Shane Warne Foundation unable to explain what happened to cash donations

The Shane Warne Foundation is unable to explain what happened to large sums of cash it received from donors who attended its star-studded fundraising events over the past four years.

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Shane Warne unimpressed with Waleed Aly

The Project host Waleed Aly gets a frosty response when he asks Shane Warne about the audit of his charity. Courtesy The Project, 6.30pm weekdays on Ten

The findings of an independent audit into the charity have also cast doubt on its management and bookkeeping practices, noting that the problems meant it was possible that "fraud, error or non-compliance" had occurred but could not be detected.

A representative of the foundation did not respond to a request for comment.

Shane Warne.
Shane Warne. Photo: Robert Prezioso

The audit by firm KPMG was ordered by Consumer Affairs Victoria in late December amid concerns about the financial practices of the legendary cricketer's personal charity.

The report comes a day after Warne blasted TV presenter Waleed Aly during an interview on Channel 10's The Project, claiming the charity had "nothing to hide".


"You can all get stuffed if you want to have a go at us for it but we are very, very proud of what we have been able to achieve," Warne said.

Fairfax Media has previously revealed the foundation has been plagued by financial problems after spending a substantial amount of the money it raised just staging star-studded gala events.

The consumer watchdog has been "making inquiries" into the 11-year old charity's operations since July 2015 amid concerns about its expenses and the level of donations to beneficiaries, including the Starlight Foundation.

The audit report has found there are "limitations in the [foundation's] internal control framework" and "it is possible fraud, error or non-compliance may occur and not be detected".

KPMG noted that cash donations were a "significant source" of fundraising revenue for the charity but it could not determine if the foundation had "completely recorded" the amount of cash it had received since July 1, 2012.

"The foundation has determined that it is impracticable to establish control over the collection of cash donations prior to entry into its financial records," the report said.

"Accordingly, as the evidence available to us regarding fundraising revenue from this source was limited, our audit procedures with respect to cash donations had to be restricted to the amounts recorded in the financial records".

The report, which was produced by the same auditing firm which has been responsible for overseeing the foundation's annual reporting since 2009, also found the foundation had failed to comply with two sections of the Fundraising Act over failing to file its records on time.

KPMG also noted it could not assess the foundation's fundraising operations after July 1, 2015 because the foundation was not obligated to produce a report on this information until the end of March and it was therefore not considered by the independent audit.

Despite flagging these shortfalls, KPMG found the Shane Warne Foundation had largely complied with the law.

"In our opinion, except for the potential effects of the matters identified in the basis for qualified opinion section above, The Shane Warne Foundation has complied, in all material aspects, with the requirements [of the Fundraising Act]."

Consumer Affairs Victoria has refused to comment on the content of the report, tendered on Friday afternoon, until it has had time to assess the materials.