Pantrinbago / Monday, November 28, 2016
/ Categories: Latest News
STRONG LEADERSHIP
Pan Trinbago established in 1971, previously known as The Trinidad Steelbandmen Association founded in 1949; was formalized by Act of Parliament No. 5 of 1986 and set out as its primary objectives to:
a) Promote the development of the steelband movement;
b) Promote the steelpan as an indigenous cultural art form; and
c) Advance and protect the welfare and interest of member steelbands.
STRATEGY
Pan Trinbago had pursued these objectives through alliances with the Government of Trinidad and Tobago (GOTT) and indirectly with corporate Trinidad and Tobago, through their sponsorship of steelbands as far back as 1963, predominantly at the Panorama competition.
EVOLUTION OF STRATEGY
The relationship with the GOTT included the provision of annual administrative assistance (i.e. subventions and occupancy costs); and advances for prizes, infrastructure and administrative costs associated with the annual Panorama competition at carnival.
However, the nature of the relationships was amended by Cabinet Note of August 1999, whereby relative to Carnival, Pan Trinbago assumed the responsibility for all Panorama competitions and the direct activities necessary to execute same. The GOTT, through the National Carnival Commission (NCC) assumed the role of facilitator and the monitoring of subventions.
Pan Trinbago consequently broadened its strategy and developed direct business partnerships with corporate Trinidad and Tobago to execute projects, not only during the carnival period, but all year, such as: Pan is Beautiful; Pan in the 21st Century/Pan Down Memory Lane; Champs In Steel; Pan Jazz; Pan in the Countryside; the operation of its drum manufacturing plant through its subsidiary - Trinidad and Tobago Pan Instruments Limited; and the manufacture and maintenance of steelpans in 118 schools in the Multi-cultural Music Programme.
FINANCIAL VIABILITY
Recently, statements have been made in the press on Pan Trinbago’s financial viability, which has significantly impacted on the organization’s corporate branding and its release of funds from the NCC. In this regard, Pan Trinbago has reserved its right to pursue the appropriate legal action to protect its brand and membership.
Diagram 1 below sets out the structure of Pan Trinbago’s accumulative liability of approximately Thirty-One Million Dollars ($31 Million) as at its financial year end of June 30th 2016.
PAN TRINBAGO’S ACCUMULATIVE LIABILITY
AS AT JUNE 30TH, 2016
Fifty-nine percent (59%) of Pan-Trinbago’s accumulative debt is based on Events to develop the sector, where often the cash inflow is mis-matched to expenses.
Approximately 72% of the funding to meet the short-fall from Events; or 60% of the debt is due from the GOTT and remained outstanding at the end of the 2016 financial year. Pan Trinbago prudently anticipated delays in funding from the GOTT; and negotiated appropriate financing lines with its Bankers and deferred other trade payables to 2017 and 2018; as it continues to execute its mandate. It is anticipated on receipt of these funds and the re-structured debt, Pan Trinbago year-end accumulated liabilities will decline by 55%.
The Auditor’s Statement supports this view in, “Note 2: Going Concern – Notwithstanding these facts, the financial statements have been prepared on the going concern basis. This basis has been deemed appropriate in view of the Organisation’s ability to continue its operation using internally generated cash flow and funding from the Ministry of Community Development, Culture and the Arts.”
GLOBAL INITIATIVE
Pan Trinbago formalized its global initiative to organize and structure the international steelpan community into a dynamic commercial industry by the establishment of the International Associations of Steelbands, assented to by national and regional associations in the United Kingdom, United States of America, Canada and the St. Vincent and the Grenadines in September 2016 and incorporated in November 2016. Thus completing the platform for commencing the commercialization of the international steelpan industry.
CONCLUSION
Pan Trinbago expresses its gratitude to its membership; its regional and executive leadership, who have affirmed their confidence in its Central Executive over the last two (2) weeks; its Bankers; Corporate Trinidad and Tobago, who sponsor its members; and its stakeholder partners who have maintained their confidence in its leadership over the years and specifically over the last few weeks.
Replies
It is unfortunate that chalk is blatantly being sold as cheese to what I choose to refer to as the intellectual human capital, the most valuable resource the organization possess. Now tell me why is the executive of Pantrinbago telling us with a straight face that, the following cause, NOTE 2, in the auditors report supports their view? The auditors are heading down the western main road towards Carenage, while Pantrinbago's statement is taking us "Pell-Mell" towards the police barracks?
"The Auditor’s Statement supports this view in, “Note 2: Going Concern – Notwithstanding these facts, the financial statements have been prepared on the going concern basis. This basis has been deemed appropriate in view of the Organisation’s ability to continue its operation using internally generated cash flow and funding from the Ministry of Community Development, Culture and the Arts.”
