THE OVERSIGHTNewsletter

DECEMBER 2017 | ISSUE 1

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• Investor Protection• Proactive Monitoring• Standards and Ethics

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Enhanced International Confidence in

Financial Reporting, Audit and Corporate Governance through Exceptional Technical

Skills and Expertise.

VISION

To Protect Public Interest in Botswana through Oversight and Regulation by

Developing, Promoting and Implementing Credible Financial

Reporting.

MISSION

PrincipledWe act in an ethical, just and

honest manner at all times.

AgilityWe provide service delivery with agility,

innovation and technological approach.

Knowledge and LearningWe maintain leadership in knowledge and

understanding so as to advance quality and ethical standards in all aspects of reporting,

audit and corporate governance.

IndependenceWe promote the autonomy of the

authority and freedom of interference

in the activities of the organisation.

CORE VALUES

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CONTENTS PAGE

CEO’S REMARKS 4EDITOR’S NOTE 5AWARENESS CAMPAIGN YIELD RESULTS 6BAOA PARTICIPATES IN THE ESAAG 24TH ANNUAL CONFERENCE 7KNOW YOUR STAFF INTERVIEW- SENIOR REVIEWER 9BAOA PARTICIPATES IN THE PRESIDENT’S CHARITY CYCLE CHALLENGE 10THE AUTHORITY EXHIBITS AT THE 2017 BOTSWANA CONSUMER FAIR FOR THE FIRST TIME 12REVIEW OF THE VISIT TO THE INDEPENDENT REGULATORY BOARD OF AUDITORS 13BAOA IN PICTURES 14DIARY OF AN INTERNSHIP PARTICIPANT IN BAOA 16BAOA JOINS BOT50+1 FLOAT PROCESSION 17STAFF WELFARE 17

LIST OF PIEs REGISTERED WITH BAOA 19

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CEO’s Desk

It is my great pleasure to present to you the first issue of ‘The Oversight’, a newsletter which covers issues relating to the independent regulation of the accountancy and auditing profession. We are proud that Botswana is one of only four regulators in Africa to satisfy the requirements for membership of the global body of independent audit regulators, the International Forum of Independent Audit Regulators (IFIAR). The other three countries that qualified are Egypt, Mauritius and South Africa.

BAOA is also proud that Botswana is one of only three countries in the world that have adopted a comprehensive oversight approach which regulates all the players in the financial reporting and auditing supply chain in addition to the traditional oversight of auditors and standards setting. In addition to audit oversight, BAOA oversees:

a) Professional Accountancy Organisations (PAOs) such as BICA, ACCA, and CIMA;

b) Financial Reporting Monitoring of Public Interest Entities (PIEs) as defined in the Financial Reporting act, 2010 (the Act) and the Financial Reporting (Public Interest Entities) Regulations, 2016 (the Regulations);

c) Corporate Governance of PIEs.

The first review reports on PIEs in the area of Financial Reporting and Corporate Governance monitoring will be released at the end of the first quarter of 2018.

Although the intention of the comprehensive regulatory approach is not to eliminate corporate failures altogether, it will identify, as early as possible, entities that are under financial stress and have weak corporate governance practices so that corrective action could be taken promptly by the shareholders.

BAOA is a pioneer in comprehensive regulation with respect to the extent and scope that we have taken it as a country. We are therefore going to be the pacesetter to raise the bar to a level that other global players are to emulate. In this regard, BAOA has already received several enquiries from other countries in the Continent of Africa who are considering adopting the same regulatory approach.

Awareness campaigns are a continuing theme for the Authority and would in fact be accelerated during 2018 to reach more stakeholders including the public. Education campaigns will also be stepped up to ensure the necessary buy-in by the stakeholders.

Finally, I would like to take this opportunity to thank our stakeholders for their support during these early years of the Authority’s existence. The auditors and BICA, in particular, have been very supportive in implementing the Act and the Regulations. Our gratitude also goes to the Government of Botswana through the Ministry of Finance and Economic Development for providing the necessary financial support during a period of declining Government revenues.

Duncan D. MajindaChief Executive Officer

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Everything has a beginning! 2017 is a great year of growth and change for the Botswana Accountancy Oversight Authority. The Authority is pleased to introduce the first issue of its new annual newsletter publication, “The Oversight”.

Being an editor on a first issue is remarkable. I admit I had to go through challenges trying to convert perspectives around the accounting and auditing issues to soft news for the reader’s understanding. This then prepares you to come to terms with words such as quality control, public interest, compliance, monitoring, just to name a few !

The Authority does not operate in isolation as it protects public interest, hence such a publication will assist in sharing different news, activities, events, developments and achievements with its stakeholders, in addition to publicising and promoting the Authority’s mandate. Moreover the Newsletter will be a useful tool in archiving memories of the Authority.

We have hope that you will find great value in the contents of this newsletter and that it will aid you in your endeavors. Some of the exciting news in this publication is the participation of the Authority in the 2017 Consumer Fair for the first time, participating in the President’s Charity Cycle Challenge and attendance of capacity development programmes by the Technical Staff. You will also find an interesting article on the ongoing awareness campaign that will also reveal statutory and regulatory measures for Public Interest Entities(PIEs) as indicated in the 2010 Financial Reporting Act. PIEs please pay attention!

Let me take this opportunity to thank all contributors, Management and Staff for their support in making this a success. We end a year on a high note having published a new product “The Oversight” Newsletter. As BAOA staff we work as a team and therefore any achievement is a result of a team effort.

We want this newsletter to be valuable to you so please share your feedback and suggestions to help us improve on the next editions.

Wishing you a Prosperous New Year!

Ndulamo NtopoPublic Relations Officer

Editor’s Note

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Awareness Campaign Yield Results

The Botswana Accountancy Oversight Authority (the Authority) is a relatively new organisation, established by the Financial Reporting Act, 2010. The principal objective of the Authority is to provide oversight to the accounting and auditing services and promote the standard, quality and credibility of providing financial and non-financial information by entities. Its functions include standard setting, financial reporting monitoring, audit practice reviews, enforcement of compliance and oversight over the education and training of professional accountants in Botswana.

During the early years of the existence of the Authority, it concentrated on outreach programs intended to introduce the Authority to the stakeholders and explaining its role and mandate as encapsulated in the Act. To facilitate the awareness campaigns, the Authority developed the Communications Policy to provide guidelines for effective and efficient communication to the various target audiences so that all will be empowered and well informed about the Authority’s activities, have the opportunity to contribute, share ideas and are guided in the manner in which communication should be handled and managed.

