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SCHOOL OF FINANCE AND PROFESSIONAL STUDIES cont.
As at AAT Francistown ACCA CIMA BICA PGDT CIPS TOTAL
March
AAT Gaborone
2022 54 30 7 10 10 66 10 189
2021 50 27 5 6 4 47 2 141
Table 11: Number of graduates per program
Accolades Human capital developed and PhD level. During the current
The school continues to position The school attended various teaching financial year, three (6) lecturers were
itself as the preferred study support capacity building workshops virtually studying towards Master’s Degree
destination for professional business to support teaching, learning, and three (3) at PhD level. Two has
courses. To this end, the school research, and innovation. The since successfully completed their
has maintained the ACCA Platinum most important training workshop Master’s Degree.
Status and CIMA Premier Partner for attended centered around building
achieving set standards of academic capacity in research and innovation.
performance as per the ACCA and In addition, the school continues to
CIMA requirements respectively. provide long-term training at Masters
Celebrating 25 Years of Transforming Lives.
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SCHOOL OF BUSINESS AND LEISURE
Overview of Derby (UoD) for the leisure of over 11% from the preceding
programmes Bachelor of International enrollment of 1319 during the same
The School of Business and Leisure Tourism Management and Bachelor time in 2020/21 (March 2021). The
(SBL) develops relevant, competent, of International Hospitality leisure portfolio experienced a huge
and qualified individuals for Management. Programmes offered drop in enrollment partly because of
employment in the tourism, finance, in partnership with Sheffield Hallam the negative impact of COVID-19 on
and business service industries in University (SHU) are the business the tourism, travel and leisure sector.
Botswana and worldwide. Through programmes such as Bachelor of
excellence in teaching, research, Business Management, Bachelor Teaching, Progression and
and engagement, SBL advances of Entrepreneurship and Business Graduation Performance
knowledge and skills in the Leadership, Bachelor of Accounting The progression rates per module
aforementioned fields. SBL takes and Finance, Bachelor of International were above target. On average,
pride in fostering a dynamic, high- Finance and Banking. student progression from one year to
performance, results-oriented culture. the next remains over 90%. Through
The School recognizes the importance The School of Business and Leisure Assurance of Learning (AOL) efforts,
of exposing learners to practical skills primarily offers Leisure programmes the school continues to seek to
while studying for their degrees as in Francistown at the facility shared reduce the rates of failure, retakes,
such it has partnered with industry to with the Francistown College of and withdrawn students.
‘bring the industry to the lecture halls’ Training and Vocational Education
and for practical attachments. (FCTVE) located in Gerald Estate. All Final-year business and leisure
Business programmes are available students graduated in the third
The School recognizes the national only in Gaborone, while International quarter of financial year 2021/22.
push to move away from reliance Tourism Management, is available in Table 10 Graduation Performance
on natural resources and toward both Gaborone and Francistown. displays graduation statistics for
a knowledge-based economy. the academic year 2020/2021
Consequently, the School aims to Significant Events (2019/2020). In December 2021, 360
produce self-reliant graduates who The COVID-19 epidemic significantly students graduated, compared to
are not only able to be gainfully impacted the travel, tourism, and 333 in December 2020. A total of 42
employed upon graduation but are leisure industries which possibly first classes were registered, which
also capable of starting their own made programmes for this sector was identical to the previous year.
business ventures. unattractive to learners. During the Approximately 96 percent (87 percent
reporting period, enrolled students - 2020) of the graduating class of 2021
The undergraduate degree pursued their studies full-time. received a second-class lower division
programmes are offered on a or higher.
collaborative model in partnership As of the end of March 2022, the SBL
with two universities: the University had 1174 students enrolled, a decline The graduation rate improved
Celebrating 25 Years of Transforming Lives.
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SCHOOL OF BUSINESS AND LEISURE cont.
dramatically across programmes in graduation rate. All SBL programmes learning. Considering the COVID-19
2021, as seen in the final two columns received first-class passes, with IFB epidemic, these graduation rates
of Table 1. Accounting and Finance leading the way with 14 first-class were far above expectations.
had the highest graduation rate (96%), passes, followed by Accounting and Assessments had to be switched to
followed by International Finance and Finance with ten first-class passes. online and most of the instruction was
Banking and Business Management, In general, the graduation rates for virtual with occasional face-to-face
all of which had 94 percent. Only IHM the academic year 2020/21 show contact (blended learning).
and ITM fell short of the 90 percent student satisfaction with teaching and
Enrolled Graduating 1st 2,1 2,2 3rd Pass % Comparison
Programme 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
A&F 89 86 85 84 10 10 45 44 25 24 5 6 0 0 96 98
IFB 77 67 72 66 14 14 36 26 22 22 0 4 0 0 94 99
EBL 64 43 58 40 7 2 21 13 29 18 1 7 0 0 91 93
BM 83 49 78 30 2 2 32 23 39 5 5 0 0 0 94 61
ITM 71 92 46 83 5 9 24 31 14 27 2 10 1 6 65 90
IHM 27 33 21 30 4 5 12 5 5 10 0 10 0 0 78 91
Total 411 370 360 333 42 42 170 142 134 108 13 37 1 6 88 90
Table 12: SBL Summary of Graduation Numbers 2020/21 (December 2021)
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RESEARCH PORTFOLIO
School of Post Graduate Studies frameworks on virtual teaching Generally, research activity that was
The School of Postgraduate Studies and learning systems on learning curtailed by the COVID-19 pandemic
has the mandate to oversee all outcomes. Secondly the study also because a lot of activities could not
aspects of research and consultancy sought to investigate learner levels be undertaken such as conferences
at BAC. Several consultancy projects of commitment to virtual teaching improved somewhat in the year
are carried out through the Portfolio and learning approaches and further April 2021 to March 2022. The SBL
Manager Corporate Courses, but to investigate challenges faced by in collaboration with SPGS plans to
a lot still needs to be done. A book higher education learners due to increase research productivity by
chapter has been published with virtual learning. co-publishing with students from
Springer, Singapore, and a book independent study research, form
project is ongoing with Emerald and The SBL staff are also in the process research clusters to mentor junior
international contributors. of writing a book project titled: “The researchers, co-publish from the
Botswana Tourism and Hospitality clusters and organize postgraduate
The College has since established a Product Marketing”. The intended students’ research conferences with
desk for data collection and analysis aim was to have all draft chapters organizations that postgraduate
for any institution that requires the delivered by March 2022; however, student who are supervised by SBL
facilitation, coordination and analysis only 40% of the book chapters have and SPGS staff will have undertaken.
of surveys and questionnaires. been submitted by Leisure and
Business module leaders. This book is SCIS Research / consultancy
SBL Research & Innovation Report – planned to be released in 2022. performance
2020/21 The school published four articles
SBL staff conducted the various The Business Portfolio is also in the in the 2021/22 period. These were
research activities during 2021/22 process of writing a book project in the areas of network/information
reporting period: There was a study titled “The Entrepreneurship” led security and data analytics. Two of the
on the relationship between BAC by Dr. W. Mutoko. This project is at contributions were also presented at
policy framework on higher education an advanced stage and almost all conferences.
virtual teaching and learning and the chapters have been submitted.
learning outcomes. The objectives Potential publishers for the book have
of the study were to; investigate been identified and it is expected that
the effect of BAC’s COVID-19 policy the book will be published in 2022.
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RESEARCH PORTFOLIO cont.
Year of Publication Title Publisher
Publication
2021 N. Mpofu, C. 2. Data wrangling for virtual attendance: IEEE lnternational Conference on
Kaondera, F. A conceptual model,” 2021 Electrical and Energy Technologies
Sidume, R. (ICECET) - Cape Town, South Africa,
Tamukate and “Operational framework for Enhancing lnternational Conference on Electrical,
R. Venna, Trust in ldentity Management as-a- Computer and Energy Technologies
Service (ldMaaS),” (ICECET), 2021, pp. 1-6, doi:
2021 N. Mpofu, R. 10.1109/ICECET52533.2021.9698433.
Chikati and M. 1. Book Chapter: Predicting Fraudulent
Ndlovu, Motor Vehicle Insurance Claims Using IEEE lntemational Multidisciplinary
Data Mining Model. eBook ISBN lnformation Technology and Engineering
9781003097181 Conference
(IMITEC), 2021, pp. 1-6, doi:
10.1109/IMITEC52926.2021.9714620.
2021 Jacob
Muchuchuti
& Stewart
Muchuchuti
Table 12: SCIS Research contributions
In addition to the SCIS also engaged in three project collaborations with industry as shown in table 3 below.
Year of Start Date End Date Detail of activity, including names of companies
Publication Jan-21
Jan-21 Jun-21 Assist SME automation (ABSA lnnovation)
Dr I. Njni &
Mr C. Kaondera Dec-22 Automation of insurance applications (Exclusive Insurance
In progress System Customation)
Dr I. Njini
Vendor and supplier data base management systems
Mr P. Letshwiti & Jan-21 (Railways vendor management systems)
Mr C. Kaondera
Table 13: Project engagements with industry
SFPS Research Engagements
The school continues to build capacity in research and innovation through case studies done at different levels as part
of the professional qualifications’ programmes. This will lead to increased research in various fields of the professions.
Celebrating 25 Years of Transforming Lives.
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STUDENT SUPPORT AND
WELFARE DEPARTMENT
Throughout the year beginning on A webinar was held for the BAC in the delivery of student welfare
the 1st of April 2021 until the 31st Student community to enhance their services. As such, the SRC elections
of March 2022, Student Support understanding of mental health, were held both in Gaborone &
& Welfare Department through an symptoms and to encourage them Francistown in March and April 2021,
array of initiatives geared towards to seek professional help when they respectively. The elections were
enhancing student experience, experience challenges. held online through Microsoft Teams
continued to offer students services in both campuses and students’
aimed at nurturing student life Health and Wellness participation in the election process
through co- curricular activities. Clinics in both Gaborone and was satisfactory.
