NRU Shows a Remarkable Financial Turnaround

The Namibia Rugby Union has shown a remarkable financial turnaround, after it recently achieved an unqualified audit opinion with regard to its financial results for the 2012 and 2013 financial periods respectively.

According to its financial report for the year ended 31 December 2013, the NRU board and administrative staff ensured consistent adherence to the approved internal control framework by all its stakeholders and maintained adequate accounting records, resulting in an unqualified audit opinion on the financial statements.

“This is a significant achievement, especially in view of the material accounting and administrative issues that the current Board inherited from previous administrations. The Board and management of the NRU are confident that they will continue to maintain the high standards set in order to ensure a transparent governance framework and stakeholder confidence,” said NRU board member and a specialist appointee for finance, Hans Hashagen.

The financial results for the year ended 31 December 2013 showed a surplus of N$115 341 and cash and cash equivalents of N$486 117, which was an increase of N$393 000 on the previous year.

Trade receivables at year end amounted to N$281 212, which was a decrease of N$3 627 062 on the previous year, while Trade Payables at year end amounted to N$1 272 153, which was a decrease of N$3 336 611 on the previous year.

“The above financial results indicate the ability of the NRU to manage its financial commitments within the constraints of available funds this is due to strict adherence to the approved budget and sound financial decisions in general,” Hashagen said.

“The g increase in cash funds and the resulting decrease in trade receivables as well as the decrease in trade payables underlines the NRU’s ability to plan ahead and to fund all budgeted financial commitments,” Hashagen added.

The CEO of the NRU Sybrand de Beer said that the current NRU board inherited a financially troubled union two years ago but managed to turn it around.

“Two years ago the International Rugby Board (IRB) wanted to withdraw its funding to the NRU because the union was insolvent. But we managed to turn the situation around through proper financial management and control,” he said.

“We have demonstrated through the latest financial results that the administration of the NRU is based on sound financial control systems and good governance,” he added.

According to De Beer, the donation of the National Rugby Stadium to the government and a renegotiation of outstanding debts with Standard Bank, helped turn their financial position around.

“The government took ownership of the stadium, and it now pays the stadium’s maintenance, although we have full right of use, while the income generated goes to the NRU’s account,” he said.

The IRB also expressed its satisfaction, with its Head of Competitions and Performance, Mark Egan saying the NRU had made a significant improvement.

“We are obviously pleased that the NRU has received an unqualified opinion from the accountants for their 2013 financial year. It’s a significant aance from where we have come from with the NRU when financial concerns previously hampered its progress,” he said.

“It’s actually quite phenomenal what the NRU board has achieved. They have regained the trust of sponsors while their High Performance and grassroots development is also on track,” he added.

Egan said the NRU had regained the trust of the IRB.

“To go from being insolvent to posting a small cash surplus shows significant progress. The NRU is now on solid ground which gives us confidence to give full IRB funding to the NRU,” he said.

Egan said Namibia currently receives about 120 000 Pounds per year in funding from the IRB, which would increase to about 370 000 Pounds if they qualify for the 2015 Rugby World Cup. He however warned that it would not be easy.

“Namibia has a very proud history in the game and it has traditionally been the number one union in Africa. But because of it’s past problems it kind of stood still while other African unions progressed significantly. Namibia needs to be very careful going into the Africa Cup Division 1A tournament and must be under no illusions. Kenya is very g and very ambitious and gave a respectable performance in the Vodacom Cup. Zimbabwe is very g and Madagascar at home will be very difficult to beat,” he said.

Source : The Namibian