The Authority started Stakeholders’ awareness campaigns in 2013 and the consultations gained momentum in 2016 after the approval and laying before Parliament of the Financial Reporting (Public Interest Entities) Regulations, 2016, (the Regulations) on the 31st March 2016. An awareness team headed by the CEO conducted countrywide Stakeholder Meetings and Presentations to create awareness of the Authority’s mandate, services and expectations from customers and stakeholders. The presentations

covered the following stakeholders:●Members of Ntlo ya Dikgosi;●Ministries and their respective Parastatals;●Public Interest Entities (PIEs) listed on the Botswana Stock Exchange;●PIEs supervised by Bank of Botswana;●PIEs supervised by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) ; and●PIEs determined to be significant by the Minister in terms of Section 22 (d) of the Act;

The CEO also addressed Awareness Campaigns

across the country including, remote areas, covering Francistown, Sowa Town, Palapye, Mahalapye, Lobatse, Gaborone, Maun, Kasane, Selebi Phikwe, Molepolole, Good Hope, Kanye, Jwaneng, Tsabong and Gantsi.

These meetings did not only create awareness but also provided a platform for sharing and feedback from stakeholders which has helped the Authority to target and focus attention to appropriate issues and stakeholders needs and expectations. The campaign is expected to continue until the message is well articulated and understood by all PIEs as well as the general public. Other stakeholders to be targeted in future include the Media and Parliamentary bodies

such as the Public Accounts Committee and the Committee of Statutory Bodies and State-Owned Enterprises.

BAOA CEO, Duncan D. Majinda giving a presentation on the mandate of the Authority to Asset and Fund Managers.

Public Interest Entities continue to be sensitized on registration. Universal builders Management also got an opportunity to be sensitised.

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The 24th Annual East and Southern African Association of Accountants-General (ESAAG) Conference was held in Boksburg Johannesburg from the 27 February to 02 March 2017 under the theme “Ensuring Transparency and Accountability in Public Finance Management.” The Authority took part in the conference as it has done in the past four years and was represented by Ms Lame Obotseng, Principal Reviewer from Financial Reporting Monitoring Section of the Technical Department.

ESAAG was established as a forum and cooperative effort of Accountants General in the region to review and discuss comparative experiences and to assist member countries to improve government accounting

BAOA Participates In The 24Th ESAAG Annual Conference

systems in order to produce financial statements in accordance with international standards. ESAAG is therefore engaged in different activities to enable success in the reforms being undertaken by the member countries in the area of public financial management. ESAAG is made up of member countries from East and Southern Africa namely, Botswana, Kenya, Lesotho, Malawi, Mozambique, Namibia, Rwanda, South Africa, Swaziland, Uganda, Tanzania, Zambia and Zimbabwe.

As an independent regulator in Botswana responsible for regulating both the private sector and the public sectors, and also as the standards setter of financial reporting and auditing, BAOA

Ms Lame Obotseng, Principal reviewer (fifth from left-back row) with other delegates attending the 24th ESAAG conference in Johannesburg.

Based on the forgoing, the Authority has noticed, with delight, the significant positive impact of the awareness drive, as PIEs have come forth in large numbers to register with the Authority in accordance with the Act and the Regulations.

As at January 2018, Two Hundred and Eighty-Six (286) PIEs, certified auditors of PIEs and audit firms of PIEs had registered with the Authority and these comprised the following:● Twenty-Eight (28) certified auditors of PIEs;● Ten (10) certified audit firms of PIEs;● Twenty-Seven (27) entities listed on the Botswana

Stock Exchange excluding listed banks;● Ten (10) Banks supervised by Bank of Botswana

(BoB);● Ten (10) Bureaux de Change;● One Hundred and Six (106) Non-Bank Financial

Institutions supervised by Non-Bank Financial Institutions Regulatory Authority (NBFIRA);

● Fifty-Five (55) Parastatal organisations; and● Forty (40) Significant entities as determined

by the Minister in accordance with Section 22 (d). The registration of PIEs has enabled the Authority to commence its reviews of PIEs and certified auditors. The first cycle of the review of certified auditors was completed in December 2017 and the first batch of PIEs have been reviewed under financial reporting monitoring and corporate governance. The Authority has adopted KING III and its successor Codes as its official Code of Corporate Governance and as a benchmark against which the corporate governance practices of all PIEs in Botswana are measured.

As an oversight to the accounting and auditing profession in Botswana, the Authority ensures that the accountants and auditors meet the public’s expectations in service provision at all times through compliance with international standards and codes; which will ultimately build international confidence in financial reporting and auditing in Botswana, and consequently, foster economic growth and attract foreign direct investment.

By Ndulamo Ntopo

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sees this as an opportunity to appreciate the role public financial management as a tool to enhance prudent management of financial resources of the member states. It also views this as an opportunity to learn from the experiences of more advanced economies in this area such as South Africa and in the process, develop, strengthen and maintain its own capabilities to improve and attain its own development objectives in the foreseeable future.

The 24th Annual ESAAG forum covered different topic by various speakers and these included:1. Emerging Issues in Public Finance Management

(PFM)2. Consolidation of Government wide accounts

(CGWA)3. Public debt acquisition and reporting4. Migration from cash to accrual; A practical

approach

The breakdown of each of these topics covered is as shown below: 1. Emerging Issues in Public Finance Management

(PFM)

In its presentation, the Chartered Institute of Public Finance and Accountancy (CIPFA) explained that it offered a full guidance on Public Finance Management, which covers: ● Framework for effective PFM at country, region

and entity levels;● Holistic model which complements existing

assessment tools;● Emphasises need for improvement across the

system; and● Recognition that there are checks and balances–

key is to act together to make PFM.

CIPFA also highlighted that delivering excellent public finance management brings about many benefits, which include: ● better quality decision making;● more effective targeting of resources;● stronger accountability;● more efficient use of resources;● greater comparability; and● improved transparency.

CIPFA also explained that for a country to deliver excellent PFM reforms, it requires one to act in public interest, define sustainable outcomes, optimising interventions and building capacity. A strategic plan should be in place, stakeholders should be involved, and proper budget execution. At the end performance should be monitored. If this process is followed, high standards are achieved, and there will be more transparency. Use of resources available should be monitored.

2. Consolidation of Government wide accounts (CGWA)

2.1 Consolidated financial statements provide a

panoramic view of a government’s activities and current financial position. This panoramic view ensures that users do not lose sight of the risks associated with certain sectors, it shows the performance of the government as a whole. The benefits of consolidated accounts include:

● Ability to know how Government entities transact together;

● Increased control over all resources;● Better information for deciding priorities;● Better allocation of resources in accordance with

priorities; and● Better-informed public.

