Appendix 1: Details of the non-standard audit reports issued
These details relate to non-standard audit reports issued during the period 1 April 2005 to 31 December 2005, as listed in Figure 1.6.
Full adverse opinions
Southland Museum and Art Gallery Trust Board Incorporateda
Financial statements period ended: 30 June 2005
The Board did not recognise the museum and gallery collection assets it owns, nor the associated depreciation expense, in its financial statements. These are departures from Financial Reporting Standard No. 3: Accounting for Property, Plant and Equipment, which requires museum collection assets not previously recognised to be recognised initially at fair value and depreciated. In addition, the Board did not prepare a Statement of Intent for the year commencing 1 July 2004 as required by the Local Government Act 2002 and, therefore, was unable to prepare performance information that fairly reflected its achievements measured against its performance targets. We also drew attention to the fact that the Board breached the law because it did not prepare a Statement of Intent for the year commencing 1 July 2005.
The Museum of Transport and Technology Board
Financial statements period ended: 30 June 2005
The Board did not recognise the museum collection assets it owns, nor the associated depreciation expense, in its financial statements. These are departures from Financial Reporting Standard No. 3: Accounting for Property, Plant and Equipment, which requires museum collection assets not previously recognised to be recognised initially at fair value and depreciated.
Okuru Public Hall Board
Financial statements period ended: 12 June 2003
The Board did not prepare its annual financial statements in accordance with the Public Finance Act 1989, and the financial statements did not comply with generally accepted accounting practice in New Zealand. In addition, the Board did not maintain appropriate accounting records, and the limited financial information presented did not fairly reflect the Board’s assets, liabilities, receipts, and payments. We highlighted that the going concern assumption appropriately had not been used in the preparation of the financial statements because the Hall Board was disestablished and its assets and liabilities were vested in Westland District Council on 12 June 2003.
Partial adverse opinions
Wairarapa Cultural Trustb
Financial statements period ended: 30 June 2005
The Trust did not recognise the general collection assets it owns, nor the associated depreciation expense, in its financial statements. These are departures from Financial Reporting Standard No. 3: Accounting for Property, Plant and Equipment, which requires general collection assets not previously recognised to be recognised initially at fair value and depreciated. In addition, we were unable to verify some material revenues due to limited control over those revenues. However, in our opinion, the financial statements fairly reflected the cash flows.
Otago Museum Trust Board c
Financial statements period ended: 30 June 2005
The Board did not recognise all of the museum collection assets it owns, nor the associated depreciation expense, in its financial statements. These are departures from Financial Reporting Standard No. 3: Accounting for Property, Plant and Equipment, which requires museum collection assets not previously recognised to be recognised initially at fair value and depreciated. However, in our opinion, the financial statements fairly reflected the cash flows, and the performance information fairly reflected the achievements measured against the performance targets for the year.
Tasman Bays Heritage Trust Incorporatedd
Financial statements period ended: 30 June 2005
The Trust did not recognise all the collection and exhibit assets donated from 1 July 2000 to 30 June 2005, nor the associated depreciation expense, in its financial statements. This is a departure from Financial Reporting Standard No. 3: Accounting for Property, Plant and Equipment(FRS-3), which requires donated assets to be recognised at fair value at the date of acquisition and to be subsequently depreciated. In addition, the Trust did not account for a material impairment of the building from which it operates. This is also a departure from FRS-3, which requires an asset that is impaired to be written down to its recoverable amount where that amount is less than its carrying amount. However, in our opinion, the financial statements fairly reflected the cash flows, and the performance information fairly reflected the achievements measured against the performance targets for the year.
Except-for opinions
North Shore Domain and North Harbour Stadium Trust Boarde
Financial statements period ended: 28 February 2005
The Board did not prepare a Statement of Intent for the year ended 30 June 2005 as required by the Local Government Act 2002 and, therefore, was unable to prepare performance information that fairly reflected its achievements measured against its performance targets. We drew attention to the fact that the Board breached the law because it did not adopt a balance date that was consistent with its parent entity. We also drew attention to the fact that the Trust Board breached the law because it did not prepare a Statement of Intent for the year commencing 1 July 2005. In addition, we drew attention to uncertainties surrounding the going concern assumption. The validity of the going concern assumption was dependent on the continued financial support of the Trust Board’s parent entity.
Ticket Direct Centralf
Financial statements period ended: 30 June 2005
The entity did not prepare a Statement of Intent for the year ended 30 June 2005 as required by the Local Government Act 2002 and, therefore, was unable to prepare performance information that fairly reflected its achievements measured against its performance targets. We drew attention to the fact that the entity breached the law because it did not prepare a Statement of Intent for the year commencing 1 July 2005.
