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 A difference of P1.44 million was noted on the opening balance between the fixed assets register and prior year audited financial statements. 

 There was a monthly amortisation of fully impaired intangible assets resulting in an over charge of P249 000 and an incorrect amortisation method was used. 

 Leave provision made excluded temporary employees entitled to leave days. This resulted in an under provision of P197 000. 

In response management committed to reviewing the procedures to ensure improvement of the processes. 

## 3.2 Use of Credit Cards 

The auditors observed that during the year the organisation obtained five (5) credit cards each with a limit of P250 000, effectively creating a P1.25 million credit facility. In accordance with the Credit Card Guideline 7 (i) “credit cards must never be used to purchase items for personal use or for non-work related purpose even if the card-holder intends to reimburse the organisation”. The auditors, however, noted instances of personal use of the credit cards. While an attempt was made to recover these funds, reimbursements by the respective employees were not timely as shown below: 

<img src='content_image/450036.jpg'>

## *Employee resigned June 2018 

The auditors pointed out that high credit card limit may give leeway to excessive spending and contravention of the procurement policy and thresholds as well as loss of organisation’s funds should employees default on payment or where amounts are not recovered. 

In response management stated that they would act appropriately to ensure proper controls. 

