GBC records GH¢12m deficit, can’t meet short-term financial obligations – A-G's report reveals

The audited financial statements of the Ghana Broadcasting Corporation (GBC) for the five years ending 31 December 2018 have revealed that the state-owned broadcaster’s operations for the year under review recorded a deficit of GH¢12,613,646 as against a deficit of GH¢11,830,541 in 2017, representing 6.6% increase in deficit, according to the 2021 report of the Auditor-General.

It said the total income of the Corporation appreciated by 5.3% from GH¢62,622,893 in 2017 to GH¢65,916,410 in in 2017 to GH¢65,916,410 in 2018.

The rise in the total income was largely due to increase in government subvention by 10.5% or GH¢4,186,938.

Also, total expenditure increased by 5.5% from GH¢74,453,434 in 2017 to GH¢78,530,056 in 2018.

The increase was primarily due to rise in personnel cost from GH¢43,151,102 in 2017 to GH¢45,974,541 in the year under review representing 6.5% or GH¢2,823,439, the report explained.

Meanwhile, the Corporation’s non-current assets decreased by 5.9% or GH¢3,311,452 from GH¢56,230,173 in 2017 to GH¢52,918,721 in 2018.

This was mainly due to the depreciation charge for 2018 amounting to GH¢3,662,162.

Current assets also went down by 17.2% from GH¢22,554,196 to GH¢18,684,256 in 2017 and 2018, respectively.

The decline was principally due to GH¢3,164,970 fall in trade debtors from GH¢17,688,487 in 2017 to GH¢14,523,517 in 2018.

Current liabilities increased by 9.9% from GH¢54,899,017 in 2017 to GH¢60,331,272 in 2018.

The increase was due to a GH¢5,509,446 rise in trade and other payables.

The current ratio of (0.4:1) in 2017 further deteriorated in the current year to (0.3:1).

This shows the Corporation’s inability to meet its short-term financial obligations as and when they fall due, the report noted.

Source: Classfmonline.com