## 166. Local Enterprise Authority 

The financial statements of the Local Enterprise Authority for the financial year ended 31 March 2018 were audited by Messrs KPMG, Certified Auditors, who were appointed by the Board in terms of Section 25 (2) of the Small Business Act, (Cap 43:10). 

## 2.0 Accounts 

## 2.1 Audit Opinion 

In the opinion of the auditors: 

The financial statements presented fairy, in all material respects, the financial position of Local Enterprise Authority at 31 March 2018, and of its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards. 

## 2.2 Financial Results 

The financial operations of the Authority for the year ended 31 March 2018 showed a deficit for the year of P2.87 million, compared to a surplus of P 8.44 million in the previous year. 

The total operating income had a marginal increase of 3% from P154.86 million in the previous year to P159.67 million in the year under review, while the operating expenses increased by relatively significant 11% from P147.92 million in the previous year to P163.79 million in the year under review. 

## 2.3 Working Capital 

As at 31 March 2018, the working capital position of the Authority showed current assets of P44.69 million and current liabilities of P57.66 million, resulting in a net current liabilities position of P12.97 million. 

Current liabilities included deferred capital grants (for purchase of property, plant and equipment) of P5.67 million, deferred revenue grants (advanced for working capital) of P28.82 million and payroll accruals of P18.58 million. 

