Loss in accounts reflects investment in Clubs – Antoine Portelli

Saturday, July 23, 2011, 11:48

by Catherine Micallef

MFA's accounts in review at the MFA AGM

The Total Income and Expenditure Account for the year ending 31st May 2011 confirmed an income of €4,376,603, an expenditure of €3,524,170 including €2,857,004 in direct operating and administrative costs and a depreciation of €667,166. The Net investment in member Clubs’ infrastructural facilities was that of €3,278,648

Amongst others, the total Income in the Administration sector was that of €2,614,618 and included €29,576 from local matches, €1,205,000 from the UEFA Hat Trick Annual Solidarity.

The total expenditure with regards the Administration of the MFA was that of €1,042,984 and included amongst others €333,289 in salaries, €86,204 in MFA officials’ allowances, €142,714 in Referees’ fees, €73, 709 in water and electricity.

The total Expenditure regarding the Sports facilities was that of €542,991and included amongst others €228,389 in wages and personnel expenses and €180,105 in facilities maintenance.

The National Teams, Youth and Grassroots Development Expenditure generated a total income of €1,258,449, amongst which €1,100,851 were from International matches. The expenditure in this sector was that of €1,271,029.

In an introduction note attached to the Abbreviated Anual report and accounts it was stated that the Executive Committee of the MFA prepares financial statements for each year which give a true and fair view of the affairs of the association as at the end of the year and of the MFA’s income and expenditure for the year. In preparing the financial statements, which are drawn up in accordance with the International Financial Reporting Standards as adopted by the EU, the Executive Committee should select suitable accounting policies and apply them consistently, make judgements and estimates that are reasonable and prudent and prepare the financial statements on a going concern basis.

According to Vincent Curmi & Associates (same auditors that Dr. Joe Mifsud used to work with) in their Independent Auditor’s report to the members of the MFA, it was firstly stated that the financial statements presented give a true and fair view of the financial position of the MFA as at 31st May 2011 and of its financial performance and its cash flows.  Also, the financial statements have been properly prepared in accordance with the statute of the Association.

Official explanation of MFA’s accounts:

The Treasurer of the Malta Football Association gave a presentation explaining in detail the Financial Statements for the year ending 31.5.11.

Portelli explained that during last season the Association distributed directly or indirectly the sum of €503,000 to the clubs. Portelli went on to explain that this was the result of the gate money which is 100% now distributed to the clubs and also to various expenses previously paid by clubs such as referees and venue costs which are now fully financed by the MFA. If these distributions are eliminated (money directly or indirectly to Clubs) the Assocaition would have made a profit of €1.355 Million  or €100,000 more than last year.

Antoine Portelli explained in detail the “accounting loss” for this year and stated that this is solely due to the large investment in clubs’ infrastructure which for the last 12 months amounted to €3.3 million, which is more than what was invested in the preceding 2 years altogether .   The Treasurer of the MFA stated that he partly disagreed with the fact that this investment was put in the income and expenditure report in one year, however he explained : “We could have easily avoided this so called loss by postponing investment until UEFA funds are received, but we (the administration) didn’t want to waste time and went on with these investments because that is what we promised”

The treasurer  gave details of the achievements of the finance department  and also of the future plans. The ex-Msida Club man explained that the new health insurance for the National Teams will cover all National teams and not only national team A and under 21 , in addition players will be covered also whilst playing and training with their respective clubs.

“We believe that each National team player is an Asset also of the association , so we have the duty to ensure his/her well being and ensure the best treatment”

The treasurer also gave details of the new ticketing system which he described as a “Culture change”, he explained that this will reduce abuse .

The treasurer ended his presentation by giving assurances to all that the MFA ‘s finances are sound and guaranteed by UEFA , Portelli stated:

“The banks would have never sanctioned our new facilities and the auditors would definitely not give us a clean audit report, so rest assured the MFA is financially strong as before, we have just chosen to reduce our profits to give more to the Clubs”





3 Comments

  1. victor attard says:

    vera kas limissejna l-fond…. qedghin f’sitwazzjoni fejn fi zmien joe mifsud kien qisu mintoff izomm il-flus fil-kaxxa ta malta / mfa u issa qd inroxxu….. 13 il-miljum loan u l-bov tawamlohm issa qed jajdu li em garanzija mill-uefa u l-fifa li gejjin il-flus, mhux ahjar il-flus li jigu jitqassmu lil min vera andu bzonnhom.

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  2. osservatur says:

    Il-weghdi jiswew il-flus hija

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  3. P Sanr says:

    The most impressive thing is the exorbitant salaries the MFA is paying: €333,289 in salaries, €86,204 in MFA officials’ allowances, another €228,389 in wages and personnel expenses, TOTAL €647,882. When one considers that ALL the clubs between them do not spend 1/10th of this figure paid to administrators, this is indeed absurd and ridiculous. Wonder how much the MFA President (who is there on a part-time basis unlike his predecessor) is earning – did he receive a stipend cut? Would also love to compare these figures with previous year figures… come on Sandro you are he best sports investigative journalist, give us more info…

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