Alan Pace - an opinion.

[kritichris]

I might also add mon ami, we do not seem to have any creditors knocking.

I'm happy.

Only investors.

[sinkov]

One more time just for you:

From Swissclaret who is a Swiss based international accountant and posted this on Clarets Mad:

“I have replaced auditors several times in my career. It was always because they did not understand the business, did not understand the transactions being undertaken, and misunderstood the risk associated with them. The worst example was auditors who wanted to treat off-balance sheet transactions as an on-balance sheet, thereby rendering the company insolvent!

With all due respect to any accountants reading this, in my experience, if they do not understand they qualify their report. An unnecessary qualification can hamper attempts to attract outside investment, part of the policy of ALK.

The account may have been moved to an audit firm with a better knowledge of the football business and financial aspects like leveraging. Their risk assessment capabilities may, therefore, be more accurate, leading to the removal of any unnecessary qualifications in the Report.”

Yes I know I've read it. Swiss says 'it MAY have been moved', for the reasons he states, but he doesn't know, it's just a possibility, it's also possible it MAY NOT have been moved for those reasons. It MAY have been moved because they didn't like the inferences the previous auditors were drawing. Or it MAY NOT, and we'll never know because they won't be telling.

[The Bedlington Terrier]

Yes I know I've read it. Swiss says 'it MAY have been moved', for the reasons he states, but he doesn't know, it's just a possibility, it's also possible it MAY NOT have been moved for those reasons. It MAY have been moved because they didn't like the inferences the previous auditors were drawing. Or it MAY NOT, and we'll never know because they won't be telling.

You have exactly the same "mind-block" on Alan Pace as I do on Ben Mee sinkov, it's illogical but it is what it is.

Vincent Kompany is not alarmed so neither am I.

Our FA Cup run and constant SKY TV match appearances are shovelling money into the kitty, VK himself said, "operating costs are running at less than income received". Stop mithering.

[The Bedlington Terrier]

The full response from untroubled Madders:

To try and put a bit of fan perspective into this EFL embargo I have provided the thoughts of a couple of unconcerned Clarets Mad posters.

From Swissclaret who is a Burnley fan and Swiss based international accountant, he posted this on Clarets Mad:

“I have replaced auditors several times in my career. It was always because they did not understand the business, did not understand the transactions being undertaken, and misunderstood the risk associated with them. The worst example was auditors who wanted to treat off-balance sheet transactions as an on-balance sheet, thereby rendering the company insolvent!

With all due respect to any accountants reading this, in my experience, if they do not understand they qualify their report. An unnecessary qualification can hamper attempts to attract outside investment, part of the policy of ALK.

The account may have been moved to an audit firm with a better knowledge of the football business and financial aspects like leveraging. Their risk assessment capabilities may, therefore, be more accurate, leading to the removal of any unnecessary qualifications in the Report.”

Hope this helps to soothe the nerves of any Burnley supporter who may be fearing the worst.

Clarets Mad

From Claret Matelot who is a Hampshire based ex-Royal Navy Burnley fan who knows a thing or two about business and he posted this on Clarets Mad:

“I have heard through 'semi-official' channels that the issue was indeed the change of the company auditors. ALK is a New York based company (although they do have a ghost office in Mayfair, London) who are established as - “Sports, Finance, Management and Investment professionals”.

The previous auditors were US based and totally familiar with the US financial systems and the take-over and investment of US located companies. They were, however, struggling with UK financial systems and the specific requirements of the EFL; so ALK decided to replace them with a UK-based set of auditors who were familiar with the UK financial and distinct EFL requirements. This caused a delay in the submission of the books as they basically had to be fully reviewed and totally re-written.”

Personally, I have now totally stopped worrying!

