3.0 Management Letter 3.1  Agency Agreements - Terms and Conditions  3.2  EMS Government Mail  3.3  Accounting for Donated Stamps for the Philatelic Museum  company, they had not been profitable in the immediate past  and the company had not managed to fully recover from the  Government the costs of servicing the universal service obligations.  The following were some of the matters raised by the auditors  and the management responses thereto:  The auditors noted that the company had not been complying  with the agency agreement terms and conditions with respect to  Botswana Savings Bank contract which stipulates that the amount collected on behalf of BSB should be remitted to BSB  within 10 days of claims and receipts, failure of which a penalty  of 10% per annum would be charged. As a result of non- compliance the company was charged P574 520 as penalties for  late payment. The penalties for the year under review had not  been quantified and included in the financial statements.  In response management stated that they continued to monitor  and ensure compliance to the agreement. They further stated  that it had taken a long time to agree on proposed revised  agency rates as the current ones were un-economic.  The auditors noted that there were no schedules or information  maintained for the amounts due from various Government Ministries for EMS Government mail. The amounts were mixed in  one account which made it difficult for the auditors to trace  what was owed by individual departments.  In response management noted the auditors finding and indicated that they would detail all outstanding invoices by  organization by July 2018, pursue recovery from owing departments or through Ministry of Transport and Communications between August and December 2018 and  lastly make a request for write-offs of any unrecoverable amounts by January 2018.  The auditors observed that the company had not, in prior years,  included in the company’s books of accounts the donations of  149 