BACKGROUND

1. Incorporated in 1996 under the Companies Act Cap 42:05 and governed by a Memorandum and Articles of Association.

2. The Memorandum and Articles of Association was revoked in 2011 then BAC adopted the Constitution under the new Companies Act Cap 42:01 (it is a company limited by guarantee).

3. The guarantors/shareholders of the company are: • TheBotswanaGovernment • Debswana • BotswanaInstituteofCharteredAccountants(BICA)

4. The primary objective was to train Batswana qualified professional accountants to address shortage of the accountancy skill at the time

5. TheinstitutionisgovernedbyaBoardofDirectors,headed byExecutiveDirector

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STRATEGIC PARTNERSHIPS

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contentsMANDATE 06

CHAIRMAN’S STATEMENT 07

EXECUTIVE DIRECTOR’S REPORT 11

GOVERNANCE 23

ACADEMIC PORTFOLIO – TEACHING & LEARNING 24

QUALITY ASSURANCE 43

ACADEMIC SUPPORT 45

SUPPORT SERVICES 49

CORPORATE SOCIAL INVESTMENT AND SUSTAINABILITY 65

SUMMARY OF FINANCIAL RESULTS 69

FINANCIAL STATEMENTS FOR THE YEAR 2018/2019 73

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SHARED VALUES

BAC MANDATEProvide a solution towards the skills capacity building and human capital development to

meet the economic needs in Botswana and globally

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CHAIRMAN’S STATEMENTIt is with great pleasure that the Board of Directors present

the Annual General Report for the period ended 31st

March 2019. The Board is happy to report significant

achievements during this period and of note, a healthy

surplus from a deficit position reported in previous years.

Performance HighlightsThe Board hosted its Annual Graduation Ceremony, which

was graced by a representative of one of the Members,

Mr Balisi Bonyongo, Managing Director of Debswana

Diamond Company, as the keynote speaker. There was also

representation from our key collaborative partners from the

University of Derby, University of Sunderland and Sheffield

Hallam University. Participation by the Members attests

to their continued commitment to the objective for which

the institution was established and unwavering support

to the vision and mission of the College; towards national

development goals of skills and capacity development and

sustainable growth towards a knowledge-based society.

The College continues to experience tremendous growth,

in terms of its product offering to accommodate the

ever-increasing and diverse market requirements and

to facilitate accessibility to learning. In this regard, the

College continues to uphold its business model around

collaborative partnerships. These are reviewed on an

ongoing basis for relevance and competitiveness, as the

institution continues to evolve. Furthermore, the reviews

are conducted with a view to put in place partnerships that

are aligned with where the institution is going in terms of

its Corporate Strategy.

The College has during the period, identified and entered

Memorandum of Understanding with two key stakeholders,

being International Business Training College (IBTC);

towards the provision of online learning for professional

courses and Skills Network which offers over 60 on-line

short programmes. Online learning provides an opportunity

for the College to tap on a broader customer base; thereby

improving accessibility to learning. It provides a variety of

programmes to choose from and the convenience to study

at own time and reasonable cost when compared to the

conventional face to face study mode. As a brand, the

College continues to make great strides towards positioning

itself as an institution that “transforms lives, in the region

and beyond” through these collaborative arrangements.

This was evidenced by the number of local, regional and

international awards, in recognition of the superiority of the

BAC brand.

For the period from January 2019, the College recorded

a Gross Enrollment Rate of 3 995 students across all five

schools; covering undergraduate, professional and post

graduate programmes; a notable achievement when

compared. The growth in student numbers now brings

about the urgent need to develop the College infrastructure

to enhance the student learning experience at the College.

During the year, the Board approved the development

of Plot 61922 Gaborone, to address increasing space

requirements for the College. The College continues

to explore partnerships in the market and sustainable

business models towards infrastructural development of

the institution to address the institution’s growth needs.

Risk ManagementIn the discharge of its mandate, and in compliance

with good corporate governance principles and other

governance frameworks, the Board manages all prevailing

DR SHABANI NDZINGEBOARD CHAIR

and potential risk that is likely to have a negative impact

on the development and growth of the business. A broad-

based approach to risk is pivotal towards the growth and

sustainability of an institution; hence the need to embed

risk in the day to day management of the business. The

Finance and Audit Committee provides an advisory role to

the Board, in managing the identified risks of the College.

Focus is on the top ten identified risks and the development

of implementation plans towards mitigation of the risks.

The Board also makes sure that Management is provided

with the necessary resources to ensure that the planned

initiatives to mitigate the risk are met. During the period,

the Board approved several policies to mitigate gaps in the

internal process, improve the operating environment and

thereby reduce risk as well as respond to new regulatory

requirements in the academic space.

The regulatory environment remains a key focus area

for the Board and the business. The Board continuously

appraises itself with developments in the market to ensure

compliance. As the regulatory environment has changed,

the College equally positions itself to fully comply. The

Board is happy to report that the institution has been

accredited as an Education Training Provider (ETP) by the

Botswana Qualifications Authority (BQA) ; and efforts to

acquire accreditation of our product offering in terms of

current and new programmes is ongoing.

Stakeholder EngagementAs part of delivering on the Corporate Strategy, the Board

ensures continuous community engagement to enhance

existing relationships, create new partnerships and improve

visibility of the brand amongst the communities within

which the College operates and promote sustainable

partnerships in the delivery of the core mandate. This

becomes possible by being receptive to feedback on

the challenges faced by the communities in terms of

our delivery of the College mandate. In the reporting

period, and as part of the Francistown 10th Anniversary

celebrations, the Board hosted a cocktail dinner for the

stakeholders in Francistown.

Expression of GratitudeI wish to express my sincere gratitude to our stakeholders,

amongst others the Members, the Student Community,

employees, collaborative partners and the community

for their dedication and commitment to growing one of

the best brands; comparable with some of the best in the

world.

We thank you our partners for your unwavering support

in the pursuit of excellence towards the provision of

quality education and training; as we strive to develop an

economy that is self-sustaining through impactful research,

innovation and entrepreneurship.

Board Chairman

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Front: Mrs Cecilia Ramatlapeng, Mrs Emma Peloetletse, Ms Serty Leburu

Back: Dr Shabani Ndzinge, Mr Johannes Motshegare, Mr Nigel Dixon-Warren, Ms Tebogo Bagopi,

Mr Conductor P Masena, Mr Moshe Libengo

MR NIGEL DIXON-WARRENDEPUTY BOARD CHAIR

(FAC) CHAIR, FINANCE & AUDIT COMMITTEE

MS HELEN CHILISABOARD MEMBER

MR JOHANNES MOTSHEGAREBOARD MEMBER

HR COMMITTEE CHAIR

MS EMMA A. PELOETLETSEBOARD MEMBER

MR CONDUCTOR P MASENABOARD MEMBER

MRS. CV RAMATLAPENGBOARD MEMBER

MS. TEBOGO BAGOPIBOARD MEMBER

DR SHABANI NDZINGEBOARD CHAIR

MS SERTY LEBURUEXECUTIVE DIRECTOR

BOARDMEMBERS

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MRS. F S MOLEFEBOARD MEMBER

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BOARDMEMBERS

2018/2019 year has come and gone and we are very excited

to share with our stakeholders what we have achieved in

relation to the mandate over this time period. The year has

not been without challenges but our collaborative model

of operating continue to stand the test of time in delivering

remarkable results and solid business growth with a lot of

relevance and improvement on research, student learning

experience as well as complemented lecturers’ knowledge

and skills. Collaborations with various partners locally

and internationally has tremendously added value to our

strategies and operational activities leading to an overall

positive growth of the institution.

In November 2018, we successfully completed revitalization

of our 2018-2022 Institutional Strategy to assess progress

in terms of the key strategic focus areas and align-ment to

the demands of the market. The key focus of the strategy

focused on trans-forming lives, to advance and expand the

institution from a College to a Business Uni-versity.

The Strategic focus areas have been streamlined from

seven to five, with emphasis on promoting employability,

entrepreneurship, leadership and impactful research.

The focus areas have been re-prioritized with primary

focus shifting towards Staff Experience (People Agenda

Strategy), Teaching and Student Learning Experience,

Research and Innovation, Infrastructure Development and

Optimisation and Financial Sustainability. This also resulted

in an addition of Accountability as one of our values. This

is meant to instill ethical character for students and staff to

take responsibility of their actions and responses

A decade of diversity and growth One of the key milestones in the history of the College

was the celebration of the Francistown Campus 10th year

Anniversary enjoyed by the staff, industry and students.

In its humblest beginnings, the Francistown Campus

started operating with only 46 students at the Barclays

Plaza, offering Accounting programmes only. The campus

has since extended its horizons, offering courses in

Tourism, Hospitality, Computing as well as Accounting.

The Francistown Campus has thirty-five staff members

including teaching and non-teaching staff who are

dedicated towards making the BAC Francistown Campus a

hub of business and entrepreneurship as well as make BAC

a school of choice in the region.

To date, the Campus enrolls about five hundred and

sixty students and provides eight programmes offered

in collaboration with the University of Sunderland for

Computing programmes, University of Derby for Leisure

programmes, Association of Accounting Technicians (AAT),

and the Chartered Institute of Purchase and Supply (CIPS)

and it is still growing.

The Francistown Campus has produced more than four

hundred graduates since its inception. In 2018, a record

of more than one hundred and fifty students from four

pro-grammes were awarded their degrees and now form

part of entrepreneurs, business advisors, administrators,

hospitality practitioners, computer analysts and engineers

who now serve the northern region in diverse disciplines.

The 2018 Valedictorian was from the Francistown Campus.

EXECUTIVE DIRECTOR’S REPORT

MS SERTY LEBURUEXECUTIVE DIRECTOR

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With the introduction of additional programmes at

the Campus, the College anticipates conferring more

students from the Campus. BAC management and team

will also continue to open doors for collaboration with the

community, industry and government sectors across various

constituencies to support existing projects that may require

innovation, upgrading or restoration within the Francistown

community and surrounding areas.

Investing in Quality The unique selling proposition for BAC is the quality that

is infused in the deliberately nitted fabric of teaching and

learning as we deliver our Mandate. This is to ensure that

the graduates produced by BAC are of high quality as

bestowed by BQA, HRDC, employers and the nation at

large. The Graduates should be able to do value adding

activities and also povide value adding conversations,

discussions and decisions that positively impact the lives of

Batswana and other lives across the region and the globe.

Most importantly they should be independent individuals

who will self sustain, collaborate to co- create and co –

produce for the sustainance of others. When this happens

we will be in the right direction to being a knowledge

economy.

The collaborative engagements provide BAC students and

staff with diverse knowledge and information, opportunities

to share experiences and lessons on best practice that have

benefited various strategic initiatives. BAC has been BQA

accreditated as an Education Training Provider (ETP), it is

now financially viable for sustainance, it is growing in the

number of students it is enrolling and there is improved

progression and graduation rates and this bears testament

to our commitment to provide quality education.

During this year BAC embarked on infrastructure

refurbishment at both campuses leading to a more friendly

and conducive learning environment.

Encouraging EntrepreneurshipThe College launched the BAC Student Investment

Battlefield Start-Up Competition in Partnership with

Botswana Investment & Trade Centre (BITC). The

objective of the competition is to promote the spirit of

entrepreneurship amongst BAC students to address

graduate and youth unemployment through nurturing and

supporting entrepreneurship and innovation. The students

responded to a request for business proposals advertised

within BAC, the top ten were then shortlisted. They made

presentations to a panel of judges from industry, Local

Enterprise Authority and from the Citizen Entrepreneurial

Development Agency (CEDA).

Thereafter, the top five students shortlisted made their final

presentations amidst industry, a panel of judges, BAC and

BITC Management, staff and fellow students. The top three

finalists were Mothusi Matobo, year 3 student in BA (Hons)

Entrepreneurship & Business Leadership, Aisha Gobe

Tapela, year 3 student in BA (Hons) Accounting & Finance

and Bonno Lebogang Motswaiso, Year 3 student in BSc

(Hons) Computer Systems Engineering.

They each won cash prizes of P25, 000.00, P15, 000.00 and

P10, 000.00 for first, second and third prizes respectively

in February 2019 for them to start businesses. This

competition rendered BAC students a platform to support

their innovative business ideas. The winners are receiving

business advisory services from BAC lecturers to support

them in commercialising their business projects. The

competition will be an annual event henceforth.

Internationalisation

The world has become a global village and this has

contributed enourmously to the transformation of the

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education system across the world. BAC attended

the World Education Leaders Forum organised by the

International Youth Forum (IYF) in Seoul, South Korea.

During the conference, BAC signed an agreement which

symbolises the College’s commitment to participate in

Youth mind education and character buidling initiatives.

This will further provide opportunities for a club to be

set up within the BAC campus where BAC students will

benefit especially from the character-building activities in

partnership with IYF.

In partnership with the Association of African Universities

(AAU), BAC hosted a Resource Mobilisation workshop for

a BAC cross functional team as well as representation from

industry. The workshop was facilitated by Prof. Rosemond

Boohene, an Associate Professor of Enterprise Development

at the Centre for Entrepreneurship and Small Enterprise

Development, University of Cape Coast. The purpose of the

workshop was to provide higher education managers with

an overview of successful strategies to mobilize resources

for their institutions, to effectively optimise their skills to

ac¬quire and manage resources effectively in order to

promote research initiatives. This is aimed at improving the

delivery of quality Higher Education in Africa.

BAC in collaboration with the Sheffield Hallam University

held a two-day conference on “Entrepreneurship and

Innovation for Economic Diversification and Local

Development” which engaged stakeholders and other

tertiary institutions. The conference is part of a plan to

reduce youth unemployment which is a challenge faced

by many countries globally. Tertiary institutions from Africa

and internationally who participated at the conference also

emphasided the graduate skills mismatch with industry

needs, an area which needs collective participation of

the industry, the government, the universities and the

communities to devise solutions to improve and align

the quality of graduates with the skills and competencies

required by the employers.

The International Association of Universities hosted

a conference in Malaysia themed, “Higher Education

Partnerships for Societal Impact” in Kuala Lumpur,

Malaysia. BAC participated at the conference with the

aim to benchmark and learn how other universities

conduct responsible research, internalisation for societal

impact, digital transformations in higher education as well

as sustainable development through multistakeholder

collaboration.

The BAC delegation also visited the University Putra

Malaysia (UPM)’s Putra Science Park(PSP), a center

responsible for managing technology transfer activities at

UPM ranging from Intellectual Property (IP) management,

promotion and commercialization of technology. PSP

continues to strive to ensure that UPM is always in the

forefront of producing high impact innovations. It was

during the visit that the unit responsible for managing the

training for Human Capital Develoment for Innovation was

engaged to facilitate a Technology Transfer and Intellectual

Property Policy Workshop for the BAC team that will be

working on establishing the Entreprenurship and Innovation

centre. The skills acquired from the workshop will assist

the College to create support structures for students and

lecturers’ innovative projects and nurture them into viable

businesses.

ConclusionI am proud to work with a team of dedicated and devoted

professionals who continue to demostrate a high level

of efficiency to ensure timely delivery of projects which

contributed to the outstanding performance this year.

The Ministry and the Board have been remarkable in

endorsing and supporting activities throughout the year

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which facilitated advancement and execution of projects

leading to an exceptionally successful year. Let me

take this opportunity to thank the Board, the Ministry,

Management,SRC, emloyees and students of BAC and

our Partners for working as a great team in delivering the

Mandate bestowed on us. I also extend my appreciation

to our parents and the Nation at large for the unwavering

support.

I trust that you will enjoy reading this account of BAC’s

performance during the 2018/2019 financial year and that

it will provide you with new insights into the work of the

BAC team and its strategic partners.

Serty LeburuExecutive Director

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Front: Ms Serty Leburu, Dr Galamoyo Male, Mr Oaitse Gabadirwe, Mrs Bongiwe Magocha,

Mr Ishmael Dipholo, Mrs Mpho Victoria Mokgosi

Back: Mr Aubrey Mbewe, Ms Enelys Shamakumba, Mr Badubi Badubi, Mr William Sekgatsa, Mr Michel Katombe,

Ms Winnie Moloi, Dr Byron Brown

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DR GALAMOYO MALEDirector of School of Computing and

Information Systems

MS LORRAINE KOOBOKILEHead of Student Support

and Welfare

MR EUGENE MWABADirector of School of Finance and

Professional Studies

MR KABO PILANEActing Head of Informations & Communications Technology

MR AUBREY MBEWEDirector of School of Business and Leisure

(Acting)

MANAGEMENTTEAM

MR ISHMAEL DIPHOLOHead of Human Resources

MRS MPHO MOKGOSIHead of Marketing & Corporate

Communications

MR WILLIAM SEKGATSA Registrar

MRS BONGIWE MAGOCHA Head of Library Services

MR JULIAS AYOHead of Finance & Procurement

MRS VERONICA MPHATHI Head of Organisational Strategy

and Institutional Planning

MR KULA GUMEDE Internal Audit Manager MR BADUBI BADUBI

Intergrated Facilities Manager

MS SERTY LEBURUEXECUTIVE DIRECTOR

DR BYRON BROWN Deputy Executive Director –

Academic Affairs

MR OAITSE GABADIRWEDeputy Executive Director-

Corporate Services

MR MICHEL KATOMBEDirector, School of Post Graduate Studies

(Acting)

MR GAPE MAPLANKA Francistown Campus Manager

MS ENELYS SHAMAKUMBABoard Secretary

EXECUTIVE MANAGEMENT

SENIOR MANAGEMENT

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Legal StatusAn institution of tertiary education training, the Botswana

Accountancy College (BAC) is a company limited by

guarantee; incorporated in 1996 under a Memorandum

and Articles of Association, in line with the Companies Act,

Cap 42:01. The Memorandum and Articles of Association

were revoked in 2011 when BAC adopted the Constitution

under the new Companies Act Cap 42:01. The College

Guarantors/Members are constituted as follows:

i) The Botswana Government through the Ministry of

Tertiary Education Research Science & Technology

ii) Botswana Institute of Chartered Accountants (BICA)

iii) Debswana Diamond Mining Company (Debswana)

The primary objective for which the College was established

was to assimilate the operations of the then Debswana

Accountancy Training Centre (DATC) and the Botswana

Centre for Accounting Studies (BCAS); with a view to

harmonise professional accountancy training and to curb

the acute shortage of Professional Certified Accountants

in Botswana. This gave effect to the national development

goals towards human resource capital development to

meet the economic needs of Botswana.