Francistown continued to offer health
Most of these activities were student and wellness services to students The newly elected students’
led and revolved around a holistic such as consultations, provision of representatives were inaugurated
approach to the physical, emotional, prescription drugs, HIV testing and into office on the 15th and 28th
psychological, financial, social, and health education. A total of 1264 April in Gaborone and Francistown,
spiritual wellbeing of students which consultations in both campuses respectively. Furthermore, induction
assists them to positively cope during were made from April 2021 to and training for the newly voted
their learning with BAC. Provision of March 2022, with Gaborone at 779 cabinet members was done on the
such services considered the situation while Francistown registered 485 31st of May 2021, where different
as presented by COVID-19. consultations. heads of departments presented on
the duties of each department and
Below are areas that Student Support Furthermore, BAC continued to how they will engage the SRC.
and Welfare department focussed on collaborate with the SHE office, the
in 2021-2022; District Health Management Team The virtual training on leadership and
(DHMT) and Storkfort Clinic to do the role of different collaborative
Psycho- social Guidance & COVID-19 testing among hostel entities was done during the first
Counselling students. Case management was quarter of the year. The training was
Throughout the year the department done and followed in collaboration graced by external stakeholders who
continued to offer individual and with DHMT, SHE office, and Storkfort made presentations on different
group counselling addressing various Clinic to ensure compliance and topics. The external stakeholders
issues among them being academic, to reduce the spread likelihood. In included, the Human Resource
anxiety, mental health challenges, addition, an arrangement was made Development Council (HRDC),
family and relationship related issues. for students’ vaccination within Botswana Tertiary Student Sports
During the year, a total of 86 clients college. Association (BOTESSA) President,
were attended to and supported Urban Police Station and Counsellors.
on different issues including Student leadership & governance Topics covered on the training
relationships, academic related issues, The Student Representative Council included Student Affairs Norms and
anxiety, depression and grief. (SRC) has been a pivotal stakeholder Standards,Substance Abuse, crime,
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STUDENT SUPPORT & WELFARE DEPARTMENT cont.
illegal protests, Mental Health in in athletics, First Capital Bank students to capacitate them with
the COVID-19 Era, and Character FIDE Rated International Festival coping skills and a motivational
Building for leaders. Furthermore, Showdown and intervarsity debates. video was developed and shared
trainings were held for students’ In the debate competitions, BAC with students including students
leadership structures. These trainings Gaborone took position one and were with disabilities. Furthermore,
were aimed at capacitating them crowned the best debating team. In continuous support was given to
with leadership skills and emotional addition, to enhance student life, five special needs students through
intelligence. aside football competitions were held sharing of recommendations with
for hostel students. Furthermore, the schools and other departments
Sports & Recreation staff members attended BOTESSA (esp. Examinations unit). Specific
The BAC sports & recreation unit organised training to become arrangements were made to
continued to facilitate engagement coaches. ensure that the students achieve
of students in plans for extracurricular their academic goals without any
activities in collaboration with Special dispensation students (i.e., hindrance, especially on issues related
BOTESSA after the lifting of the OVC’s, RADs & Special needs) to class allocations and extra time for
ban on sporting activities due to Workshops were held for Orphaned assessments and exams.
COVID-19. Students participated and Vulnerable Children (OVC)
Figure 4: Statistical Summary of services offered to students during the year
The main challenges encountered services to the student community, medications, prescriptions were made
include Shortage of medications in the department has been engaging for students to collect such medication
pharmaceuticals and accommodation different stakeholders as mitigation in public/government health facilities.
shortage in Gaborone. To enhance to our shortfalls and these are the There is continuous engagement
student living and learning DHMT, Specialized professionals, and with the industry and community on
experience as emphasized by the leveraging on technology in offering finding accommodation to address
BAC strategy is central to delivery of services. the accommodation shortage in
services to the student community Gaborone.
and external stakeholders. To ensure In addition, in cases where the
enhanced provision of welfare campus clinic did not have certain
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HUMAN CAPITAL
Overview
The College continued to operate Gaborone and Francistown. The the uptake of psychosocial support
under a strenuous environment purpose of the meetings was to and financial counselling services by
for the year 2021/22 due to the update the college community on employees.
COVID-19 Pandemic. However, with ongoing developments, socialise the
the easing of the COVID-19 positivity recently revised conditions of service The College introduced home-based
rates towards the end of the year, the as well as cascade the 2023/27 care at the height of COVID-19
College was also able to ease into institutional strategy. The November hospitalisations in 2021, utilisation
its engagement initiatives including 2021 meetings were held virtually of this service has been low with one
wellness activities. while the March 2022 ones were (1) employee in Francistown having
held physically for fully vaccinated utilized the service and in Gaborone
Resourcing employees however a virtual link was 3 employees have utilized the service.
provided for employees who were not
Notwithstanding continued able to attend the physical events. Learning and Development
During the year under review, one
challenges posed by the COVID-19 The College held long service PhD sponsorship was awarded for
awards on the 3rd December 2021 in Doctor of Philosophy in Business
Pandemic, the College has been recognition of employees who have Analytics and Data Science (Ph.D.
been in service with the College for BADS) beginning September 2021
able to fill eighteen (18) positions five (5) years, ten (10) years, fifteen (15) until September 2024. Furthermore,
years, twenty (20) years and twenty four Masters’ Degree programmes
successfully. The staff headcount five (25) years respectively. There were approved for four (4)
were twenty seven (27) employees Development Lecturers in the region
at the end of the year stood at 275 who were eligible to be awarded. and internationally. This brings the
total number of employees who have
against a total staff establishment of The College participated in the been sponsored to pursue long term
inaugural FNB Kazungula Bridge training since 2017 to forty-five (45) of
278 representing a vacancy rate of Marathon that was held in Kazungula which twenty-nine (29) were trained as
on the 26th February 2022. There a result of recommendations coming
0.72% being 3 vacancies yet to be was also a 25kms virtual marathon out of the Organisational Review
challenge held in February of which exercise in 2019.
filled. employees were expected to cover
5kms each day for 5 days. These During the period under review,
Turnover statistics activities were aimed at achieving six (6) of the sponsored employees
The College continued to operate team engagement as well as completed their studies bringing the
with a stable staff turnover rate. The encouraging employees to take up total number of employees who have
College lost only seven (7) employees physical activity in order to combat completed their studies to twelve
in the year under review. The the prevalence of sedentary lifestyles. (12).
cumulative turnover rate at the end of There has been an improvement on
Q4 stood at 2.55% which is below a
target rate of 5%. Only two (2) of the
departures were voluntary.
Employee Engagement and
Wellness
In terms of employee engagement,
the College held its half yearly
staff consultative meetings on the
November 2021 and March 2022 in
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INTEGRATED FACILITIES
MANAGEMENT
Overview
The Integrated Facilities Management job satisfaction, which can lead to Area (CRA) students accommodation
Department coordinates estate improved financial outcomes for the areas in Gaborone and Francistown
and facility related services. The business and helps attract and retain respectively. The project formed
department oversees the operational employees. part of the Business Continuity
activities that maintain and run the Management to primarily maintain
physical and logistical facets of the BAC therefore implores on a successful a continuous and safe learning and
campus including management facility management practice that working environments in addition to
of the use of space, utilities, and ensures that the organization’s the protection of the College’s ICT
maintenance in order to enhance the workplace and learning environment Infrastructure.
quality of campus life. functions properly. This is achieved by
the integration of the people, place, Gaborone Infrastructure Master Plan
The department encompasses process and technology functions. A Master Plan is a dynamic long-term
multiple disciplines to ensure planning instrument that provides
functionality of the built environment At the beginning of the 2021/2 a conceptual layout to guide future
by integrating people, place, and Financial year, the Department growth and development. A Master
process. The place represent an embarked on a number of Capital Plan was prepared for Plot 69097
organization’s physical workplace Expenditure (CapEx) projects and 50661 in Gaborone. The Master
from which the department determine and below is a summary of major Plan was prepared to facilitate orderly
the requirements for a safe, healthy, undertakings for the year. development and optimum use of
productive learning and workplace. space based on commercial demand
Completed Projects as well as the College requirements
Facilities are typically a company’s for academic developments. The
second largest asset, right after its Backup Generators Master Plan sought to provide a
employees. This means that facility The College Commissioned an phasing and implementation schedule
management plays an important undertaking for the Supply, Delivery and identify priorities for action and
role in supporting the employees. and Installation of Backup generators act as a framework for redevelopment
Effective facility management helps at its Fairgrounds Financial Centre and attract private sector investment.
increase employee productivity and (FFC) and the Central Residential
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INTEGRATED FACILITIES MANAGEMENT cont.
Solar Geysers (Gaborone Main The assessment and water saving 7596.17sqm. The development is
Campus Hostels) installation parts of the project have undertaken through a Public Private
As part of its utility reduction plan, the been duly completed and remedial Partnership (PPP) model between
College installed Solar geysers in part works will be undertaken under Botswana Accountancy College
to reduce energy consumption from the maintenance line in the current (BAC), Botswana Public Officers
the Botswana Power Corporation financial year. Pension Fund (BPOPF) and Messidor
(BPC) grid for heating of water at the as a facilitator and Project Manager.
Gaborone Hostels. The undertaking Ongoing Projects The project is the first of its kind and is
also formed part the sustainability progressing well, practical completion
initiatives through harnessing sunlight Electrical Upgrade and occupation is anticipated in
for energy. Electrical upgrades form part of the November 2022.
College wide activities to maintain
Refurbishment of Student Hostel facilities in a good state of repair Space Audit
Ablutions and to manage risks of assets The space audit is intended to
The aim was to maintain the properties performance failure. Assessment of highlight the space challenge and
in a good state of repair and the entire electrical infrastructure chart the future space management in
generally enhance the student living has been completed. Replacement of a comprehensive manner. The space
experience, in addition to reducing aging electrical components have also needs will be aligned to the strategy
cost associated with maintaining been completed and procurement of 2022-2027. In addition to the above
aged infrastructure. The hostels were Uninterrupted Power Supply (UPS) is projects, the department continues
refurbished at Central Residential ongoing in Francistown as part of the to carry out preventative and reactive
Area and Tati River in Francistown. project. maintenance in accordance with
the schedules of maintenance. The
Water Reticulation Upgrade Development of Plot 61922 maintenance works are meant to
The exercise comprised of assessment The developments at Plot 61922 maintain facilities in a good state of
of the water infrastructure and comprise of two wings, a four-story repair to facilitate a conducive and
water saving devices geared teaching space block and a double safe work environment for the college
towards reducing the water bill. story office space both totaling business.
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INFORMATION
COMMUNICATIONS TECHNOLOGY
The Information Communication The Department further partners with The Digitilization Strategy is currently
Technology (ICT) department is other stakeholders to enable service under consideration for review to
responsible for implementing ICT delivery, innovation and discovery. align to the new College’s strategy
services that would afford BAC During the year under review, the for 2022-2027.
information Technology users an department had some notable
opportunity to work effectively and achievements as outlined below; Hyper Converged Infrastructure
efficiently. It is the responsibility of
the ICT Department to store, protect, The Digitalization Strategy The College embarked on a Server
process, transmit, and later retrieve The College developed a Digitalization
information, as necessary. Strategy defining ICT initiatives Refresh exercise aimed at replacing
and objectives that align with BAC
business goals. The Strategy provided the old traditional servers and storage
a roadmap that will help BAC close
the gap between current and future to an advanced technology in Hyper-
ICT needs. The Digitalization strategy
addressed key technology issues Convergence. Hyper-Converged
facing BAC and described the project
As ICT is the driving force of every and initiatives necessary to address Infrastructure brings about a simplified
organization in the modern business the identified gaps.
world, the College is continuously administration of both storage, hosts,
embracing new technologies and The ICT Digitalization Strategy
is using them to deliver business development and planning process virtual servers, virtual switches and
products and services economically, involved employees representing
efficiently and effectively. The ICT all user departments. The process physical data center switches on
Department is responsible for focused on identification of current
Technology planning, oversight and technology infrastructure, current a single window. The solution also
direction of the ICT infrastructure, technology issues and forecasted
resources and services. technology needs in addition to introduces improved computing
the services delivered by the ICT
Department. The information power and increased overall Virtual
gathered during this process was
used to identify specific technology Infrastructure resources by 30% in
recommendations.
comparison to the old servers. This
improves efficiency on managing the
Software Defined Data Center.
