## 3.2 Property and Equipment 

The auditors noted the following regarding fixed assets: 

 The asset register had fully depreciated assets, with a total original cost of P5 630 324, that the Company still derived economic benefits from. 

 A motor vehicle was involved in a road accident on 31 August 2016 and was not written off as it was included in the fixed asset register with a carrying value of P165 927.22 as at year end. 

 Completed projects of P1 665 722 were not transferred to fixed assets. 

  Expenses of P794 222 that did not meet the recognition criteria of an asset were capitalised instead of being expensed. 

In response management stated that the fixed asset register was updated according to International Accounting Standard 16. Having completed the network assets audit in the prior financial year (2016/2017) they focused on completeness of the asset register, which included among others: tagging of assets, assessment of useful economic lives and physical verification. However, the assessment of useful lives of some assets could not be completed. 

## 3.3 Other Payables 

The auditors noted that the VAT returns for January and February 2018 were submitted on 27 March 2018, contrary to requirements of Botswana VAT Act which requires that VAT returns be submitted by the 25 th  of the following month. 

In addition the company was charged interest and penalties amounting to P184 313 and P310 095 respectively on certain 2015 returns which the company had not accrued as they were querying. 

In response management indicated that the submission of VAT returns was delayed by invoice integration issues and that the BURS online system was down on 26 March 2018 of which the company had communicated to BURS. A manual submission was then made on 27 March 2018. 

