## 3.2 Corporate Governance 

The auditors noted that the executive board members were reporting directly to the Board hence by-passing the Chief Executive Officer, which was not consistent with good corporate governance. Good corporate governance requires for all employees including executive board members to report to the Chief Executive Officer. 

In response management stated that they had engaged the Ministry to review the Act with the view to correcting the anomaly. 

## 131. Botswana Examinations Council 

The financial statements of Botswana Examinations Council for the financial year ended 31 March 2018 were audited by Messrs KPMG, Certified Auditors, who were appointed by the Council in terms of Section 20 (2) of the Botswana Examinations Council Act, (Cap 58:03). 

## 2.0 Accounts 

## 2.1 Audit Opinion 

## In the opinion of the auditors: 

The financial statements presented fairly, in all material respects, the financial position of Botswana Examinations Council as at 31 March 2018, and its financial performance and its cash flows for the year then ended in accordance with the International Financial Reporting Standards. 

## 2.2 Financial Results 

In the year under review, the Council recorded a deficit of P3.45 million, compared to P6.16 million in the previous year. The main contributors to the reduction in deficit are direct costs which reduced from P146 million in the previous year to P137.81 million in the year under review and other income which increased from P5.19 million in the previous year to P8.78 million in the year under review. 

Income increased from P275.16 million in the previous year to P276.90 million in the year under review while on the other hand expenditure decreased from P281.32 million in the previous year to P280.34 million during the year under review. 

