The deficit from ordinary activities was $144 000 (surplus of $137 000).
Subsection 74(2) of the Water Resources Act 1997 specifically provides for the Auditor-General to audit the accounts and financial statements of each Board established under the Act in respect of each financial year.
The audit program covered all major financial systems and was directed primarily towards obtaining sufficient evidence to enable an audit opinion to be formed with respect to the financial report and adequacy of internal controls.
The specific areas of audit attention included:
budgetary control and management reporting
accounts payable
payroll
revenue, including council contributions and grant funding
grant administration.
During the year a management letter communicating issues arising from the audit was forwarded to the General Manager. A satisfactory response was received.
As required by subsection 36(1)(a)(iii) of the Public Finance and Audit Act 1987, the audit of the Board included an assessment of the controls exercised in relation to the receipt, expenditure and investment of money, the acquisition and disposal of property and the incurring of liabilities. The assessment also considered whether those controls were consistent with the prescribed elements of the Financial Management Framework as required by Treasurer’s Instruction 2 ‘Financial Management Policies’.
Audit formed the opinion that the controls exercised by the Board in relation to the receipt, expenditure and investment of money; the acquisition and disposal of property; and the incurring of liabilities were sufficient to provide reasonable assurance that the financial transactions of the organisation were conducted properly and in accordance with law.
Constituent Councils provided contributions of $2.1 million ($2.0 million) to the Board in 2001-02. The contributions comprised 74 percent (79 percent) of the Board’s revenues for the year.
The following chart depicts the major expenditures of the Board in 2001-02.