It is achieved through several objectives as outlined in its

Constitution; amongst others to:

i) Initiate, develop and promote a broad range of

programmes in the profession of accountancy

ii) Initiate, develop and promote flexible and innovative

long and short-term programmes; which include but not

limited to information technology, tax, law, management,

tourism, public finance and human resources

iii) Foster academic research, which contributes to the

various sectors of the economy.

The College has since its establishment evolved and

diversified its product offering more towards a business

orientated institution, with a focus not only to address

Botswana’s economic needs, but the region and the world.

Management has achieved a turnaround of the College

finances, recording a surplus of P41.3 million compared to

a surplus of P9.7 million in the prior year. A commendable

effort indeed, which attests to the strategic partnership

between the Board and Management and a focused

strategy towards the achievement of the vision of being

“becoming a Leading University of that transforms lives in

Africa and beyond”.

Governance StatementBAC is governed by the Board of Directors. The role of the

Board is to provide oversight in the management of the

company towards sustainable development and growth, in

line with its Corporate Strategy; thereby giving effect to

its objectives as outlined in the Constitution. The mandate

of the Board is to provide oversight to Management in

the implementation of the College Corporate Strategy. In

doing so, the Board provides reasonable assurance to the

shareholders and all other stakeholders that the company

operates within the ambit of the law.

The board also assures corporate governance principles

and other applicable framework towards sustainable

development, growth and the creation of shareholder

value. The company subscribes to the highest standards

of business ethics, compliance with applicable law and

other corporate governance frameworks, and subscribes

amongst others to the:

- Companies Act

- Education Act

- HRDC Act

- BQA Act

- King III Code of Corporate Governance

- International Financial Reporting Standards

The new BQA Act has introduced new dimensions

to compliance, introducing a stringent framework for

accreditation as an Education Training Provider (ETP) and

for all programmes (current and new). This has presented

GOVERNANCE

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its challenges in terms of specific requirements for new

or additional resources and structures particularly in

the academic front, as well as corresponding costs for

registration and accreditation. Suffice to say that as at

the reporting period, the College has been accredited

as an ETP and the process for registration of programs in

ongoing.

Board StructureThe BAC Board gives effect to the requirements of the above

legal and governance framework through the establishment

of strategies and policies towards appropriate business and

financial risk management. It also includes the approval

of financial objectives and targets, structured reporting

by Management, the management of key stakeholder

relationships and collaborative partnerships.

The Constitution provides for most non-executive

directors, comprising a minimum of six non-executive

directors and a maximum of twelve members, including

the Executive Director who is an ex-officio member of

the Board. The composition of the Board shall, always

reflect the underlying skills and capabilities required to

attain the College mandate; particularly in the context of a

tertiary education institution by bringing a proper balance

of knowledge and skill, experience, resources required

given challenges facing the business, prevailing market

conditions and the primary need to maintain an effective

Board. The requirement for a majority of non-executive

independent directors resonates with the need to bring

diversity, independent thought and objectivity in the

discussions and decision-making process. The Board has

during the period, attended training to manage identified

skills gaps and remain abreast with developments in the

tertiary education space as well as principles of good

corporate governance; to remain relevant and efficient in

the discharge of its oversight role.

Directors are appointed, removed and replaced by

the Members, in accordance with the provisions of the

Constitution and as further outlined in the Members

Compact and the Board Charter. Directors serve office for

a period defined in the Constitution and or until removed

by the Member who appointed them or upon resignation,

whichever comes first. A director maybe re-appointed

for a further term, provided they offer themselves for re-

appointment. Re-appointment shall as much as possible

take into consideration the performance of the directors

and the need to rotate directors whilst at the same time

allowing for continuity by retaining at least one third of the

former directors in the new Board.

During the year under review, the Board was constituted as follows:

Name Date of Appoint-ment

Position

Mr Shabani Ndzinge 03 April 1996 Chairman ( Independ-ent non-executive)

Mr Nigel Dixon Warren 01 January 2006 Deputy Chairman (independent non-ex-ecutive)

Mrs Emma A Peloetletse 08 December 2009

Non-executive (rep-resenting the MFDP (Accountant General)

Mr Johannes Motshegare 13 July 2012 Non-executive (repre-senting Debswana)

Mr Eugene Moyo 12 October 2011 Non-executive (rep-resenting Ministry of Basic Education)

Ms Serty Leburu 01 March 2016 Executive Director (ex-officio)

Mr Conductor P Masena 25 April 2017 Non-executive (repre-senting BICA)

Ms Helen C Chilisa 25 April 2017 Non-executive (repre-senting BICA)

Mrs Franciscah S Molefe 05 July 2017 Non-executive (repre-senting Debswana)

Mrs Cecilia Veeta Ramatlapeng

24 April 2018 Non-executive (repre-senting BICA)

The following appointments and resignations were noted during

the year;

New Appointments Resignations

Mr Cecilia Veeta Ramatlapeng (24 April 2018)

Mr Eugene Moyo (31 October 2018)

Ms Tebogo Bagopi (01 November 2018)

Ms Hellen Chilisa (01 May 2019)

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Board Sub-CommitteesIn the discharge of its mandate, the Board is supported by sub-Committees of the Board and the Constitution currently provides for three Committees as follows:- The Human Resources Committee- The Finance and Audit Committee- The Academic Affairs Committee

The Committees operate under the delegated authority of the Board and are guided by the Board in terms of their composition, scope of work, powers and authority. Committees of the Board provide a specialist forum for the interrogation of issues given the specialist skill and expertise pertaining to the subject matter and plays an advisory role to the Board.

The Board currently has two Committees, constituted for the period as follows:

Finance and Audit Committee (FAC)

Human Resources Committee (HRC)

Mr Nigel Dixon-Warren - Chairman Mr Johannes Motshegare - Chairman

Mr Conductor P Masena Mr Eugene Moyo (resigned 31 October 2019)

Mrs Franciscah S Molefe Mrs Emma A Peloetletse

Mrs Cecilia V Ramatlapeng Ms Helen C Chilisa (resigned 01 May 2019)

The Board membership currently represents a diverse range of knowledge and skill, to adequately monitor the implementation of strategy towards the discharge of the College objectives. These skills are reviewed on an ongoing basis to ensure an effective Board that adequately meets the requirements of the business.The Board recognizes the need to continuously review the governing framework of the College for compliance. In addition it accounts for any lapses or gaps in the implementation of applicable governing frameworks which include the Constitution, the Board Charter and the Members’ Compact (which defines the relationship between the Members, the expectation and responsibilities of the Members to each other and the College). It also includes ongoing developments in corporate governance as outlined in terms of the King Code of Corporate Governance and other applicable codes.

To that end the Board has, during the year, initiated a process of review of the Constitution, the Board Charter and the development of several academic policies (in giving effect to new requirements of the BQA Act). Furthermore, the Board initiated the process of consultation and approvals towards transitioning to a University; in giving effect to the Corporate Strategy.

Meetings of the BoardThe Board and its Committees is required to meet at least quarterly to discharge the business of the College. The Board can also convene special meetings as may be required from time to time to dispense with issues that require immediate attention and guidance by the Board in terms in the discharge of its oversight role. For the period under review, the Board convened a total of 14 meetings, to address the requirements of the business particularly around the area of strategy development, human capital development, succession planning and risk management and infrastructural development. In general, these are intended to enhance the learning experience by ensuring that processes are put in place and well documented to facilitate equitable and sustainable management of operations. Similarly, it facilitated timely and effective Board decisions as required as follows:

Human ResourcesCommittee

Finance and Audit Committee

Main Board

1. 16 May 2018 23 May 2018 18 Jun 2018

2. 15 Aug 2018 21 Aug 2018 22 Jun 2018

3. 20 Nov 2018 28 Nov 2018 10 Jul 2018

4. 19 Feb 2019 21 Feb 2019 07 Sep 2018

14 Dec 2018

16 Jan 2019

28 Feb 2019

Directors RemunerationApart from the Executive Director, Members of the Board and Sub-Committees are not entitled to monthly or annual salaries. Members of the Board are paid sitting allowances at prevailing rates which currently are in line with applicable directives of Government. The amounts highlighted per member were paid in the reporting period.

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MEMBER POSITION DIRECTORS REMUNERATION (sitting allow-ance)

Travel allow-ance (Per diem)

Dr Shabani Ndzinge Board Chair-man

P12600.00 pa -

Mr Nigel Dixon-Warren Deputy Chair-man

P10,050.00donated

Debswana (in respect of Mr Johannes MotshegareMrs Franciscah Molefe)

Director(s) P16380.00 pa -

Mrs Emma Peloetletse Director 10080.00 pa

Mr Conductor P Masena

Director 11340.00 pa 3592.00

Botswana Govern-ment (in respect of Ms TebogoBagopi, Ms Helen ChilisaMr Eugene Moyo

Director(s) P11340.00 (Paid to BotswanaGovernment)

Mrs Cecilia Ramatla-peng

Director Nil (waived) P3592.00

Mrs Franciscah Molefe Director P3592.00

The variance is a function of the applicable rate, at P1575.00 for the Chairman and P1298.00 for Members and the number of meetings/Board activities attended.

Compliance with Corporate Governance CodeThe College subscribes to principles of good corporate governance as entrenched in the King Code and other applicable regulatory framework. The Board consistently strives to ensure that the College is aligned with the requirements of good corporate governance. Reviews are undertaken at designated times to measure the institutions compliance and or maturity levels, to identifying existing gaps and developing deliberate strategies and initiatives

to address same. Compliance is measured across the following broad principles:1. Ethical leadership2. Composition and the oversight role of the Board3. Audit Committees of the Board4. The governance of Risk5. Information Technology governance6. Compliance with laws7. Internal Audit8. Stakeholder Management9. Integrated Reporting

The above process is augmented in terms of the reviews

undertaken by the Botswana Accountancy Oversight Authority (BAOA) on Financial Reporting Monitoring and Corporate Governance, under the Financial Reporting Act, 2010. Such an exercise was undertaken at BAC in November 2018. Considering the outcomes and as further guided by BAOA, the College is in the process of developing an implementation plan to address specific areas of non-compliance.

INTERNAL AUDIT

STUDENT REPRESENTATIVE COUNCIL

The department implemented 92% of the Annual Internal Audit plan during financial year 2018/19 to improve the internal control environment. The Internal Audit team keeps abreast of industry trends through participation in events and seminars on the field. The team attended training to explore the potential of data analytics and continuous auditing with the aim to improve audit efficiency for better environmental control.

Annually, the BAC student community holds elections for nomination of the Student Representative Council. These are held at both the Gaborone and Francistown campuses. The Gaborone SRC President, was Mr Tshepiso Masilonyane and the Francistown SRC President was Mr Donovan Chabe. These teams are considered part of the BAC management as they are a link between the student body and the institution’s management. Once the SRC leadership has been sworn into office they are inducted on leadership skills, institutional framework. They also provide management with their plan for the year which fully articulates students’ requirements. Most of the students’ queries are addressed through the student Support and Welfare and the Registrar’s offices. The BAC and SRC leadership enjoy cordial relations built mutual trust and cooperation.

The Gaborone SRC president was selected to participate in the 22nd session of the United Nations Youth Assembly, on 10th-13th August 2018 in New York, USA. The UN Youth Assembly is the largest global meeting for young leaders at the United Nations Headquarters, where they tackle ground breaking issues and foster real action for sustainable development. This is a platform for the college to nurture and encourage youth leadership. BAC continues to support the SRC on initiatives and programs which provide opportunities for them to enhance and grow their leadership skills.

ACADEMIC PORTFOLIO

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ACADEMIC PORTFOLIO

The academic portfolio constitutes the core business of the College being Teaching and learning, Research and Service. The portfolio discharges its functions through the Library and Registry departments as well as through four academic schools. That is, School of Postgraduate Studies, School of Finance and Professional Studies, School of Business and Leisure and the School of Computing and Information Systems. Robust academic governance lies at the core of efforts to realise exceptional learning experience for all students.

The academic programme of the College remains highly competitive, with the College meeting its enrolment target as defined in its 2018/19 budget plans. Throughout the 2018/19 period, the College made significant gains in advancing its academic mandate. Among the notable teaching, learning and research achievements, the College wishes to highlight the following:

(a) BQA ComplianceFull compliance with qualification registration deadline set by the BQA. It is pleasing to report that the College has documented and submitted all its 30 qualifications to the BQA ahead of the December 2019 deadline. The College is awaiting the outcomes of that process and is also busy with Learning Programme revision and development to meet the December 2020 Deadline.

(b) AccreditationThe College gained institutional accreditation from the Insurance Institute of Botswana (IIB). This is aligned with the various insurance courses offered by the College and to assure employability of graduates. In line with this, the College has secured accreditation for two of its jointly delivered master’s degree programmes; namely MA in Procurement and Logistics Management and Executive MBA from two professional bodies: i.e., the Chartered Institute of Purchasing and Supplies (CIPS) and Institute of Leadership and Management, respectively.

(c) Strong CollaborationsStrengthened the College’s model of collaboration,

through the formal agreement with University of Derby and Sheffield Hallam University partners, respectively to have local delivery of the masters’ degree, specifically in MSc Strategic Management; MBA and MA Procurement and Logistics Management. The net effect of this is a reduction in franchise fee and staff development.

(d) Widening of education accessIn response to the government’s call to broaden tertiary education access and to promote lifelong learning, the College has introduced Online as a mode of study. The initiative has been rolled out on a phased basis, with access in the first phase limited to five courses in professional studies: Association of Accounting Technician (AAT), Association of Certified Chartered Accountant (ACCA), Chartered Institute of Management Accountant (CIMA), Botswana Institute of Chartered Accountants (BICA) and Certified Financial Analyst (CFA).

(e) Academic governance / processes improvementSeveral academic policies, issued by the main Academic Board, were adopted and socialized through school level workshops to strengthen and improve academic excellence. In addition, with the launch of the Postgraduate Studies School, research, innovation and engagement across the College have been gradually gaining root. Over the 2018/19 period, the College hosted a major international research conference, jointly with its partner university, Sheffield Hallam University. The theme was on Entrepreneurship and economic development, which was the first of its kind. The conference has been slated to be a biannual event in the academic calendar. The conference was complemented by several research seminars hosted to build the re-search capacity of staff and students.

The hosting of conferences and seminars are illustrations that the academic portfolio is gradually transitioning from a solely teaching focused portfolio into a more broad-based portfolio that embraces research and services. The Postgraduate Studies school is the clearest signal yet of this shift. Although systems to strengthen the reporting of research outputs across the College is being developed, it

ACADEMIC PORTFOLIO

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is notably that collectively, a total of two Books of Abstracts to showcase student and staff research projects were developed and published in 2018/19.

One of these Book of Abstracts covered postgraduate level research dissertations while the other covered undergraduate research dissertations specifically in tourism and hospitality management. Alongside the Book of Abstracts, there were also published journal papers and articles in professional magazines, totaling eight, with six of these being academic papers and two case specific report in professional magazines.

Services to community continue to emerge as an important and significant part of the core business of the academic portfolio. A core part of service is outreach. In this regard,

the three major outreach projects registered were the;a) project with the Tlokweng Kgotla to develop a Knowledge Management System for the Kgotla

b) Code Week Project in secondary schools aimed at mitigating youth phobia for pursuing science and technology related courses

c) Teaching of vulnerable youths Project in Mochudi, jointly with Stepping Stones International. Services to the community aim to bring the College closer to the community it serves and to allow the College to be a catalyst for change in areas beyond academic programmes it offers. The performance of individual academic units follows below.

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SCHOOL OF COMPUTING AND INFORMATION SYSTEMS

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OverviewThe School of Computing and Information Systems (SCIS) is renowned for its undergraduate degree offerings in the areas of Computer Systems Engineering, Applied Business Computing, Mobile Technologies, Business Intelligence, Network Computing and Information Communication Technology. The School offers programmes that are enablers for driving business growth and prepares professionals to be life-long learners. The School delivers its education and training mandate in partnership with the University of Sunderland which confers two of the degree awards with the rest of the awards being awarded by the SCIS.

An important arm of the School is the Industry Skills Centre, which in addition to its primary purpose to impart ICT Industry Skills tom the College‘s graduates, also trains professionals in industry standards and vendor specific courses. The SCIS has produced graduates who have gone on to setup their own companies. The School is a leader in producing relevant and skilled graduates in the ICT Industry. To date the School has contributed over 1000 graduates to Botswana‘s skilled Human Capital resource.

SCHOOL OF COMPUTING AND INFORMATION SYSTEMS

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Key achievementsAs of 30 March 2019, the School had an enrolment of 686 students. This figure is lower compared to the previous reporting period. This decrease in student total enrolment is attributed to the lower first year student recruitment numbers for the 2018/19 academic year when compared to first year student recruitment numbers forthe 2017/18 academic year.

Teaching performanceStudent performance in the 2018/19 reporting period was very encouraging with all programmes performing very well. In the 2018/19 reporting period student performance as indicated by the percentage of students who successfully completed their degree programmes was very good. The BSc (Hon) CSE and the BSc(Hon) ABC graduating 96% and 92% of the students respectively. See the table 1 below. The planned minimum targets for these areas was 85%;

Table 1: Graduation statistics for the 2017/18 Academic year students

1st class

2nd class divi-sion 1

2nd class divi-sion 2

3rd class

Un-classi-fied

Rpt Grad-uating

Total

CSE 2 23 38 9 5 3 78 81

ABC 2 29 30 3 4 6 68 74

CSE 2% 28% 47% 11% 6% 4% 96% 100%

ABC 3% 39% 41% 4% 5% 8% 92% 100%

Table 2 and Table 3 below shows performance of year 1-3 students

as reflected by the semester 1 assessment cycle results

Table 2: Year 1 to 3 Performance as indicated by the student

progression per programme

Programme Year 1 Year 2 Year 3

BSc(Hon) Appllied Business Computing 97% 83% 93%

BSc(Hon) Computer Systems Engineering 98% 85% 98%

BSc(Hon) Business Intelligence and Data Analytics

100% 100% 100%

BSc(Hon) ICT 96% 90% -

BSc(Hon) Mobile Technologies 100% 91% 100%

BSc(Hon)Network Computing - 100% -

Progression from one semester to the next was above 90% for all programme levels except for year 2 of the BSc (Hon) ABC and the BSc (Hon) CSE. Nevertheless, progression in these two programmes was above 80%.

