Friday, March 4, 2016
From Thursday night's Special PNB Meeting...
In the course of the CFO’s report to the Pacifica National Board last evening, 3 March 2016, Pacifica’s CFO, Sam Agarwal, stated that the audit now in progress formally raises ‘going concern issues’.
In audits and financial reports the formal initial assumption is that the organization can be expected to continue in operation for at least one more year without being forced into bankruptcy. If, however, the audit indicates the organization cannot be reasonably expected to survive another year without being forced into bankruptcy, the formal phrasing for audit and reporting purposes is ‘going concern issues’.
What the CFO is stating is that the auditors are prepared – indeed, are required – in their audit report to say that Pacifica cannot be expected to survive for another year without being forced into bankruptcy.
Thus the desperate scramble to come up with some measures that might make it possible for the auditors to not be required to make that statement, which is effectively a financial death notice.
As Brian Edwards-Tiekert states, there is no realistic hope or expectation that the measures thus far suggested or within the realm of possibility have any hope of accomplishing such avoidance.
Thus, in turn, the cheerful little tune with which I have taken the liberty of following the audio statements of Sam Agarwal, Pacifica Chief Financial Officer, and Brian Edwards-Tiekert, Chair of the Pacifica National Board Finance Committee.