Whangarei Art Museum Management Group Trustg
Financial statements period ended: 30 June 2005
The Trust did not prepare a Statement of Intent for the year ended 30 June 2005 as required by the Local Government Act 2002 and, therefore, was unable to prepare performance information that fairly reflected its achievements measured against its performance targets.We drew attention to the fact that the Trust breached the law because it did not prepare a Statement of Intent for the year commencing 1 July 2005.
Whangarei Tourism Trusth
Financial statements period ended: 30 June 2005
The Trust did not prepare a Statement of Intent for the year ended 30 June 2005 as required by the Local Government Act 2002 and, therefore, was unable to prepare performance information that fairly reflected its achievements measured against its performance targets. We drew attention to the fact that the Trust breached the law because it did not prepare a Statement of Intent for the year commencing 1 July 2005.
Waimate Medical Centre Limitedi
Financial statements period ended: 30 June 2005
The company did not prepare a Statement of Intent for the year ended 30 June 2005 as required by the Local Government Act 2002 and, therefore, was unable to prepare performance information that gave a true and fair view of its achievements measured against its performance targets. We drew attention to the fact that the company breached the law because it did not prepare a Statement of Intent for the year commencing 1 July 2005.
Invercargill Community Sports and Recreation Trustj
Financial statements period ended: 30 June 2005
The Trust did not prepare a Statement of Intent for the year ended 30 June 2005 as required by the Local Government Act 2002 and, therefore, was unable to prepare performance information that fairly reflected its achievements measured against its performance targets. We drew attention to the fact that the Trust breached the law because it did not prepare a Statement of Intent for the year commencing 1 July 2005.
Hawke’s Bay Economic Development Trustk
Financial statements period ended: 30 June 2005
The Trust did not prepare a Statement of Intent for the year ended 30 June 2005 as required by the Local Government Act 2002 and, therefore, was unable to prepare performance information that fairly reflected its achievement measured against its performance targets. We highlighted that the going concern assumption appropriately had not been used in the preparation of the financial statements because the operations of the Trust were to be transferred to Hawke’s Bay Incorporated when the Trust ceases to trade.
Advance Whangarei Limitedl
Financial statements period ended: 30 June 2004
The Company did not prepare a Statement of Intent for the year ended 30 June 2004 as required by the Local Government Act 2002 and, therefore, was unable to prepare performance information that gave a true and fair view of its achievements measured against its performance targets.
South Canterbury Rural Fire District Committeem
Financial statements period ended: 30 June 2005
The Committee did not prepare a Statement of Intent for the year ended 30 June 2005 as required by the Local Government Act 2002 and, therefore, was unable to prepare performance information that fairly reflected its achievements measured against its performance targets.
Waste Disposal Servicesn
Financial statements period ended: 30 June 2005
We disagreed with the accounting treatment of the landfill improvements asset. The asset was overstated because capitalisation of the closure and post-closure costs in 2003 was not applied back over the periods to which they related and therefore depreciation for previous periods was understated.
Bond Contracts Limitedo
Financial statements period ended: 30 June 2004
We were unable to verify the company’s share of a loss made by an associate (not a public entity) because the shareholders of the associate elected not to have an audit undertaken and there were no satisfactory audit procedures to obtain sufficient evidence to verify the loss made by the associate.
Transwaste Canterbury Limited and Groupp
Financial statements period ended: 30 June 2005
We were unable to form an opinion on the comparative figures presented for the group because the financial statements of the company’s subsidiary had not previously been audited. However, in our opinion, the financial statements of the company and group gave a true and fair view of the financial position, results of operations and cash flows, and its achievements measured against performance targets for the year.
Royal Wanganui Opera House Boardq
Financial statements period ended: 30 June 2004
The financial statements of the Board had not previously been audited. We therefore did not form an opinion about the comparative information. In our opinion, the Board’s financial position and the results of its operations for the year were fairly stated/
Waikouaiti Events and Cultural Centre and Town Park Trustr
Financial statements period ended: 30 June 2004
The financial statements of the Trust had not previously been audited. We therefore did not form an opinion about the comparative information. In our opinion, the Trust’s financial position and the results of its operations for the year were fairly stated.
S J Ashby Boatbuilders Limiteds
Financial statements period ended: 30 June 2005
The financial statements of the company had not previously been audited. We therefore did not form an opinion about the comparative information. In our opinion, the company’s financial position, the results of its operations and cash flows, and the company’s performance achievement gave a true and fair view.
North Canterbury Fish and Game Council
Financial statements period ended: 31 August 2005
We were unable to verify certain revenues due to limited control over the receipt of those revenues.
