This report serves two broad purposes:

  • it constitutes our "annual report" on the audits for 2001-02 of the Crown and its sub-entities – mainly as reflected in the Financial Statements of the Government of New Zealand for the Year Ended 30 June 2002 (parliamentary paper B.11, 2002); and
  • it brings to attention a number of other matters (related both directly and indirectly to events occurring in the financial year 2001-02) that we believe warrant consideration by Parliament.

Part One deals with the Government’s Financial Statements as audited and presented to the House (pages 9-22). Specific topics addressed include:

  • valuation of certain assets;
  • consolidating the financial results and financial position of certain sub-entities;
  • consolidating investments in subsidiaries; and
  • some specific accounting issues.

Part Two deals with the results of our audits of government departments for the year ended 30 June 2002 (pages 23-32). We include our usual:

  • commentary on the audit opinions on the departments’ financial reports; and
  • assessments of the departments’ financial and service performance management.

Part Three (pages 33-43) sets out details of the non-standard audit reports we issued during the period 1 July 2001 to 31 December 2002 on the financial reports of:

  • entities that are part of the Crown reporting entity; and
  • other public entities not within the local government portfolio.

Part Four describes the limited nature of the accountability to Parliament for the Crown’s investment in Air New Zealand Limited (pages 45-48).

Part Five provides an updated commentary on the investment policies and practices of the Accident Compensation Corporation (pages 49-59).

Part Six sets out the relevant departments’ progress in their administration and evaluation of funding provided for capacity building under the Reducing Social Inequalities programme (pages 61-74).

Part Seven describes the results of our follow-up review of the quality of accountability information on student loans (pages 75-94).

Part Eight gives the current status of follow-up action on previous reports we have made to Parliament (pages 95-128).

K B Brady
Controller and Auditor-General

30 May 2003

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