## 2.2 Financial Results 

For the financial year ended 31 March 2018, the Institute recorded a surplus of P744 059, compared to P115 884 in the previous year. Income increased from P17.39 million in the previous year to P49.79 million in the current year. The significant increase in income is attributable to increase in government grants from P17.22 million in the previous year to P49.07 million in the year under review. 

Expenditure on the other hand increased from P17.27 million in the previous year to P49.04 million in the year under review. Significant increases were noted in staff costs of P24.76 million, data management expenses of P1.09 million, motor vehicle expenses of P1.21 million, recruitment expenses of P827 498 and utilities of P692 558. 

Increase in operational expenses was mainly attributable to increase in staff complement from one (1) in the previous year to 112 in the year under review. Additionally, some of the operational expenses such as motor vehicle expenses and utilities were partly met by Government in the prior year. 

## 2.3 Working Capital 

The working capital position of the Institute as at 31 March 2018 showed current asset of P7.00 million and current liabilities of P6.14 million giving a net current assets position of P859 942. 

## 3.0 Management Letter 

The following was the significant matter raised by the auditors and the management response thereto: 

## 3.1 Ownership of Assets 

The auditors noted as in the previous year that the Institute had land and buildings valued at P230.29 million whose ownership had not yet been legally transferred to the Institute from Government. 

In response, management agreed with the auditors’ observation and stated that there was a legal vesting order from Government which mandated the ownership of assets to Botswana Geoscience Institute on inception, and was stated in the Botswana Geoscience Institute Act of 2014. The transfer is 

