3.2  Enforcement of Credit Terms for Customers – Repeat Finding Management was therefore advised by the auditors to take  sterner steps to follow up debtors, improving control over and  collection of debts. The Board was further advised that management should evaluate the policy on balances receivable from the Government departments and consider  charging interest on long outstanding balances, in an effort to  recover the highest interest charges on overdrafts and loans. In response management stated that the Ministry had not been  paying debts in the last 2 years citing budgetary challenges. However, the Ministry had started paying the outstanding debts.  Management also stated that from April 2018 to date P84 million  had been paid and that for long outstanding debtors other than  the Government, they had engaged debt collectors to assist  with recovery. Other measures included freezing the customer  accounts.  During the review of the Trade Receivables the auditors noted  that certain customers had exceeded the credit terms set for  them as the examples below show: The auditors advised that if credit terms were not enforced it  could lead to long outstanding balances receivable from debtors leading to cash flow difficulties. It could also lead to the  Board providing additional credit to customers without appropriate consideration. The auditors therefore advised management to review the currently established credit terms  regularly and revise them as necessary so that they could then  be used effectively to closely monitor outstanding receivables  balances, to provide early warning of problem accounts, and to  prevent additional credit from being approved without appropriate consideration. In response management stated that appropriate action had  been taken for customers who had exceeded credit terms,  including attaching property and handing debtors to debt collectors.  106  Customer  Balance over 120 days (P) Ultimex Holdings  7 659 791  Food Relief Services –Cowpeas 2016/17  10 143 754 Techno Feeds  504 251