equal instalments in June 2016 and March 2017) in the previous year. 

## 2.4 Working Capital 

The working capital position of the Corporation as at 31 March 2018 showed total current assets of P1 690.20 million and total current liabilities of P509.34 million, resulting in a net current assets position of P1 180.86 million. 

The current assets included cash of P1 012.55 million, of which P794.50 million related to housing projects of Government entities. 

## 3.0 Management letter 

The following were some of the matters raised by the auditors and the management responses thereto: 

## 3.1 Internal Audit 

The auditors noted the following exceptions in respect of internal audit: 

 The internal audit function did not have a quality assessment process in place to measure itself against the Institute of Internal Auditors Standards for Professional Practice of internal audit (IPPF Standards) on a frequent basis and an external assessment of the internal audit function had not been performed since inception. 

 There was no evidence of meetings and direct communications of the internal audit manager and the audit committee chairman to further support the independence of the function, as required by the audit charter. 

In response management stated that they had not been able to implement this aspect of the internal audit charter as the internal audit department was short staffed in 2017/2018, operating with only 2 staff members. They further stated that they had adopted an informal approach whereby minutes were not taken but rather when going to a meeting each one of them went with notes on matters to be discussed. 

