Whilst Gavin Foxall was chairman Newport County football club published so called minutes of board meetings as late as January 2023 in which Mr Foxall stated that the financial position of Newport County was on target. Notwithstanding claims that the club had £300,000in the bank the true position was it seems that Newport County had in fact lost £800,000.
Nobody on the board of Newport Cointy has ever explained what happened to that money. If the money has gone shareholders and members of the Newport County need to know where that money has gone. If the money was never there then the shareholders of Newport County should be told why and for what reason they were misled.
Two prominent directors of Newport County resigned shortly before the reality of Newport County's finances became known. They being Mr Foxall and Kevin Ward.
The present board are now trying to push through passing ownership of your club to a third party. I don't know how much money trust members have put into the club since 2015. If there were only 1,000 members all paying the minimum of £10 a month that's £10,000 a month. £120,000 a year. In reality it's been much more. How much and how it was spent, indeed if it was spent, we were never told.
I don't know whether the rumours of a police investigation were true or not. My suspicion is that there was not. My contentention is that there ought to be. For that amount of money to be unaccounted for seems to me to be utterly unacceptable.
To be clear Newport is a working class town. Newportonians are the best people on God's earth. Lots of people many on limited incomes donated money they could ill afford to save and promote Newport County.
I don't know the truth of Newport County's finances. None of us do. We don't know on the one extreme whether there has been fraud. Or whether it was mere incompetence. Or whether the monies can all be accounted for and we just didn't have a sustainable model.
I there have decided to contact the Action Fraud website in the UK. They are the body which can and hopefully will investigate where there are genuine concerns. Supporters of Newport County have since 2015 put well over £1,000,000, perhaps multiples of that figure into Newport County. They/we deserve to know the truth.
Re: So where has the money gone?
2****
For using the people of Newport as an excuse to service your own narcissistic agenda.
****
For using the people of Newport as an excuse to service your own narcissistic agenda.
****
Re: So where has the money gone?
3Well he has a point. Surely it shouldn’t be beyond the wit of a good accountant and auditors to produce an explanation. All organisations handling other people’s money do so.
Re: So where has the money gone?
4Not a particularly informative response, is it? More personal attacks, so boring.
Re: So where has the money gone?
5Absolutely. A breakdown of the 4.5 million 'admin expenses' for year 20/21 season is the least Trust members deserve. Afterall other clubs can mange it, who aren't even Trust owned.lowandhard wrote: September 17th, 2023, 10:43 am Well he has a point. Surely it shouldn’t be beyond the wit of a good accountant and auditors to produce an explanation. All organisations handling other people’s money do so.
Re: So where has the money gone?
6Brendan is I believe is saying what the majority of fans also believe as the lack of communication from the board is an absolute joke.
Im fed up hearing about fans saying the board will tell us something when there is something to say.
The so called board need to rewind 12 months and start telling us the truth.
Im fed up hearing about fans saying the board will tell us something when there is something to say.
The so called board need to rewind 12 months and start telling us the truth.
Re: So where has the money gone?
7This is my understanding of the Club's financial position explained at the meeting of the 13 June 2023. It is taken from a note I took and published on FB the day after the meeting. This information was provided by in independent forensic accounting specialist in football finances, whose name I cannot recall.
The Accounts figures: The figures for 2021 were grossly overstated. The reason for this was unclear but there was no indication of 'misappropriation'. The Board was unwilling to be drawn to any extent at all on who was responsible for this but from other things mentioned it appeared to me that it arose from inadequate systems of accounts preparation, no external review from an outside external accountancy practice, limited or no internal 'testing' of the figures provided and no challenge given by the external auditors.
To my mind (note, a personal opinion but I am a retired lawyer and I hold an LLB (Hons) degree), none of these things would allow criminal charges to proceed because it would have to be shown that there was a deliberate intent to mislead (see below). In my view, it seems that it was just widespread accounting mismanagement practice. The comparative figure for 2022 showed exaggerated negative differences for the most part. The balance of money in the bank was not affected by these factors.
To my mind, the last two sentences are important here and particularly in relation to the supposed £1.2 million 'loss'. So, taking the first of these. It's a bit like you being mistakenly told by your bank in a **** up by them that at the end of June you had £10,000 in the bank. A couple of weeks later they contact you to own up and say that it was a mistake – something went wrong – and in fact you always had the £5000 that you thought you had. The reality of the situation is that you never had £10000 so it's no good saying the bank robbed you of £5k because you never had it in the first place. You might want to give the bank a rollicking or even change the bank but it doesn't alter the facts of how much money you really had.
