Revenue from ordinary activities increased by $746 000 to $5.3 million.
Grant expenditure decreased by $958 000 to $1.4 million.
Supplies and services expenditure increased by $676 000 to $1.5 million.
Cash assets increased by $1.3 million to $3.1 million
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 the adequacy of internal controls.
The specific areas of audit attention included:
accounting policies
budgetary control and management reporting
grant expenditure
revenue, receipting and banking
accounts payable
salaries and wages.
During the year a management letter communicating issues arising from the audit was forwarded to the General Manager of the River Murray Catchment Water Management Board (the Board). 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 River Murray Catchment Water Management 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.
Levies charged under the Water Resources Act 1997 amounted to $4 million, comprising $1.8 million from SA Water for reticulated water supply and $2.2 million in water-based levies for irrigation and industrial use.
Water-based levies increased from $2 million to $2.2 million reflecting a change in the boundaries of the catchment area for which the Board is responsible.
Grants and contributions revenue increased from $367 000 to $748 000 as a result of the Board being awarded project funding under the Murray Darling 2001 program of the Natural Heritage Trust.
The increase in other revenue mainly reflects consultancy work amounting to $377 000 being undertaken by the Board for the first time.
The decrease in grants expenditure from $2.4 million to $1.4 million mainly reflects timing differences in grant payments for the 2001-02 funding year. The majority of grants were provided as part of the Murray Darling 2001 program of the Natural Heritage Trust. Under this program, state project funding is matched by the Commonwealth.
The increase in supplies and services expenditure of $676 000 to $1.5 million is mainly the result of additional expenditure on the engagement of consultants to assist in the development of the Catchment Water Management Plan and Water Allocation Plans and conduct specific project and investigative works.
Cash Assets
Cash increased by $1.3 million to $3.1 million. The increase is primarily accounted for by unspent grant funds of $592 000 and commitments in relation to Natural Heritage Trust project funding of $712 000 as explained in Notes 11 and 19.