126. Botswana Open University 2.0 Accounts 2.1 Audit Opinion In the opinion of the auditors:  2.2 Financial Results value was appropriate, taking into account the nature of BOBS’  business as a National Standards Body carrying out quality  assurance as opposed to a commercial entity trading and  capable of securing a secondary market for its used equipment  in the event of closure. The financial statements of the Botswana Open University for the  financial year ended 31 March 2018 were audited by Messrs Grant  Thornton, Certified Auditors, who were appointed by the Council in  terms of Section 30 (2) of Botswana Open University Act, No. 13 of 2017.  The financial statements presented fairly, in all material respects,  the financial position of Botswana Open University as at 31 March  2018, and of its financial performance and cash flows for the  year then ended, in accordance with International Financial  Reporting Standards and the requirements of the Botswana  Open University Act, (No. 13 of 2017).  In the year under review, the University recorded a deficit of  P17.74 million, compared to P7.16 million in the previous year.  Expenditure increased by 27% from P107.40 million in the previous  year to P136.59 million in the year under review. Increases in  expenditure were mainly due to bad debts of P12.03 million  incurred in the year under review and employee costs which  increased by 13% from P71.02 million in the previous year to  P80.47 million in the year under review.  Income increased by 18.5% from P100.45 million in the previous  year to P118.75 million in the year under review. The University is funded by Government grants, and in the year  under review the grant was P90.55 million, representing 76% of  total income, compared to P74.68 million in the previous year.  Another notable source of income was student application and  tuition fees of P26.42 million.  109 