2.2 The role of CGWA in ensuring accountability and transparency includes; encouraging greater accountability through greater transparency of links between government bodies and the amalgamation of financial obligations across the various bodies into one single figure. The CGWA address public accountability issues inherently related to the unique aspects of the government environment.

3. Public debt acquisition and reporting

3.1 This covered where and how debt is acquired, how the debt exposure is managed and reporting accountability and governance. Government debt consists of local debt mainly from local lenders due to budget deficits, and external debt owed to foreign lenders from supranational organisations e.g. World Bank, IMF. Government borrows through issuing treasury bonds /bills and securities. We have seen first world countries having debt crisis, e.g. Greece had a trade deficit and increased labour costs, Italy debt to GDP is over 100% and Spain Economic depression started in 2008, could not bail out financial sector causing housing bubble.

3.2 When considering debt, one should consider the risk objectives e.g. interest, currency and liquidity, cost objectives e.g. service charges, grace period and maturity and economic leveraging e.g. fiscal and monetary policies to arrive at optimal funding.

3.3 Political and Economic stability influences:● Economic growth is not leveraged, hence slow;● Difficult to borrow from markets;● Potential for unmanaged sovereign debt leading

to crisis; and● Credit rating becomes low.

3.4 Benefits of planned debt management:● Reduce borrowing costs;● Heterogeneity of market participant; and● Enhanced mobilisation of resources.

3.5 Reporting of debt● Transparency on debt management policy

formulation, and public availability of information e.g. budgets, financing, position etc;

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● Stock and composition of debt and financial assets, including currency, maturity and interest rate structure; and

● Accountability and assurance of agency responsible for debt management (audit).

4. Migration from cash to accrual; A practical approach

4.1 IPSASs are high quality global financial reporting standards for application by public sector entities other than Government Business Enterprises (GBEs)”, they bring about the following benefits:

● Savings on own production/benefits of international experience;

● Quality and transparency of financial reporting enhanced (the Greece Example)– Comprehensive reporting of assets and liabilities and consolidated whole-of-government information;

● Financial reports more readily understood and comparable world-wide; and

● Financial reports have more credibility.

4.2 Accrual accounting for developing countriesThe rationale for accrual accounting applies also to

developing countries. However, this is a complex reform that has to be prioritized with other necessary reforms. Countries need to ensure any basic deficiencies are addressed before trying to implement accruals.

4.3 What does moving to accrual basis entail:● Objectives – Conceptual Framework;● GAP analysis - “where we are?” Vs. “where do we

wish to be?”;● Preparing a plan to implement;● Pilots and sequencing;● Implementation; and● Preparation progressively of IPSAS compliant

financial statements and disclosures.

4.4 Challenges● Lack of political (Legislature) support;● Skilled staff may be in short supply (Accounting,

FMIS/IT & Analytical);● Systems and processes may need to be changed;● Legal and regulatory changes may be necessary;● Costs of implementation; and● Implications for the budget process.

4.5 Specific issues experienced by a country implementing IPSAS:

● Public Sector is dominated by transactions that do not involve equal value exchange;

● Recognition and measurement challenges;● IPSAS on non-exchange transactions;● Classification – current & non-current; financial &

non-financial; and● Accrual accounting and cash budgeting:

4.6 A sound Implementation approach● Accrual accounting and cash budgeting;● Determine phasing of implementation that is

practical and likely to lead to success; and● Proceed with implementation.

In conclusion, it was discovered that transparency and accountability in Public Finance Management can be ensured through:● Public debt acquisition and reporting;● Consolidated government wide accounts;● Adoption of IPSAS/ migration from cash to

accruals;● Communicating the role of an accountant in

ensuring transparency and accountability; and● Managing and understanding the people

involved in the PFM.

The Authority shall continue to benchmark and participate in global forums like ESAAG, International Forum of Independent Audit Regulators (IFIAR) amongst others to improve its own developmental initiatives at the same time keeping abreast with latest developments in the Accounting profession, international standards, codes and principles.

By Lame Obotseng

Know Your Staff A question and an answer with Principal Reviewer Lesego Pheto

1. What gets you out of bed in the morning?

The desire to make a difference in accounting profession and seeing myself develop from the interactions with other professionals out there.

2. How would you describe your day job to a layman?

I review corporate governance principal of those entities deemed to be of public interest given their size which has been determined by the rules and regulations governing the Authority. My role is to ensure that best corporate governance practices are followed by those entities and in the end public interest is protected.

3. What is your biggest professional achievement to date ?

My biggest achievement to date is to being part of a team that is working towards promoting best practices of the accounting profession in Botswana.

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4. What three words would you use to describe your role in BAOA?

Accountant, Reviewer and Public Interest Advocate.

5. What is on your wish list for your next five years in the Authority?

I wish to see the Corporate Governance section well established and being able to carry out its role fully in order to help the Authority to achieve its mandate.

6. If you could change one thing about working for BAOA, what would it be?

For the Authority to have come into operation earlier than 2013.

7. What do you like most about your job?Every job has challenges that come up with each engagement. Similarly, each engagement is unique and I always aim to develop myself and learn something new one way or the other at the end of every assignment.8. What advice would you give to other accountants

and auditors out there?A word of encouragement to my fellow practitioners is, let’s always exercise professional scepticism in our role as accountants and always be guided by the recommended ethical standards in our daily activities.

9. What’s your most memorable face palm moment in BAOA?

Wow, the inception of BAOA when it all started literally from nothing. It was just a building and a few members of staff who had been recruited. The fear and the doubts I experienced in the beginning on whether this new organisation will stand the test of time and the industry.

10. What is your motto or personal mantra? Be my own competitor, aim to be the best of my yesterday.

BAOA Participates in the President’s Charity Cycle Challenge

view to raise funds for the less privileged through the President’s Charitable Fund. The Authority is keen to engage in Corporate social responsibility activities hence the drive to participate in such an event.Even though charity sport events have emerged as widespread and integral fundraising mechanisms for charitable organisations, there’s more meaning than just fund raising. Some organisations leveraged on the event and had exhibitions and display stalls to promote their products and services to the participants, foster relationship as well as promote their brands.

The Authority was represented by Blessed Seretse joining the Ministry of Finance and Economic Development (MFED) to participate in the ‘team category’ riding a distance of 30km on the day. “My participation in this event has motivated me to cycle more often and the results are amazing. My energy levels are high and my performance at work has gone up too”, says Seretse. Ministry of Finance and Economic Development team scoped position 2 in the team category. Congratulations Team MFED!

