its annual profits as dividend to the Government. In the year under review the Board was subject to tax, hence no dividends were payable. 

## 2.4 Working Capital 

The working capital position of the Board as at 31 March 2018 showed current assets of P356.40 million and current liabilities of P348.70 million, resulting in a net current assets position of P7.70 million. 

## 3.0 Management letter 

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

## 3.1 Long Outstanding Debtors - Repeat Findings 

During the inspection of the debtors’ ledger the auditors noted that P159.9 million was more than 120 days. This consisted mainly of government balances. Furthermore, the auditors noted that there were debtors who were more than 3 to 6 years which included, among others, the following: 

 Department of Crops – Tati/Francistown and Masunga region 

 Bokaa Sorghum Mill 

 Bereshit Business Bureau 

 Borengwa Ba Mogoma Sorghum Milling (A.R. Bricks) 

 Botswana Vaccine Institute 

 Dichaba Sebogodi 

According to auditors, the long periods of receivables days had resulted in management taking up more bank overdrafts and loans to ease the Boards cash flow challenges. Consequently, the Boards’ finance costs had significantly increased by 20% to P16.2 million in 2018. As a result, the following short-term loans and overdrafts were utilized during the year: 

 Overdraft facility with Bank ABC – P19.2 million (2017; P20 million) 

 Overdraft facility with Standard Chartered – P27.5 million (2017; P 30million) 

 Stanbic P50 million 

 FNB P39.6 million (2017; P8.9 million) 

 Barclays short-term loan P148 million (2017; P78 million) 