Table 3: Average Progression rate per academic year across all programmes

Level Average

Year 1 98%

Year 2 92%

Year 3 98%

Performance of year 4 students as indicated by progression percentages from the first to the second semester was good, averaging 87%; This excluded students who had referred modules. The figures compared well to the final planned target of 85% as a minimum. SCIS Year 4 Student Progression from semester 1 to semester 2 2018/19

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Table 4 Semester 1 Performance for the 2018/19 academic year for Year 4 students

YEAR 4 2018/19 Semester 1 (June - Dec 2018) results summaries

BSc (Hons) Applied Business Com-puting

Module Count Pass Refer Repeat module % Pass Rate

CET 351 47 46 1 0 98%

CET311 47 46 1 0 98%

CET308 50 47 3 0 94%

Totals 144 139 5 0

Average 97%

BSc (Hon)Computer Systems Engineering

Module Count Pass Refer Repeat module %pass rate

CET351 38 33 5 0 87%

CET311 38 38 0 0 100%

CET313 38 28 9 1 74%

Total 114 99 14 1

Average 87%

Average pass rates of 97% and 87% for the BSc (Hon) Applied Business Computing (ABC) and the BSc (Hon) Computer Systems Engineering (CSE) respectively, in the first semester reflected a high confidence towards achieving the minimum graduation target of 90%.

New business developmentThe BAC ICT Skills Centre engaged with Botswana telecommunications Corporation Limited (BTCL) to train another batch of f BTCL‘s employees on CISCO CCNA programmes. In addition, the Skills Centre trained 19 staff members of the Botswana Government Ministry of Transport and Communication as well as 160 CIPS students in Microsoft applications and SAP Fundamentals.

Research / consultancy performanceSCIS published three research papers and one staff member of the school presented their research at International Conferences. This met the minimum set targets and progressed very well. There has been indication of an interest to broaden the scope of this research.

Eight (8) Final Year students had their research work on the Research module identified for potential publication in the University of Sunderland Journal. Ultimately five (5) out of the eight selections were published.

Human capital developedThe SCIS conducted a Capacity building research workshop that was attended by the entire SCIS team. The workshop was facilitated by Professor Twala of the University of Johannesburg driven by an external facilitator. Research focused presentations were made by industry stakeholders at the workshop.

One staff member successfully completed her PhD studies, and was awarded her PhD degree.

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SCHOOL OF FINANCE AND PROFESSIONAL STUDIES

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Mandate of School, brief overviewThe mandate is to produce competent business professionals to drive economic growth and diversification globally. The School strives to inculcate professional excellence, leadership skills, lateral thinking and ethical values in our graduates through a highly competent and dedicated staff compliment. The School continues to pursue academic excellence through provision of professional programs that are key to the growth and diversification of the economy. The programmes are offered through collaborative partnerships that include BICA, ACCA, CIMA, AAT, CIPS, Professional BA(Hons) Insurance, CIA-Certified Internal Auditors and PGDT-Post Graduate Diploma in Taxation.

Key achievementsTeaching performanceAs at 31st March 2019, the school had a total enrollment figure of 1606 Students. This number is higher when compared to prior enrollment of 1369 as at 31st March 2018. The increase in student numbers is largely attributed to the exponential growth in the CIPS program and introduction of the Professional BA (Hons) in Insurance.

Progression and graduationOverall student progression rate ranged between 76% -

100%, with AAT being at the lower end and PGDT at the higher end. The school has a target progression rate of 70%. Graduation rates ranged between 67% - 100% with AAT being at the lower end and PGDT at the higher end. The reason why AAT is sluggish is due to AAT curriculum and upskilling of Lectures on time to align that facing with changes, need to enrol more students with higher point at entry level.

The table below show the graduate number between April 2018 and March 2019.

Table 1

As at March

PROGRAMS

AAT Gabo-rone

AATFrancis-town

ACCA CIMA BICA PGDT CIA TOTAL

2019 66 30 22 9 2 42 1 170

From the MEQ’s feedback conducted during the mid-semester 2, the general conclusion is that students are dissatisfied with certain services, largely to do with the quality of facilities such as Library, Wi-Fi connectivity and speed as well as lack of amenities in the rest rooms etc. Most students reported satisfaction with the delivery of the programmes.

AccoladesThe School continues to position itself as the preferred study support destination for professional business courses. For the period under review, the school received two new awards, as follows: internally, was awarded the Most Improved Academic department and externally, one tutor (Ms Sylvia Segone) was awarded the AAT 2018 best international Tutor of the year.

The school is also proud to have maintained the ACCA platinum status and CIMA premier partner for achieving set standards of academic performance as per the ACCA and CIMA requirements respectively.

New business developedIn response to the demands of the labour market for

SCHOOL OF FINANCE AND PROFESSIONAL STUDIES

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qualified insurance professionals, the School introduced the Professional BA(Hons) degree in Insurance. This is offered at Gaborone campus; a total of 56 students were enrolled, versus a budget of 50 students. To broaden access to education, the School extended its offering by introducing the CIPS Program at the Francistown campus and enrolled 50 students versus a budget of 40 students.

Human capital developedThe School attended various teaching capacity building workshops locally, regionally and internationally to support the effective delivery of new and revamped curriculums of various professional bodies. Selected staff also attended the BQA RPL (Recognition for Prior Learning) training in pursuit of academic excellence and compliance with new

regulations. To improve standards of quality in teaching, the School has devised a strategy for team teaching and its effects are evident in student performance and feedback.Four of our staff are studying towards attaining masters’ degree in Accounting and Finance with various Universities and are nearing completion. One staff member has successfully completed the CFA (Chartered Financial Analyst) Program and has since been recognised a CFA Charter-holder by the awarding body. Continued and sustained development of Finance Professionals underpins the School strategy to roll out new investment programs over the next two years.

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SCHOOL OF BUSINESS AND LEISURE

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Mandate and overviewThe School of Business and Leisure (SBL) provides relevant, skilled and qualified personnel for the labour market in Botswana and beyond in the Tourism, Finance and Business service sectors. SBL advances knowledge and skills in the above sectors through excellence in teaching, research and engagement. The School prides itself in promoting a vibrant, high-performance culture that is results oriented.

The School is anchored in a collaborative model for providing Undergraduate (UG) degree programmes, where it works in partnership with two universities – University of Derby and Sheffield Hallam University. These universities award the Honors degree qualifications offered by the school.

Below are the Programmes offered by SBL: BA (Hons) Accounting and Finance; BA (Hons) International Finance and Banking; BA (Hons) Business Management; BA (Hons) Entrepreneurship and Business Leadership; BA (Hons) International Tourism Management and BA (Hons) International Hospitality Management.

Currently the School of Business and Leisure offers Leisure programmes only in Francistown, Gerald Estate. Leisure and business programmes are offered at the Gaborone campus.

Key achievementsIn March 2019 SBL had a total enrolment figure of 1202 Students. This figure shows a slight increase of 7% in numbers, compared to prior enrolment of 1122 (as at 31st March 2018). The leisure portfolio accounts for roughly 25% of the student population. Enrolled students in the reported period pursued their studies in a fulltime basis.

Teaching, progression and graduation performanceTable 1 below shows that the progression rates per module were above target. The individual module performance was pleasing. Student progression from one year to another continues, on average, to be above 90%. The School continues to strive to minimize failure, retakes and discontinued students’ rates through assurance of learning (AOL) campaigns. As has been the norm, the full profile of students reported at the end of the academic year.

SCHOOL OF BUSINESS AND LEISURE

Table 1: Summary of student progression, end of semester 1 (Sept-Dec 2018)

No Programme Year 1 Year 2 Year 3

1 BA (Hons) Accounting and Finance 98% 96% 97%

2 BA (Hons) International Banking & Finance

92% 90% 99%

3 BA (Hons) Entrepreneurship and Business Leadership

88% 97% 92%

4 BA (Hons) Business Management 96% 99% 92%

5 BA (Hons) International Tourism Manage-ment Gaborone

93% 91% 98%

6 BA (Hons) International Tourism Manage-ment Francistown

99% 94% 95%

7 BA (Hons) International Hospitality Management

93% 94% 97%

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As shown in table 2 below, the graduation rate stood at an impressive 94% throughput above target of 90%. At the December 2018 graduation, a total of 370 students graduated with varying degree qualifications. Of these, 279 had and upper second-class division or better. Finance and Banking programme had the first cohort graduating in the 2018 graduation with seven (7) first classes.

From the MEQ’s feedback conducted during the mid-semester 2, the general conclusion is that students are satisfied with the quality and delivery of the programmes. The dissatisfaction can be noted in the quality of facilities such as 24-hour access to the library, Wi-Fi connectivity and speed as well as lack of ample space for reading and relaxing including sports, etc.

Research and consultancy performanceInnovation and development are linked with our research engagement. Academic research work is on the increase in the School. The research themes were in three categories namely; 1. Entrepreneurship, Business Management and Tourism. SBL academics procured research outputs in a diverse range of areas, from peer reviewed journals, paper publication to being invited for guest presentations. In total the research output for the school consisted of three articles, three journal editorship; three conference presentations; one monograph; seven book chapters and book reviews.

A total of 108 UG student dissertations were successfully supervised and completed. July 2018 saw SBL hosting an

academic conference in partnership with Sheffield Hallam University (SHU) on Entrepreneurship and Innovation for Economic Diversification and Local Development, which was a success.

Community engagement performanceA total of six academic staff participated in external examination, and nine invited to make presentations at various forums.

Students continue to participate in business society clubs arranged and supported by SBL staff. International Finance and Banking Student Society held a competition, with judges from the banking industry. During July 2018 SBL students participated in industry engagement with LEA, including provision of consultancy services for local businesses. These initiatives elevate the employability of students.

Human capital developedDuring the year, three workshops were held to foster existing knowledge in case study teaching, marking and Assurance of learning.

Table 2: Summary of graduation numbers;

No Programme Enr. Grad. 1st 2.1 2.2 3rd

1 BA (Hons) Acc and Finance 96 91 8 22 29 21

2 BA (Hons) Int. Banking & Finance 55 52 7 13 23 5

3 BA (Hons) Ent. and Business Leadership 72 67 3 26 29 6

4 BA (Hons) Bus. Management 66 61 1 17 30 10

5 BA (Hons) International Tourism Management 85 78 1 25 29 9

6 BA (Hons) Int. Hospitality Management 18 18 1 10 5 -

Total 392 370 21 113 145 51

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SCHOOL OF POST-GRADUATE STUDIES

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Mandate and overviewThe mandate of the School is to develop the human capital of the country and the wider region through the provision of postgraduate related education and training, supported by consultancy services, research and innovation. The mandate of the School therefore includes the provision of corporate learning and is responsible for work-based learning solutions through training of employees. The School strongly supports lifelong learning and has customized its education and training agenda with that in mind.The School offers masters’ degree programmes,

postgraduate certificate and diploma, as well as a host of non-credit bearing training programmes. The masters’ programme include MSc Strategic Management, MSc Project Management, Executive MBA, and MA Procurement and Logistics Management.

Key achievementsIn March 2018, total enrolment on the masters’ programmes was 199 students for all the four programmes on offer. This is shown in table 1. Strategic management continues to enrol the largest intake, followed by Project Management.

SCHOOL OF POST-GRADUATE STUDIES

Table 1: Student enrolment as at March 2019

Table 2: Progression by programmes in continuing cohorts

Programme Date Enrolled # of Students

1. Master of Business Administration October 2018 23

2. MSc Strategic Management July 2018 65

3. MSc Project Management December 2018 32

4. MA Procurement and Logistics Management October 2018 o

Total# of students enrolled= 120

MA Procurement and Logistics Management did not enroll any students. Nine applications have been carried over into the next academic year October 2019. The budgeted intake is 30 students. Marketing activities, both in the country and in the re-gion, will be increased to meet the targeted number of students.

Student progression

Programme Date Enrolled # of Students

1. MSc Project Management 2016 December 2016 48

2. MSc Project Management 2017 December 2017 37

3. MSc Strategic Management June 2017 66

4. Master of Business Administration October 2017 27

5. MA Procurement and Logistics Management November 2017 35

Table 2 shows the students starting with the Masters programmes in 2016/17 and continuing with their studies. It illustrates that retention rate is very high in all four programmes. This may be due to the duration of study, with the duration being between 18 and 24 months.

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Table 3: graduation throughputs by programmes

Table 4: Student enrolment as at March 2018

Table 5: Short course completion statistics

Table 6: Training Offered (non-credit bearing courses)

Graduation 2018Between April 2018 and March 2019, total graduation and throughput from the masters’ programmes stood at 59 students, against an expected 80 students. Candidates who did not graduate reenrolled to continue with their studies, usually it is to finalise their research dissertation.

Year MSc SM MSc PM MSc ITM Total

Dec 2018 41 12 6 59

Corporate Learning and LeadershipBetween March 2018 and April 2019 total enrolment on the short programmes was 488 students, across all five programmes offered. Table 4 shows a summary.

Programme # of Students

PGC ERM 306

PGC PSPM 38

PGC IF 7

CERT PSPTPM 80

CERT FFNFM 57

Total 488

Overall, the budgeted numbers for the short courses were realized in only one programme; i.e., the PGC - ERM. All the other missed the budgeted target enrolment numbers. This could be a result of weak marketing that missed the target groups. Completion has also increased in short course offerings in some of these areas.

Completion rate in the short courses remains high. Table 5 shows that the number of students starting short courses is completing.

Year PGC ERM PGC PSPM PGC IF CERT PSPTPM CERT FFNFM Total

2018/2019 283 31 7 57 51 432

Over the year, the School trained for different corporate entities. This included BITRI and the Mineral Development Company of Botswana.

Organization Training Offered

BITRI Finance for Non-Finance Managers

Mineral Development Company Botswana Introduction to Risk Management

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Research PortfolioThe School has published its first Book of Abstracts. The Book comprises abstracts from the best Research work from our MSc Strategic Management cohort 2017 students.

The School also held a Research Ethics training for dissertation supervisors. This was held in February 2019. This is part of capacity development for project supervisors.

QUALITY ASSURANCE

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QUALITY ASSURANCEThe Quality Policy Statement:BAC aims at advancing quality knowledge and skills in business education through teaching and learning, research and community engagement. We are dedicated to the continuous improvement of our products, services, the college and the quality system itself through process controls, employee empowerment and management commitment to quality.

Quality assurance goalsQuality assurance at the college is a systematic approach that maintains a comprehensive framework to enable the college to achieve the following goals:

• Enhance compliance with statutory, regulatory and contractual requirements• Ensure customer satisfaction through meeting customer requirements• Promote a culture of continuous improvement and ensure relevance to the market needs and economic requirements.• ensure relevance and employability of graduates.

Internal and External Validation1. Partner universities conduct annual validations of teaching aids and learning environment at both Gaborone and Francistown Campus

2. Quality of teaching is assured annually by the three partner universities (University of Derby, University of Sunderland and Sheffield Hallam University) using due diligence processes

3. Professional bodies ACCA, CIMA and AAT also conduct annual assessments for renewal of partnerships

4. Botswana Qualification Authority conducts Annual Audits to ensure compliance to regulatory requirements.

5. The internal quality assurance department does customer satisfaction surveys and internal quality audits to assure and enhance quality for the college operations.

Scope of the quality management system. The college primarily engages in the development, delivery, monitoring and evaluation of BQA accredited tertiary learning programmes. It also engages in delivering externally developed (franchise) programmes registered on the Botswana National Qualification Framework. In our operation we endeavour to respond to the national skills development strategies prescribed in the National Human Resources Development Strategy and the needs of the industry.

Our operations at Gaborone and Francistown are conducted in compliance with the statutory and regulatory requirements. Contractual obligations in the MOUs signed with our strategic partners and suppliers are observed in the quality system’s frameworks.

The college has embarked on its trategic initiative to implement and obtain certification for ISO 9001-2015 Quality Management System by the end of 2020. Implementation and operation of this Quality Management System will give the college an opportunity to optimise all its processes and enhance evidence- based decision making at all its levels of operation. 43

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OFFICE OF THE REGISTRAR

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OFFICE OF THE REGISTRARThe office of the Registrar is an active, dynamic office that provides central services to administrative and academic units as well as Botswana Accountancy College’s over 5000 students and more than 11,000 alumni.

We exist for the followingWe strive to provide personalized attention while serving the vast number and variety of constituents on campus. We have a keen appreciation for the role our office plays in supporting critical College initiatives. In that light, our major focus is on how we can be a major contributor to BAC’s initiatives and do so in a way that balances innovation with preserving the accuracy and integrity of the student records which we are the custodian of.

In recognition of the importance of each person we serve, we hold the trust and confidence of students, academic teams and staff for our quality of work, collaborative solutions and administrative foresight.

We care for our employees by promoting a friendly and stimulating office environment with opportunities for professional development.

Our MissionOur mission is to provide the student with a business school environment and experience that will assist the academic departments in their efforts to produce well rounded individuals who will occupy outstandingly well the leadership positions for which their studies have equipped them.

Services offered1. Maintain the permanent academic records for all schools in the College, including registration (initial and changes), processing grades recording degrees granted for all students past and present.

