The deficit from ordinary activities was $592 000 (surplus of $254 000).
Cash assets decreased by $990 000 to $1.2 million.
The Board revalued its gross pollutant traps resulting in a revaluation increment of $377 000.
Section 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 $2.3 million ($2.2 million) to the Board in 2001-02 The contributions comprised 74 percent (89 percent) of the Board’s revenues for the year.
Revenue from other contributions and grants increased by $578 000 to $708 000 due mainly to an increase in grants from the National Heritage Trust and the Department of Transport, Urban Planning and the Arts.
Expenditure on contractors increased by $1.4 million to $2.1 million due mainly to the construction of the Morphettville Racecourse wetland.
Expenditure on grants and subsidies decreased by $216 000 to $560 000 due mainly to decreased grants to Councils for the prevention of stormwater pollution.
The following chart depicts the major expenditures of the Board in 2001-02.
The following graph reflects the movement in cash assets over the last six years.
The decrease in cash assets in 2001-02 is due mainly to the construction of the Morphettville Racecourse wetland.