The Department provides critical The project is scheduled to be
completed by end September 2022
technology support to all the in the next financial year. This will
pave way for budgeting of the same
Campuses at Francistown and technology to be deployed to the
Secondary Site (Disaster Recovery
Gaborone, focusing on administrative Site) in the financial year 2023/24.
systems, information management,
networking, telecommunication,
data centers, information security
and privacy, server and storage
infrastructure, customer services and
technology business continuity.
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INFORMATION COMMUNICATIONS TECHNOLOGY cont.
Implementation of Student Website Revamp productivity and learning. The
Information Management System BAC Website is a secure platform technologies introduced and
(SIMS) and Enterprise Resource for students, staff and the public to promoted by BAC to support
Planning (ERP) Solution obtain information about the College. teaching and learning, productivity
The College embarked on the Through the BAC website, the College and knowledge includes M365 Suite
development of a SIMS-ERP solution can reach out to a lot of people by (SharePoint, OneDrive, Office, Teams,
for the next three (3) years. The placement of various content about Power BI etc.), Zoom, Skills Network
development of the integrated the College’s academic and support and Adobe Sign.
solution is still at an infant stage, but services. Based on previous reports
the groundwork has already started generated from the search engine, Cloud Computing
with the mapping of all the processes it showed growth in the number of The ICT Department is gradually
and developing the Statement of users who visited the main website moving some servers/services to
User Requirements (SOUR) is already searching for information on various the Cloud environment. Since the
underway. The initial process of the programmes throughout the year. pandemic ICT has been investing in
development of the solution was to finding better ways to give the BAC
benchmark with other institutions in The ICT department working in community access to BAC services
the region and develop the SOUR conjunction with Marketing had while outside of BAC premises. The
document. throughout the year ensured that the plan is to target services that can be
website is regularly updated with the moved to the cloud and move them
BAC through the Quality Management latest information and general news. in phases. The benefits that come
System (QMS), is working towards Moreover, Marketing in collaboration with this migration include Security,
Quality Assured processes that are with ICT department has embarked Flexibility, Mobility, Insight, Increased
ISO:9001 complaint. The process on a project to revamp the website to Collaboration, Quality Control,
review started in April 2021 and was give it a full-face lift. The new website Disaster Recovery, Loss Prevention,
completed November 2021. The is expected to be launched by third Automatic Software Updates,
development of SOUR Document quarter of 2022. Competitive Edge and Sustainability.
started in February 2022 and is The move to Cloud Computing
expected to be completed by August Technology Uptake allows the BAC community (staff and
2022. The processes from QMS has BAC leverages on Technology to students) to access these services
laid a foundation to the development support teaching and learning from anywhere and anytime.
of the SOUR Document. activities. There is a huge investment
going towards licensing to support
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MARKETING AND CORPORATE
COMMUNICATIONS
Mandate out of the BAC programme portfolio, internal and external stakeholders
One of the most versatile and adaptive to ensure that it is accessible by through Sales and Marketing, Public
functions for any organisation all through intensified campaigns Relations, Branding Management,
is its Marketing and Corporate in all the traditional and digital Market Research, Media Relations,
Communications (MarComms). The media platforms targeting different Corporate Social Responsibility, as
BAC MarComms has over the year stakeholders in Botswana and well as stakeholder engagement and
showed resilience and prowess in beyond. management, to uphold the brand
responding to changes in the higher image of BAC and to promote the
learning education and the market The department plays a vital Mandate of the College, its’ vision,
in general. It is within the mandate role of student attraction and mission, and programme portfolio.
of the Marketing and Corporate recruitment, sales and promotions.
Communications to ensure the roll It also provides supports to various
Services Offered at a Glance Stakeholder Public Relations &
Engagement Communications
Student
Recruitment • Corporate Social • Brand Management
Responsibility • Digital & Social Media
• Sales & Marketing • Media Relations
• Direct Marketing • Corporate Sponsorships • Content Creation &
• International Marketing • Events
• Advertising & Promotional • Research & Innovation Management
• Customer Care
Campaigns
Figure 5: Marketing and communications functions
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MARKETING AND CORPORATE COMMUNICATIONS cont.
2021/22 Overview schools and corporate seminars and promote programmes offered at the
It has been an incredible journey since presentations. Francistown campus. In addition,
2020, to see the College rise above webinar taster sessions focusing on
the challenges experienced with the The peak recruitment season is for SPGS Short Programmes and CIA were
COVID-19 Pandemic and collectively enrolment of undergraduate students held to boost the enrolment numbers
come up with solutions to continue for the July intake of each academic for the programmes. This year, the
to support its internal and external year which usually comprises of a marketing team collaborated with
stakeholders. The responsiveness variety of promotional activities. As AAT to boost adverts on social media
and strength of the institution and we had already adapted to new ways especially for the AAT programmes
its partners were tested during these of doing things to minimize crowding offered through the online learning
difficult times but remained resolute and reduce the risks of contracting platform. AAT contributed GBP1,500
in our commitment to find solutions COVID-19, our campaigns were towards the campaign which reached
that enabled all parties involved to revamped to align with the relevant 18,715 people on the BAC Facebook
reduce the impact of the Pandemic in targeted stakeholders through radio, page and 40,928 people in the Voice
business operations. The Marketing TV, national roadshow, print, website, newspaper Facebook page leading to
department developed and produced Facebook, Instagram, LinkedIn, an increase in the number of student
branding such as merchandise, Twitter to mention a few. enrolments in the platform.
stickers, posters, and other collaterals
to raise awareness on the protocols of A Call Center was engaged mainly for An Integrated Marketing plan was
COVID-19. tele-marketing to upsell postgraduate implemented for the July 2022
degree programmes, undergraduate intake and partnerships with media
Student Attraction and Recruitment and short-term programmes. The continued and radio interviews
Activities geared at recruitment of department also intensified social were done telephonically. In terms
students run through the course of media posts to boost promotional of publications, free coverage was
the year to ensure brand awareness, videos and advertisements to reach received from Woman to Woman
association and resonance. more people as well as to raise and Noble magazines for various
Enrolment into BAC undergraduate, awareness of the programmes advertisements on both the physical
postgraduate and short-term including the newly introduced mode copies and their online platforms.
programmes start at different times of delivery to offer three of the SBL
throughout the cycle of the Academic degree programmes on a Part time The team also embarked on a national
Year. Therefore, the department basis and the new Online learning roadshow across the country in
engages in various promotional short term programmes. partnership with Botswana University
activities including participating and of Agriculture and Natural Resources
exhibiting at education and business During this year, the department, (BUAN) and Botswana International
expositions, career fairs at secondary pushed a recruitment campaign to University of Science and Technology
(BIUST). The team also participated
AAT contributed GBP1,500 in some of the career fairs at various
towards the campaign secondary schools during the year
which reached 18,715 under review both at Junior and
people on the BAC Senior Secondary levels.
Facebook page and
Internal Communications and
40,928 people in the Voice Engagement
newspaper Facebook page The Weekly Chronicles continued to
leading to an increase in the be a key source of regular information
number of student enrolments in and updates for staff and 52 issues
were produced as part of internal
the platform. communication with content ranging
from staff achievements and tips on
health and safety, general knowledge,
ongoing recruitment campaigns,
public and international holidays,
and the Spirit n Pride campaign.
Information also shared on COVID-19
Interventions including 100% working
Celebrating 25 Years of Transforming Lives.
21/22 65
Annual Report
MARKETING AND CORPORATE COMMUNICATIONS cont.
from home, shift working, vaccination One of the key highlights
rollout schedules. It also served to for the year was
encourage and remind the BAC
team to continuously participate participation of staff on
by listening to radio interviews the 25th Anniversary
conducted on Yarona FM and Gabz Celebrations through
FM weekly shows for promotional
campaigns. testimonials and themed
dress internal campaigns
One of the key highlights for the year on the 25th of every month.
was participation of staff on the 25th
Anniversary Celebrations through adverts for both campuses and and reengage through continuous
testimonials and themed dress designed banners for the Francistown professional development during the
internal campaigns on the 25th of campus student eductaors club. year. This also includes participation
every month. Introduction of the QMS in webinars, conferences and long-
project and a competition inviting There was a design competition term training. Other developmental
staff to come up with names for QMS for the 25th Anniversary logo to be initiatives include allowing and
brought some excitement amongst used for BAC campaigns over the supporting team members to be
staff members including participation anniversary year. Congratulatory involved in cross functional College
in the Quality Management System messages and profiling of the BICA project teams. One Manager was
Webinar. graduating students were shared selected and trained as part of the
across various media. Students QMS internal Audit team, and another
Students Communication and with best results for online learning assigned as part of the Change
Support examination papers at different levels Management Team.
Facilitation of student communication gave testimonials about their learning
is one of the key focus areas for experience with the online learning The Marketing team was enrolled
the marketing and corporate platform, these were also shared on the Debswana Master Classes
communication team. For timely across social media pages. 12 weeks program delivered in
and effective communication bulk partnership with Gordon Institute
messages were sent to prospective Team Development and of Business Studies (GIBS). The
students on scholarship application Cohesiveness programmes covered topics on
updates, registration and induction The Marketing and Corporate marketing strategy, entrepreneurship,
and to current students to inform Communications team comprises innovation and creativity, going
them on opening of campuses, of the young, agile and ambitious digital, operational plans, Going
use of campus facilities, collection colleagues combined with the Global, Networking, Partnerships and
of laptops, ICT support services medium aged to older generation Relationship building, Principles of
for data sim-cards, announcement young at heart. This hybrid of Financial Management to mention a
of the 100% Virtual teaching and characters, experience and age brings few.
learning, and a change back to a high level of vigour amongst the
80:20 and further reduction to team members making cohesiveness In terms of long-term training
50:50 depending on the COVID-19 part of the teams fabric. and development, one Manager
prevalence and environment. graduated with Executive MBA
Regular communications was also For the growth and progression in 2021, and another enrolled for
shared to remind the students about of the team, it is important for the same programe anticipated to
continuation of counselling services members to constantly engage on complete and graduate in 2023.
and opening of campuses. various activities to reskill, retool
The team during the year designed
banners and posted on social media
information about students’ events
such as the SBL student club which
hosted an Investment Masterclass in
partnership with the Botswana Stock
Exchange. The team also supported
the SRC Elections annoucement
Celebrating 25 Years of Transforming Lives.
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Annual Report
MARKETING AND CORPORATE COMMUNICATIONS cont.
