BAC Records Surplus of P36.27m

But foreign currency Trade Payables understated by P560 102


The country’s leading business school, Botswana Accountancy College (BAC), recorded a surplus of P36.27 million in the year that ended 31st March 2020 in comparison to P41.35 million recorded in the prior year, the latest Auditor General’s Report shows.
Revenue and other operating income at BAC increased by 13 percent from P225.88 million the previous year to P254.48 million in the year under review,” says the report.
“The decrease in surplus was mainly attributable to an increase in Administration Expenses from P188.41 million in the previous year to P214.49 million in the year under review.
“Another contributing factor was the decrease in net impairment loss of P2.3 million in the year under review, compared to net impairment gains on trade receivables realised of P3.7 million in the previous year. Finance costs increased from P368 819 in the previous year to P1.52 million in the year under review.”
According to the report, the working capital position of the college as at March 2020 showed total current assets of P129.95 million and total current liabilities of P99.99 million, resulting in a net current assets position of P29.96 million.
The AG’s report shows the college had not converted foreign currency-denominated supplier balances at year-end using the relevant exchange rates prevailing at the year-end. “As a result, the foreign currency Trade Payables were understated by P560 102,” it says.
“The auditors had proposed for an entry adjustment to correct the error. In response, the Management stated that the discrepancies came from Sub-Ledger not agreeing to Main Ledger during processing. Management stated that they had engaged (a) consultant to assist resolve the discrepancy between the Sub Ledger and General Ledger before passing any entries.”