2. To maintain the College official course inventory 3. To recruit, admit and enrol students for classes across the schools4. Management of student information and provide

academic transcript service to all current and former students.5. To ensure the accuracy, preservation and privacy of institutional and student academic records6. To manage examinations, publish results and releasing of transcripts7. To produce and publish academic calendars8. To interpret and enforce academic policies9. Provide on request service and assistance to other administrative users of the Student Information, including assistance with data interpretation and understanding, query programming and the scheduling and production of reports.10. Organise welcome sessions for first year students11. Manage Alumni Association and conduct Tracer studies

Achievements (April 2018-March 2019)1. Successful introduction and implementation of student life fees2. Successful roll out of the Insurance degree program

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LIBRARY AND INFORMATION SERVICES

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LIBRARY AND INFORMATION SERVICESThe BAC Library mission is to support research, teaching and learning by ensuring the provision of quality information products and services which enable our clients to leverage their academic and professional performance.

The library strategic goals• Develop a focused, core collection of print and electronic resources to support instructional and research needs.• Improve the quality and relevance of the collection by systematically assessing the information resource needs of the academic community• Enhance access to information resources by utilizing information communication technologies.• Provide a comprehensive bibliographic instruction program to graduate students with information literacy competencies.

Support programs provided to studentsInformation literacy skillsThe information literacy program develops 21st century information and technology competencies in students and research skills for lifelong learning. Information literate students can find, evaluate and use information effectively to solve problems and make decisions. Through this program the library:

• Introduces new students to the complexities of BAC library facilities. E.g. On-line membership registration, online book loans etc.• Familiarizing students who have little or no information seeking skills with a broad range of library resources.

Awareness Through social mediaStudents are informed of newly acquired resources and services. Through the various social media platforms. Students can also contact the librarian for pertinent

questions through these medias.

Selective Dissemination of Information (SDI)The library circulates current publications to academics on their areas of interest. This service ensures regular alerts on new information on their chosen topics.

Operating HoursMon-Fri: 0800-1700Extended operating hours: 1700-2100 (exam period only, dates TBC)Contact us Physical address: Plot 50370, Twin Towers East Wing, 2nd floor.(Gaborone)

Moffat Street, Plot 31403, (Francistown)Tel: 3980873/874/875/899Email: library@bac.ac.bwFacebook: Botswana Accountancy College Library

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STUDENT SUPPORT AND WELFARE

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STUDENT SUPPORT AND WELFAREThe SSW Department exists to provide an array of services in order to facilitate good quality of life and student experience in BAC. This ensures that students are nurtured to be well rounded graduates by the time they leave the College. The world continues to embrace learning outside the lecture rooms as an integral part of the education system hence the need for BAC to continuously strengthen its student experience initiatives.

The Department offers both proactive and preventative holistic psycho- social support to students through professional counsellors with the aid of trained peer educators. This enhances students’ social lives thus facilitating sound academic functioning as well as enhancing coping strategies.

The campus clinics offer health services to the students to meet their demands and needs in a youth friendly setup. Promotion of health and wellness is done through various interactive initiatives that encourage students to be responsible for their wellbeing and adopt healthy ways of living.

Students who reside on campus are inducted on what is expected of them, BAC procedures as well as rules and regulations governing their stay to ensure that they co-exist with each other in the hostels in a civil manner. This promotes positive social interactions, opportunities for co- dependence and good interpersonal skills.

The democratic process of Student Representative Council elections has always been a pivotal function of the BAC governance system. The Council in collaboration with SSW Department implement activities geared towards student experience. The SRC acts as a link between the BAC Management and students.

Sports and Recreation initiatives help in promotion of health and wellness, fostering the spirit of positive competition as well as building of relationships with fellow learners from other tertiary institutions. It encompasses both sporting and social clubs for students.

The Department has been working on HIV/ AIDS initiatives that aim at providing health education, availing regular HIV screening as well as making referrals where necessary. This has been a very much welcome initiative amongst the student community.

The Department supports leaners living with special needs through provision of relevant resources, guidance and facilitating development of appropriate infrastructure to meet their needs.

Inclusion of the student experience objective in the BAC refreshed strategy is seen as a step towards enhanced and excellent student experience as it calls for the entire College to join hands and address students concerns.

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HUMAN CAPITAL

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HUMAN CAPITALThe Botswana Accountancy College recognizes that Human capital is critical and central to delivery of its mandate of being an internationally renowned business school that produces quality students through enhanced student learning experience. During the year under review the College reviewed its organizational strategy to be more people centred. BAC continued to thrive to create attractive employee brand aimed at optimizing the full potential of human resources.

The College managed to attract skilled personnel across all cadres and channelled significant resources towards workforce development to enhance staff capabilities in order to attain the envisaged student learning experience and quality of students. The College also recognized the importance of engaged and motivated workforce and has undertaken various initiatives aimed at ensuring a conducive staff environment is cultivated. Staff Engagement through quarterly General Staff Meetings and fortnightly departmental meetings remained critical and ensured that staff were meaningfully engaged in driving the business of the college.

As of March 2019, BAC operated with 89.5% staff complement, being a total staff complement of 230 employees out of an approved establishment of 257. This was made up of 90 academic staff and 140 support staff. During the year the College recruited a total of twenty-six new employees. The college experienced a slightly higher turnover for the year of 6.52% against a yearly target of 5%, being a total of fifteen employees who left the College for various reasons. The College completed the Organisational Review exercise in March 2019 for implementation in April

2019. The project entailed the development of job profiles and evaluating them as well as the development of an appropriate pay and benefits structure. The implementation of the organizational review exercise is expected to enhance equity and fairness, consequently catapulting the college towards ingraining the culture of high performance. A more comprehensive recognition and reward policy will also be developed to facilitate retention of key talent which could culminate in the reduction of attrition rates.

The College operated with a fairly normal age distribution with majority of staff being aged between 26 and 49 across all cadres. All the new joiners during the year were in this age group. It worth noting that, the age distribution for both academic staff and support staff was skewed towards the younger population in the 35 – 44 age group, and for the academic staff a high proportion in this age group was on the junior academic staff cadre.

The college continued to develop its staff through short term skills development initiatives including training and conference attendance. In addition, a total of six middle managers underwent the Management Development Programme with the University of Stellenbosch to build capacity in leadership and management. A further two senior managers went through the Executive Development Programme with The WITS University Business School.

Two employees were offered scholarships for pursuit of Doctoral studies during the 2017/18 period but had not been placed during the year under review. The College proceeded to award five scholarships slots for the year 2018/19; three for PhD and two for Masters.

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FACILITIES

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FACILITIESFacilities Management coordinates all estate and facility-related services. The department oversees the operational activities that maintain and run the physical and logistical facets of the campus. It includes management of the use of our space, utilities and maintenance in order to enhance the quality of physical facilities to support both student learning and living experience. The aim is to meet administrative needs of the college from facilities management purview. Some of the projects undertaken by the college under facilities department during the financial year 2018/19 included the following;

Student outdoor sitting areaIn order to improve the quality of students’ life outside the learning area the department with the engagement of the student community constructed a student sitting area which is fully furnished leisure chairs. As at year end the department was working on installing a TV set and snooker at the outdoor sitting area. In addition, supplementary outdoor sitting chairs and tables have been provided within the Gaborone campus.

Refurbishment of Computer LaboratoriesThe project addressed issues related to Safety Health Environment (SHE) in the learning environment. The project involved reorientation of student’s computer tables to ensure they face the lecturers operating area.

In addition to the above the college has also undertaken a project on Infrastructure development Master Plan which is expected to serve as a basis for infrastructure development decision making. The plan will further ensure coordinated infrastructure development and re-development geared towards meeting space demands as well as contribute to the overall BAC strategic intent.

The department also continued to proactively carry out scheduled and reactive maintenance and repairs to ensure the quality and condition of infrastructure and facilities is always maintained for better experience by the users.

By the end of the financial year, the Board of Directors had approved development of Plot 61922 in Fairgrounds Gaborone through partnership model. This will provide the much needed capacity to cater for the expansion of the institution as we continue to receive more students and employees. The development also provides opportunity for additional amenities and services for both students and staff.

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INFORMATION COMMUNICATIONS TECHNOLOGY

INFORMATION COMMUNICATIONS TECHNOLOGY

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INFORMATION COMMUNICATIONS TECHNOLOGYInformation Communication Technology is the driving force of every organization in the modern business world. The ICT at BAC is a key enabler in the core service delivery value chain as well as a tool for efficiency and effectiveness of the organisations end to end processes. The College is continuously embracing new technologies and use them to deliver business products and services. ICT infrastructure is a key component which was highlighted as a key strategic lever for attainment of the College mandate. The emphasis was more specifically on enhancement of student teaching and learning experience through deployment of various ICT solutions.

During, the period under review the College undertook several initiatives aimed at ensuring that the organisation does not only attain efficient processes through automation but also ensured that there was service availability and necessary risk mitigation.The ICT Department leverages different partnerships across the industry for an effective and efficient service delivery and innovative solutions that facilitate business. Some of the key initiatives and activities undertaken during the year covered the following;

Upgrade of internet bandwith and wireless connections2018 saw the upgrade of WIFI connections for use by the Students and staff. The internet bandwidth was also upgraded from a shared 100MB (Gaborone and Francistown) to 285MB (Gabs) and 70MB (Francistown) dedicated Metro connection.

Following the introduction of the online learning for students and staff, the ICT Department developed an online application form to allow students to apply for programmes online, and students are continuously enrolling on the online learning platform. The College encourages its students and the public to use the platform as it gives them the opportunity and convenience to study online at the comfort of their homes or workplaces.

WebsiteBAC Website is a secure platform for students, staff and the public to obtain information on the college. Through the BAC website, the Institute was able to reach out to a lot of people and we are now confident that the website has helped the college in spreading education on our programmes. The ICT department working in conjunction with Marketing had throughout the year ensured that the website is regularly updated with the latest information and general news.

Implementation of Integrated Student Management System (SIMS) and ERP SolutionThe Institute embarked on the development of a SIMS-ERP solution that is expected to bring significant integration between systems and processes for efficient delivery of services including. The development of the integrated solution is still at an infancy stage but the groundwork has started with the initial development of high level processes as benchmarked with on other institutions in the region.

MARKETING AND CORPORATE COMMUNICATIONS

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MARKETING AND CORPORATE COMMUNICATIONS

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MARKETING AND CORPORATE COMMUNICATIONSMarketing & Corporate communications function supports the institution by positioning it as a symbol of business excellence renowned for provision of quality tertiary education through internationally recognised programmes to build globally competitive graduates. The department is responsible for promoting the mandate of the College, its vision, mission and programmes.

The department has achieved this mandate through a set of activities that form part of an integrated marketing & corporate communications strategy. The plan is aimed at managing brand reputation; creating and transmitting coherent and cutting-edge communication to both internal and external stakeholders to uphold the BAC brand. Market research is a fundamental instrument for gaining insight on industry trends locally and internationally for continuous growth of the brand. As a result, regular industry engagements provide intelligence for the design and development of well-informed promotions, enhanced brand image and improved customer experience.

Through the Corporate Social Responsibility Club, the team constantly identifies and considers opportunities to collaborate and support community engagement initiatives to enrich the livelihoods of the people in our communities for an impactful societal impact.

OBJECTIVESThe intent is to position BAC as a market leader in higher education for teaching and learning, profile the BAC brand as top of mind institution that transforms lives for prospective students. The ambition is to increase attraction of students locally and internationally to grow the number of students and bring diversity into the institution. The team also aims to improve stakeholder engagement through partnerships to create synergies that will contribute to the growth of the College.

ACHIEVEMENTSCommunicationTo raise brand and programme awareness, the College has partnered with Campus Focus, a local television programme designed to profile tertiary education institutions on the national television station, BTV. This programme has increased awareness of the BAC brand locally and regionally as BTV has extensive broadcast nationwide and in most Southern African countries. The partnership provided an opportunity for the College to advertise various activities and events including students’ academic practical sessions and seminars.

Profiling of the various schools and departments within the College has provided the audience with insight on the BAC value proposition, the student learning journey as well as extracurricular activities that enhance student learning experience. In April 2018, the Marketing and Corporate Communications department launched a weekly internal publication dubbed “The Weekly Chronicles” to connect with employees and strengthen communication on the College activities. By the end of the 2018/19 financial year 40 issues were published.

Student RecruitmentAs an institution of higher learning, we are mandated to provide a solution towards skills capacity building and human capital development not only to meet the economic needs of Botswana but those of the world. The Marketing & Corporate Communications team in collaboration with the various Schools and the Registry department participated in several recruitment activities. During the recruitment campaigns, prospective students are given detailed information on the College and its programmes, career guidance is offered, and application forms are administered to those who qualify.

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Career fairs across the country were conducted and the schools visited include Legae Academy, Mater Spei College, Ledumang Senior and Moshupa to mention a few where more than 9,000 prospective students were exposed to the BAC brand and programmes. Industry visits were executed to create new opportunities for collaboration, to promote BAC programmes and services. The College also hosted open days in Gaborone and Francistown as part of its marketing strategy to increase the number of privately sponsored students.

Other activities the team participated in during the year include Business Botswana Northern Trade Fair, Consumer Fair, HATAB Conference, Eswatini International Trade Fair, Global Expo, Botswana Human Resources Development Career Fair & Clinics in Gaborone, Maun and Francistown as well as the National Roadshow that took place in March 2019. During these exhibitions and fairs, current students and Alumni participated, and they were afforded a platform to showcase their projects to give them exposure to market their projects and services.

Corporate SponsorshipsIt was a great privilege to be selected as one of the beneficiaries of the prestigious Barclays Dr F.G. Mogae Scholarship for the 2018/2019 academic calendar. This was a result of engagements with the bank on scholarships and or availability of facilities to support student learning. The scholarship is awarded as part of the Bank’s Citizen-ship strategy and aligned to the Vision 2036 to transform Botswana into a knowledge base society hence the focus is on post-graduate studies.

Recipient students who qualified demonstrated academic excellence and participated in social responsibility activities to empower fellow nationals. More emphasis was placed on those with financial need to achieve their academic goals, thereby contribute to the development of the country. Eight Scholarships were awarded for Postgraduate programmes in Master of Science in Project Management, Master of Arts in Procurement and Logistics Management and Executive Master of Business Administration.

EventsIn September 2018, the Francistown Campus celebrated its 10th Anniversary with great fanfare. The event was honoured by the Assistant Minister of Tertiary Education Honorable Fidelis Molao, Francistown City Mayor Mrs. Sylvia Muzila, BAC Board Members, Management and Staff, Francistown Council Members, Industry, students and BAC alumni to celebrate the campus achievements.A total of 649 graduates were conferred during the Class of 2018 Graduation Ceremony to commemorate their academic achievements in December. The event was hosted in collaboration between BAC and its partner universities, University of Derby, University of Sunderland and Sheffield Hallam University who awarded the qualifications.

The BAC Alumni Association was officially launched by the Patron of the Association, a former BAC student the Accountant General, Ms. Emma Peloetletse who is also a BAC board member. The Association was formed to stimulate and cultivate mutually beneficial interaction amongst the alumni, current students and the College with the aim to cultivate a spirit of loyalty and to promote the general welfare of the College through their participation. The association is expected to foster relations between the College and industry as well create a link between classroom and industry. With this link, its members are expected to assist in building a customer centric culture, thereby improving the teaching and learning outcomes.

The College hosted its inaugural academic conference in collaboration with Sheffield Hallam University at the BAC Main Campus in July 2018 themed ‘Entrepreneurship and Innovation for Economic Diversification and Local Development’. The conference attracted participation from international academics, government leadership and industry which celebrated the BAC stakeholder engagement and made way for new opportunities for partnerships.

In collaboration with the School of Computing and Information Systems (SCIS), Breakfast Seminar was held where stakeholders in the ICT sector convened to discuss

issues around curriculum in relation to the job market requirements and other areas of collaboration. In promoting stakeholder engagement and opening opportunities for new collaboration, an Executive Director’s Networking Cocktail was hosted in June 2018 with attendance of CEOs and Managing Directors specifically in the Fairgrounds area.

Student EngagementThe BAC Student Start-Up Competition in partnership with Botswana Investment & Trade Centre (BITC). The objective of the competition is to promote the spirit of entrepreneurship amongst BAC students to promote multiple job creation pathways to address youth and graduate unemployment as well as grow the private sector of the economy.

The 2018 BAC Investment Battlefield winners are final year BA (Hons) Entrepreneurship and Business Leadership student Mr. Mothusi Matobo. Mr Matobo won the first

prize, receiving P25,000.00 business start- up capital. His Aquaponics Business recycles water between a fishpond and crops thereby reducing the need for fertilizers and other costs. Final year BA (Hons) Accounting and Finance student Ms. Gobe Tapela’s Fit Mate business received P15,000.00 for first runner up for a children’s gym project. Mr. Bonno Motswaiso third year BSc. (Hons) Computer Systems Engineering student got P10,000.00 for his online shopping business as sec-ond runner up. The competition will be an annual event.

Promotion of the importance of Libraries in an academic setting was showcased through a series of activations during the inaugural Library Week themed “Libraries Lead”. The campaign was held in February and March 2019 at the BAC Main Campus in Gaborone and the Francistown Campus respectively. The purpose of the Library week commemoration was to raise awareness on Library Services and how they facilitate and support teaching, learning and research in the College.

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CORPORATE SOCIAL INVESTMENT AND SUSTAINABILITY

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CORPORATE SOCIAL INVESTMENT AND SUSTAINABILITYSUMMARYAs a centre of knowledge generation and sharing, Botswana Accountancy College (BAC) Corporate Social Responsibility initiatives play an important role in providing solutions for challenges in society to ensure a sustainable future for the youth as leaders of tomorrow and generations to come. It is essential to collaborate with the community, industry and the government to develop solutions that can make a positive, meaningful and lasting impact on people’s lives.

IntroductionValue creation for a brand takes strong relations and commitment between partners for any organisation to successfully secure full media coverage for various events in the form of sponsorships. The BAC media relations have grown and strengthened over the years. In 2018, the institution attained Public Relations (PR) Value of P167, 044.81 which means that BAC experienced and benefited from P167, 044.81 worth free media coverage for various events and initiatives excluding the 2018 December graduation ceremony.

