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We present the audit report distributed on the club’s website:
“On Wednesday the ordinary annual meeting of shareholders of KK Statyba took place in the Vilnius city municipality, which was attended by all its representatives: Adomas Bužinskas, Donatas Kazlauskas, Jordanas Kenstavičius, Darius Gudelis and Olegas Šibkovas. We provide club fans and the public with a detailed report on decisions made, audit findings and changes in management.
The budget surplus for the 2020-21 basketball season has been approved, whose expected income will amount to 3,220,000 euros and expenses – 2,840,000 euros. The difference, that is, 380,000 euros, will be used to cover debts and loans from previous seasons. Compared to the 2019-20 season, the Club’s income will increase by 180,000 Eur.
The highest revenue growth is expected from revenue from participation in the FIBA Champions League tournament and prizes for sports results in Lithuania: 470,000 euros. The income from the sale of sponsors, advertising and paraphernalia will reach 1,200,000, the financing allocated by the municipality will amount to 1,200,000 euros, and it is planned to raise 350,000 euros for the subscriptions and tickets sold. The support of loyal fans and the slight increase in subscription prices have already contributed € 137,000 to the Club’s budget this season.
Most of the expenses go to the contracts of the men’s team players: 1,190,000 euros (after tax). Compared to the budget plan for the 2019-20 season, this amount has been reduced by 310,000 euros. The other expenses of the team and fees will amount to 1,180,000 euros, it is expected to allocate 240,000 euros for the maintenance of the Youth System, 230,000 euros for the maintenance of the administration and 380 thousand euros to cover the debts. EUR.
UAB Audifina presented the audit of the annual financial statements of KK STATYBA. In the auditors’ opinion, the Club’s financial statements present reasonably, in all material aspects, on June 30 the financial situation and financial performance for the year ended on that date in accordance with the rules for accounting and preparation of financial statements of Non-profit limited liability legal entities for the valuation of assets and services received free of charge.
The entity’s income during the 2019-20 financial year amounted to € 3,020,000, of which € 1,496,000 was obtained from economic and commercial activities and received € 1,524,000 in support. The club’s expenses amounted to 3,177,000 euros. Of which the salaries of players, coaches and employees amounted to 2,215,000 euros (taxes included).
Due to the previously interrupted basketball season, the Club failed to collect the anticipated revenue from ticket sales and advertising and suffered a loss of € 156,000. Likewise, part of the commitment to fulfill advertising positions is carried over to the 2020-21 season. The Institution helped avoid significant financial losses of € 315,000 in player transfer revenue.
It was established that after June 2017. Due to the change in shareholders, the Institution’s liabilities decreased from 4,040,000 euros to 2,140,000 euros. However, without expressing an opinion, the auditors noted that the Agency could only continue its operations if it operated at a loss and ensured adequate and sufficient funding.
At the end of the accounting year, KK Statyba’s financial liabilities under loan agreements amounted to 1,064,000 euros. Although as of June 2017, the amount of loans granted to the Entity and matured amounted to 3,376,237 euros. It was held that the Institution was fully responsible and had no obligation to former club members.
It is estimated that at the end of the financial year 2020. As of June 30, 2006, the debt for the rental of the arena amounted to 498,000 euros, the current liabilities with suppliers to 578,000 euros.
In response to the findings of the financial audit, the Institution’s shareholders approved 380 thousand in the budget for the fiscal year 2020-21. EUR, of which 180 thousand euros to cover financial obligations derived from credit agreements. EUR and short-term liabilities – 200 thousand. Responsible budgetary management of the Agency will cover the responsibilities of the Agency for a period of 3 to 4 years.
Based on the findings of the WINT limited legal due diligence report, the stakeholders decided to strengthen the control of the Institution’s administration, expanded the powers of the Board of Directors and reduced the number of its members to three. The Board has been given the leverage to approve transactions for a total value of more than 50,000 euros. Adomas Bužinskas, Darius Gudelis and Olegas Šibkovas were elected to the club’s board of directors.
The stakeholders decided to establish a Club Council made up of representatives from the most active fan community, Club veterans, sponsors and partners. The Council will discuss and advise stakeholders on the development and strategy of the Organization. They will have the opportunity to express their wishes, which will be taken into account and heard. You will also have the opportunity to become better acquainted with the internal affairs of the club.
The conclusion of the auditors emphasized that the Director of the Institution acts as a person as well as a representative of the Club in the acquisition and implementation of rights and obligations, organizing the daily activities of the legal entity, entering into contracts, managing finances and organizing sports activities. of the Club. The implementation of these two functions requires different skills. In many cases, a person with a good knowledge of sports activities does not have sufficient competence to represent the Institution as a legal person.
According to the conclusions and recommendations provided by the auditors, the shareholders decided to become a Director of KK Statyba as of October 9, 2020. to appoint Justas Jankauskas. He will replace Rolandas Jarutis.
The Club has also initiated a dialogue with the management of the auditing company UAB Audifina, whose objective is to ensure not only the audit of the financial statements after the end of the year, but also the continuous control of the preparation and execution of the budget, professional consultations in matters of financial, accounting, accounting and tax management.
The club is well aware that any change at the beginning of the season is often not well received in a positive light. However, taking into account the recommendations of the specialists and the best management practices of the sports clubs of the world, there is no doubt that this morning management model will help to achieve better results, reduce the risk of errors and ensure the growth of the organization.
These changes would have already gone a long way towards avoiding a number of unpleasant situations this summer. From now on, Vilnius Rytas Club will have even more transparency, a clearer separation of all responsibilities and a wide and sincere participation of the fan community in the activities and support of the club is expected.
Donaldas Kairys, the head coach of Vilnius Rytas, also visited the club’s shareholders meeting. He presented the assembly work, the involvement of the players in the training sessions, its process, the planned stages and the objectives. Stakeholders were pleased that the coach and management, with extremely limited financial resources, were able to build a competitive team.
On the next slide, we present to the entire Vilnius Rytas basketball community the detailed financial situation of the club. Estimated costs and income. Thank you for following and supporting us. “
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