly correct as per the disclosure requirement of the International Financial Reporting Standards (IFRS).
He later reportedly wrote the Director of LICPA with the intention to follow the alleged discrepancies to the donor of the fund (FIFA) seeking the firm’s intervention before making reports to members of the football federation.
In response, LICPA Executive Director, Hector J. Wuor, acknowledged receipt of Glassco’s complaint.
Wuor replied to Glassco on June 26, 2023 in the message below:
“Kindly be informed that we have forwarded the complaint to our ethics and disciplinary committee for investigation. We shall get back to you subsequently upon their response. Thanks for the understanding and cooperation.”
Since the filing of the complaints of Gedei for their investigation to LICPA, Glassco said it is now eight months and there have been no findings, which prompted him to question their integrity.
“LICPA is one of the few institutions we should be looking up to when it comes to integrity, but I have all reasons now to question their credibility. How long does LICPA need to look into our investigation after allegation of auditing malpractices by one of its members? How can you go audit the LFA but you fail to provide vital information?” he questioned.