Events that received significant amount of sponsorships include the graduation, with P133, 909.93 worth sponsorship value received from different organizations, which covered best students’ cash prizes, the valedictorian award and trophies. It also includes free publicity by various media houses. The Executive Director’s Fairgrounds cocktail media coverage included TV, Radio and print as well as décor for the event. Other events that received significant sponsored media coverage include the Research, Innovation and Entrepreneurship Conference, Botswana Institutions Debate Association (BIDA) Debate National Competition and the Francistown 10th Anniversary celebrations. Total media sponsorship value added for the year was 13% of the total External Communication and advertising budget.

Corporate Social InvestmentThe BAC CSI Club launched two initiatives to raise funds and encourage philanthropy amongst employees through Braai Fridays and Winter Donation Drive respectively as part of community engagement. A Memorandum of Understanding (MoU) was signed with International Youth

Fellowship (IYF) during the annual World Education Leaders Forum. The MoU provides opportunities for IYF clubs to be set-up within BAC campuses where BAC students will benefit from the character-building activities. Another MoU was signed with Botswana Telecommunications Corporation (BTCL) to facilitate partnerships on students’ attachment and internships, to support the BAC ICT research and innovation, as well as guest lecturing by BTCL employees.

This year BAC participated in numerous community engagement activities. A Memorandum of Understanding was signed for the adoption of Sebele I Primary School in Molepolole during the 2018 Prize Giving Ceremony which was sponsored with over P10,000.00 to reward academic and non-academic excellence of pupils from an early age to empower tomorrow’s leaders. The sponsorship comprised of cash towards the purchase of the student prizes, overall best students’ trophies and seven computers for the school administration duties as well as to support students learning.

As part of nurturing youth leadership, the College also sponsored the Botswana Institutions Debate Association (BIDA) Competitions in Gaborone and Francistown for Jun-ior and Secondary Schools at Regional and Final levels. In addition, the Corporate Social Responsibility Club collaborated with Student Support and Welfare together with student Peer Educators to contribute learning material and groceries to the White City Day Care centre.

Stakeholder Engagement The College is in a prime business and financial services hub providing students’ op-portunities and convenience to access employers for attachment, internship and em-ployment. In addition, lecturers have the advantage to invite industry experts to give guest lecturers on various subjects and areas of study to provide a practical perspec-tive to their studies. This advantage inspired the College management to host its in-augural Executive Director’s Fairgrounds networking session and received full spon-sorship from the media to cover the event.

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CORPORATE SOCIAL INVESTMENT AND SUSTAINABILITYConsidering the need to stimulate application of academic concepts through industry practice in tertiary institutions, Botswana Accountancy College continually seeks to collaborate with industry to influence and grow all facets centred on students’ learning. The objective is to drive market relevance and readiness of its students to compete in the market and empower them with competencies to provide business solutions.

The College signed a five- year Memorandum of Understanding (MoU) with Monthe Marumo and Company. The MoU forms part of the college’s wider industry and community engagement initiatives aimed at enhancing student-learning experience and promoting excellence as

well as market readiness. The MoU will see best students in the BAC Post Graduate programmes awarded prizes at the graduation ceremony to reward academic excellence. Moreover, students undertaking Short Programmes will benefit from lectures facilitated by Monthe Marumo and Company lawyers on legal modules to impart industry practical experience therefore driving experiential learning.

Another MoU was signed with Botswana Telecommunications Corporation Limited (BTCL) to create attachment and internship opportunities for BAC students as well as for the corporation to support ICT research and innovation projects by students.

SUMMARY OF FINANCIAL RESULTS

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SUMMARY OF FINANCIAL RESULTS

PERFORMANCE HIGHLIGHTSThe Botswana Accountancy College’s annual financial statements for the year ended 31 March 2019 are presented on pages 78 to 112.

In summary, the College achieved the following financial results: Statement of Comprehensive Income• Revenue - The College reported revenue of P225.9 million compared to P181.3 million in the previous year, this was up by P44.6 million or 24.5% year-on-year.

• Costs – Staff costs rose by P18.6 million to P102 million. This growth of 22.4% year-on-year reflects the growth in staff numbers and an inflationary salary increment that was applied across the board. Other administration costs recorded P86 million, representing a significant drop of P2.1 million compared to the prior year. This in line with the Colleges strategic objective of cost containment without compro-mising the quality.

As a result, the College recorded a surplus before comprehensive income of P41.3 million, an improvement of P31.6 million from the prior year surplus of P9.7 million.

Statement of Financial Position• Non-current assets – Non-current assets increased from P101.2 million in the prior year to P108.9 million. The rise of P7.7 million is attributable to acquisitions in the year less the depreciation incurred during the year.

• Current assets - Current assets grew by P33.3 million to P102 million. The increase in the current assets is mainly due to the rise in cash & cash equivalent from P35.5 million to P80.1 million. Whilst Trade and other receivables fell by P11.4 million mainly as a result of the increase in the provision of doubtful debts and a further bad debt write off of P6.0 million.

• Equity – Equity rose from P39.7 million to P73.9 million. This significant in-crease of P34.2 million or 100% was contributed by the accumulated surplus at P37.5 million.

• Non- current liabilities - The College’s long-term obligations have fallen from P48.5 million to P46.8 million. The fall is due to repayments on the liabilities owed by the College and the reduced Government grant. The College did not introduce additional long- term debt to its capital structure in the financial year.

• Current liabilities - Current liabilities stood at P90.1 million compared with P81.8 million in the prior year. The rise of P8.3 million is mainly due to an increase in Contract liability of P4.9 million and further augmented by increase in Trade and other payables of P3.4 million.

Statement of Comprehensive Income Highlights (Millions)

Statement of Financial Position102m108.9m 73.9m 46.8m 90.1m

10m

20m

30m

40m

50m

60m

70m

80m

90m

100m

110m

REVENUEP225.9 M

STAFF COSTSP102M

ADMINISTRATION COSTSP86 M

ADMINISTRATION COSTSSTAFF COSTSOTHER COMPREHENSIVE INCOMEREVENUE

OTHER COMPREHENSIVE INCOME P41.3 M

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FINANCIAL REPORT 2018/19

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GENERAL INFORMATION FOR THE YEAR ENDED 31 MARCH 2019

Registration number: CO1996/328 Business: College provides tuition in a range of internationally recognised business programs. Registered address: Plot 50661, Fairgrounds Office Park Gaborone Postal address: Private Bag 00319 Gaborone

Auditors: PricewaterhouseCoopers Bankers: Barclays Bank of Botswana Limited Stanbic Bank Botswana Limited

Secretary: Desert Secretarial Services (Proprietary) Limited Directors: Dr. S Ndzinge***+ Full year (Chairman) Mr. N Dixon-Warren***+ Full year Ms. S Leburu*+ Full year Ms. E A Peloetletse**+ Full year Mr. J Motshegare**+ Full year Mr. E Moyo**+ (Resigned October 2018) Mr. C P Masena**+ Full year Ms. H C Chilisa**+ Full year Mrs. F S Molefe**+ Full year Mrs. CV Ramatlapeng**+ (Appointed April 2018) Ms. Tebogo Bagopi**+ (Appointed November 2018) *Executive Director **Non-Executive Director ***Independent Non-Executive Director +Motswana

BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) FINANCIAL REPORT FOR THE YEAR 2018/2019

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INDEX TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 CONTENTS Page(s) Statement of directors’ responsibility and approval of annual financial statements 73Independent auditor’s report 74Statement of comprehensive income 78Statement of financial position 79Statement of changes in equity 80Statement of cash flows 81 Notes to the financial statements 82-112The financial statements are expressed in Pula (“P”), the currency of Botswana

BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) FINANCIAL REPORT FOR THE YEAR 2018/2019

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STATEMENT OF DIRECTORS’ RESPONSIBILITY AND APPROVAL OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019

Statement of directors’ responsibility

The directors of Botswana Accountancy College are responsible for the annual financial statements and all other information presented

therewith. Their responsibility includes the maintenance of true and fair financial records and “the preparation of annual financial

statements in accordance with International Financial Reporting Standards.“

The College maintains systems of internal control which are designed to provide reasonable assurance that the records accurately reflect

its transactions and to provide protection against serious misuse or loss of the College assets. The directors are also responsible for the

design, implementation, maintenance and monitoring of these systems of internal financial control. Nothing has come to the attention of

the directors to indicate that any significant breakdown in the functioning of these systems has occurred during the year under review.

The going concern basis has been adopted in preparing the annual financial statements. The directors have no reason to believe that the

College will not be a going concern in the foreseeable future based on forecasts and available cash resources.

Our external auditors conduct an examination of the financial statements in conformity with International Standards on Auditing, which

include tests of transactions and selective tests of internal accounting controls. Regular meetings are held between management

and our external auditors to review matters relating to internal controls and financial reporting. These independent auditors have

unrestricted access to the Board.

Approval of annual financial statements

The financial statements set out on pages 78 to 112 were authorised for issue by the Board of directors on 04 September 2019 and

are signed on its behalf by:

Executive Director Board Chairman

BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) FINANCIAL REPORT FOR THE YEAR 2018/2019

INDEPENDENT AUDITOR’S REPORT To the members of Botswana Accountancy College

Our opinionIn our opinion, the financial statements give a true and fair view of the financial position of Botswana Accountancy College (the “College”)

as at 31 March 2019, and of its financial performance and its cash flows for the year then ended in accordance with International Financial

Reporting Standards (“IFRS”).

What we have auditedBotswana Accountancy College’s financial statements set out on pages 78 to 112 comprise:

• the statement of position as at 31 March 2019;

• the statement of comprehensive income for the year then ended;

• the statement of changes in equity for the year then ended;

• the statement of cash flows for the year then ended; and

• the notes to the financial statements, which include a summary of significant accounting policies.

Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are

further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

IndependenceWe are independent of the College in accordance with the International Code of Ethics for Professional Accountants (including International

Independence Standards) (IESBA Code) issued by the International Ethics Standards Board for Accountants and other independence

requirements applicable to performing audits of financial statements in Botswana. We have fulfilled our other ethical responsibilities in

accordance with the IESBA Code and other ethical requirements applicable to performing audits of financial statements in Botswana.

Key audit matterKey audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements

of the current period. This matter was addressed in the context of our audit of the financial statements as a whole, and in forming our

opinion thereon, and we do not provide a separate opinion on this matter.

BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) FINANCIAL REPORT FOR THE YEAR 2018/2019

PricewaterhouseCoopers, Plot 50371, Fairground Office Park, Gaborone, P O Box 294, Gaborone, BotswanaT: (267) 395 2011, F: (267) 397 3901, www.pwc.com/bwCountry Senior Partner: B D PhiriePartners: R Binedell, A S Edirisinghe, L Mahesan, S K K Wijesena

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Key audit matter How our audit addressed the key audit matter

Impairment of trade receivables

At 31 March 2019, the College recognised net trade receivables

of BWP 12.87 million, after deducting an expected credit loss of

BWP 16.56 million.

The College adopted IFRS 9 - Financial Instruments (“IFRS 9”) to

measure the Expected Credit Losses (ECL) of trade receivables,

for the first time in the 2019 reporting period.

This resulted in a change in accounting policy from an incurred

credit loss basis. The College developed an impairment model to

calculate ECL and changes in the ECL at each reporting date to

reflect changes in credit risk since initial recognition of the trade

receivables.

The College applies the simplified approach and recognises

lifetime ECL for trade receivable balances. Trade receivables have

been assessed on a collective basis as they possess shared credit

risk characteristics, by grouping days past due.

The recoverability of trade receivables is largely dependent on

the financial viability of the customers. Management’s significant

judgment in determining ECL related to historical loss rates.

The determination of ECL on trade receivables was considered to

be a matter of most significance to the current year audit due to

the following:

• the first time adoption of the IFRS 9;

• significant judgement applied by management in the

determination of ECL; and

Our audit procedures included the following:

• We obtained an understanding of and evaluated the design,

implementation and operating effectiveness of the College’s

relevant internal controls relating to credit origination, credit

control and debt collection.

• We assessed management’s ECL impairment model against

the requirements of IFRS 9 and found the model to be

consistent with these requirements.

• We tested the mathematical accuracy of Management’s

ECL impairment calculations and no material differences were

noted.

• We challenged management’s assessment of significant

increase in credit risk from initial recognition which was based

on the debtors aging and historical loss rates that were applied

on the balances.

• We assessed the reasonability of the historical loss rates

used by management by comparing these to past experience

and agreeing the inputs used to prior year working papers and

financial statements.

• We evaluated the completeness and accuracy of the trade

receivables aging report utilised by management in their ECL

calculations at 1 April 2018 and 31 March 2019 and agreed

the inputs to relevant supporting documents. No material

differences were noted.

BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) FINANCIAL REPORT FOR THE YEAR 2018/2019

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Other informationThe directors are responsible for the other information. The other information comprises the information included in the document titled

“Botswana Accountancy College Annual Financial Statements for the year ended 31 March 2019”, which we obtained prior to the date

of this auditor’s report, and the“Botswana Accountancy College Annual Report 2019”, which is expected to be made available to us after

the date. The other information does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assurance

conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit,

or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to

report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the financial statementsThe directors are responsible for the preparation that give a true and fair view of the financial statements in accordance with International

Financial Reporting Standards, and for such internal control as the directors determine is necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the College’s ability to continue as a going concern,

disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either

intend to liquidate the College or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,

whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,

but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these financial statements.

Key audit matter How our audit addressed the key audit matter• the magnitude of the ECL and the impact on the financial

statements.

Disclosures with respect to the application of IFRS 9 in determining

the ECL are disclosed in:

• Note 1.1.1 (a) “Changes in accounting policy”

• Note 2.1 (b) “Financial risk management”-Credit Risk

• Note 11 “Trade and other receivables”

• We evaluated the financial statement disclosures of the trade

receivables against the requirements of IFRS 9 and found no

material inconsistencies. In doing so, we considered the

following:

- judgements and assumptions applied by management;

- the classification of trade and other receivables on the date of

initial application of IFRS 9; and

- the impact of the transition to IFRS 9 on the opening balances

relating to trade receivables and retained earnings.

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As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the

audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform

audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our

opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud

may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the College’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures

made by the directors.

• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence

obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the College’s

ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our

auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.

Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or

conditions may cause the College to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the

financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit

findings, including any significant deficiencies in internal control that we identify during our audit.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial

statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or

regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not

be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public

interest benefits of such communication.

Individual practicing member: Sheyan Edirisinghe GaboroneRegistration number: 20030048 26 September 2019

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STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2019

Notes 2019 2018

P P

Revenue 4 189,093,878 153,266,945

Other operating income 5 36,790,609 28,016,681

225,884,487 181,283,626

Administrative expenses 6 (188,039,710) (167,299,326)

Net impairment gains/(losses) on trade receivables 2.1 3,748,691 (3,227,945)

Operating surplus 41,593,468 10,756,355

Finance income 7 121,810 72,935

Finance costs 7 (368,819) (1,093,537)

Surplus for the year 41,346,459 9,735,753

Other comprehensive income

Items that may not be reclassified to profit or loss

Gain on revaluation of properties - 6,541,855

Total comprehensive surplus for the year 41,346,459 16,277,608

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STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2019

Notes 2019 2018 P PASSETS

Non-current assets

Property, plant and equipment 9 108,602,769 100,809,762

Intangible assets 10 297,801 489,951

108,900,570 101,299,713

Current assets

Trade and other receivables 11 21,828,587 33,202,242

Cash and cash equivalents 12 80,129,652 35,509,974

101,958,239 68,712,216

Total assets 210,858,809 170,011,929

EQUITY

Revaluation reserve 35,901,749 37,002,940

Accumulated surplus 37,547,697 2,682,501

Student reserve 469,820 - 73,919,266 39,685,441

LIABILITIES

Non-current liabilities

Government grants 13 43,030,920 43,899,393

Borrowings 14 3,810,694 4,633,467

46,841,614 48,532,860

Current liabilities

Trade and other payables 15 38,795,403 35,417,067

Contract liabilities 16 49,611,530 44,672,926

Government grants 13 868,417 868,417

Borrowings 14 822,579 835,218

90,097,927 81,793,628

Total liabilities 136,939,543 130,326,488

Total equity and liabilities 210,858,809 170,011,929

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STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2019

Note Student Revaluation Accumulated Total equity reserve reserve surplus P P P P

Balance at 01 April 2018 - 31,562,276 (8,154,443) 23,407,833

Comprehensive income for the year

Surplus for the year - - 9,735,753 9,735,753

Other comprehensive income

Revaluation surplus - 6,541,855 6,541,855

Transfer of excess depreciation on revalued assets - (1,101,191) 1,101,191 -

Balance at 31 March 2018 - 37,002,940 2,682,501 39,685,441

Balance at 01 April 2018 - 37,002,940 2,682,501 39,685,441 Impact of adopting IFRS 9 21 (7,112,634) (7,112,634)Adjusted balance at 01 April 2018 - 37,002,940 (4,430,133) 32,572,807

Comprehensive income for the year

Surplus for the year - - 41,346,459 41,346,459

Transactions recorded directly in equity

Transfer of student refund on revenue 1.19 469,820 - (469,820) - Transfer of excess depreciation on revalued assets - (1,101,191) 1,101,191 - Balance at 31 March 2019 469,820 35,901,749 37,547,697 73,919,266

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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2019

Notes 2019 2018 P P Cash flows from operating activities

Cash generated from operations 17 38,476,725 19,896,327

Net cash generated from operating activities 38,476,725 19,896,327

Cash flows from investing activities

Purchase of property, plant and equipment 9 (16,915,181) (5,272,056)

Purchase of intangible assets 10 (136,115) -

Interest received 7 121,810 72,935

Net cash used in investing activities (16,929,486) (5,199,121)

Cash flows from financing activities

Government grants received during the year 13 24,276,670 14,222,140

Re-payment of borrowings 14 (835,412) (601,006)

Interest paid 7 (368,819) (1,093,537)

Net cash generated from financing activities 23,072,439 12,527,597

Net increase in cash and cash equivalents 44,619,678 27,224,803

Cash and cash equivalents at beginning of year 35,509,974 8,285,171

Cash and cash equivalents at end of year 12 80,129,652 35,509,974

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have

been consistently applied to all the years presented, unless otherwise stated.