For the second year, a Class of 2021 Virtual Graduation
Virtual Graduation For the second year, a Virtual
Graduation Ceremony was held for
Ceremony was held the BAC Class of 2021. Graduates
for the BAC Class of with qualifications from multiple
2021. Graduates with disciplines at both Undergraduate
and Masters’ degree levels delivered
qualifications from in collaboration with the University
multiple disciplines at both of Derby, Sheffield Hallam University,
Undergraduate and Masters’ and the University of Sunderland
were conferred virtually. Preparations
degree levels delivered in included a pre-recording of all
collaboration with the University of speeches, the best students and
Derby, Sheffield Hallam University, valedictorian prize giving and the
academic procession into a quality
and the University of Sunderland production for broadcasting on the
were conferred virtually. scheduled date of the graduation.
Stakeholder Engagement and featured the former Board Chair Dr The ceremony was streamed live via
Events Shabani Ndzinge with a celebratory a Zoom Link on the BAC Facebook
The Silver Jubilee ((dedicate a spread article detailing and profiling the page which gave all our stakeholders
for this, pictures to be shared), then key milestones achieving during the including our partner universities to
add another spread for the timeline transition of the College over the watch the ceremony wherever they
of achievements) years. The BAC first Board Chairman were. The graduating Class was
Mr Nelson Mokgethi and the second provided with data-sim cards for them
The Year 2021 marked a great Executive Director Mr Michel Lesolle to be part of this momentous event
milestone for the College as the were also interviewed to contribute of their lives and they shared in their
Silver Jubilee Anniversary activities to the journey of the College by excitement, experience and proud
were launched to be celebrated for storytelling about their journey as the moments as they participated in the
twelve months to demonstrate the leadership of this prestigious national celebration to cherish their special
achievements of the College from asset. accomplishments in the company of
both the academic and institutional their families and friends.
development. Botswana Accountancy As per norm BAC students were
College (BAC) prides itself as a engaged to share their views on Participation on local and
renowned business school of choice how the College can celebrate this international conferences
providing quality education and a significant milestone bearing in mind The 2021 International Women’s
strong brand goodwill attained during COVID-19 Protocols. A competition Day webinar hosted by the College
the formative and transformative for students to design a logo for the is one of the engagement activities
years of its existence, offering quality 25th Anniversary celebrations was where, amongst the knowledgeable
Business Education for generations to launched, and the competition was array of panelists that were invited,
generations. won by Ms. Wendy Metlha who is a a BAC student studying BSc (Hons)
CIPS student. Ms Metlha highlighted Business Intelligence & Data Analytics
A virtual ceremony to commemorate that the logo design was inspired by at the Francistown Campus was given
the 25th Anniversary was held and the BAC Logo features. The logo a platform to share with the world,
led by the Honourable Minister of was used across BAC communication her experience as a student at BAC
Education and Skills Development Dr and promotional campaigns for the and a future Data Analyst in a male
Douglas Letsholathebe. A magazine duration of the anniversary year. dominated industry.
cover on the Noble Magazine
Over the years, BAC has been able
to strengthen relations with various
stakeholders. This has resulted in
numerous partnerships adding more
value to the BAC brand. As the
institution grows in all aspects, it
endeavours to tap into international
partnerships for benchmarking
Celebrating 25 Years of Transforming Lives.
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Annual Report
MARKETING AND CORPORATE COMMUNICATIONS cont.
purposes and ideas exchange among business/ market expansion/brand of mouth from family and friends plays
other reasons. growth. a vital role in increasing the number of
brand referrals.
Participating in Conversations with The highlights of some of the
Africa (CWA) has been one of the ways findings indicate that, majority of the Customer Service Survey
BAC gets opportunities to network respondents have shown that they are
with international participants to aware of the institution (BAC). Family, The results of the survey show that
create a platform to expand into friends, and social media continue 91% of the respondents indicated
other markets. CWA is a Botswana to be the most common mediums they are likely to come back to the
centred organisation which is aimed people learn about BAC. However, college for another service. More than
at promoting IntraAfrica Trade, there is a slight significant number 75% of the respondets said the quality
African Continental Free Trade Area of respondents who have shown of service was very good. Those who
(AfCFTA) and forge intercontinental a recognition BAC billboards and considered the experience poor
partnerships between Africa and her usage of Television have recorded were 5% respectively and this was
global counterparts by sensitizing quiet a small number of respondents attributed to by failures to access the
on the existing agreements and as compared to other mediums. The online application. Thito Academics
partnerships between them. The college will continue with a holistic and delayed responses with regards
forum attracts Government officials communication strategy of utilizing to payments and comfirmation of
from Botswana, and African countries, different media platforms to appeal enrolment. Improvement of digital
Diplomatic Heads of Missions, Private to different market segments. application process through regular
Sector, and NGO’s which BAC takes checks and updates to increase
advantage of, to network and profile Brand Awareness Survey efficiency is ongoing. BAC is
itself for possible future business implementing recommendations to
opportunities. The survey was conducted using improve access as well as improve the
the Facebook platform, 64,3% of service turnaround times.
Harnessing the Power of Marketing the respondents were 21-25 years Refresher training on BAC
Research for Growth olds, 28,6% being 18-20 years, 25- programmes and services was
The Marketing and Communications 35 years and 36- 45 years had 3.6 provided to the customer service
team relies on the quarterly various % each. Most of the respondents officers and academic administrators
marketing surveys conducted to were prospective students, currents to ensure that they are up to date with
gather insights from stakeholders students and alumni. The small the all-program information and that
to enhance and improve on number of respondents who have they are equipped with the requisite
the department’s go to market indicated that they do not follow information to serve BAC customers.
strategies including branding, the BAC page are mostly parents
student recruitment, marketing who unliked the page since they feel Income Generation and Value
communications and customer the content is not relevant to them. Creation
service. Family and friends increased to The marketing team has over the years
51,7% in Q4 from 50% in Q3, other experienced growth in stakeholder
The primary purpose of these studies mediums such as radio, billboards and relations and partnerships. As a
is to measure brand awareness, to television have a moderate impact on result of the strong partnerships
strengthen and increase awareness raising awareness of the BAC brand. created, nurtured and built over the
of the BAC brand, to find out the Most people perceive BAC as an years, income generated through
impact of various communication institution that offers value in terms sponsorship increased by 48.90%
mediums students learn and where of diversity in its programme offering to reach P252,400. In addition, the
they get information about Botswana and delivery mode. PR value also increased by 6.67% to
Accountancy College, to strengthen P136,036.00 across various media
and improve consumer brand Due to diversity in Programme partnerships (radio, newspapers and
awareness and most importantly to offering and professional and magazines). The total sponsorships
investigate on clients, repeat business international associations, majority sourced for both the Golf Day and
intentions and explore strategies for of people regard BAC as the best Graduation Ceremony was worth
institution. Additionally, positive word P298,000 and P64,800 respectively.
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Annual Report
FINANCIAL PERFORMANCE HIGHLIGHTS -
AUDITED FINANCIALS STATEMENTS FOR YEAR ENDED 31st MARCH 2022
Financial Performance • Other incomes were reported fees realizing a P5.1m increase
The Financial performance for the at P31.8m which is in line with and student laptops which were
year end March 2022 was reported P31.3m reported in 2021. amortized to the value of P7.0m.
follows: The economy suffered a high
• The total income reported average inflation of 8.2% which
Statement of Comprehensive amounted to P222.0m compared contributed to a rise in costs.
Income to P207.9m which was achieved in • The College suffered a loss of
For the 2022 financial year, the the prior year, giving an increase P23.6m while a loss of P11.4m
College realized tuition income of of P14.1m or 6.8%. was incurred in 2021. This is an
P190.1m compared to P176.5m increase of P12.2m from prior
in the prior year resulting in an • Administration costs incurred year.
increase of P13.6m. The increase was by the college amounted to
largely driven by the College slowly P238.9m against P231.5m
recovering from lower student intake reported in the prior year. The
therefore increasing revenue for the increase in administration costs
period. was largely attributable to staff
costs which increased by P4.0m
from prior year, Partner university
Figure 6: Statement of Comprehensive Income
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21/22 69
Annual Report
FINANCIAL PERFORMANCE HIGHLIGHTS - AUDITED FINANCIALS
STATEMENTS FOR YEAR ENDED 31st MARCH 2022 cont.
Statement of Financial Position
Total assets had a significant movement of P24.1m moving from P265.9m to P241.8m in the current year. This net
movement was driven by a reduction in trade receivables as DTEF had settled majority of its debts by year end compared
to prior year.
Figure 7: Statement of Financial Position
Statement of changes in Equity
The statement of changes in equity closed at P75.1m in the financial year ending 2022 from P98.7 in 2021. This was driven
by the comprehensive loss of P23.6m.
Statement of cash flows
The College started the year with a negative cash balance of P19.5m. During the year, the College received P44.6m from
operations and P38.9m was received from financing activities, while P41.1m was directed towards investing activities.
This resulted in a positive closing cash balance of P22.9m.
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Annual Report
BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE
T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee)
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Celebrating 25 Years of Transforming Lives.
21/22 71
Annual Report
FINANCIAL STATEMENTS
73 Statement of Directors’ Responsibility and Approval of Annual Financial Statements
74 Independent Auditor’s Report
78 Statement of Comprehensive Income
79 Statement of Financial Position
80 Statement of Changes In Equity
81 Statement of Cash Flows
82 Notes to the Financial Statements
116 Notice Of The 2022 Annual General Meeting
117 Proxy Form
118 Appendix
The financial statements are expressed in Pula (“P”), the currency of Botswana
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72 21/22 BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE
Annual Report T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee)
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
GENERAL COLLEGE INFORMATION
Country of incorporation and domicile Republic of Botswana
Registration number: BW00001178485
The Nature of Business: College provides tuition in a range of internationally
recognised business programs.
Registered Office Address: Plot 50661, Fairgrounds Office Park
Botswana, Gaborone
Postal address: Private Bag 00319
Gaborone
Botswana
Auditors: PricewaterhouseCoopers Botswana
Bankers: Absa Bank Botswana Limited
Stanbic Bank Botswana Limited
First National Bank of Botswana Limited
Secretary: Desert Secretarial Services (Proprietary) Limited
Directors: Dr. S Ndzinge***+ Resigned 01 April 2022
Ms. S Leburu*+ Full year
Mr. J Motshegare**+ Full year
Mrs. F S Molefe**+ Full year
Ms. Tebogo Bagopi**+ Full year
Mr. M C Z Libengo**+ Full year
Mr. M S D Mesotlo**+ Resigned 06 October 2021
Mrs. E Gonsalves*** Full year
Professor K Mosepele*** Interim Board Chairperson
Mrs. M Mvami**+ Appointed November 2021
*Executive Director **Non-Executive Director ***Independent Non-Executive Director
+Motswana
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BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE 21/22 73
T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) Annual Report
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
STATEMENT OF DIRECTORS’ RESPONSIBILITY AND APPROVAL OF
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
The directors of Botswana University College of Business Science t/a Botswana Accountancy College (“The College”)
are responsible for the annual financial statements and all other information presented therewith. Their responsibility in-
cludes the maintenance of true and fair financial records and the preparation of annual financial statements in accordance
with International Financial Reporting Standards.
