ETSA Corporation was established as a public corporation pursuant to the provisions of the Electricity Corporations Act 1994. In February 2000 the name of ETSA Corporation was changed to RESI Corporation.
RESI Corporation is the ultimate controlling parent entity for two subsidiary public corporations established pursuant to Regulations under the Public Corporations Act 1993. They are RESI Power Corporation (formerly ETSA Power Corporation) and RESI Energy Corporation (formerly ETSA Energy Corporation). Neither of those subsidiaries traded during the year.
RESI Corporation also owned (but did not control) RESI Capital Pty Ltd and Transmission Lessor Corporation (trading as ElectraNet SA). The absence of control arises from a Ministerial Direction issued pursuant to section 6 of the Public Corporations Act 1993 that required ETSA Corporation, now RESI Corporation ‘... not to exercise any power of direction ... so as to create or maintain an impediment to the autonomous trading activities …’ of those entities.
The structure of RESI Corporation and its controlled entities as at 30 June 2000 is shown in the following diagram:
The primary functional responsibilities of RESI Corporation, as set out in its charter, include the following:
Manage and administer any residual assets and liabilities, which do not form part of the State’s electricity privatisation process.
Implement pass-through agreements as directed by the Treasurer.
To, as directed, become and remain a party to a number of agreements including:
US Cross Border Lease transaction over the electricity transmission assets,
gas haulage and gas purchase agreements,
power purchase agreements with Osborne Cogeneration Pty Ltd.
To act as the parent entity of a number of subsidiary entities until they are wound up, deregistered or dissolved.
A dividend of $55 million was received from ElectraNet SA during the year.
A dividend of $58.7 million was paid to the Treasurer during the year.
In accordance with section 32(4) of the Public Corporations Act 1993, the Auditor-General must audit the accounts of RESI Corporation (formerly ETSA Corporation) in each 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 statements and internal control.
During 1999-2000 a specific area of audit attention was the transfer of asset and liability balances into RESI Corporation pursuant to the electricity businesses restructuring and disposal process.
As required by subsection 36(1)(a)(iii) of the Public Finance and Audit Act 1987, the audit of RESI Corporation (formerly ETSA 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 RESI Corporation (formerly ETSA 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 restructure and/or disposal of electricity entities throughout the year has resulted in the transfer of a number of assets and liabilities into, or from, RESI Corporation. In particular, the following transactions took place during the year:
Net liabilities of $1.1 million were transferred from Flinders Coal Pty Ltd (previously SA Generation Corporation) as a result of a Ministerial Transfer Order issued pursuant to section 8 of the Electricity Corporations (Restructuring and Disposal) Act 1999.
Borrowings from SAFA of $711 million, together with associated receivables from RESI Utilities Pty Ltd and Transmission Lessor Corporation, were assumed by the Treasurer.
Net superannuation liabilities of $67 million were transferred to the South Australian Superannuation Board.
The net assets of the Corporation as at 30 June 2000 were $1 461 million. If balances with the Treasurer and other government-owned electricity entities are excluded, the Corporation has net liabilities of $6.1 million, made up as follows:
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2000 |
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$’000 |
Assets: |
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Receivables |
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31 |
Property, plant and equipment |
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416 |
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447 |
Liabilities: |
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Accounts payable |
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371 |
Provisions |
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6 142 |
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6 513 |
Net Liabilities |
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6 066 |
Provisions of $6.1 million are made up as follows:
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2000 |
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$’000 |
Cost for disposal of contaminated materials |
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138 |
Demolition and site restoration costs associated with land at Port Lincoln and Osborne |
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1 724 |
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Claims relating to self insured risks |
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3 113 |
Retirement benefits for Directors and ex-employees |
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1 167 |
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6 142 |
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