1.1     Basis of preparation

The financial statements of the College have been prepared in accordance with International Financial Reporting Standards

(“IFRS”). The financial statements have been prepared under the historical cost convention, except for property, plant and

equipment measured on the revaluation model, which are carried at fair value.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also

requires management to exercise its judgment in the process of applying the College’s accounting policies. The areas involving a

higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the College’s financial

statements are disclosed in the “Critical accounting estimates and assumptions” section of the financial statements.

Estimates and judgements are continually evaluated based on historical experience and factors, including expectations of future

events that are believed to be reasonable under the circumstances.

1.1.1 Changes in accounting policies

(a) New standards or amendments adopted for the first time

The College has applied the following standards and amendments for the first time for its annual reporting period

commencing 1 April 2018:

IFRS 9, Financial instruments

IFRS 9 replaces the multiple classification and measurement models in IAS 39 Financial instruments: Recognition and measurement

with a single model that has initially only two classification categories: amortised cost and fair value.

In July 2014, the IASB made further changes to the classification and measurement rules and introduced a new impairment

model. With these amendments, IFRS 9 is now complete. The changes introduce:

• a third measurement category Fair Value through Other Comprehensive Income (“FVOCI”) for certain

financial assets that are debt instruments

• a new expected credit loss (“ECL”) model which involves a three stage approach whereby financial assets move through

the three stages as their credit quality changes. The stage dictates how an entity measures impairment loss and applies the

effective interest rate method. A simplified approach is permitted for financial assets that do not have a significant financing

component (e.g. trade receivables). On initial recognition, entities will record a day-1 loss equal to the 12-month ECL (or

lifetime ECL for trade receivables), unless the assets are considered credit impaired.

The College has adopted IFRS 9 as issued by the IASB in July 2014 with a transition date of 1 April 2018, which resulted in changes in

accounting policies and adjustments to the amounts previously recognised in the financial statements. The College did not early adopt

any of IFRS 9 in previous periods.

As permitted by the transitional provisions of the standard, the College elected not to restate comparative figures. The comparative

period notes disclosures repeat those of disclosures made in the prior period. Any adjustments to the carrying amounts of financial assets

at the date of transition were recognised in the opening Accumulated Surplus account. The College does not hedge its financial risks and

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019

therefore hedge accounting is not relevant. The adoption of IFRS 9 has resulted in changes in our accounting policies for recognition,

classification and measurement of financial assets and impairment of financial assets. Set out in note 2.1 (b) and note 21 are disclosures

relating to the impact of adoption of IFRS 9 on the College.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 1.1    Basis of preparation (Continued) 1.1.1 Changes in accounting policies (Continued)

(a) New standards or amendments adopted for the first time (Continued)

IFRS 15, Revenue from Contracts with Customers

IFRS 15 replaced the previous revenue recognition guidance, including IAS 18 Revenue, IAS 11 Construction Contracts and IFRIC

13 Customer Loyalty Programs. IFRS 15 introduces a five-step approach to revenue recognition. Far more prescriptive guidance

has been added to deal with specific scenarios.

The College has applied IFRS 15 in accordance with the modified retrospective approach as per IFRS 15.C3 (b). Under this

transition method, the College elected to apply this Standard retrospectively only to contracts that are not completed at the date

of initial application. The application of IFRS 15 had no impact on the opening balance of retained earnings at 1 April 2018 which

is the date of initial application because there is no change in revenue recognition pattern for educational services that are

rendered by the College. Apart from providing more extensive disclosures on the College’s revenue transactions, the application

of IFRS 15 had no significant impact on the financial position and/or financial performance of the College.

(b) New standards and interpretations not yet adopted

Certain new accounting standards and interpretations have been published that are not mandatory for the current reporting period

and have not been early adopted by the College. The College’s assessment of the impact of these new standards and interpretations

is set out below:

IFRS 16, Leases (Effective 1 January 2019)

This standard replaces the current guidance in IAS 17 and is a far reaching change in accounting by lessees in particular. Under

IAS 17, lessees were required to make a distinction between a finance lease (on balance sheet) and an operating lease (off balance

sheet). IFRS 16 now requires lessees to recognise a lease liability reflecting future lease payments and a ‘right-of-use asset’ for

virtually all lease contracts. The IASB has included an optional exemption for certain short-term leases and leases of low-value

assets; however, this exemption can only be applied by lessees. For lessors, the accounting stays almost the same. However, as

the IASB has updated the guidance on the definition of a lease (as well as the guidance on the combination and separation of

contracts), lessors will also be affected by the new standard.

At the very least, the new accounting model for lessees is expected to impact negotiations between lessors and lessees. Under

IFRS 16, a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period

of time in exchange for consideration. IFRS 16 supersedes IAS 17, ‘Leases’, IFRIC 4, ‘Determining whether an Arrangement

contains a Lease’, SIC 15, ‘Operating Leases – Incentives’ and SIC 27, ‘Evaluating the Substance of Transactions Involving the Legal

Form of a Lease’. Management is currently assessing the impact of the standard to its financial statements.

IFRIC 22 Foreign currency transactions and advance consideration

The interpretation clarifies how to determine the date of transaction for the exchange rate to be used on initial recognition

of a related asset, expense or income where an entity pays or receives consideration in advance for foreign currency-denominated

contracts.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (CONTINUED)

The College adopted the new standards and there is no impact to the Financial statements and the amounts recognised in prior periods

and is not expected to significantly affect the current or future periods.

1.2 Property, plant and equipment

Land and buildings comprise mainly class rooms, library, offices and hostels. Except for land and buildings, all property, plant

and equipment are stated at cost, less accumulated depreciation and/or accumulated impairment losses, if any. Such cost includes

expenditure that is directly attributable to bringing the items to the location and condition necessary for them to be capable of

operating in the manner intended by management.

Subsequent costs are included in the asset’s carrying amount, only when it is probable that future economic benefits associated

with the item will flow to the College and the cost of the item can be measured reliably. The carrying amount of the replaced part

is de-recognised.

All other repairs and maintenance are charged to surplus or deficit during the financial period in which they are incurred.

Land and buildings are measured at fair value less accumulated depreciation and impairment losses recognised after the date of

revaluation. Valuations are performed with sufficient frequency to ensure that the carrying amount of a revalued asset does not

differ materially from its fair value.

A revaluation surplus is recorded in other comprehensive income and credited to the revaluation reserve in equity. However, to the

extent that it reverses a revaluation deficit of the same asset previously recognised in income statement, the increase is recognised

in the income statement. A revaluation deficit is recognised in the statement of comprehensive income, except to the extent that

it off-sets an existing surplus on the same asset recognised in the asset revaluation reserve.

An annual transfer from the asset revaluation reserve to retained earnings is made for the difference between depreciation

based on the revalued carrying amount of the asset and depreciation based on the asset’s original cost. Additionally, accumulated

depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated

to the revalued amount of the asset. Upon disposal, any revaluation surplus relating to the particular asset being sold is transferred

to retained earnings.

- Leasehold land and buildings Lesser of the useful life or the remaining lease period

- Building improvements 6-10 years

- Office, clinic, catering equipment and furniture 4 - 10 years

- Computer equipment 3 years

- Motor vehicles 4 years

- Educational material (library books) 2 years

The assets’ residual values and useful lives are reviewed, and adjusted prospectively if appropriate, at each

reporting date. An item of property, plant and equipment is de-recognised upon disposal or when no future economic benefits

are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between

the net disposal proceeds and the carrying amount of the asset) is recognised within ‘Other operating income in the statement of

comprehensive income.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (CONTINUED)

1.2 Property, plant and equipment (Continued)

Properties in the course of construction for rental, administrative purposes or for purposes not yet determined are carried at cost

less any identified impairment loss and classified as work-in-progress. Properties which are held for administrative purposes are

ready for use or a completion certificate has been issued; such properties are transferred to property, plant and equipment. Where

properties under construction for rental are complete such properties are included in investment property. Depreciation is not

charged when properties are still under construction.

1.3  Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are

carried at cost less any accumulated amortisation and accumulated impairment losses. Costs associated with maintaining

computer software programmes are recognised as an expense as incurred. Costs that are directly associated with identifiable and

unique software products controlled by the College that will probably generate economic benefits exceeding costs beyond one

year are recognised as intangible assets. Direct costs include staff costs of the software development team and an appropriate

portion of relevant overheads.

Expenditure which enhances or extends the performance of computer software programmes beyond their original specifications

is recognised as a capital improvement and added to the original cost of the software. Intangible assets are amortised over the

useful economic life using the straight-line method, and assessed for impairment whenever there is an indication that the intangible

asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are

reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption

of future economic benefits embodied in the asset are accounted for by changing the amortisation period or method, as

appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives

is recognised in surplus or deficit in the expense category consistent with the function of the intangible assets. The estimated useful

life used for arriving at amortisation rate is:

- Software 4 years

1.4 Impairment of non-financial assets

Assets that have an indefinite useful life, for example freehold land, are not subject to amortisation and are tested annually for

impairment. Property, plant and equipment and other non-current assets are assessed annually for indications of impairment. If any

indication exists, the College estimates the asset’s recoverable amount.

An asset’s recoverable amount is the higher of an asset’s net selling price and value in use. In assessing value in use, the estimated

future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the

time value of money and the risks specific to the asset. In determining fair value less costs to sell, recent market transactions are

taken into account, if available.

If no such transactions can be identified, an appropriate valuation model is used. For the purposes of assessing impairment, assets

are grouped at the lowest levels for which there are separately identifiable cash flows.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (CONTINUED)

1.4 Impairment of non-financial assets (Continued)

Impairment losses are recognised in surplus or deficit in expense categories consistent with the function of the impaired

asset. An assessment is made at each reporting date whether there is any indication that previously recognised impairment

losses may no longer exist or may have decreased. If such indication exists, the College estimates the asset’s recoverable amount.

A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the

asset’s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the

asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of

depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in surplus or

deficit.

1.5  Foreign currencies

(a) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which

the College operates (“the functional currency”). The financial statements are presented in Botswana Pula (“the presentation

currency”), which is the College’s functional currency.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of

the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the

translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised

in surplus or deficit.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement

of comprehensive income within ‘finance income or cost’. All other foreign exchange gains and losses are presented in the

statement of comprehensive income within ‘other operating income’.

1.6  Trade receivables

Trade receivables are amounts due from student customers for services performed in the ordinary course of business. They

are generally due for settlement within 30 days and therefore are all classified as current. Trade receivables are recognised

initially at the amount of consideration that is unconditional unless they contain significant financing components, when

they are recognised at fair value. The College holds receivables with the objective to collect the contractual cash flows and

therefore measures them subsequently at amortised cost using the effective interest method, less provision for

impairment.

Details about the College’s impairment policies and the calculation of the loss allowance are provided in note

1.12. (b) ii.

1.7 Cash and cash equivalents Cash and cash equivalents are carried in the statement of financial position at cost which approximates fair value. For the purposes

of the statement of cash flows, cash and cash equivalents comprise cash in hand, deposits held at call with banks, and other short-

term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown in

current liabilities on the statement of financial position.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (CONTINUED)

1.8  Provisions Provisions are recognised when the College has a present legal or constructive obligation as a result of past events, it is probable

that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. Employee

entitlements to annual leave and contractual gratuities are recognised when they accrue to employees as a result of services

rendered by employees up to the reporting date.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by

considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any

one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a rate that

reflects the current market assessments of the time value of money and the risks specific to the obligation. The increase in the

provision due to passage of time is recognised as interest expense.

1.9  Contract liabilities Student tuition fees and hostel rents are recognised in surplus or deficit on the basis of the proportion of elapsed tuition time to

total course duration at the end of the year. The fees and rents relating to the unexpired tuition time are classified as deferred

revenue in the statement of financial position.

1.10   Employee benefits Permanent employees are entitled to membership of a personal pensions plan, which is administered by an insurance company

and both the College and the employee contributes the agreed percentage of the basic salary. This pension plan is a defined

contribution plan. Contract employees are given an option to choose whether the payment of gratuity be monthly or end of

contract. Employee entitlements to annual leave are recognised when they accrue to the employee and an accrual is recognised

for the estimated liability as a result of services rendered by the employee up to the reporting date. These accruals are measured

at undiscounted current wage and salary rates.

1.11   Leases Finance leases

Leases of property, plant and equipment where the College has substantially all risks and rewards of ownership are classified as

finance leases. Finance leases are capitalised at the inception of the lease at the lower of the fair value of the asset or the present

value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve

a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in

other long-term payables. The interest element of the finance cost is charged to surplus or deficit over the lease period so as to

produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and

equipment acquired under finance leases are depreciated over the shorter of the useful life of the asset or the lease term.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (CONTINUED)

1.11 Leases (Continued)

Operating lease

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating

leases. Payments under operating leases (net of any incentives received from the lessor) are charged to surplus or deficit on a

straight-line basis over the period of the lease.

1.12 Financial assets and liabilities

(a) Measurement methods

Amortised cost and effective interest rate

The amortised cost is the amount at which the financial asset or financial liability is measured subsequent to initial recognition

minus the principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference

between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance.

The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life

of the financial asset or financial liability to the gross carrying amount of a financial asset (i.e. its amortised cost before any

impairment allowance) or to the amortised cost of a financial liability. The calculation does not consider expected credit losses and

includes transaction costs, premiums or discounts and fees and points paid or received that are integral to the effective interest

rate, such as origination fees. When the College revises the estimates of future cash flows, the carrying amount of the respective

financial assets or financial liability is adjusted to reflect the new estimate discounted using the original effective interest rate. Any

changes are recognised in profit or loss.

Interest income

Interest income is calculated by applying the effective interest rate to the gross carrying amount of financial

assets and recognised on an accrual basis.

(b) Initial recognition and measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the

instrument. At initial recognition, the College measures a financial asset or financial liability at its fair value plus or minus, in

the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are incremental

and directly attributable to the acquisition or issue of the financial asset or financial liability, such as fees and commissions.

Transaction costs of financial assets and financial liabilities carried at fair value through profit or loss are expensed in profit

or loss. Immediately after initial recognition, an expected credit loss allowance (“ECL”) is recognised for financial assets

measured at amortised cost which results in an accounting loss being recognised in profit or loss when an asset is newly

originated.

When the fair value of financial assets and liabilities differs from the transaction price on initial recognition, the College recognises

the difference as follows:

(a) When the fair value is evidenced by a quoted price in an active market for an identical asset or liability (i.e.

a Level 1 input) or based on a valuation technique that uses only data from observable markets, the

difference is recognised as a gain or loss.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (CONTINUED)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(b) In all other cases, the difference is deferred, and the timing of recognition of deferred day one profit or loss is

determined individually. It is either amortised over the life of the instrument, deferred until the instrument’s

fair value can be determined using market observable inputs, or realised through settlement.

1.12 Financial assets and liabilities (Continued) (b) Initial recognition and measurement (Continued)

Financial assets

i. Classification and subsequent measurement

From 1 April 2018, the College has applied IFRS 9 and classifies its financial assets as amortised cost.

The classification requirements for debt measured at amortised cost are described below:

Debt instruments

Debt instruments are those instruments that meet the definition of a financial liability from the issuer’s perspective, such as loans,

government and corporate bonds and trade receivables purchased from clients in factoring arrangements without recourse.

Classification and subsequent measurement of debt instruments depend on:

(i) the Centre’s business model for managing the asset; and

(ii) the cash flow characteristics of the asset.

Based on these factors, the College classifies its debt instruments as amortised cost as follows:

Amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and

interest (“SPPI”), and that are not designated at Fair Value through Profit or Loss (“FVPL”), are measured at amortised cost.

The carrying amount of these assets is adjusted by any expected credit loss allowance recognised and measured using the

simplified expected loss model. Interest income from these financial assets is included in ‘Interest and similar income’ using the

effective interest rate method.

Business model

The business model reflects how the College manages the assets in order to generate cash flows. That is, whether the Company’s

objective is solely to collect the contractual cash flows from the assets or is to collect both the contractual cash flows and cash flows

arising from the sale of assets. If neither of these is applicable (e.g. financial assets are held for trading purposes), then the financial

assets are classified as part of ‘other’ business model and measured at FVPL. Factors considered by the College in determining

the business model for a group of assets include past experience on how the cash flows for these assets were collected, how the

asset’s performance is evaluated and reported to key management personnel, how risks are assessed and managed and how

managers are compensated. For example, the liquidity portfolio of assets, which is held by the College as part of liquidity

management and is generally classified within the hold to collect and sell business model. Securities held for trading are held

principally for the purpose of selling in the near term or are part of a portfolio of financial instruments that are managed together

and for which there is evidence of a recent actual pattern of short-term profit-taking. These securities are classified in the ‘other’

business model and measured at FVPL.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

1.12 Financial assets and liabilities (Continued) (b) Initial recognition and measurement (Continued) Financial assets (Continued) i. Classification and subsequent measurement (Continued)

Solely payments of principal and interest (“SPPI”)

Where the business model is to hold assets to collect contractual cash flows or to collect contractual cash flows and sell,

the College assesses whether the financial instruments’ cash flows represent solely payments of principal and interest (the

‘SPPI test’). In making this assessment, the College considers whether the contractual cash flows are consistent with a basic

lending arrangement i.e. interest includes only consideration for the time value of money, credit risk, other basic lending

risks and a profit margin that is consistent with a basic lending arrangement. Where the contractual terms introduce

exposure to risk or volatility that are inconsistent with a basic lending arrangement, the related financial asset is classified

and measured at fair value through profit or loss.

Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid investments readily

convertible to cash and subject to insignificant risk of loss of value. Cash and cash equivalent are measured at amortised

cost.

ii. Impairment of financial assets

The College recognises a loss allowance for ECL on trade and other receivables. The amount of expected credit losses is

updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial

instrument.