The College maintains systems of internal controls which are designed to provide reasonable assurance that the records
accurately reflect its transactions and to provide protection against serious misuse or loss of the College assets. The
directors are also responsible for the design, implementation, maintenance and monitoring of these systems of internal
financial control. Nothing has come to the attention of the directors to indicate that any significant breakdown in the
functioning of these systems has occurred during the year under review.
The going concern basis has been adopted in preparing the annual financial statements. The directors have no reason
to believe that the College will not be a going concern in the foreseeable future based on forecasts and available cash
resources.
Our external auditors conduct an examination of the financial statements in conformity with International Standards on
Auditing, which include tests of transactions and selective tests of internal accounting controls. Regular meetings are held
between management and our external auditors to review matters relating to internal controls and financial reporting.
The external auditors have unrestricted access to the Board of Directors.
Approval of annual financial statements
The financial statements set out on pages 78 to 115 were approved and authorised for issue by the Board of directors
on ______________________________and are signed on its behalf by:
______________________ __________________________
Executive Director Interim Board Chairperson
Ms. Serty Leburu Professor K Mosepele
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74 21/22 BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE
Annual Report T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee)
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Independent auditor’s report
To the members of Botswana University College of Business Science T/A Botswana Accountancy College
Our opinion
In our opinion, the financial statements give a true and fair view of the financial position of Botswana University College of
Business Science T/A Botswana Accountancy College (the “College”) as at 31 March 2022, and of its financial performance
and its cash flows for the year then ended in accordance with International Financial Reporting Standards (“IFRS”).
What we have audited
Botswana University College of Business Science T/A Botswana Accountancy College’s
financial statements set out on pages 78 to 115 which comprise:
• the statement of financial position as at 31 March 2022;
• the statement of comprehensive income for the year then ended;
• the statement of changes in equity for the year then ended;
• the statement of cash flows for the year then ended; and
• the notes to the financial statements, which include a summary of significant accounting policies.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs).Our responsibilities under those
standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide basis for our opinion.
Independence
We are independent of the College in accordance with the International Code of Ethics for Professional Accountants
(including International Independence Standards) (IESBA Code) issued by the International Ethics Standards Board for
Accountants and other independence requirements applicable to performing audits of financial statements in Botswana.
We have fulfilled our other ethical responsibilities in accordance with the IESBA Code and other ethical requirements
applicable to performing audits of financial statements in Botswana.
PricewaterhouseCoopers, Plot 64289, Tlokweng Road, Gaborone, P O Box 294, Gaborone, Botswana
T: (267) 370 9700, www.pwc.com/bw
Country Senior Partner: R Binedell
Partners: A S Edirisinghe, I D Molebatsi, S K Wijesena
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BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE 21/22 75
T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) Annual Report
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Impairment losses on trade receivables Audit procedures performed to assess
the impairment losses recognised on
As at 31 March 2022, the College recognised gross trade receivables included the following;
trade receivables of P26,972,299 and an allowance for
expected credit losses of P25,347,344. • We assessed the College’s provision matrix against
the requirements of IFRS 9 and found the model to
IFRS 9 - Financial Instruments requires the College to be consistent with these requirements.
assess impairment allowance on financial assets measured
at amortised cost. Trade receivables are amounts due from • We tested the mathematical accuracy of the College’s
student customers for services performed in the ordinary ECL impairment calculation, and no material
course of business. The College holds receivables with differences were noted.
the objective to collect the contractual cash flows and
therefore measures them subsequently at amortised cost • On a sample basis, we tested the accuracy of the
using the effective interest method, less provision for debtors ageing report used by management to
impairment. identify the trade receivables at risk of defaulting by
agreeing the information, to the underlying invoices
The College applies the simplified approach to providing to determine the days past due. We found the ageing
for the expected credit losses prescribed by IFRS 9, of the report to be accurate.
which permits the use of the lifetime expected loss
provision for all short term receivables. The ECL model • We assessed the appropriateness of the customer
takes into account the College’s historical credit loss groupings based on the shared credit risk
experience. To measure the expected credit losses, short characteristics utilised in the provision matrix based
term receivables have been grouped based on shared on our understanding of the nature and related risk
credit risk (characteristics per customer grouping and profiles of the College’s customers. Based on our
past due days. assessment, we accepted the College’s customers
grouping; and
We have considered the impairment losses on trade
receivables to be a matter of most significance in our • We assessed the appropriateness of the historical
current year audit due to the following: credit loss experience applied in the ECL model
through our knowledge of the operations and
• significant judgment applied by the directors in the historical customers defaults. We found the ECL
determination of ECL; and default rates to be appropriate.
• the magnitude of the ECL, and the impact on the
financial statements.
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76 21/22 BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE
Annual Report T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee)
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Disclosers with respect to the application of
IFRS 9 in determining the ECLs are disclosed in:
• Note 2 - Summary of significant accounting policies
• Note 3 - Financial risk management
• Note 4 - Critical accounting estimates and assumptions
• Note 14 - Trade and other receivables.
Other information
The directors are responsible for the other information. The other information comprises the information included in the
document titled “Botswana University College of Business Science T /A Botswana Accountancy College Annual Financial
Statements for the year ended 31 March 2022”. which we obtained prior to the date of this auditor’s report, and the other
sections of the document titled “Botswana Accountancy College Annual Report 2021/2022”, which is expected to be made
available to us after that date. The other information does not include the financial statements and our auditor’s report
thereon.
Our opinion on the financial statements does not cover the other information and we do not express an audit opinion or any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above
and, in doing so, consider whether the other information is materially inconsistent with the financial statement, or our
knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing lo report in this regard.
Responsibilities of directors for the financial statement
Directors are responsible for the preparation of the financial statcments that give a true and fair view in accordance with
lnternational Financial Reporting Standards and for such internal control as directors determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, directors are responsible for assessing College’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the College or to cease operations, or have no realistic alternative but to do so.
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T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) Annual Report
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the College’s internal
control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
• Conclude on the appropriateness of directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the College’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the College to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
PricewaterhouseCoopers 29 September 2022
Firm of Certified Auditors Gaborone
Practising member: Kosala Wijesena (CAP 0025 2022)
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78 21/22 BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE
Annual Report T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee)
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
Notes 2022 2021
P P
Revenue 5 190,180,761 176,570,191
32,375,684 31,390,996
Other operating income 6
222,556,445 207,961,187
Administrative expenses 7 (240,510,407) (231,501,554 )
Net impairment on trade receivable 3.1 (5,040,950 ) (3,321,709 )
Operating loss (22,994,912 ) (26,862,076 )
Finance income 8 111,670 102,000
Finance costs 8 (1,277,385 ) (1,715,978 )
Loss for the year (24,160,627 ) (28,476,054 )
Other comprehensive income
Gain on revaluation of properties - 17,034,776
(24,160,627 ) (11,441,279 )
Total comprehensive loss for the year
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T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) Annual Report
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
Notes 2022 2021
P P
ASSETS
Non-current assets
Property, plant and equipment 10 119,017,113 128,915,060
716,028 233,235
Intangible assets 11
13,588,799 9,311,931
Right of use asset 12.1 7,090,100 100
Investment in Joint Venture 13 140,412,040 138,460,326
Current assets
Trade and other receivables 14 58,136,440 107,639,652
19,809,593 14,654,125
Contract assets 15 1,930,691
2,018,470 3,293,364
Short term investments 16.1 20,975,389
100,939,892 127,517,832
Cash and cash equivalents 16
Total assets 241,351,932 265,978,158
EQUITY 49,632,952 50,734,143
Revaluation reserve 24,483,698 47,543,133
Accumulated surplus
Student reserve 488,572 488,572
74,605,222 98,765,848
LIABILITIES
Non-current liabilities
Government grants 17 41,293,921 42,162,393
22,121,960 2,022,375
Borrowings 18 -
5,636,697
Lease liability 12.2 69,052,578 44,184,768
Current liabilities
Trade and other payables 19 48,272,217 51,210,250
38,912,821 35,483,030
Contract liabilities 20
2,878,040 951,706
Borrowings 18 - 24,783,187
10,599,369
Bank overdraft 18 7,631,054 123,027,542
97,694,132 167,212,311
Lease liability 12.2 166,746,710 265,978,158
241,351,932
Total liabilities
Total equity and liabilities
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Annual Report T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee)
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
Student Revaluation Accumulated Total
equity
reserve reserve surplus
P
Balance at 01 April 2020 P P P
Comprehensive income for the year
Loss for the year 488,572 34,800,558 74,917,996 110,207,126
- - (28,476,054) (28,476,054 )
Transactions recorded directly in equity
Revaluation surplus - 17,034,776 - 17,034,776
Transfer of excess depreciation on revalued assets - (1,101,191)
Balance at 31 March 2021 488,572 50,734,143 1,101,191 -
Balance at 01 April 2021 47,543,133 98,765,848
Comprehensive income for the year 488,572 50,734,143 47,543,133 98,765,848
Loss for the year
Transactions recorded directly in equity - - (24,160,627) (24,160,627 )
Transfer of excess depreciation on revalued assets
Balance at 31 March 2022 - (1,101,191) 1,101,191 -
488,572 49,632,952 24,483,698 74,605,222
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T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) Annual Report
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
Notes 2022 2021
P P
Cash flows from operating activities
Cash generated from operations 21 43,227,014 (30,128,219 )
43,227,014 (30,128,219)
Net cash generated from/(used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment 10 (7,438,670 ) (7,465,527 )
(87,779 ) (1,930,691 )
Movement in short-term investments
(563,007 ) (108,068 )
Purchase of intangible assets 11 111,670 102,000
(7,977,786 ) (9,402,286 )
Interest received 8
Net cash used in investing activities
Cash flows from financing activities
Re-payment of borrowings 18 (2,974,081 ) (861,443 )
-
Borrowings acquired during the year 18 25,000,000
(192,328 )
Interest paid - mortgage loans 8 (610,163 ) (537,911 )
(10,819,693 )
Overdraft interest expense 8 (306,455 ) (12,411,375 )
Payment towards Lease liability 12 (13,893,317 )
Net cash generated from / (used in) financing activities 7,215,984
Net increase/(decrease) in cash and cash equivalents 42,465,212 (51,941,880 )
Cash and cash equivalents at beginning of year (21,489,823 ) 30,452,057
Cash and cash equivalents at end of year 16 20,975,389 (21,489,823 )
Cash and cash equivalents comprise of the following for the purpose of cash flow: 20,975,389 3,293,364
Cash and cash equivalents - (24,783,187)
Bank overdraft (21,489,823)
20,975,389
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ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
1 General Information
Botswana University College of Business Science t/a Botswana Accountancy College (“The College”) engages in a
business of providing tuition in a range of internationally recognised business programs. The College is a company
limited by a guarantee and incorporated and domiciled in Botswana. The address of its registered office is Botswana
Accountancy College, Plot 64518, Fairgrounds, Gaborone, Botswana and the principal place of business is Plot
50661, Fairgrounds, Gaborone, Botswana. The College has since changed its name from Botswana Accountancy
College to Botswana University College of Business Science during the financial year ended March 2021.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.
