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## 2.2 Financial Results 

For the financial year ending 31 March 2018, the Authority recorded a deficit of P6.54 million, compared to a deficit of P320 242 in the prior year. The increase in the deficit is due to the increase in operating expenses. 

Expenditure increased by 17% from P65.77 million in the prior year to P76.88 million in the year under review. Significant increases were noted in staff costs of P7.46 million and legal fees of P3.25 million. Income on the other hand increased by 7.5% from P65.45 million in the prior year to P70.34 million in the current year. 

## 2.3 Working Capital 

Income comprised: 

<img src='content_image/450678.jpg'>

The working capital position of the Authority as at 31 March 2018 showed current assets of P12.25 million and current liabilities of P6.78 million, giving a net assets position of P5.47 million. 

## 3.0 Management Letter 

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

## 3.1 Fixed Assets Register Not Updated Residual Values 

The auditors noted that the useful lives and residual values of some assets were not reviewed as required by International Accounting Standard 16. 

In response management stated that they would undertake an audit of all assets in the fixed assets register and revalue those assets without residual values. This would be done on a yearly basis to ensure all assets that are still in use are properly valued. 