By Ndulamo Ntopo

Sport events are increasingly recognised as an integral marketing strategy. BAOA participated at the President’s charity cycle challenge on the 23rd August 2017, organised by the Office of the President in collaboration with Botswana National Sports

Team MFED getting ready to cycle for charity. Amongst them was Honourable Minister Kenneth Mathambo (right) and BAOA representative Blessed Seretse (centre).

Commission and Botswana Cycling Association. The event was graced by, His Excellency Lt. Gen. Dr. Seretse Khama Ian Khama.

Still in the process of developing its own corporate social responsibility plan, the Authority saw it fit to participate in this noble initiative organised with a

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OUR SERVICES

AuditPracticeReviews

FinancialReportingMonitoring

Reviews

Corporate Governance

Reviews

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Botswana Consumer Fair is an all-inclusive platform whose objectives are to create an interactive forum for exhibitors and customers. It offers opportunities for diversification of the economy and promotes the service sectors. Botswana Accountancy Oversight Authority participated at the Botswana Consumer Fair Exhibitions in Gaborone from 21-27 August 2017 under the theme “Its more than just Shopping”. This was the Authority’s first exhibition of this kind since its inception in 2013.

BAOA took advantage of the platform to increase awareness and understanding of the Authority’s mandate and services offered to its stakeholders, network as well as to build relationships with stakeholders including the general public. Interestingly the fair was utilised to solicit feedback

by identifying and addressing communication needs and issues of the Authority’s mandate.

BAOA enjoyed limitless benefits from the Fair including face-to- face interactions with Public Interest Entities, exhibitors and other stakeholders. Exploring the unlimited opportunities in this biggest fair in Botswana with the highest attendance rate to date, BAOA also had a slot on RB2 to disseminate information and promote its

The Authority exhibits at the 2017 Botswana Consumer Fair for the first time

BAOA executives Duncan Majinda, CEO (right) and Limited Q. Nkani, Director Finance and Administration (left) sharing a light moment with Duma FM Journalists Thapelo Mhlauli and Thabo Osekeng at the Consumer Fair.

market mandate and services to both exhibitors and the general public.

The Authority shall continue to utilise such events to increase awareness of the BAOA mandate, provide additional information on standards, codes and financial reporting trends, applications and solutions. The payoff from these sophisticated trade fairs is to probe registration and maximise service utilisation of the Authority to the benefits of Batswana and the economy at large.

By Ndulamo Ntopo

BAOA stall at the 2017 Consumer Fair.

The Authority’s Legal Manager, Merapelo Mokgosi and Public Relations Officer, Ndulamo Ntopo doing an interview on RB2 during the fair.

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Botswana Accountancy Oversight Authority (BAOA) takes priority in capacity development of staff. In today’s competitive environment, collaborating with stakeholders through secondment programs amongst other opportunities is an effective approach towards an organisation’s growth and alignment. Principal Reviewer Ephifania Nkanga, under the Technical Department, was on a one month secondment programme with the Independent Regulatory Board for Auditors (IRBA) in May 2017. The secondment programme by IRBA is intended for knowledge sharing amongst regional stakeholder members and work towards building strong regulators in the continent. According to Nkanga the programme has proved beneficial.

Catching up with Ndulamo Ntopo, Public Relations Officer of BAOA, Ms Nkanga indicated that the programme offers a life-changing experience, including networking and collaboration opportunities as well as working alongside other experts in the accounting and auditing profession.

According to Nkanga, she was exposed to how the IRBA carries out its various functions, adding that she got to meet a lot of professionals who are actively involved in the standard setting process,

i.e. delegates from the International Auditing and Assurance Standards Board (IAASB) whom she interacted with during the IAASB Information Session. She continued to share that she attended various internal and external meetings and observed how issues are deliberated. These meetings included the Investigation Committee, the Committee for Auditing Standards, the Inspection Committee and the Financial Reporting Standard Council (FRSC) meetings.

The Principal Reviewer indicated that the programme also entailed working with various departments where she was taken through operations and processes and shared some experiences. Through these sessions she discovered and learnt that there are more roles that professionals in the auditing and accounting profession can play, such as:

- Influence the standard setting process through preparing comment letters on exposure drafts and discussion papers prepared by the International Auditing and Assurance Standards Board (IAASB), International Accounting Standards Board (IASB) and the International Ethics Standards Board for Accountants (IESBA).

- Work with others within the profession to develop guides or pronouncements that are relevant to jurisdictional needs, i.e with regards to local stakeholders and other regulators.

- Provide guidance for auditors in implementing international standards on auditing, review, other assurance and related service engagements.

- Engage with international stakeholders i.e. IAASB, International Forum of Independent Audit Regulators (IFIAR).

She carries on to say she had a first-hand experience in writing three comment letters; one on the International Standard on Auditing (ISA) 540:Auditing Accounting Estimates and related Disclosures; Improving the Structure of the Code of Ethics for Professional Accountants Phase 2; and Revisions Pertaining to Safeguards in the Code—Phase 2 and Related Conforming Amendments.

Meanwhile a comprehensive report was shared with Management to improve BAOA’s operations. This goes without saying we would like to thank the Independent Regulatory Board for Auditors for the phenomenal support in developing and strengthening the skills, instincts, abilities, processes and resources that organisations like BAOA need to grow, adapt and thrive in the fast-changing world.

By Ephifania Nkanga and Ndulamo Ntopo

Review Of The Visit To The Independent Regulatory Board For Auditors

Principal Reviewer, Ephifania Nkanga relating her experience from the IRBA visit.

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BAOA in Pictures

Merapelo Mokgosi and Ndulamo Ntopo being interviewed by Dj Gouveiya of RB2

Itumeleng Selebalakhai and Tsholofelo Kereeditse sharing a light moment in a meeting.

NORSAD CEO and Finance Director networking with BAOA CEO after an awareness presentation

CEO Duncan Majinda receiving a token of appreciation on his birthday from Blessed Seretse

BAOA Staff sharing a cake with Yvonne Mmotlanyane and Thapelo Otukile on their birthday

2017 New Recruits, (From Left) Ndulamo Ntopo, Mpho Rabakane and Patience Habana

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BAOA in Pictures

BAOA Staff sharing gifts with Lame Obotseng on her birthday

Keitumetse Kgasudi and Chanana Stimela enjoying a meal at the end ofyear christmas party

HR Manager Boitumelo V. Raditladi (front)with BAOA staff at one of the staff welfare sessions

Tsholofelo Kereeditse, Daniel Keleketu and Thapelo Otukile at the Authority’s Christmas Party.

