FijiFirst Party balance sheet insolvent

The FijiFirst Party is in balance sheet insolvency as it has a net liability position of $1.025 million and a working capital deficiency of $1.356 million while it’s current assets for the year ending 31st December 2022 is $291,891.

According to the audited accounts signed off by BDO, the FijiFirst recorded a net deficit amounting to $1.656 million for the year ended 31st December 2022.

Cash on hand and at bank balance as at 31st December 2022 was $252,761.

BDO says notwithstanding this position, the financial accounts have been prepared on a going concern basis of accounting.

It says the party has plans to raise adequate funding by way of donations after the lifting of the suspension, and settle its current overdue payable balances and meet its other commitments as and when it arises.

BDO says in the audit report submitted to the Fijian Elections Office that the FijiFirst Party is also negotiating with certain suppliers for further time for settlement of overdue balances, and the party is confident that extended time at normal commercial terms will be allowed by the suppliers.

Based on these assumptions together with support from party workers and party supporters, the Central Executive Committee and management has concluded that the going concern basis of accounting remains appropriate for the preparation of the financial accounts.

Last year, FijiFirst got $2.227 million in donations and $337,500 in funding for their parliamentary office.

The party says donations comprise money received from individuals, and there was no revenue from fundraising activities or membership registration fees.

The audit report also says there were no donations in kind for the year ended 31st December 2022.

Their total revenue was $2.565 million while their total expenditure for the general election year was $4.222 million.

The Fijian Elections Office is currently verifying the audited accounts of the political parties.