## 2.2 Financial Results 

The Authority recorded a profit of P7.47 million before a revaluation loss on property, plant and equipment of P13.62 million in the year under review, compared to a loss of P3.60 million in the previous year. 

Expenditure increased by P12.66 miilion (16%) from P79.43 million in the previous year to P92.09 million in the year under review; while income, on the other hand, increased by P23.74 million (31%) from P75.82 million to P99.56 million during the same period. 

## The main sources of income for the year were: 

 Government subvention of P56.80 million which had increased from P35.98 million in the previous year. 

 Contribution from Human Resource Development Fund of P31.12 million, being 10% of the Fund revenue to support quality assurance activities. 

 Registration fees of P8.56 million. 

 Ministry of Tertiary Education, Research, Science and Technology of P2.76 million. 

## 2.3 Working Capital 

As at 31 March 2018, the working capital position of the Authority showed current assets of P60.61 million and current liabilities of P41.70 million, resulting in a net current assets position of P18.91 million. 

## 3.0 Management Letter 

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

## 3.1 Preparation and Review of Monthly Bank Reconciliations 

The auditors noted that, as in previous years, some bank reconciliations were not performed within 10 days after the month-end as required by the BQA Financial Policies and Procedures Manual. 

