2.3  Working Capital 3.0 Management Letter 3.1  Lapses in Accounting for Fixed Assets and Maintenance of the  Fixed Assets Register  Income increased by 14% from P83.79 million in the previous year  to P95.44 million in the year under review.  The revenue of the Council for the year under review was P83.84  million, of which P52.72 million was Government grant and P31.12  million was Human Resource Development Fund administration  fees.  As at 31 March 2018, the working capital position of the Council  showed current assets of P66.97 million and current liabilities of  P33.10 million, resulting in a net current assets position of P33.87  million. Current liabilities included P18.46 million provisions for gratuities  and leave pay and P6.39 million of unutilised grants which may  be used for other Council’s operational activities upon approval  by the Board.  The following was one significant matter raised by the auditors  and the management response thereto:  The auditors noted that some assets did not have residual values,  fully depreciated assets were still in use and there was a lack of  clarity on how the useful lives were determined from the established range for furniture and office equipment, gym equipment, computer equipment motor vehicles. The auditors further noted some assets that were in use but not  reflected in the fixed assets register and that 'residual values of  assets were not reviewed annually, which was in breach of  International Accounting Standard 16.  In response management acknowledged the auditors’ finding  and undertook to implement the recommendation. They further  stated that some of the fully depreciated assets were assessed  and identified for disposal before the end of the financial year  but were only disposed of after the year end. Management  further stated that the assets not reflected in the assets register  were a few old assets previously identified for disposal and fully  impaired in 2009/10 but were then brought back into use due to  shortages and inadvertently not reinstated.  178 