A strong leader holds the reins, not clutches at straws. This defensive Pantrinbago letter is just that, Diaz and his crew are clutching at straws, in light of the rumors that the NCC is going to directly take over the running of Panorama 2017, and “significant doubt” about Pan Trinbago’s ability to continue as a “going concern” in the light of a $34.5 million debt facing the organisation, according to PKF Chartered Accountants and Business Advisors in its latest independent auditors’ report of the Pantrinbago.
A strong leader ensures that his charges are the first to be paid what is due to them, before any funds are spent on luxury. A strong leader finds ways and means to put his house in order, not continuously 'spinning top in mud'.
Oswald, we heard that's Diaz HAS been putting his house in order, with ah swimming pool and other luxuries.
About a Going Concern qualification in an Audit Report.
http://www.accountingtools.com/questions-and-answers/what-is-a-goin...
Clear and concise.
Cecil: Dem cars is STALE NEWS. Nice Diaz RESET!!! Keith Diaz is like a 19 year old boy playing soccer with 10 year olds. The man is a master politician and has been running rings around all his opponents. I see him fool big big scholars from UWI.
Allyuh eh moving Diaz out with TWO NUCLEAR BOMBS courtesy of Donald Trump.
Claude, for the benefit of the readers, can you provide us with the details of what you saw when he " fool big big scholars from UWI," help enlighten us. Thanks in advance.
We are still talking about the Audi and BMW.
KEITH DIAZ: The greatest PRESIDENT in the HISTORY of STEELPAN TRINBAGO.
As a business consultant and an Accountant I am not convinced of a strong leadership proclaimed.
"Fifty-nine percent (59%) of Pan-Trinbago’s accumulative debt is based on Events to develop the sector, where often the cash inflow is mis-matched to expenses."
This spells out gross mis-management. If this happened in a company for profit, the Board of Directors would be fired immediately. Why would a company want to spend more than it could or would receive in returns. If the Events is supposed to develop the sector, why would the Events cost more than the income derived from the Events. Development means the income derived from the cost of the Events produces an accumulative profit and then the company or organization can channel such profit into the development of the sector by producing profitable Events over and over. If an Event cost one million, the income should come in at a million and a half. That half million (profit) should be placed in a fixed deposit or another investment portfolio which reaps even more on the half million. The one million part (cost of profit/sales) can then be used again to create another Event which makes more money. How many times you do this will result in the achievement of the organization's objectives listed in a, b and c above. If it is not reaping this effect then it is better not to spend on any Event that will not make a profit. management means to manage the members accumulated Assets without producing liabilities to the extent that the liabilities are far greater than the assets. This is called in the field of auditing- a "Going Concern" which is a negative report by Auditors if they have to mention it in their Audit Report. This means the Auditors are informing the Association members, through the Board of Directors/managers of the Concern, that their is a concern about the extent of the liability as against the assets of the Concern, whether it can continue as a Concern in the Going forward of the Concern.Try to understand that it is not a good report coming from the Auditors. That is a misunderstanding. The Auditors are not so much concerned that the monies will be refunded by the GOTT, but that whether the Concern will make well in the future given the present mis-management of funds to cause the Liabilities of the Concern to continue to grow further. This is called Auditing the financial statements on a going concern basis. The Auditors made this remark because in their auditing they found that the liabilities were caused by a series of mis-management of funds on hand which was badly spent by the Concern as to cause a greater Liability than the preferred result of having a big Asset base. If the Asset base was structurally far greater than the Liabililty, the Auditors will find no cause to Audit on the basis of a "Going Concern". so a Going Concern spells out that there is some doubt (a concern) whether the Concern will be able to "Go On" like that.
"Approximately 72% of the funding to meet the short-fall from Events; or 60% of the debt is due from the GOTT and remained outstanding at the end of the 2016 financial year. Pan Trinbago prudently anticipated delays in funding from the GOTT; and negotiated appropriate financing lines with its Bankers and deferred other trade payables to 2017 and 2018; as it continues to execute its mandate. It is anticipated on receipt of these funds and the re-structured debt, Pan Trinbago year-end accumulated liabilities will decline by 55%"
This statement means that you counted your eggs before it hatched. You cannot do this in any business undertaking. If you borrow money it should not be on the basis that you are going to get x amount from another party. The bank would have lent you funds based on the present Assets of the organization, not what you would receive from GOTT. They could do this as well but if the funds never comes from GOTT, the Assets would be seized by the Bank until the actual cash from some source including the GOTT actually comes in. Never spend what you don't already have. If you spend funds, the profits derived should surpass the amount spent. Not be less than it. This is the actual cause of the Going Concern. So simply by saying the management isa strong one is not convincing to those who actually know something of business deals and investments. Nothing is assured from the GOTT. It is not a surety that the required funds will come from the GOTT and with the Going Concern Report by the Auditor this makes whatever surety from the GOTT funds under assured. Somewhere the spending spree went out of hand and that is the concern by the Auditors.
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