Staff welfare with a difference!!BAOA Director Finance & Administration Limited Q. Nkani & Legal Manager Merapelo Mokgosi (3rd from left) from BAOA networking with Fund Managers delegates after a meeting.

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My name is Kutlwano Letsholo, currently an Internship participant at BAOA under the Human Resource Section. It’s a year and three months now since I joined this emerging organisation. I graduated from the University of Botswana with a Bachelor’s Degree in Social Sciences in 2015.

My experience in BAOA has undoubtedly introduced me and concurrently opened my raw mind to the world of work, work ethics, professionalism and regulations that are laid down for employees to abide by. It is in BAOA that I had the opportunity to comprehend and execute the practical context of the theoretic knowledge I garnered from tertiary school. As Human Resource is a very broad profession, I had an opportunity to perform some HR functions which have significantly equipped me with practical experience and skills to perform in a professional manner.

One of the major tasks performed is the recruitment process which involves screening and shortlisting candidates for job interviews. This is a vital and strenuous exercise that requires competency and skills to be performed successfully.

I also learnt to do job descriptions and work plans for some staff members and this has equipped me with much essential skills that I will get to utilise in future as an HR practitioner. Having to offer HR services daily has furnished me with practical experience that I shall forever cherish; and I can attest that everything seems clearer day by day. Moreover, in facilitating the day to day activities of the Authority I had a chance to help with some administration work such as managing transport, supervising some staff and assisted in other duties of improving operational excellence. As they say, learning never ends, I am still learning the ropes and eager to learn more and gain much relevant expertise.

However, there is always two sides to every coin, and every journey has two connotations attached to it; the ‘achievements and challenges’. Therefore my journey in BAOA is not an exemption as it’s also marred with its own challenges. Nonetheless, i choose to remain resolute and take them as a learning curve and stepping stone to greater heights.

I would love to validate that internship is a very significant programme that I have come to realise that it is much helpful for every graduate to go through, as it prepares and equips graduates with relevant job requirement skills and competencies needed in every job. In a nutshell an intern participant would have better skills to execute the required roles of the job as opposed to a fresh graduate from University who has never been exposed to the nature of the work place.

Finally, I want to assure my fellow interns across the country that there is light at the end of the tunnel and should not by any chance be daunted by the challenges they encounter in the workplace as they are in a voyage to attain the keys to unlock their careers.

Diary Of An Internship Participant In BAOA

Internship participant Kutlwano Letsholo at work.

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It is this time of the year again where staff get together as a team to relax and reflect on the endeavors of the past twelve months and the vital role that employees played towards achieving set targets. It

Staff welfare session plays an integral part in employee motivation

is part of a general drive towards team building as it brings everyone closer together on a relaxed mode. Managers can use the session to learn more about what drives their employees. What do they love? What do they live for? and what are they thankful for? But remember, you are not collecting evidence, you are hoping to make a greater connection with your team members. This also intended to provide an opportunity to shed off work stress and boost staff morale.

As the year came to an end, December 8th 2017 was a memorable day for BAOA staff as they held their welfare session. The ambiance and décor carried the swag for such an event. The Sophiatown and Wild West theme also added an aroma to the event’s memorable stature. Adding to the events of the night was the speech by the CEO Mr Duncan Majinda highlighting some challenges in meeting review targets and other flouts the Authority faced during

Mr Majinda presenting an award to one of the awardees Lesego Pheto from Technical Department for Best Individual Performance.

Botswana Day commonly known as Independence celebrations continues to bring Batswana, the Government and the private sector together for the development of the country.

Botswana Accountancy Oversight Authority joined the magnitude on the Botswana Day National Celebrations dubbed Bot50+1 under the theme ‘Taking Botswana Forward’. This was in collaboration with the Ministry of Finance and Economic Development and its Parastatals. Amongst the activities lined-up was the Float Procession on which the Authority took part as one of the Ministry’s parastatals to showcase its mandate.

This follows the grand golden jubilee independence celebration; Botswana 50 celebration that took

BAOA Joins Bot50+1 Float Proccession

place in 2016. Batswana continue to appreciate and celebrate this day with different activities across the country. As the theme says, entities continues to take Botswana forward by participating in these noble events, showcasing its mandate as well as interacting with the community.

BAOA exists to protect public interest in Botswana through oversight and regulation by developing, promoting and implementing credible financial reporting. This can be achieved through stakeholder support derived from healthy relationships built over time. We take it that Independence celebration is one of the activities used to build relationships with stakeholder, hence our full participation.

By Ndulamo Ntopo

National Stadium packed to capacity at the BOT50+1 celebrations.Preparations for the Independence Float procession.

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the year 2017, which did not bring the staff morale down, rather staff took it as constructive feedback to improve in future. On a different note the Director for Finance and Administration Mr Limited Q. Nkani pointed out that generally it was a good year and commended staff for a job well done.

The CEO also got a chance to recognise and reward some employees for their outstanding demonstration of high level competence and work delivery. The award winners are:

• Individual Performance Award:

Blessed SeretseTsholofelo KereeditseLesego PhetoThapelo Otukile andItumeleng Selebalakhai-Overall Best Performer.

• The Following staff members were also recognised for the achievement of their goals for the year 2017:

Ephifania NkangaPatrick Jansen andBoitumelo Raditladi.

• Team Award-This was awarded to the office movement team below:

Blessed SeretseTsholofelo KereeditseDaniel KeleketuPatrick JansenBoitumelo RaditladiMargret Montebatsi andOlebeletse Mokone.

The employee recognition awards initiative has been designed to formally recognise and celebrate the outstanding contributions of employees to the achievement of the mission and vision of the Authority. Congratulations to the winners!

The night ended with whoops and cheers as employees congratulated and wished each other a merry Christmas.