West Coast Fish and Game Council
Financial statements period ended: 31 August 2005
We were unable to verify certain revenues due to limited control over the receipt of those revenues.
Carparking Joint Venturet
Financial statements period ended: 30 June 2005
We were unable to verify certain revenues due to limited control over the receipt of those revenues.
Richmond Pool Charitable Trustu
Financial statements period ended: 30 June 2004
We were unable to verify certain revenues due to limited control over the receipt of those revenues.
Village Pool Charitable Trustv
Financial statements period ended: 30 June 2005
We were unable to verify certain revenues due to limited control over the receipt of those revenues.
Marton Aquatic and Leisure Trustw
Financial statements period ended: 30 June 2005
We were unable to verify certain revenues due to limited control over the receipt of those revenues.
Mapiu Domain Board (Mapiu Recreation Centre)
Financial statements period ended: 30 June 2004
The Board did not provide budgeted figures in the statements of financial performance, financial position and cash flows, and it also did not provide a statement specifying the financial performance to be achieved. These are departures from the statutory reporting requirements of the Public Finance Act 1989. In addition, we were unable to verify certain revenues due to limited control over the receipt of those revenues.
Whatitiri Domain Board
Financial statements period ended: 30 June 2004
The Board did not provide budgeted figures in the statements of financial performance, financial position and cash flows. This is a departure from the statutory reporting requirements of the Public Finance Act 1989.
Matata Recreation Reserve Board
Financial statements period ended: 30 June 2005
The Board did not provide budgeted figures in the statements of financial position and cash flows. This is a departure from the statutory reporting requirements of the Public Finance Act 1989.
Explanatory paragraphs
Central Hawke’s Bay District Council
Financial statements period ended: 30 June 2004
The Council did not comply with the Local Government Act 1974 in setting operating revenues at a level adequate to cover all projected operating expenses. In particular, the Council, having consulted its community as part of the Annual Plan process, resolved not to set operating revenue at a level adequate to cover the decline in service potential (depreciation) relating to its bridges.
Whangarei District Council and Group
Financial statements period ended: 30 June 2005
We drew attention to the fact that the Council breached the law because the Council did not report some aspects of the performance of organisations it controls in its annual report as required by the Local Government Act 2002.
Invercargill City Charitable Trustx
Financial statements period ended: 30 June 2004
We drew attention to the fact that the Trust breached the law because it did not prepare a Statement of Intent for the year commencing 1 July 2003 and, as a result, was unable to prepare performance information. However, we also drew attention to the fact that the Trust was inactive between 1 July 2003 and 30 June 2004.
Invercargill City Charitable Trustx
Financial statements period ended: 30 June 2005
We drew attention to the fact that the Trust breached the law because it did not prepare a Statement of Intent for the year commencing 1 July 2004 and as a result was unable to prepare performance information.
RDC Holdings Limitedy
Financial statements period ended: 30 June 2005
We drew attention to the fact that the Company breached the law because it did not prepare a Statement of Intent for the year commencing 1 July 2004 and as a result was unable to prepare performance information. However, we also drew attention to the fact that the Company was inactive between 1 July 2004 and 30 June 2005.
Whangarei District Airportz
Financial statements period ended: 30 June 2005
e drew attention to the fact that the Airport breached the law because it prepared a Statement of Intent for the year commencing 1 July 2005 after 30 June 2005 which is the date by which the Statement of Intent was required to be prepared.
Venture Taranaki Trustaa
Financial statements period ended: 30 June 2005
We drew attention to the fact that the Trust breached the law because it did not prepare a Statement of Intent for the year commencing 1 July 2004. However, we also drew attention to the fact that the Trust prepared a Regional Development Strategy against which some performance measures could be reported.
Mangere Cemetery Board
Financial statements period ended: 31 March 2002
We drew attention to the fact that the Cemetery Trustees breached the law by engaging in the business of retailing headstones.
Pihama Cemetery Trustees
Financial statements period ended: 31 March 2004
We drew attention to the fact that the Cemetery Trustees breached the law by providing a loan to another local organisation.
New Zealand Mutual Liability Riskpool
Financial statements period ended: 30 June 2005
We drew attention to the fact that the going concern basis had been appropriately used in preparing the financial statements. We noted that the Trustee of the Riskpool is able to levy members to cover any shortfall in equity in any funds.
America’s Cup Village Limited and Groupab
Financial statements period ended: 30 June 2005
We drew attention to the fact that the going concern basis appropriately had not been used in preparing the financial statements because the company was likely to be disestablished due to the completion of the 2004 America’s Cup.
