2.2 Financial Results 2.3 Working Capital 3.0 Management letter 3.1 Property Plant and Equipment  In the year under review, the Bureau recorded a loss of P81 930,  compared to a loss of P831 109 in the previous year. Income  increased by 4% from P83.64 million in the previous year to P86.83  million in the year under review, while expenditure increased by  3% from P84.47 million in the previous year to P86.91 million in the  year under review.  The Bureau is funded by Government grants and in the year  under review the grant was P71.74 million, representing 83% of  total income.  Other Income  was P11.49 million from sale of  services and standards, P2.99 million rental income, P88 216  finance income and P576 118 sundry income.  The working capital position of the Bureau as at 31 March 2018  showed total current assets of P9.45 million and total current  liabilities of P11.53 million, resulting in a net current liabilities  position of P2.08 million.  The current liabilities included P7.95 million for employees’ gratuities and leave pay.  The following was the significant matter raised by the auditors  and the management response thereto:  The auditors noted that the entity did not incorporate residual  values in estimating depreciation of property, plant and equipment, contrary to International Accounting Standard 16,  which requires for depreciable amount of an asset to be determined after deducting its residual value. The auditors further  noted assets on the assets register with nil book values which  were still in use. This was a further breach of the requirements of  International Accounting Standard 16 that useful lives be reviewed at least at each financial year-end.  In response management stated that they accepted the recommendation to estimate residual values and review useful  lives of property, plant and equipment for immediate implementation. However, with regard to residual values for  laboratory equipment, management were of the view that a nil  108 