Last bit to calm any lingering nerves, also posted by Claret Matelot on Clarets Mad:

The 4 Championship clubs who are currently under an EFL embargo.
Reading - Breach of Profit and Sustainability Rules
Sheffield United - Regulation 52.2.3
Burnley - Regulation 16.2 and P&S Rule 2.1.3
Huddersfield Town - Regulation 16.2

16.2 - Each Club shall submit a copy of its Annual Accounts (as defined in Regulation 16.3 below) to The League, but in any event:
16.2.1 by no later than 1 March following the end of the financial year to which those Annual Accounts relate (in the case of a Championship Club); or
16.2.2 by no later than the date on which the Club is required to file its accounts at Companies House (in case of League One and League Two Clubs).
Rule 2.1.3 - its estimated profit and loss account and balance sheet for T which shall:
(a) be prepared in all material respects in a format similar to the Club’s Annual Accounts; and
(b) be based on the latest information available to the Club and be, to the best of the Club’s knowledge and belief, an accurate estimate as at the time of preparation of future financial performance; an
(c) if Rule 2.5 applies to the Club its P&S Calculation in a form approved by The League from time to time and which as at the date of these Rules is set out in Annex 1.

Now let’s all stop mithering about nowt, and get ready for a trip to Wembley. UTC#

[sinkov]

"The previous auditors were US based and totally familiar with the US financial systems and the take-over and investment of US located companies. They were, however, struggling with UK financial systems and the specific requirements of the EFL; so ALK decided to replace them with a UK-based set of auditors who were familiar with the UK financial and distinct EFL requirements. This caused a delay in the submission of the books as they basically had to be fully reviewed and totally re-written.”

Hmmm, the plot thickens. The last published accounts were for the year ending 31 July 2021. The auditor signing them off on 28th April 2022 was Mr Nicholas Stockton, Senior Statutory Auditor for Azets Audit Services, whose Head Office is in London with a local branch in Haslingden. This does not seem like a US based company to me, in fact it isn't a US based company.

A right fecking can of worms and no mistake.

[sinkov]

You have exactly the same "mind-block" on Alan Pace as I do on Ben Mee sinkov, it's illogical but it is what it is.

I have no block on Mr Pace of any sort mon ami, I simply look at the published accounts and take note of off field events. They do not fill me with confidence, once the administrative cock ups cease and a balance sheet is published showing no debt, I'll be content. Until then I reserve judgement.

[sinkov]

"The previous auditors were US based and totally familiar with the US financial systems and the take-over and investment of US located companies. They were, however, struggling with UK financial systems and the specific requirements of the EFL; so ALK decided to replace them with a UK-based set of auditors who were familiar with the UK financial and distinct EFL requirements. This caused a delay in the submission of the books as they basically had to be fully reviewed and totally re-written.”

Hmmm, the plot thickens. The last published accounts were for the year ending 31 July 2021. The auditor signing them off on 28th April 2022 was Mr Nicholas Stockton, Senior Statutory Auditor for Azets Audit Services, whose Head Office is in London with a local branch in Haslingden. This does not seem like a US based company to me, in fact it isn't a US based company.

A right fecking can of worms and no mistake.

You seem content to let this thread slip quietly beneath the waves BT, but I am curious, what's your opinion on the fact that 'semi-official' channels are putting out false and misleading information about why the club has changed auditors. I've already listed several areas of concern, and your attempt to put everyone's mind at rest has thrown up yet another one.

What say you ?

[The Bedlington Terrier]

You seem content to let this thread slip quietly beneath the waves BT, but I am curious, what's your opinion on the fact that 'semi-official' channels are putting out false and misleading information about why the club has changed auditors. I've already listed several areas of concern, and your attempt to put everyone's mind at rest has thrown up yet another one.

What say you ?

Speculation, rumour and innuendo mon ami. I have asked Alan Pace for a F2F for an article for Clarets Mad. I hope for a positive response because we are known to not be unfriendly on here.

When I get off the hospital trolley I will get back to you.

[sinkov]

Speculation, rumour and innuendo mon ami.

All my areas of concern are based on matters of fact, most of those facts, such as the identity of our previous auditors, gleaned from the club's own Annual Financial Statement, which is possibly the most concerning aspect of it all, it is most certainly not speculation, rumour and innuendo.

Best of luck with the op mon ami, keep us posted. If you do get a F2F with Mr Pace, I have a couple of questions for him, friendly questions of course, nothing contentious.