New Zealand Cup Village Limitedac
Financial statements period ended: 30 June 2004 and 30 June 2005
We drew attention to the fact that the going concern basis appropriately had not been used in preparing the financial statements because the company was likely to be disestablished due to the completion of the 2004 America’s Cup.
Cup Property Limitedac
Financial statements period ended: 30 June 2004
We drew attention to the fact that the going concern basis appropriately had not been used in preparing the financial statements because the company was likely to be disestablished due to the completion of the 2004 America’s Cup.
Cup Village 2000 Limitedac
Financial statements period ended: 30 June 2004 and 30 June 2005
We drew attention to the fact that the going concern basis appropriately had not been used in preparing the financial statements because the company was likely to be disestablished due to the completion of the 2004 America’s Cup.
Cup Village NZ Limitedac
Financial statements period ended: 30 June 2004 and 30 June 2005
We drew attention to the fact that the going concern basis appropriately had not been used in preparing the financial statements because the company was likely to be disestablished due to the completion of the 2004 America’s Cup.
Far North Developments Limitedad
Financial statements period ended: 30 June 2005
We drew attention to the fact that the going concern basis appropriately had not been used in preparing the financial statements because the company sold its assets and business operations during the year.
Stratford District Economic Development Trustae
Financial statements period ended: 30 June 2004
We drew attention to the fact that the going concern basis appropriately had not been used in preparing the financial statements because the Trust was disestablished on 7 June 2005 and incorporated into Stratford District Council.
Hawke’s Bay Tourism Trustaf
Financial statements period ended: 30 June 2005
We drew attention to the fact that the going concern assumption appropriately had not been used in preparing the financial statements because the operations of the Trust will be transferred to Hawke’s Bay Incorporated when the Trust ceases to trade.
Nga Tapuwae Community Facilities
Trust Financial statements period ended: 30 June 2003
We drew attention to the fact that the going concern basis appropriately had not been used in preparing the financial statements because the Trust expected to be wound up in 2005.
Ngunguru Reserve Board
Financial statements period ended: 30 June 2002 and 30 June 2003
We drew attention to the fact that the going concern assumption appropriately had not been used in preparing the financial statements because the Reserve Board was closed on 11 September 2003.
Auckland Regional Council Sinking Funds Commissioner
Financial statements period ended: 30 June 2005
We drew attention to the fact that the going concern basis appropriately had not been used in preparing the financial statements because the Sinking Fund fully settled its debts and, as a result, the Sinking Fund was terminated.
Cooks Gardens Trust Boardag
Financial statements period ended: 30 June 2005
We drew attention to a note in the Board’s financial statements which explains the vesting of some of the Board’s assets in Wanganui District Council.
Notes
a: Council-controlled organisation (CCO) controlled by Gore District Council, Invercargill District Council, and Southland District Council.
b: Subsidiary of Masterton District Council, Carterton District Council, South Wairarapa District Council, and Masterton Trust Lands Trust.
c: CCO controlled by Dunedin City Council.
d: CCO controlled by Tasman Bays Heritage Limited.
e: CCO controlled by North Shore City Council.
f: CCO controlled by Palmerston North Showgrounds Board of Control (Arena Manawatu) and Regent Theatre Trust Board.
g: CCO controlled by Whangarei District Council.
h: CCO controlled by Whangarei District Council.
i: CCO controlled by Waimate District Council.
j: CCO controlled by Invercargill City Council.
k: CCO controlled by Hastings District Council, Hawke’s Bay Regional Council, and Napier City Council.
l: CCO controlled by Whangarei District Council.
m: CCO controlled by Mackenzie District Council, Timaru District Council, and Waimate District Council.
n: CCO controlled by Manukau District Council.
o: CCO controlled by Invercargill City Holdings Limited.
p: CCO controlled by Christchurch City Council.
q: CCO controlled by Wanganui District Council.
r: Subsidiary of Dunedin City Council.
s: CCO controlled by Far North Holdings Limited.
t: CCO controlled by Christchurch City Council.
u: CCO controlled by Tasman District Council.
v: Subsidiary of Hastings District Council.
w: CCO controlled by Rangitikei District Council.
x: CCO controlled by Invercargill City Council.
y: CCO controlled by Ruapehu District Council.
z: Subsidiary of Whangarei District Council.
aa: CCO controlled by Stratford District Council.
ab: Subsidiary of Infrastructure Auckland.
ac: Subsidiary of America’s Cup Village Limited.
ad: CCO controlled by Far North Holdings Limited.
ae: CCO controlled by Stratford District Council.
af: CCO controlled by Hastings District Council, Hawke’s Bay Regional Council, and Napier City Council.
ag: CCO controlled by Wanganui District Council.
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