The Seventh Australian Masters Games Corporation, a subsidiary to the Minister for Tourism (formerly the Minister for Industry Trade and Tourism), was established on 21 May 1998 pursuant to regulations under the Public Corporations Act 1993 (the Act). The functions of the Corporation are limited by regulation to plan, organise, promote, host and stage the Seventh Australian Masters Games (the Games) and, in particular to:
develop and implement an organisational plan for the Games;
market and promote the Games within and outside the State;
do (whether within or outside the State) all other things necessary for, or incidental or ancillary to, the planning, organisation, hosting and staging of the Games;
carry out other functions conferred on the subsidiary by the Minister.
The Games were held in the period 25 September to 3 October 1999.
The Schedule to the Act, requires the Seventh Australian Masters Games Corporation, established pursuant to section 24 of the Act, to keep proper accounts of its financial affairs and to prepare Financial Statements in respect of each year.
It further provides that the Auditor-General must audit the accounts and Financial Statements of the Seventh Australian Masters Games Corporation.
As mentioned previously the Games were completed in early October 1999. The last meeting of the Board of the Seventh Australian Masters Games Corporation was held in late October 1999. At this meeting responsibility for the finalisation of operations (including preparation of the 1999-2000 financial statements) and statutory wind up of the Corporation was given to the South Australian Tourism Commission.
Specific areas of Audit attention to the 1999-2000 operations of the Corporation included:
revenue, receipting and banking
salaries and wages
accounts payable
general ledger and journals
management and financial reporting
finalisation of operations and statutory wind up of the Corporation.
The audit of the Corporation’s results of operations and accounts was completed after the finalisation of the Games. Matters identified in the final audit of the Corporation principally related to Audit suggestions provided to facilitate the completion of the 1999-2000 financial statements and statutory wind up of the Corporation. These matters were communicated to the South Australian Tourism Commission and Minister for Tourism and have been responded to in a satisfactory manner.
The financial statements for 1999-2000, presented for audit, have addressed the suggestions made by Audit. In addition, the regulatory process to wind up the Corporation was being progressed at the time of preparation of this Report.
As required by subsection 36(1)(a)(iii) of the Public Finance and Audit Act 1987, the audit of the Seventh Australian Masters Games Corporation 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.
Audit formed the opinion that the controls exercised by the Seventh Australian Masters Games Corporation 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 the law.
The operating results and net asset position of the Corporation over the period of time since its establishment is summarised as follows:
|
|
2000 |
1999 |
1998 |
|
|
$’000 |
$’000 |
$’000 |
Operating revenues |
|
1 682 |
1 853 |
262 |
Operating expenses |
|
1 745 |
1 722 |
227 |
Operating Surplus (Deficit) |
|
(63) |
131 |
35 |
|
|
|
|
|
Net Assets |
|
3 |
166 |
35 |
|
|
|
|
|
The wind down of the residual net assets is being administered by the South Australian Tourism Commission (Note 22 to the financial statements refers).