By Ndulamo Ntopo

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PUBLIC INTEREST ENTITIES (PIEs) REGISTERED WITH THE BOTSWANA ACCOUNTANCY OVERSIGHT AUTHORITY (BAOA) (2016/2017)

No. NAME REGISTRATION NUMBER

LISTED ON BOTSWANA STOCK EXCHANGE1 Engen Botswana Limited BSE 001 20162 Letlole La Rona Limited BSE 002 20163 Imara Holdings Limited BSE 003 20164 Afinitas Limited BSE 004 20165 Botswana Insurance Holdings Limited BSE 005 20166 Choppies Enterprises Limited BSE 006 20167 Botswana Telecommunications Limited BSE 007 20168 Chobe Holdings Limited BSE 008 20169 Cresta Marakanelo Limited BSE 009 201610 Furnmart Limited BSE 0010 201611 G4S (Botswana) Limited BSE 0011 201612 Letshego Holdings Limited BSE 0012 201613 New African Properties Limited BSE 0013 201614 Sechaba Holdings Limited BSE 0014 201615 Turnstar Holdings Limited BSE 0015 201616 Wilderness Holdings Limited BSE 0016 201617 RDC Properties Limited BSE 0017 201618 Sefalana Holding Limited BSE 0018 201719 The Far Property Company Limited BSE 0019 201720 Three Partners Resorts Limited BSE 0020 201721 A-Cap Resources Limited BSE 0021 201722 Lucara Diamond Corp. BSE 0022 201723 PrimeTime Property Holdings BSE 0023 201724 Minergy Limited BSE 0024 201725 Botswana Diamonds Plc Limited BSE 0025 201726 Anglo American Plc BSE 0026 201727 Shumba Energy BSE 0027 2017

ENTITIES SUPERVISED BY BANK OF BOTSWANA1 Capital Bank Limited BoB 001 20162 Bank of India BoB 002 20163 Bank SBI Botswana Limited BoB 003 20164 Bank of Baroda BoB 004 20165 First National Bank of Botswana BoB 005 20166 Bank Gaborone Limited BoB 006 20167 Rennies Foreign Exchange Proprietary Limited BoB 007 20168 African Banking Corporation of Botswana Limited BoB 008 20169 Barclays Bank of Botswana Limited BoB 009 201710 Stanbic Bank Botswana Limited BoB 0010 201711 Standard Chartered Bank BoB 0011 201712 Master Bureau de Change BoB 0012 201713 Gorogang Bureau de Change BoB 0013 201714 Tshilong Bureau de Change BoB 0014 2017

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15 TLR Money Link Bureau de Change BoB 0015 201716 Sunny Bureau de Change BoB 0016 201717 Silver Bureau de Change BoB 0017 201718 Proxy Bureau de Change BoB 0018 201719 Ozair Bureau de Change BoB 0019 201720 Macheng Bureau de Change BoB 0020 2017

ENTITIES SUPERVISED BY THE NON-BANK FINANCIAL INSTITUTIONS REGULATORY AUTHORITY1 Botswana Insurance Company Limited NBF 001 20162 Motswedi Securities (Pty) Ltd NBF 002 20163 First Reinsurance Company NBF 003 20164 Zurich Insurance Company Botswana NBF 004 20165 Afritec Proprietary (Pty) Ltd NBF 005 20166 Aon Risk(Pty) Ltd NBF 006 20167 Metropolitan Life (Pty) Ltd NBF 007 20168 Dynamic Insurance Brokers NBF 008 20169 Stanlib Investment Management (Pty) NBF 009 201610 Regent Life Botswana Limited NBF 0010 201611 Botswana Stock Exchange NBF 0011 201612 Liberty Life Botswana NBF 0012 201613 Bona Life Insurance NBF 0013 201614 Alexander Forbes Botswana Group Holdings Ltd NBF 0014 201615 Kalahari Insurance Brokers NBF 0015 201616 Kebonang Holdings (Pty) Ltd NBF 0016 201617 AON Botswana (Pty) Ltd NBF 0017 201618 Phoenix of Botswana Assurance Co. Pty NBF 0018 201619 GetBucks (Pty) Ltd NBF 0019 201620 Kgori Capital (Pty) Ltd NBF 0020 201621 Norsad Finance (Pty) Ltd NBF 0021 201622 First Sun Alliance (Pty) Ltd NBF 0022 201623 Penrich Insurance Brokers NBF 0023 201624 Bank Gaborone Insurance Agency NBF 0024 201625 FMRE Property and Casualty (Pty) Ltd NBF 0025 201626 Investec Asset Management Botswana NBF 0026 201627 Botswana Public Officers Pension Fund NBF 0027 201628 Sesiro Insurance (Pty) Ltd NBF 0028 201629 Marsh Botswana (Pty) Ltd NBF 0029 201630 Hollard Life Botswana NBF 0030 201731 Regent Insurance Botswana (Pty) Ltd NBF 0031 201732 Hollard Insurance (Pty) Ltd NBF 0032 201733 Bayport Financial Services NBF 0033 201734 Old Mutual Short-Term Insurance (Botswana) Limited NBF 0034 201735 Old Mutual Life Insurance Company (Botswana) (Pty) Ltd NBF 0035 201736 Continental Reinsurance Company Limited NBF 0036 201737 Alpha Direct Insurance Company NBF 0037 201738 Botswana Housing Corporation Staff Pension Fund NBF 0038 201739 Botswana Ash Staff Pension Fund NBF 0039 201740 Alexander Forbes Individual Member Pension Fund NBF 0040 2017

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41 African Alliance Botswana Securities Limited NBF 0041 201742 Alexander Forbes Financial Services Botswana NBF 0042 201743 Alexander Forbes Asset Consultants (Pty) NBF 0043 201744 Botswana Life Insurance Limited NBF 0044 201745 Botswana Insurance Fund Management NBF 0045 201746 Legal Guard NBF 0046 201747 Botswana Insurance Fund Management Unit Trusts NBF 0047 201748 Allan Gray Botswana NBF 0048 201749 StockBrokers Botswana Limited NBF 0049 201750 Investec Fund Managers Botswana NBF 0050 201751 Barclays Bank Staff Pension Fund NBF 0051 201752 First National Bank Pension Fund NBF 0052 201753 Alexander Forbes Retired Fund NBF 0053 201754 Water Utilities Staff Pension Fund NBF 0054 201755 Kgalagadi Breweries Limited Pension Fund NBF 0055 201756 BURS Pension Fund NBF 0056 201757 BBS Pension Fund NBF 0057 201758 Debswana Staff Pension Fund NBF 0058 201759 Stanbic Bank Botswana NBF 0059 201762 Civil Aviation Authority Botswana Staff Pension Fund NBF 0060 201761 Ipro (Botswana) (Pty) Ltd NBF 0061 201762 Afica Fifty Three Provident Fund NBF 0062 201763 Botswana Telecommunications Limited Staff Pension