The last sentence clearly indicates that although in my note of the meeting referred to above, the financial specialist clearly indicates that, in his opinion, there was no misappropriation, criminal or otherwise. In accordance with Section 19 of the Theft Act 1968 it would have to be shown that, in respect of the Directors, the statement made to the AFC shareholders was “...known to be false, or reckless as to whether it is true or false...”. To discharge that burden the prosecution would have to show beyond reasonable doubt that that was was done by a Director or Directors. No one knows how that might have proceeded with the police or the CPS as, as far as I am aware the matter was never put to them. However, that is not to say that the BOD may have breached Company law requirements to accurately report the financial situation or the accountants/auditors failed in their professional duty to spot it.
The Accounts figures: The figures for 2021 were grossly overstated. The reason for this was unclear but there was no indication of 'misappropriation'. The Board was unwilling to be drawn to any extent at all on who was responsible for this but from other things mentioned it appeared to me that it arose from inadequate systems of accounts preparation, no external review from an outside external accountancy practice, limited or no internal 'testing' of the figures provided and no challenge given by the external auditors.
To my mind (note, a personal opinion but I am a retired lawyer and I hold an LLB (Hons) degree), none of these things would allow criminal charges to proceed because it would have to be shown that there was a deliberate intent to mislead (see below). In my view, it seems that it was just widespread accounting mismanagement practice. The comparative figure for 2022 showed exaggerated negative differences for the most part. The balance of money in the bank was not affected by these factors.
To my mind, the last two sentences are important here and particularly in relation to the supposed £1.2 million 'loss'. So, taking the first of these. It's a bit like you being mistakenly told by your bank in a **** up by them that at the end of June you had £10,000 in the bank. A couple of weeks later they contact you to own up and say that it was a mistake – something went wrong – and in fact you always had the £5000 that you thought you had. The reality of the situation is that you never had £10000 so it's no good saying the bank robbed you of £5k because you never had it in the first place. You might want to give the bank a rollicking or even change the bank but it doesn't alter the facts of how much money you really had.
The last sentence clearly indicates that although in my note of the meeting referred to above, the financial specialist clearly indicates that, in his opinion, there was no misappropriation, criminal or otherwise. In accordance with Section 19 of the Theft Act 1968 it would have to be shown that, in respect of the Directors, the statement made to the AFC shareholders was “...known to be false, or reckless as to whether it is true or false...”. To discharge that burden the prosecution would have to show beyond reasonable doubt that that was was done by a Director or Directors. No one knows how that might have proceeded with the police or the CPS as, as far as I am aware the matter was never put to them. However, that is not to say that the BOD may have breached Company law requirements to accurately report the financial situation or the accountants/auditors failed in their professional duty to spot it.
Re: So where has the money gone?
8I’m pretty confident that you’re right in your analysis and it’s more likely to be cockup rather than any malfeasance but I still don’t understand why the relevant professionals couldn’t have produced a report explaining the situation. Nor does it explain why when the BoD saw that the situation wasn’t as rosey as predicted, they weren’t sounding the warning bells and going to the members to say that a further boost in funding may be required. It also doesn’t explain our incompetence in generating enough income through normal commercial and sponsorship methods during some relatively successful seasons.Chris Davis wrote: September 17th, 2023, 12:01 pm This is my understanding of the Club's financial position explained at the meeting of the 13 June 2023. It is taken from a note I took and published on FB the day after the meeting. This information was provided by in independent forensic accounting specialist in football finances, whose name I cannot recall.
The Accounts figures: The figures for 2021 were grossly overstated. The reason for this was unclear but there was no indication of 'misappropriation'. The Board was unwilling to be drawn to any extent at all on who was responsible for this but from other things mentioned it appeared to me that it arose from inadequate systems of accounts preparation, no external review from an outside external accountancy practice, limited or no internal 'testing' of the figures provided and no challenge given by the external auditors.
To my mind (note, a personal opinion but I am a retired lawyer and I hold an LLB (Hons) degree), none of these things would allow criminal charges to proceed because it would have to be shown that there was a deliberate intent to mislead (see below). In my view, it seems that it was just widespread accounting mismanagement practice. The comparative figure for 2022 showed exaggerated negative differences for the most part. The balance of money in the bank was not affected by these factors.
