undesirable but did not pose any material risk to the operations of the Board. 

## Auditor General’s comment 

The Board should nevertheless expedite the process of obtaining title deeds to complete the legal formalities. 

## 3.2 Property Valuation 

The auditors noted that a valuation which was carried out on land and buildings on 31 March 2017 did not split the value of land from the value of buildings. The estimated size of the plot as per this valuation was 10 000m 2, while a subsequent valuation carried out on 31 March 2018 estimated the same plot to be 13 000m 2 . The valuation report included a piece of land that the Board was in dispute with Botswana Railways. 

In response management acknowledged the finding and stated that the opening balance was based on valuation done on 31 March 2017 by the former owner, BURS, before transferring the property to PPADB as per the instructions of the shareholder [MFED]. The March 2018 valuation of the property in use, which sat on a clearly demarcated and fenced piece of land was conducted by PPADB. However, management endeavoured to work with the valuers, as advised by the auditors, to confirm the actual size of the land. 

## 3.3 Advances Against Gratuity 

The auditors noted that there were advances against gratuities due to employees. These advances were not taxed when paid/advanced to the employees but only taxed when they became due and payable. The auditors advised that this constituted a non-compliance with the Income Tax Act which states that any gratuity paid before it is due and payable becomes a loan and therefore interest should be charged on the loan. 

In response management stated that they would engage with BURS for advice on the matter with the view to changing the policy if necessary, as advance against gratuity was enshrined in the PPADB Conditions of Employment. 