FundNBF 0063 2017

65 Botswana Examinations Council Pension Fund NBF 0064 201765 G4S Limited Pension Fund NBF 0065 201766 Local Enterprise Authority Pension Fund NBF 0066 201767 BPOMAS NBF 0067 201768 PULA Medical Aid NBF 0068 201769 Ernst & Young Pension Fund NBF 0069 201770 National Development Bank Staff Pension Fund NBF 0070 201771 BIHL Defined Contribution Retirement Fund NBF 0071 201772 Bank of Botswana DC Staff Pension Fund NBF 0072 201773 BUIST Staff Pension Fund NBF 0073 201774 Engen Botswana Retirement Fund NBF 0074 201775 Deloitte & Touche Pension Fund NBF 0075 201776 Botswana Telecommunications Staff Pension Fund NBF 0076 201777 Botswana Power Corporation Staff Pension Fund NBF 0077 201778 Mascom Wireless Staff Pension Fund NBF 0078 201779 Total Pension Fund NBF 0079 201780 Apex Retirement Fund NBF 0080 201781 Puma Energy Pension Fund NBF 0081 201782 Fleming Asset Management Botswana NBF 0082 201783 Bomaid/Southview Group Staff Pension Fund NBF 0083 201784 Free Standing Additional Voluntary Contribution NBF 0084 201785 UB Pension Fund NBF 0085 201786 Standard Chartered Bank Pension Fund NBF 0086 201787 BMC Pension Fund NBF 0087 201788 Sentlhaga Pension Fund NBF 0088 2017

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89 Millennium Retirement Fund NBF 0089 201790 Sefalana Group Staff Pension Fund NBF 0090 201791 Botswana Insurance Company Retirement Fund NBF 0091 201792 Motor Vehicle Accident Retirement Fund NBF 0092 201793 Botswana Railways Staff Pension Fund NBF 0093 201794 Maru-a-pula School Staff Pension Fund NBF 0094 201795 Deferred Pensioners Pension Fund NBF 0095 201796 Foreign Service Nationals Retirement Fund NBF 0096 201797 Majwe Minning Provident Fund NBF 0097 201798 Vivo Energy Pension Fund NBF 0098 201799 Botswana Agricultural Markerting Board Pension NBF 0099 2017100 Botswana Post Staff Pension Fund NBF 00100 2017101 BOBS Staff Pension Fund NBF 00101 2017102 CEDA Staff Pension Fund NBF 00102 2017103 Metropolitan Pension Fund NBF 00103 2017104 Metropolitan Provident Fund NBF 00104 2017105 Orange Staff Pension Fund NBF 00105 2017106 Botsogo Health Plan NBF 00106 2018107 Barclays Life Botswana NBF 00107 2018

ENTITIES DETERMINED BY THE MINISTER1 Woolworths (Botswana) Pty Ltd MIN 001 20162 Motovac (Pty) Ltd MIN 002 20163 Murupule Coal Mine Limited MIN 003 20164 Radical Investments (Pty) Ltd MIN 004 20165 Motor Centre MIN 005 20166 Diamond Trading Company Botswana MIN 006 20167 Global Holdings Botswana MIN 007 20168 CitySkapes MIN 008 20169 Allied Investments MIN 009 201610 Bolux Group MIN 0010 201611 Trans Africa MIN 0011 201612 Kromberg& Schubert Botswana MIN 0012 201613 Tati Nickel Mining Company MIN 0013 201614 Mupane Gold Mining MIN 0014 201615 Overseas Development Enterprises MIN 0015 201616 DeBeers Global Sightholder Sales MIN 0016 201617 Vivo Energy Botswana MIN 0017 201618 CA Sales and Distribution MIN 0018 201619 Lenmed Health Bokamoso Private Hospital MIN 0019 201620 Mascom Wireless MIN 0020 201621 Naledi Motors MIN 0021 201622 Consolidated Group Contractors Sal MIN 0022 201623 Boteti Mining MIN 0023 201624 Botswana Ash MIN 0024 201625 Kgalagadi Breweries MIN 0025 201626 FSG Limited MIN 0026 201727 Puma Energy MIN 0027 2017

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28 Debswana Limited Company MIN 0028 201729 Healthcare Management Services MIN 0029 201730 Orange Botswana (Proprietary) Limited MIN 0030 201731 Pula Sales (Proprietary) Limited MIN 0031 201732 Clover Botswana (Proprietary) Limited MIN 0032 201733 Majwe Mining Joint Venture MIN 0033 201734 J Haskins & Sons (Pty) Ltd MIN 0034 201735 Barloworld (Pty) Ltd MIN 0035 201736 Universal Builders (Pty) Ltd MIN 0036 201737 Bokomo (Pty) Ltd MIN 0037 201738 Retail Holdings Botswana (Pty) Ltd MIN 0038 201739 M Suresh Botswana (Pty) Ltd MIN 0039 201840 Master Farmer Feeds (Pty) Ltd MIN 0040 201841 Khoemacau (Pty) Ltd MIN 0041 2018

ENTITIES REQUIRED TO FILE FINANCIAL STATEMENTS AND REPORTS WITH A GOVERNMENT DEPARTMENT OR AUTHORITY

1 Citizen Entrepreneurial Development Agency PAR 001 20162 Botswana Bureau of Standards PAR 002 20163 Botswana National Sports Council PAR 003 20164 Botswana Vaccine Institute PAR 004 20165 Botswana Postal Services Limited PAR 005 20166 Gambling Authority PAR 006 20167 University of Botswana PAR 007 20168 Local Enterprise Authority PAR 008 20169 Botswana Communications Regulatory Authority PAR 009 201610 Botswana Oil Limited PAR 0010 201611 Botswana Savings Bank PAR 0011 201612 Institute of Development Management PAR 0012 201613 Botswana Building Society PAR 0013 201614 Botswana Meat Commission PAR 0014 201615 Botswana Housing Corporation PAR 0015 201616 Motor Vehicle Accident Fund PAR 0016 201617 Competition Authority PAR 0017 201618 Botswana Investment & Trade Centre PAR 0018 201619 Public Procurement & Asset Disposal Board PAR 0019 201620 Botswana Institute for Development Policy Analysis PAR 0020 201621 Companies and Intellectual Property Authority PAR 0021 201622 Debt Participation Capital Funding Limited PAR 0022 201623 Botswana International University of Science and Technology PAR 0023 201624 Civil Aviation Authority of Botswana PAR 0024 201625 Forest Conservation Botswana PAR 0025 201626 Botswana Railways PAR 0026 201627 Air Botswana PAR 0027 201628 National Food Technology Research Centre PAR 0028 201629 Botswana Fibre Networks PAR 0029 201730 Bank of Botswana PAR 0030 201731 Botswana Privatisation Asset Holdings PAR 0031 2017

