## 3.0 Management Letter 

The auditors had issued a management letter and the matters raised dealt with accounting procedures and internal controls which were only of interest to management, hence did not merit mention in this report. 

## 162. Competition Authority 

The financial statements of the Competition Authority for the financial year ended 31 March 2018 were audited by Messrs Ernst and Young, Certified Auditors, who were appointed by the Competition Commission in terms of Section 23 of the Competition Act, 2009. 

## 2.0 Accounts 

## 2.1 Audit Opinion 

## In the opinions of the auditors: 

The financial statements presented fairly, in all material respects the financial position of the Competition Authority as at 31 March 2018 and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards and in the manner required by the Competition Act, 2009. 

## 2.2 Financial Results 

The financial operations of the Competition Authority showed a total comprehensive loss of P497 254 for the year under review, compared to a profit of P3.32 million recorded in the previous year Income declined by 12% from P31.99 million in the previous year to P28.23 million in the year under review mainly due to decreases in Government grants and merger fees. Expenditure was constant at P28.72 million in the year in review compared to P28.67 million in the previous year. 

The Authority is funded by Government grants, and in the year under review the grant was P26.68 million, making 95% of the total income. 

## 2.3 Working Capital 

As at 31 March 2018, the working capital position of the Authority showed current assets of P2.68 million and current liabilities of P1.93 million, resulting in a net current assets position of P747 885. 

