Treasurer’s Annual Financial Statement cont… between the three entities. I was unable to confirm or verify these financial statement items by alternative means. As a result I was unable to determine whether any adjustments to the records of Power and Water Corporation might have been required in respect of these balances, and the corresponding elements making up the comprehensive operating statement, the balance sheet, statement of changes in equity and the cash flow statement for the Public Corporation Sector. Property, plant and equipment valuation Power and Water Corporation – At the time of my audit opinion on the TAFS, the Power and Water Corporation changed its accounting policy effective 1 July 2014 in relation to the measurement of its property, plant and equipment from historical cost to fair value. The Power and Water Corporation commissioned independent valuations to provide a fair value which resulted in the value of property, plant and equipment reported in the balance sheet increasing by $2,063,769,000 to $3,992,140,000. The valuations were performed using depreciated optimised replacement cost and have not considered the Power and Water Corporation’s ability to generate economic benefits by using the assets or by selling them to another market participant. In addition, the financial records used to derive the fair value at 1 July 2014 were complex and contained numerous errors, both individually and cumulatively material, with some of these errors remaining unresolved as at the date of this audit report. As a result of the above, I was unable to satisfy myself that the amount reported in the balance sheet as at 30 June 2015 attributable to the Power and Water Corporation accurately represented the fair value of property, plant and equipment and that the amounts for depreciation and asset impairment attributable to the Power and Water Corporation were accurately reported in the comprehensive operating statement for the year ended 30 June 2015 for the Public Non-Financial Corporation Sector. Auditor’s Opinion General Government Sector and Public Financial Corporation Sector – In my opinion, the Treasurer’s Annual Financial Report a true and fair view of the financial position of the General Government Sector and Public Financial Corporation Sector as at 30 June 2015 and of their performance and cash flows for the year then ended in accordance with Australian Accounting Standards and the financial reporting requirements of the Financial Management Act and the Fiscal Integrity and Transparency Act.
Treasurer’s Annual Financial Statement cont… between the three entities. I was unable to confirm or verify these financial statement items by alternative means. As a result I was unable to determine whether any adjustments to the records of Power and Water Corporation might have been required in respect of these balances, and the corresponding elements making up the comprehensive operating statement, the balance sheet, statement of changes in equity and the cash flow statement for the Public Corporation Sector. Property, plant and equipment valuation – Power and Water Corporation At the time of my audit opinion on the TAFS, the Power and Water Corporation changed its accounting policy effective 1 July 2014 in relation to the measurement of its property, plant and equipment from historical cost to fair value. The Power and Water Corporation commissioned independent valuations to provide a fair value which resulted in the value of property, plant and equipment reported in the balance sheet increasing by $2,063,769,000 to $3,992,140,000. The valuations were performed using depreciated optimised replacement cost and have not considered the Power and Water Corporation’s ability to generate economic benefits by using the assets or by selling them to another market participant. In addition, the financial records used to derive the fair value at 1 July 2014 were complex and contained numerous errors, both individually and cumulatively material, with some of these errors remaining unresolved as at the date of this audit report. As a result of the above, I was unable to satisfy myself that the amount reported in the balance sheet as at 30 June 2015 attributable to the Power and Water Corporation accurately represented the fair value of property, plant and equipment and that the amounts for depreciation and asset impairment attributable to the Power and Water Corporation were accurately reported in the comprehensive operating statement for the year ended 30 June 2015 for the Public Non-Financial Corporation Sector. Auditor’s Opinion – General Government Sector and Public Financial Corporation Sector In my opinion, the Treasurer’s Annual Financial Report a true and fair view of the financial position of the General Government Sector and Public Financial Corporation Sector as at 30 June 2015 and of their performance and cash flows for the year then ended in accordance with Australian Accounting Standards and the financial reporting requirements of the Financial Management Act and the Fiscal Integrity and Transparency Act.
2016_February.docx