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A review of current financial position of the Archdiocese Samoa-Apia as at 18th June 2013, says the Archdiocese of Samoa-Apia is “insolvent”.
This statement is contained in a review prepared by public Accountant, Tupuola Oloiali’i Koki Tuala, which the Samoa Observer says was leaked to the Sunday Samoan.
In his report, Tupuola says the total current assets are estimated at $4.5 million tala, current liabilities are $12.0 million tala which places the current debt ratio at 0.375:1 or 0.38:1.
A debt ratio is a calculation used by those in the finance sector to determine how much risk is associated with an organisation or business, or in this case the Church.
“The current ratio is way below the standard acceptable level of l:l, hence the acid test assessment will most likely produce a negative ratio,” Tupuola reports.
Staff have not been paid and creditors have refused further credit arrangements for the Archdiocese
The report provides a summary of key financial indicators which were used to determine the current financial position and going concern of the Archdiocese as at June 18, 2013.
Total liabilities as at 18m June 2013 are as follows:
- Bank loans WST$9,390,799
- Bank overdraft WST$1,271,547
- Trade creditors WST$8,982,731
- VAGST payable WST$2,007,525
- Creditors paid by land WST$1,772,116
That places the Church’s total liabilities at WST23,424,718
Tupuola said “I have not audited the financial information provided for my review because of the limited time to carry out a full audit assessment.”
“Including seeking independent external confirmations of all liabilities of the Archdiocese and examine all legal documents such as loan agreements, legal contracts, terms and conditions of credit facilities and; other legal documents.
“In addition, the financial statements as at May 31, 2013 had not been completed.”
“The latest financial statements provided for my review is for the financial year as at December 31, 2011, which I received on 17th June 2013.”
In July it was announced that the church’s Finance Committee was to be chaired by Prime Minister Tuilaepa Sa’ilele Malielegaoi. and the Development Committee by Feesago Siaosi Fepulea’i.
At that time Monika Lamositele, Chief Financial Officer of the Church, said that a corporate plan was on the table.
She said that it’s now a “well laid plan” for the Church’s Corporate Plan and the chairs named above will be leading the Committees to upgrade Financial Reports within the Catholic Church.
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