The College always recognises lifetime ECL for trade and other receivables. The expected credit losses on these financial

assets are estimated using the simplified ECL model based on the provision matrix. The ECL model takes into account

College’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions

and an assessment of both the current as well as the forecast direction of conditions at the reporting date. Lifetime ECL

represents the expected credit losses that will result from all possible default events over the expected life of a financial

instrument except for forward looking information. Given the short-term nature of trade and other receivables, we do

not except the micro-economic factors which are deemed to be medium to long term in nature to significantly impact the

impairment model.

iii. Derecognition of financial assets

The College derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or

when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If

the College neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the

transferred asset, the College recognises its retained interest in the asset and an associated liability for amounts it may have

to pay.

On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and

the sum of the consideration received, and receivable is recognised in profit or loss.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

1.12 Financial assets and liabilities (Continued)

(b) Initial recognition and measurement (Continued)

Financial liabilities

i. Classification and subsequent measurement

All financial liabilities are measured subsequently at amortised cost using the effective interest method. The effective interest

method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant

period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points

paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through

the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.

ii. Derecognition of financial liabilities

The College derecognises financial liabilities when, and only when, the College’s obligations are discharged, cancelled or have

expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable

is recognised in profit or loss.

1.13 Related party transactions

Related parties comprise the Government of Botswana, Debswana Diamond Company (Proprietary) Limited, Botswana Institute of

Chartered Accountants who have common control, directors and key management.

1.14 Trade payables

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from

suppliers. Accounts payables are classified as current liabilities, if payment is due within one year or less at the reporting date.

If not, they are presented as non-current liabilities. Trade payables are recognised initially at fair value and subsequently measured

at amortised cost using the effective interest method.

1.15 Government grants

Grants from the Government are recognised at their fair values where there is reasonable assurance that the grant will be received.

Government subvention and other revenue grants received are recognised in the statement of comprehensive income under other

operating income when it is committed by Government. A Government grant utilised towards capital expenditure or capital grant

is credited to the grant account as deferred income and equal amounts are amortised and credited to surplus or deficit on a

straight-line basis over the estimated useful lives of the related assets.

1.16 Revenue recognition

The College renders educational tuition services for under and post graduate courses. The courses comprise of short-term and

long-term and are offered on a semester basis which straddles the financial year and therefore resulting in contract liabilities

(deferred revenue). The performance obligations for the delivery of tuition services is considered to be discharged over time.

Revenue is measured based on the consideration to which the College expects to be entitled in a contract with a customer and

excludes amounts collected on behalf of third parties.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

1.16 Revenue recognition (Continued)

Revenue recognition follows a five-step model framework as follows:

Step1: Identify the contract(s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation

1.17 Expense recognition

The College incurs the following costs in providing tuition to the students:

(a) Course materials / books such as work books and examination kits and other tuition materials,

(b) Franchise fees paid for programmes offered jointly with partner universities.

These costs are expensed as they are incurred, through “other administrative expenses” in the statement of comprehensive income.

Where costs are paid up-front, and relate to future periods, such costs are classified as pre-payments in the statement of financial position

at reporting date and released to the statement of comprehensive income over the period to which they relate.

1.18 Income tax

The College is exempt from income tax under the Second Schedule; Part 1 of the Income Tax Act (Cap. 52:01).

1.19 Student refund reserve

The College is regulated by the Botswana Qualifications Authority. The Regulatory body issued out a guideline aimed at providing

a cushion against enrolled learner claims for tuition and exam fee refunds. Based on the historical rate of refund, management

considered 0.25% of annual tuition fee revenue to be a reasonable basis for reserving in the fund. On that basis, the reserve will

be reassessed annually to make sure that it does not exceed 0.25% of the tuition fee revenue for the period. If the current balance

is adequate, any excess provision from the prior period will be released back to the retained surplus.

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2 FINANCIAL RISK MANAGEMENT

2.1 Financial risk factors

The College’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash

and price risk), credit risk and liquidity risk. The College’s overall risk management programme focuses on the unpredictability of

financial markets and seeks to minimise potential adverse effects on the College’s financial performance. Risk management is

carried out under policies approved by the Board. The Board provides written principles for overall risk management, as well as

written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial

instruments, non-derivative financial instruments, and investment of excess liquidity.

a) Market risk

i) Foreign currency risk

The College is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to Great Britain

Pound (GBP), South African Rands (ZAR) and United States Dollars (USD). Foreign exchange risk arises from future commercial

transactions and recognised assets and liabilities that are denominated in a currency that is not the entity’s functional currency.

Management has set up a policy to require the College to manage its foreign exchange risk against functional the currency. To

manage foreign exchange risk arising from those transactions, the College ensures that it keeps adequate funds in foreign currency

in its bank accounts. Foreign exchange risk arises when commercial transactions or recognised assets or liabilities are denominated

in a currency that is not the entity’s functional currency.

At 31 March 2019, if the currency had strengthened/weakened by 10% against Great Britain Pound with all other variables held

constant, surplus for the year would have been P124,993 (2018: P172,817) lower/higher, mainly as a result of foreign exchange

losses/gains on translation of Great Britain Pounds denominated payables and cash equivalents.

At 31 March 2019, if the currency had strengthened/weakened by 10% against the South African Rands with all other variables held

constant, surplus for the year would have been P162 (2018: P48,587) lower/higher, mainly as a result of foreign exchange losses/

gains on translation of South African Rands denominated payables and cash equivalents.

At 31 March 2019, if the currency had strengthened/weakened by 10% against the US Dollar with all other variables held constant,

surplus for the year would have been P7,415 (2018: P641) lower/higher, mainly as a result of foreign exchange losses/gains on

translation of US Dollar denominated payables and cash equivalents.

At 31 March 2019 and 2018 the College’s financial assets and liabilities denominated in foreign currencies were:

2019 2018

P P

Payables

US Dollar 81,571 7,806

Great Britain Pounds 1,249,893 1,771,372

South African Rands 1,782 547,605

Cash equivalents

Great Britain Pounds 7,580 7,001

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2 FINANCIAL RISK MANAGEMENT (CONTINUED)

2.1 Financial risk factors (continued)

a)    Market risk (continued)

ii) Price Risk

The College is not exposed to price risk as it does not have any financial instruments that will fluctuate due to changes in

market prices.

iii) Cash flow and interest rate risk

Fluctuations in interest rates impact on the value of short-term cash investments and financing activities, giving rise to

interest rate risk. Surplus funds are invested in a manner to achieve maximum returns while minimising risk. An increase of

1% in the interest rate in short-term cash deposits would increase interest income by P67,279 (2018: P353,101).

(b) Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to

the College. As at 31 March 2019, the College’s maximum exposure to credit risk which will cause a financial loss due to

failure to discharge an obligation by the counterparties arises from the carrying amount of the respective recognised

financial assets as stated in the statement of financial position.

In order to minimise credit risk, the College has adopted a policy of dealing with creditworthy counterparties as a means

of mitigating the risk of financial loss from defaults. Credit approvals and other monitoring procedures are also in place

to ensure that follow-up action is taken to recover overdue debts. Furthermore, the College reviews the recoverable amount

of each trade debt on an individual basis at the end of each month to ensure that adequate loss allowance is made for

irrecoverable amounts. In this regard, the directors consider that the College’s credit risk is significantly reduced. The

College does not hold any collateral or other credit enhancements to cover its credit risks associated with its financial assets.

Financial assets of the College, which are subject to credit risk, consist mainly of trade and other receivable and cash

resources.

The College holds cash deposits with reputable financial institutions. The College applies the simplified approach to

providing for expected credit losses prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for

all short-term receivables. To measure the expected credit losses, short-term receivables have been grouped based on

shared credit risk characteristics and the days past due. The loss allowance as at 31 March 2019 is determined as follows:

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2 FINANCIAL RISK MANAGEMENT (CONTINUED)

(b) Credit Risk (continued)

On that basis, the loss allowance as at 31 March 2019 and 1 April 2018 (on adoption of IFRS 9) was determined as

follows for both trade receivables and contract assets:

Expected Credit loss Default Rates at 31 March 2019

Customer grouping Current 1 - 30 Past due 31 - 60 Past due 61 - 90 Past due Over 90 Past due

Government 2% 21% 51% 87% 100%

Private students 4% 26% 60% 97% 100%

Private companies 2% 14% 39% 75% 100%

Staff 25% 41% 75% 90% 100%

Parastatals 0% 0% 7% 90% 100%

Expected Credit loss Default Rates at 1 April 2018

Customer grouping Current 1 - 30 Past due 31 - 60 Past due 61 - 90 Past due Over 90 Past due

Government 2% 8% 32% 85% 100%

Private students 13% 39% 78% 93% 100%

Private companies 3% 12% 37% 78% 100%

Staff 10% 23% 44% 92% 100%

Parastatals 21% 59% 122% 89% 100%

Analysis of exposure and ECL by ageing

At 31 March 2019 Current 1 - 30 Past due 31 - 60 Past due

61 - 90 Past due

Over 90 Past due Total

Gross carrying amounts (In Pula)

4,883,312 107,633 869,569 362,569 15,558,921 21,782,004

ECL (In Pula) 130,728 36,616 503,591 338,647 15,558,921 16,568,503

At 31 March 2018 Current 1 - 30 Past due 31 - 60 Past due

61 - 90 Past due

Over 90 Past due Total

Gross carrying amounts (In Pula)

48,426 4,064,067 2,554,490 1,325,305 16,847,840 24,840,128

ECL (In Pula) 5,785 560,744 1,676,245 1,226,580 16,847,840 20,317,194

The exposure amounts were adjusted for amounts due from postgraduate students who were invoiced on the basis of a

period of more than one year to reflect what should have been the amount receivable if the current invoicing policy (6

months / semester) had been applied.

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2 FINANCIAL RISK MANAGEMENT (CONTINUED)

2.1  Financial risk factors (continued) (b) Credit Risk (continued)

“Trade and other receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no

reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the

College, and a failure to make contractual payments for a period of greater than 120 days past due.”

Impairment losses on trade receivables and contract assets are presented as net impairment losses within operating profit.

Subsequent recoveries of amounts previously written off are credited against the same line item.

Previous accounting policy for impairment of trade receivables

In the prior year, the impairment of trade receivables was assessed based on the incurred loss model. Individual receivables

which were known to be uncollectible were written off by reducing the carrying amount directly. The other receivables were

assessed collectively to determine whether there was objective evidence that an impairment had been incurred but not yet been

identified. For these receivables the estimated impairment losses were recognised in a separate provision for impairment. The

group considered that there was evidence of impairment if any of the following indicators were present:

• significant financial difficulties of the debtor

• probability that the debtor will enter bankruptcy or financial reorganisation, and

• default or late payments (more than 30 days overdue).

Receivables for which an impairment provision was recognised were written off against the provision when there was no expectation

of recovering additional cash.

The closing loss allowances for trade receivables as at 31 March 2019 reconcile to the opening loss allowances as follows:

2019 2018

P P

Opening balance calculated under IAS 39 13,204,560 9,976,615

Amounts restated through opening retained earnings – Transitional IFRS 9 Adjustment 7,112,634 -

Opening loss allowance as at 1 April 2018 – calculated under IFRS 9 20,317,194 9,976,615

Increase/(Decrease) in receivable loss allowance recognised during the period (3,748,691) 3,227,945

Closing balance at 31 March 2019 16,568,503 13,204,560

Maximum exposure

Financial assets with the maximum exposure to credit risk at the year-end were as follows:

Trade Receivables – Related parties 5,044,980 5,015,180

Trade Receivables – Others 24,400,255 27,687,887

Other Receivables 6,001,157 369,230

Less: Loss allowance (IFRS 9) (16,568,503) (13,204,560)

Net trade and other receivables 18,877,889 19,867,737

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2 FINANCIAL RISK MANAGEMENT (CONTINUED)

(b) Credit Risk (continued)

For purposes of measuring the ECL, trade receivables have been segmented by customer type to reflect similar credit risk. The

impairment allowance has increased by P7,112,634 on 1 April 2018 as result of adopting IFRS 9. The increase reflects a high

probability of default on the basis of historical credit risk information across all customer profiles. In the short-term, we do not

expect the macro-economic factors such as the GDP to affect expected default rates and consequently all default rates applied in

the calculation of expected credit losses are based historical credit risk information

2019 2018

Cash and Cash Equivalents P P

Barclays Bank of Botswana Limited 76,161,702 31,115,903

Stanbic Bank Botswana Limited 2,164,146 2,663,776

African Alliance Botswana Management Company (Proprietary) Limited 1,798,804 1,737,296

First National Bank 5,000 -

Total amount exposed to credit risk 80,129,652 35,516,975

This financial asset class was classified as loans and receivables and measured at amortised cost under IAS 39. Under IFRS 9, these

assets continue to be measured at amortised cost because they satisfy the solely payments of principal and interest (SPPI) and business

model tests for classification as amortised cost. Cash and cash equivalents are subject to impairment under both IAS 39 and IFRS 9. As

at 31 March 2018, the impairment provision under IAS 39 was nil as there was no objective evidence of impairment.

The College has elected to the apply the simplified approach for impairment of cash and cash equivalents because the lifespan of

these assets is less than 12 months. The College has adopted the provision matrix contained in implementation guidance to IFRS 9 as

its impairment methodology.

Historical default rates on deposits held in banks is nil. The review of relevant forward looking macro-economic factors does not suggest

possible defaults on bank deposits and consequently no provision has been raised on adoption of IFRS 9 and at the year end.

(c)   Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash, and the availability of funding through an adequate amount

of committed credit facilities. Management monitors rolling forecasts of the College liquidity reserves (comprising of cash and cash

equivalents – note 12) on the basis of expected cash flow. This is generally carried-out by management in accordance with practice

and limits set by the Board. The table below analyses the College’s financial liabilities into relevant maturity periods based on the

remaining period at the statement of financial position date to the contractual maturity date. The amounts disclosed in the table

are the contractual undiscounted cash flows:

2019 2018

P P

Less than 1 year

Trade and other payables (excluding non-financial liabilities) 11,005,310 11,002,117

Borrowings 1,073,915 1,163,408

12,079,225 12,165,525

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2 FINANCIAL RISK MANAGEMENT (CONTINUED)

2019 2018

P P

(c)   Liquidity risk (Continued)

Above 2 to 5 years Borrowings 4,343,956 4,295,661

Above 5 years

Borrowings - 1,156,661

(d) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are

recognised and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used

in determining fair value, the College has classified its financial instruments into the three levels prescribed under the accounting

standards - IFRS 13.

Quoted market prices - Level 1 Assets and liabilities are classified as Level 1 if their value is observable in an active market. Such instruments are valued by

reference to unadjusted quoted prices for identical assets or liabilities in active markets where the quoted price is readily

available, and the price represents actual and regularly occurring market transactions. An active market is one in which transactions

occur with sufficient volume and frequency to provide pricing information on an ongoing basis.

Valuation technique using observable inputs - Level 2

Assets and liabilities classified as Level 2 are valued using models whose inputs are observable in an active market either directly

(that is, as prices) or indirectly (that is, derived from prices).

Valuation technique using significant and unobservable inputs - Level 3

Assets and liabilities are classified as Level 3 if their valuation incorporates significant inputs that are not based on

observable market data (unobservable inputs). A valuation input is considered observable if it can be directly observed

from transactions in an active market, or if there is compelling external evidence demonstrating an executable exit price.

The College considers relevant and observable market prices in its valuations where possible.

At 31 March 2019, the College had borrowings carried at fair value amounting to P4,633,273 (2018: P 5,468,685)

classified under level 2.

The fair value of borrowings approximates their carrying amount as the impact of discounting is not significant.

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NOTES TO THE FINANCIAL STATEMENTS

(d) Capital risk management

The College is a company limited by guarantee. The College is supported by its stakeholders and the Government of Botswana.

The College’s objective when managing capital is to safeguard the ability to continue as a going-concern in order to provide

returns and benefits for stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

The College is a company limited by guarantee. The College is supported by its stakeholders and the Government of Botswana.

The College’s objective when managing capital is to safeguard the ability to continue as a going-concern in order to provide

returns and benefits for stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

The College makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition,

seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment

to the carrying amounts of assets and liabilities within the next financial year are discussed below.

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3 CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

3.1  Useful lives and residual values of property, plant and equipment

The College annually assesses the appropriateness of the useful life and residual value estimates. The estimated residual values of

the property, plant and equipment have been determined by the College’s directors based on their knowledge of the industry.

3.2  Measurement of the expected credit loss allowance

The measurement of the expected credit loss allowance for financial assets measured at amortised cost is an area that requires

the use of complex models and significant assumptions about future economic conditions and credit behaviour (e.g. the likelihood

of customers defaulting and the resulting losses).

A number of significant judgements are also required in applying the accounting requirements for measuring ECL, such as:

i. Choosing appropriate models and assumptions for the measurement of ECL;

ii. Establishing groups of similar financial assets for the purposes of measuring ECL.

3.3 Determining whether bundled services are distinct performance obligations or not

Contracts with customers often include promises to deliver multiple services. Determining whether such bundled services are

considered;

i. distinct performance obligations that should be separately recognized, or

ii. non-distinct and therefore should be combined with another good or service and recognized as a combined unit of

accounting may require significant judgment.

In general, the College’s services are capable of being distinct as they could be performed by other educational institutions

and do not involve significant customization.

