The Institute is funded by Government grants, and in the year under review the grant was P20.61 million, representing 77% of the total income, compared to P19.55 million in the previous year. The Institute also generated revenue from sale of services (P5.53 million) and Investment Income (P7.61 million). 

## 2.3 Working Capital 

The working capital position of the Institute as at 31 March 2018 showed total current assets of P30.59 million and total current liabilities of P12.30 million resulting in a net current assets position of P18.29 million. 

## 3.0 Management letter 

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

## 3.1 Fully Depreciated Assets 

The auditors noted that the Institute had fully depreciated assets which did not have estimated residual values but were still in use, hence economic benefits were still being derived from them. These assets were carried at nil book values. This was in breach of requirements of International Accounting Standard 16, that depreciable value of an asset should be depreciated over its useful life, and that useful lives and residual values be reviewed at every year-end. 

In response management stated that BIDPA had assets whose values could be reliably and independently obtained as the standard required, such as buildings and motor vehicles. Other assets like furniture and fittings with no reliable values, had been maintained at cost. Management endeavoured to provide values in the past, however the practice was not accepted on account of being immaterial, not reliable and independent. 

Management however noted the auditors’ comments and stated that they would come up with required estimates. 

## 137. Botswana Institute for Technology Research and Innovation 

The financial statements of Botswana Institute for Technology Research and Innovation for the financial year ended 31 March 2018 were audited by Messrs Ernst & Young, Certified Auditors, who were appointed by the Board. 

