3.4  Deposits Payable 3.5 Insurance of Assets  *Stock write offs represent the stock value in the system but not  physically available and stock write-backs represent the stock  value not in the system but physically available. In response management stated that they were looking to  institute an audit on the causes of the variance and recommendations from the exercise would be implemented. A  consultant would be appointed by the end of December 2018.  As at 31 March 2018, BR had deposits payable to customers  amounting to P13.42 million dating back to the year 2004 which  were still recorded as a payable. Refundable deposits should be  paid back to customers or written to the income statement, if not  refundable.  In response management stated that out of the P13.42 million, an  amount of P12.5 million relating to Government grant had been  corrected and classified as grant while the remaining transactions were being investigated. Once determined as refundable, management would locate the respective customers and refund them accordingly, otherwise the amounts  would be cleared to miscellaneous income.  BR used to have a General Fund account set aside for purposes  of insurance of its assets which it had since depleted. It was  observed that BR had an asset base worth P4.4 billion, and only  P20 million for motor vehicles is insured, the rest was uninsured. For a business that deals in transportation of goods and services,  the cost to repair its assets considering the increase in train  accidents in the past few years, is likely to be high.  In response management stated that they once floated a  tender for the insurance of the BR assets. However, the quotations received were too high and therefore expensive.  Management was considering other options of insuring its assets  such as opening a general insurance reserve for self-insurance. 162  Narration Amount  Stock write-offs* 16 776 418.14  Stock write-backs*  (13 654 346.03)  Net Variance/Difference  3 122 072.11 