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The Council is funded mainly by government grants, and in the year under under review the grant was P252.52 million, representing 91% of the total income. 

## 2.3 Working Capital 

The working capital position of the Council as at 31 March 2018 showed current assets of P32.19 million and current liabilities of P49.91 million, resulting in a net current liabilities position of P17.72 million. 

The current liabilies included provisions for gratuities and leave pay of P23.32 million. 

## 3.0 Management Letter 

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

## 3.1 Submission and Payment of Pay-As-You-Earn (PAYE) 

The auditors noted, as in the previous years, that PAYE returns were on 11 instances made late as follows: 

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The Council may as a result of the late submissions incur financial losses from penalties and interest levied by BURS due to non- compliance with the Botswana Income Tax Act. 

In response management stated that in the past the Council had written to the Commissioner of Taxes to request for a waiver but instead the Commissioner advised that a nil return be submitted when the Council has financial challenges and payment be 

