Fees and charges increased by $116 000 (12 percent) to $1.1 million.
Total expenditure increased by $299 000 (26 percent) to $1.5 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 Chief Executive Officer of the South East 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 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 $1.1 million, accounting for 96 percent of the Board’s revenue.
Expenditure increased by $299 000 or 26 percent to $1.5 million reflecting increased grants and contributions toward projects conducted by other organisations which further water resource management in the Board’s catchment area.
Cash and receivables as at 30 June 2002 amounted to $363 000 and represented 94 percent of the Board’s total assets. The Board’s liabilities amounted to $94 000, all of which were current.
The Board administers funds held on behalf of the Mid South East Irrigators Association. Cash held by the Board at 30 June amounted to $737 000 ($396 000). Note 1(d) and Note 22 to the accounts explains the details and a summary of financial activity relating to this activity.