3.2 Property Valuation 3.3  Advances Against Gratuity  Auditor General’s comment  undesirable but did not pose any material risk to the operations  of the Board. The Board should nevertheless expedite the process of obtaining  title deeds to complete the legal formalities.  The auditors noted that a valuation which was carried out on  land and buildings on 31 March 2017 did not split the value of  land from the value of buildings. The estimated size of the plot as  per this valuation was 10 000m 2,  while a subsequent valuation  carried out on 31 March 2018 estimated the same plot to be 13 000m 2 . The valuation report included a piece of land that the  Board was in dispute with Botswana Railways.  In response management acknowledged the finding and stated  that the opening balance was based on valuation done on 31  March 2017 by the former owner, BURS, before transferring the  property to PPADB as per the instructions of the shareholder  [MFED]. The March 2018 valuation of the property in use, which  sat on a clearly demarcated and fenced piece of land was  conducted by PPADB. However, management endeavoured to  work with the valuers, as advised by the auditors, to confirm the  actual size of the land.  The auditors noted that there were advances against gratuities  due to employees. These advances were not taxed when  paid/advanced to the employees but only taxed when they  became due and payable. The auditors advised that this constituted a non-compliance with the Income Tax Act which  states that any gratuity paid before it is due and payable  becomes a loan and therefore interest should be charged on  the loan.  In response management stated that they would engage with  BURS for advice on the matter with the view to changing the  policy if necessary, as advance against gratuity was enshrined in  the PPADB Conditions of Employment.  190 