The Authority is funded by Government grants and in the year under review the grant was P28.55 million, representing 77% of total income, compared to P28.17 million in the previous year. Other notable sources of income were national lottery fees of P5.17 million, casino entrance fees of P1.47 million, annual fees of P900 000, income from gambling machines of P422 250 and transfer fees of P200 000. 

## 2.3 Working Capital 

The working capital position of the Authority as at 31 March 2018 showed total current assets of P62.34 million and total current liabilities of P58.44 million, resulting in a net current assets position of P3.9 million. 

Included in the current liabilities were P55.67 million fees and levies held by the Authority pending establishment of a fund in terms of Section 134 of the Gambling Act, 2012 and P1.89 million payroll accruals. 

## 3.0 Management letter 

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

## 3.1 Establishment of the Levy Fund 

The auditors noted, as in the previous year, that a levy fund had not yet been established by the Minister in terms of Section 134 of the Gambling Act, 2012, into which levies imposed were to be paid for the general benefit of the gambling industry in Botswana. The money collected by the Authority was still in its custody. 

In response management stated that the Ministry had agreed to set up a levy fund, and the Authority and Ministry of Investment Trade and Industry were discussing where the fund should reside. 

## 3.2 Implementation of Provisions of The Gambling Act and Regulations 

The auditors noted, as in the previous year, that the Authority did not, in some instances, impose penalties for levies paid outside the 10 days after the end of the month in respect of which the levy is payable, as prescribed by Section 108 of the Gambling Regulations. The Authority has the power to impose a 2% penalty on the outstanding licence fee for each week during which the 

