3.2 Corporate Governance 131. Botswana Examinations Council  2.0 Accounts  2.1 Audit Opinion In the opinion of the auditors:  2.2 Financial Results The auditors noted that the executive board members were  reporting directly to the Board hence by-passing the Chief  Executive Officer, which was not consistent with good corporate  governance. Good corporate governance requires for all employees including executive board members to report to the  Chief Executive Officer.  In response management stated that they had engaged the  Ministry to review the Act with the view to correcting the  anomaly. The financial statements of Botswana Examinations Council for the  financial year ended 31 March 2018 were audited by Messrs KPMG,  Certified Auditors, who were appointed by the Council in terms of  Section 20 (2) of the Botswana Examinations Council Act, (Cap 58:03).  The financial statements presented fairly, in all material respects,  the financial position of Botswana Examinations Council as at 31  March 2018, and its financial performance and its cash flows for  the year then ended in accordance with the International  Financial Reporting Standards.  In the year under review, the Council recorded a deficit of P3.45  million, compared to P6.16 million in the previous year. The main  contributors to the reduction in deficit are direct costs which  reduced from P146 million in the previous year to P137.81 million  in the year under review and other income which increased from  P5.19 million in the previous year to P8.78 million in the year under review. Income increased from P275.16 million in the previous year to  P276.90 million in the year under review while on the other hand  expenditure decreased from P281.32 million in the previous year  to P280.34 million during the year under review.  117 