2.3  Working Capital 3.0 Management Letter 3.1  Submission and Payment of Pay-As-You-Earn (PAYE)  The Council is funded mainly by government grants, and in the  year under under review the grant was P252.52 million, representing 91% of the total income.  The working capital position of the Council as at 31 March 2018  showed current assets of P32.19 million and current liabilities of  P49.91 million, resulting in a net current liabilities position of  P17.72 million. The current liabilies included provisions for gratuities and leave  pay of P23.32 million. The following were some of the significant matters raised by the  auditors and the management responses thereto:  The auditors noted, as in the previous years, that PAYE returns  were on 11 instances made late as follows:  The Council may as a result of the late submissions incur financial  losses from penalties and interest levied by BURS due to non- compliance with the Botswana Income Tax Act.  In response management stated that in the past the Council had  written to the Commissioner of Taxes to request for a waiver but  instead the Commissioner advised that a nil return be submitted  when the Council has financial challenges and payment be  Submission due Month  Date Date Submitted April 2017  15 May 2017  25 September 2017  May 2017  June 2017  June 2017  15 July 2017  25 September 2017  July 2017  August 2017  August 2017  15 September 2017  25 September 2017  September 2017  October 2017  26 January 2018  October 2017  15 November 2017  November 2017  December 2017  26 January 2018  December 2017  15 January 2018  4 April 2018  January 2018  February 2018  February 2018  15 March 2018  4 April 2018  118 