To my mind, the last two sentences are important here and particularly in relation to the supposed £1.2 million 'loss'. So, taking the first of these. It's a bit like you being mistakenly told by your bank in a **** up by them that at the end of June you had £10,000 in the bank. A couple of weeks later they contact you to own up and say that it was a mistake – something went wrong – and in fact you always had the £5000 that you thought you had. The reality of the situation is that you never had £10000 so it's no good saying the bank robbed you of £5k because you never had it in the first place. You might want to give the bank a rollicking or even change the bank but it doesn't alter the facts of how much money you really had.
The last sentence clearly indicates that although in my note of the meeting referred to above, the financial specialist clearly indicates that, in his opinion, there was no misappropriation, criminal or otherwise. In accordance with Section 19 of the Theft Act 1968 it would have to be shown that, in respect of the Directors, the statement made to the AFC shareholders was “...known to be false, or reckless as to whether it is true or false...”. To discharge that burden the prosecution would have to show beyond reasonable doubt that that was was done by a Director or Directors. No one knows how that might have proceeded with the police or the CPS as, as far as I am aware the matter was never put to them. However, that is not to say that the BOD may have breached Company law requirements to accurately report the financial situation or the accountants/auditors failed in their professional duty to spot it.
Re: So where has the money gone?
9That for me is the key issue, as at the very least the Accountants should have picked up on what is not an insignificant discrepancy. As I’ve maintained throughout I hope as a minimum discussions are being held about their professional indemnity cover.Chris Davis wrote: September 17th, 2023, 12:01 pm or the accountants/auditors failed in their professional duty to spot it.
I don’t know if any fraud is involved, but what is obvious is the way the Trust are trying to gloss over and move on from this massive change in the Club’s financial position, the question is why?
Re: So where has the money gone?
10I think for two reasons. The first, as I hope I explained, is that in 'money in the bank' terms it is just a paper loss and not "massive change in the Club’s financial position". However, it could be that in the important sense that it is a misrepresentation to the Trust members in respect of the finances of the business vehicle they own and may needlessly have placed the business (the AFC) in a more precarious financial position than it need be. I think the second is as you state yourself- they are trying to move on in an 'it is as it is" basis so lets move on.Taunton Iron Cider wrote: September 17th, 2023, 1:17 pmThat for me is the key issue, as at the very least the Accountants should have picked up on what is not an insignificant discrepancy. As I’ve maintained throughout I hope as a minimum discussions are being held about their professional indemnity cover.Chris Davis wrote: September 17th, 2023, 12:01 pm or the accountants/auditors failed in their professional duty to spot it.
I don’t know if any fraud is involved, but what is obvious is the way the Trust are trying to gloss over and move on from this massive change in the Club’s financial position, the question is why?
Re: So where has the money gone?
11First of all well done to Chris Davis for being so proactive.lowandhard wrote: September 17th, 2023, 12:31 pmI’m pretty confident that you’re right in your analysis and it’s more likely to be cockup rather than any malfeasance but I still don’t understand why the relevant professionals couldn’t have produced a report explaining the situation. Nor does it explain why when the BoD saw that the situation wasn’t as rosey as predicted, they weren’t sounding the warning bells and going to the members to say that a further boost in funding may be required. It also doesn’t explain our incompetence in generating enough income through normal commercial and sponsorship methods during some relatively successful seasons.Chris Davis wrote: September 17th, 2023, 12:01 pm This is my understanding of the Club's financial position explained at the meeting of the 13 June 2023. It is taken from a note I took and published on FB the day after the meeting. This information was provided by in independent forensic accounting specialist in football finances, whose name I cannot recall.
The Accounts figures: The figures for 2021 were grossly overstated. The reason for this was unclear but there was no indication of 'misappropriation'. The Board was unwilling to be drawn to any extent at all on who was responsible for this but from other things mentioned it appeared to me that it arose from inadequate systems of accounts preparation, no external review from an outside external accountancy practice, limited or no internal 'testing' of the figures provided and no challenge given by the external auditors.
To my mind (note, a personal opinion but I am a retired lawyer and I hold an LLB (Hons) degree), none of these things would allow criminal charges to proceed because it would have to be shown that there was a deliberate intent to mislead (see below). In my view, it seems that it was just widespread accounting mismanagement practice. The comparative figure for 2022 showed exaggerated negative differences for the most part. The balance of money in the bank was not affected by these factors.