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32 National Development Bank PAR 0032 201733 Botswana National Productivity Centre PAR 0033 201734 BOCODOL PAR 0034 201735 Botswana Qualifications Authority PAR 0035 201736 SPEDU PAR 0036 201737 Water Utilities Corporation PAR 0037 201738 Minerals Development Company Botswana PAR 0038 201739 Botswana Agricultural Marketing Board PAR 0039 201740 Botswana Power Corporation PAR 0040 201741 Engineers Registration Board PAR 0041 201742 Quantity Surveyors Registration Council PAR 0042 201743 Botswana Examinations Council PAR 0043 201744 Okavango Diamond Company PAR 0044 201745 Legal Aid Botswana PAR 0045 201746 Botswana Development Corporation PAR 0046 201747 Construction Industry Trust Fund PAR 0047 201748 Botswana Tourism Organisation PAR 0048 201749 Human Resource Development Council PAR 0049 201750 Botswana Accountancy College PAR 0050 201751 Botswana University of Agriculture and Natural Resources PAR 0051 201752 Public Enterprises Evaluation and Privatisation Agency PAR 0052 201753 Architects Registration Council PAR 0053 201754 Botswana Unified Revenue Service PAR 0054 201755 Statistics Botswana PAR 0055 2017

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NOTICE

ALL PUBLIC INTEREST ENTITIES ARE NOTIFIED OF THE DEADLINE FOR RENEWAL OF REGISTRATION FOR 2018 WITH BOTSWANA ACCOUNTANCY

OVERSIGHT AUTHORITY

The Botswana Accountancy Oversight Authority (BAOA) wishes to remind all its stakeholders that the deadline for renewal of registration with BAOA as a Public Interest Entity (PIE) is the 31st December, 2017. This is pursuant to Regulation 6(1) of the Financial Reporting (Public Interest Entities) Regulations, 2016.

In accordance with Regulation 6 (2), a P.I.E which fails to renew its registration as such or fails to pay the renewal of registration fee in accordance with sub regulation (1) shall be liable to pay a penalty of fifty percent (50%) of the annual subscription fee on renewal of registration.

For this purpose, Sections 22 and 56 (1) of the Financial Reporting Act,2010 read with Regulation 3 (1) of the Financial Reporting (Public Interest entities) Regulations, 2016 define a PIE as:

1. Any entity that is listed in the Botswana Stock Exchange;

2. Any entity that is supervised by the Bank of Botswana;

3. Any entity that is supervised by the Non-Bank Financial Institutions Regulatory Authority;

4. Any entity which, at the end of the preceding accounting year, exceeded at least two of the following thresholds:

a) An annual revenue of P300 million;

b) 200 employees;

c) Total assets of P200 million; or

d) Total liabilities of P100 million not including shareholders’ equity; and

5. Any entity required under any enactment to file financial statements and reports with a Government department or authority, in accordance with section 56 (1) of the Financial Reporting Act, 2010.

All P.I.Es as defined above which have not yet registered with BAOA are also urged to register by the above mentioned deadline, taking note that failure to do so is a breach of the Law which shall attract significant penalties.

Please contact the Legal Manager, Ms. Merapelo Mokgosi at mmokgosi@baoa.org.bw / Legal Officer, Mr Thapelo Otukile at totukile@baoa.org.bw or telephone number 3919735 for any further clarification.

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PROTECTING PUBLIC INTEREST

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CERTIFIED FIRM REGISTRATION NUMBER CERTIFIED AUDITOR REGISTRATION NUMBER

PricewaterhouseCoopers FAP001 Butler PhirieRudi BinedellAnton Sheyan EdirisingheSiddihalu Kosala WijesenaLalithkumar Mahesan

CAP001CAP003CAP004CAP0025CAP0031

Deloitte FAP002 Massimo MarinelliFrederik Christian ElsPragnaben NaikCecilia Veeta RamatlapengKyuchukova-Troanska, EvgeniyaMagritha Juanita Wootherspoon

CAP005CAP006CAP007CAP008CAP0026CAP0032

Ernst & Young FAP003 Bakani NdwapiThomas Nyasha N. Chitambo

CAP0010CAP0011

KPMG FAP004 Anthony Gerard DevlinFrancois Roos

CAP0012CAP0013

Grant Thornton FAP005 Dinesh Radhakrishna MallanAswin VaidyanathanMadhavan Venkatachary

CAP0015CAP0016CAP0017

IAMS FAP006 Kandiah Rajadurai SriDaranDayani SriDaran

CAP0018CAP0019

Mazars FAP007 Madhu Menon KalathilShashikumar Velambath

CAP0020CAP0022

RSM Botswana FAP008 Gurusubrahmaniyan GurumoorthiProsper Vavariro Muonde

CAP0023CAP0024

Goel & Associates FAP009 Sanjay GoelShekhar Goel

CAP0027CAP0028

BDO FAP0010 Christopher John BrayDonovan Van Der Vyver

CAP0029CAP0030

To: Members of the Public and Botswana Accountancy Oversight Authority Stakeholders

RE: REGISTRATION OF CERTIFIED AUDITORS AND AUDIT FIRMS OF PUBLIC INTEREST ENTITIES

As you are aware, the Financial Reporting Act, 2010 (the Act) ushered in the Botswana Accountancy Oversight Authority to, among other functions:

a) improve the standard and quality of accounting and audit services; and

b) protect the interest of the public and investors in entities.

With specific reference to Certified Auditors and Audit Firms, Section 24 of the Financial Reporting Act, 2010 (the Act) states that “notwithstanding anything contained in the Companies Act, or any other law, a person shall not hold any appointment, or offer any services for remuneration, as a Certified Auditor of Public Interest Entity (PIE), unless he or she is registered by the Authority as a Certified Auditor of PIE under this Act”, while Section 25 of the Act states that “An audit firm shall not practise or provide audit services to a public interest entity, unless such firm is registered with the Authority’’.

Pursuant to the foregoing, the following Certified Auditors and Audit Firms of Public Interest Entities (PIEs) are registered with the Authority as at 01 April 2017:

All Public Interest entities are therefore informed that only the above listed certified auditors and audit firms are permitted to offer audit services to Public Interest Entities.

Kindly note that the list, which will be updated annually or upon changes thereto being made, may also be accessed on the BAOA website, under “Members - Certified Auditors and Audit Firms of Public Interest Entities”.

If you wish to obtain any more information or clarification, please contact either the undersigned or the Director, Technical, e-mail: jmutwale@baoa.org.bw. Thank you for your cooperation.

Yours sincerely,

Duncan D MajindaCHIEF EXECUTIVE OFFICEREmail: dmajinda@baoa.org.bwSwitchboard line: 3919735

PLOT 54357, VARSHA HOUSE, CBD, 10TH FLOORPRIVATE BAG 0056, GABORONE, BOTSWANA

TEL: +267 3919735 FAX: +267 3919737www.baoa.org.bw