2.1 Basis of preparation
The financial statements of the College have been prepared in accordance with International Financial Reporting
Standards (“IFRS”). The financial statements have been prepared under the historical cost convention, except for
property, plant and equipment measured using the revaluation model, which are carried at fair value.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgment in the process of applying the College’s accounting
policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates
are significant to the College’s financial statements are disclosed in the “Critical accounting estimates and
assumptions” section of the financial statements.
Estimates and judgements are continually evaluated based on historical experience and factors, including
expectations of future events that are believed to be reasonable under the circumstances.
2.1.1 Changes in accounting policies
(a) New standards or amendments adopted for the first time
(a)(i) IFRS 16, ‘Leases’ COVID-19-Related Rent Concessions Amendment
The IASB has provided lessees (but not lessors) with relief in the form of an optional exemption from assessing
whether a rent concession related to COVID-19 is a lease modification, provided that the concession meets certain
conditions.
Lessees can elect to account for qualifying rent concessions in the same way as they would if they were not lease
modifications. In many cases, this will result in accounting for the concession as a variable lease payment.
This amendment has been effective for annual period beginning on or after 1 April 2021 and no impact in the
current year financials.
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ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
New standards or amendments not yet adopted (Continued)
(b)(i) Amendment to IAS 1 ‘Presentation of Financial Statements’ on Classification of Liabilities as Current or Non-current
The amendment clarifies those liabilities are classified as either current or non-current, depending on the rights that
exist at the end of the reporting period. Classification is unaffected by expectations of the entity or events after the
reporting date (for example, the receipt of a waiver or a breach of covenant).
This amendment has been effective for annual period beginning on or after 1 January 2022 and no impact is
expected in the current year financials.
(b)(ii) Amendments to IAS 16 ‘Property, Plant and Equipment’ on Proceeds before Intended Use
The amendment to IAS 16 prohibits an entity from deducting from the cost of an item of PPE any proceeds received
from selling items produced while the entity is preparing the asset for its intended use (for example, the proceeds
from selling samples produced when testing a machine to see if it is functioning properly). The proceeds from
selling such items, together with the costs of producing them, are recognised in profit or loss.
This amendment has been effective for annual period beginning on or after 1 January 2022 and no impact is
expected in the current year financials.
(b)(iii) Amendments to IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ on Onerous Contracts—Cost of
Fulfilling a Contract
The amendment clarifies which costs an entity includes in assessing whether a contract will be loss-making. This
assessment is made by considering unavoidable costs, which are the lower of the net cost of exiting the contract
and the costs to fulfil the contract. The amendment clarifies the meaning of ‘costs to fulfil a contract’. Under the
amendment, costs to fulfil a contract include incremental costs and the allocation of other costs that relate directly
to fulfilling the contract.
This amendment has been effective for annual period beginning on or after 1 January 2022 and no impact is
expected in the current year financials.
2.2 Property, plant and equipment
Land and buildings comprise mainly class rooms, library, offices and hostels. Except for land and buildings, all
property, plant and equipment are stated at cost, less accumulated depreciation and/or accumulated impairment
losses, if any. Such cost includes expenditure that is directly attributable to bringing the items to the location and
condition necessary for them to be capable of operating in the manner intended by management.
Subsequent costs are included in the asset’s carrying amount, only when it is probable that future economic benefits
associated with the item will flow to the College and the cost of the item can be measured reliably. The carrying
amount of the replaced part is de-recognised.
All other repairs and maintenance are charged to surplus or deficit during the financial period in which they are
incurred.
Land and buildings are measured at fair value less accumulated depreciation and impairment losses if any recognised
after the date of revaluation. Valuations are performed with sufficient frequency to ensure that the carrying amount
of a revalued asset does not differ materially from its fair value.
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ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.2 Property, plant and equipment (Continued)
A revaluation surplus is recorded in other comprehensive income and credited to the revaluation reserve in equity.
However, to the extent that it reverses a revaluation deficit of the same asset previously recognised in income
statement, the increase is recognised in the income statement. A revaluation deficit is recognised in the statement
of comprehensive income, except to the extent that it off-sets an existing surplus on the same asset recognised in
the asset revaluation reserve.
An annual transfer from the asset revaluation reserve to retained earnings is made for the difference between
depreciation based on the revalued carrying amount of the asset and depreciation based on the asset’s original
cost. Additionally, accumulated depreciation as at the revaluation date is eliminated against the gross carrying
amount of the asset and the net amount is restated to the revalued amount of the asset. Upon disposal, any
revaluation surplus relating to the particular asset being sold is transferred to retained earnings.
Depreciation is charged to the statement of comprehensive income on a straight line basis over the estimated
useful lives of items plant and equipment. The rates used are as follows:
- Leasehold land and buildings Lesser of the useful life or the remaining lease period
- Building improvements 6-10 years
- Office, clinic, catering equipment
and furniture 4 - 10 years
- Computer equipment 3 years
- Motor vehicles 4 years
- Educational material (library
books) 2 years
The assets’ residual values and useful lives are reviewed, and adjusted prospectively if appropriate, at each reporting
date.
An item of property, plant and equipment is de-recognised upon disposal or when no future economic benefits are
expected from its use or disposal.
Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is recognised within ‘Other operating income in the statement of
comprehensive income.
Properties in the course of construction for rental, administrative purposes or for purposes not yet determined
are carried at cost less any identified impairment loss and classified as work-in-progress. Properties which are held
for administrative purposes which are ready for use or a completion certificate has been issued; such properties
are transferred to property, plant and equipment. Where properties under construction for rental are complete
such properties are included in investment property. Depreciation is not charged when properties are still under
construction.
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ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.3 Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses.
Costs associated with maintaining computer software programmes are recognised as an expense as incurred.
Costs that are directly associated with identifiable and unique software products controlled by the College that will
probably generate economic benefits exceeding costs beyond one year are recognised as intangible assets. Direct
costs include staff costs of the software development team and an appropriate portion of relevant overheads.
Expenditure which enhances or extends the performance of computer software programmes beyond their original
specifications is recognised as a capital improvement and added to the original cost of the software.
Intangible assets are amortised over the useful economic life using the straight-line method, and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period
and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each
reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic
benefits embodied in the asset are accounted for by changing the amortisation period or method, as appropriate,
and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives
is recognised in surplus or deficit in the expense category consistent with the function of the intangible assets. The
estimated useful life used for arriving at amortisation rate is:
- Software 4 years
2.4 Impairment of non-financial assets
Assets that have an indefinite useful life, for example freehold land, are not subject to amortisation and are tested
annually for impairment. Property, plant and equipment and other non-current assets are assessed annually for
indications of impairment. If any indication exists, the College estimates the asset’s recoverable amount.
An asset’s recoverable amount is the higher of an asset’s net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. In determining fair value
less costs to sell, recent market transactions are taken into account, if available.
If no such transactions can be identified, an appropriate valuation model is used. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows.
Impairment losses are recognised in surplus or deficit in expense categories consistent with the function of the
impaired asset. An assessment is made at each reporting date whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the College
estimates the asset’s recoverable amount. A previously recognised impairment loss is reversed only if there has
been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss
was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable
amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment
loss been recognised for the asset in prior years. Such reversal is recognised in surplus or deficit.
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ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.5 Foreign currencies
(a) Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment
in which the College operates (“the functional currency”). The financial statements are presented in Botswana Pula
which is the College’s functional and presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the
Statement of Comprehensive Income (SOCI).
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the
statement of comprehensive income within ‘finance income or cost’. All other foreign exchange gains and losses
are presented in the statement of comprehensive income within ‘other operating income’.
2.6 Trade receivables
Trade receivables are amounts due from student customers for services performed in the ordinary course of business.
They are generally due for settlement within 30 days and therefore are all classified as current. Trade receivables
are recognised initially at the amount of consideration that is unconditional unless they contain significant financing
components, when they are recognised at fair value. The College holds receivables with the objective to collect the
contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest
method, less provision for impairment.
Details about the College’s impairment policies and the calculation of the loss allowance are provided in note 3.1.
2.7 Contract assets
An entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer
when that right is conditioned on something other than the passage of time (for example, the entity’s future
performance). The College bought student laptops in order to facilitate virtual leaning and to continue its mandate
of offering tuition to its customers.
The cost of these laptops is amortised over the period of the respective course.
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ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.8 Cash and cash equivalents
Cash and cash equivalents are carried in the statement of financial position at cost which approximates fair value.
For the purposes of the statement of cash flows, cash and cash equivalents comprise cash in hand, deposits held at
call with banks, and other short-term highly liquid investments with original maturities of three months or less and
bank overdrafts. Bank overdrafts are shown in current liabilities on the statement of financial position.
2.9 Provisions
Provisions are recognised when the College has a present legal or constructive obligation as a result of past events
when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of
the amount can be made. Employee entitlements to annual leave and contractual gratuities are recognised when
they accrue to employees as a result of services rendered by employees up to the reporting date.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an
outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation
using a rate that reflects the current market assessments of the time value of money and the risks specific to the
obligation. The increase in the provision due to passage of time is recognised as interest expense.
2.10 Contract liabilities
Student tuition fees and hostel rents are recognised in the SOCI on the basis of the proportion of elapsed tuition
time to total course duration at the end of the year. The fees and rents relating to the unexpired tuition time are
classified as deferred revenue in the statement of financial position.
2.11 Employee benefits
Permanent employees are entitled to membership of a personal pensions plan, which is administered by an
insurance company and both the College and the employee contributes the agreed percentage of the basic salary.
This pension plan is a defined contribution plan. Contract employees are given an option to choose whether the
payment of gratuity be monthly or end of contract. Employee entitlements to annual leave are recognised when
they accrue to the employee and an accrual is recognised for the estimated liability as a result of services rendered
by the employee up to the reporting date. These accruals are measured at undiscounted current wage and salary
rates.
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ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.12 Leases
Finance leases
All leases are accounted for by recognising a right-of-use asset and a lease liability except for:
Leases of low value assets; and
Leases with a duration of twelve months or less.
Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease
term, with the discount rate determined by reference to the rate inherent in the lease unless (as is typically the case)
this is not readily determinable, in which case the College’s incremental borrowing rate on commencement of the
lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on
an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain
unchanged throughout the lease term.
Other variable lease payments are expensed in the period to which they relate.
On initial recognition, the carrying value of the lease liability also includes:
• Amounts expected to be payable under any residual value guarantee;
• The exercise price of any purchase option granted in favour of the College if it is reasonably certain to assess
that option;
• Any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of
termination option being exercised.