To my mind, the last two sentences are important here and particularly in relation to the supposed £1.2 million 'loss'. So, taking the first of these. It's a bit like you being mistakenly told by your bank in a **** up by them that at the end of June you had £10,000 in the bank. A couple of weeks later they contact you to own up and say that it was a mistake – something went wrong – and in fact you always had the £5000 that you thought you had. The reality of the situation is that you never had £10000 so it's no good saying the bank robbed you of £5k because you never had it in the first place. You might want to give the bank a rollicking or even change the bank but it doesn't alter the facts of how much money you really had.
The last sentence clearly indicates that although in my note of the meeting referred to above, the financial specialist clearly indicates that, in his opinion, there was no misappropriation, criminal or otherwise. In accordance with Section 19 of the Theft Act 1968 it would have to be shown that, in respect of the Directors, the statement made to the AFC shareholders was “...known to be false, or reckless as to whether it is true or false...”. To discharge that burden the prosecution would have to show beyond reasonable doubt that that was was done by a Director or Directors. No one knows how that might have proceeded with the police or the CPS as, as far as I am aware the matter was never put to them. However, that is not to say that the BOD may have breached Company law requirements to accurately report the financial situation or the accountants/auditors failed in their professional duty to spot it.
Secondly I agree with Mike on his theory that the most likely explanation for the money's disappearence is cockup. However we don't know that and I believe that we should. Secondly cockup doesn't explain why as late as January GF, as he is termed in the minutes, was claiming that the finances were in good order. I'm afraid that the entire board either knew that they weren't or should have known that our financial position was so dire.
This excuse that they didn't know, even if true, won't wash. If I passed you a dud cheque as payment for buying your car you would be annoyed. If I then said 'sorry I didn't know that my account was devoid of funds' would you merely shrug your shoulders and say 'fair enough'. Or would you then say, 'didn't occur to you to check your bank account before driving off in my BMW?'
Anyway I shall be writing tomorrow with my concerns to the proper authorities. I will keep you informed.
Stan 'the ****' Einstein.
Re: So where has the money gone?
12Bonson&Hunt wrote: September 17th, 2023, 10:44 am Not a particularly informative response, is it? More personal attacks, so boring.
Do you think this relentless, narcissistic obsession with every minuscule detail will cease once the Trust are ousted?
How long before the drag net is cast wide and deep into the Usk once more, hoping to grab a juicy salmon to devour at the expense of all the other life in the river, which gets caught with the salmon but thrown overboard without any regard for its value to the river as a whole?
Re: So where has the money gone?
13Agreed, a Source and Application of funds statement for the financial years ended 2021 and 2022 would be a good starting pointlowandhard wrote: September 17th, 2023, 10:43 am Well he has a point. Surely it shouldn’t be beyond the wit of a good accountant and auditors to produce an explanation. All organisations handling other people’s money do so.
Re: So where has the money gone?
14When the seagulls follows the trawler it is because they think sardines will be thrown into the sea.whoareya wrote: September 17th, 2023, 1:40 pm
Not a particularly informative response, is it? More
How long before the drag net is cast wide and deep into the Usk once more, hoping to grab a juicy salmon to devour at the expense of all the other life in the river, which gets caught with the salmon but thrown overboard without any regard for its value to the river as a whole?
Wow, I thought his name was Dave but it appears Whoareya is in fact Eric Cantona. Who would have guessed?
Re: So where has the money gone?
15You see it as relentless , obsession others see it as wanting to know the truth.whoareya wrote: September 17th, 2023, 1:40 pmBonson&Hunt wrote: September 17th, 2023, 10:44 am Not a particularly informative response, is it? More personal attacks, so boring.
Do you think this relentless, narcissistic obsession with every minuscule detail will cease once the Trust are ousted?
How long before the drag net is cast wide and deep into the Usk once more, hoping to grab a juicy salmon to devour at the expense of all the other life in the river, which gets caught with the salmon but thrown overboard without any regard for its value to the river as a whole?
Seemingly a FACT that you and the other 'idiot' ( Bangitwherever ) want to gloss over and pretend that somewhere their is either gross mismanagement , misconduct or just damm right contempt for the people the TRUST need to help sustain the club but arent able or willing to say why we are where we are.
Oh F eck we are in the shite, someone has cocked up but lets get the trust members to bail out our incompetence and dont dare tell them why or how we mismanaged the money.
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