2.3 Working Capital 3.0 Management letter 3.1  Establishment of the Levy Fund  3.2 Implementation of Provisions of The Gambling Act and Regulations  The Authority is funded by Government grants and in the year  under review the grant was P28.55 million, representing 77% of  total income, compared to P28.17 million in the previous year.  Other notable sources of income were national lottery fees of  P5.17 million, casino entrance fees of P1.47 million, annual fees of  P900 000, income from gambling machines of P422 250 and  transfer fees of P200 000.  The working capital position of the Authority as at 31 March 2018  showed total current assets of P62.34 million and total current  liabilities of P58.44 million, resulting in a net current assets position  of P3.9 million.  Included in the current liabilities were P55.67 million fees and  levies held by the Authority pending establishment of a fund in  terms of Section 134 of the Gambling Act, 2012 and P1.89 million  payroll accruals.  The following are some of the matters raised by the auditors and  the management responses thereto:  The auditors noted, as in the previous year, that a levy fund had  not yet been established by the Minister in terms of Section 134 of  the Gambling Act, 2012, into which levies imposed were to be  paid for the general benefit of the gambling industry in Botswana. The money collected by the Authority was still in its  custody.  In response management stated that the Ministry had agreed to  set up a levy fund, and the Authority and Ministry of Investment  Trade and Industry were discussing where the fund should reside. The auditors noted, as in the previous year, that the Authority did  not, in some instances, impose penalties for levies paid outside  the 10 days after the end of the month in respect of which the  levy is payable, as prescribed by Section 108 of the Gambling  Regulations. The Authority has the power to impose a 2% penalty  on the outstanding licence fee for each week during which the  176 