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2019 2018

4 . Revenue P P

Tuition fees

Undergraduate programmes 119,110,358 102,251,003

Professional and corporate learning programmes 55,686,507 42,057,313

Post-graduate programmes 14,297,013 8,958,629

189,093,878 153,266,945

5. Other operating income

Hostel income 8,435,058 10,539,150

Sundry income 3,359,128 1,515,037

Foreign exchange losses (148,720) 219,215

Amortisation of government grants (note 13) 868,473 1,521,139

Government subvention (note 13) 24,276,670 14,222,140

36,790,609 28,016,681

6 . Operating surplus

Operating surplus is stated after charging following:

Expenses by nature

Depreciation on property, plant and equipment (note 8) 8,739,376 7,069,892

- owned assets 4,418,360 3,323,243

- leased assets 4,321,016 3,746,649

Amortisation of intangible assets 161,105 307,097

Operating lease rentals 7,327,956 8,128,126

Impairment of intangible assets 167,160 -

Bad debt write off 6,065,532 -

Auditors’ remuneration 315,375 334,165

Staff costs (note 6.1) 101,982,384 83,396,745

Board Expenses 354,739 100,148

Repairs and maintenance - property, plant and equipment 2,604,127 4,398,071

Electricity and water expenses 6,139,830 4,409,913

Advertising and promotion 5,038,695 6,278,571

Catering and cleaning expenses 3,050,866 4,259,115

Cost of educational materials 745,438 8,155,481

Partner university and accreditation fees 18,318,820 13,956,298

Printing and stationery expenses 3,510,452 4,308,636

Internet services 4,869,355 3,600,557

Other expenses 18,648,500 18,596,511

Total staff and other administrative expenses 188,039,710 167,299,326

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2019 2018

P P

6.1 Staff costs

Salary 69,690,524 61,986,827

Gratuity 12,970,938 10,886,185

Provision for bonus 5,681,192 -

Pensions (administration staff pensions) 939,347 941,754

Training and other related costs 5,766,056 3,630,758

Leave pay (note 15.1) 1,992,298 1,451,571

Medical aid and general staff welfare 4,942,029 4,499,650

101,982,384 83,396,745

Included in above;

Senior management remuneration (note 19) 12,789,127 12,830,812

Average number of persons employed over the year

- Full time 223 216

- Part time 76 12

299 228

7. Finance cost / income

Finance income

Interest income- bank deposits 121,810 72,935

121,810 72,935

Finance costs Interest expense - mortgage loans 327,996 392,893

Overdraft interest 40,823 700,644

368,819 1,093,537

Net finance cost (247,009) (1,020,602)

8. Income tax

The College is exempt from income tax in terms of the Second Schedule of Part 1 of the Income Tax Act (Cap 52:01).

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104

25 2525 25

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (CONTINUED)

BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) FINANCIAL REPORT FOR THE YEAR 2018/2019

9.1 Property, plant and equipment (continued)

The College acquired a plot of land (38352) in Francistown for P7,650,000 in 2015 financed through borrowings from First

National Bank of Botswana Limited (note 14). The borrowing is secured against first covering mortgage ‘bond for P10million over

Lots 38353, 38354, 38355, 38356, 38361, 38362, 38363 and 38364 Francistown ‘(consolidated). The carrying value of the

collateral security amounts to P7,650,000.

The College acquired a property situated at Plot 61922, Gaborone from Commercial Holdings (Proprietary)Limited on 15th August

2006. The deed of transfer made the sale conditional that the College develop the property within 3 years of purchase, failing

which Commercial Holdings was entitled to exercise the right of forfeiture of the land. Subsequent to year end, Commercial

Holdings in a letter dated 1 August 2019, extended the development covenant to 31 December 2019 to allow for adequate time

to commence construction. Should Commercial Holdings successfully proceed with the forfeiture, the College will be required to

sell the property back at 70% of the original purchase price of P2,410,000. Due to this reason, the revaluation gain of this

property not taken in to account.

Details of leasehold assets held under long-term government leases and operating leases included under property, plant and

equipment are as follows:

Building Land and improvements buildings Total P P P Year ended 31 March 2019

Net book value at beginning of year 9,769,428 85,425,580 95,195,008

Additions 5,486,802 - 5,486,802 Depreciation (1,809,874) (2,511,142) (4,321,016) Net book value at end of year 13,446,356 82,914,438 96,360,794

As at 31 March 2019

Cost / revaluation 23,254,126 85,725,700 108,979,826 Accumulated depreciation (9,807,770) (2,811,262) (12,619,032) Net book value at end of year 13,446,356 82,914,438 96,360,794

Year ended 31 March 2018

Net book value at beginning of year 9,555,323 81,006,447 90,561,770

Transferred to/(from) - depreciation 48,290 - 48,290

Additions 1,789,742 - 1,789,742

Revaluation - 6,541,855 6,541,855

Depreciation (1,623,927) (2,122,722) (3,746,649)

Net book value at end of year 9,769,428 85,425,580 95,195,008

As at 31 March 2018

Cost 17,767,324 85,725,700 103,493,024

Accumulated depreciation (7,997,896) (300,120) (8,298,016)

Net book value at end of year 9,769,428 85,425,580 95,195,008

BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) FINANCIAL REPORT FOR THE YEAR 2018/2019

105

25 2525 25

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (CONTINUED)

9.1 Property, plant and equipment (continued)

The carrying amount of land and buildings that were revalued, had they been carried at cost, is as follows:

Land and buildings 2019 2018 P P At cost 58,946,012 58,946,012

Accumulated depreciation (10,757,911) (9,850,123)

48,188,101 49,095,889

10 Intangible assets

Capital work-in- progress Software Total P P P Year ended 31 March 2019

Net book value at beginning of year 167,160 322,791 489,951 Additions - 136,115 136,115 Amortisation charge - (161,105) (161,105) Impairment (167,160) - (167,160) Net book value at 31 March 2019 - 297,801 297,801

As at 31 March 2019

Cost - 4,560,829 4,560,829 Accumulated amortisation - (4,263,028) (4,263,028) Net book value at 31 March 2019 - 297,801 297,801

Year ended 31 March 2018

Net book value at beginning of year 167,160 658,479 825,639

Adjustments (28,591) (28,591)

Additions - - -

Amortisation charge - (307,097) (307,097)

Net book value at 31 March 2018 167,160 322,791 489,951

As at 31 March 2018

Cost 167,160 4,424,714 4,591,874

Accumulated amortisation - (4,101,923) (4,101,923)

Net book value at 31 March 2018 167,160 322,791 489,951

BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) FINANCIAL REPORT FOR THE YEAR 2018/2019

106

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (CONTINUED)

11. Trade and other receivables

Financial assets with the maximum exposure to credit risk at the year-end were as follows:

Description 2019 2018

P P

Trade Receivables 29,445,235 32,703,067

Prepaid Expenses 1,701,026 2,134,782

Other receivables 7,250,829 11,568,953

Less: Loss allowance (Note 2(b)) (16,568,503) (13,204,560)

Net trade and other receivables 21,828,587 33,202,242

Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.

Information about the impairment of trade receivables and the College’s exposure to credit risk, foreign currency risk and interest

rate risk can be found in note 2.

12. Cash and cash equivalents

Cash at bank - current account 196,441 199,852

- call accounts 78,134,407 33,572,826

Short-term deposits 1,798,804 1,737,296

80,129,652 35,509,974

Short-term deposits are usually made for a maximum period of three months. The fair value of cash and short-term deposits is

P80,129,652 (2018: P35,509,974).

The average effective interest rates on deposits were as follows:

Bank balance held in Great Britain Pounds: NIL (2018: 0.03%).

Other short-term deposits: 0.25% (2018: 0.35%).

Cash, cash equivalents and bank overdraft include the following for the purposes of

the statement of cash flows:

Cash and cash equivalents 80,129,652 35,509,974

The College has an overdraft facility of P461,000 with Barclays Bank of Botswana Limited

which is secured by call deposit account number 02/9046999.

BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) FINANCIAL REPORT FOR THE YEAR 2018/2019

107

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (CONTINUED)

13. Government grants 2019 2018 P P Year ended 31 March

Balance at beginning of year 44,767,810 46,288,949

Government subvention received during the year 24,276,670 14,222,140

Government grant income recognised during the year (868,473) (1,521,139)

Government subvention income recognised during the year (24,276,670) (14,222,140)

Balance at end of year 43,899,337 44,767,810

Non current liability portion 43,030,920 43,899,393

Current liability portion 868,417 868,417

43,899,337 44,767,810

As at 31 March

Cost 108,907,012 84,630,342

Accumulated amortisation (65,007,675) (39,862,532)

43,899,337 44,767,810

14. Borrowings

Balance at beginning of year 5,468,685 6,069,691

Borrowings during the year - -

Capital re-payments during the year (835,412) (601,006)

Balance at end of year 4,633,273 5,468,685

Payable after 12 months 4,633,011 4,633,467

Payable within 12 months 262 835,218

4,633,273 5,468,685

The average term of the borrowing is 10 years with an average effective borrowing

rate of 6.5% (2018: 6.5%). Interest rate is linked to the prime and the repayment vary

according to any changes in the interest rates. The loan is secured by land acquired

in 2015.

15. Trade and other payables

Trade payables 6,918,270 6,915,077

Refund payable to Government 4,087,040 4,087,040

Accrual of staff related costs (note 15.1) 14,142,543 6,382,270

Accrual of franchise fees and education material costs 3,522,810 2,917,851

Student advance payments - 4,005,403

Other accrued expenses 10,124,740 11,109,426

38,795,403 35,417,067

Due to the short-term nature of the trade payables, their carrying amount is considered to be the same as their fair

value.

BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) FINANCIAL REPORT FOR THE YEAR 2018/2019

108

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (CONTINUED)

15.1 Accrual of staff related costs

Leave pay Bonus Gratuity Total Year ended 31 March 2019 P P P P Balance at beginning of year 3,169,724 220,238 2,992,308 6,382,270

Provision for the year 1,992,298 5,681,192 4,493,694 12,167,183 Payments made during the year (1,240,719) - (3,166,191) (4,406,910) Write-back of provision - - - - Balance at end of year 3,921,303 5,901,430 4,319,811 14,142,543

Year ended 31 March 2018

Balance at beginning of year 3,389,255 264,288 4,667,909 8,321,452

Provision for the year 1,451,571 - 2,772,401 4,223,972

Payments made during the year (1,671,102) (44,050) (4,448,002) (6,163,154)

Write-back of provision - - - -

Balance at end of year 3,169,724 220,238 2,992,308 6,382,270

2019 2018 P P 16. Contract liabilities

Tuition fees 48,023,400 42,274,432

Hostel income 1,588,130 2,398,494

49,611,530 44,672,926

17. Cash flows from operating activities

Operating surplus 41,593,468 10,756,355

Adjustments for:

Depreciation on property, plant and equipment (note 9) 8,739,376 7,069,892

Amortisation of intangible assets (note 10) 161,105 307,097

Impairment of intangible assets (note 10) 167,160 -

Subvention from Government (note 13) (24,276,670) (14,222,140)

Amortisation of government grants (note 13) (868,473) (1,521,139)

25,515,966 2,390,065

Changes in working capital:

- Trade and other receivables 4,261,021 4,818,132

- Deferred revenue 4,938,604 13,205,514

- Trade and other payables 3,761,134 (517,384)

Cash generated from operations 38,476,725 19,896,327

BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) FINANCIAL REPORT FOR THE YEAR 2018/2019

109

25 2525 25

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (CONTINUED)

2019 2018

P P

18 Analysis of financial instruments

18.1 Financial instruments by category

Loans and receivables

Trade and other receivables * 18,877,889 19,867,737

Cash-at-bank 80,129,652 35,509,974

99,007,541 55,377,711

* Pre-payments are excluded from the trade and other receivables balance as this

analysis is required only for financial instruments.

Financial liabilities

Trade and other payables ** 11,005,310 6,615,402

Borrowings 5,417,871 5,468,685

16,423,181 12,084,087

* * Statutory obligations have been excluded from trade and other payables.

There were no liabilities at fair value, derivatives used for hedging, or available for

sale financial instruments as at year end.

18.2 Credit quality of financial assets

The credit quality of financial assets that are neither past due nor impaired can be

assessed by reference to external credit ratings (if available) or to historical

information about counterparty default rates:

Rating

Trade receivables - Government AA+ 2,216,456 3,769,942

Trade receivables - Other Not rated 16,661,433 16,097,795

18,877,889 19,867,737

Cash-at-bank

Barclays Bank of Botswana Limited Not rated 76,161,703 31,115,903

Stanbic Bank Botswana Limited Not rated 2,164,146 2,663,776

African Alliance Botswana Management Company (Proprietary) Limited Not rated 1,798,804 1,730,295

FNB Not rated 5,000 -

80,129,652 35,509,974

None of the financial assets that are fully performing have been renegotiated during the year. There are no credit ratings available

for financial institutions in Botswana. The above entities have reported sound financial results and continued compliance with

minimum capital adequacy requirements set by the regulator.

BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) FINANCIAL REPORT FOR THE YEAR 2018/2019

110

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (CONTINUED)

2019 2018 P P 19. Related party transactions

Related parties comprise the Government of Botswana, Debswana Diamond

Company (Proprietary) Limited, Botswana Institute of Chartered Accountants

who have common control, directors and senior management of the College.

The following transactions were carried out with related parties during the year:

Tuition revenue from related parties

Government of Botswana 179,325,594 149,841,287

Debswana Diamond Company (Proprietary) Limited 15,750 15,500

Botswana Institute of Chartered Accountants 5,700 -

179,347,044 149,856,787

Grants receipt from related parties

Government of Botswana (note 13) 24,276,670 14,222,140

Expenses

Botswana Institute of Chartered Accountants -

Student membership subscriptions 487,485 226,850

Remuneration paid to key management

Key management includes directors (executive). The compensation

paid or payable to key management for employee services is as follows:

Short-term employee benefits - Salaries 12,789,127 12,830,812

Bonus provision 5,681,192 -

18,470,319 12,830,812

Directors expenses 354,739 100,148

The following year end balances arose from transactions with related parties:

Amounts due from related parties

Government of Botswana 4,984,956 5,106,867

Debswana Pension Fund 49,434 -

Botswana Institute of Chartered Accountants 10,590 -

5,044,980 5,106,867

Amounts due to related parties

Government of Botswana (note 15) 4,087,040 4,087,040

20. Operating lease commitments

The future aggregate minimum lease payments under operating leases are as follows:

Not later than 1 year 5,743,330 7,683,262

Later than 1 year and not later than 5 years 262,667 6,005,997

6,005,997 13,689,259

The operating leases relate to lease commitments for the leased office space used for

classrooms in Francistown and Gaborone. Under the terms of the leases, either party can

give a three months notice to terminate the leases.

BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) FINANCIAL REPORT FOR THE YEAR 2018/2019

111

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (CONTINUED)

21. Changes in accounting policies

This note explains the impact of the adoption of IFRS 9, Financial Instruments and IFRS 15, Revenue from Contracts with Customers

on the College’s financial statements.

Impact on financial statements

i. IFRS 15, Revenue from contracts with customers

As stated in note 1.1(a) management believes that apart from providing more extensive disclosures on the College’s revenue

transactions, the application of IFRS 15 had no significant impact on the financial position and/or financial performance of the

College.

ii. IFRS 9, Financial instruments

Again, as explained in note 1.1 (a), IFRS 9 was generally adopted without restating comparative information. The reclassifications

and the adjustments arising from the new impairment rules are therefore not reflected in the statement of financial position as at

31 March 2018, but are recognised in the opening statement of financial position as at 31 March 2019 through the accumulated

surplus account.

The adoption of IFRS 9 has resulted in changes in our accounting policies for recognition, classification and measurement of

financial assets and impairment of financial assets. Set out below are disclosures relating to the impact of adoption of IFRS 9 on

the College.

The total impact on the College’s accumulated surplus as at 1 April 2018 is as follows:

P Closing retained earnings 31 March - IAS 39 2,682,501

Adjustment to accumulated surplus from adoption of IFRS 9 on 1 April 2018 (7,112,634)

Opening retained earnings 1 April - IFRS 9 (4,430,133)

Reconciliation of statement of financial position balances from IAS 39 to IFRS 9

Trade Receivables

Opening carrying amount as at 31 March 2018 - IAS 39 19,498,507

Remeasurement: Expected Credit Loss (7,112,634)

Opening carrying amount 1 April - IFRS 9 12,385,873

22. Capital commitments

There were no capital commitments at 31 March 2019 (2018: none)

BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) FINANCIAL REPORT FOR THE YEAR 2018/2019

112

25 2525 25

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (CONTINUED)

23. Contingent liabilities

23.1 Litigation claims The college is a defendant to a case outstanding in the court of Botswana. While liability is not admitted and that there are no

monetary claims in the matter, in the event that the College is unsuccessful with its claim, it may be liable to the costs of the suit.

23.2 Bank guarantees The College has issued a bank guarantee in the ordinary course of business to Botswana Power Corporation, to the amount of

P26,650 (2018: P26,650).

The directors confirm that there are no other material contingent liabilities at year end, except disclosed above.

24. Assets pledged as security

The carrying amount of assets pledged as security for current and non-current borrowings are:

2019 2018

P P

Non-current

Freehold land - plot 38352 (Note 9) 2,167,427 2,167,427

25. Contingent assets

As at the end of the year, the College had raised an invoice to The Department of Tertiary Education Financing (“DTEF”) to the

value of P434,555 for tuition offered during the reporting period. DTEF only accepts an invoice if they have reviewed it and are

satisfied that the list of students included in the invoice are indeed sponsored by DTEF. If any discrepancies are identified, DTEF

returns to the invoice for correction. An ammended invoice is then rasied to that effect. Based on historical trends, these invoices

have been revised and about 80% percent of the invoice value is probable.

The contingent assset (amount receivable) relating to the invoice has not been recognised as a receivable at 31

March 2019 as receipt of the amount is dependent on the outcome of the review process.

26. Going concern

Annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis

presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities,

contingent obligations and commitments will occur in the ordinary course of operations.

Management acknowledges that uncertainty remains over the ability of the College to meet its funding requirements as they fall

due. However, based on the current year’s performance, projected cashflows drawn on a monthly basis for the next 12 months and

the current funding, management believes that no conditions exist that may cast significant doubts over the College’s ability to

continue operating into the foreseeable future.

27. Events after the reporting date The directors and management have confirmed that there are no significant post balance sheet events affecting these financial

statements.

BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) FINANCIAL REPORT FOR THE YEAR 2018/2019

113

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Shaping Business Leaders

GABORONE CAMPUS

Plot Number 50661

Fairgrounds International

P/Bag 000319

Gaborone, Botswana

Tel: (+267) 3953 062

Fax: (+267) 3904 103

FRANCISTOWN CAMPUS

Plot 31403

P/Bag 137

Francistown, Botswana

Tel: (+267) 2410 558

Fax: (+267) 2410 534