Right-of-use assets are initially measured at the amount of the lease liability, reduced for any lease incentives
received, and increased for:
• Lease payments made at or before commencement of the lease;
• Initial direct costs incurred; and
• The amount of any provision recognised where the College is contractually required to dismantle, remove or
restore the leased asset (typically leasehold dilapidations)
Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the
balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line
basis over the remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged
to be shorter than the lease term.
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FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
When the College revises its estimate of the term of any lease (because, for example, it re-assesses the probability
of a lessee extension or termination option being exercised), it adjusts the carrying amount of the lease liability to
reflect the payments to make over the revised term, which are discounted at the same discount rate that applied
on lease commencement. The carrying value of lease liabilities is similarly revised when the variable element of
future lease payments dependent on a rate or index is revised. In both cases an equivalent adjustment is made to
the carrying value of the right-of-use asset, with the revised carrying amount being amortised over the remaining
(revised) lease term.
Operating Leases
A lessee may elect not to apply requirements in IFRS 16 to:
• Short term leases
• Leases in which the underlying asset is low value
The College has lease expenses disclosed as operating lease as the underlying value of the asset is low.
2.13 Financial assets and liabilities
(a) Measurement methods
Amortised cost and effective interest rate
Amortized cost is an accounting method which requires financial assets classified under this method to be reported
on balance sheet at their amortized cost which equals their initial acquisition amount less principal repayment plus/
minus amortization of discount/premium (if any) plus/minus foreign exchange differences (if any) less impairment
losses (if any).
The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through
the expected life of the financial asset or financial liability to the gross carrying amount of a financial asset (i.e. its
amortised cost before any impairment allowance) or to the amortised cost of a financial liability. The calculation
does not consider expected credit losses and includes transaction costs, premiums or discounts and fees and points
paid or received that are integral to the effective interest rate, such as origination fees.
When the College revises the estimates of future cash flows, the carrying amount of the respective financial assets
or financial liability is adjusted to reflect the new estimate discounted using the original effective interest rate. Any
changes are recognised in profit or loss.
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FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Interest income
Interest income is calculated by applying the effective interest rate to the gross carrying amount of financial assets
and recognised on an accrual basis.
(b) Initial recognition and measurement
Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions
of the instrument. At initial recognition, the College measures a financial asset or financial liability at its fair value
plus or minus , transaction costs that are incremental and directly attributable to the acquisition or issue of the
financial asset or financial liability, such as fees and commissions. Transaction costs of financial assets and financial
liabilities are carried at fair value and expensed through the profit or loss. Immediately after initial recognition, an
expected credit loss allowance (“ECL”) is recognised for financial assets measured at amortised cost which results
in an accounting loss being recognised in profit or loss when an asset is newly originated.
When the fair value of financial assets and liabilities differs from the transaction price on initial recognition, the
College recognises the difference as follows:
(a) When the fair value is evidenced by a quoted price in an active market for an identical asset or liability (i.e. a
Level 1 input) or based on a valuation technique that uses only data from observable markets, the difference
is recognised as a gain or loss.
(b) In all other cases, the difference is deferred, and the timing of recognition of deferred day one profit or loss
is determined individually. It is either amortised over the life of the instrument, deferred until the instrument’s
fair value can be determined using market observable inputs, or realised through settlement.
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FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.13 Financial assets and liabilities (Continued)
(b) Initial recognition and measurement (Continued)
Financial assets
i. Classification and subsequent measurement
From 1 April 2018, the College has applied IFRS 9 and classifies its financial assets as amortised cost.
The classification requirements for debt measured at amortised cost are described below:
Based on these factors, the College classifies its debt instruments at amortised cost having considered the following:
Amortised cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments
of principal and interest (“SPPI”), and that are not designated at Fair Value through Profit or Loss (“FVPL”), are
measured at amortised cost. The carrying amount of these assets is adjusted by any expected credit loss allowance
recognised and measured using the simplified expected loss model. Interest income from these financial assets is
included in ‘Interest and similar income’ using the effective interest rate method.
Business model
The business model reflects how the College manages the assets in order to generate cash flows. That is, whether
the Company’s objective is solely to collect the contractual cash flows from the assets or is to collect both the
contractual cash flows and cash flows arising from the sale of assets. If neither of these is applicable (e.g. financial
assets are held for trading purposes), then the financial assets are classified as part of ‘other’ business model and
measured at FVPL. Factors considered by the College in determining the business model for a group of assets
include past experience on how the cash flows for these assets were collected, how the asset’s performance is
evaluated and reported to key management personnel, how risks are assessed and managed and how managers
are compensated. For example, the liquidity portfolio of assets, which is held by the College as part of liquidity
management, is generally classified within the hold to collect and sell business model. Securities held for trading
are held principally for the purpose of selling in the near term or are part of a portfolio of financial instruments that
are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking. These
securities are classified in the ‘other’ business model and measured at FVPL.
Celebrating 25 Years of Transforming Lives.
92 21/22 BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE
Annual Report T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee)
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.13 Financial assets and liabilities (Continued)
(b) Initial recognition and measurement (Continued)
Financial assets (Continued)
i. Classification and subsequent measurement (Continued)
Solely payments of principal and interest (“SPPI”)
Where the business model is to hold assets to collect contractual cash flows or to collect contractual cash flows and
sell, the College assesses whether the financial instruments’ cash flows represent solely payments of principal and
interest (the ‘SPPI test’). In making this assessment, the College considers whether the contractual cash flows are
consistent with a basic lending arrangement i.e. interest includes only consideration for the time value of money,
credit risk, other basic lending risks and a profit margin that is consistent with a basic lending arrangement. Where
the contractual terms introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement,
the related financial asset is classified and measured at fair value through profit or loss.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid investments
readily convertible to cash and subject to insignificant risk of loss of value. Cash and cash equivalent are measured
at amortised cost.
ii. Impairment of financial assets
The College recognises a loss allowance for Expected Credit Loss (ECL) on trade and other receivables. The amount
of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition
of the respective financial instrument.
The College always recognises lifetime ECL for trade and other receivables. The expected credit losses on these
financial assets are estimated using the simplified ECL model based on the provision matrix. The ECL model takes
into account the College’s historical credit loss experience. Lifetime ECL represents the expected credit losses that
will result from all possible default events over the expected life of a financial instrument except for forward looking
information. Given the short-term nature of trade and other receivables, we do not except the micro-economic
factors which are deemed to be medium to long term in nature to significantly impact the impairment model.
iii. Derecognition of financial assets
The College derecognises a financial asset only when the contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another
entity. If the College neither transfers nor retains substantially all the risks and rewards of ownership and continues
to control the transferred asset, the College recognises its retained interest in the asset and an associated liability
for amounts it may have to pay.
On derecognition a financial asset is measured at amortised cost, which is the difference between the asset’s
carrying amount and the sum of the consideration received.
Celebrating 25 Years of Transforming Lives.
BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE 21/22 93
T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) Annual Report
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.13 Financial assets and liabilities (Continued)
(b) Initial recognition and measurement (Continued)
Financial liabilities
i. Classification and subsequent measurement
All financial liabilities are measured subsequently at amortised cost using the effective interest method. The
effective interest method is a method of calculating the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated
future cash payments (including all fees and points paid or received that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability,
or (where appropriate) a shorter period, to the amortised cost of a financial liability.
Debt instruments
Debt instruments are those instruments that meet the definition of a financial liability from the issuer’s perspective,
such as loans, government and corporate bonds and trade receivables purchased from clients in factoring
arrangements without recourse.
Classification and subsequent measurement of debt instruments depend on:
(i) the entity’s business model for managing the asset; and
(ii) the cash flow characteristics of the asset.
ii. Derecognition of financial liabilities
The College derecognises financial liabilities when, and only when, the College’s obligations are discharged,
cancelled or have expired. The difference between the carrying amount of the financial liability derecognised and
the consideration paid and payable is recognised in profit or loss.
2.14 Related party transactions
Related parties comprise the Government of Botswana, Debswana Diamond Company (Proprietary) Limited and
Botswana Institute of Chartered Accountants who have common control, directors and key management.
2.15 Trade payables
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of
business from suppliers. Accounts payables are classified as current liabilities, if payment is due within one year or
less at the reporting date. If not, they are presented as non-current liabilities. Trade payables are recognised initially
at fair value and subsequently measured at amortised cost using the effective interest method.
Celebrating 25 Years of Transforming Lives.
94 21/22 BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE
Annual Report T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee)
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.16 Government grants
Grants from the Government are recognised at their fair values where there is reasonable assurance that the grant
will be received. Government subvention and other revenue grants received are recognised in the statement of
comprehensive income under other operating income when it is committed by Government. A Government grant
utilised towards capital expenditure or capital grant is credited to the grant account as deferred income and equal
amounts are amortised and credited to the SOCI on a straight-line basis over the estimated useful lives of the
related assets.
2.17 Revenue recognition
The College recognises revenue to depict the transfer of promised goods or services to the customer. Sales
contracts are evaluated to determine the performance obligation, transaction price and the point at which there
is transfer of control. The amount recognised reflects the amount to which the College expects to be entitled in
exchange for those good and services. The College offers educational tuition services for under and post graduate
courses. The courses are short-term and long-term and are offered on a semester basis which straddles the financial
year, therefore resulting in contract liabilities (deferred revenue). Transactional price is the amount of consideration
due in exchange for transferring the good or services to the customer, and is allocated against the performance
obligation and recognised over the course period.
The revenue is recognised when control has been transferred. This is at a point where tuition services have been
provided for a particular course in each semester.
2.18 Expense recognition
The College incurs the following costs in providing tuition to the students:
(a) Course materials / books such as work books and examination kits and other tuition materials,
(b) Franchise fees paid for programmes offered jointly with partner universities.
(c) Student laptops to facilitate online learning
(d) Internet connection to facilitate online learning
These costs are expensed as they are incurred, through “other administrative expenses” in the statement of
comprehensive income. Where costs are paid up-front, and relate to future periods, such costs are classified as pre-
payments and contract assets in the statement of financial position at reporting date and released to the statement
of comprehensive income over the period to which they relate.
2.19 Income tax
The College is exempt from income tax under the Second Schedule; Part 1 of the Income Tax Act (Cap. 52:01).
2.20 Student refund reserve
The College is regulated by the Botswana Qualifications Authority. The Regulatory body issued out a guideline
aimed at providing a cushion against enrolled learner claims for tuition and exam fee refunds. Based on the historical
rate of refund, management considered 0.25% of annual tuition fee revenue to be a reasonable basis for reserving
in the fund. On that basis, the reserve will be reassessed annually to make sure that it does not exceed 0.25% of
the tuition fee revenue for the period. If the current balance is adequate, any excess provision from the prior period
will be released back to the retained surplus.
Celebrating 25 Years of Transforming Lives.
BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE 21/22 95
T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) Annual Report
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
3 FINANCIAL RISK MANAGEMENT
3.1 Financial risk factors
The College’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest
rate risk, cash and price risk), credit risk and liquidity risk. The College’s overall risk management programme focuses
on the unpredictability of financial markets and seeks to minimise potential adverse effects on the College’s financial
performance. Risk management is carried out under policies approved by the Board. The Board provides written
principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange
risk, interest rate risk, credit risk, use of derivative financial instruments, non-derivative financial instruments, and
investment of excess liquidity.
a) Market risk
i) Foreign currency risk
The College is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to
Great Britain Pound (GBP), South African Rands (ZAR) and United States Dollars (USD). Foreign exchange risk arises
from future commercial transactions and recognised assets and liabilities that are denominated in a currency that is
not the College’s functional currency. Management has set up a policy to require the College to manage its foreign
exchange risk against the functional currency. To manage foreign exchange risk arising from those transactions,
the College ensures that it keeps adequate funds in foreign currency in its bank accounts. Foreign exchange risk
arises when commercial transactions or recognised assets or liabilities are denominated in a currency that is not the
entity’s functional currency.
At 31 March 2022, if the Pula currency had strengthened/weakened by 10% against Great Britain Pound with all
other variables held constant, payables for the year would have been P12,185 (2021: P483,919) lower/higher,
mainly as a result of foreign exchange losses/gains on translation of Great Britain Pounds denominated payables
and cash equivalents.
At 31 March 2022, if the Pula currency had strengthened/weakened by 10% against the South African Rands with all
other variables held constant, payables for the year would have been P74,460 (2021: P83,859) lower/higher, mainly
as a result of foreign exchange losses/gains on translation of South African Rands denominated payables and cash
equivalents.
At 31 March 2022, if the Pula currency had strengthened/weakened by 10% against the US Dollar with all other
variables held constant, payables for the year would have been P329 (2021: P21,230) lower/higher, mainly as a
result of foreign exchange losses/gains on translation of US Dollar denominated payables and cash equivalents.
At 31 March 2022 and 2021 the College’s financial assets and liabilities denominated in foreign currencies were:
2022 2021
P P
Payables
US Dollar 3,294 212,298
Great Britain Pounds 121,854 4,839,193
South African Rands 744,599 838,592
Celebrating 25 Years of Transforming Lives.
96 21/22 BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE
Annual Report T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee)
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
3 FINANCIAL RISK MANAGEMENT (CONTINUED)
The exchange rates used for the current year US Dollar 0.09669 (2021: 0.09922) South African Rands 1.39414
(2021: 1.47928) Great Britain Pounds 0.7359 (2021: 0.07216)
2022 2021
P P
Cash equivalents 12,739 12,565
Great Britain Pounds
3.1 Financial risk factors (continued)
a) Market risk (continued)
ii) Price Risk
The College is not exposed to price risk as it does not have any financial instruments that will fluctuate due to
changes in market prices.
iii) Cash flow and interest rate risk
Fluctuations in interest rates impact on the value of short-term cash investments and financing activities, giving rise
to interest rate risk. Surplus funds are invested in a manner to achieve maximum returns while minimising risk. An
increase of 1% in the interest rate in short-term cash deposits would increase interest income by P229,939 (2021:
P52,240).
(b) Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss
to the College. As at 31 March 2022, the College’s maximum exposure to credit risk which will cause a financial loss
due to failure to discharge an obligation by the counterparties arises from the carrying amount of the respective
recognised financial assets as stated in the statement of financial position.
In order to minimise credit risk, the College has adopted a policy of dealing with creditworthy counterparties as a
means of mitigating the risk of financial loss from defaults. Credit approvals and other monitoring procedures are
also in place to ensure that follow-up action is taken to recover overdue debts. Furthermore, the College reviews
the recoverable amount of each trade debt on an individual basis at the end of each month to ensure that adequate
loss allowance is made for irrecoverable amounts. In this regard, the directors consider that the College’s credit risk
is significantly reduced. The College does not hold any collateral or other credit enhancements to cover its credit
risks associated with its financial assets. Financial assets of the College, which are subject to credit risk, consist
mainly of trade and other receivable and cash resources. The College holds cash deposits with reputable financial
institutions.
The College applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which
permits the use of the lifetime expected loss provision for all short-term receivables. To measure the expected
credit losses, short-term receivables have been grouped based on shared credit risk characteristics and the days
past due. The loss allowance as at 31 March 2022 is determined as follows:
On that basis, the loss allowance as at 31 March 2022 and 31 March 2021 was determined as follows for trade
receivables:
Celebrating 25 Years of Transforming Lives.
BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE 21/22 97
T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) Annual Report
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
3.1 Financial risk factors (continued)
(b) Credit Risk (continued)
Expected Credit loss Default Rates at 31 March 2022
Customer grouping Current 1 - 30 Past 31 - 60 Past 61 - 90 Past Over 90 Total
due due due Past due
52.39%
Government 1.76% 25.85% 73.56% 94.6% 100% 95.24%
87.15%
Private students 59.15% 79.23% 89.47% 97.52% 100% 100.00%
65.75%
Private companies 50.66% 66.49% 89.12% 92.97% 100%
Staff Students 36.88% 100.00% 100.00% 100.00% 100%
Parastatals 14.69% 24.57% 97.02% 98.16% 100%
Expected Credit loss Default Rates at 31 March 2021
Customer grouping Current 1 - 30 Past 31 - 60 Past 61 - 90 Past Over 90 Total
due due due Past due
1%
Government 1.0% 1.2% 1.3% 95.9% 100% 92%
69%
Private students 29.2% 81.2% 87.6% 97.5% 100% 79%
100%
Private companies 31.3% 61.1% 66.1% 92.9% 100%
Staff Students 35.9% 47.6% 71.0% 95.6% 100%
Parastatals 38.7% 43.1% 95.9% 95.9% 100%
Exposure at Default (EAD)
At 31 March 2022 Current 1 - 30 Past 31 - 60 Past 61 - 90 Past Over 90 Total
due due due Past due
Government 158,874 352,540
Private students 1,733,587 15,894 - - 177,772 25,010,117
2,131,283 344,088 96,060 20,705,099
Private companies 159,522 185,712 162,415 40,424 708,325 1,256,397
- 6,188 - 7,334 29,650 43,171
Staff Students 92,300 34,816 40,000 - 142,958 310,074
2,144,282 2,373,892 546,503 143,818 21,763,803 26,972,299
Parastatals
Gross carrying
amounts (In Pula)
Celebrating 25 Years of Transforming Lives.
98 21/22 BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE
Annual Report T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee)
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
3 FINANCIAL RISK MANAGEMENT (CONTINUED)
(b) Credit Risk (continued)
Exposure at Default (EAD)
At 31 March 2021 Current 1 - 30 Past 31 - 60 Past 61 - 90 Past Over 90 Total
due due due Past due
Government 107,806 77,081,345
Private students 73,524,877 27,444 3,421,219 - 18,059,175 22,165,421
Private companies 521,995 1,071,839
Staff Students 2,358,846 - 1,437,318 310,082 22,232 32,732
Parastatals 165,197 165,197
Gross carrying 475,344 - - 74,500 18,876,404 100,516,534
amounts (In Pula)
10,500 - - -
-- - -
76,369,567 27,444 4,858,536 384,582
Expect Credit Loss(ECL)
At 31 March 2022 Current 1 - 30 Past 31 - 60 Past 61 - 90 Past Over 90 Total
due due due Past due
Government 2,803 177,772 184,684
Private students 1,025,457 4,109 - - 20,705,099 23,820,657
Private companies 80,817 708,325 1,094,949
Staff Students - 1,688,584 307,839 93,678 29,650 43,171
Parastatals 13,560 142,958 203,883
Total 1,122,636 123,486 144,738 37,583 21,763,803 25,347,343
6,188 - 7,334
8,556 38,809 -
1,830,923 491,387 138,595
Celebrating 25 Years of Transforming Lives.
BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE 21/22 99
T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee) Annual Report
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
3 FINANCIAL RISK MANAGEMENT (CONTINUED)
(b) Credit Risk (continued)
Expect Credit Loss(ECL)
At 31 March 2021 Current 1 - 30 Past 31 - 60 Past 61 - 90 Past Over 90 Total
due due due Past due
Government 701,791 854,677
Private students 689,216 317 44,764 - 107,806 20,452,047
Private companies 148,663 739,885
Staff Students - 1,259,380 302,183 18,201,267
3,767 25,999
Parastatals - - 69,227 521,995
- 165,197
Total 1,543,437 22,237,804
--- 22,232
--- 165,197
317 1,304,144 371,410 19,018,495
Celebrating 25 Years of Transforming Lives.
100 21/22 BOTSWANA UNIVERSITY COLLEGE OF BUSINESS SCIENCE
Annual Report T/A BOTSWANA ACCOUNTANCY COLLEGE (A company limited by guarantee)
ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022 CONT.
3 FINANCIAL RISK MANAGEMENT (CONTINUED)
3.1 Financial risk factors (continued)
(b) Credit Risk (continued)
Trade and other receivables are written off when there is no reasonable expectation of recovery. Indicators that
there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a re-
payment plan with the College, and a failure to make contractual payment for a period of greater than 120 days
past due.
Impairment losses on trade receivables and contract assets are presented as loss allowance within the operating
profit. Subsequent recoveries of amounts previously written off are credited against the same line item.
The closing loss allowances for trade receivables as at 31 March 2021 reconciled to the opening loss allowances as
follows:
2022 2021
P P
Opening loss allowance as at 1 April 2021 20,306,394 18,916,095
Increase in receivable loss allowance recognised during the year 5,040,950 3,321,709
Bad debt write off - (1,931,410)
Closing balance at 31 March 2022 25,347,344 20,306,394
Maximum exposure
Financial assets with the maximum exposure to credit risk at the year-end
were as follows:
Trade Receivables – Related parties 183,484 77,094,043
Trade Receivables – Others 26,788,815 23,422,491
Other Receivables 19,491,101 22,736,624
Less: Loss allowance (IFRS 9) (25,347,344 ) (20,306,394 )
Net trade and other receivables 21,116,056 102,946,764
The impairment allowance has increased by P5,040,950 as at 31 March 2022. The increase reflects a high proba-
bility of default on the basis of historical credit risk information across all customer profiles. In the short-term, we
do not expect the macro-economic factors such as the GDP to affect expected default rates and consequently all
default rates applied in the calculation of expected credit losses are based historical credit risk information
2022 2021
Cash and Cash Equivalents P P
Absa Bank of Botswana Limited 12,969,924 743,791
Stanbic Bank Botswana Limited 7,182,047 1,931,158
First National Bank Botswana Limited 823,418
Short-term Investments 618,415
African Alliance Botswana Management Company (Proprietary) Limited
2,018,470 1,930,691
Total amount exposed to credit risk
22,993,859 5,224,055
Celebrating 25 Years of Transforming Lives.
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