Income increased by 14% from P83.79 million in the previous year to P95.44 million in the year under review. 

The revenue of the Council for the year under review was P83.84 million, of which P52.72 million was Government grant and P31.12 million was Human Resource Development Fund administration fees. 

## 2.3 Working Capital 

As at 31 March 2018, the working capital position of the Council showed current assets of P66.97 million and current liabilities of P33.10 million, resulting in a net current assets position of P33.87 million. 

Current liabilities included P18.46 million provisions for gratuities and leave pay and P6.39 million of unutilised grants which may be used for other Council’s operational activities upon approval by the Board. 

## 3.0 Management Letter 

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

## 3.1 Lapses in Accounting for Fixed Assets and Maintenance of the Fixed Assets Register 

The auditors noted that some assets did not have residual values, fully depreciated assets were still in use and there was a lack of clarity on how the useful lives were determined from the established range for furniture and office equipment, gym equipment, computer equipment motor vehicles. The auditors further noted some assets that were in use but not reflected in the fixed assets register and that 'residual values of assets were not reviewed annually, which was in breach of International Accounting Standard 16. 

In response management acknowledged the auditors’ finding and undertook to implement the recommendation. They further stated that some of the fully depreciated assets were assessed and identified for disposal before the end of the financial year but were only disposed of after the year end. Management further stated that the assets not reflected in the assets register were a few old assets previously identified for disposal and fully impaired in 2009/10 but were then brought back into use due to shortages and inadvertently not reinstated. 

